The Washington times., 1904-05-05
Bond Issue Unavoidable.

1O-A ASSAS OAcN O4NelLAS
There was but one way TO avert ma
tional calamity and our country's dis
grace; and this way was ADOPTED when
on the 18th day of January, 1884, the
Secretary of the Treasury issued no
tice that bids in gold would be received
until the first day of February follow
ing for S500o9.o00 in bonds OF the
United States. redeemable in coin a.
the pleasure OF the Government after
ten years from the date Of their issue
and bearing interest at the rate Of .
per cent Der annum.
IT was further stated in the notice
that no DiO would be considered that
did not Ot'er 4 premium on said bonds
OF a fraction more than II per cent
which would secure 70 the purchaser an
investment yielding per cent per an
"On the evening Of the seventh day Of
February. 1885, an interview was held
at the White House with Mr. J. Z. Nor
gan, OF New York; and / propose 10
give the details OF that interview as
gathered from recollection which / do
not believe can be at fault Secretary
Carlisle was present nearly or quite all
the time. Attorney General Olney was
there portion Of the time. and Mr.
Morgan and young man from his Of
fice azad myself all the time. AT the out
set Mr.. Morgan was inclined 70 com
plain OF the treatment he had received
from Treasury officials in the repudia-
ton OF an arrangement which he
thought he had been encouraged to per
feet IL connection with the disposal Of
another issue Of bonds.
Contract Carried Out.
when our conference terminated it
was understood that Secretary Carlisle
and Attorney General Olney should act
Tor the Government at a meeting be-
tween the parties early the following
day. at which the agreement we had
made was 70 be reduced 10 writing and
thereupon l prepared q message which
was 10 be submitted 70 the Congress at
the opening Of its session on the follow
ing day, IN which the details OF our
agreement were set forth and The
amount which would be saved TO the
Government by the substitution Of 3
per cent gold bonds was plainly stated
but having no memorandum OF the
agreement before me IN my haste /
carelessly omitted 10 mention the ef-
forts agreed GA BY Mr.. Morgan and his
associates 10 prevent gold shipments
1.-THE last deposit In completion of the
out as originally made. In its execution
per cent bonds were delivered amount
ing 10 S62,3l5. 400. and the sum Of So. TO-
Z146Z In gold received as their price.
The last deposit In completion Of the
contract was made IN June, 1885, but ad-
CltiOldl gold was obtained from the con-
tracting parties IN exchange fOr United
states notes and Treasury notes, until
IN September. 1885. when the entire
amount Of gold received from them IN
der the contract and through such ex-
changes had amounted 10 more than
S6l,gUoVyg. The terms Of the agreement
were so well carried out, not only Ia the
matter OF furnishing gold but in pro-
curing IL from abroad and protecting the
reserve from Withdrawals. that during
It's continuance the operation OF the
endless chain which had heretofore
drained our gold was interrupted
Dir. Cleveland then reviews the
chronic condition Of our financial all
ments,' and shows why IL was impera-
tive 10 issue more bonds, all these trans
actions being minutely described