The Detroit times., 1911-03-22
TELLS HOW MORGAN
AIDED CLEVELAND
Writer Says Financier, Appearing al
Eleventh Hour, Showed How to
Meet National Crisis.

NEW YORK. March 22.-What has
all the appearance OF being the true
inside story" of the famous Cleve-
land gold bond issue OF 1895, includ-
ing the interview that took place be-
tween Morga nand Cleveland at the
White House, IL published In the
April Metropolitan Magazine as one
Of the chapters In Carl Hovey's Life
Story of ]. Pierpont Morgan" The
article shows that Cleveland held out
up to the very last against a bond Is
sue to a syndicate OF bankers; that
II was not until the Springer bill, au-
thorizing a popular loan. had been de-
feated and the gold reserve in the
treasury had been reduced to a few
millions that he would consent to see
Morgan. and that In the negotiations
that followed between these two 1t
was Morgan himself who pointed out
to the president the statute by which
the private loan could be made con-
stitutional
Mr.. Hovey's account, which Is full
OF interesting and hitherto unrelated
circumstances Is evidently derived
from an authentic source. Negotia-
tions had been begun between the
treasury department and Morgan to
relieve the situation, but had been
broken off by Cleveland's direction.
The morning after the defeat OF the
Springer bill, Morgan left for Wash
ington accompanied by his partner,
Robert Bacon. and his lawyer, Francis
Lynde Stetson. Secretary Of War
Lamont met Morgan at the station
and informed him that Cleveland
would not consider a private bond
sale and would not see him. Morgan
and his party went to the Arlington,
where they learned from treasury Of
ficials of the imminence Of the crisis.
Morgan sat up all night playing soli-
taire. The next morning he told his
partner that he had evolved a plan.
He remembered that when he was q
young man Lincoln had faced the cris-
Is OF an empty treasury. and that he
had had an act passed authorizing the
president to purchase gold whenever
the government needed 1t. and that
he thought this statute was still on
the books.
Cleveland Receives Morgan.
While at breakfast, President Cleve-
land sent for him. The story con-
tinues:
The presidents greeting was very
short and formal. Mr.. Morgan looked
at him and ga wthat he was not smok-
ing, so he did not light his own cigar.
He and Bacon sat down at what was
destined to be q memorable confer
ence. Mr.. Cleveland reiterated his de-
termination not to consent to sale
OF government bonds to a syndicate
of bankers or otherwise. He dis
cussed the situation with his official
advisers while Morgan and Bacon sat
at spectators in the scene. The min
utes grew into hours. Mr.. Morgan
was not asked to make any sugges-
ton. The president was striving with
his own advisers to find a way out
of the difficulty and was determined
to do 1t, II possible. At last, mem
orandum taken from a telephone mes
sage showed that there were but
nine million dollars of gold left in the
New York sub-treasury. At this point,
Mr.. Morgan broke his silence. He
said: Mr.. President, the secretary
of the treasury knows OF one check
outstanding for twelve million dol
lars. II this Is presented today, 1t Is
all over
"Mr. Carlisle had told him the even
ing before at the hotel about this
check. He had had It 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 frst time and
said: Have you anything to sug-
gestT
Morgan Shows the Way
ITO this man who Is accustomed 10
taking the initiative in things, II had
been an ordeal to sit silent and In
active that morning at the White
House. When he began to speak, he
talked rapidly. He told the presi-
dent of his recollection Of that Sec
ton number four thousand and some
thing of the United States statutes.
"At word from the president,
Atty. Gen. Olney stepped out OF the
room and In a moment returned with
the book OF Revised Statutes. he
told the president that what Mr.. Nor
gan had said was perfectly true, that
this act was known as Section NO.
37OO.' and that from a casual exam
ination he thought II was still In
force. Mr. Cleveland quietly took the
book from his hand and with deep
concentration read the act to himself.
Everyone in the room sat In the
silence of deep suspense. When the
president had concluded the reading
OF the section, he laid the book slow
lv on his desk and then his face light
ed ND with almost smile OF relief
and he said: Mr.. Morgan, ! think
the act is ample for our needs ana
mat II will solve the situation
after the details OF the loan had
been discussed, all arose from their
seats. and someone said: Mr.. Nor
gan. what Is that brown powder on
vour trousers and clothes and all
around your chair?' He looked down
quickly. II was his after-breaktast
cigar. that he had been holding In
his hand unlighted as he entered the
roo mand which. as he sat there. he
had unconsciously ground to pieces
until Il Uttered the carpet. The pres
ident laughed, and reaching for a box
OF cigars. told Mr.. Morgan thas l. was
time for him 70 have a smot" ana
sd5ed that he wished Mr.. Lorsar
vou,e remair wtiie he d'c'at'd The
sro.ial messs 70 in ordtr TO sec VI u