The times. [volume] (Richmond, Va.) 1890-1903, 1896-06-16
BOND SALE INVESTIGATION.
Secretary Carlisle and Assistant Secretary
Curtis on the Stand.
He EXPLAINS ALL TRANSACTIONS.
The Committee Given Good Reasons fos
the Manner OF Zach saie-rhe Invests
eating Committee WIN Go to New
York Wednesday.

WASHINGTON. June I5.-rhe investi-
cation into tho recent sales OF bonds py
the government WAS begin to-day BY a
special committee OF the senate OF which
Senator Harris, OF Tennessee. is chair
man.
Secretary carlisle appeared 10 answer
questions anu explain his oonrn,mica-
ton regarding the bond iSsus cent TO
the Senate just before adJourr.nent.
Senator Vest opsned uhe inquiry by
asking the SECRETARY how he came 90
change his contract with the syndicate
by releasing 1t from lts obligation 10 pur-
chase one-halr OF the gold fcr the pay
ment Of bonds abroad.
The Secretary said that the syndicate
had the gold and did not have TO buy II
I'm this country. IL was simply a question
OF requiring IL to ship the gold 70 Europe
ard then return It. lie wanted 10 stop
shipments OF gold OF any kind 10
Europe. as each shipment caused uDeasl-
ness IN financial and business circ4es.
Keplyng 10 further question By Mr..
Nest lie said nat the protective clause
I'm the contract with the syndicate, that
requirinc II tu do all IN It's power 10
protect the gold reserve during ths opera
ton OF its contract Was made at his sus-
CestiOn.
THE EXIGENCY WAS GREAT.
In this issue no bids were called for.
the negotiation for replenishing the gold
reserve being made with the Morgan Bel
mont syndicate alone. This course was
adopted because tho cxigency was great
and there was no time TO advertise. At
this time the gold reserve was reduced 10
abIut 81 t,JHt
Mr.. Vest asked how che Department
came TO award the s4,5O0,Oc0 default bid
OF Mr. Graves OH the last issue to the
syndicate.
The Secretary replied that the syndi-
cate had made "A blanket" bid for all
the bonds and had made deposit TO cover
the transaction and when Graves fatlet
10 comply with his contract the bonds
were awarded 70 the syndicate.
Mr. Vest asked IL the bonds had not
risen In value at the time. ard II thesyn-
dicate had not made handsome profit
by taking the Graves allotment.
Secretary Carlisle could not say. He
had disposed Of the bonds to the best OF
his ability. In case they had fallen In
value, he thought he could have forced
the syndicate to take the Graves allot-
ment.
The Secretary answered a number OF
questions which were covered in his
letter 10 the Senate. after which the CON-
mittee took a recess util 2i50 MP. Nj.
THE ASSISTANT SECRETARY.
After the recess, Assistant Secretary
of the Treasury Curtis took the stand.
MI Vest wanted 70 know something
OF his connection" with the sale OF bonds
and asked him to tell the COMMITTEES or
his visits to New York as the agent
OF the treasury"
Mr. Curtis said that he went TO New
York many times. his visits in connection
with bond sales beginning IN January.
1894. His instructions were verbal and
were given him by Secretary Carlisle. He
was 10 20 TO New York ana look into
the situation" and see what was going
on. lie saw Treasurer Jordan. mem
bers Of the clearinghouse, and number
OF outsiders.
As he remembered, the negotiations
with the syndicate began on January
30. 1894. He went 20 New York about
this time with instructions from the Sec
rotary 10 see Mr.. Belmont, 10 talk tho
situation over with him and TO see II
gold could be obtained from abroad. He
did as directed, and during the conferences
Mr. Belmont showed him communics- .
tons from abroad.
Alr. Vest wanted 10 know how il was
that Ar. Belmont had been making in
fuii'S dhIodu dhOut gold, ana at whose
suggestions the inquiries had been made.
Mr.. Curtis could not say definitely,
but thought that Secretary Carlisle had
communicated with Mr. Belmont on the
subject. As he remembered IL. the syn
dlcate had offered 10 sell some $4,000. 900
thirty-year gold bonds aUoad at 81 in
terest. lie reported this 10 Secretary
Carlisle, and after consideration the Sec
felafy replied that he could not accent
TINS proposal. Soon after this Afessr,s-
morgan and Belmont came 10 Washing
Ton on this visit the negotiations with
the syndicate We're closed
The final contract was drawn bv Messrs
Siois@h Sietson, ana himself. IN
was then submitted 10 Secretary Carlisle
VINO with Secretary Olney. then Attorney.
General. made some changes in IL. an.
FORM Or the contract was suggesteI Nv
the Treasury Department
The committee will leave for New yorL
on wednesday next and give public henri
ihSs at the Hoffman House Oh rbur.1av
anu FRIDAY. On Thursday Messrs Nor
gan Belmont and StetSon will be- heard
ana on Friday Messrs. Jordan ana stew.
art. Mr. Graves will also be given a besr-
ing II he desires to make any stat
ment. '"'e