Evening journal., 1895-02-13
Have AGREED ON A PLAN
Ways and Means Committee
Framing a Bond Bill.
THE GOLD PURCHASE CONTRACT.
Secretary Carlisle Says the Government
Made the Bost of a Bad Bargain and
Admits That the 1anlers Made Good
rrnae-not pebnte In the IIau.e.


Made the Best OF had Bargain and
Admits That the 1iankers Made Good |
Trade-Hot Debate IN the House.
WAsHINGrov, Feb. 13.-Tho house com
mitteo on ways and means consumed ono |
more Of tho ten days within which tie |
treasury has an option to make tho now !
bonds payable in gold and made decided |
progress toward an agreement upon a plan |
to be reported TO she house
After being olo@eted for two hours with
Secretary Carlisle tho committee talked
oves the situation, delegated the framing
OF an agreement 60 subcommittee OF
three Democrats and two Republicans,
and late in the afternoon learned that its
subcommittee had dropped partisan differ
ences and formed common ground
Tho resolution reported by tho quintet
at tho last meeting was one TO authorize
the secretary of the treasury TO issue S62,-
100000 ia per cont bonds payable in
gold, with the proviso that mono of the
proceeds shall DO used for current expenses
and the further provision requested by
Secretary Carlisle repeating the law which
requires the government to redeem ma
tional bank notes and requiring banks TO
redeem their notes in the first instance
Inquiry was mado If there was a mi-
nority report, and Mr. Reed said that
there was not although ho believed o
wiser plan would be to provide for inoreas-
ing the revenues. Mr.. Bynum of Indiana
proposed his resolution as a substitute.
Mr.. Wheeler Of Alabama offered q resolu-
tion reeiting that Secretary Carlisle had
admitted that the issue Of gold bonds
would compel all future issues to no made
payable in gold that bimetallism had
been declared to be the policy Of the gov
ernment; that this would bo an abandon
ment Of bimetallism, and therefore declar-
| ing TINT the committee considered it inex-
pedient to adopt the presidents recon-
1 mendatlons.
Mr. Bryan Of Nebraska offered another
resolution recommending that the secre-
tary Of the treasury should pay all obliga-
/ tions Of the government in either gold OF
silver. whichever it was most convenient
| to use.
After a brief discussion the committee
adjourned
Secretary Carlisle Submits the Contract.
Secretary Carlisle came before the COM
mittee and presented typewritten copy
Of the contract which had been called for.
1t was drawn in legal form. covered two
| typawrtten pages and bore the signatures
OF John G. Carlisle. secretary of tho treas
ury; j. Pierpont Morgan. for j. $ Nor
gan Of London; August Belmont, for n.
W. Rothschild, and WAS witnessed by
Francis Lyndo Stetson Of New York, for
merly one OF President Cleyeanda law
partners.
The principal features of the contract
were made known in the presidents mes
sage Upon one point tho secretary par
ticularly enioined the committee to main
tain secrecy, and that was regarding the
dates for making the payments for the
bonds.
lie asked for secrecy. he said, at the re-
quest Of the tlnancers who have agreed 70
take the bonds and because they feared
that bankers would corner the gold Of the
world against them at the time it would
bo needed If it was known and the meth
DDS by which il was to be obtained.
Accordingly tho committee adopted {
resolution pledging its members not 60 re
veal the terms Of the document SO far as u
concerned the payments
Many questions were asked tho score
5 tary which he answered in order giving
the amounts Of all kinds of money in tbs
treasury and such other information no
known.
D When Mr.. Reed asked why the plai
I which he recently proposed in tho hous
as a substitute for the administration bill
z was not a satisfactory measure, the secre
tary proceeded to quote a feature OF tn
j. act Of 1874 which had not been before no
2 ticod in tho financial debates and whie
y seemed to greatly invalidate Mr. Reed
U scheme. This clause binds the treasury {
l. the redemption Of national bank notes b
treasury notes when the holders Of the fol
mer request it, Consequently tho witt
p drawal OF tho groenhaoks into tho troal
Is ury tho secretary argued, would not sto
a the drain of gold upon it, but would gfea
'e ly add another stop to tho process Of ol
D. taining gold. as iinanciors could procm
ie the national bank notes and secure trea
lf ury notes for them.
y Charge Of Uavoritism Denied.
In effect. therefore, tho government
bound to redeem bank notes in gold. 4
obviate this difficulty tho secretary su
H. qosted that tho committee adopt pls
or TO compel the national banks TO mainta
"a an agency for tho redemption OF the
,r- notes and rolioye the treasury OF all bu
be den in the premises
.st There was disposition on the part
certain members TO intimate In their que
tions that the administration had show
favoritism in It's negotiation of a priva
ON contract anu Nub NAt6lAuh was AlANAA
nk asked whether the bonds were not 20
ca sold at a ratio unnecessarily low oonsidC
1r. ing tho prevalent prices in the market
w Secretary Carlisle admitted that Z
un bankers practically had the governmo
at their mercy, and no was obliged 70 9
cep6 the best terms that could DO ma
with them. That hottor terms could hn
ng been secured he denied emphatically,
1 | latinr somewhat in detail the diitere
ME fnanciers with whom Assistant Secreta
nj Curtis had talked on his visit TO N
III. York and those who hail visited Mashir
n. ton
In answer 70 other questions be assul
tho committee of his belief that pl
fire could be devised y stop the outflow
do gold and of his strong belief that the for
ise, coming bond issue would maintain
'ot- gold reserve at its high water mark for $
ind eral months.
After the secretary had departed