St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-02-09
CARLISLE BUYS COLO.
Advantage Taken Of the Pur-
chase Act to Replenish
the Reserve.
PURCHASERS DISCRIMINATE.
Three Per Cent Rate Accept
able if Bonds Are Made
Payable in Gold.
MESSAGE FROM CLEVELAND.
Pointing Out the Saving Eff
feeted if the Necessary
Authority Is Granted.
MESSAGE FROM CLEVELAND.

WASHINGTON. Feb. S-The bond
transaction consummated today strictly
speaking is not sale of bonds for gold,
but purchase of gold to be paid for IN
bonds. The issue was not made under
the authority granted by the resumption
act, but under section 37G0 Of the Re
yised Statutes. which reads as follows:
1.-The secretary OF the treasury may
purchase coin with any of the bonds or
notes of the United States authorized by
law at such rates and upon such terms
MS he may deem most advantageous to
the public interests"
The contract was made with August
Belmont & Co, Of New York. on
behalf of Messrs. n. NJ. RothSChild IL
Sons, of London, and themselves, and }.
Pierrepont Morgan & Co., of New York.
on behalf of j. S. Morgan e Co., of
London. and themselves, and provides
for the delivery to the United States of
8. 800. 600 ounces of standard gold coin Of
the United States to be paid for In
United States 4per cent bonds. A large
number of other banks and financial
institutions are interested in the trans
action, but their names are not mem
toned in the contract itself. The de-
partment does not know in what
proportions the various parties
are 10 furnish the gold coin or
receive the bonds, as this is n
matter for arrangement between them
selves. By the terms of the contract
the parties are to bear all the expense
of bringing the gold from abroad. An
other stipulation of great importance is
that MeSsrs. Morgan and Belmont
agree TO exert all their financial
strength and influence and that of their
associates at home and abroad to pro-
tect against Withdrawals Of gold pend
ing complete performance of the con-
tract. No bonds are to be delivered eX-
cept i'll payment for gold actually de-
liYered. In view of the probable failure
of congress, treasury officials declare
that these terms are the best that could
be procured with a coin bond. Those
who are in position to know the pres
ident's views on the subject give it as
his opinion that the issue will so far re-
store public confidence at home and
abroad that any other issue will be I'M
necessary. at least until the meeting of
the next congress, in December. If,
however, it should become necessary,
the president will act as promptly as
may be necessary to protect the
public credit. 1t is confidently eX-
pected by the president that this
issue will render an extra ses-
sion of congress wholly unnecessary.
1t is stated on good authority that it was
the presidents first intention to make
the 10 II 500, 900, 900, and this amount
was for some time insisted on by the
London bankers, but after much DELHI
Grafton the president concluded that the
amount announced today would prob
ably answer every purpose as fully as a
greater amount, and recently he stated
10 MessrS. Morgan and Belmont that. as
3,5OO,00 ounces of gold would place our
reserve about the S100,O0O.0O0 point, he
would not consent to purchase greater
amount. His decision was reluctantly
concurred in. There IS said to be no
provision in the contract obligatlng the
government to dispose of any future
issue to MessrS. Morgan and Belmont,
or to any one whOmsoeyer, nor was there
any specific or implied understanding
to that effect. 1t is understood that the
gold called for by the terms of today's
agreement Will be shipped from Lon
don at the earliest day practicable. The
agreement on the part OF Messrs. Nor
gan and Belmont to use their best en-
beavers to prevent gold from being
Withdrawn from the treasury was un-
delstood to mean that no part OF the
gold hargained for should either direct
Iy or indirectly be taken from the treas
ury, and therefore it is fully believed
that the reserve will be augmented by
the full amount of gold purchased.