Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-02-19
THE RECENT bond SALE.
Necessity for II. ~ shown by Mr.
GRAY. in the senate.


WASHINGTON, ID. c.. February IS
\ statement prepared IN the Treasury
department on the condition of tho gold
reserve in the Treasury and the Noes
sity for the recent bond sale 20 the l"l-
mCnt-MOrgan syndicate was made puil'c
property to-day in he senate ny Mr..
Cray, OF Delaware. In his remarks to tie
Senate he made use Of some flg lres. but
did not burden the Senate hy reading
all the facts The statement a. hold by
him ia his hama. sets forth tia- IN Eel
ruary "a there was m the treasury: Gold
bullion. :43.@3S. 500. gold coin. &i.o2).ai';
gold certificates. $3.50. This lelt Of net
coin and bullion only y35.j1n.ilG, gold
certificates being I'm circulation against
the remainder. OF the coin only S9.1oo5;i
WAS in New York. whore alone redemption
OF United States notes could be made III
the East 1t was on Wednes lay. Janlary
50th that Sub-Trcasurer Jordan, at New
York. telephoncl the Treasury mere that
"he thought he could hold out until Sttur-
day" OF. IN other words If The Sl,'@eD
in gold coin was withdrawn. as then
seemed probable, The Government would
have to decline redecming United States
notes and Treasury note. in gold
From December ], ls9i, 10 February "a
the Withdrawals of gold amounted 70 $,o,
1S5.3u2. OF which only SG.Aj235S WIS cX-
ported, leaving Si3.W@p' boarded; or in
other words. as the statement publishes
1t, the citizens Of the United States had
lost faith in the ability of the Govern
mcnt to continue to pay gold for its
notes, and run on the Treasury had
cor mcnCed.'
1t was in this condition of affairs that
the Morgan-B Belmont agreement was en-
int h.. Treasury
officers tried to get reduction of the
interest, but without success.
The actual figures paid 10y the syndicate
for the bonds are stated to be $loi 1916 or
II shade below the 2 3-i per cent. interest
sale. The difference between the figures
at which the Treasury tried TO sell and
did sell is about $3,0Oo,O0o. but out Of this
must be deducted the expense Of con-
trolling the exchange market.
computation made in official circles
for the information Of several senators
shows that the Belmont Morgan contract
as agreed upon, will yield the syndicate
more than 10000 in the difference in the
value Of ounce gold and gold coin of the
standard weight coming within the limit
Of tolerance.
THE GOLD RAIDS.
on January Il, 1895, the first indications
of general withdrawal of gold for the
purpose of boarding in this country were
, noticed. They Increased rapidly, culmi-
mating on the 26;h Of January in total
Withdrawals Of s7,l5G0i6 on that day ON
the 2Nth OF January the first message
OF the President on the urgency of the
situation was presented to Congress. on
that day over four millions were with
/ drawn. on the following day-January
2yth-Over three millions were withdrawn.
and, owing TO the failure of Congress To
act. or apparently to appreciate the situa-
ton. the Withdrawals rose on. the 5Oth
Of January TO nearly four millions of dol
lars ON the evening of that day negOtia-
TONS were taken up III New YORK, anu
the first publication in the newspapers
that the government was about TO under
/ take something appeared. and on the
morning of the 3lst OF January the with
drawaLs dropped to $2,3i9.92O
Further publication on the lst Of Febru-
AIRY affected the situation so that only
81. i5i SO were withdrawn. and on the an
nouncement of the newspapers (Which
however. was not true). that the nesotia-
tions had been satisfactorily completed,
the Withdrawals practically ceased. ana
about one million eight hundred tnou-
sand dollars were returned TO the Trea-
sury. The total Withdrawals on February
"a were only 81. .3S9. The delay. however.
in making public the announcement had
created some uneasiness, and on the nftn
the Withdrawals rose 10 s3so,3C2 and on
the report OF hitch in the
negotiations the Withdrawals rose
on the following day TO over seven hun
dred and twenty nine thousand dollars.
Messrs. Belmont and Morgan. however.
came TO Washington. and the papers on
the morning of February eth announced
that The negotiations had not been broken
OFF. and the Withdrawals fell to s35l,.
O.n. and on the day following, the sth OF
February the contract was signed. and
the second message Of the President sent
10 Congress. the Withdrawals on the da,
amounting 10 H15.l0i and on the four
succeeding days as follows. February 9Th,
s2s,. 300 February 1lth. Sll9.3i0; February
18th s27 COS February 18th. S55.jl0
COLLECTING GOLD.
From early in the year every effort had
been made 10 gather gold coin and collect
n at New York and Boston, the principa;
roint of withdrawal for shipment abroad.
but ON the "a OF February all the gold
coin which could be collected with safety