Los Angeles herald., 1890-12-09
FINANCIAL STRINGENCY
SECRETARY WINDOWS EFFORT TO
REDUCE 1T.
He Continues to Buy Bonds at Enormous
Premiums-The Wall Street Gold Bugs
Consider His Actions Favorable.

WASHINGTON, Dec. S.-The treasury
department today purchased ZOO
ounces of silver at from $1.02S to 81. .0350.
The amount of four per cent. bonds ac-
cepted today was 1851 900, for which a
disbursement of about $5550,000 in
money will be made. The secretary OF
the treasury said this afternoon, that in
view of the conditions, he would accept
additional offers of fours at a reasonable
price, of sufficient amount to make the
total purchases $4,000 for which he
said the expenditure will be nearly $1O,-
100000.
The secretary said further, it is mani
testify impossible, under the existing
conditions, for him to use the federal
currency now in the treasury in the pur-
chase of bonds; for the reason
that it would at once be re-
turned to him in exchange for
greenbacks, and leave him with de-
ficiency instead of surplus. There is
now almost $4,000, 900 of fractional cur
rency in the treasury, of which all but
100000 is silver half dollars. AS it is
legal tender to the amount of ten dollars
only, it is regarded as part OF the avail
able cash balance. The secretary said
he would like very much to get it into
circulation, but certainly should not do
so at the expense of the limited avail
able surplus.
Bland today introduced bill in the
house, authorizing the secretary OF the
treasury to prepare new series of legal
tender notes or greenbacks, which,
when the ordinary revenues of the gov
ernment are not sufficient to meet the
requirements, he is to pay out in suff-
cient sums to meet all demands and
dues.
WISDOM DOING ALL HE CAN.
New YORK, Dec. S--The Sun prints a
long report of an interview on the finan-
cial situation held by its Washington
correspondent with Secretary Window.
The secretary says the treasury depart
ment is doing all it can to relieve the
present stringency, and will continue on
the same line of policy followed up to
this time. The stringency, he says, is
not the result of the contraction of cur
rency, and there mas never been time
in the governments history in an era of
peace when so much was flowing out of
the treasury into the country.
The treasury has put out over
500, 100000 within the last nineteen
months, with no appreciable effect, and
he thinks the money is boarded. The
500, 900, 900 in gold, held as a legal ten
der reserve, never will be disturbed with
his consent. He might possibly call on
the $24 ,000,0 900 deposited in the national
banks, but he does not think this would
be very popular proposition at the
| present time. In conclusion he says
whatever he may do toward allaying the
uneasiness in monetary circles, he does
not propose to let the treasury become
bankrupt.
WALL STREET OPINION.
Wall street opinion is that Secretary
WINDOWS circular, calling for proposals
for the sale of $5000,0 four per cent.
bonds, as expressed this morning, is
favorable as affording some relief itself
to the monetary stringency, but still
more so from Windows statement to
the New York Sun correspondent, pub
lished this morning. Wall street re-
CARDS this as an intimation of future
early action in this direction on the part
OF the secretary OF the treasury. The
improvement in the opening prices this
morning is attributed as much to this
anticipated action as to the circular
calling in the four per cent. bonds.