The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-06-10
CARLISLE ON THE BOND SALES
Reply of the Secretary to the Investigating
Sub Committee.

bonds during the years 1894. 1895 and
1896. was made public today. The
statement is dated June L Reviewing
the condition which led TO the bond is
sues, the secretary says:
Largely on account OF apprehension
incurred as to the ability of the gov
eminent TO continue the current redeml
ton of its notes in gold coin and main
tain the parity of the two metals, the
exports of gold during the fiscal year
1898 reached the unprecedented amount
of $50, eSOS44, nearly all of which was
withdrawn from the public treasury by
the presentation of notes for redemp-
ton.
Notwithstanding the most strenuous
efforts by the department to main tain
the s10o, 900, 600 reserve intact, on the
22d day of April, 1893, it became neces-
sary TO use part Of it for redemption
purposes.
every little gold was being received
on account of dues to the government
and it was therefore impossible to in
crease the reserve without resorting 10
the issue and sale of bonds under the
authority conferred by the resumption
! act"
The secretary then refers to the sale
of January II, 1894, which melted the
/ government SIS, 66O,917. From that date
TO November IA, 1894, when the free gold
in the treasury was S61,S7S,374, the
amount varied but little.
The secretary continues:
I'm the meantime the frequent pre-
sentation Of notes for redemption in
gold by individuals and institutions not
/ desiring it for expectation, clearly indi-
Gated the existence of uneasiness in the
| public mind, while foreign exchange
was almost constantly at, or near, a
rate which made it necessary TO ex-
port gold TO pay bills at their maturity
and consequently Withdrawals for ship
ment were daily threatened AS the
season approached when large exports
nearly always occur, it was considered
| absolutely necessary for the mainte-
nance Of public credit and the continu-
ed execution Of the monetary policy de-
clared by congress in the act of July IA,
1890, and repealed in the act of Novem-
Der l, 1893, to resort again to the issue
Of bonds"
The terms and result of the second
bond issue are then stated. Secretary
Carlisle says:
at soon became evident that the
transaction had not been effectual TO
q.
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
the holders of our securities abroad.
which increased in intensity from day
to day until it reached the proportions
OF panic in the financial centers and it
was evident that unless effectual steps
We're promptly taken to check the grow
ing distrust, the government would be-
come compelled within few days to
suspend gold payments and to drop to
silver and paper standard. The stu
alton was so grave that the attention
or congress was called to the subject on
January 2S, 1895"
After freely quoting from this mes
sage the secretary says that, congress
having failed to pass any measure for
the relief of the treasury, a contract
was entered into on February 8. 1895
with August Belmont & Co., of New
York; n. NJ. Rothschild &1 Sons of Lon
don and j. P. Morgan & Co.. for the p.Ir
chase of $500 600 ounces of standard
gold at the price of 17.sO441 per ounce
10 De paid for in United States thirty
year TOUR per cent bonds. No less than
one-haf Of the gold was to be procured
abroad and the parties agreed. so far
as Say IN their power, to exert any fl
hancIaI influence to make all legitimate
eLI"FtS 20 protect the treasury against
80, &c m-thuIaWa! pending the complete
performance Of the contract"
The secretary quotes from ~, -.
Geut message sent to congress iIn,ra
St~teiy on the execution of the confrarI
"a winch he again calls attention 10 r.
11 r-S'lsCt@i Condluon- The agreement 10
says, was faithfully carried out- ana n,
adds: '' a-iu ne
After large part OF the gold had baan
i-iIS.ied from abroad, the secretary. in
~ uSr 20 prevent disturbances in the rates
o. Iore'sn exchange and create q con6s7
Ion mat would force gold expor1s a15
consequent Withdrawals acouiesced IN =
l'aIture nom the literal terms OF the
opIieI9 at requiring one-half to be procured
abroad, and accepted deposits OF eotd the
livery. PS'e 'He ue-
-. "Withdrawals of gold again set IN and
on DEC. lsSO the president again sent a
message to congress asking remedial IT,
lslauon, but none was enacted ana n,
January 3. 1856, circular was issued ash
lhg or subscriptions for SlOo. 10000 I pe-
The secretary says: ~--
Ny opinion is that the prices received
oy the government for bonds in ISas TSc5
@lu - were as high as II was possible
. 81
ING al the times when the sales were r,,sss
ne Iact that the bonds are offered TO-
SAFE by the government only al times
Nnen the financial affairs of the ro,f-7trv
aIe greatly disturbed ard the market more
OF ISSs depressed on account OF the bus
mess oppression and the feeling OF fnse- |
curly which always prevails a. such per-
lCas among investors, necessarily prevents /
me realization OF as good prices as might /
be procured If advantage could BE- faLen |
OF me most favorable opportunities for
erecting the sales The same conditions
which make the issue Of bonds necessary |
also Ce9reSs the prices Of such securities !
n al the markets OF the world and CON
the government IS comueIfed 20 i
make Is sales under the most unfavo--
able circumstances
IN relation 10 the part OF the resoiu-
non which directs the committee 10 IN
re ana report what effect the bond /
sues hAC on the credit ard bushes OF /
TIE people OF the United States I have
me 1aoaor % say that n my opinion the
s - were necessary for the presery-s ton !
o. the credtt OF the government AMI the
security OF he business interests az re
people ard that they IN fact accomplished
those results.
In general, the eject of each sale Vas
70 restore confidence, for the time has-- !
ar least. n the power and pu-DoSe ~ -
government "a maintain rs own r.-a.7s- |
- s-eServe the parity OF our coins and the
value OF our currency AID 20 check tie |
return or our securities il large amount
from European countries for sale o. tie
market here"
Miner Killed at Pittsburg-
Pittsburg. Kan. June s-Harry Love.
I miner employed an the Wear coal