Elmore bulletin. [volume] (Rocky Bar, Idaho) 1889-1906, 1896-05-20


the whole Lot-The President at Outs
with Morgan-why Stewart Lost Good
Sized Fortune.
The recent loan, despite its impress
siveness and popular features, was I'M
scientific and clumsy. Any one could
bid, whether he had gold or not 1t is
pretty certain that millions were bid by
persons who had scarcely gold dollar
to their names. These were speculative
bids, and they are of course to be trans
ferred to banks or other institutions
which have gold or the means of getting
it. The result is that gold is practically
at premium in New York and Boston
1t is small premium, but just enough to
tempt the cupidity of many men who
have bid for bonds. If they find they
must pay an eighth for gold at bank or
brokers, but can get it without pre-
MUM at the subtreasury, where carriage
expense may be avoided by simply car
rying the stuff from the pay to the re-
ceiving window, where are they going
to get it? Human nature is human ma
ture, and no one has as yet discovered
that ii is any less human among bankers,
brokers and bond spectators than it is
among other people.
In this connection / am able to give
some secret history that is very interest
ing Some weeks ago the administra-
tion wanted to place this loan with Mr..
Morgan and his syndicate under condi-
tons that would protect the reserve
Mr.. Morgan was willing to undertake
the task, but he declined to pay more
/ than l05. The administration offered
him the whole lot at 100, which was
equal to 31a per cent interest. Mr.. Nor
gan persisted, despite pressure. in ad
-herence to this figure, and then the
president decided upon a public loan.
The bowls of certain nevy)apers and
the speeches of senators in congress de-
nounoing private loans had nothing
whatever to do with the presidents
change from a private contract to a
public competitive loan. Mr.. Morgan
refusal to pay 100 determined that 1t
was some satisfaction to the president
to force Morgan to come up with an
offer, not alone of 109 but of nearly
Ill, but he would be better satisfied had
he assurances that the sale at Ill were
going to protect the reserve and make
another loan unnecessary before the
presidential election.
The newspaper writers who pirate of
Pierpont Morgan as the favorite finan-
cier of the administration do not know
what they are talking about. President
Cleveland is out of patience with Mr..
Morgan. If any financier may be regard
ed as the favorite of the administration
it is John A. Stewart of the United
States Trust company. After the presi-
dent had rejected Mr.. Morgan's terms
of 105 month ago Mr.. Stewart was
asked to take hold and help make the
public loan success. He did SO, and to
his efforts and influence more than those
of any other man is due the success OF
the recent loan.
And yet Mr.. Stewart was outmaneu-
vered by Mr.. Morgan as u bidder foi
bonds This was because Mr.. Morgan
had friend in the syndicate which Mr..
Stewart had organized for the purpose
of insuring the success of the issue.
With this information in hand, it was
easy for Morgan to outbid Stewart. II
Mr.. Stewart had been guided by the ad-
vice of Washington banker, one of his
friends. he would have beaten Nor.
gan. Last Wednesday morning this
banker became satisfied Morgan was 60
ing to bid nearly II /, and he wired Mr..
Stewart to this effect, not once but
thrice. Still Stewart refused to change
his bid. At the last moment the Wash
ington banker filled out bids for hall
million on his own account at III anC
little under, and reached the treasury
at inst five minutes of noon. His bids
went in, he gets his bonds, and makes
$25, 900 or $50, 900 for his euiekness
Stewart lost the chance to make mil
lion or two.
The Stewart bids for bonds, all a
ITO. 07h, were put in the hands of treas
ury officials about 25 minutes befor'
noon. The Morgan bid of 10. 6S77 wa
put in five minutes later The Stewar
bids had not been opened when the Nor
gan bids came in, and the Stewart bid
; were not in the hands of the treasur,
officials when the Morgan bids were fill
ed ont and sealed in the Office of bank
err two blocks from the treasury build
! ing. The difference between 10. OF
/ and | 10. 6677 represented the loss of
, chance to make fortune. But how sill,
J and reckless the charge that there wa
; collision in the treasury. Walter Well
man in Chicago Times-Herald.