The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1883-01-06
Governments Gold.

Washington, 5-The probable reduce
ton of the geld reserve below 500, 000,-
0O9 and the consequent necessity for stop
ping the issue of gold certificates, is not q
serious matter, but there is reason for II
of some significance. Government may
redeem the gold certificates in gold. 10
practice it redeems greenbacks in gold
It was feared if gold were reduced, specu-
lators might turn their greenbacks, which
government could redeem in either metal
into gold certificates and embarrass the
treasury by reducing the amount of liRbil-
tiles on which silver might be paid, and
increase the amount On which gold must
be paid. The amount of gold 10 the
treasury would not be changed, but it
would be transferred from green back
security to certificate security. For ex
ample 8 man might present green backs
for red mption; and gold would be Of
feTed for them. He would Immediately
redeposit the gold and take out certif-
estes. The gold would then be security
for the certificates, and the amount of
gold to secure green backs would be re.
duced 50 much lower that the gold cer~
tifcstes should lOt be issuedwben the
gold available for the redemption of
green backs was reduced below 500 Co.,
600. 1t was the intention that Sl00,O0O.-
coo of gold should be kept as q reserve
for green backs, but here occurs 3 sort
Of double shuttle. The gold to secure
green backs is not kept separate from
other gold In the treasury. The reserve
Is made up of god ard silver coin, bull
lion and Ger ifcat5s. As long as there is
more than Sl0,090,0O0 gold 10 the treas
ury and the reserve is not less han $780,
100000, no MISTER how much silver,
smsll change and certificates there is on
hand it cannot be shown there ia not
100000 0C0 of gold coin available Tor
green back REDEMPTION On the other
hand, the moment the reserve falls below
500 100000, no matter how much gold
there may be in the treasury it is evident
there can't be S o., 000, 600 of gold coin
behind the green backs. There are now
SIG, 0O0, eco GOLD coin and bullion in the
treasury, bus the. reserve is less than
SIP, GOO, coo, and the treasury contains
considerable amount OF sgIver dollars,
small change and certificates and as
much OF gold rs pledged for Ger ifcates
and other purpo+es. 1t is Highly i'm
probable that there Sl00 900 con gold
coin at the present time rs security for
greeubsCks and whatever the amount
Is it must be materially reduced
by the redemption of bonds under the
last two calls, and what is called the
agreement of November %. In fact, the
last treasury statements ows the excess
OF gold coin over gold certificates is uo-
der SIS, 0O0,0 GOO, but $500 coo of the gold
certificates aee still in the hands OF as
sistart treasuTers, and besides the gold
coin there is DeSrlV $50 900 gold bullion
in the treasury. Ia view of these facts
any further call for bonds this fiscal year
is highly improbable. Secretary Folger
has put the treasury whereit could not
relieve the money market much during
the next six mouths, whatever the emer-
gency might be, and ne has reduced the
gold coin reserves for green bscks below
the point where q conservative banker
would want security for his outstanding
circulation.