New-York tribune., 1896-01-16
CALL FOR BONDS ISSUED.

J. PIERPONT MORGAN.
CALL FOR BONDS ISSUED.
On Monday January 6. the call for public bids
for bonds to the extent of S1OO 0OO 900 issued
by the Secretary OF the Treasury.
The amount of bonds thus offered made the
syndicate contract Owing to the minimum
therein fixed) available only to bid "for all or
none" l should be unwilling make such
bid under present circumstances. as might thus
seem to present for consideration by the secre-
tary of the Treasury the throwing out of smaller
bids made in good faith under a public call The
only emergency which would justify such a
course would be the failure of the public to re-
spond to the call of the Government. Under
these circumstances at once decided to dissolve
the syndicate.
1t has. however. been necessary to delay this
action up to the present time. as every financial
interest required the protection afforded by the
knowledge that the syndicate was in existence
prepared TO make the loan success under all
circumstances; but happily this necessity does
not exist any longer
The subscriptions by individuals and others
including many OF the syndicate whom have
encouraged to subscribe from present indica-
tions will insure the complete success of the
issue. therefore feel that the time for announc-
ing the dissolution of the syndicate has arrived
and an official notice to that effect has been
issued
feel perfectly satisfied that there is no ques-
tiOn as TO the success Of the loan.
desire to sustain the Executive to the fullest
extent in his endeavOrs to maintain sound cur
rency and the credit Of the country. for which
every loyal citizen should hold him In honor My
firm will gladly assist any party desiring to
subscribe under the present call. and VIII JOIN
with those prepared to take any amount that
may not be desired by smaller investors. feel
sure. should IT hereafter appear desirable To
make such bid, that you will gladly cooperate
with them in such action either individually or
otherwise
Thanking you for the confidence reposed in me-
for which shall ever be grateful
J. PIERPONT MORGAN
THE ORIGINAL AGREEMENT.
The original agreement which the members OF
the syndicate entered into was as follows;
Up Morgan & Co. propose to form a syndicate
in order to make a contract with the United
States Government for the sale Of sll,5OO.OOO
ounces of gold. payable In United States per
cent bonds OF 1926 of this amount least 5,75OOoO
ounces TO be firm. and the balance may be hrm or
In the form of option. in whole or IN part, the
price to be upon about the basis OF the contract
Of February S. 1895. No participation hereunder
shall be binding unless the equivalent ~ SlVo,VoV-
600 of bonds are subscribed for. SUBSCRIPTIONS
may be AIKEN up to a larger total in the discretion
OF J. =. Morgan & Co. prior II the execution Oh
contract with the Government: any option 10 ap-
ply ratably among all firm subscriptions
The syndicate is to be under the management
OF j. T. Morgan & Co.. and they are 10 pe aIioWeu
! per cent therefor.
The undersigned agree TO accept rrn partclpa-
tions in any such syndicate 10 the extent SET op-
option and to furnish gold accordingly. IL being
understood that such gold Is not to be Withdrawn
from the United StateI Treasury FOR the purpose
Of said subscription
majority Of tn, members Of the syndicate VIII
put in individual bids for bonds. As has already
been explained ii Is not the Intention 10 CrgahlH'
q new syndicate to bid for s5O.00ooOo or f1r surh
part Of the totil issue Of 800 900 0O0 when may
not be awarded to the general public; but II Is
likely that many small combinations may n'
made UP t. put in collective bids. Banks. for IN
stance. will consolidate their own appiicalloHs
and those OF their customers. NJ great proper
ton Of the bids will be sent to Washington uhlii
utter February l. becauGe II cannot be ioret"H
what conditions will prevail at the time set f"I
the opening of the bids. February .. The state OF
the money market may in the interim undergo
radical change
Bankers are not satisfied with the statement
by the Secretary Of the Treasury that he VIII
use his discretion In making concessions III thr
matter Of payments on the bonds otter the first
payment. They say he should be specihc. II"
should state definitely what extension In I'M"
he will allow for payments. otherwise the bid
ders will not know what arrangements to MAKE
for securing loans and collecting gold. The
r,ere fact that ne intends to make concessions
v i'll not serve to relieve the money market II
must be known exactly what he proposes to do.
In addition, the bankers desire that the s"crc-
tary shall allow the gold paid for bonds T. re-
main for considerable time IN banks deslg-
mated as Government repositories. There u
not a day when scores OF letters are not sent 10
Washington urging the Secretary 10 make an
announcement which will avert a construction In
money
PAYING A PREMIUM.
Specie dealers were yesterday paying a pre-
MUM Of one-half Of per cent and charging a
premium Of three-quarters Of per cent for gold
and greenbacks. Kuhn. Loeb q Co. deposited
$3.50 900 in gold in the Sub-Treasury in exchange
for greenbacks. Muller Schall & Go. withdrew
$500 900 In gold coin for shipment 10 South Amer
lea Zimmerman 3 Forshay sought to deposit
in the Sub-Treasury slsO,OOO IN American gold
coin imported from Europe, to be examined
counted and weighed. Assistant United States
Treasurer Conrad y. Jordan refused 10 receive IT,
He said that one house which deposited $oOO.oOo
and took a receipt for 1t afterward hawked the
receipt about Wall street. The Government
could not engage In the storage business. Iim-
norman & Forshay sent the following dispatch
to Secretary Carlisle. at Washington:
We have rendered $4,000 in American gold
coin to Sub-Treasury here. Il refuses TO accept
IT, We want to leave same there for bonds
Must 1t accept II or not? Please answer.
The following reply was received late in the
afternoon signed by Mr.. Carlisle:
The Assistant Treasurer has no authority to
receive the gold mentioned in your telegram. No
subscriber for bonds should deposit until noti-
fled Of the acceptance Of mis- bid See circular OF
9Th inst.
The circular of January says that bidders
should state in their applications for bonds
whether they intend to deposit their gold In the
Treasury at Washington or In one Of the sub
Treasures. and in the latter case. in which one.
The Government can be compelled TO receive gold
cnly in payments to IT or to be assayed.
1T INDICATES THE LOANS SUCCESS.
OPINION IN WASHINGTON oN THE DISSOLUTION
OF THE BOND SYNDICATE.
Washington. Jan 15.-secretary Carlisle declined
to-day to express any opinion 10 the dissolution Of
the Morgan bond syndicate The general opinion
among Treasury officials is that s dissolution will
have no appreciable effect. the gold. whether
controlled by the syndicate by individuals acting
,,donendentlv will be and would have been repre-