Evening journal., 1911-09-27
NEW NEWS OF YESTERDAY
The Patriotic Appeal That
Saved Uncle Sans Credit
By Holland

The late John G. Carlisle, as Secre-
tary of the Treasury during President
Cleyeland's second administration.
was several times more or less at odds
with the New York bankers. That his
relations with them we're sometimes
strained was not either his fault or
theirs. It was the inevitable result of
the extraordinary financial conditions
of the time, which he saw from one
point Of view and they from another.
Mr. Carlisle's task was trying far
beyond the ordinary duties of the
head of the Treasury Department. He
had been at the head of the department
only few months when the great cur
rency panic of 1893 occurred, and dur
ing the greater part of his admiuis-
tration, panic conditions, which were
the result of a reaction from a period
of overexpansion and the steady with
drawal Of gold from the federal tres-
sury, continued Mr.. Carlisles chief
task was 10 maintain the gold re-
serve In the treasury. which was con-
stantly being depleted by the so-caii-
ed endless chain process, which was
merely the use Of greenbacks over and
over again. The exhaustion of the
/ gold reserve meant that the govern
ment would lapse TO silver basis.
] That was narrowly averted in 1895 by
/ the formation of the Morgan-Belmont
Syndicate, which sold TO the govern
ment the gold It needed, and guaran-
teed to stop the expectation of the yell
! low metal
Before that syndicate was organ
! lied, however the government bor-
rowed on two occasions $50, ,00O.O00 for
the purpose of replenishing the gold
reserve. The Secretary of the Treas
ury had to negotiate the sale Of THE
bonds for the gold In Wall street. He
had very decided views as to what
the bankers ought to do in connection
with the loans. and he made those
views plain. With him it was a aues-
tion of helping out the government
The bankers, as business men, also
had their views as to what they ought
to do, and they thought those views
were entitled to consideration. Mr..
Carlisle succeeded IN disposing of the
first lot Of bonds. nevertheless, but
the negotiations left in their wake a
certain amount of irritation Some of
the bankers we're disposed to think
that the Secretary had been undnly
dictatorisl in his attitude toward
them.
When the second sale of $4,000, 900
of bonds was authorized. the effect OF
the previous negotiations was discern
ible. Many of the bankers showed q
lack of interest. II seemed likely that
they would ignore the. Secretary when
he came to ask their participation in
taking up the new issue.
II seemed very likely to one man
in particular, and that man was John
A. Stewart, the president of the United
States Trust Company. The more he
thought about it, the less he liked II
He sat up the best part Of one night
thinking about IL.
"It would be a national calamity il
, there should not be a general and
/ hearty response on the part Of the
bankers 10 this new Offering OF
bonds" he said TO himself. Il WIZ dc
what I can, personally, to make the
bond sale a success
The next day he got in touch either
personally or by phone with all the
bankers whom he suspected of being
4, offsh or lukewarm.
Il don't know what you are think.
= I luB u uOAnE Win AtANANhtC " 'AAa
new bond issue" he said to them
but it seems to me that there is just
one consideration that ought to gov
ern our action in this case and thai
Is patriotism This is a matter that in.
wolves the honor of our government
the maintenance of its credit before
! the world If this bond issue is moi
instantly subscribed to great blow
will be given to our national credit
which we as citizens will lament
appeal to you not to let any personal
9 feeling, any resentment in any quar-
ter, influence you. In a crisis like thii
. we ought to ignore any such feelings
and to remember that We are Ameri
can citizens"
In every instance the financiers &c
! ! whom Mr.. Stewart thus appealed re
sponded favorably, The banks anc
private bankers each took the allotted
? proposition of the S5O,000,O00 loan
and by the next day the gold was II
the sub-Treasury, and the government
y had escaped lspsing 20 a silver basis
3 which Mr.. Carlisle had said would b
= inevitable unless gold was instantly
secured.
Copyright. 1911, by f. j. Edwards. Al
rights reserved.
= Tomorrow Mr.. Edwards Will tell o
ssThe Turning Point In the History o
] Dali AZ