The silver blade., January 18, 1896, Page 6, Image 6

About The silver blade. (Rathdrum, Idaho) 1895-1903

Image provided by: Idaho State Historical Society

                
THE LOAN 18 A SUCCESS
Bond Issue Can Ba Floated In
dependent of Syndicate.
MORGAN'S CLIQUE HAS QUIT
The Great Combine of Gold Barons Has
Dissolved, Each to Get What
He Can.
MODIFIED CONDITIONS FOR PAYMENT
-
Washington, Jan. 15.—The announce
ment that the Morgan bond syndicate
had been dissolved, made in New York
today, was received with surprise, al
though among officials conversant with
the changed situation no other course
has seemed open to Morgan and his as
sociates. The reason given for the dis
solution is accepted as the true one,
since Morgan and his friends are fully
aware of the fact that the success of
the loan by popular subscription Is no
longer a matter of doubt. To hold the
banks to the terms of the contract, it is
argued, would prevent any of them
from participating in the loan except
in the capacity of a syndicate, which,
under the changed conditions, almost
certainly would result to their disad
vantage. Morgan's purpose, therefore,
in releasing his associates, it is believed,
is to give them an equal chance with
ether banks and financial institutions to
secure whatever part of the loan they
may desire.
The only criticism so far heard of
Morgan's public statement is that his
assertion that he "was invited to Wash
ington for a conference" is misleading,
as the natural Inference is that this in
vitation came from the president or, by
his sanction, from some member of the
cabinet. This, It Is said, is not the fact.
When Morgan came to Washington the
president declined to see him, nor, it is
added, did he confer with any member
of the cabinet at the president's sug
gestion.
It is stated on high authority that the
president and Secretary Carlisle have
received such assurances from a large
number of prominent bankers through
out the country that there can not be a
doubt as to the loan being a success.
It is argued that during the late'break
in the market which followed the an
nouncement of the gbvernment's atti
tude on the Venezuelan question, east
ern bankep» «took advantage of the
sharp decline }n American securities
and as a res^J/t'their holdings are now
large and must be protected from a fur
ther decline, which would necessarily
follow the failure of the loan or the
depletion of the reserve to a point so
unfavorable as to affect the market.
Under these circumstances it is be
lieved that should a large export move
ment set in before the loan is con
summated the large banks and other
financial institutions would neutralize
by making deposits of gold. In any
event the officials here are not appre
hensive of any serious difficulty in
maintaining the reserve at about its
present figure nor in placing the $100,
000,000 loan at a fair price, both to the
government and to the purchaser. The
only serious question involved in the
situation, it is said, is from what source
are the bond purchasers to obtain their
gold, and if from the banks, as seems
altogether probable as to a very large
percentage of It, will not the banks
eventually recoup their reserve hold
ings by withdrawals from the treasury?
Secretary Carlisle this afternoon in
speaking of the dissolution of the syn
dicate said he could be quoted as saying
that "the success of the loan was as
sured.
M
Secretary Carlisle Issues a Circular Re
garding the Bond Sale.
Washington, Jan. 15.—Secretary Car
lisle tonight made public the following
circular modifying the conditions for
payment on the advertised bond issue:
Treasury Department, Office of the Sec
retary, Washington, Jan. 15.—Treasury
circular No. 3168, dated January 6, 1896,
inviting proposals for the purchase of
$100,000,900 - of United States 4 per cent
bonds, is hereby so 'modified that, after
the payment of the first installment of
30 per cent with accrued interest, as re
quired In said circular, the remainder of
the amount may be paid in installments of
10 per cent each and accrued interest at
the end of each 15 days thereafter, but
all accepted bidders may pay the whole
amount of their bids at the time of first
installment and all accepted bidders who
have paid all installments previously ma
turing, may pay the whole amount of
their bids at any time not later than the i
maturity of the last installment. Accepted i
bidders who pay the whole amount at the
time of the first installment or any date
thereafter, as above provided, will be en
titled to receive at the date of the payment
the whole amount of the bonds awarded
to them, and accepted bidders who pay by
installments will be entitled to receive at
the dates of such payments the amount
of bonds paid for.
J. G. CARLISLE, Secretary.
THE GOLD SIMUCAIE RELEASED
Banker Morgan Says No Offer of Bonds
lias Been Made to It.
New York, Jan. 15.—The members of
the government bond syndicate receiv
ed in the mail this morning a circular
letter from J. P. Morgan & Co., releas
ing them from their committment to
furnish their .pro rata of the $100,000,000
gold and second $100,000,000 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 a bid under the pres
ent circumstances, as he might
seem to present a 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 a course would be
the failure of the public to respond to
the call of the government.
"On the 28d of December," Morgan
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 or since
any agreement or request that I
should take any steps preparatory to
making a 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 se
cure $200,000,000 in gold, and it was cer
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 possi
ble to secure the co-operation of cap
italists to forming a syndicate which
would agree to sell the United States
government $200,000,000 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 $100,000,000, 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 $200,000,000 was reached, and I
had full authority which would enable
me, whenever and however the exec
utive might decide to act, to secure that
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 eith
er for investment or as a basis for na
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 Arms 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
tions 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 a most important step
was a restoration of the government
bond credit by replenishing the stock
of gold. Details of what was proposed
were given and assurances offered that
the utmost efforts would be made to
procure for the treasury 11,500,000
ounces of gold.
»»
A STATE ASSOCIATION
i
i
Provides for a Permanent and
Able Society.
the OFFICERS WERE EiLECTED
C. L. Webb of Scatt'e, President;
bert Holster of spokane the
Vice President.
; Her
I
14.—The immigration
Jan.
Seattle,
convention closed its two dayp' session
here today with the organization of
permanent state immigration associa
tion. The plan of organization provides
that the organization shall cpnsist of
member from each county; rhat
a
one
there shall be an executive committee
of seven chosen, who shall elecjt a pres
ident, secretary and treasurer from
their number.
C. L. Webb of Seattle has be|en elect
ed president and H. Bolster of Spokane
vice president. The executive commit
tee of seven includes Harry Cojmwell of
Colfax, H. Bolster of Spokane q nd E. L.
Benson of North Yakima. All the coun
ties are expected to perfect county or
ganizations within the next 30 days,
and the proposition is being cqnsidered
to go into partnership with Oregon, and
perhaps with Idaho, in this movement,
the idea being prevalent that tjne inter
ests of the north Pacific states are iden
tical and that this is the propèr meth
od to pursue to combat the combination
of the cotton states of the soutq.
The committee earnestly recommend
ed that an appropriation of hot less
than $25,000 per annum should pe made
by the next legislature, and there
seemed to be no doubt that thii recom
mendation would be granted for the
question. To pay current expenses until
that time an assessment of $10 on each
county was talked of. but no definite
action was taken; and it was also decid
ed to call upon commercial bodies and
citizens for voluntary aid to the work.
Colonel Howlett offered a reéolution.
which was adopted, memorializing con
gress in favor of an act giving
state outright lands which ^
granted under numerous conditions. He
explained that the progress of the arid
land commission was greatly hämper
by numerous provisions.
Joseph Shippen read a paper pn "De
sirable Immigration and How to Se
cure It." He outlined plans of obtaining
the proper class of settlers.
E. Berrum of King county read
highly intelligent paper on "Scandina
vian Immigration." He favored
amendment to the immigratiqn laws
by requiring all immigrants to be able
to read and write in some language
other. It was time to call a halt to the
importation of ignorance. He closed by
offering a resolution, which was
imously adopted, memoralizing
gress to pass an act upon the lines sug
gested in the paper.
John M. Burke made a speech on the
mineral resources of the northwest,
which created a favorable impression!
While the speaker claimed to krjow lit
tle of immigration he would predict
that Spokane would untimately h
population of 100,000, all through
wealth of mines, and that the^ sound
country from its climate and wonderful
fertility would speedily fill with
tiers.
Lieutenant A. B. Wickoff of North
Yakima read a carefully preoared pa
per on "Irrigation," giving much infor
mation and showing conclusive^ that
that mode of farming was indeed the
best, because the
sure.
There were a large number of excel
lent papers read, giving statistics and
other reliable information of the state
The delegates were very enthusiastic
and it is believed that large funus wffi
be received by voluntary subscription
to spread information in regard to the
state and to take other means bf at
tracting the better class of setters
to the
re now
od
a
an
or
unan
con
ave a
the
set
crops were always
Dividend Declared.
Boston, Jan. 15.—The trustees bf the
Boston and Montana Consolidate«? Con
per and Silver Mining Company tod av
declared a dividend of $2 a sharei pay
able February 20 , to stockholdir? «f
re C ord at 'he close of business January
date »WON ,0tal dlvWena 'O
MEN TO NOMINA I E A
president
Republican Delegates in Five Philadei.
phia Dimricts.
Philadelphia, Jan. 15.—Convention«
were held by republicans in five con
gressional districts in this city today, a t
which two delegates to the national con
vention at St. Louis were chosen, aa fol
lows: First district, Israel W. Durham*
Edwin S. Stuart; Second district, Daviff
H. Lane, Hamilton Disston; Third dl»
trict, J. B. Anderson, Joseph K. Lem
mer; Fourth district, Alexander Crow
Jr., Edward W. Patton; Fifth district]
David Martin, H. B. Hackett.
Of the 10 delegates, four men
chosen on the anti-administration,
Quay tickets; the other six are *
nounced as "combine" delegates.
In the Third district the Quay follow
ers bolted and held a separate meeting,
electing State Senator Elwood and Hen
ry Clay delegates. The case will prob
ably have to be settled in court.
In the First and Fifth districts a res
olution was unanimously adopted in
structing the delegates to vote for
Thomas B. Reed for president.
In the Fourth congressional conven
tion the delegated were instructed for
Quay.
are
or
an
FORAKER WAS F< »H.via LlY ELECTED
Ohio législature Confirmed Its Act in
Joint .session.
Columbus, Ohio, Jan. 15.—The two
houses of the legislature today in Joint
session at 12 o'clock confirmed their
respective acts yesterday, electing J. B.
Foraker to be United States senator,
his term to begin March 4, 1897. The
senator-elect addressed the general as
sembly briefly.
JOINT BALLOT IN MARYLAND.
Annapolis, Md., Jan. 15.—The first
joint ballot for senator resulted: Re
publicans—George L. Welling, 28;
Charles T. Westcott, 16; A. L. Dryden,
8; Philip Goldsborough, 17; James I.
Milliken, 8; Sidney E. Mudd, 1; Robert
E. Dixon, 1. Democrats—John Watter
Smith, 21; Henry Page, 9.
A COMPLIMENTARY VOTE.
Des Moines, Iowa, Jan. 15.—Demo
cratic legislative joint caucus today
nominated W. I. Babb for United States
senator.
SUNDAY BASEBALL IS NO CRIME
Chicago Courts Declare the Players Wer#
Illegally Fined.
Chicago, Jan. 14.—The Jury in the ease
of Walter Wilmot vs. the city of Chi
cago handed In a verdict of "not guilty"
today. This is the famous Sunday base
ball case, the entire Chicago ball club
having been arrested last summer for
playing ball on Sunday. The decision
probably insures Sunday baseball for
Chicago next summer. The jury decid
ed that no breach of the peace was com
mitted, therefore the fines against the
players were unwarranted.
X)URT MARTIAL OF CAPT. HEALY
It Is Tnought Capr. Tuttle Will Succeed
Him in Command of the Bcor.
Washington City, Jan. 12.—In case the
court martial, which has been ordered
to investigate the charges against Cap
tain Healy, commander of the Bear,
should report adversely to that officer
and he should be removed from his com
mand, as is not thought unlikely in
some quarters here, it is said his suc
cessor will be Captain Francis Tuttle,
who has seen considerable service on
the Pacific coast and on Puget sound,
where he is well known and generally
liked.
PROTEST AGAINST A FUNDING BILL
Californians Win Hold a Convention for
That Purpose.
San Francisco, Jan. 15.—There will be'
a state convention held here Saturday
to protest against the passage by com
gress of a funding bill for the Pacific
roads. The convention Saturday will
be attended by representative mer
chants and farmers from all over the
state and In all probability resolution»
extremely antagonistic to Huntington'»
railroad properties will be adopted.
SCHOOL SHIP
Eighty Boys «tart Wi h Her
w nter Cruise.
Philadelphia, Jan. 15.—With a com
plement of 80 boys from different parts
of the country, the United States school
ship Saratoga sailed last evening for a
midwinter cruise. The vessel is com
manded by Commander Hutchins, who
succeeds Commander Strong,
cruise will cover a period of three
months, and the Saratoga will touch at
Barbadoes, Martinique, St. Thomas,
Kingston, Jamaica, and' other pointa
SARATOGA SAILED
Her Mid
on
The