Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-10
WE'RE IN THE SADDLE
The EHete East Being Taught a
Lesson in Financiering.
WALL STREETS GLORY GONE.
How the Bond Extension viii Give the South
and West More Money to Use.
The Gold Going to the Old Lady in
Thread-Seedle Street is to Pay for the
WALL STREETS GLORY GONE,
The Gold Going to the Old Lady = in
Thread-Seedle Street is to Pay for the
Pretty Gowns of Dame and Damsel.
The Bond Redemption.

Special TO the Gazette.
WAsHISGToS, June 9.-The echoes of
Secretary Fosters visit to New York are
still heard about the treasury A veteran
officer of the treasury department said TO
GAZETTE correspondent to-day: In this
matter of extending the A per cent bonds
the secretary proposed to make whatever
extensions We're necessary at from to | 4
per cent. This had been talked about
i'll the press for some time, vet no New
York banker had raised his voice against
il. Had the banking world of the West
been opposed to the idea, YOU would have
seen twenty delegations on here in a week
TO stop it, but not until the secretary goes
over to New York and says Here. gentle
men. I've come $50 miles to find out what YOU
think of my plan, docs one:of the financiers
speak. Then all join in the chorus and
deprecate the lowering of the interest rate
below 2per cent. Why Because it would
tend to drive them out of the circulating
note business and that would mean con-
traction OF the currency which the business
of the country cannot stand. Yet these
same men when threatened with an extern
tension of silver coinage or of
the amount of monthly purchases by
the government pleaded that the currency
was already redundant. Now if the sec
rotary concludes to go ahead on the
strength of the support offered him from
the West and South and renews at l or 4
per cent, it is hard to see how the currency
is going to suffer any violent contraction.
In the first place, with every bond that
he redeems, 10 per cent more currency
will be set free. since the bank notes now
issued represent only 80 per cent of the face
of the bond behind them. Moreover, if the
rate of interest is reduced, so much less
money need be taken out of the channels of
trade by taxation to meet annual interest
charges, and any surplus which the govern
ment may acquire besides its running eX-
penSeS will be turned back into trade again
by purchase of per cents at a good pre-
MUM the next time i financial pressure
occurs. ...-....--....
There was a report in circulation at the
treasury to-day that the treasurer had con-
cluded, after consultation with Secretary
Foster, to suspend publication for the pres
ent of the statement of assets and liabili-
ties, since ii served to keep very Wv
idly before the public the steady decrease
in the net cash balance. This balance has
now reached about S4,000.000. 1t is con-
tended in behalf of the present secretary
that his reluctance to change needlessly any
of the forms of bookkeeping which
have come to him as an official inheritance,
embarrasses him severely in this matter
He regards, for example, the fractional
silver now awaiting recoinage as available
cash assets, which would add something
more than twenty millions to his net bal
ance and it is probable that the form of
daily statement will be so changed
very soon as to include this among other
available cash. Such 4 course is deemed
particularly desirable in view of the fact
that the receipts of the government
from customs and internal revenue
together average only a few hundred
day. That the appropriations
by the ''billion dollar congress-
begin to be operative on the fist day of
July, three weeks hence, and the net cash
balance by the present showing has fallen
off during the last three weeks at the rate
of between &, 600. 900 and $4,000 900 a week