Mississippi leader. (Jackson, Miss.) 1892-1895, 1895-02-26
THE BOND CONTRACT.

The secret bond contract which Sec
rotary Carlisle made with the bankers
is no longer a secret. 1t was divulged
confidentially by the secretary to the
House committee on ways and means,
and then finally, with his consent, re-
ported to the House. 1t is an agree
ment between the secretary of the
treasury, of the first part, and "Messrs.
August Belmont & Co., of New York,
on behalf of Messrs. n. M. Rothchild
& Sons, of London, England, and
themselves, and Messrs. j. p. Morgan
& Co., of New York, on behalf of
Messrs. j. S. Morgan & Co., of London,
and themselves, parties of the second
part" 1t cites section 800 Of
the United States Revised Statutes
as authority for the action of
the secretary in issuing the bonds for
the purchase of coin lat such rates
and upon such terms as he may deem
most advantageous to the public in
terest," and recounts that the secre-
tary "now deems that an emergency
exists" requiring the purchase of coin.
The parties of the second part" agree
to sell and deliver 100000 ounces of
standard gold at the rate of s17.80441
per ounce, payable in United States
four per cent. 30-year coupon or regis
tered bonds" The conditions are
then recited. One-half of the gold is
to be obtained from Europe, but the
shipments shall not be required to be
more than 100000 ounces month. If
the secretary desires to offer any addi-
tional bonds for sale before Oct. /,
1895, ''he shall first offer the same to
the parties of the second part" The
secretary reserved the right, within
ten days, to substitute for the bonds
enumerated 3 per cent. bonds specifi-
cally payable in gold The parties of
the second part" las far as lies in
their power will exert all financial in
fluence and will make all legitimate
efforts to protect the treasury of the
United States against Withdrawals of
gold pending the complete perform
ance of this contract" The rate at
which the bonds were taken was equiv
alent to premium of = per cent. On
the same day the contract was drawn
similar bonds, issued 10 years ago and
thus having Il years to run, were SELL
ing on the market for a premium of
104 per cent. At the same rate these
bonds were worth 1919 per cent. pre-
MUM. The contract is signed by
John G. Carlisle, August Belmont and
j. P. Morgan, and is witnessed by w.
&. Curtis and Francis Lynde Stetson.
Mr.. Curtis is treasury official, and
Mr.. Stetson is or has been until recent
ly, Mr. Cleveland's law partner. All
these facts-frst, the attempt to keep
the terms of the contract secret;
second, the terms themselves, especial
ly the option given the bankers on
any future bond issues before Oct. l,
and the remarkably low price secured;
third, the sale by a secret bargain,
without any attempt to secure bids for
the bonds; fourth, the fact that the
Presidents law partner should have
acted as the attorney of the bankers
all these things have aroused and ex-
asperated the country to a remarkable
degree The attempt in the House to
give the secretary power to substitute
three per cent. bonds specifically pay
able in gold was defeated by vote of
l2O to l67, the Republicans voting two
to one against it and the Democrats
being evenly divided.-The Voice.