The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-02-09
GRABBING FOR GOLD
The United States Makes a Humiliat-
ing Bargain.
BIG BANKERS RULE THE LAND
Bonds to Be Issued In Payment of
a Few Tons of the Yellow Metal
Which Was Produced Here and
CobbIed by Europe.

WASHINGTON, Feb. S.-The bond trans
action consummated to-day, strictly
speaking, is not n sale of bonds for gold
but the purchase of gold to be paid for in
bonds. Tho issue was not made under
authority granted by the resumption act,
but under section 300 of the revised stat
utes,which reacs as follows:
The secretary of the treasury may purchase
coin with any Of the bonds notes OF the
United states authorized by law at such rates
and upon such terms as he may deem most adj
vantageous to the public interests.
a contract was made with August Bel
mont d Co. of New York, on behalf of
Messrs. n. NJ. Rotchchlds q Sons of Lon
don, and themselves and j. Pierpont Nor
gan q Co. of New York, on behalf of j. S.
Morgan d Co. of London, and themselves,
which provides for the delivery to the
United States of 100000 ounces of
standard gold coin of the United States,
TO be paid for in United States 4 per cent.
bonds.
A large number of other banks and
financial institutions are Interested in the
transaction, but the terms arc not men,
toned in the contract itself. The depart
ment does not know in what proportions
various parties are to furnish gold coins
or receive bonds, and it is n matter for ar
rangement between themselves. BY the
terms of the contract. the parties are to
bear all the expense of bringing the gold
from abroad. Another stipulation of great
importance is that Messrs. Morgan and
Belmont agree to exert all their financial
strength and influence, and that of their
associates at home and abroad, to protect
against the Withdrawals of gold pending
the complete performance of the contract.
No bonds are to be delivered except in
payment for gold actually delivered.
Those who are in a position to know
and who express their views on the SUBJ
ject give it as their opinion that the issue
will SO far restore public confidence at
home and abroad that any other issue
will be unnecessary at least until the
meeting of the next congress in Decem-
Der. If, however, 1t should become neces-
sary the president will act as promptly as
may be necessary to protect the public
credit. 1t is confidently expected by the
president that the issue will render an
extra session of congress wholly
unnecessary. The agreement, on the part
of Messrs. Morgan and Belmont to use
the r best endeavors to prevent gold from
being Withdrawn from the treasury, was
understood to mean that no part of tho
gold bargained for should either directly
OF ldheu lFOIl tue treasury,
and therefore it is believed the reserve
will be augmented by the full amount of
gold purchased.
The action of the houses ways and means
committee on the presidents message
cannot be predicted with certainty even
by the members of that body, although
they were engaged in a canvass of views
nearly all day.
1t is understood that bill based on the
presidents message will be submitted to
the committee, but tho attitude of several
members toward 1t is not known. Rep
resentatives Wilson, Turner, Stevens,
Bynum and Tarsney, of the democrats, are
supposed to favor such a measure. Messrs.
Bryan and Wheeler are in the doubtful
column. The republican members of the
committee decline to say what position
they will take on the question, but there
is talk among them of offering counter
proposition, perhaps something in line |
with Reeds plan.