The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-12-04
FOREIGN BANKERS,

In February. therefore, the situation
was exceedingly critical with a reserve
perilOusly low and refusal of congress-
ional aid. Everything indicated that the
end of gold payments by the govern
ment was imminent. The result of prior
bond issues had been exceedingly un-
satisfactory and the large Withdrawals
OF gold Immediately succeeding their
public sale in open market gave rise to
a reasonable suspicion that a large part
of the gold paid into the treasury upon
such sales was promptly drawn out
again by the presentation of United
States notes or treasury notes and found
its way to the banks of those who had
only temporarily parted with it in the
purchase of bonds. In this emergency,
and in view of its surrounding perpleXi-
ty it became entirely apparent to those
upon whom the struggle for safety was
deyolYed not only that our gold reserve
must for the third time in less than
thirteen months. be restored by another
issue and sale of bonds, bearing a rate
of interest and badly suited to the pur-
pose. but that some plan must be
adopted as to their disposition. promis-
ing better results than was realized on
the previous sales. An agreement.
therefore, made with a number of finan-
ciers and bankers whereby it was stip-
ulated that bonds described in the re-
sumption act Of 1875, payable in coin
thirty days after their date bearing in
terest at the rate of 4 per cent per an
mum and amounting to about So. 600 900
should be exchanged for gold receivable
by weight amounting to a little more
than s65,000,000. This gold was to be
delivered in such installments as would
complete its delivery within about six
h. e
and at least one-half of the amount was
to be furnished from abroad. 1t was
| also agreed by those supplying this gold
that during the continuance of the con-
tract they would by every means in
their power protect the government
against gold Withdrawals.
WHAT CONTRACT PROVIDED.
| The contract also provided If congress
would authorize the issue of bonds nav
able by their terms in gold and bearing
! interest at the rate OF 5 per cent per an
mum might within ten days be substi-
tuted at par for the 4 per cent bonds
| described in the agreement. on the
! day this contract was made its terms
were communicated to congress by spec
! ial executive message in which it was
stated that more than SIS 0G0. 600 would
be saved to the government if gold
1 bonds bearing 3 per cent were authoriz-
| ed to be substituted for those mention
! ed in the contract.
The congress having declined to grant
| the necessary authority to secure this
| saving the contract unmodified was car
| rled cut resulting in a gold reserve
amounting 10 Sl10.771. $50 on the Sth dav
! of July, 1895. The performance of this
| contract not only restored the reserve
! but checked for a time the Withdrawals
| OF gold and brought on a period OF re-
| stored confidence. and such peace and
| quiet in business circles were Of the
| greatest possible value 10 every inter
! est that effects our people. I have
never had the slightest misgiving con-
| corning the wisdom or pTopriety OF this
| ARRANGEMENT and am quite willing to
! answer for my full share Of responsible
1 lily for It's promotion.