In the mid-1890s, the United States was in the middle of a terrible depression. Democratic President Glover Cleveland supported the traditional gold standard, but his party embraced bimetallism. J.P. Morgan understood that if US gold reserves disappeared, the US would go through a great crisis. He offered to the government to form and lead a syndicate that will purchase bonds from the US in exchange for 62 million dollars' worth of European gold. Cleveland didn't have additional alternatives, so he agreed to the plan and implemented the bond sale. Private banks immediately resold the bonds at the marked-up rates.
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