Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-06-16
THE BOND SALES.
Investigation Thereinto by Special
Committee Of the Senate.
sEC'y CARLISLE QUESTIONED.
hssistant-Sccretary Curtis Also Tess
tides I'm Regard to Negotiations
inGs I'm New York Thursday.

WASHINGTON. ID. c., June l5.-Thc
investigation into the recent sales %
bonds by the government was begun to-
day by a special committee OF tho
Senate. OF which Senator Harris Of Ten
nessee. is chairman.
Secretary Carlisle appeared TO answer
questions and explain his communication
regarding the bond-issuc sent 20 tho
Senate just before adjournment.
Senator Vest opened the inquiry by
asking the Secretary how he came To
change his contract with the syndicate
by releasing IL from its obligation TO pur-
chase one half Of the gold for payment
for the bonds abroad.
The Secretary said that the syndlcatc
had the gold. and did not have 70 buy it
I'm this country. II was simply a ques-
tion of requiring it TO ship the gold to
Europe and then return IL. lie wanted
to stop shipments OF gold OF any kind
TO Europe. as each shipment caused un-
easlness IN financial and business circles.
Replying 20 a further question by Mr..
Vest. he said that the protective clause
I'm the contract with the syndicate-thaI
requiring Il 10 do all I'm its power To pro-
tect the gold reserve during the opera
tlon Of its contract-was made at his sus-
gestion.
In this issue no bids were called for,
the negotiation for replenishing the gold
reserve being made with the Morgan
Belmont syndicate alone. This course
was adopted because the eNisency was
great, and there was no time 70 advor-
tise At this time the gold reserve was
reduced TO about SiloOO.00)
THE GRAVES BID.
Mr.. Vest asked how the department.
came 20 award the SijD.0O0 default bid OF
Mr.. Graves on the last Issue 10 the SYM
dicate.
The Secretary replied that the syndi-
cate had made a blanket" bid for all
the bonds. and mad made a deposit 70
cover the transaction. and when Mr.
Graves failed 10 comply with his contract
the bonds were awarded 10 the syndicate.
Mr.. Vost asked II the bonds had not
risen IN value at the time, and II the
syndicate had not made a handsome
profit by taking the Graves allotment.
Secretary Carlisle could not say. Ho
had disposed Of the bonds 10 the best OF
! his ability. In case they had fallen In
value. he thought that he could have
! forced the syndicate 10 take the Graves
allotment
The Secretary argued a number Of
questions. all Of which were covered IN
| his letter TO the Senate. after which the
committee took n recess until 2So p. NJ.
After the recess Administering
of-the-Treasury Curtis took the stand.
Mr.. Vest wanted TO know something
of his connection" with the sale OF ha"is.
and asked him % tell the committee OF
| his visits 10 New York as tho agent OK
| the Treasury"
THE NEGOTIATIONS.
Mr. Curtis said that he went 70 New
| York many times his visits IN connection
| with bond-sales beginning IN January
| 1884, His instructions were verbal, and
! were given him by Secretary Carlisle.
! lie was TO 20 TO New York. look into
| the situation" and see what was going
on. he saw Treasurer Jordan, members
| Of the Clearing House Association, and
number Of outsiders IL was his purpose
10 find II the people OF New York would
subscribe.
As ne remembered. the Negotiations
| with the syndicate began on January 30.
! 1885, Re went 60 New York about this
/ time, with Instructions from the Secre-
| tary 20 see Mr. Belmont 10 talk the
! situation over with him and 10 see II
! gold could be obtained from abroad lie
| did as directed, and during the confer
enca Mr. Belmont showed him communi-
cations from abroad.
Mr. Vest wanted 10 know how II was
that Mr.. Belmont had been making in
/ quires abroad about gold. and at whoss
/ suggestion the Inquiries had been made.
Mr.. Curtis could not say definitely but
| thought that Secretary Carlisle had COM
munlcated with Mr. Belmont on the SUBJ
! ject. As he remembered it the syndi-
cate had offered TO sell some $)0J,OO)
| thirty-year gold bonds abroad az 3 "a per
/ cent. interest. He reported this 10 Secre-
! tary Carlisle, and after consideration. the
! Secretary replied that he could not ac-
/ cept this proposal Soon after ths.
! Messrs Morgan and Belmont came 10
| Washington ON this visit the negotia-
| tions with the syndicate We're closed
The final contract was drawn by Messrs.
! Morgan. Stetson. and himself. IL was
/ then submitted % Secretary Carlisle who,
| with Secretary Oney Ohen Attorney
! GaneraD. made some changes in IL. The
| form OF the contract was suggested by
| the Treasury Department.
HEARINGS IN NEW YORK
The committee will leave here for New
| York on Wednesday nsxt and give public
| hearings at the Hoffman House on Thurs
! day and Friday. on Thursday, Messrs.
| Morgan Belmont, and Stetson will be
! heard. and on Friday Alessrs. jordan
and Stewart. Mr Graves viii also be
given a hearing. II be desires 10 make
| any statement.