Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1896-06-10
CARLISLE REPLIES.
Conditions That Led 10 the Successive
Issues Of ROlds.
THE TRANSACTIONS EXPLAINED.
The Fleets Said TO Have Btcn tho Res.
tOralion OF Cobill,nce Tor the
Time Being, at Least,

wAsHNGToN, juno O.-secrolary
Catlslt's reply to the sub.commlttou OF
she Senate finance committee charged
with the Investigation Ut tho sale ol
United stAtos bonds during the year.
1894, 1895 aud 1896 was made public TO-
day. The statement IL dated June let,
Reviewing the conditions which leu
10 the bond istuOs the ofotaty says:
"Latgely on account oftheapprohen.
sion Incurred ~ 70 tho ability Of the
govsrnmentto continue the current rc.
dtmptiou OF In notes in gold coin anu
maintain the pa rlty VI the two metals,
tho expuuH Oi gOiI during the n cal
year 1873 reached the upytt Ceduuteu
amount VI slOS, GSO,sii, lOarIy all OF
which was withurnW u from tue publ q
treasury by thu presentation Of notes
Tor redemption.
an twiIhstauding the most sttonu.
Gus tilurig maje bg he department 10
maintain tho SlUU,OUO,OJO reserve I'm.
tact, on the 22ul Of April, 1898 I,
became necessary TO uHe part Of ~ Tor
redemption Iurp sCs.
VERY little gold was being received
90 account Of tbs duties 10 the g0ytta.
mrut, ana II whg therefore impossible
10 Increase the reserve without resort.
log 10 the isHuc aud ealo OF bonds
under the authority conferred by tue
redemption nct."
The sscrulnfy then rsfors TO tho bond
call Of January II, 1891, witch ue,tvu
tho government sbs, 66U.0l7. From
that Uale TO November II, 1894, when
inr free gold m the treasury waagJt,.
SIS a7i, the amount varied bot huIr.
lhu fUcfetafy cDntinuos! "iu the
meantime the frequent pfusentation Of
n1its Tor redemption Ia guiJ by iudi.
viuualH AID institutions not Iypifing 10
Tor expectation clearly Indicated the
existence Of uucnsinuts In the public
mind, while foreign exchange wac
almost constantly nj or near n rate
which male II necessary 10 export
gold 10 pay bills ~ their maturity, an
oJnitqu, nifty rAwAl.iOTshipment
were uAIiy tnIoaieuod. AZ the SEASON
approached when large oXporta nearly
niwuyb occur, II was COnsiuCfud nbs1.
lutoly necessary Tor the maintenance
Of the public credit ana the continued
execution OF tue monetary policy DO.
cisred by Congress Ia the act VI July
IA. 1890, aud repeated la the act Of
November /, 1898, ~ Tc5Oft again 10
the Issue u bonds"
The terms and result Of the second
bond issuo arc ithen stated. Secretary
Carllslo tays.
cit sOUn became evident that the
transaction had not been oiloctnal 10
stop the Withdrawals Of gold. Tneae
large Withdrawals were due almost
entirely, 40 Tar o. could DO asccrtninod,
20 q feeling Of apprehension In tho pub
lie MIND, eiToCialiy among the holders
II our securities abroad, which In.
creased Ia intensity from day 90 DAY
until II reached the proportions OF y
panic In thr financial cruiefs, anu II
was evident that unless eilgclual stera
were promptly taken ~ check the
growing uisttust, tho government
would become compelled within "a few
dogs 10 suspend gold payments AMI a.
drop TO n silver anu paper standard.
The situation was ~ grave that tho
attention OF Congress was called tl the
subject ON the .S.h OF January, lsg5n
After freely quoting from the NEE.
sage the secretary says thlt CungTtrs
having failed % pafs any measure i0r
the relief VI the treasury, cUnttnc
was entered Into on February ), 1895,
with August Belmont q Go. Of New
York. n. NJ, R1thrchilds u sons Of
London, and J. T.. Morgan ~ Co. f0r
tho purchase OF 100000 ounces oi
standard gold at the rice OF Sl,7SU,4il
per ounce, 10 be paid Tor In UnIuu
states ihiriy.yest ror cent bonds.
Not lo's than nns.hall OF the gold
was TO he procured abroad, nnd the