The herald., 1895-07-11
CZAR'S GOLDEN HOARD
Offered His Yellow Metal
to Cleveland
THE PROPOSITION LEAKS OUT
He Was a Friend in the Hour
of Need
A NOTE WOULD SUFFICE HIM
An Offer Of Fifty Millions Gratefully
Declined
II Was Declined on Account Of Legal
Objections
After Having Been Religlously Kept Secret
for Two Years the Generous Proffer
of Gar AIexander Recomes
Public Property
An Offer Of Fifty Millions Gratefully
Declined
II Was Declined on Account of Legal
Objections
Associated Press Special Wire.

Associated Press Special Wire.
WASHINGTON, July 10.-The news
was made public today that about two
years :ago Gear Alexander OF Russia,
learning that the United States was short
Of gold, offered to lend this government
all the gold it wanted. As at that time
no law existed authorizing the issuing Of
bonds as security for such loan. Presi-
dent Cleveland was forced to decline the
offer.
/ CHICAGO, July 10.-A special from
Washington to the Post says: The dis
cussion of the gold reserve in the treas
ury. and the action past and probable of
the Morgan Rothschild bond syndicate,
brought to light today the fact that Gear
Alexander III. of Russia had offered to
loan the United States all the gold nec-
essary to maintain the reserve at any
figure desired. The friendly tender was
declined by President Cleveland because,
after several weeks deliberation and tele-
graphic correspondence between Wash
that the president had no authority to
issue bonds or otherwise incur an indebt-
edness on behalf of the government.
Since then the power Of the president and
secretary of the treasury to issue bonds
has been determined. and if the offer
were repeated. by the present Russian rul-
er 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 ono
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.
1t was some time in May. 1893, that the
state department was surprised by the
receipt of a comm munlcation from Andrew
D. White. then American minister at St.
Petersburg, stating tnat the czar had,
through NJ. De Gsirs, offered to loan to
the president of the United States any
amount of golu required to carry the
treasury through the impending crisis.
Help was needed at that time, the pew
administration had been in power but a
few months. and the financial question
tion. 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 COM
mercial and financial panic. The gold
reserve in the treasury was being deplet-
ou steAulIy anu TaPloly " INC montuly
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 clamoring for re-
lief, and the president was considering
the advisability of calling congress to-
gether in an extra session, which he did
subsequently, to legislate on she financial
situation and to repeal the Sherman law.
1t was in the midst of such situation
that Secretary Gresham presented at
cabinet meeting one morning the letter
he received from Minister White. The
czar's offer OF assistance was direct but
simple. Mr.. White stated in his official
communication to the state department
that he had been called upon by M. de
Giers, who said the czar had instructed
him to confer with the American repre-
sentative at the court of St. Petersburg
and to inform him that the czar stood
ready to make personal loan to the
president of gold to the amount of $780,
00O. 900, or as much more as might be de-
sired, at 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 security,
and it was evident that Alexander III be-
lieved that the president could take this
money and apply it to the needs Of the
United States treasury with but little tor
mality and that he had the power to do
so.
1t was generous manifestation of the
good will of the Russian sovereign to-
ward the United States and striking il.
lustration of his desire to assist this
country in any way possible.
AS may be supposed. the letter pro-
duced great sensation in the cabinet.
The president was much affected by this
evidence of the esteem on the part OF so
powerful parsonage as the autocrat of
all the Russias. There was something
besides ths friendly relations Of the two
nations involved in the offer. The czar
intended his tender of financial help as
personal compliment to the president.
The preside ent and his cabinet debated the
proposition long and earnestly. Secfe-
tary Carlisle was in favor OF accepting the
loan, but he doubted the power Of the
the government without special authority
of congress. The matter was discussed at
every cabinet meeting for q week or two.
and meantime there was much telegraph
ic correspondence between Washington
and st. Petersburg relative to the condi-
tions on which the Russian emperor pro-
posed to make the loan of this enorm GUS
sum. 4
After all the explanations had been re-
ceived 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 as
the United States treasury might re- quire
and woul accept as security therefor
President Cleveland's personal notes un-
| til such time as congress should convene
and authorize the issue of bonds.
In short the czar wished ID help the
| United States with loan of $50, 60O, 600
or more and he. was not particular
whether he received any security OF not.
| II was 70 be . personal matter With him