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Syndicate Is Broken

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New York, Jan. 16.- The bond syndiïate has been dissolved. Membors of the government bund syndicate recived in their mail Wednesday moruing a circular letter f rom J. P. Morgan & Co. releasing them from their coiumitmunts to furnish their pro rata of $100,000, 000 In gold and a second $.OJ,OOJ,030 if desirable, taking their payment in 4 per cent. government bonus. Accompanying thls letter was a circular ezpliiining why the syndlcato was formed, what action was taken on its behalf, and wby it is now dissolved. "On the 28d of Decnjnber," Mr. Morman says, "I was invited to Washington for a conference. During my visit there no negotiations for a loan were even suggested, nor was there then, nor since, any agreement, or request, that I should tuke any steps preparatory to making a contract. Would Do AU in Their Power. "I carne, howevor,to the conclusión that the president and seCretary of the treasury would use every power at their command to restore and maintainthe gold reserve; tha no steps would be taken until it was ascertained what congress would do; that the executive department would prefer to secure $200,000,003 of gold, and that it was certain that no relief could be obtain from congress. "Upon my return, appreciating the gravity of the situation, and in order that I might bo prepared to act promptly, I took steps to ascertain to what extent it would be possible to secure the co-operation of capitalists in forming a syndicate which would agree to sell to the United States government $00,000,000 of gold coïn. The contract prepared and signod by the participants did not sti púlate whether the purchasa would be by private contract orby public offer. The only provisión in addition to the important one that no gold should be dravvn from the treasury vas that the minimum amount of the contract should be 1100,000,000, the maximum not over $i!OU,00n,OO0. Ëxceedcd Expectationa. "The applications far exceeded my expectations. At the end of three or four days the total of $300,000,000 was reached and I had full authority which would onable me whenever and however the executive might decide to act te secure that amount of gold for the treasury reserve in axchange for United States bonds. The participants may be divided into four elasses: People in Europe who were pi eparod to ship gold to this side; institutions in the Uuited States in possession of the gold coin who wanted bonds either for investment or as a basis for additional bank circulation; third, banks in various cities who were wüüng to exchange their gold for bonds, expecting afterwards to sell them in the market; fourth, iustitutions and firins not havinggold but which would get it at whatever cost, provided the contract was put in force. Participations were about equally divided between the four classes. Negotiations in Enrope. "Having completed the syndicate I entered into negotiations in Europe, and in places other than London, where the market was closed to us, and through the Deutsche bank and Messrs. Morgan, Harjes & Co. Negotiations were practically concluded for public subscriptions in Germany, France, and Holland, which would havo rosulted in a large amount of bonds being placed in those countries. On Jan 4, realizing that the tensión was growing daily and had become serious, I addressed a letter to the president, calling his attention to the situation and representing that the most important step was the restoration of the governinent credit by replenishing its stock of gold. Details of what was proposed were glven, and assurances offered that the utmost efforts would be made lo procure for the treasury 11,500,000 ounces of gold." Reasou for the Pissolution. The reason given for the dissolution of the syndicate is that the syndicato contract called for a bid of "all or none," and thcrefore Mr. Morgan was unwilling to make a bid under the present circumstances, as he might seem to present for consideration by the secretary of the treasury the throwing out of smaller blds made in good falth under the public cali The only emergency, in Mr. Morgan's judgment, which would justify such a course would be the failure of the public to respond to the cali of the government. It has been necessary to delay the dissolving of the syndicate up to the present time, as every fluancial interest required protectior afforded by the knowledge that the syndicate was in existence, prepared to make the loan a sSceess under the circumstences. The circular concludes: "I feel perfectly satisfied that there is no questkm as to the success of the loan." ' Boycott Fizzled Out. St. LOUIS, Jan. lö. - The boycott inaugurated against the St. Louis Fair association by the Kentucky Breeders' association seems to have fizzlud out. Horsomen all over the country as fast as they heard of it telegraphsd to the Fair asssociation assurances of their friendship. Entries to all the stakes closed Wednesday, and the Fair association officials state that the list is unusually large.


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