Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-07-05
STORY OF FAMOUS Bond DEAL
Part Played ny ,. p. WarHaa IN tn
CIevelsad GsId Bend I-sus
- 1895.

What has al the appearance Of being
the true inside story Of the famous
Cleveland Eoid bond issue u fs76 inciud-
ing the interview that took place between
Morgan and Cleveland at the White House.
II published IN ths April Metropolitan
magazine as one of the chapters IN Cart
Euvsy's Life story Of 7 Pisrpour Nor
gan The article shows that Cleveland
held out up 70 the very last AGAINST a
bond issue 70 a syndicate Of bankers: that
L was not until the Springer bin. su-
thurizing a popular loan had been de-
feated and ths gold reserve IN the treasury
had besn reduced to few millions that
he would consent 70 see Morgan. and that
in the Negotiations that fellowed between
these two II was Morgan himself who
pointed OUT % the president the statute By
which the private loan could Be made
constitutional
Mr. Eovsy's account which - faIl OF
Interesting and hitherto unrelated cir
czmstances is evidently derived from an
authentic source Negotiations had been
begun between the Treasury department
and Morgan 10 relieve the situation. but
had been broken or by Clevelands direc-
ton. The morning after the defeat Of
the Springer bin. Morgan left for Wash
srt Bacon. and his lawyer Francis Lynds
stetson- Secretary Of War Lamont met
Morgan at the station and informed him
that Cleveland would not consider a prf-
vats bond sale and would not see him.
Morgan and hts party went to the Airing
ton. where they learned from treasury
officials OF the imminence OF the crisis
Morgan sat up all night playing solitaire.
The next morning he told his partner
that he had evolved a. plan. He renen-
hered thar when he was a young man
Lincoln had faced the crisis OF an empty
treasury, ami that he had had an act
passed authorizing the president 10 pur-
chase gold whenever the government
needed IT, and that he thought this statnte
was still on the books.
While at breakfast President C1eve-
land sent for him The story continues
The Presidents greeting was very
short and formal Mr. Morgan looked
al him and saw that he was not smoking.
50 he did not light his own cigar. He
and Bacon sat down AZ what was des-
tined 10 be a memorable conferences. M
Cleveland reiterated his determination
not 70 consent 10 a sale OF government
bonds 70 a syndicate OF bankers or other
wise He discussed the situation with
his official advisers while Morgan ana
Bacon sat as spectators IN the scene. The
minutes grew into hours. Mr- Morgan was
not asked 70 make any suggestion The
president was striving with his own ad-
visers To find a way out of the difficulty
and was determined 10 DO il IL possible.
At last a memorandum taken from
Telephone message showed that there were
but 81 0oo.0a0 OF soid left in the New York
broke his silence. Re sad: M President.
the secretary OF the treasury knows OF one
check outstanding cor S2.0oo.eo0- II rhfs
is presented today. 10 is over
Mr. Carlisle had told him the evening
before at the hotel about this check Ee
had had il in his mind every minute since
that time. The secretary confirmed this
statement at once and the president then
turned TO Mr.. Morgan for the nrst time
and said Have you anything to suggest
TO this man WHO is accustomed 20 TAX
ing the initiative in things IT had been an
ordeal 70 sit silent and inactive that morn
ing at the White House When he began
TO speak he talked rapidly. he told the
president OF his recollection Of that section
number four Thousand and something of
the United States statutes.
Ar a word from the president Attorney
General Olney stepped out OF the room and
and In a moment returned with the book
Of revised statutes. He told the president