The silver blade. (Rathdrum, Idaho) 1895-1903, 1896-01-18

]. G. CARLISLE, Secretary.
THE GOLD SYNDICATE RELEASED
Banker Morgan Says No Offer Of Bonds
Has Been Made 10 1t.
New York, Jan. 15.-The members of
the government bond syndicate receiv-
ed in the mail this morning circular
letter from J. p. Morgan & Co., releas-
ing them from their commitment to
furnish their pro rata Of the $100,O00 900
gold and second 500, 100000 If desirable,
taking in payment 4 per cent govern
ment bonds.
The reason given for dissolution Of
the syndicate is that the syndicate con-
tract called for a bid for 'all or none,"
and therefore Morgan was unwilling to
make bid under the pres
ent circumstances, as he might
seem to present consideration
for the secretary Of the treasury throw
ing out smaller bids made in good faith
under the public CALL The only emer-
gency, in Morgan's judgment, which
would justify such course would be
the failure Of the public to respond to
the call Of the government.
ION the 23d of December" Morgan
says, II was invited to Washington 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 l
should take any steps preparatory to
making contract. I came however,
to the conclusion that the president and
secretary of the treasury would use
every power at their command to main
tain the gold reserve, that no steps
would be taken until it was ascertained
what congress would do, that the ex-
ecutive department would prefer to Sc
cure 5000, 100000 in gold, and it was GER
tain that no relief could be obtained
from congress. Upon my return, ap-
preciating the gravity of the situation,
and in order that I might be prepared
to act promptly, I took steps to ascer-
tain to what extent it would be posi-
BILE to secure the cooperation of cap
italists to forming syndicate which
would agree to sell the United States
government $780, 1000 in gold coin.
The contract prepared and signed by
the participants did not stipulate
whether the purchase would be by pri-
vate contract or public offer.
"The only provisions in addition to
the important one that no gold should
be withdrawn from the treasury, was
that the minimum amount of the con-
tract should be 100000, 900, the maxi
mum not over 200,000,000. The applica-
tions far exceeded my expectations.
At the end Of three or four days the
total Of 5000 000, 900 was reached, and
had full authority which would enable
me, whenever and however the exec
utfve might decide to act, to secure thst
amount of gold for the treasury re-
serve in exchange for United States
bonds.
''The participants may be divided
into four classes: People of Europe
prepared to ship gold to this side; insti-
tutions In the United States in possess
ion Of gold coin who wanted bonds eth
er for investment or as a basis for ma
tional bank circulation; third, banks
in various cities willing to exchange
gold for bonds, expecting afterward to
sell them on the market; fourth, insti-
tutions and firms not having gold, but
which would get it at whatever cost,
provided the contract was put in force
The participants were about equally
divided between the four classes.
Having completed the syndicate, I
entered into negotiations with Europe
and places other than London, where
the market was closed to us, and
through the Deutsche bank and Messrs.
Morgan, Harjes & Co. The negotia-
lions were practically concluded. Re-
alizing that the tension was growing
daily and had become serious, I ad-
dressed a letter to the president, calling
his attention to the situation and rep
resenting that q most important step
was a restoration of the government
bond credit bv replenfShing the stool
Of gold. Details of what was proposed