The free lance. (Fredericksburg, Va.) 1885-1926, 1904-05-10
THE CLEVELAND BOND DEAL
FORMER ESlDENT DEFENDS
HIS ADMINISTRATION.

FORMER PRESl DENT DEF ENDS
HIS ADMINISTRATION.
To Save Credit Of Nation He Re-
Views Details Of Efforts TO Protect
the Gold Reserve to Keep the
Country From Going to Silver
Basis.
The Saturday Evening Post OF May !
contains an article contributed Toy eX
President Grover Cleveland uu The
Cleveland Bond Issues, IN which be
gives the history OF The issue ol
nited states bonds in the lears
of lS94. i $50 and $50 iJr the purpose
OF replenishlng the stock of gold ln the
public Treasury
Mr. Cleveland holds that legislation in
favor of silver coinage and the Effort 10
maintain the parity Of silver aGd gold
were greatly responsible Tor tue rrduc.
lion of the gold reserve, and that under
the law OF 1890 the burden upon the
gold reserve was tremendously enlarged.
Continuing. MIR Cleveland says: 81 suc-
c4eded Mr.. Harrison 20 the Presidency
on the 18th DAY of March, 1888. and on
the 9Th on the month Nr. tarIirle be-
came Secretary OF the Treasury be
gold reserve on that day amounted to
SlOO.9S2 .4lO-Only SyS2, q 10 IN excess
oi the sum that had come 10 be- generally
regarded a. indicating the danger line.
The retiring Secretary OF the Treasury,
approaching the importance Oi prevent.
- i. -. 3.
avoided IL, and barely saved the reserve
from falling below the 500, O,uOo,UOO
mark during biz term by affecting ar
rangements in January and February.
l~g3. with certain bankers IN New Ork,
hy which he obtained from them m eX
change for -nited States notes, or on
other considerations, something over
=. OOO. 900 10 gold. which enabled him
10 escape the sale of sOnds In ali a. the
reserve.
In our effort 20 meet the emergency
without an issue of bonds. Secretary
Carlisle Immediately applied 90 banks ia
different localities for an exchange with
the government u % portion Oi their
holdings OF gold coin for Other forms Of
currency. The slight bettefmenr thus
secured proved, however, 10 be Only ten
porary for under the stress Ui continued
and augmented Withdrawals the gold
reserve on the 22d day Of April, lS93.
was reduced TO about S9I 100000.
GAVE SO RELIEF.
The repeal OF the act OF 1880. the ok.
President SAYS. did not give any rellei be-
cause there had been added to the repeal
ing act an 'inOppOrtune repetition OF the
statement concerning the government
intention 10 maintain the parity ui both
gold and silver coins
a factor in the situation, he says,
most perpleXing and dangerous. was the
distrust, which was growing enormous
ly. regarding the wisdom and stability
oil our scheme of finance. rs a result
Of those conditions there lOOmed In sight
the menace of the destruction OiOur gold
reserve. the reputation Of our gold obi
cations, the hUmiliating fall OF cur na-
tons finances 10 a silver basis. sud the
degradation OF our governments high
standing in the civil world.
There was absolutely but one way 10
avert national calamity and our eoun-
try's digrace. and this was adopted
when, on January Il, 1924, the SecIe-
tary OF the Treasury issued notice that
bids in gold would be received until the
fret day OF February following for $50,
900 900 in bOEds.
The bonds were issued, but gave only
temporary relief, and later in the year
another bond issue of SJOOrU,OOO was
resOrted 10. This did not nave the De
sired effect, and on January y, lo93,
"the aid OF Congress was earnestly IN.
voked ia a special Presidential message.
This appeal 10 Congress Tor legislative
aid was absolutely fruitless.'
Mr. Cleveland then gives the details oi
an interview February 1, 1880. with j
+. Morgan. of New York, IN wLi;h the
latter asked why the government did not
buy 100000. 900 10 gold at ahxed price
and pay for il 10 bonds under section
300 Of the Revised Statutes. This sng
gestion was not carried out, and Mr..
Cleveland says that be has always re.
gretted that it was not adopted
AGREEMENT WITH MORGAN.
Continuing, Mr. Cleveland say: Alter
careful consideration an agreement was
made by which J. 2. Morgan x Co., OF
New York, for themselves 6nd Tor j. Z.
Morgan, of London, and August Belmont
& Co.. OF New York, for themselves and
for n. NJ Rothschild q Son, of London,
were to sell to the government 3 800 900
ounces OF standard gold coin of the
United States, to be paid for in 4 per
cent bonds, and payable at the pleasure
Of the government after thirty yearr
from their date, such bonds to be issued
and delivered from time to time as the
gold coin 10 be furnished was deposited