The record-union., 1896-06-10

indicated the existence of a feeling of
uneaSiness in the public mind, while
foreign exchange was almost constantly
at or near rate which made it neces-
sary to export gold to pay bills at their
maturity, and consequently withdraw
ais for such payments were daily threat
ened, and as the season was then ap
preaching when in the usual course of
trade and financial operations large i'm
pCrtations nearly always occur it was
considered absolutely necessary for the
maintenance of public credit and the
continued execution of the monetary
policy declared by Congress in the Act
OF July IA, 1890, and repealed in the
Act of November l. 1898, to resort again
to an issue of bonds.
THE result of this proposition was
that 1856 bids were received, amounting
to $17s,S36,050, nearly all of which
We're at rates which would yield to the
investors 3 per cent. or less upon the
sums awarded to them. One bid for the
whole sum of $4,000 600, all or none
upon the basis of 2.S1S per cent being
the most advantageous offer for the
Government that was made, was ac-
cepted, and the proceeds of the sale,
SOS, ,53S, 800 were paid into the Treas
ury according to the terms of sale.
The payments into the Treasury on
account of this sale were not entirely
completed until after the 1st day of De-
cember, 1894, and it soon became evil
Gent that the transaction had not been
effectual to cope with the Withdrawals
OF gold. In that month the withdraw
ais amounted to S31 .907 ,221, and dur
ing the next January, 1889 they
amounted to $45 III OBS, and they con-
tinued without dimunition until the
early days of February, until on the Sth
Of that month the reserve had been re-
duced to S41, $40, 1S1, and several mill
lions more had been demanded, part
of which was taken cut and afterward
returned to the Treasury on account of
the temporary restoration of confidence
re esulting from the fact that it became
generally known to the public that
measures We're about to be taken for
the replenishment of the reserve.
These large Withdrawals were due
almost entirely, SO far as could be as
certained, to a feeling of apprehension
in the public mind, especially among
which increased in intensity from day
to day until it reached the proportions
of a panic in the financial centers, and
it was evident to all who were familiar
with the situation that unless effectual
steps were promptly taken to check
the growing distrust the Government
would be compelled within a few days
to suspend payment and drop to a
silver and paper standard.
More than $43. 100000 Of the amount
Withdrawn during the brief period last
mentioned was not demanded for ex-
port, but was taken out by people who
had become seriously alarmed on ac-
count of the critical condition of the
treasury in its relations to the currency
of the country The situation was so
grave that the attention of Congress
was called to this subject by a special
message by the President of the United
States on the 2Sth day of January,
1885,
Carlisle quotes from President Cleve-
lands message, in which he recon-
mended that the Secretary of the Treas
ury should be authorized 10 issue suffi-
cient bonds to maintain the gold re-
serve, and to redeerl and cancel the
legal and Treasury notes
Congress- Carlisle says, failed to
pass a measure for the relief of the
treasury, or to take any action calcu-
lated to allay the serious apprehensions
then existing in the public mind, and
consequently a contract was entered
into by the Secretary of the Treasury
on the Sth day of February, 1895, with
August Belmont e Co of New York on
behalf of themselves and Messrs. n. NJ.
Rothschild & Sons of London, and J. P
Morgan &, Co. of New York on behalf
of themselves and j. S. Morgan &, Co
of London, for the purchase of $780,
GOO ounces of standard gold, at the price
of S17.S441 per ounce, to be paid by the
delivery of United States bonds hav-
ing thirty years to run, and bearing
per cent. interest, and the gold to be
deposited at the United States sub
treasures.
by the terms of this contract not less
than one-half of the gold was to be
procured abroad, and the parties with
whom it was made stipulated that they
would, as far as lay in their power, ex-
ert all influence and make all legitimate