Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-01-23
Patriotic Appeal That Saved
Uncle Sans Credit.
john 4. Stewart Came 10 the Rescue
When New York Bankers Hesitat.
ed TO Take Bonds Issued in
Cleveland Administration.
BY z. J. EDWARDS.

Cleveland.s second administration. was
several times more or less at ODDS
with the New York bankers. That bis
relations with them were sometimes
strained was not either his fault or
theirs. 1t was the Inevitable result
OF the extraordinary financial ccndi-
lions Of the time. which he saw from
one point of view and they from anoth.
CT.
Mr.. Carlisle's task was trying far De-
yond the ordinary duties OF the head OF
the treasury department. He had
Eeen 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 admtnistra-
ton, panic conditions, which were the
result of T. reaction from a period OF
oyerexpanslon and the steady with
dra~al OF gold from the federal treas
urv, continued. Mr.. 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 silver basis. That
was narrowly ayerted in 1895 By. the
formation O. the Morgan-Belmont syn.
dicate., which sold to the government
the gold 1t needed, and guaranteed 70
stop the expectation Of the yellow met
al
Before that syndicate was organized,
however, the government borrowed on
two occasions s50.00O.000 for the pGr-
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 II was question 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 irri-
tatlon. Some OF the bankers were dis.
posed TO think that the secretary had
been unduly dictatorial In his attitude
toward them.
When the second sale OF $50, 000,0 900
Ct bonds vas authorized the effect CT
the previous negotiations was discern.
able. Many OF the bankers showed q
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. :
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 It.
He sat up the best part OF enc night
thinking about It. T..
1T would be national calamity II
there should not be Il general and
hearty response on the part of the
bankers to this new offering OF bonds
he said to himself Il will do what
| can. personally. TO make the bond
gale q success.
The next day he got in touch either
personally or by phone with all the
bankers whom he suspected OF being
offish or lukewarm.
Il don't know what you are thinking
OF doing with reference to this new
bond issue he said to them but 1t
seems to me that there is just one con-
sheraton that ought to govern our
action in this case and that is pa
iriousm This is matter that in
wolves the honor Of our government
the maintenance of its credit before
the world. II this bond issue is not
instantly subscribed 10 great blow
will be given TO our national credit.
which we as, citizens will lament.
/ dUpSul W you W ISl any pcl6ouoI
feeling; any resentment In any quarter
influence you. In crisis like this We
ought to ignore any such feelings. and
10 remember that We are American cit
liens"
In every instance the financiers to
whom Mr. Stewart thus appealed re.
sponded favorably. The banks and
private bankers each took the allotted
proportion of the s50,000.000 loan, and
by the next day the gold was in the
sub-treasury. and The government had
escaped lapsing to silver basis, which
Mr.. Carlisle had said would be newt
able unless gold was instantly ge.
cr-ed
Copyright. 1911. by f. j. Edwards. Al
Rights Reserved