The Dickinson press. (Dickinson, Stark County, D.T. [i.e. N.D.]) 1883-1927, 1896-06-13
THOSE BOND SALES.
SECRETARY OF THE TREASURY CAR.
LISLE WRITES A LETTER.
He Explains to the Subcommittee OF
the Senate Committee Appointed
to Make an investigation, the
Circumstauces SurrOundinx the
Recent Sale of United States
Bonds

washington. June 9.-secretary Carlisle's
financial committee charged with the in
vestigation of the sale Of United States
reply to the subcommittee of the senate
bonds during the years 1894, 95 and '96
was made public today. The statement Is
dated June 1. Reviewing the conditions
which lead to the bond issues. the secre-
tary says: Largely on account OF ap-
prehelsion In this country and abroad us to
the ability Of the government to continue
the current redemption Of Its notes In gold
coin and maintain the parity Of the two
cal year 1888 reached the unprecedented
amount OF $1OS, ,6S0.S44. nearly all Of which
was withdrawn from the public treasury by
the presentation Of notes for redemption.
Notwithstanding the most strenuous ef-
forts ty the department to maintain the
$!Oo. .en.Ooo reserve intact on the 22d day
of April. 1893, 1t became necessary to use a
part Of 1t for redemption purposes. Very
little gold was being reserved on account Of
dues to the government, and 1t was there
fore next to impossible to increase the re-
serve without rcsortins to issue and sale Of
bonds under the authority conferred by the
resumption act.
The secretary then refers to the bond call
Of Jan. IL, 1894, which nctted the govern
ment S5S.6GO.917. From tina! date to Nov.
IA, 1884, when the free gold In the treasury
was SGl.S1S,34. the amount varied but lit
tie. Th" secretary continues: "ln the mean-
time til" frequent presentation Of notes for
redemption In gold by individuals and insti-
tutions not desiring 1t for export, clearly in
dicated the existence Of uneaslness In the
public mind, while foreign exchange was
almost constantly at or near rate which
made it necessary to export gold to pay
bills ut their maturity, ami consequently
Withdrawals for shipment were daily threat
cncd. As the season was approaching when
large expectations nearly always occur 1t
was considered absolutely necessary for
the maintainance OF the public credit and
the continued execution Of the monetary
policy declared by congress In the act Of
July IA, 1898, to resort again to an Issue Of
bonds.'
The terms and result Of the second bond
issue Is then stated. Secretary Carlisle
saws:
at soon became evident that the tran
saction had not been effectual to stop with
drawals of gold. These large Withdrawals
were due almost entirely. so far as could
be asccrtained, to a feeling Of apprehension
In the public mind. especially among the
holders Of our securities abroad, which in
creased In intensity from day to day until
1t reached the proportions of a panic in
the financial enters, and 1t was evident
that unless enectual steps were promptly
taken to check the growing distrust the
government would be compelled within a
few days to suspend gold payments and to
drop to silver and paper standard. The
situation was so grave that the attention
Of congress WAS called to the subject Janu-
ary %. 1S95."
The secretary says that congress having
failed to pass any measure for the relief
OF the treasury or to take any action to al
lay the serious apprehcnsions In the public
mind. contract was entered into on Feby
8. 1895, with August Belmont and Co., Of
New York, Ii. NJ. Rothschild and Sons Of
London and ]. =. Morgan and CO., for the
purchase OF 3,5OO.OOO Onces OF standard
gold ut the price Of S17.SO441 per ounce,
to be paid for In United States thirty year
4 per cent bonds.
II have the honor to say that In my opi-
nino the sales were necessary for the pre-
servatOn Of the credit Of the government
and the security Of the business interests
ofthc people and that they in fact accom-
plishcd those results. In general. the effect
Of each sale was to restore confidence for
the time being at least in the power and
purpose of the government to maintain It's
own credit, to preserve the parity of our
coins and the value of our currency, and to
check the return Of our securities In large
amounts from other countries for sale in
the market here"