The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-01-16
MORGAN DRAWS OUT
He Explains, by Letter, to the Mem
bers of the Syndicate.
REASON FOR DlSSOLVlNG
His Circular Concludes That he
Feels Satisfied the Public
Loan VIII Be a Success
In Every Way.

New YORK, Jan. l0.-MemDerS Oh tiie
government bond syndicate received in
the mail this morning a circular letter
from j. p. Morgan & Co. releasing
them from the commitment TO furnish
their pro rata of the 500. 900. 900 gold ana
a second 500. 200, 900. If desirable. tax
ing tAelr payment in per cent govern
ment bonds. ION the 23d Of December,
Morgan says, II was invited to Wash
ineton for a conference. During my
visit there no negotiations for loan
were. even suggested, nor was there
then or since, any agreement or request
that should take any step preparatory
to making contrac.. came, however.
to the conclusion that the president ana
secfetaty OF the trea sury would use
every power at their command to main
tain che gold reserve; that no steps
would be taken until Dit was ascertained
what congress would do that the ex-
ecutive department would prefer to Sc
cure $500, 000, 900 in gold and II was GER
tain no relief could be obtained from
congress. Upon my return, appreclat-
ing the cavity of the situation. and in
order that j might DE prepared TO act
promptly, took steps to ascertain 70
what extent il would be possible to Sc
cure the cooperation of capitalists in
forming a syndicate which would agree
to sell the United States government
5000, 600, 900 in gold coin. The contract
prepared and signed by the partici-
purchase would be by private contract
or public offer.
THE only provision in addition to the
Important one that no gold should be
withdrawn from the treasury was that
the minimum amount of the contract
should be 800 900, 900 and the maximum
not over $500. 900. 900. The applications
far exceeded my expectations AIT the
end Of three or four days the total of
500, 000. 900 was reached and 1 had full
authority which would enable me.
whenever and however the executive
might decide to act, to secure that
amount OF gold for the treasury reserve
in exchange for United States bonds.
The participants may be divided into
four classes: PEOPLE of Europe pre- par
ed TO ship gold TO this side; instltutlons
in the United States in possession or
gold ccin who wantd bonds, either for
investment or as a basis for national
bank circulation; third. banks In va
rious cities willing ITO exchange gold for
bonds, expecting afterwards to sell
them en- the market; fourth, inStMu-
dIons and firms not having gold, but
which would get 1t at whatever cost.
provided the contract was put in force.
The participations were about equally
divided between the four classes. Hav-
ing completed the syndicate. l entered
ir,o negotiations in Europe and places
other lthan London, where the market
was closed to us, and Through the
Deutsche bank and Messrs. Morgan,
Harjes e. Co. negotiations were prac-
tically concluded.
Realizing THE tension was growing
daily and has become serious, l adj
dressed a letter to the president calling
his attention ito thu situation and rep
resenttng the most important step was
she restoration of the government cred
1t by the replelishing of the stock of
geld. The details of what was pro-
posed were given and assurance offered
that the utmost efforts would be made
20 procure for the teasury 11,500,000
ounces of gold"
The reasons given for the dissolution
of the syndicate are that the syndicate
contract called for a bid of "all or
none" and therefore Morgan was I'M
willing to make the bid under the pres
emit circumstances, as he might seem to
present for consideration by the secre-
tary of THE treasury the throwing out
of the smaller bids made in good faith.
under THE public call. The only emer-
gency, in Morgan's judgment, which
would Justify such a course, would be
the failure of the public TO respond to
the call OF the government. 1t has been
necessary to delay THE dissolving Of the
syndicate up to the present. as every |
financial interest required the protec- |
ticm offered by the knowledge the syn
dictate was in existence. prepared to |
make che loan a success under any cir |
cumstances. The circular concludes: II |
feel perfectly satisfied there is no ques- |
tion as TO the success of the loan"