The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-02-09
Explanation Of the New Trans
action in Bonds.
IT IS CALLED a GOLD PURCHASE.
Bankers Didn't Bid For Bonds, but
Cleveland Bid For Gold.
Fris.ds Of the President Say the <seid
Purchase wiz Reader N xxsrH s~.-
siea unneceasAry-~rns Geld Reserve
TO Re swsissa - Ners 1haa sloe.~
oo0. Geo.

Washington City. Feb. s--The bond
transaction eoTasunasnated to-day il not.
strictly speaking. . sale Of bonds for
gold. but a purchase OF gold TO be paSst
for In bonds. The issue was not made
under the authority granted By the re-
sumption act. but under .section S.s00
Of the Revised Statutes. which reads
as follows:
The secretary of the treasury may
purchase cain with any If the bonds or
notes OF the United States authorized
by law. al such rases and uFson sueh
terms as he may deem most advan-
taSsous 20 the public interests
The contract was made with Aagnsg
Belmont a Co. cf New York. ON behale
of N. N. Rothsehiid q sons. of I.nn-
don. and themselves. aud r +. ssrrgau
4 Co.. af New York. ON behalf Of j. s.
Morgan q Co. az I<ondon. and tasexsa-
selves. and provides for the delivery tn
the United States 3.;.oe.aao ounces of
standard gold CON OF the United states.
10 be paid for in United states 4 nars
cent bonds. A large number OF other
hanks and nnansiai institutions are iia-
terested IN the. TRANSACTION. but their
names are not mentioned in the con-
know In whaR proportions the various
parties arc 10 furnish the gold coins or
receive the honfS. as this Is a matter
for arrangement isalwesaa themselves.
BY the terms OF the contract tho
parties are To bear all the expense o1
bringing the gold from ahTuad.
Another stipulation Of great import.
ance Is that Morgan & Belmont agrees
to exert all their financial strength and
influence. and that OF their associates
at home ana abroad. to protect the
United States against Withdrawals of
gold pending The conplete performance
OF the contract. No bonds are TO be de-,
livered except In payment OF gold
actually delivered.
Those who are In a position To know
the presidents VIEWS on the subject.
give Il as their upfnsun that the issua
will 50 far restore psiA1ic confidence ae
home and abroad that any other issues
will be unnecessary. as least until the
meeting Of the next congress In Dcceurf.
ber IL. fowever. Il should bccoma
necessary. the PRESIDENT WIN act a.
promptly ~ may be necessary to mo-
teot the public credit. It u cDnfldentiy
expected by the president that thio L.
sue will render an extra sesxium uf con.
gress wholly unnecessary.
Ii Is understood that the gold called
for by the terms Of today's agxeement
viii be shipped to the treasury departs
ment at the earliest day practicable.
The agreement. on the part Of Morgan
& Belmont 10 use their best endeavors
TO prevent gold from being withdrawn
from the treasury, was underwood tn
mean that no part OF the gold bar-
gained for should either directly o. in>
directly be taken from the treasury.
and therefore It Is fully believed that
the reserve will be augmented by the
full amount Of gold purchased.
Today's treasury statement: Avagl-
able cash balance, $l4e.695.57i: gold re-
serve, s42. .7ss. .o6o