The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-06-16
CARLIsLE's FIGHT FoR COIN.
The Bond sales Investigation Under
Way.

Way.
Washington June 15.-The Investigation
into the sales Of bonds by the govern
ment was begun to-day by a special Sc
lect committee Of the Senate, of which
Senator Harris is chairman. Secretary
Carlisle appeared TO answer questions and
to explain his communication regarding
the bond issues sent to the Senate Just
before the adjournment
Senator Vest opened the inquiry by ask
ing the Secretary how he came 10 change
his contract with the syndicate by re-
leasing IL from its obligation to purchase
one-half of the gold for the payment of
bonds abroad. The secretary replied that
the syndicate had the gold and did not
have 10 buy it in this country. IL was
simply question of requiring It to ship
the gold 10 Europe and then return 1t.
lie wanted TO stop shipments OF gold of
any kind to Europe, as each shipment
caused uneas.ness in financial and busi-
ness circles.
Replying to a further question by Mr..
Vest, he said that the protective clause
IN the contract with the syndicate-that
requiring it TO do all in its power to pro-
tect the gold reserve during the opera
tOn of its cOntraCt-Was made at his
suggestion. I'm this issue no bids were
called for, the negotiation for replenlsh-
ing the gold reserve being made with the
Morgan-BclmOut syndicate alone. This
course was adopted because the eXigency
! vertise. At this time the gold reserve
was reduced to about $4l 100000
Mr.. Vest asked how the department
came TO award the S4,500000 default bid OF
Mr.. Graves on the last issue to the syn
dicate.
The secretary replied that the syndicate
had made a blanket bid for all the
bonds, and had made a deposit to cover
the transaction, and when Mr.. Graves
failed to comply with his contract the
bonds were awarded to the syndicate.
r.
risen in value at the time, and If the syn
dicate had not made q handsome profit
by taking the Graves allotment Secreta-
ry Carlisle could not say. lie had dis
posed of the bonds to the best Of his abil-
ity. In case they had fal en- In value, he
thought that he could ave forced the
Their offer for the whole amount, in his
opinion, was still open.
In reply to Mr.. Vest he said that he had
never rendered silver In payment for
treasury notes. He thought that It was
his duty to pay these notes In gold and
had so ordered. At the time and under
be dangerous to do otherwise. He had,
however. considered the question of pay
ing these notes in silver.
senator sin reply P1at+ 10 bo 9uesti3n+ by
the time the syndicate negotiation
was made he knew of no one who could or
would furnish the required gold.
Mr. Vest asked him II he did not re-
member telling him (VesD that he had
one remedy, and that it was to pay one
half on the treasury notes of 1880 in sill
yer.
He could not remember having made
this statement, or a further one, recalled
by Mr.. Vest, to the effect that the Presi-
dent was of the opinion that the notes
Of 1890 were payable in gold.
The secretary answered a number of
questions, all of which were covered in
his letter to the Senate, after which the
committee took a recess until 2:30 o'clock.
After the recess, Assistant Secretary
FTNr~s eaa IL a
Mr. Vest wanted to know something Of
his connection with the sale of bonds,
and asked him to tell the committee
of his visits to New York as the agent
of the treasury department.
Mr.. Curtis said that he went to New
York many times, his visits in connec-
ton with bond sales beginning in jan
uary 1894. His instructions were verbal
and were given him by Secretary Carlisle.
He was to go TO New York and Took into
the situation" and see what was going on.
He saw Treasurer Jordan, members Of
the clearing house and a number of out
slders. It was his aim to get the general
temper of the people. The government
was about to issue bonds, and he wanted
to ascertain how the issue would be re-
ceived. He could not remember clearly
his report to Secretary Carlisle, but as
he recollected he reported that the peO-
pie Of New York would subscribe. AS he
remembered, the negotiations with the
syndicate began on Jan. 80, 1884. He went
to New York about this time. with in
structiOns from the secretary to see Mr.
Belmont to talk the situation over with
him and to see if gold could be obtained
from abroad. He did as directed and dur
ing the conference Mr.. Belmont showed
him communications from abroad.
Mr.. Vest wanted to know how It was
that Mr.. Belmont had been making inqui-
ries abroad about gold and at whose sug-
gestions the Inquiries had been made.
Mr.. Curtis could not say definitely, but
thought that Secretary Carlisle mad com
municated with Mr. Belmont on the sub
tect. As ne RENE embered it, the syndicate
had offered to sell some $50, 100000 thirty
year gold bonds abroad at 33t per cent
interest. He reported this to Secretary
Carslisle. and, after consideration the
secretary replied that he could not accent
this proposal Soon after this Messrs
Morgan and Belmont came to Washing
ton. on this visit the negotiations with
the syndicate were closed.
The final contract was drawn by
Messrs. Morgan, Stetson and himself II
was then submitted to Secretary Carlisle
who with Secretary Olney (then Attor-
ney GeneraD, made some changes IN it,
The form of the contract was suggested
by the treasury department.
The committee viii leave here for New
York on Wednesday next. and viii give
public hearings at the Hoffman house on
Thursday and Friday. on Thursday
Nessrs. Morgan. Belmont and gtetson
will be heard, and on Friday Messrs Jort /
dan and Stewart. Mr.. Graves will also
be given a hearing If he desires to make
auV statement.