The Birmingham age-herald., 1904-05-05
Is Not Ashamed of What Is
 Charged as Crimc'
COUNTRY WAS IN GREAT NEED
Was Absolutely Necessary to Replen- ish the Gold Reserve, Which Had Reached the Danger Point In
 Former Administration.

FOTfnCF
 Philadelphia, May 1.-The Saturday Evening Post of May ' will contain an article contributed by ex-President Grover Cleveland on "The Cleveland Bond Issue, In which he gives the history of the ls- sue of United States bonds in the years of 1894, 1895 and 1896 for the purpose ot re- plenishing the stock of gold in the public treasury"
 Mr. Cleveland holds that legislation in favor of silver coinage and the effort to maintain the parity of silver and gold were greatly responsible for the redue- ton of the gold reserve, and that under the law of 1890 the burden upon the gold reserve was tremendously large
 Continuing, MT. Cleveland says
 'sI succeeded Mir Harrison to the presl- dency on the 4th of March, 1893, and on the 7th of that month Mr. Carlisle became secretary of the treasury The gold re- serve on that day amount d to $l0O '4ol-- only $9S2 40 in excese ee .ie sum that had come to be generally regarded as in- dlcating the danger line. The retiring sec retary of the treasury appreciating the importance of preventing the fall Of the reserve below this limit, avoided 1t, ana barely saved the reserve from falling be- low the $100 00O 900 mark during his term by effectng arrangements in January and February 1893 with certain bankers In New York by which he obtained from them, in exchange for United States notes or on other considerations, something over SS, eco, GOO in gold, which enabled him to es- cape the sale of bonds m aid or the re- serve.
 Applied for Holdings.
 "In our effort to meet the emergency without an Issue of bonds Secretary Carlisle immediately applied to banks In different localities for an exchange with the government of portion of their hold ings of gold for different forms Of cur rency. The slight betterment thus se- cured. proved however, to be only tenn porary for under the stress of continued and augmented withdrawals the gold reserve on the 22nd day of April, 1893 was reduced to about $s7.JoO,OoO
 The repeal of the act of 1890, the eX- President says, did not give any rellef, because there had been addsu to the repeating act an "inopportune repetition of the statement concerning the govern ment's intention to maintain the parlty oI both gold and silver coins.
 A "n1ost perplexlng and dangerous, was the distrust which was growing enor- mously regarding the wisdom and stabil- itv of our scheme of finance. As re- sult of these conditions, there loomed in sight the menace of the destruction of our gold reserve. the repudiaton or our gold obligations, the humiliating Tall of our nations finance to a silver basis, and the degradation of our government high standing in the respect of the civil ized world"
 To Avert Calamity.
 "There was absolutely but one way to avert national calamity, and our coun- try's disgrace, and this was adopted when on January 1T, 1894, the secretary of the treasury issued a notice that bids in gold would be received until the first day of February following for s50,00O,OoO in bonds
 The bonds were issued. but gave only temporary relief, and later in the year another bond issue of s50000,000 was re- sorted to- This did not have the desired effect, and on January 2S, 1895, "the aid of congress was earnestly invoked In special Presidential message.
 This appeal to congress for legislative aid was absolutely fruitess."
 Mir Cleveland then eiyes the details of an interview February ', 1S9o, with J. P Morgan of New York, in which the latter asked why the government did not buy $1O0, GOO at fixed price. ond pay for 1t in bonds under section 6fo or the revised statutes. This suggestion as not carried out, and MT. Cleveland says that he always regretted that 1t was not adopted. Continuing MT. Cleveland says;
 Agreement at Four Per Cent.
 After careful consideration, an agree ment was made by which |. r. Morgan &, Co. of New York, for themselves and for J. F. Morgan & Co. of London. and August Belmont & Co., of New York. for themselves. and for N. M. Rothschid & Son of London, were to sell to inc government 3.500000 ounces of standard gold coin of the United States to be pad for in 4 per cent bonds and payable at the pleasure of the government after thirty years from their date. su;h bends to be issued and delivered from time to time as the gold coin to be furnished was deposited in the sub-treasury or other legal Repositories. At least half of the coin so delivered was to be obtained Tn Europe at the expense and risk of the parties furnishing the same"
 MT. Morgan and the parties he repre- sented later agreed to accept the bends at per cent, payable by their terms in gold instead of in coin, In case their issue could be authorized, but the needed con gressional authorization was refused. Therefore the contracts were carried out as originally made. In its execution per cent bonds were delivered amounting to s62. .315, 400, and the sum of $65, 116.2f4 In gold received as their price
 On the 9th of January, 1896, the gold reserve having fallen to s6l ,251. 710. it's i'm mediate repair became imperative and t was decided to offer bonds to the amount of s100,000,0Oo for popular subscription dr per cent. Circulars were sent to all postofflces throughout the country and one months time was given for re- plies. Of the bids received. however only BPS could be accepted
 Bids for Single Bond.
 Several of the bids received" MT Cleveland continued, were for a single $50 bond, and varied in amount from that to one bid made by J. r. Morgan & Co. and several associates for the entire issue of 100000, for which they offered 1106 6S77 on the dollar. To all the other s27 accepted bidders who offered even the smallest fraction of farthng more than this, the full number of bonds for which they bid were awarded.
 "The aggregate of the bonds awarded to these bidders, excluding the Morgan bid, amounted to ss2. ,l5O. The remainder of the entire offer was awarded to MT. Nor gan and associates, their bid being the