The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-07-11
BEEN KEPT A SECRET
Offer Of a Big Loan to the President
By the Gar Of Russia.
HE COULD NOT ACCEPT 1T
The Emperor Stood Ready to Hand
Over S5o.ooo.ooo in Gold at a
Nominal Rate of Interest for
an Indefinite Period.

ury and the action past and probable
OF the Morgan-Rothschilds bond syn
dicate brought to light to-day the fact
that Car Alexander Ill. of Russia Of
fered to loan the United States all the
gold necessary to maintain the re-
serve at any figure desired.
The friendly tender was declined by
President Cleveland because. after sew
eral weeks deliberation and tele-
graphic correspondence between WASH
ington and st. Petersburg, II was de-
cided that the president had no au-
thority to issue bonds or otherwise in
cur indebtedness on behalf of the gov
ernment. Since then the power Of the
president and secretary Of the treas
ury to issue bonds has been deter
mined. and IL the offer were repeated
by the Russian ruler 1t might be ac-
cepted.
The story of the proposition made by
the czar and the way 1t 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 1t has reached the public until now.
1t was in May, 1898. that the state de-
partment was surprised by the receipt
Of a communication from Andrew d.
White, then American minister at st.
Petersburg. stating that the car had,
through NJ. de Giers. offered to loan
the president of the United States any
amount Of gold required to carry the
treasury over their pending crisis. Help
was needed at that time. the new ad-
minstratlon had been in power but a
few months and the financial question
was pressing 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 commercial and
financial distress. 1t was in the midst
of such a situation that Secretary of
State Gresham presented at cabinet
meeting the letter he had received from
Minister White. The cars offer Of as
sistance was direct but simple.
Mr.. White stated in his official CON-
munication to the state department
that he had been called upon by NJ. de
| Giers. who said the car had instructed
| him to confer with the American rep
resentative at the court of st. Peters
burg and 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 s50.000,000 or as
much more as might be desired. at a
| nominal rate of interest and for an in
| definite period. The interest indicated
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 1t to the needs
| Of the United States treasury with but
little formality. AS may be supposed,
the letter produced great sensation
| in the cabinet. The president was
much affected by the evidence of es-
teen on the part of so powerful a per-
sonage as the autocrat of all the Rus
sias. The czar intended his tender Of
| financial help as personal compliment
to the president of the United States.
The president and the cabinet de-
bated the proposition long and earnest
ly. Secretary Carlisle was in favor OF
accepting the loan. but doubted the
power Of the president and himself to
make debts for the government withou,
special authority of congress. The mat.
ter was discussed at every cabinet
meeting for week or two. and mean
time there was much telegraphic cor
respondence between Washington and
ST. Petersburg relative to the condi.
tions on which the Russian emperor
proposed to make the loan of this enor.
nous sum. Reduced to its simplest
| arf. ha he
would advance as much gold as the
United States treasury might require
and would accept as security therefor
President Cleveland's personal note
until such time as congress should con
vene and authorize the issue of bonds
But President Cleveland and his cabi
net felt, after carefully considering the
proposition in all its aspects, that they
could not accept II. The state depart
ment, therefore, so notified Mr.. White
who, in turn. informed NJ. De Gier.
that the American president. while pro
foundly grateful for the czar's kind
offer. was prevented by law from in
curing obligations of this kind withou
the consent OF congress.
The fact that Car Alexander wa.
able to make a proposition OF this kint
is not surprising. The exchequer o.
the empire is absolutely under his con
troll. Then. too. all of the gold minei
in the Russian territory belong to til,
crown and the product is the propert!
of the royal family. 1t is not improb
able that when the arrangement will
the Morgan-Rothschild syndicate shall
| 4, he n
ply to the Russians for loan. shoul,
one be necessary.
| Inclined to Doubt II.