The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1896-01-22
GONE OUT OF BUSINESS.
Bond Syndicate Has Quit Buying
Government Paper.
MIR. Morgan Issues an Important Circular
Releasing Subscribers from Their
Commitments Believes Popular
Loan Will Be q Success.

New York. Jan. 16.--The members
CT the government bond syndicate re-
ceived in their mails Wednesday morn
ing a circular letter from j. P. Morgan
d. Co. releasing them from their COM
mitments to furnish their pro rata
share of 500. zoo, 900 IN gold to the gov
eminent, and a second S100,000,000 if
desirable, taking their pay therefor in
four per cent. bonds. The circular sets
forth that this action seems desira BILE
in view of the terms of the treasury cir
cular, offering bonds to the public. The
text of the circular is quite lengthy. 1t
contains detailed statement of every
phase of the syndicate's connection
with the proposed bond issue and offer
of gold to the government.
Was Invited to a Conference.
Mr.. Morgan says he was invited tc Wash
tngton, December % last for conference,
but that no negotiations for loan were
comm enced or even suggested, nor was
there then or since any agreement or re-
quest that Mr.. Morgan should take any
steps preparatory to making a contract
The result of his visit led him TO the con-
clusion that the president and secretary
of the treasury were determined TO use
every power at their command to restore
and maintain the gold reserve; that no
steps would be taken or even any prepar-
atory negotiations commenced until II was
ascertained what action, IL any, congress
would be likely to take in response to the
appeal of the president for adequate and
improved means for making such restora-
ton; that the executive department would
prefer, IL possible, to secure $500 900 900 of
gold in order to avoid any probable neces-
stty for q similar negotiation before the
- IT, 40
that it was absolutely certain that no
adequate relief could be obtained from
congress, and that no bill could be passed
through the senate for the improvement of
the monetary system of the country.
The Forming of the Syndicate.
Upon his return he took steps 70 ascer-
tain to what extent it would be possible to
secure the cooperation of capitalists. in
situations and others in forming a syndi-
cate which would agree to sell to the United
States government 500, DOC, 900 of gold coin,
and as a result contract was entered into
with Institutions, banking firms, banks,
savings banks. trust companies, and private
individuals in Europe and the leading cities
of this country to furnish the required
amount.
The contract, as prepared and signed by
the participants. did not stipulate whether
the purchase should be by private con-
tract or by public offer The only proviso
gold should be withdrawn from the
treasury, was the minimum amount of the
contract should be 500, 900 900 and the
maximum the full amount of participatfons
which might be secured before it became
necessary to act. not exceeding $500. 900 900.
The formation of the syndicate being COM
pleted, Mr.. Morgan commenced negotia-
tons for the permanent placing of a por-
ton of the loan by public issue in Europe,
should a contract with the government be
IONS
tically concluded.
Warned the Government of Crisis.
After waiting a few days for some an
nouncement or invitation from Washing
ton, on January 4 he sent by messenger a
letter to the president informing him of the
approaching crisis and extreme tension in
financial affairs and acquainting him with
the successful steps he (Morgan) had taken
in arranging for the sale of II, 5O0, 900 ounces
of gold, approximately 5000, 600, 900, on about
the basis of the contract of February 8.
1895. Mr.. Morgan affirmed his opinion and
urged that such contract would in every
way be for the best interests of the gov
eminent and the people, and would be fol-
lowed by less arrangement of the money
market of trade and i'll fact of all interests.
including foreign exchanges, all Of which,
until recently, were in such an increasing
~ prosperous condition, and urged the pres
ident's serious consideration of such con-
tract
Pledged His Support.
Mr.. Morgan, in his letter. pledged to the
president every influence and effort In his
power to assist the government in its en-
Geavor to make successful nesotia ton by
public advertisement which shall result
In the sale to the treasury of 1880, 600
ounces United States gold coin-$200, 900, 900
and further so far as possible take such
steps as will enable the syndicate which
he represented to join In making the
f,,I $<s tic f,,n
On Monday, January s, the call for pub
lie bids for bonds to the extent of 500 ,OO0,-
600 was issued by the secretary of the
treasury.
Resolved to Dissolve the Syndicate.
Mr. Morgan continues: "The amount of
bonds thus offered made the syndicate con-
tract owing to the minimum therein
fxed-available only to bid for all or none
should be unwilling to make such bid
underpreSent circumstances, as / might
thus seem to present for consideration by
the secretary 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 respond to
the call of the government. Under these
circumstances l at once decided to dis
solve the syndicate.
Thinks the Loan VIII Be Successful.
1.-The subscription by individuals and
OIncIS, IlcluOluS uduy Oh the syndicate
whom 1 have encouraged to subscribe
from present indications, will insure the
complete success of the issue. / therefore
feel that the time for announcing the dis
solution of the syndicate has arrived and
an official notice to that effect has been
issued / feel perfectly satisfied that there
is no question as to the success of the
loan.
Commends the President.
II desire to sustain the executive to the
fullest extent in his eIldeavors to maintain
sound currency and the credit of the coun-
try, for which every loyal citizen should
hold him in honor. My firm will gladly as
sist any party desiring to subscribe under
the present call and will 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 a bid, that you will gladly
fe uHifh them in such action either