The Providence news. (Providence [R.I.]) 1891-1906, 1895-02-09
s62,40O,O00
vii Answer for Relieving
the Treasury Distress.
We Belief Of Those Posted on Finan-
ciaI Matters.

WASHINGTON, Feb. 9.-The bone trans
+ oction consummated yesterday. strictly
/. speaking. is not a sale Of bonds for gold,
bat q purchase Of gold to be paid for In
Z bonds. The issue was not made under the
authority granted by the resumption act,
but under section 800 of the revised
Statutes which reads as foilows1
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
md upon such terms as he may deem most adj
vantsgeous TO the public interest.
The contract was made with August
Belmont & Co. OF New York on behalf OF
= Mcssrs. n. NJ. Rothschllds q Son OF Lon
don and themselves. and j. T.. Morgan q
CO. OF Now York on behalf OF j. >. Nor.
gan g. Co. of London and themselves, and
provides for the delivery 10 the United
States OF 3, 300 00O ounces of standard gold
coin OF the United States (s62, AGO. 0Oo) TO
be paid for In United States 4 per cent
bonds A large number OF other banks
and financial institutions are interested In
the transaction, but their names are not
mentioned in the contract itself.
The department does not know In what
proportions the various parties are TO fur-
nish tho gold coin and receive the bonds,
rs this Is n matter for arrangement among
themselves BY the terms of the contract
the parties are to bear all the expense OF
bringing the gold from abroad, and an
ether stipulation of great Importance Is
that Mcssrs. Morgan and Belmont agree
70 exert all their financial strength and
influence, and that of their associates, at
homo and abroad, TO protect the treasury
against Withdrawals OF gold pending CON-
plctc performance of the contract.
No bonds are 10 be delivered except In
payment for gold actually delivered. In
view OF the probable failure Of congress,
treasury officials declare that these terms
are the best that could be procured with
coin bond. Those who are in position to
know the presidents views on the subject,
give 1t as his opinion that this issue will so
fAr restore confidence at home and abroad
that other issues will be unnecessary. IL,
however, 1t should become necessary, the
president will act as promptly as may be
necessary te>protect the public credit.
Cleveland's Hopeful View.
1t Is confidently expected by the presi-
dent that this issue will render an extra
session OF congress unnecessary. IL Is
said ON good authority that 1t was the
presidents first intention TO make the
present loan el00, 600 900, and this ainounb
was for some time insisted upon by tho
London bankers but after much delibera-
tion the president concluded that tho
amount announced yesterday would prob.
ably answer every purpose as fully AS
greater amount, and recently he stated to
Mcssrs. Morgan and Belmont that as
8b00, 900 ounces of gold would place our
reserve above the $l00, coo, 900 point he
would not consent to purchase greater
amount His decision was reluctantly
,ooncurred In.
There IL said to bo no provision In the
oontract obligating the government to
dispose Of another future issue to Messrs
Morgan and Belmont or to any one whom
soever, nor was there any specific or i'm
piled understanding to that effect. 1t Is
understood that the gold will be shipped
from London at the earliest day practical
ble su6
The agreement on the part Of Messrs
Morgan and Belmont to use their best en-
deavors to prevent gold from being with
drawn from the treasury was understood
70 mean that no part of the gold bargained
for should, either directly or Indirectly, be
taken from the treasury, end therefore 1t
Is believed that the reserve will be aug
mented by tho full amount of gold pur-
chased.
Concerning the Future.
The action OF the house ways and means
commi,tee upon the presidents message
cannot DO predicted with certainty, even
by members OF that body, although they
were engaged In a canvass Of views nearly
I'll day.
Itis understood that bill upon the
presidents message will be submitted to
tlie committee, but the attitude of several
members toward IL is not known
Representatives Wilson, Turner Stov-
ems, Bynum aud Tarsney of the Demo
Gratis are supposed TO favor such measure.
Messrs. Bryan and Wheeler were listed
against the Springer bill, and their atti-
tude upon the message is likely to be un-
changed.
The Republican members Of the COM
mittec gcnora'.y decline to say what posi-
tion they yill take upon the question. but
there Is talk among them of Offering
sountcr proposition, perhaps something in
line with Mr.. Reeds plan, although the
sal< was so indefinite that IL may come to
naught.
Representative Cochran, who would
doubtless sustain the president in the
measure, Is out OF town, aud Rsprescnta-
tive Gear is sick, leaving 10 Democrats
and Republicans upon the committee to
settle ssae question.