This created a constant drain on the gold reserve of the Treasury, and to replenish it loans by bond sales had soon to be resorted to.
Such bond sales, open to the public, were made in January and again in November, 1894, but not without some difficulty. They did not stop the drain. Bonds were sold for gold. That gold was put into the Treasury. The distrust continuing, greenbacks were again presented for redemption, and thus that gold drawn out of the Treasury. The greenbacks were paid out again by the Treasury for current expenses, and then they were again presented for redemption to draw out more gold. It seemed indeed like an “endless chain,” as Mr. Cleveland called it. Early in 1895 the situation became very critical. On the 28th of January the President sent a message to Congress pointing out the dangers impending and asking for the passage of a law authorizing the Secretary of the Treasury to sell three per cent, gold bonds running fifty years. Congress had repeatedly shown its unwillingness to adopt effective measures for the relief of the Treasury, and did so this time. The apprehensive temper of the business community grew into actual alarm. A regular run began upon the Treasury for the gold in it. On the 8th of February the gold holdings were reduced to $41,300,000, and this amount consisted almost wholly, not of coin, but of bars. The Treasury was in a state of utter helplessness to meet the run, which threatened to spread as it went on. The Republic was within a hair's breadth of bankruptcy. Only the promptest help could ward off the catastrophe.
Then President Cleveland did a thing which exposed him to measureless obloquy and defamation, but saved the country from incalculable confusion, calamity and disgrace. The famous syndicate contract was made with New York bankers, who drew the foremost banking houses of Europe into coöperation. They sold to the Govern-
