The silver blade. (Rathdrum, Idaho) 1895-1903, 1895-07-13
NO SECURITY WAS ASKED %
The President and Cabinet Refused Be.
cause the Law Did Not Sanction
Such Proceedings.

\ OASC06SAVAA
In the treasury and the action. past and
past and probable. Of the Morgan-Roth-
schild bond syndicate has brought to
light today the fact that the car, AL
ander III, Of Russia offered to loan the
United States all the gold necessary to
maintain the reserve at any figure de-
sired"
| The story Of the proposition made by
the car and the way 1t was received
| by the president was one OF the best
kept secrets of the white house. AL
| though the incident occurred some two
years ago, no hint of it has reached the
public till now. It was in May, 1893,
that the state department was surpris-
ed by the receipt Of a communication
from Andrew D. White, then American
| minister at st. Petersburg, stating
that the czar had, through M. de Giers,
offered to loan to the president of the
United States AMI amount Of gold re-
CURED to carry the treasury over
through the impending crisis. Help
was needed at that ime, the new adj
ministration had been in power but a
few months and the financial question
was pressing for solution. The Wilson
bill had been framed but not passed.
and the business Of the country was al
ready suffering from the depression
which later grew into a commercial
and financial panic. It was in
the midst of such situation
that secretary Of State Gresham pre-
sented at cabinet meeting a letter
he had received from Minister White.
The cars offer Of assistance was di-
rect but simple. Mr.. White stated in his
on1c1al communication to the state de-
partment that he had been called upon
oy M. de Giers, who said the car had
instructed him to confer with the Amer
lean representative at the court of st.
petersburg and inform him that the
car stood ready to make a personal
loan to the president of gold to the
amount Of $4,000, 900, or as much more
as might be desired, at nominal rate
OF interest and for an indefinite period.
The interest indicated was a fraction
more than 2 per cent. Nothing was said
about security, and it was evident that
Alexander III. believed that the presi-
dent would take this money and apply
II to the needs Of the United States
treasury with but little formality.
AS may be supposed, the letter pro-
duced great sensation in the cabinet
The president was much affected nv the
evidence Of esteem on the part of so
powerful parsonage as the autocrat
or all the Russias. The car intended
MS tender of financial help as personal
compliment to the president of the Uni |
tea states The president and the cab
met debated the proposition long and
earnestly. Secretary Carlisle was in
ravor OF accepting the loan, but doubted
the power of the president and himself |
10 make debt for the government |
without. special authority of congress.
Inc matter was discussed at eyerv cab
met meeting for week or two and |
meantime there was much telegranhic
between Washington |
ana ST. Petersburg relative to the con
altlons on Which the Russian emperor
proposed to make the loan of this enor-
nous sum. Reduced to it's SIMPLEST
Terms, the cars offer was that he
would advance as much gold as the
Onlted states treasury might REQUIRE
Ina Would accept as security therefor
resident Cleveland's personal note
Until such time as congress should con-
'ene ana authorize the issue of bonds.
But the president and his cabinet felt
liter carefully considering the PROPOSE
ION IN all It's aspects, that they could
lot accept it. The state department
neretore, so notified Mr.. White. who in
urn informed M. De Giers that the
american president, while profoundly
'rateIuI Tor the cars kind offer. was
PREVENTED by law from mourning obH-
'atlons OF this kind without the consent
t congress.