The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-01-15
MORGAN GETS OUT.
Bond Syndicate Members
Relieved of Their Hum
dred Million Dollar
Pledges.
AN ELABORATE EXPLANATION
Letter to the President Quoted
No Doubt as to the Success
of the Loan.

NEW YORK. Jan Is, 1s9s.-The mem
bers OF the Government bond syndicate
received in their NAH this morning a
circular letter from J. P. Morgan & Co.,
releasing them from their commitments
to furnish their pro rata share of $780,
100000 in gold to the Government and a
second SlO0,oO0,000 if desirable, taking
their pay therefor in four per cent bonds.
| The circular sets forth that this action
seems desirable in view of the terms of
the Treasury circular offering bonds to
| the public.
Pierpont Morgan & Company today is
as follows:-
2S Wall Street, New York City,
January IA, 1896.
.Gentiemen-In sending you formal no
States Bond Syndicate, in which you have
eo.1perated It is proper that I should
aae ayndicasa some statement SHOWING WY the
peen taken on its behalf and why it is
ash!lngton for y conference. During
my visit there, as 1 have verbally stated
70 everyone who has conferred with me
loan We're commenced or even suggested,
nor was there then or since any agree
aens ens or request est that would take any
The result of my visit was that / came
to the following conclusion
OF the Treasury were determined to use
| every power at their command to restore
and maintain the gold reserve
Second-Ihat no steps would be taken
or even any preparatory negotiations
commenced until it was ascertafned what
action. II any, Congress would be likely
to take in response to the appeal of the
president for adequate and improved
means es s. for ns, making such restoration.
| fhn oo1r+fx
| would prefer If possible. to secure $780,
100000 IN gold in order to avoid any prob
aple necessity Tor similar negotiation
/ in 1897. Q -
,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
proveInent of the monetary. system of
| Upon my return, appreciating to the
! full the. gravity of the situation and
keenly alive to the fact that early action
be prepared, if called upon, to act prompt
/ ly, l 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
GqneTnmenf nm eosf s7so9o9 S3S go n g9sd coin
as to the result. the ready acquiescence
Of James stillman, President of the
1 National City Bank, New York; Edward
| D. Adams, with full power representing
the Deutsche Bank of Berlin Germany;
John A. Stewart President of the United
Messrs. Harvey Fisk & Sons, and others.
/ to all of whom / am deeply grateful, en-
/ couraged me to proceed.
/ The contract, as prepared and signed
| by the participants, did not stipulate
whether the purchase should be by gri-
| one that no gold should be Withdrawn
from the Treasury was that the mini
100000 Goo and the maximum fun amount
! of participations which might be secured
before it BECAME necessary to act. not
The applications for participation far ex-
| coed my expectations At the end of
three or four days the total Of $500. 600 900
4 authority which would enable me. when
ever, and however the Executive might
gold gold for - the Treasury reserve in exchange
| for United States bonds.
The participants may be decided into
First-.Institutions. banking firms and
others in Europe who We're prepared if
to i ship a the h ian d of their
| Second-Banks. saving banks and trust
companies, and private individuals
sion SIC, 40 Of the actual gold coin who desired
to secure bonds. either for investment or
as basis for national bank circulatton.
Boston. Philadelphia, Cincinnati and other
/ cities IN possession of gold who without
necessarily desiring bonds for investment,
sustain the Treasury reserve. and ex-
change their gold for United States bonds.
expecting afterwards TO sell the same in
lFourth-Institutions banking firms and
others who. without being in possession
of the actual gold, We're willing and able
/ to obtain that gold at whatever cost. for
deposit with the Treasury in payment
templated ter lated could lIid be be carried out. tt W.
may add for your information that
| the $500 600, 600 paFticipations were about
equally divided between the four classes
The. formation of the syndicate being
u negotiations
should contract with the Government
The. London market was unfortunately
/ closed to US. owing TO causes to which I
need not refsr thsrsfDre through the
Morgan, Harjes Co.. Paris. opened ne
| gotiations for PUBLIC issues in Germany.
land, ' which neg negotiations @ were sU practieal-
| ly concluded. and had it been possible TO
proceed further doubtless. a very large
would have found permanent place in
those countries, to the great advantage
After waiting few days for some an
| nourcement or invitation from Washing
ton. and realizing that every days delay
tension tens IN in financial affairs, on Saturday, Td
| january 4, I sent by messenger the fol-
| lowing letter to the President
NEW YORK, January 4, 1886
| To the President, Washington, D. c.
/ Sr-H is with great hesitation that ven
| ture to address you in relation to the pres
4 ent financial situation
/ AS you are doubtless well aware financial
/ affairs are approaching serious crisis. and
| the tension today is extreme; and, whilst
| no outward evidences have developed, we
are likely at any moment to reach the point
| and consequences which it will then be too
| late to remedy. The gravity of the situation
must be my excuse.
| The most important step at the moment is
| the restoration of Government credit by
/ placing the gold reserve in the Treasury be-
/ yond question This once accomplished, con-
| 6dence both at home and abroad in the sta
/ bility of currency will be restored.
/ Aftfr my recent visit to Washington 1 be-
| came convinced that any legislative action to
/ improve the methods at the disposal of the
| Executive unlikely in fact. impossible.
i therefore took steps to ascertain whether
| it would be possible to obtain the co-opera-
ton of parties at home and abroad to an
/ extent that would enable me to negotiate a
/ contract with the Government for the sale
1 Of 11,500000 ounces of gold, apprexnaing
! 200 100000 of dollars, on about the basis of
| the contract Of February 5, 1895 In this
| effort l have been successful. and am now
Fin position to make such contract for
i the full amount
! do not hesitate to affirm, in fact, to urge.
/ tha. such a contract would in every way be
| for the best interest Of the Government and
/ the people. and would be followed by loss
iii fact, of all the interests, including foreign
+ exchanges. all of which. until recently. were