Evening journal., 1910-04-05

dents that throw new, interesting and fire.
quently dramatic light on famous events
collected by Mr. Edwards during near
forty years Of more or less intimate ac-
s1c Win hs many Of the ogn eognntry
ecdOte or incident Is fresh from Mr.. Ed
wards notebook, and, either III whole or
IN part, It constitutes NEW NEWS OF
who made the news-the history--or from
equally authoritative sources AS i'm
portant contributions of the Human in
terest" sort to American history, these
articles have a distinctive value all their
own.
About a year before William Window,
who had been United states Senator from
Minnesota and Secretary of the Treasury
in President Garheld's cabinet. returned
70 public life at the head Of the Treasury
Department in President Harrisons first
cabinet in 1889, met him I'm the office OF
a common friend. BY chance the conversa-
tion turned upon some OF the incidents as
ISOLATED with Mr.. WINDOWS brief service
in General Garheld's cabinet
Senator" l said, Il have always been
anxious to know how It happened that
you hit upon the precise plan by which
you confounded and put to rout many OF
States in the late spring OF 1Ss1?''
The Senator laughed heartily. why"
he said that plan was due entirely to one
OF those curious chances, those accidental
discoveries, out OF which sometimes great
triumphs come.
you may remember that the Congress
which sat IN the last months OF President
Hayes administration passed an act au-
thorzing the Secretary of the Treasury
to refund a very large issue of bonds
which bore five per cent. interest with a
new issue bearing only three and a half
per cent. 1t was legislation that caused
the bankers of the country to be very
much put out. They wanted the refunding
bonds to bear at least four per cent inter
est and. II possible. four and a half per
cent, and because they did not get what
/ they wanted they began 10 surrender cir
culaton in very large amounts. so large,
In fact, that there was danger of a great
strngency in the money market. As l now
recall It, they surrendered about thirty
millions of circulation in the course OF
/ four or five weeks. and the situation was
made all the more serious by the apparent
intention of the bankers to sell the gov
ernment bonds which had been returned
to them by the treasury when they sur
rendered circulation Consequently. Presl-
dent Hayes, not desiring to have the
money market greatly upset and the bonds
probably deprecated, vetoed the refund
ing bill, and great was the joy OF the
bankers. who felt that they had won the
victory.
"A few weeks later, when / became Sec
retary of the Treasury. one Of the impor-
tant matters that speedily came before
me was those five per cent bonds The
government would soon have the option
of redeeming them. yet 1 knew that this
would not be expedient, and that meant
evidently. that we would have to continue
paying interest on them at the rate OF
FIVE per cent.
well one evening, as 1 was walking
back and forth wondering what / coulc
do in my dilemma, with Congress not il
session.. 1 suddenly recalled a remark bl
John Sherman. when he was Senator. t,
the effect that the discretionary powers o
the Secretary OF the Treasury were mucl
larger than was generally believed to b'
the fact. Immediately. I determined Il
find out whether or not 1 could exercis,
any discretionary powers with the fve pei
cent bonds.
'The next day I hunted up the Attor
y-Cieneral, Wayne Mac-Veagh Mac,
l said, 1 wish you'd look into the Law
and tell me whether 1 can extend the fv,
per cent. bonds at less rate Of interes
than they now bear WITHOUT any especia
authority from Congress-in other words
whether ! have any discretionary powe
in the matter? MacVeagh saw the poin
at once, and day or two thereafter toll
lie that 1 surely had the discretionar!
power.
1.-The rest wis easy. 7 caused it to b.
announced that intended to begin payinl
off the five per cent. bonds at the rate o
ten million dollars a month, and by lot, s.
that no one would know when he woul
be called upon to part with his holdings
And 1 added that If any holder Of bond
was willing that they should be extende
at the rate Of three per cent, and woul
permit such an agreement to be stampe
upon the face Of the bonds, why. ther
the bonds would not be liable to immed
ate redemption.
Now, you know, the banks must nav
government bonds in order TO have circu
lation. and the bankers, quick to see tina
had them, fairly tumbled over one ar
other in their eagerness TO have their fiy
per cent bonds extended at three pc
cent, or at a rate one-half of one pe
/ cent. lower than they could have obtaine
l had they not frightened President Haye
2 into vetoing the bill authorizing the Treal
r ury Department to refund the five .,
D cents. with three and a half per cen
/ bonds.
J 1t was truly laughable and do va
( know, practically all OF the five per cen
= bonds were refunded in this manner, an
/, all because of that happy chance thougl
OF mine. And as a finishing touch to II
-, complete rout Of the bankers, Congress,
its next session, passed a law forbiddir
the banks TO surrender currency in excel
OF three million doHars a month. tt
I banks could no longer dump their circuli
u tion into the United States Treasury in o
der 10 frighten the government into lettir
d them have their way"
Copyright, 1910. by J. f. Edwards)
To- NARROW Mr. Edwards will Fall