Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1911-04-06
THE CLEVELAND BOND ISSUE.

THE CLEVELAND BOND ISSUE.
5howed President How to Meet Nation.
a! Crisis.
What is claimed to he the true lin
side stor;," OF the famous Cleveland
gold bond issue of 1896. including the
intervie" that tool place between
Morgan and Cleveland al the White
House. is published in the Metropol-
itan Magazine as one of the chapters
of Carl Hovey's Life Story of j.. Pier
pont Morgan" The article shows that
Cleveland held out un to the very last
of bankers: that it was not until the
Springer bill, authorizing a popular
loan. had been defeated and the gold
reserve in the treasury had been re-
duced to a few millions that he would
consent to see Morgan II that in the
negotiations that followed between
these two it was Morgan himself who
pointed out to the president the statute
by which the private loan could be
made constitutional.
Mr.. Hovey's account, which is full
of interesting and hitherto unrelated
circumstances. is evidently derived
from an authentic source Negotiations
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 Washington. accom-
panied 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. Nor
gar and his party went to the Airing
ton. where they learned from treasury
officials of the imminence of the
crisis. Morgan sat up all night play
ing solitaire. The next morning he
told his partner that he had evolved a
was a young man Lincoln had faced
h crisis of an empty treasury and
that he had had an act passed author
izing the president to purchase gold
whenever the government needed It.
and that he thought this statute was
still on the books.
While at breakfast, President Cleve-
land sent for him. The story continues:
The presidents greeting was very
short and formal. Mr.. Morgan looked
at him and saw that he was not smok-
ing. so he did not light his own cigar.
He and Bacon sat down at what was
destined to be a memorable conference.
Mr.. Cleveland reiterated his determine
ton not to consent to a sale of govern
ment bonds to a syndicate of bankers
or otherwise. He discussed the situa-
ton with his official advisers while
Morgan and Bacon sat as spectators
in the scene. The minutes grew into
hours. Mr.. Morgan was not asked to
make any suggestion. The president
was striving with his w advisers to
find a way out of the difficulty and
was determined to do it. IL possible.
At last, q memorandum taken from a
telephone message showed that there
were but 9,OO0, 900 of gold left in the
| New York subtreasury. At this point,
Mr.. Morgan broke his silencen. He
said: Mr.. President, h secretary of
the treasury knows of n check out
standing for 1921 00, 900. If this is pre-
sented today. 1t is all Over.'
mi. Carlisle had told him the eve
ming before at the hotel about this
check. He had had it in his mind every
minute since that time. The secretary
the president then turned to. Mr.. Nor
gar for the first time and said: Have
you anything to suggest?'
&c this. man who is accustomed to
taking he initiative in things, It had
been an ordeal to sit silent and inactive
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.
AT a word from the president, At
torney General Olney stepped o. Of the
room and in a moment returned with
the book of Revised Statutes. He told
the president that what Mr.. Morgan
had said vas perfectly true, that this
act was known as Section No. $780,
and that from a casual examination he
thought 1t was still in force. Mr.. Cleve-
land quietly took the book from his
hand and with deep concentration read
the act to himself.
Everyone in the room sat in the ST.
lence Of deep suspense. When the
president had concluded the reading
Of the section, he laid the book slowly
on his desk and then his face lighted
up with almost q smile of relief and he
said: MI. Morgan. / think the act is
ample for our needs and that it will
solve the situation
after the details of the loan had
| been discussed, all arose from their
seats, and someone said: Mr.. Morgan
what 10 that brown powder on your
trousers and clothes and all around
your chair?' He looked down quickly.
It was his after-breakfast cigar. that
he had been holding in his hand un-
| lighted az he entered the room and
which, AZ he sat there. he had uncOn-
| ociously ground to pieces until Il lit.
cred the carpet. The president laughed
| and reaching for a box Of cigars. told
Mr.. Morgan that It was time for him to
have q smoke and added that he wished
Nj. Morgan would remain while he die
4 t0fed the 4neCial MESSAGE In order IN