The times. [volume] (Richmond, Va.) 1890-1903, 1896-01-16

x wall street,
New York CITY, Jan. l3. lss6
Gentlemen: Ia sending you formal no.
tice OF the dissolution OF the United
states bond syndicate ln which you nave
co-operared, IL 10 proper that ! should
make some statement showing why the
syndicate was formed, what action has
been taken on its behalf, and why II Is
now dissolved.
NO NEGOTIATIONS.
"On December I'D last was invited TO
Washington Tor conference. During
my visit there, 1 have verbally stated 10
every one who has conferred win me on
the subject, no negotiations for loan
were commenced OF even suggested, nor
was there then or since any agreement
or request that 1 should take any steps
preparatory 10 making contract.
The result of my visit was that / came
10 the following conclusions
First. That the President and Secre-
tary of the Treasury were determined 10
use every power at their command TO
restore and maintain the gold reserve.
Second. That no steps would be taken,
! or even any preparatory negotiations
commenced, until II wa aseertained what
action, II any, Congress was iikely 10 take
| In response to the appeal OF the Presi-
dent for adequate and important means
| for making such restoration.
Third. That the Executive Department
would prefer, II possible, to secure $780,
oOo,oo0 Of gold In order 10 avoid any pro-
before a meeting OF the new Congress in
| 1891
Fourth That it was absolutely cer-
tain tnat no adequate relief could be OBJ
tained from Congress. and that no bill
could be passed through the Senate for
the improvement OF the monetary system
OF the country.
WHY IT WAS FORMED.
Upon my return, appreciating the fun
| gravity Of the situation. and keenly alive
| TO tho fact that early action was essen
| tial, and in order that / might be pre-
pared, If called upon, to act promptly, l
| took steps 10 ascertain 10 what extent il
| would be possible TO secure the co-opera-
ZION OF capitalists, institutions, and others
| In forming a syndicate which would
agree to sell to the United states Govern
ment $500, c0.0OO OF gold coin
IN my efforts, while far from sanguine
as TO the result ready acquiescence OF
National City Bank New York; Edward
! ). Adams, Es1., with full power repre-
sentihg the Deutsche Bank OF Berlin,
Germany. John A. Stewart. Esq, presi-
dent OF the United States Trust Com
pany Pliny Fisk, Esq, OF Mcssrs. Har-
Vsy FISK x Sons, ana many others, 10
! all Of whom | am deeply grateful. en-
couraged me to proceed.
The contract, IA prepared and signed
| by the participants, did not stiDulate
whether the purchase should be by pri-
vate contract or 10y public offer.
THE ONLY PKONlSO.
The only proviso Gin addition TO the i'm
/ portant one that no gold should be with
drawn from the Treasury was that the
minimum amount OF the contract should
be Sl0o,O0Q0O0, and the maximum the
fun amount OF participations which might
be secured before IL became necessary
TO act, not exceeding sZno,vOO,oOO
The applications for participation far
exceeded my expectations. At the end Of
three or four days the total OF 500 900. .UUJ
NnHF4- aIsaNH. I'll
authority, which would enable me,
whenever and however the Cow
ernment might decide 10 act, 10 secure
that amount of gold for the Treasury re-
serve TN exchange Tor United States
bonds.
The participants may be divided into
four classes.
First Institutions, banking firms and
others In Europe who We're prepared If
necessary TO snip the amount of their
participation in gold to this side.
THE PARTICIPANTS.
Second. Banks, savings banks, trust
companies. and private individuals
throughout the United States In posses
sion Of the actual gold coin, who desired
20 secure bonds either for Investment or
AZ basis FOR national bank circulation.
Third. Banks IN New York, Chicago,
Boston. Philadelphia, Cincinnati, and
other cities in possession OF gold, who,
without necessarily desiring bonds FOR
Investment, Were willing 20 aid in the
movement 10 sustain the Treasury re-
serve ana exchange their gold Tor nltel
States bonds, expecting afterward 10 sell
the same IN the market
Fourth. Institutions. banking firms.
and others who, without being I'M posses
sion OF the actual gold, were Willing and
abb. 10 obtain that gold at whatever cost
for deposit with the Treasury in payment
for bonds. provided the movement con
tempiated could be- carried out.
Il may add for your Information that
the So. .uOO.pOO partlcipations We're about
equally divided between the four classes
indicated
The formation OF the syndicate being
completed. / commenced negotiations for
the permanent placing Of a portion OF the
loan by public issue in Europe should
contract with the Government bc made.
FOREIGN MARKETS.
The London market was unfortunately
closed t0 us, OWING I'D causes TO Mnlch
at. therefore, through the Deutsch Bank
Of i5trIu. and Me.sfs. Morgan hdIJcs
A. Co paris. opened negotiations Tor
Dlacfnp issues I'm Germany, France, Hot
land. Belgium, and Switzerland, which
negotiations We're practically concluded,
ana had il been possible TO proceed tuf-
ther, doubtless very large amount IN
bonds iu small denominations would have
a permanent place I'm those countries, TO
the great advantage Of every interest.
AFTER waiting few days Tor some
announcement or invitation from Wash
ingtOn and realizing that every day
delav was serious I'm the face OF the
growing tension In financial affairs, on
Saturday. January an. / sent by mes
senger the following letter 70 the Presi-
TO THE PRESIDENT.
New York, 2l9 Madison Avenue. Jan
uary 4. 1896.
10 the President.
Washington, y. c.:
." Slr,-It Is with great hesitation that
venture to address you IN relation 10 the
present financial situation. As you are
doubtless well aware financial affairs
are approaching 4 serious crisis, and the
tension to-day Is extreme, ana while no
outward evidences have developed, We are
likely at any moment TO reach the point,
and consequences which II will then be
80 The gravity OF the situation must
be my excuse.
s The most important step at the mo-
ment * the restoration or government
credit bv replacing the gold reserve IN
the Treasury beyond question. This
once accomplished, confidence, bOth al
home and abroad. in the stability OF our
currency. viii be rs stored.
After my recent visit To Washington
| became convinced that any legislative
action to improve the methods a. the
disposal Of the Executive was unlikely,
I'm fact imDossible ! therefore took
stems TO ascertain whether it would pe
possible 10 obtain the cooperation OF
parties AT home and abroad 10 an extent
that would enable me TO negotiate d
contract with tae government for the
sale OF n. 10000 ounces OF gold, approxi-
mating saoe0oo1 on about the basis Of
The contract Of February s. 1896
in this effort / have been successful.
o,a ON now In a posttien to make such