The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-07-11

Chicago, July 1O.-A special from
Washington to the Post says:
The discussion of the gold reserve in
the treasury ana the action OF the
Morgan-Rothchild bond syndicate
brought 10 light today the fact that
Car Alexander III, of Russia. offered
to loan the United States all the gold
necessary to maintain the reserve at
any figure desired. The friendly ten
der was declined by President Cleve-
land. because after several weeks de-
liberation and Geographic correspon-
dence between Washington and St.
Petersburg, it was decided that the
president had no authority to issue
bonds or otherwise incur indebtedness
on behalf of the government Since
then the power of the president and
secretary TO issue bonds has been de-
termined and If the offer were repeated
by the present Russian ruler, it might
be accepted.
The story of the Proposition.
The story of the proposition made
by the car and the way it was re-
ceived by the president and his ad-
visers was one of the best-kept secrets
Of the White House. Although the in
cident occurred some two years ago, no
hint of it has reached the public Until
now.
1t was some time in May, 1898, that
the state department was surprised by
the receipt of a communication from
Andrew D. White, then American min
lister at St. Petersburg, stating that
the car had, through Il de Giers,
offered 10 loan TO the president OF the
United States any amount OF gold re-
CURED to carry the treasury over
through the pending crisis. Help was
needed at that time; the new admins
tration had been in power but a few
months, and the financial question was
pressing on Mr.. Cleveland for solution
The Wilson bill had been framed,
but not passed, and the business OF
the country was already suffering from
the depression which later grew into a
commercial and financial panic. The
gold reserve in the treasury was being
depleted steadily and rapidly by the
monthly purchases of silver bullion
under the Sherman law, and the re-
ceIpts of gold from customs had fallen
off, so that each month saw the
treasury drained of its gold. The
country was clamoring for relief and
the president was considering the ad-
visibility of calling Congress together
in an extra session which he did sub
sequently to legislate on the financial
situation and TO repeal the Sherman
law.
Direct but Simple,
Tt was in the midst Of such a. situa-
ton that Secretary of State Gresham
presented at a cabinet meeting one
morning the letter he had received
from Minister White. The cars
offer of assistance was direct but sim
pie. Mr.. White stated in his official
communication to the state department
that he had been called upon by NJ.
de Giers, who said the car had in
structed him to confer with the Amer
lean representative at the court OF St
Petersburg and to inform him that
the car stood ready to make a per.
sonal loan to the president of the
United States of gold to the amount
of $50,O00000, or as much more as might
be desired, at a. nominal rate of in
terest and for an indefinite period The
interest indicated was fraction more
than 2 per cent. Nothing was said
about security. and it was evident
that Alexander III believed that the
president could take this money and
apply it tc the needs of the United
States treasury with but little formal
ity, and that he had the power to do
so.
1t was a generous manifestation OF
the good will Of the Russian sovereign
toward the United States and q strik-
ing illustration Of his desire to as
sist this country in any way possible.
Produced n Sensation.
AS may be supposed. the letter pro-
duced a great sensation in the cab
met. The president was much affected
by this evidence of the esteem on the
as the autocrat of all the Russians.
There was something besides the
friendly relations of the two nations
involved in the offer. The car intend
ed his tender of financial help as per-
sonal compliment to the president OF
the United States. The president and
the cabinet debated the proposition
long and earnestly Secretary of the
Treasury Carlisle was in favor of &C
cepting the loan, but he doubted the
power of the president and himself TO
make debts for the government, with
out special authority of Congress. The
matter was discussed at every cabinet
for a week or two and, mean
time, there was much Geographic cor
respondence between Washington and
St. Petersburg relative to the condi-
IlOQS on WHICH 4nC INiSOldA CuRC4O(
to make the loan of this
sum.
After all the explanations had been
received and the details of the Russian
monarch's offer had been laid before
the cabinet, it was evident that the
car was not bothering himself about
the manner or method of the transac-
ton. Reduced to its simplest terms.
the cars offer was that he would adj
vance as much gold as the United
States treasury might require and
would accept as security therefor,
President Cleveland's personal note
until such time as Congress should
convene and authorize the issue Of
bonds.
Interest Cat No Figure.
In short, the car wished to help The
United States with a loan of SOC, 900 900
or more and he was not particular
whether he received any security or
not 1t was TO be a personal matter