The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1896-01-16
The BOND SYNDICATE
The Text Of the Circular Carrying Notice Of
the SyndiCa,e'S Final Dissolution.
MR.. MORGAA'S VISIT TO WASHINGTON
AEd Ats Result Fully ESplnincd-Thc
steps Taken 40 Secure the Needed
Goid-Thc Applicants for Pnr,ici-
patton Frnnce. Holland. Belgium
nnd Switzerland in the scheme.

New York. Jan. l5.--The members of
the Government bond syndicate received
in their mail this morning the follow
Ing circular:
2S Wall St, New York city.
| January II, 1899.
Gcntlcmen:
In sending you formal notice Of the
dissolution of the United States bond
syndicate, i'm which YOU have. co-opcr-
ated. II Is proper that l should make
some statement showing why the syndi-
cate was formed, what action has been
taken on its behalf and why II is now
dissolved
On December 23d, last. was invited
to Washington for IL conference. Dur
ing my visit there, have verbally
stated to every one who has conferred
win me on the subject. no negotiations
Tor Il loan was commenced Ur even sur-
Sested nor was there. then or since any
agreement or request that | should take
any steps preparatory to making n CON
tract.
Thc result of my visit was that |
came TO the following conclusions:
First, That the President and Sec
retary of the Treasury were determined
to use every power at their command
TO restore and maintain the gold re-
| serve
Second, That no steps would bc
.akeii or even any preparatory negol in :
'lons commenced until II was ascertain
| ed what action, IL any, Congress would
ne likely to take in response To The
appeal of the President for aderla g
and improved means for making such
! rcstorations.
Third, That the Executive DEPART
| ment would prefer. If possible 20 Sc
cure S200,0O0000 of gold in order to avoid
| DrOhnhlc
| negotiation before the meeting of lhc
| new Congress In 1897
| Fourth, That II was absolutely GER
! tlln That no adequate relief could he
on,hihed from Congress and that no
| ni'l could he passed through the Senat o
| for the improvement of the monetarv
system of the country.
Po|i my return. approaching to the
| iuil the gravity of the situation and
keenly alive TO the fact that early ac-
I'm was essential, and In order that
| might be prepared, if called upon TO act
promptly. ! took steps to ascertain TO
what extent 1t would be possible 10 Sc
| cure the cooperation of capitalists. in.
! Stltutions and others in forming n syn
! dicnte which would agree TO sell TO the
| tHittu states Government $500 600 900
| OF gold coin.
| IN my efforts, while far from san
| suihe as TO the result. the ready ac-
qutescence OF James Stillman presi-
dent OF the National City Bank, New
! York: Edward ID. Adams. Esq. with
| fun power representing the Deutsche
! Sank, OF Germany at Berlin; John \
Stewart. president of the United States
| trust Company; Pliny Fisk. ESQ. of
| MeSshs. Harvey. Fisk & Sons. and
| many others, TO all of whom I am deep
| J! Sfltclul, encouraged me to proceed
The contract. as prepared ana signed
! by The participants. did not stipuIate =
| whether the purchase should be by pri-
| Natc contract or by public offer. The
| only proviso lin addition to the import
ant one that no gold should be with
| drawn from the TreaSuly) was the min
tnum amount OF the contract should
| be SioOOn0.0G0, and the maximum the
| full amount Of participations which
might be secured before II. became nee
essary TO act. not exceeding 100000 900.
| The applications for particina ton
| exceeded my expectation In few
days total OF $500. 100000 was reached
| and | had in my hands full authority
which would enable me whenever and
| however the executive might decide to
act to secure that amount of gold far
| the Treasury reserve in exchange for
| tnitcd.StatcS bonds.
| The participants may be divided into
| four classes:
First. Institutions, banking firms.
and others in Europe, who were pre-
| pared II necessary to ship the amour,
| of their participation in gold to this
| side.
Second. Banks, savings banks, trust
| companies. and private individuals Is
| Throughout the United States IN pos
| session Of the actual gold coin who de
sired TO secure bonds either for invest
| ment or as a basis for national bank
| circulation.
Third, Banks in New York, Chica-
! so. Boston. Philadelphia Cincinnati
| and other cities in possession of gold.
| who. without necessarily desiring bonds
| for investment We're willing To aid in
! the movement 10 sustain the treasury
| reserve and exchange their gold for
| United States bonds. expecting after.
ward 10 sell the same in the market.
Fourth. Institutions. banking firms.
| and others, who, without being in pos
| session of actual gold. We're willing
| ana able to obtain that gold at what
! ever cost for deposit with the trea asury
1 in payment for bonds, provided the
| movement contemplated could be car
! ricd out
81 mag add for your information that
the $2G0, ,00o,O 900 participations were about
| equally divided between the four classes
| Indicated
THE formation of the>syndicate being
| completed, | cn2menced negotiations
| for the permanent placing Of portion
| of the loan by public issue In Europe.
should a contract with the Government
| be made.
The London market was unfortu
nately closed to us owing 10 the causes
| to which / need not refer l. thern-
fore, through the Deutsche Bank of Ber-
I'D, and Messrs. Morgan. E&r...s & Co.,