The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1896-10-08
A GOLD-DUG SYNDICATE
Inside History Of The Governments
Private Bond Contract.
HOW THE TREASURY WAS hILCHED
strong words In the Past, by Sena.
cor Cameron aud General Palmer,
Favoring stiver-ssryau's Brave
Words against Corporate Greed.

cisco, in a recent speech gave some inside
history OF most interesting nature in
connection with the transaction in Feb.
ruary, 1895, by which the syndicate OF
banks headed by j. Pierpont Morgan,
secured from the treasury department OF
the United States government the whole
of an issue of bunds, amounting to $62,-
100000 at the astonishingly low rate OF
$104. Says Judge Mcguire: In Febru-
airy, 1895, the government OF the United
States for the purpose of maintaining the
parity between gold and silver and the
paper OF the United States on the gold
basis, required 1852, GOO, 900 in gold to meet
the demands, the drain that the Wall
street bankers were making on the re-
serve at the time.
The secretary OF the treasury proceed.
ed to have bonds to the amount OF s62,-
000,0 struck off. He was about to adj
vertise for bids according to the custom
of more than 10 years in this country
when bonds are to be sold. While he
was making these preparations a few
men In New York were making other
Preparations; few bankers there, less
than dozen, formed what they called
the Morgan syndicate, aud they sent
their representative TO Washington to the
secretary of the treasury and said to
him: eve understand that you are GO
ing to issue bonds for 100000, 900 in
gold" The secretary said ives"
"Well," they said, "the Morgan syndi.
cate. which has inst been formed, con-
trolls all the available gold in the United
States and controls the avenues through
which gold may be obtained from abroad.
We will take those bonds from you at
81 "a in gold" That means a premium
of 4 per cent. The bonds under the law
bearing higher rate OF interest than
the standard interest prevailing in the
market upon that kind of securities,
commanded premium, but the bonds
were selling then at premium of l21s
cents in New York. They offered $l04
for the bonds. The secretary naturally
said: IBID for them and il nobody bids
higher you can take them for $104, but
you cannot take them by private con-
tract-that is not the way government
bonds are cold" But" said the insinu.
ating agent, 1--WE control the other end of
the situation. We control the $346, 000,-
900 of greenbacks or substantially all OF
that issue that are out and the $l12, 000,-
000 of treasury notes which, under your
ruling and the ruling of Secretary Foster,
are payable in gold at the treasury on de-
mand. If you should get $62, 000, 900
from somebody else, and we don't think
you can, we could draw it all out OF the
treasury the next day and then you
would have to Issue another $62, 000, 900
to replenish the gold reserve.
There would be no use IN that. But
If you will sell us at $l04 we will guar
srantee the government of the United
States that no gold shall be drawn out OF
the treasury out of the gold reserve for
eight months"
After consideration OF the whole prop
osition President Cleveland was called
into consultation and Herewith Cleve.
land, Carlisle, Morgan, Stetson and one
other witness, the government yielded 10
that little combination OF wealth and
greed and sold those $62, 900, 000 Of bonds
at $1.04! The syndicate took it's bonds
and sold 30,0O0,0 900 of them at once at
l.l21s. And they sold the rest at like
premium abroad and pocketed $4,000, 900
on the transaction. A million dollars q
month TO that little coterie OF bankers
for guaranteeing the government that no
body else should draw gold out OF the
treasury
Our populist friends are inclined to
claim that they brought on the free coin
age issue in this campaign. They did
much to promote it. ALI honor to them
for what they did and all honor to what
they are doing now in rsllying to the
support OF William ]. Bryan. But, ladies
and gentlemen, they did not bring on the
silver issue. The Morgan syndicate did
more to make this national issue than
the populsts or the democrats or all
others who elamored for it before. The
Morgan syndicate gave an object lesson
to the people OF the United States OF the
slavery of the people to money power
and the people of the United State have
arisen to shake off the chains and the
shackels OF that com bination.
That the monopoly OF the Morgan syn
dictate resulted in contraction not only
Of the gold currency bat of the other eur.
reney OF the people, is shown by the dec
laratiou proved to be true on the part OF
the Morgan syndicate that they hold for
the purpose of drawing from the national
treasury s470, Goa, 000 Of the paper issues
of the United States government and hold
it out OF circulation as completely retired
as il il had been cancelled in the treas
ury, the greenback issues. the $3i6, 000,-
600 and the SIP, ,000 OF gold treasury
notes. The meaning of that is that in
the hands of little syndicate in New