The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1912-03-22


one point of view and they from anoth-
er.
Mr.. Carlisle's task was trying far be.
yond the ordinary duties of the head of
the treasury department. He had
been at the head of the department
only a few months whenithe great cur
rency panic of 1893 occurred, and dur
ing the greater part of his administra-
ton. panic conditions, which were the
result of a reaction from a period Of
overexpansion and. the steady with.
drawal of gold from the federal treas
ury, continued. MI. Carlisle's chief
task was to maintain the gold reserve
in the treasury, which was constantly
being depleted by the so-called endless
chain process, which was merely the
use Of greenbacks over and over
again. The exhaustion of the gold re.
serve meant that the government
would lapse to a silver basis. That
was narrowly averted in 1895 by the
formation of the Morgan-Belmont syn;
dtcate, which sold to the government
the gold 1t needed, and guaranteed to
stop the expectation of the yellow met
al.
Before that syndicate was organized,
however. the government borrowed on
two occasions $50 OO. 900 for the pur-
pose of replenishing the gold reserve.
The secretary Of the treasury had to
negotiate the sale of the bonds for the
gold in Wall street. He had very de:
cided views as to what the bankers
ought to do in connection with the
loans, and he made those views plain.
With him 1t was a question Of helping
cut 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 irri:
tation. Some OF the bankers dis.
posed to think that the secretary had
been unduly dictatorial in his attitude
toward them.
When the second sale of $50. O00, 600
Of bonds was authorized, the effect of
the previous negotiations was discern
able Many Of the bankers showed a
lack OF interest. 1t seemed likely that
they. would ignore the secretary when
he came to seek their participation In
taking up the new issue.
1t 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 It
He sat up the best part Of one night
thinking about It.
1T would be q national calamity IL
there should not She n general aud
hearty response or the part Of the
bankers to this new offering Of bonds,''
he said to himself. Il will do what
! car personally. to make the bond
sale a success"
The next day he got In touch either
personally or by phone with all tho
bankers whom he suspected Of being
oflsh or lukewArm.
~ donttsknow what you sre thinking
OF doing with reference to this new
bond ISSUE" he said to them" but It
seems to me that there ia Just one con
sideration that ought to govern our
action in this case and that, is pa
trtotisnl. This is a matter that In.
wolves the bOnor Of our government.
the maintenance Of it's credit before
the world. II this hond isxue is not
instantly, subscribed to a,esgraat blow
will be given to national credit,
which We az citizens viii lament.
! appeal to you not to let any personal
feeling. any resentment In any quarter,
Influence you. In a crisis like this We
ought to ignore any such feelings, and
remember that we : American cit
isens."
In every instance the fnancierA to
whom Mr.. Stewart thus Appealed re.
sponded fayorably. The banks and
private bankers each took the allotted
proportion Of the s5o.00o.0oO loan. and
~ the next day the gold was In the
ssyub.treasury. and the, government had
escaped iapsing 70 . silver basis. which
Nj. Carlisle had said would bs newt,
able unless gold was Instantly :
erred.
icopyrieht. 1911 by e. J. Edwards. An
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Told BY zangWilL. Fl
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