The herald., 1896-01-16

dr. Morgan and his friends are fully

Mr.. Morgan and his friends are fully
aware of the fact that the success of the
loan by popular subscription is no longer
matter of doubt. To hold the syndicate
banks to the terms of the contract, it is
argued, would prevent any of them from
participating in the loan except in the
capacity of a syndicate, which under the
changed conditions almost certainly would
result to their disadva 1tage.
Mr.. Morgan's purpose, therefore, in re-
leasing his associates, it is believed, is to
give them an equal chance with the other
whatever part of the loan they may desire.
The only criticism SO far heard of Mr..
Morgan's public statement is that his as
sertion that he twas invited to Washington
for conference,' is misleading, as the
natural inference is that this invitation
came from the president or by his sanction
from some member of the cabinet. This,
1t is said, is not the fact. When Mr.. Nor
gan came TO Washington the president de-
clined to see him, nor. it is added, did he
confer with any member of the cabinet at
the presidents suggestion.
1t is stated on high authority that the
president and Secretary Carlisle have re-
Der OF prominent bankers throughout the
country that there cannot be doubt as to
the loan being success.
1t is argued that during the late break in
the market which followed the announce
ment of the governments attitude on the
Venezuelan question, eastern bankers took
advantage of the sharp decline in Ameri-
can securities, and as a result their hold
ilngs are now large and must be protected
from a further decline which would neces-
sarlly follow the failure of the loan OF the
depletion of the reserve to point SO I'M
favorable as to affect the market.
Under these circumstances it is believed
that should large export movement set
III before the loan is consummated, the
large banks and other financial ins;itu-
tions would neutralize the effect by making
deposits of gold. In any event the officials
here are not apprehensive of any serious
difficulty in maintaining the reserve at
about its present figure, nor in placing the
$lO0,O0O.OO0 loan at a fair price, both to
the government and to the purchaser, The
only serious question involved in the situa-
ton. it is said, is from what source are the
bond purchasers to obtain their gold, and
ii from the banks, as seems altogether
probable as to a very large percentage, will
not the banks eventually recoup their re-
serve holdings by Withdrawals from the
treasury?
CARLISLE is CONFIDENT
WASHINGTON, dan. 15.-Secretary Car
Isle this afternoon, in speaking of the dis
solution of the syndicate, said he could
be quoted as saying that the success of
the loan pas assured. Further than this
he declines to make any statement.
The treasury today lost 100000, prin-
cipally for export, and received deposits
amounting to $250.000, making the net
loss for the day $4,000.
Secretary Carlisle tonight made public
the following circular modifying the condi-
tons for payment on the advertised bond
issue:
TREASURY DEPARTMENT.,
OFFICE OF THE SECRETARY, :
WASHINGTON, Jan. 10, lS96.)
The treasury circular No. 1886, dated
January 6, 1896, inviting proposals for
the purchase of $1OO,OOO,OOO of United
States 4 per cent bonds, is hereby so modi-
fled that after the payment of the first
installment of twenty per cent with
accrued interest, as required in
said circular. the remainder of
the amounts bid may be paid in INSTALL
ments of 10 per cent each and accrued in
terest, at the end of each fifteen days
thereafter, but all accepted bidders
who have paid all installments previ-
ously maturing may pay the whole
amount of their bids at the time of
the first installment, and all accept
ed bidders who have paid all installments
previously maturing may pay the whole
amount at the time of the first installment
or any date thereafter, as above provided,
will be entitled to receive at the date of the
payment the whole amount of bonds
awarded to them, and accepted bidders
who pay installments will be entitled to
receive at the dates of such payments the
amount of bonds paid for.
j. G. CARLISLE, Secretary.