The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1895-02-14
A PURCHASE OF GOLD.
That Is Want the New Bond
Transaction Is.
THE BEST TERMS PROCURABLE.
In view OF tho Probable Failure OF Con.
greSs to Act-E1pected to Restore Pub
lilo Conference.-The Message which the
President Sent to Congress.

WASHINGTON, Feb. 9.--The bond
transaction just consummated strictly
speaking is not sale of bonds for gold,
but a purchase of gold to be paid for in
bonds. The issue was not made under
the authority granted by the resumption
act, but under section 3,700 of the re-
vised statutes, which reads as follows
1.-THE secretary of the treasury may
purchase coin with any Of the bonds or
notes Of the Udited States, authorized
by law, at such rates and upon such
terms 40 he may deem most advan
tageous to the public interests
The contract was made with August
Belmont 81 Co. of New York, on behalf
Of Messrs. N. M Rothschild g. Sons Of
London, and themselves and J. p. Nor.
gan & Co. Of New York, on behalf of J.
8. Morgan e. Co. of London, and them
selves, and provides for the delivery to
the United States Of $500, 900 ounces of
standard gold coin of the United States,
to be paid for in United States per
cent bonds. A large number of other
banks and financial institutions are in.
terested in the transaction, but their
names are not mentioned in the con.
tract itself The department does not
know in what proportions the various
parties are to furnish the gold coin or
receive the bonds, as this is a matter for
arrangement between themselves.
BY the terms of the contract the par
ties are to bear all the exp ense Of bring.
ing the gold from abro ad, another stip.
ulation Of great Importance is that
Messrs. Morgan and Belmont agree to
exert all their financial strength and in.
fuence, and that their associates at
home and abroad to protect against
Withdrawals Of gold pending complete
performance Of the contract No bonds
are to be delivered except in payment
for gold actually delivered. In view of
the probable failure Of congress, treas.
ury officials declare that these terms are
the best that could be procured with a
coin bond. Those who are in q posi-.
tion to know the presidents views on
the subject give il as his opinion that
this issue will so far restore public con.
fdence at home and abroad that any
other issue will be unnecessary, at least
until the next congress in December.
II, however, it should become necessa.
ry, the president will act as promptly
as may be necessary to protect the pub.
lie credit. 1t is confidently expected by
the president that this issue will
render an extra session of congress
wholly unnecessary. It is stated on
good authority that it was the presi
dents first intention to make the pres
ent loan $l00, 900, 900, and this amount
s., 49, l. Al
London bankers, but after much de
liberation the president concluded thai
the amount just announced would prob
ably answer every purpose as fully as 9
greater amount, and recently he stated
10 Messrs. Morgan and Belmont that as
5000, 900 ounces of gold would place oui
reserve above the $l00, 900, 900 point, he
would not consent to purchase greater
amount.
His decision was reluctantly concur
red in. There is said to be no provision
in the contract obligating the govern
ment to dispose of any future issues tc
Messrs. Morgan and Belmont or to any
one whomsoever, nor was there any spe
ciflio or implied understanding to that
effect. 1t Is understood that the gold
called for by the terms Of the agreement
will be shipped from London at the
earliest day practicable. The agree
ment on the part, Of Messrs, Morgan
and Belmont to use their best endeavorl
to prevent gold from being withdrawn
from the treasury, was understood tC
mean that no part of the gold bargaineC
for should either directly or indirectly
be taken from the treasury and there
fore it is fully believed that the reserv,
will be augmented by the full amour
of gold purchased.
The presidents message reads as fol
lows:
To the Congress Of the United States:
Since my recent communication to tn
congress, calling attention to our flnancia
condition and suggesting Legislation
which deemed essential to our nationa
welfare and credit, the anxiety and appre
hension then existing in business Circl
have continued;
As a precaution therefore against tn
failure Of timely legislative aid through
congressional action, cautious prepara
tions have been pending to employ to tn
best possible advantage, in default OF bet
ter means, such executive authority a
may, without additional legislation,
exercised for the purpose of reinforcip
and maintaining in our treasury an adC
auate and safe gold reserve.