Daily tobacco leaf-chronicle. (Clarksville, Tenn.) 1890-1895, 1891-06-05
FINANCIAL FLURRlES.
Secretary Fosters Position on the Bond
Question.

/
Question.
NEW YORK, June 8. 5.--Secretary Foster
arrived in town at dusk Wednesday
evening. He had been expected for a
week or more. With him was private
stenographer, and the indications are
that he proposes to do some investigat-
ing on his own account. Senator Calvin
s. Brice was at the hotel to welcome
him and to dine with him.
The Sun Thursday said;
THE secretary will have busy day.
The program mapped out for him is
visit to the sub-treasury in Wall street
just before noon for informal confer
ences with the banking people and
Others.
Some misunderstanding has come up
about the redemption of the four-and-a-
half per cent. bonds. For several weeks
it has been understood that the secretary
favored plan by which the 1923, 600, 600
of these bonds held by the banks to Sc
cure deposits were to be extended from
Sept l at 2 per cent. interest. 1t was
stated last night that the secretary him
self has never indicated the figures at
which these bonds would be extended.
If any misunderstanding has occurred,
1t was said, the bankers themselves are
at fault. They have certainly believed
all along that the bonds were to be ex-
tended at per cent. interest.
"They were surprised yesterday at
the secretary's official announcement
that some of the bonds might be extend
ed on the basis of to 1-2 per cent. in
terest. They were not only amazed, but
lax al hnI hoe
fancy in saying that the change Of base
was dictated at the cabinet meeting
called to discuss this matter ON Monday.
Some were even frank enough to add
that, while Mr.. Foster adhered to the
original plan of extending the bonds
held by the banks at per cent. Presi-
dent Harrison and others thought that
to 1-2 per cent was sufficient. The
secretary will discuss this situation with
the bankers to-day. The bankers hold
ing the $23, 100000 of fours-and- d-a-half
may do one of three things. The first is
an extreme proceeding and considered
inadvisable.
ut is in effect that they should with
draw themselves as National deposi-
tories. The banks would lose prestige
by such a movement, and it is not be-
lieved that they will adopt such a plan.
The second is to purchase four per cent.
bonds, but this is not considered good
policy in view of the high premium.
The third thing, and the thing which
will undoubtedly be done, is to hand in
their bonds and to receive the rate of
interest mentioned in the Secretarys
circular. 1t was also announced that
Secretary Fosters attention would be
called to the continued gold shipment.
THE cable news from London yestero
day announced that thirty-two banks in
England had joined with the Bank of
England in making the minimum rate
of interest 3-4 per cent. This rate is
favorable to return of some of the gold
to America which has been shipped in
the last few months. With the engage
ments thus far this week the total ship
ments this year foot up $64, $4,000.
Henry Clews issued proclamation
yesterday in view If this situation, which
was discussed by members of the clear
ing house association, Russell Sage and
other large lenders of money. Mr.. Clews
points out that the shipment of Ameri-
can gold has increased the Bank of En-
glands reserve from 80 to al per cent.
HE says that the recent rates of in
terest demanded by the Bank of En-
gland have been artificial, and the result
of conspiracy to keep our gold abroad
to the detriment of the American people.
He further charges that in December
last New York drew on London for $5.-
10000 of gold. The Bank of England,
he says, at the time had plenty of Amer
ican gold, but instead of giving us that
they turned over to us sovereigns, and
abraided ones at that.
1.-The sub-treasury in New York, his
proclamation continues, would not be
perfectly justified after that treatment
in refusing to deliver for export purposes
any more gold in denominations higher
than $5 and in insisting upon putting in
all the abraded coin.
This proclamation provoked discus
sion of the advisability of Combine"
of banks and trust companies here by
which uniform rate of interest was to
be established in New York high enough
to prevent further gold shipments.
Whether the secretary will consent to
turning over to the foreign shippers our
abraded So coins is another question"