Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1896-06-19
Mr.. CARLISLE AND BONDS
Secretary Appears Before the
Committee.
Tells the story Way and How the
Late bonds were Essned-0tber In
teresffng Testimony

the senate committee appointed to in
vestigate the recent bond issue. The
hearing was held in the rooms Of the
senate committee on finance, Senators
Harris, Waitham, Jones and Plat being
present. Chairman Harris explained
that the committee had decided to take
all the testimony under oath, and did
not wish to make Determinations.
Mr. Carlisle responded that ne ex-
pected and desired 10 be pus under cath
M Vest began the examination
asking for fuller explanation Of me
first bond contract with the Morgan syn
dictate that haa been given in NJ Car
isles written statement.
"My main purpose" said Secretary
Carlisle, twas to prevent shipments Of
gold from this country" Mr. Vest
asked who made the frst suggestion as
to the protective clause in the pond con
tract with the Morgan syndicate The
secretary answered that the first draft
was made in his private Office and then
taken to an adjoining room and shown
to Mr. Morgan and Mr.. Francis Lynde
Stetson, after which some changes were
made. This was the Mr.. Stetson, the
Secretary explained in response to an
inquiry, who mad been g law partner Of
the president
Nh Vest asked why the CONTRACT had
been given to the syndicate, TO which
Mr. Carlisle replied with lengthy expla
nation of the great emergency existing
which would not permit delay for the
usual formation of bond sale.
"You never had negotiations wirh
any other bankers outside of the Nor
gan syndicate" asked Mr. Vest.
There was some inquiry, but no ne
gotiations were opened" said the seore-
tarv. Carlisle went on TO explain that
the president was kept apprised Of all
phases of the negotiations.
To Vests question as to why the pub
lie bond sale was resorted to at later
date, when an earlier sale was BY priva.e
contract, Mr. Carlisle said the irst move
was due entirely TO emergencies exist
ing and to disturbing reports which were
without a shadow of foundation and
that the government had long cOntem-
plated a bond issue.
Vests questions turned 10 Graves
bid, which was rejected, the amount of
Graves award, S4,5oo,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 pTlce of bonds instead of
the benefit going to the Morgan syndi- /
cate under their blanket bid. Mr.. Car
Isle said this was a matter of opinion, |
and in his opinion Graves bid was a
nudity, after which Morgan's bid, which |
was the next highest, took the bonds. /
His action, he said, ~as taken after con-
sulting the law Offices of the govern
ment. He would have taken the same
course if the price of bonds had fallen.
as it not fact" asked Vest. that be-
cause the syndicate had carried ont the
protective clause you were inclined to
favor them:"
''Not in the least" declared the secre-
tary, emphatically, ~ am not conscious
of any sucn feeling"
But you and the president were
pleased with the manner ii which the
protective CLAUSE had been carried out'"
inquired Mr.. Vest.
ayes, but I am not conscious of the
remotest feeling in favor of the result"
al suppose you never contemplated
paying in silvers' inquired Vest.
The secretary replied that the present
policy of paying in gold had been fol-
lowed so long that he did not consider
It expedien, to depart from it in times of
emergency.
Plat inquired as to current reports
that Carlisle at one time had contem-
plated paving in silver, but thar it had
come TO the ears of the president, who
said it must not be done.
Carlisle said he nad heard OF these
rumors and the statement that the pres .
ident had overruled him had not word
Of truth in it. I
Don't you remember said Vest, I
'thatin that conversation with me you
said that in the event OF reaching the I
INIT of the gold reserve YOU had one :
available, namely, TO use the
option to pay in silver and that you I
would do L if it was not for the I
provision as 10 maintaining the parity'" {