ment $65,117,000 worth of gold for four per cent, bonds of the nominal value of $62,317,500. The difference between these sums represented the premium on the bonds, making their price equal to 104.49, and the rate of interest three and three-quarters per cent. These bonds, authorized by the act of July 14, 1870, were payable in “coin.” According to the talk of the silver men in Congress they should be paid in silver. According to the cowardly duplicities of the politicians in Congress who, although not silver men themselves, constantly bid for the silver vote, those bonds might be paid in silver. The syndicate was willing to run that chance; but it offered to take three per cent, instead of four per cent, bonds, if Congress would, within ten days, make them specifically payable in gold. President Cleveland communicated this offer, together with the whole contract, to the House of Representatives, strongly recommending that the terms of the offer be complied with, as more than $16,000,000 would be saved in interest during the time the bonds had to run. It seems almost incredible, but the House deliberately threw away that saving because a large majority of the members were too much afraid of the word “gold” to accept it. But by far the most important provision of the contract was that by which the most powerful American and European banking houses bound themselves not only to bring at least one-half of the gold to be delivered from Europe, but also to “exert all financial influence and to make all legitimate efforts to protect the Treasury of the United States against the withdrawals of gold pending the complete performance of the contract.”
When the conclusion of this contract became known, the panicky feeling subsided instantly. The run upon the Treasury ceased. Bankruptcy was averted. Every intelligent person knew that with the organized coöperation of such forces, which, having been secured once, could
