Birmingham state herald., 1896-06-16
CARLISLE AND CURTIS.
The Secretary and Assistant Secretary Before the Bond Investigation Committee.
 Formers Memory Defective.

Washington, June 15.--The investiga- tion into the recent sales of bonds by the United States government was begun to- day by special committee of the sen- ate, of which Senator Harris of Tennes- see is chairman. Seortary Carlisle ap- peared to answer questions and explain his communication regarding the bond issues sent to the senate just before ad- journment Senator Vest opened the in- quiry by asking the secretary how he came to change his contract with the syndicate. by releasing 1t from its obli- gations to purchase 0ne-half of the gold for the payment of bonds abroad. The secretary replied that the syndi- cate had the gold and did not have to buy it if this country. It was simply question of requiring it to ship the gold to Europe and then return it. He wanted to stop shipments of gold of any kind to Europe, as each shipment caused uneasi- ness in financial and business circles. Replying to further question by MT. Vest, he said that the protective clause in the contract with the syndicate, that requiring it to do all in its power to proA tect the gold reserve during the opera ton of its contract, was made at his sug- geStion.
 In this issue no bids. were called for the negotiation for repienishing the gold reserve being made with the Morgan
 Belmont syndicate alone. This course was adopted because the exigency was great and there was no time to ad rtise. At this time .t1e gold reserve Mds re- duced tosabout $41,000,000.
 MT. Vest asked sh0w-the department came to award the s4,50o,000 default bid of MT. Graves on the last issue to the syndicate. e ssss4e
 The secretary replied that the syndi- cate had made a blanket" bid for all the bonds and had made a deposit to cover the transactions, and when Graves failed to comply with his contract the bonds were awarded to the syndicate.
 Mr. Vest asked Il. the bonds had no. risen in value at the time, and if the sym 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 that he could have forced the syndicate to take the Graves allotment. Their offer for the whole amount, in his opinion, was still open.
 In reply to MT. Vest the secretary said that he had never rendered silver in pay ment for treasury notes. He thought that 1t was his duty to pay these notes in gold, and had so ordered. At the time he thought It would be dangerous to do oth- erwise. He had, however considered the question of paying these notes in silver.
 In reply to a question by Senator Platt he said that at the time the syndicate ne- gotiation was made he knew of no one who could or who would furnish the re- quired gold.
 Mir Vest asked him if he did not re- member telling him (Mr. VesD that he had one remedy, and that it was to pay one-half on the treasury notes of 1890 in silver.
 He could not remember having made this statement or further one, recalled by MT. Vest, to the effect that the presi- dent was of the opinion that the notes of 1890 were payable in gold.
 The secretary answered a number of questions, all of which were covered in his letter to the senate, after which the committee took recess until 2:30 D. m.
 After reassembling Assistant Secretary Curtis took the stand. MT. Vest wanted ito know something of his connection" With the sale of bonds, and asked him to tell the committee of his visits to New York as the agent" of the treasury de- partment.
 Mr. Curtis said that he went to New York many times, his visits in connec- tion with bond sales beginning in Jan ua.ry, 1894. His instructions were verbal and were given him by Secretary Car lisle. He was to go to. New York and Hook into the situation" and see what was going on. He say Treasurer Jor- dan, members of the clearing house and a number of outsiders. It was his aim to get the general temper" of the peo- pie. The government was about to issue bonds, and he wanted to ascertain how the issue would be received. He could not remember clearly his report to Sec retary Carlisle but as he recollected he reported that the people of New York would subscribe. As he remembered, the negotiations with the syndicate began on January 30, 1894. He went to New York about this time, with instructions from the secretary to see Mir. Belmont to talk the situation over with him and to see if gold could be obtained from abroad. He did as directed and during the conference MT. Belmont showed him communications from abroad.
 Mr. Vest wanted to know how 1t was that MT. Belmont had been making in quires abroad about gold and at whose suggestion the inquiries had been made
 MT. Curtis could not say definitely, but thought that Secretary Carlisle had com municated with MT. Belmont on the sub ject.
 AS he remembered, the syndicate had offered to sell some $50,000,000 of thirty year gold bonds abroad at 3% per cent in- terest. He reported this to Secretary Carlisle, and after consideration the sec retary replied that he could not accept this proposition. Soon after this Messrs. Morgan and Belmont came to Washing ton. On this visit the negotiations with the syndicate were closed
 The final contract was drawr by Messrs Morgan, Stetson and himself. It was then submitted to Secretary Carlisle, and Secretary Olney 0hen attorney-gen- crab made some changes in 1t. The form of the contract was suggested by the treasury department.
 The committee will leave here for New York on Wednesday next, and will give public hearings at the Hoffman house on Thursday and Friday.
 On Thursday Messrs. Morgan Belmont and Stetson and Messrs. Jordan and Stewart will be received. MT. Graves will also be given hearing if he desires to make any statement.