The Denison review. [volume] (Denison, Iowa) 1867-current, 1898-11-15
.lsre was considerable dis
X under that law. In 1880
great

fisherman act was passed under
(which the government was required to
purchase. If offered at the market value,
four million ounces of fine silver per
month, and for four years under this
law. we coined silver dollars on the
average per annum three.hundred and
twenty times as fast as we had coined
under free coinage laws; and the busi-
ness world was scared. 1 doubt it there
was a banker in the United States who
did not recognize the danger. Great
numbers of people commenced hoard
ing gold. AT the time the Sherman act
was passed, ninety per cent OF the
customs were paid into the United
States treasury in gold. This proper
ton gradually fell off until not a dollar
in gold was received by the government
on any of its demands. 1t was still
necessary for the people to use gold in
foreign commerce, and greenbacks were
rapidly presented for redemption and
payment in gold. The reserve was
very soon encroached upon and the
government was compelled to replenish
its stock of gold. The banks of Boston
and New York. recognizing the danger,
responded and furnished the govern
mont between March 4th, 1898 and Nov.
1894, 5000, 900 in gold, in exchange for
legal tender notes. / am not saying
this in commentator for the banks.
They recognized that the whole busi-
ness of the country depended upon the
maintenance of the parity between the
different form of United States money,
and they came heroically to the rescue.
In the meantime the government made
two loans of $50,OOO,00O each. This
amount was soon exhausted. Finally
Mr.. Carlisle said to Mr.. Cleveland, II
cannot maintain the parity three days
longer At that time no one knew of
any way for the government to borrow
gold except upon bonds sold under adj
vertisement and three days was not
sufficient. In this dilemma some one
discovered an old unrepealed statue of
1862. 1t was enacted during the war to
enable the treasurer to purchase gold
when needed. BY chance almost it had
never been repealed. Under this law
no advertisement was necessary, and a
contract was made with j. Plerpont
Morgan, under which he agreed to de-
liver to the United States government
q quantity of fine gold equivalent to
sixty millions of dollars. During all
the preceding years the government
had given the creditor the option be-
tween gold and silver. Mr.. Morgan
said to Congress: IF you will put the
option in the bond, make the bond pay
able in gold by its terms, 1 will take
them at a less rate of interest, suf-
ficient to save the government SIG, OOO,-
600. The democratic congress was then
playing politics. 1t declined. and went
before the country boasting of its wis
dom in refusing to issue gold bond.
SO far as / am concerned those respons-
ible therefor may have the honor of
saddling upon this country an increased
debt of GIG, 900 600, for the sole purpose
Of making political capital. The gov
eminent has ever since January 1st,
1879, aud will ever continue to pay its
coin demands in whatsoever kind the
creditors may prefer rather than pre-.
cipitate results such as l have illus.
trated, and which are inevitable when
one kind of our money commands, in
the market, a premium over another.
At the time this contract was made
gold was going from the United States
to London, and gold was going from
London to the continent. Under Mr.
Morgan's contract he bound himself te
deliver sixty millions In gold, and bring
one half Of it from across the sea. His
friends said he could never do it. He
took the risk. He kept his contract
he turned the tide Of gold westward
from the continent to London, from
London to the United States. He moi
only kept his contract to deliver sixty
millions but he delivered eighty mil
lions, the last 10000, 900 in exchang,
for United States and treasurer notes
Now note the difference. Once before
in the history of this country an entire
issue of bonds was purchased by 8
single Individual, and by q greater
financier than Mr.. Morgan. Consider
ing the age in which he lived, and tn,
conditions then existing, Stephen Cir
ard was perhaps the greatest financiel
this country has ever produced
Stephen Girard at one time purchase,
an entire issue Of government bonds
took them to France, there sold them
doubtless at profit. But congress
gave Stephen Girard vote of thank
for his patriotism, while the entir
country gave Mr.. Morgan, and thos
associated with him, vote of condem
nation for doing the same thing.
l was connected one time with
similar enterprise The town of Char