The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1895-07-18
RUSSlA'S FRIENDLY OFFER.
1t Was a Tender of All the Gold Nee.
essary to Maintain the Reserve.

II was d lender OF All the Gold Nee
essary to Maintain the Reserve.
Chicago, July ia special from
Washington to the Post says:
Discussion of the gold reserve in the
treasury and action, past and prob
able, of the Morgan Rothschild bond
syndicate, brought to light today the
fact that Gar Alexander III of Russia
offered to loan the United States all
the gold necessary to maintain the re-
serve at any figure desired. The friend
ly tender was declined by President
Cleveland because, after several weeks
OF elaboration and telegraphic CORE
spondence between Washington and
st. Petersburg, it was decided the
president had no authority to issue
bonds or otherwise incur indebtedness
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
ruler it might be accepted.
The story of the proposition by the
car, and the way it 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 it had up to this time reached the
public.
1t was some time in May, 1898, that
the state department was surprised by
the receipt Of a communication from
A. ID. White, then American minister
at st. Petersburg, stating that the car
had, through NJ. de Giers, offered to
loan to the United States any amount
of gold required to carry the treasury
over its impending crisis. Help was
needed at that time, the new admin
istration had been in power only few
months, and the financial question was
pressing Oh Mr.. Cleveland for solution.
The Wilson bill had been framed, but
not passed, and the business of the
country was suffering from the depres-
sion which later grew into a CONNER
cial panic. The gold reserve was be-
ing depleted rapidly by the monthly
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 it's gold The country was clamOr
ing for relief, and the PRESENT was
considering the advisability of calling
congress together i'll extra session,
which he did subsequently, to legislate
on the subject and to repeal the Sher-
man law.
1t was in the midst of such situa-
ton that Secretary Gresham presented
at cabinet meeting one morning the
letter he had received from Mr.. White.
The czar's offer of assistance was di
rect but simple. Mr.. White stated in
his official communication that he had
been called upon by M. de Giers, who
said the car had instructed him to
confer with the American minister at
the court of st. Petersburg, and to in
form him that the czar stood ready to
make personal loan to the president
of gold to the amount of $4,000, 900,
or as much more as might be desired,
at nominal rate of interest, and for
an indefinite period. The interest in
dictated was a fraction more than per
cent. Nothing was said about secur-
| ity, and it was evident that Alexander
III believed that the president could
take the money and apply it to the
needs of the treasury with but little
formality, and that he had the power
to do So 1t was generous manifes-
tation of the good will of the Russian
sovereign toward the United States.