The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-01-16
SYNDICATE IS BROKEN.
VI Was Formed to Purchase Gov.
eminent Bonds.
J. d. MORGAN ISSUES A CIRCULAR.

He Announces tho Dissolution of the bond
Syndicate and Releases tho Members
from Their ObiigatioDs--If the Syndicate
Took the Bonds Small Bids Would Have
To Be Thrown Out by the Secretary Of
the Treasury-Forming OF the Pool.
NEW YORK, Jan. l6.-The bond syndi-
cate has been dissolved. Members of the
government bond syndicate received In
their mall Wednesday morning circular
letter from j. p. Morgan & Co. releasing
them from their commitments to furnish
their pro rata of sl0O, 600, 600 In gold and .
second t.0o,00),0O0 IL desirable, taking
their payment In per cent. government
bonds. Accompanying this letter was Q
circular explaining why the syndicate
was formed, what action was taken on its
behalf, and why 1t is now dissolved.
ION the 23d of December" Mr. Morgan
says, II was invited to Washington for q
conference. During my visit there no
negotiations for a loan were even suo-
gested, nor was there then, nor Gncs.
any agreement, or request. that I should
take any steps preparatory to making .
contract.
Would DO All in Their Power.
II came, however, TO the conclusion that
the president and secretary of tho treas
ury would use every power at their COM
mand TO restore and maintain the gold TO
serve; thai no steps would be taken until
II was ascertained what congress would
do; that the executive department would
nj IN -
that 1t was certain that no relief could be
obtain from congress.
Upon my return, appreciating the
gravity OF the situation, and In order that
might be prepared TO act promptly,
took steps to ascertain to what extent IL
would be possible To secure the co-opersr
tion Of capitalists In forming a syndicate
which would agree to sell to the United
States government ss0O,O00.0 900 Of gold
coin. The contract prepared and signed
by the participants did not stipulate
whether the purchase would be by private
contract or by public offer. The only pro-
vision In addition to tho important ono
that no gold should be drawn from the
treasury was that the minimum amount
Of the contract should be si00, ,000, 900, tho
maximum not over 500. .0Oo0oo.
Exceeded Expectations.
"The applications far exceeded my ex.
pectations. At the end of three or four
days the total Of $780, 0O0, 600 was reached
and had full authority which would en-
able me whenever and however the execu-
tive might decide to act TO secure TINT
amount Of gold for the treasury reserve In
exchange for United States bonds. The
participants may be divided into four
classes: People In Europe who were PFC
pared to ship gold to this side; institu-
tions in the United States In possession Of
the gold coin who wanted bonds either
for investment or as a basis for additional
bank circulation; third, banks In various
cities who were willing to exchange their
gold for bonds, expecting afterwards to
sell them in the market; fourth, institu-
tious and firms not having gold but which
would get IL at whatever cost, provided
the contract was put In force. Participa-
tions we're about equally divided between
the four classes
Negotiations In Europe.
Having completed the syndicate en-
tered into negotiations In Europe, and In
places other than London, where the
market was closed to us. and through the
Deutsche bank and Messrs. Morgan,
Harjes & Co. Negotiations were practic-
ally concluded for public subscrip tions In
Germany, France, and Holland, which
would have resulted In large amount OF
bonds being placed In those countries.
On Jan 4, realizing that the tension was
growing daily and had become serious, /
addressed letter to the president, calling
his attention to the situation and repre-
senting that the most important step was
the restoration of the government credit
by replenishing It's stock Of gold De-
tails Of what was proposed were given,
and assurances offered that the utmost Of.
forts would be made TO procure for the
treasury II, 500, 900 ounces Of gold"
Reason for the Dissolution.t
| The reason given for the dissolution Of
the syndicate Is that tho syndicate con-
tract called for bid Of 'sll or none" and
therefore Mr.. Morgan was unwilling to
make bid under the present circum-
stances, as he might seem to present for
consideration by the secretary OF tho treas
ury the throwing out Of smaller bids
made in good faith under tho public call
The only emergency, In Mr.. Morgan's
Judgment, which would justify such .
course would be the failure OF the public
TO respond to the call Of the government.
IL has been necessary TO delay the dissolv-
ing of the syndicate up to the present
time. as every financial interest required
protection afforded by the knowledge that
the syndicate was In existence, prepared
10 make the loan success under the cir
cumstsnces. The circular concludes: Il
feel perfectly satisfied that there u no
question as to the success Of the loan"