New-York tribune., 1895-02-14

for The payment of the current expenses Of the
Government"
IL seemed to be in its probable effect upon the
greenback other golc-demand currency: IL
the mot 8 redeemed with the proceeds ol me me
sale of these bonds are not 10 DC used III tic
current expenses of the Government there seems
TO be nothing to do with them but merely iock
them up in the Treasury and Keep them tneIe
forever instead OF reissuing them. as required
bv the precent law. The result OF this or course
would be the contraction of the currency 10 that
extent In order TO test the object OF lhe coilL,
mittee on this question. inquiries were hlauV
among the Republican members of the commit
tee and not one of them remembered that such
a sentence attached To the resolution WITH
a vas before the committee. Whether there was
a dark lantern meeting of the Deihocra,iic i
members of the committee afterward ana tnIs
provision added or whether the rather ihhVctn>
sounding proviso slipped through without oosei-
vation is not quite clear. AT any rate Hs US ,
covery created no little sensation among .,ie
members of the committee and on thc I.eIu1i,
can side generally. where u was proHouhceu
deliberate scheme to contract the currency s ns
the amount of S65 600 000 should this amount oi
the gold produced by the sale OF these Dohus M pe
used In redeeming the greenbacks or iteasuiS ,,
notes BY 1t was suggested tha' t'Ie ., eHIu
notes so redeemed could be utilized III w.,
Of National bank notes at the Treasury out tlIs
is NOT looked upon important. because the re-
demptior by the Treasury is but tenpol m Al rs o.
since the banks themselves are required ~ re-
imburse the Treasury at once IN leGai 'e''ue''
THE CONTRACT A SURPRISE
came in the examination of the contract made
ho,u.eer Secretary Carlisle and the bankers who
have agreed to take the bonds at the remarkably
,ou nrice at which they sold. There had
heen great anxiety to see this contract. ana
senator Aldrich hal offered a resolution III 'ne
early part OF the day calling tor H. II nor
natible with the interests OF the government
Thai there was a desire on the part OF the Secie
tary of the Treasury to keep ii from the pupnc
is shown by the extreme secrecy with whlcn II
r2od
that lis contents be not divulged But the pres
sure from the public became so great 'ild, 'ie az
committee was no longer ape 10 TO ivnn ~ the
nress Then for the first time was dscoveleu u
that besides secretly selling 10 TINS syh syhui'a.e az
bonds worth 1193i at 104l2 the Secretal! i.d & Wv, ~
i;barstey given the same syndicate an option on
all bonds that the Government may de5iLe @ 81 80 sd
between this date and october l. isgo ,," e 70
ing of the section Of the contract !" i''"'
this matter is as follows: r.,. des,re
"Shou,d the Secretary Of the Treasury ~ ~uesile
to offer or sell any bonds of the tn'eH ,ia. sbai
on or before the first of October 1879; He ,rd
first offer the same TO the parties OF the seNo .
mart: but thereafter he shall be free from eSrnS
such obligation to the parties oil 'he S0'N
part 49,. ..;,od ,,,uch criti-
To say that this proposition excited muo" ''''
cism puts the case but weakly. ..;o,s Of
"It will make one of the greatest SENSATIONS W
This Congress of sensations" said one OF me
most distinguished Democrats of the country.
.'That Secretary Carlisle should nave IL. nlaae r. "
secret contract to sell bonGs az an "lliiou. ,,b
inc them 70 the highest bidder is pai elUusIi'
but that he should have deliberately 'eu MN, IN
self up for a period of eight iiiortns "'ra ~
agreement which amounts to giving tneSe peoP.e
on ontion on whatever bonds he may choost 1" !"
offer Is most astonishing; it is incomprenehsloie,
Members of the Ways and Means comm, mn ,ee
orc we'll suppIied with "a ts and fgures loI uss
tonorrow when the resolution Tor the sdie "
GOLD bonds comes up in the House; II II az
tonight that resolution VIII De oiousne -, -
morrow to take il up at once. one OF the ihvni
hars of the committee has found ON eXaniihduoH
Thai on the very day that Secretary Cariisle Sc
cretlv agreed with this syndicate TO sell these
bonds at lO4l2. with thirty years 10 run tne
same bonds with the same interest anu na' ,io ,ho
now but twelve years &c rum were seilns ~ ~
omen market at 110la and that conipulattD,n. t,. VI
~ ,aius AT this rate shows that the thirty
wear bonds should have brought lisr4' anu ~ ~
ably would have done so had they peeh oieIeu 20, a !
,1uh,ic sale 10 the highest bidder Ana YET the
SSra,orv not only sold them at 104l2 but actu-
allv agreed to give the same parties an op',ui, p
on all others that ne might nave io' '" "
next eight months .,
The text of the resolution is as follows:
Resolved. by the Senate and House of Represent
atives of the United States In d M hepebv
authorized to issue and dispose OF az no, ess ih
nsr in gold coin bonds of the United states NIL MID
the guaies andsy ba Xef eapproved S July t.
nt5 the exsdeng TeepG9s 81 sas
interest at not exceeding per cent cent coir pier
nun nresena Standard Of Weight and
bonds to be made payable not more 'nah 'h"'E
ProvIded. however that no part of the proceeds
o. une Sas ,h spcb proceeds shall be available for
the payment of the current expenses Vi '''e Wv
ernment
MR. WILSON'S REPORT.
The report accompanying the resolution IN
cludes copy Of the Presidents recent message
TO Congress bearing upon the subject ana also d
conv If the contract made by the Treasury De-
partment with the European syndicate Tor the
purchase of the new bonds. Continuing the re-
port says
The committee has had the benefit OF conference
with the Secretary OF the Treasury who eXhinne,1
to II the original co trac enterel or9nSd n!9 its de-
tails to H.. full and complete COPY Oh s5ia ,bis
eonrae, is hereto re sddf f5em be Of the
Secretary with the parties to this contract eiiectS @
coin of the United States amounting to &,,ll62'o,;
at least one-haf Of which shall De o3'dlneu III b an
eon.tpaeted to issue to the parties furnishing IT,
under authority of the act for the resumption e OF
cent ,hirty-year coin bonds of the United states at
esr when cent aBattS Bat the to Of
has reserved the right il authority be given nm by
DsS States to Sssns @ s ee e OF
principal and interest shall be speGsai s yS
and fneness, said substitution however to be made
within DAY. from on The the Gals nn of 6H
reported to give TO the secresry Of the Treasury
the contract The saving to be effected TO the Coy
ernment. as set forth in the PRESIDENTS message; age
VIII be sssy Per yfap be amount Of 10 should
they run thirty years Il is not believed by the
committee that the issue OF bonds speeifcay paya.
HE in gold will impose any additional burden or
liability upon the Government than If they are
made payable In coin. under its pledge and policy
10 preserve the parity of the coins in the two
metals the saving OF this large amount becomes n
matter Of substantial moment and advantage 10
the Government And the parties 70 take the
bonds are under contract to furnish god com ior
them. it seems no hardship on the Government to
contract to pay them back in the same coin that
they furnish TO II.
TERMS OF THE CONTRACT.
The following is copy Of the contract made by
the Secretary Of the Treasury with the foreign
syndicate:
This agreement entered into this eighth DAY OF
February 1885 between the Secretary OF the Ireas
ury OF the United States, of the first part ana
Messrs. August Belmont & Co., OF New-York.
on behalf Of Messrs. y. NJ Rothschlld SOM. o.