The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-07-10
Alexander III Wanted to Save
g. S. Gold Reserve.
Offered to Loan Cleveland Any
Sum in Gold.
A WELL KEPT SECRET.
Tender Was Made During the
Panic Of 1898.
1t Was the Cars Personal
Money He offered.

CHICAGO, July 1O-A special from
Washington to the Post says: Discussion
Of the gold reserve in the treasury and
the action past and probable of the Nor
gan Rothschild bond syndicate, brought
to light today the fact that Gar Alexan-
der III of Russia offered to loan the
United States all the gold necessary to
maintain the reserve at any figure de-
sired.
The friendly tender was declined by
President Cleveland because after sew
eral weeks of consideration and deliber-
alton and telegraphic correspondence
back and forth between Washington and
St Petersburg it was decided that the
president had not the authority to issue
bonds or otherwise incur indebtedness
on behalf of the government.
Since then the power of the president
and the secretary of the treasury to is
sue bonds has been determined and if the
offer were repeated by the present Rus
sian ruler it might be accepted.
The story of the proposition made by
the cZar and the way it was received by
the:president and his advisers was one
of the best kept secrets of the White
House. Although the incident occurred
some two years ago no hint of it has
reached the public until now. It was
some time in May, 1898 that the state de-
pertinent was surprised by the
receipt of communication from
Andrew D. White, then the Amer
ican minister at St. Petersburg,
stating that the czar had through NJ. De
Giers offered to loan to the president of
the United States any amount of gold re-
quired to carry the treasury over the
then pending crisis
help was needed at that time, the
new administration had been in power
but few months and the financial ques-
tiOn was pressing on Mr.. Cleveland for
solution. The Wilson bill had been
framed, but not passed, and the business
of the country was already suffering
from the depression, which later grew
into a commercial ana financial panic,
The gold reserve in the treasury was
being depleted steadily and rapidly by
the monthly purchases of silver bullion
under the Sherman law and the receipts
of gold from customs had fallen off so
that each month saw the treasury drained
of its gold. The country was clamoriug
for relief and the president was con
sidering the advisRbility of calling con-
gress together in an extra session, which
he did subsequently, to legislate on the
financial situation and to repeal the
Sherman law.
1t was in the midst of such a situation
that Secretary Gresham presented at a
cabinet meeting one morning the letter
he had received from Minister White
The cars offer of assistance was direct
but simple. Mr. White stated in his off.
cial communication to the state depart
ment that he had been called upon by
M. De Giers, who said the czar had in
structed him to confer with the Ameri-
can representative at the court of st.
Petersburg and to inform him that the
cZar stood ready to make a personal
loan to the president of the United States
of gold to the amount OF $50,000O0O, or
as much more as might be desired at
nominal rate Of interest and for an in
definite period of time
The interest indicated was a fraction
over per cent. Nothing was said about
security, aud it was evident that Alex
ander Ill believed that the president
could take this money and apply it to
the needs Of the United States treasury
with but little formality and that he had
the power to do SO.
1t was a generous manifestation of the
good will of the Russian sovereign to-
ward the United States and a striking il
lustration of his desire to assist this
country in any way possible As NAV be
supposed the letter produced a great
sensation in the cabinet The president
was much affe cted by this evidence of
esteem on the part of so powerful a per
sonaRe as the autocrat of all Russia
The czar intended his tender of
financial help as a personal COM
pliment to the president of the
United States. The president and
she cabinet debated the proposition
long and earnestly. Secretary Carlisle
was in favor Of accepting the loan, but
he doubted the power of the president
and himself to make debts for the gov
eminent without special authority of
congress.
The matter was discussed at every
cabinet meeting for a week or two and
meantime there was much telegraphiC
correspondence between Washington and
st. Petersburg relative to the condition
on which the Russian emperor proposed
TO make the loan of this enormous sum
After all the explanations had been
received and the details of the Russian
monarch's offer had been laid before the
cabinet, it was evident that the czar was
not bothering himself about the manner
or method of the transaction.
Reduced to its simplest terms the
czar's offer was that he would advance
as much gold aa the United States treas
ury might require and would accent as
security therefor President Cleveland,
personal note until such time as con-
Rress should convene and authorize the
issue of bonds.
It was to be a personal matter with
him and it was plain that he did not
quite understand why the president die
not treat in the same wav, Presiden7
Cleveland and his cabinet felt after care.
fully considering the proposition in Al
tts aspects that they could no