The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-09
NOT A SALE OF BONDS,
But Purchase of Gold to BE Paid
for I'm Bonds.

WASHINGTON, JseD. Sine BOND trans
action consummated to-day, strictly speak
ing, is not a 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 800 of the Revised Statutes, which
reads as follows:
The Secretary of the Treasury may pur-
chase coin with any of the bonds or notes
of the United States authorized by law, at
such teS and upon such terms he may
deem most advantageous to the public in
terests
The contract was made with August Bel
mont & Co.. of New York, on behalf Of
Messrs. n. NJ. Rothschilds & Sons of Lon
don, and themselves and J. p. Morgan &
Co., of New York, on behalf of ]. S. Nor
gan & Co., of London, and themselves and
provides for the delivery to the United
States of S.500,000 ounces of standard gold
coin of the United States, TO be paid for in
United States four-per-cent bonds. A large
number of other banks and financial institu-
tions are interested in the transaction, but
their names are not mentioned in the con-
tract itself The department does not know
in what proportions the various parties are
to furnish the gold coin or receive the
bonds, this is matter for arrangement
between themselves. BY the terms of the
contract the parties are to bear all the ex-
pense of bringing the gold from abroad.
Another stipulation of great Importance is
that Messrs. Morgan and Belmont agree to
exert all their financial strength and infiu-
ence and that of their associates at home
and abroad to protect against Withdrawals
of gold pending complete performance OF the
cept in payment for gold actually delivered
In view of the probable failure of Con-
gress to afford relief treasury officials de-
clare that these terms are the best that
could be procured with coin bond. Those
who are III position to know the Presi-
opinion that this issue will SO far restore
public confidence at home and abroad that
any other issues will be unnecessary, at
least until the meeting of the next Con-
gress 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 expected
by the President that this issue win render
extra session of Congress wholly unnec-
essary. It is stated ON good authority that
it was the Presidents first intention to
make the present loan 10000 ooo: and TINS
the London bankers, but after much delib-
Grafton the President concluded that the
answer every purpose as fully as a greater
amount, and recently he stated to Messrs.
Of gold would place our reserve above the
00.000,000 point he would not consent to
purchase greater amount His decision
There is said to be no provision in the
contract obligating the government to dis
pose Of any future issues to Messrs. Morgan
nor was there any specific or implied under
standing to that effect 1t is understood
that the gold called for by the terms of
to-day's agreement will be shipped from
London at the earliest day practicable The
and Belmont to use their best endeayors to
prevent gold from being withdrawn from
the treasury was understood to mean that
no part of the gold bargained for should
either directly or indirectly be taken from
lieved that the reserve will be augmented
by the full amount of gold purchased
The action OF the ways ana means COM
mittee on the Presidents message cannot
be predicted with certainty even by men,
berS of that body, although they We're
gagged in a canvass of views nearly all day.
1t is understood that a bill based on the
the committee, but the attitude of several
members toward it is not known. Repre-
sentatives Wilson, Turner, Stevens, Bynum
and Tarsney, of the Democrats, are sup
posed to favor such measure. Messrs
Bryan and Wheeler listed against it,
and Messrs Whiting McAIillin and Mont
gonery are listed in the doubtful column
The two first named voted against the
Springer bill, and the last for 1t. and their
attitude the message is likely to be
unchanged. The Republican members of
the committee generally decline to say what
position they will take upon the question
but there is talk among them of offering
a counter proposition. perhaps something in
line with Mr.. Reeds plan, although the
talk was so indefinite that it may come TO
naught. Representative Cochran, who will
doubtless sustain the President in this
matter, is out of town, and Representative
Gear is i'll, leaving ten Democrats and five
Republicans upon the committee to settle
the question.