Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1904-06-18

made without advertisement or by pri-
yate contract l believe that resolution
saved Uncle Sam a great deal OF mon
ey when Il was before the Senate Rus
sell Sage wrote me that had saved the
government s6,OOO,OoO by IT,"
HOW CLEVELAND SOLD BONDS.
give me the story in a nutshell
said !.
Since Grover Cleveland has revived
the subject I have no objection to do
ing 30, replied Senator Elkins. 1T
was IN the latter part OF 1895 that
Cleveland made his contract with GER
tain New York bankers to take $685.
100000 worth of United states 4 per
cent bonds az l0iia and place them In
Europe This contract was made with
out advertisement for bids and at a
private sale to j. Pierpont Morgan.
The reason for Il was that there SEEM
cd to be scarcity OF gold in the
country, and the gold reserve fund In
the treasury had fallen considerably
below the si00,00000O mark, which Is
the legal reserve. shortly after the
sale was made 4 was reported that Mr..
Morgan took the bonds TO New York.
and 'Sthin "a hours thereafter sold
them for li2, and more, 30 that
syndicate made about s6O000OO out Of
the deal or this II was alleged that
j. Pcrpont Morgan received $1,000
600"
AT the same time more gold was
needed, and n WAS proposed to issue
$780, 900 900 or $500. 100000 more Of bonds
IN the same way. our laws provide
that even the smallest Of our public
contracts shall be by advertisement,
and only TO the highest bidder, and
did not think II was right TO sell the
bonds IN this way TO private parties
without such advertisement I also
thought there was plenty Of gold IN the
country, and that the bonds could be
sold az home. was so convinced Of
this, that. although | was then new 10
the senate and backward about push
ing myself to the front, and although
all my friends advised against IT, | of
fered my resolution that no further
bonds should be placed at private sale
or under private contract, and that no
sale whatever should be made without
due advertisement for proposals. and
then only TO the highest bidder"
MIGHT HAVE MADE N6,OOOOOo.
How did the resolution take In the
senate when It was offered2' | asked.
II was warned that II would create a
panic. Some of the senator's thought
il would throw the nation into bank
ruptcy and begged me to keep quiet
I offered the resolution, nevertheless
and In speaking upon It showed that
war loans aggregating more than 81
300. 600, 600 placed I'm time OF peril had
been put out at less expense to the
government than these $62 900 issued
I'm time of peace. ] showed that the
1... IT al. l.l
commissions Of less than per cent to
the government, while the New York
bankers had already made more than
per cent out OF that contract with
Uncle Sam, and that they now expect
ed to make as much or n greater per.
centage on the 100000 900 or the $780,
600 then under consideration. In
other words, II the issue OF 5000, 600 O0O
was sold through them az the same
rate their profits would be about sl6,-
900, 600"
How did II turn out, senator's
THE result was that the people be-
gan TO protest against further private
sales" said Senator Elkins THE presl-
dent and the senate woke up and saw
that they were not necessary. and that
they would be unpopular A 100000, .
coo worth OF bonds were then advertised
as for sale to the highest bidders. Those
bonds were subscribed for six times
over at ll2h, or at SSOO0,0OO more than
the government would have received
had they been privately sold at the
price Cleveland made for the s62, OO0,-
0O0"
SUGAR-COATING THE PILL.
do you think Cleveland was honest
In this matter, Senator Elklns?