The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1896-01-16

With London.
New YORK, jan. 1s.-The bond syn.
dictate has been dissolved. Members of
the Government bond syndicate re-
eeived in their mail this morning o cir
cular letter from j. P. Morgan & 90.
releasing them from their commitments
to furnish their pro rata of S1O0. 600, 600
In gold and a second 500. GOO, GOO II de-
sirsblo, taking their paymens therefor
in 4 per cent. Government bonds. Ac-
companying this letter was q circular
explaining why the Syndicate was
formed. what action was taken in its
behalf, and why 1t Is now dissolved.
ION the 23rd OF December" Mr.. Nor
gan says. II was invitea to Washington
for q conference. During my visit there
no negotiations for o loan were even
suggested, nor was there then nor since
any agreement or request that I should
take any steps preparatory to making O
contracs. l went, however, to the con-
clusion than the President and Sec,e-
tary Of the Treasury would use every
power at their command TO restore and
maintain the gold reserves; thu no steps
would be taken until 1t was a%soertsined
what Congress would do; that the execu-
tive departments would prefer to st cure
$500. 000, 900 of gold and that it was
certain than no relief could be obtained
from Congress.
Upon my return, appreciating the
gravity Of the situation, and In order
that might be prepared to act
promptly, l took steps to ascertain to
what extent 1t would be possible to &c.
cure the cooperation of capitalists in
forming a syndicate which would agree
to sell the United States Government
S200, 600, 600 OF gold coin. The consract
prepared and signed by the participants
did not stipulste whether the purchase
would be by private contract or by
public offer.
Tho only provision in addition to
the Important one that no gold should
be Withdrawn from the Treasury, was
that tho minimum amount of the con-
tract should be $500, 600. 600; the maxi
mum nos over $2oo, 600, 600. The an
plioAtions far exceeded my expecsn-
tlons. At the end of three or four
days the total CT $500. 600. 600 was
reached n I had full authority.
which would enable me whenever, and
however, She executive might decide
to act TO secure that amour OF gold'for
the Treasury reserve in exchange for
United States bonds.
1.-THE participants may be divided into
four classes: People in Europe, who were
prepared to ship gold ; O this side; inssi.
tutlons In the United Statea in posssss-
Ion OF gold coin who wanted bonds
either for investments or as q basis for
national bank circulation; third, banks
In various cities who were willing TO ex.
change their gold for bonds. expecting
sfterwsrd to sell them in the market;
fourth, institutions and firms not hay-
Ing gold but which would get il at what
ever cost, provided the contract was put
In force. Participatiops were about
equally divided between the four
CLASSES.
Having completed the syndicate I
entered into negotiations in Europe,
and In places other than London, where
the market was closed to US, and
through the Deuts che bank Messrs.
Morgan, Harjes g. Co., negotiations
were practically concluded for public
subscriptions in Germany, France AID
Holland, which would have resulted In
q large amount OF bonds being placed
In those countries.
On January 4, realizing that the ten
sion was growing daily more serious, I
addressed Q letter to the President, call
ing his attention to The situation, and
representing that the most Important
step was the restoration OF the Govern
ment credit BY replenishing the stock o.
gold. Details of what was proposed
were given and assurances offered that
che utmost efforts would be made to pro-
cure for the Treasury II, 500, 600. ounces
Of gold"
4 The reason given for the dissolution
OF the syndicate Is that thes.syndicate
contract called for q bid 'all or
none," and, therefore, Mr.. MORGAN was
nn@illing to mako a bid under the pres.
ent circumstances, as he might seem 70
present for coneid eration by the Secre-
sary OF the Treasury the throwing out
OF smaller bids made in good faith under
the public call. The only emergency.
In Mr.. Morgan's Judgment. which would
justify suoh o course would be the
failure OF the public TO respond to the
call OF the Government. Il has been
necessary to delay the diesolving of tho
syndicate up to the present time, as
every financial interest required pro-
lection afforded by the knowledge that
the syndicate was in existence, pre-.
pared to make the loan q success un-
der any circumstances.
The circular concludes: "I feel per-
1ectly satisfied that there is no question
aB to the success Of the loan"
The dispatch gives the full text of
MIR. MorRan's letter TO President Oleve-
Land on January 4th, in which he SAYS
ne ventures to address him in relation
to the present financial situation with
great hesitation, bui the approach
OF n serious crisis and the gravity
OF he situation is his exc1se. The
most importhnt ate at this mnnnant %