Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-08-15
Special Telegram to the Philadelphia Times.
MASsvIEIp Ono Augus

Wnie politics were warm yesterday and Mai.
Mehiniey and a woman by the name of Diggs,
from Kansas, who represents the Farmers
Alliance, were debating economic questions
over IN grove some twelve miles distant from
TINS place, speeches upon grave subjects we're
oeinS made by two distinguished men in this
town.
ibe audience consisted of only two and they
were also the speakers. The conference was
an important one, if it may be SO designated.
put In reality IT was q friendly communion
between two important men who were fencing
each other upon national financial affairs and
Tue present CONDITION OF the money market
THE FOUR AND A HALF PER CENT BONDS.
Ever since Charles Foster became Secretary
OF the Treasury there has been more or LEES
olinculty about adding TO the circulation, and
when he proposed the scheme of continuing
the IA per cent bonds at per cent interest II
was expected that the offer would be taken with
svidity.
After making due arrangements for its ac-
ceptance. Secretary Foster came 10 his home at
Fostoria for short visit, and then went TO Mid
dlebass Island, in Lake Erie, for a rest
Inns Is fayorite spot for tired buckeye poll
ticlans. Mr.. Foster resting comfortably
and enjoying himself with important men that
he knew, who every year 60 10 Middlebass for
comfort and repose. when he summoned
from his pleasures by the announcement that
WhAe the banks were generally willing TO ac-
cept his proposition the people who held the
Al per cents were not, and after siN
weeks Of trial only little over els 0Jo, 900
out OF S5l COZ. 900 were continued under the
Secretarys scheme.
FOSTER NOT SATISFIED.
He was not particularly content with this
showing and started at once for Washington,
but came here first to see Senator sherman.
Last evening while Maj. Mckinley was address
ing the husbandmen at Blackman's Grove
where they were holding a picnic. Mr.. Foster
reached Mansfield tor consultation with tie
ATTEST financial authority in the town.
he had wired Senator sherman of his ap-
proach, and the statesman was at the depot to
meet the Secretary. They drove at once to Mr..
Sherman residence and then began one of the
most important talks upon financial matters
that has taken place ia this country for q long
time 1t continued for five hours, durin z
which the entire financial situation was re-
viewed. and the question of continuing the y,
per cent bonds was naturally the central figure
OF the discussion.
POLITICS LAID ASIDE.
Politics or the present situation in Ohio did
not cut a prominent figure in the conference.
Secretary Foster put some very interesting n.y.
pothetical and practical questions to Senator
Sherman, which very soon demonstrated the
TACT that the ex-Secretary did not agree with
the present one about continuing the ass.
secretary Foster took no pains to conceal the
TACT that his idea in endeavoring to continue
the s5l,OO0.OO0 of AZ per cents at per
cent was TO the money in other directions
for the relief OF trade. He thought that the
stringency Of the market could be relieved if
this project could be carried into effect. But
II only Sl2OO0.000 or go. 000. 90 out Of the
sol, ,Oco could be turned to account. there
was some other plan necessary to he considered
Instead OF the one he had proposed.
SENATOR SHERMAN DIFFERS.
Senator Sherman did not share the Secre-
tary's views upon the subject He thought that
Secretary Foster should pay the AZ per cents,
and he undertook to show the new hand in the
Treasury Department how easy it was for him
| to do 1t without making trouble in the financial
world. The question of where the money was
to come from was freely discussed. The ex-
Secretarys position was that with the money
already In the treasury, what could be spared
| from the sinking fund and what accrued In the
meantime, the sum SO gathered would be suffi-
Gent to pay off the bonds when due.
1t Was evident from the discussion that Sem
ator Sherman never had been in sympathy with
the scheme OF continuing the AZ per cent
bonds instead of paying them OF when they
matured.
THE SENATOR EXPLAINS.
He explained to the new Secretary, IL the
chat may be called an explanation, that the
month Of July, the worst one in the year. had
been passed in safety and that now gold would
return to our exports began: that the
movements of the splendid crops and the pay
ment of new revenues would make things easy,
and that the bonds could be paid or retired
without difficulty danger.
As about SIS, 000, 600 had already been con-
tinued, it left only S33 Coz. 600 to be provided
| for and tue ex-Secretary considered that II was
easy to make provision for them.
The question of what effect the retirement OF
these securities, that have been held by the
national BANKS as a deposit for circulation
would have upon the banking system was ma
| turally one OF the features of the discussion
| Senator Sherman did not think it would have
any, except to eventually somewhat change its
| character. His opinion is that while il will
| not change the system, that after these bonds
which are held as guarantee for circulation
| the government would issue the notes directly
| from the Treasury Department upon the de-
post OF bullion in the Treasury Department to
| cover the amount issued
WOULD NOT AFFECT THE BANKS.
Mr. Sherman took the ground that it would
not affect the banks, and that they would very
soon adjust themselves to the new condition
when the government would furnish the cur
rency to them direct while they are the bankers
for the people.
\ How far Secretary Foster accepted or will
accept Senator Sherman's views upon this sub
tect remains to be seen: Being a banker him.
self and having dealt in practical financial
affairs all his lite his idea III proposing to con-
tinue the AZ per cent bonds at per cent was
| to keep in force the present standard for the
| time being and thus avoid any friction or new
experiments at time when people are begging
for more money.
FosrEn's IDEA
While Secretary Foster may recognize the
fact that the time is fast approaching when
there must be q change, his idea in desiring to
continue these bonds at this low rate OF inter
est Is to ward off any shrinkage until Congress
shall have an opportunity to pass the necessary
laws for the change. That would give them
time for the adjustment Of the present fnan-
cial dificulties
One Of the serious and interesting phases Of
| this question il the svidity with which COO out
Of the 800 national banks holding these bonds
accepted Secretary Fosters idea, while the peo-
| pie seem generally averse TO the proposition.
That was decided 70 be perfectly natural, in
view Of the fact that the people are clamoring
| FOR money, while the national banks are very
| glad to be left alone upon tho present basis or
the new one the Secretary proposes. Whether
Secretary Foster will accept OF the wisdom he
received last night in the i've hours talk he had
with Senator Sherman remains to be seen.
| FOSTER LEAVES FOR WASHINGTON.
But he took the IL 80 train for Washington to
decide upon his course after his arrival at the