St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-07-11
ALEXANDER III. SAID TO HAVE
TENDERED MILLIONS TO
AMERICA.
HAPPENED TWO YEARS AGO.
HIS MAJESTY WOULD HAVE
BEEN PLEASED TO RELIEVE
THE STRAIN.
HIS OFFER WELL CONSIDERED.
Still Possible That the Next Sup
ply of Gold Needed Will Come
From Russia.

CHICAGO, July 10.-A special from
Washington to the Post says dis
cussion of the gold reserve in the
treasury and the account of the
Morgan-Rothschild bond syndicate
brought to light today the fact that
Gar Alexander III. of Russia Of
fered to loan the United States all
the gold necessary to retain the re-
serve at any figure desired. The
friendly tender was declined by
President Cleveland because, after
several weeks of consideration and
deliberation, and Geographic CORE
Spondence 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 be-
half of the government Since then
the power Of the president and the
secretary of the treasury to issue
bonds has been determined, and if
the offer were repeated by the Rus
sian ruler it might be accepted. The
story OF the proposition made by the
car, and the way it was received
by the president and his advisers,
was kept secret at the White house.
Although the incident occurred some
two years ago, no hint of it has
reached the public until now.
1t was some time in May, 1893 that
the state department was surprised by
the receipt of a communication from
Andrew D. White, then American min
lister at st. Petersburg, stating that
the car had, through NJ. de Giers,
offered to loan to the president of the
Uulted States any amount of gold re-
quired to carry the treasury through
the impending crisis. Help was needed
at that time. The new administration
had been in power but a few months
and the financial question was pressing
on Mr.. Cleveland for solution.
THINGS WE'RE CRITICAL THEN.
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 financial panic. The gold
reserve in the treasury was being de-
pleted steadily and rapidly by the
monthly purchase of silver bullion
under the Sherman law, and the re-
ceiptS of gold from customs had fallen
off so that each month saw the treas
ury drained of it's gold The country
was clamoring for relief and the presi-
dent was considering the advisability
of calling congress together in 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 stu
alton that Secretary of State 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 official COM
| municatio to the state department
that he had been called upon by M. de
| Giers, who said the car had instructed
him to confer with the American rep
resentative at the court of st. Peters
| burg and to inform him that the car
stood ready to make a personal loan
| to the president of the United States
of gold to the amount of So, coo, 600 or as
| much as might be desired, at a nomina
! rate of interest and for an indefinite
period of time. The interest indicated
was a fraction more than two per cent
| Nothing was said about security, ant
! 1t was evident that Alexander III. be
lieved the president could take this
mony and apply it to the needs of tt
United States treasury with but little
| formality, and that he had the power
to do so.
HE CONTROLS THE CASH.
The fact that Car Alexander wa!
able to make a proposition of this kim
is not surprising. The exchequer of tn,
empire is absolutely under his control
Then, too. all of the gold mines O.
Russia territory belong to the crown
and the product is the property of tn,
royal family. Alexander IL was al
ways very friendly to the United
States, as shown by his dispatch of
Russian fest to New York during tn,
civil war to prevent England or Franc
espousing the cause of the Confederacy
1t is not improbable that when tn
arrangements with the Morgan-Roth
schilds syndicate shall have expired
the government may apply to the Rus
slams for a loan, should one be neces
Sary. Alexander is not on the thron
now, but it is said that Emperor Mich