Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1896-06-20
Mr.. CARLISLE AND BONDS
Secretary Appears Before the
Committee.
Tells the story why and How the
Late Bonds were Essuea-0ther In
tere=ting Testimony.


the senate committee appointed 10 in,
vesriga,e the recent bond issue. The
hearing was held in the rooms of the
senate committee on finance. Senators
Harris. Wsitham. Jones and Plat being
present. Chairman Harris explained
that the committee had decided 10 take
all the testimony under oath, and did
not wish TO make determinations.
Nj Carlisle responded tina, he ex-
Pected and desired TO DC pa; under oath
Mr. Vest began the examinations,
asking for fuller explanation OF The
hrst bond contract with the Morgan syn
ticate that had been given in Mr.. Car
isles written statement.
my main purpose said Secretary
Carlisle, was 10 prevent shipments of
gold from this country Mr.. YES,
asked who made ,he first suggestion a
TO the protective clause in the bond con
tract with the Morgan syndicate. The
secretary answered TIA, The firs, draft
va made in his private ofiee and then
taken 10 an adjoining room ana shown
TO Mr. Morgan and Mr. Francis Lynde
S;etson. after which some changes Were
made This vas the Mr.. Sietson. the
Secretary explained in response 10 an
inquiry. Who had been Law partner Of
the president
Nj Vest asked Why the contract had
been given 10 The syndicate. 10 which
Mr.. Carlisle replied with lengthy expla
nation Of the great emergency existing.
which would not Perni, a DELAY for the
usual formation Of bond sale .
You never had negotiations wil
any other bankers outside Of the. Nor
gan syndicz:e'" asked Mr.. Vest
There was some inquiry, 5as We ~.
go,ia;ions we're opened said els s1ese-
tary Carlisle went on taNxpamEn sal
the presiden; was KEEP, aPPrss os ali
phases OF she negotiations,
To Vests question as 10 Wny ,he pub.
tic bond sale was resorted to al a later
date, when an earlier sale AS o. private
contract, Mr. Carlisle said the mrs, move
was due entirely 10 emergencies exist.
ing and io disturbing reports which we're
wi,hou, shadow Of foundation. and
that The government had long contem-
plated bond issue
Vests questions turned TO Graves
bid. which was rejected, the amount Of
Caves award, S4,soo,Ooo of bonds, being
given to the Morgan syndicate The
senator asked why. after Graves bid was
rejected. the government did not re-.
ceive the benefit of the rise which had
occurred IN the price Of bonds instead Of
the benefit going to the Morgan Eyndi-
cate under their blanket bid. ~ Car
isle said this was a matter q etisiOn.
and in his opinion Gravsss @E ass a
auliiy, after which Morgan's @
uas the next highest. took d m
His action. he said. = a. taken zftex esi.
suI,ing the lar Offices q the goS@rns
ment. He would have aiken the sanas
course if the price of bonds had fallen.
Is It no, fact" asked Vest. that be-
cause the syndicate had carried out the
protective clause you were inclined to
favor ihema"
No, ia the least declared The secre-
iary. smphaiiealIv, i am not conscious
Of snY sueh feeling
"Ba, you and the president we're
pleased Is IN the manner 10 which the
protective claus had been carried gu, ?"
inquired Mr. Yes,
Yes. but am not conscious Of The
remoiesi feeling in favor Of the result"
Il suppose you nevet contemplated
paying in silver: ," inquired Vest
The secretary replied that the present
policy Of paying in gold had been fol
lowed . long that he did not consider
j, expedten, to depart from !; IN times Of
emergency
Plat inquired A. 70 earrea. reports
tina, Carlisle al one slime had eon,em.
plated paying In silver. BIZ that il had
come 70 the cars OF the president, who
said il ms, not be done
Carlisle said he mad heard Of these
ruu,ors and The statement that the pres
ident had oyerruled him had no; a word
Of truth IN ii
Don't yoa remember aid Vest.
athatfn hat conversation with me YOU
said that n the event Of reaching the
iimit Of the gold reserve you had one
remedy available, namely. 70 use the
option % pay IT silver and that YOU
would d !: I. it was no; for the
provision q 10 maintaining the parity =
Carlisle ,aio ne thought this view as
TO parity expressed Ms s:eVs. although
ne could no, recall the exact conyersa-
ton
Then Al that lime, pursued Vet
-yois did nos claim that gold payments
were 10 Pursuance Of the policy estab-
Hshed D. Secretary Foster"
DO yoa remember another converse.
,ioa.- continued Vest. .in which you
told me that you had seen the president
and that he felt thai when the holder OF
greenbzcks demanded gold he was en-
titled TO ii'7
Il recall no such conversation said
the secretary.
AMI mat con sinued Vest. @he tth
president@ had called eabiuet meeting
I e. - -. vv-,~-s-ws