The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-09-18
RIVER, FRIDAY MOaNING, SEPT. IS,


sues? No my friends, and why not?
Because the leaders of the Republican
party have always supported the pre-
sent financial policy all the way
through, and therefore, they cannot
now array themselves against it. And
do you know how that financial policy
has been carried out? Such is my con-
4idenee in the patriotism of the Amer
lean people that I believe that if they
knew all that has gone on, and under
stood what will go on under the oper-
alton of the present financial policy,
they would rise in almost unanimous
protest against it. Let me call your at
tention to what has been done. The
law provides that the Secretary of the
Treasury may redeem greenbacks and
Treasury notes in gold and silver. The
Secretary of the Treasury has the OPP
ton. If you doubt it YOU can read the
testimony of Secretary Carlisle given
before the appropriation committee of
the House on the 21st day Of January,
1895. There he was asked whs the
government should not exercise the or
ton and he explained that it had been
the custom for some years to let the
note-hoIders have the option and if
y
cedent, not the law, the administrative
policy would in his Judgment work
great harm; admitting that the law
gives the right and declaring the adj
ministrative policy for years had been
to surrender the right given it under
the law. 1t means that the United
States Treasury is at the mercy of
those who desire to draw out the gold
and force an issue of bonds. 1t means
that instead Of having the amount of
bonds determined by the taxpayers
Of this country, the amount of bonds
will be determined by those who want
to buy bonds, the syndicates which
want to profit by bond issues. Let me
show how it is possible. When MIR
Carlisle issued the first fifty million
dollars of bonds he asked for bids, and
he stated that only gold would be re-
ceived for those bonds. Suppose a man
had gone into the Treasury department
and safd to hins Mr.. Secretary, / have
a thousand dollars in greenbacks and
Treasury notes, | want to buy a thou
sand dollars worth of bonds, the Sec
rotary would have said to him, I can't
let you have any bonds for greenbacks
and Treasury notes 'Why?' the man
would say, aren't these greenbaclxs
and Treasury notes goodY Yes, they
are good for some things, but not good
to buy bonds with, these bonds are
issued to get gold and therefore YOU
must bring gold here or you can't get
bonds If the man wanted bonds he
could simply say, All right, if you
won't give me bonds for these green
backs and Treasury notes, | will de-
posit them right now and demand their
redemption in gold The Secretary
would say, All right that is what we
are her for, and hand it out. The
man would say, DO | understand YOU
have some bonds you want to sell for
gold?' Yes Well here is the gold,
now let me have the bonds,
(Applause.) Isn't that sim
pie operation? That is the substance
of what has been done. When the
first fifty million collars of bonds were
issued they drew out eighteen millions
of dollars of go!d TO pay for the bonds
so that to the extent of eighteen
million dollars the government
had no more gold than it had to be-
gin with, and yet we had agreed to
pay interest upon eighteen million
dollars of bonds. And when he issued
the second batch they drew out a
larger percentage than they did for the
first batch, and then made what is
known as the 'Rothschild contract and
the only excuse that / know for that
contract was that when we sold bonds
at home they had to furnish the gold
to buy bonds with. So they sold the
bonds abroad so as to avoid the neces-
sity of paying out the gold which
they were to receive. 1t simply en-
larged the circle and before the time
was up, during which this syndicate
agreed to take compassion ON the
American people and look out for them
If they could, before that time was up
some of the very bonds which went
across the ocean at $1.O41b to bring
gold to this country, came back to this
country and were paid for in gold at
more than S1.20, and that gold went
out of the country (Applause.) You
see this is financiering, my friends
Sell bonds at $1.04 in order to get gold
into the country and send out more
gold than you get for the same bonds
Then they issued a hundred million
dollars more of bonds, making alto
gether two hundred and sixty-two
millions of dollars in bonds. And
when the last batch of bonds were sold
| want to call your attention to what
was done. They say that the people
are not able to understand the money
question. That it must be turned over
to few great financiers who have
made a study of the business. I won
der if there is any greater fnancier
than J. Pierpont Morgan; that is the
man who has been sponsor to the
Treasury on two or three occasions.
Let me show you what a safe man he
is to consult in regard TO the financier-
ing of this country. You will remem-
Der when it was understood that these
bonds were to be sold at private sale,
Mr. Morgan organized syndicate
which was to take these bonds at
about 105 and a good deal was said
about the matter in the papers. And
finally it was decided to sell the bonds
at public auction. What did the syn
dictate do? Dit it put in it's bid for
105 as it would at private sale? No;
but within fifteen minutes of the hour
Of the opening of the bids the head