The Providence news. (Providence [R.I.]) 1891-1906, 1895-02-14
FOR BANKERS.
Bonds Said to Be Marketing
In London at 1l21-2.
Text Of Contract About Which There
Has Been Much Criticism.

WAsHrNGToN, Feb. IA. The senate be-
Gon it's session yesterday with spirited
discussion OF the financial question. Mr..
Villas (Dem., Wis., brought on the finan-
cial discussion by offering a bill granting
20 the president the authority he has re-
+ Qpested In his recent message for issuing
per cent gold bonds payable in gold.
Mr.. Sherman tRep.. % offered a substi-
tute to the silver bill reported Tuesday
providing for gold bonds and temporary
gold certificates. The two Colorado sena-
tors, Messrs Teller and Wolcott, called
attention TO the fact that the syndicate CT
bankers who had secured control of these
bonds were now marketing them in Lon
don at lie11, making u net profit of per
cont at the outset.
The debate brought out frequent refer
cnces to the contract between the treasury
department. and the bankers, and as q re-
suit, Mr.. Aldrich (Rep, X. ID offered
resolution calling on the president for
copy OF the contract, which was shortly
afterward furnished 60 the senate.
Text of Contract.
This agreement, entered into this eighth
day OF February, 1886. between the secretary
Of the treasury of the United States Of
the first part, and Messrs. August Belmont AZ
Co. OF New York, on behalf of Messrs. N. M.
Rofhschild a. Sons Of London, Eng, and them
selves, and Messrs J. p. Morgan a. Co. of Lon
don and themselves, parties of the second part.
Witnesseth:
Whereas, IL is provided by the revised
statutes Of the United States (seotion 37OO) that
the secretary of the treasury may purchase
coin with any Of the bonds or notes OF the
: United States authorized by Jaw, at such
rates and upon such terms as he may deem
advantageous to the public interest; and
secretary OF the treasury now deems that an
emergency exists in which the public interests
require that, as hereinafter provided, coin
shall be purchased with the bonds of the
United States or the description hereinafter
mentioned authorized 70 be issued under the
act entitled IAN act TO provide for the resump-
tion of specie payments" approved Jan. IA.
1875 being bonds of the United States de-
scribed In an act of congress approved july IA
187c, entitled "An act To authorize the refund
1ng of the national debt"
3 Now, therefore, the said parties of the second
part hereby agree TO sell and deliver TO the
United States $500 900 ounces Of standard gold
coin OF the United States at the rate OF .s0i4l
per ounce, payable in United States per cent
oQyear coupon or registered bonds, said bonds
to be dated Feb. /. 1895. and payable at the
pleasure Of the United States after 10 years
from date, issued under the acts Of congress OF
July H. 1870; Jan. 20. 1871, and Jan. IA. 1875,
ennum, paysbie quarterly.
Details of Conditions.
Virst-Such purchase and sale of gold coin
being made on the following conditions
al At least one half Of all coin deliverable
hereinunder shall be obtained in and shipped
from Europe, but the shipments shall not be
required to exceed 100000 ounces per month,
unless the parties OF the second part shall con-
sent thereto.
"a - - .~.G4t
subSfeasuries or at any other legal depository
Of the United States.
CD All gold coins delivered shall be secured
ON the basis Of Is $40 grains of standard gold
per dollar, IL within limit OF tolerance.
"a Bonds delivered under this contract are
90 be delivered free of accrued interest; which
IS TO be assumed and paid by the parties of the
second part at the time OF their delivery to
them.
Sccond--Should the secretary Of the treas
ury desire to offer or sell any OF the bonds of
the United States ON or before Oct. /, 1895, he
ohall offer the same to the parties of the Sec
ond part but thereafter he shall be free from
every such obligation TO the parties OF the Sec
ond part.
Third-The secretary OF the treasury re-
serves the right, within 10 days of the date
hereof, in case he shall receive authority from
congress therefor, TO substitute any bonds of
the United States bearing per cent interest.
specifically payable in United States gold coin
Of the present weight and fneness, for the
bonds herein alluded to, such 3 per cent bonds
20 be accepted by the parties OF the second part
~ par. l. e., at sls.6oi65 per ounce Of standard
gold.
Fourth--No bonds shall be delivered 70 the
parties OF the second part, or either of them,
except in payment for coin from time to time
received hereunder, whereupon the secretary
Of the treasury OF the United States shall and
will deliver the bonds as herein provided at
such places as shall be designated by the par
ties OF the second part W expense Of do
livery out of the United ates shall be as
pumed and paid by the parties OF the second
part
Fifth-In consideration of the purchase Of
such coin, the parties Of the second part and
their associates hereunder assume and will bear
all the expense and inevitable loss of bringing
gold from Europe hereunder, and, as far as lies
n their power, will exert all financial influ-
ence and viii make all legitimate efforts TO
protect the treasury Of the United States
against Withdrawals OF gold pending the COM
Dlete performances Of this contract.
In witness whereof the parties hereto have
oet their hands, In five parts, Feb. s, 1896.
J. q. CARLISLE Secretary Of the Treasury.
August Belmont &c Co. on behalf of Messrs
S NJ. Rothschid g. Sons, London, and them
selves.
j. p. Morgan a. Co, on behalf Of Messrs j. s.
Morgan & Co.. London, and themselves.
Attest: W. f. Curtis, Francis Lynd Stetson
In Favor of Gold Bonds.
Mr.. Wilson, chairman of the ways and
means committee, yesterday reported to
the house the joint resolution agreed upon
in committee yesterday, authorizing the
issuance Of 80-year 3 per cent gold bond
The report accompanying the resolution
includes copy Of the presidents recent
message to congress upon the subject, and
nlso copy Of the contract made by the
treasury department with the European
syndicate for the purchase Of the new
bonds.
The report says that the committee has
had the benefit Of conference with the
secretary Of the treasury, who exhibited
the original contract entered into by him
self on Feb. y. and explained its details
The report sets forth the main points of
the contract and states that the object OF
the joint resolution is to authorize the