The Montgomery advertiser., 1904-05-05
BOND ISSUES OF 9O'S
lMR. CLEVELAND REVIEWS | THEIR DISPosAL.
Failure to Bring Gold Into Treasury of the United States Would
 Have Meant Disgrace to Nation

Philadelphia, May L-The Saturday Evening Post of May will contain an article contributed by ex-President Grover Cleveland on Tho Cleveland bond issues in which he gives the history of "the issue of United States bonds in the years of 1894, 1895 and 1s96 for the pur- pose of replenishine the stock of gold in the public treasury"
 MT. 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 reduc- ton of the gold reserve and that under the law of 1890, the burden upon the gold reserve was tremendously large"
 Continuing. Mir. Cleveland says: T succeeded MT. Harrison to the Presidency on the 4th of Mafch 1s9s. and on the seventh of that month Mfr. Carlisle .oe- came Secretary or the Treasury. The gold reserve on that day amounted to s1Oo, ,sS2, ,41o-only sss2. 40 in excess of the sum that had come to be generally re- garded as indicating the danger line The retiring secretary of the treasury. ap- preciating the importance of preventing the fall of the reserve below that limit. avoided 1t and barely saved the reserve from falling below the s1oO. .0oo,ooo mark during his term by effecting arrange ments in January and February, lSys. with certain bankers in New York py which he obtained from them in exchange for United States notes or on other con alterations, something over S,0oo,OOO in gold. which enabled him to escape the sale os bonds in aid of the reserve.
 Relief only Temporary.
 "In our effort to meet the emergency without an issue of bonds, Secretary Car lisle immediately applied to banks in dif- ferent localities for an exchange With the government of a portion of their holding Of gold for different forms of currency. The slight betterment thus secured proved. however. to be only temporary; for under the stress of continued and augmented withdrawals. the gold reserve on the 22nd day of April. 1893, was re- duced to about $97,000000."
 The repeal of the act of 1893. the ex- President says, did not give any rehet Because there had been added to the re- pealing act an 'inopportune repetition or the statement concerning the govern ment's intention to maintain the parity of both gold and silver coins
 "A factor in the situation" he says, t'most perplexing and dangerous, was the distrust which was growing enormously regarding the wisdom and stability of our scheme of finance. As a result of these conditions, there ioomed in sight the menace of the destruction of our gold reserve, the repudiation of our gold ob- legations, the humiliating fall of our na- tion's finances to silver basis, and the degradation of our governments high standing in the respect of the civilized world.
 Ont Way to Avert Calamity.
 There was absolutely but one way to avert national calamity and our country's disgrace and this was adopt- ed when, January IT, 1894. the Secre- tary of the Treasury issued notice that bids in gold would be received un- til the first day of January following, for $5e,000, 900 in bonds"
 The bonds were issued. but gave only temporary relief, and later in the year another bond issue of $50.000.000 was re- sorted to- This did not have the de- sired effect, and on January 2S, lsso, "the aid of Congress was earnestly in- voked in a special presidential mes- sage. This appeal to Congress for leG- islation was absolutely fruitiess.
 MT Cleveland then gives the details of an intervied, February ', 1895, with J. P Morgan of New York, in which the latter was asked why the Govern ment did not buy s100,00o,00o of gold at a fixed price and pay for it in bonds under Section 376 of the Revised Stat utes. This suggestion was not carried out, and MT. Cleveland says that he al- ways regretted that it was not adopt ed. Continuing. MT. Cleveland says: s After careful consideration. an agreement was made by which J. F. Morgan & Co. of New York for them selves and for J. s. Morgan & Go. of London and August Belmont Co, or New York for themselves and for N. M. Rothschild & Son of London were to sell to the Government 3,500,ooo ounces of standard gold coin of the United Staes. to be paid for in per cent bonds payable at the pleasure of the Govern ment after thirty years from their date. such bonds to be issued and delivered from time to time as the gold coin to be furnished was deposited in the sub treasuries or other legal Repositories. At least half of the coin so delivered was to be obtained in Europe at tho expense and risk of the parties furnish. ing the same"
 Agreed to Take Bonds.
 Mir Morgan and the parties he rep resented later agreed to accept the bonds at 3 per cent. payable by their terms in gold instead of in coin, in