The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-07-11
HELP FROM THE CAR.
He Offered Cleveland All the
Gold He Needed.
TO PROJECT THE RESERVE.
He Wanted TO Loan Ii on the Pre>i-
dents Personal Note. at Low In
tere$t-His Offer Refused.

in~roE Cts 70 the POST says: EBs CtScuS-
sion Of the gold reserve in the treasury.
and the action. past and probable. OF the
Morgan-ROthsch hid syndicate brought TO
light today the fact that the Car Alex
anaar III offered 10 loan the United
States ali the gold necessary TO maintain
the reserve al any figure desired. The
friendly tender vas declined by President
Cleveland because after several weeks
delibeFaticn and correspondence between
Washington city and 81. Petersburg. II
was decided that the president had no aa-
thority 10 issue bonds or otherwise incur
any Indebtedness on behalf OF the govern
ment to q foreign nation. Since then the
power OF the president and the secretary
OF the treasury 10 issue bonds has been
determined. and IL the osfer were repeated
by the present Russian ruler il might be
accepted.
The story OF the proposition made 10y
the car and the way II was received by
the president and his advisers was one OF
the best kept secrets OF the Waite House.
Although the incident occurred some TWO
years ago. no hint OF Il has reached the
public untu now.
1t was some time in May. 1888. that the
state department was surprised by the
recespS OF 4 communication from Andrew
ID. White. then American minister at St.
Petersburg. stating that the ear had
a.
the president OF the United States any
amount ~ gold required 10 carry the
treasury over through the pending crisis.
Help was needed at that time. The new
administra Iioa had been in power but a
feg months. and the financial questions
were pressing on Mr.. Cleveland FOR soiu-
ton. The Wilson bill had been framed
but not passed. ard the business of the
country was already suffering from the
depression which later grew into a COM
mercial and financial panic. The gold
reserve in the treasury was being de-
pietef steadily and rapidly by the month
IL purchases of silver bullion under the
Sherman law. and the receipts of gold
from customs had fallen of so that each
month saw the treasury drained of It's
gold. The country was clamoring for re-
lief. and the president was considering
the aiyisahiiity OF calling congress to-
gether In an extra session, which he did
subsequently, to legislats on the financial
situation and to repeal the Sherman Law.
1t was In the midst of such 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,
out Simple. Mr.. White stated in his official
communication 10 the state department
that he had been called upon by NJ.
De Giers who said the car had instruct
ed him 10 confer with the American rep
resentative at the court of St Petersburg
and TO inform him that the car stood
ready to make = personal loan to the
president of gold TO the amount of So
Odo CO. or as much more as might be de-
sired az a nominal rate OF interest and
for an indefinite period. The interest in
dicated was a fraction more than . per
cent. Nothing was said about secur-
ity. and ii was evident that Alexander
~ 1. 49, r., H.. ..f-
this money and apply II 10 the needs Of
the United States treasury with but little
formality and hat he had the power TO
do SO. II was a generous manifestation
of the good will Of the Russian sovereign
toward the United States. and striking
illustrate of his desire 10 assist this
country in any way possible.
As may be supposed, the letter pro-
duced a great sensation in the cabinet.
The president was much affected by this
evidence of the esteem on the part or so
powerful a parsonage as the autocrat OF
all the Russias. There was something be-
sides the relations OF the two nations In
volved in the offer. The car intended
his tender OF financial help as a personal
compliment TO the president. The presi-
dent and his cabinet debated the PROPOSE
ton long and earnestly. Secretary Car
Isle 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"con-
gress. The matter was discussed at every
cabinet meeting for a week or two and
meantime there was much telegraphic
correspondence between Washington City
and ST. Petersburg relative TO the condi.
tons on which the Russian emperor pro-
posed 20 make the loan of this enormous
sum.
After all the explanations had been re-
ceved and the details OF the Russian
monarch's offer had been laid before the
cabinet II was evident that the car was
not bothering himself about the manner or
method of the transaction. Reduced 10
its simplest terms, the cars offer was
that he would advance as much gold as
the United States treasury might require
and would accept as security therefor Mr.
Cleveland's personal note until such time
as congress should convene and authorize
the issue OF bonds.
In short, the car wished 10 help the
United States with a loan OF So Ocoo 900 or
more. and he was not particular whether
he received any security or not II was
10 be a personal matter with him. and u
was plain that he did not quite under
stand why the president did not treat il in
the same way. one IA ton needed money
and the ruler Of friendly country pro-
posed 70 lend the chief executive OF the
distressed people money 70 help them. II
was just a friendly act. requiring. IN the
opinion OF the car. no red tape or circum-
l0cutory oflCtaisnn- But President Cleve
land and his cabinet felt after carefully
considering the proposition in all is
asnnetS that they could not accep. =.
The state department. therefore. so moth
fed Mr. White. who IN turn Informed NJ.
De Glers that TIRE American president.
while profoundly grateful for the cars
KIND OFFER was prevented BY law from IN
curing obligations 81 this kind without
the consent ~ congress The ma i0rfty OF
the cabinet was in favor 81 taking the
cars loan. and the president looked kind
" UPON the proposition There s. no doubt
bit that ro- the legal objections raised nv
one ~ the lawyers in the cabinet the loan
would have bean accepted. and one prob
ahia result would have been the reduction
I'm the rate % interest on large loans. es-
peciallv % nations.
The fact that car Alexander was abe
% make a proposition II this kind is not
surpriSing TIE exCheuuer 81 the empire
So Absolutely under his control. Then. zoo,
All Of me gold mines ia the Russian terri
forv reI9rz 20 the crown. and the product
* tho -,ronerty % the royal family. Alex
a~ster IT was always very friendly 70 the
United states IS shown by his q spaicn
of a Russian feet n New York during the
civil var 70 prevent England or France
esn7ugsu, the cause OF the Confederacy.
:. x not improbable that when the ar
raurs~ent wien the MorEan-Rothschtld
syndicate shall have expired. the govern
rrent NAY ARMY 20 the Russians for loan.
should one Re necessary Alexander Is not
on the throne now. bat e Is said that En-
ra~er Nicholas - quite as ardent an ad-
Enirer of The Americans as vas Ms father.
Washington city. Julv l0.-Offici as A.
he stats 9rparfTaent ard ahoIE, h treas-
u~v dera r-nneat who should b IN a po-