The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1896-01-16
MORGAN'S EXPLANATION.
The Banker Tells Why The Bond
Syndicate Is Dissolved.
IT'S CONTRACT CALLS FOR A BID
FOR ALL OR NONE.

To Make Such Bid Mr.. Morgan Says Might
Result in the Rejection of Smaller Of
fers-He Is Confident of the success of
the New Loan.
New York, January 15.-The members
| of the government bond syndicate re-
ceived in their mail this morning a cir.
cular letter from ]. P. Morgan & Co.. re-
| leasing them from their commitments to
furnish their pro rata share of 500, OoU :
600 in gold to the government and a sec
ond 500, 600. 600 if desirable, taking their
pay in four per cent bonds The circu-
lar sets forth that this action seems de-
sirable In view of the terms of the trea-
sury circular offering bonds to the public.
In 1t Mr.. Morgan says:
On December % last, was invited to
Washington for a conference. During
my visit there, as I have verbally stated
| to everyone who has conferred with me
on the subject, no negotiations for loan
we're commenced or even suggested, nor
was there then or since any agreement
or request that l should take any steps
The result of my visit was that came
TO the following conclusions:
First-That the President and Score
tary OF the Treasury were determined to
use every power at their command to re-
Store and maintain the gold reserve
Second-That 10 steps would be taken
or even any preparatory negotiations COM
menced until it was ascertained what
action, If any, Congress would be likely
TO take in response to the appeal of the
President for adequate and improved
means for making snch restoration.
|. Ihird-That the Executive Department
would prefer, if possible, to secure $500,
900, 900 OF gold in order to avoid any prob
able necessity for similar negotiation
before the meeting of the new Congress
in 1897
Fourth-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 i'm
provement of the monetary system of the
country.
Upon my return. approaching to the
full the gravity of the situation. and
keenly alive to the fact that early action
was essential, and in order that might
be prepared, if called upon, to act prompt
ly, i took steps to ascertain to what ex-
tent it would be possible to secure the
cooperation of capitalists, institutions
and others in forming a syndicate which
would agree to sell to the United States
government 5000, 0G0, 900 of gold coin.
In my efforts, while far from sanguine
as to the result, the ready acquiescence
National City Bank, New York, Edward
d. Adams. Eso., with full power repre-
senting the Deutsche Bank of Berlin,
Germany; John A. Stewart, ESQ.,, presi-
dent of the United States Trust Compa-
ny; Pliny. Fisk, Esq, of Messrs. Harvey
Fiske & Sons, aud others, to all of whom
l am deeply grateful, encouraged me to
proceed.
The contraot, Jas prepared and signed
by the participants, did not stipulate
whether the purchase should be by pri-
vate contract or by public offer. The
only provision Tin addition to the import
ant one that no gold should be with
drawn from the Treasury was that the
minimum amount of the contract should
be 500, 600, 900 and the maximum the
full amount of participations which
might be secured before it became neces-
sary to act. not exceeding $500, 0OO 600.
The applications for participation far
exceeded my expectations At the end
of three or four days the total of $500, 900,
600 was reached, and had in my hands
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 6XClduS0 lOf OUlUeu OChLeS DODuS,
On Monday, January 6, the call for
public bids for bonds to the extent of
800, 900, 900 was issued by the Secretary
of the Treasury
The amount of bonds thus offered made
the syndicate contract lowing to the
minimum. therein fixed) available only
to bid "for all or none." 1 should be
unwilling to make such bid under pres
emit circumstances, as might thus seem
to present for consideration by the Secre-
tary of the Treasury the throwing out of
smaller bids made in good faith under a
public call. The only emergency which
would justify such course would be the
failure of the public to respond to the
call of the government. Under these cir
cumstances I at once decided to dissolve
the syndicate.
1t has, however, been necessary to delay
this action up to the present time as
every financial interest required the pro-
lection afforded by the knowledge that
the syndicate was in existence. prepared
to make the loan success under the
circumstances; but happily, this neces-
sity does not exist any longer.
The subscriptions by individuals and
others, including many of the syndicate
whom l have encouraged to subscribe.
from present indications, will insure the
complete success of the issue, therefore
feel that the time for announcing the
dissolution of the syndicate has arrived.
and an official notice to the effect has
been issued.
feel PERFECTLY satisfied that there Ii no
question as to the success of the loan.