Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1891-06-05
MORE WINDOWS"
Secretary Foster Consults the
New York Bankers.
TWO PER CENT. EXTENSION ADVISED

The Suggestion Taken Under Considera-
ton with Probability of Its Adoption
{ Promise of an Increase in the Circula-
tion of S2S, 600, 900 Under the Plan-The
Secretary Makes Speech to Brooklyn
Club-Senator Hale Talks About Blaine
Virginia for Cleveland.
NEW YORK, June 5.-Secretary Foster
met large number OF bankers at the sub
treasury yesterday to discuss the extern
sion of the ~ per cent. bonds. After dis
cussion Mr. Seligman was called TO the
chair and the following resolution unan-
imously adopted: That this meeting,
composed of representatives of banks,
trust companies, and bankers of New
York, hereby expresses to the secretary its
unanimous opinion that in view of the ne
cessity for an increase of circulating notes
for the movement of the abundant coming
crops of every variety, it is to the interest
of the country to extend the maturing AZ
per cent. bonds at the rate of 2 per cent.
interest, payable at the pleasure of the
government, and that a lower rate of in
terest would tend TO contract The currency
at a time announcement to all business in
rerestS.'
oDJectlons "a q Lower interest
President st. John, of the Mercantile
National bank. presented figures to show
that there was no profit for the banks in
extending the bonds at Il per cent, but
would be profits of about 4 of l per cent.
if they were extended at per cent. Pres
ident Cannon, of the Chase National bank,
believed the bonds could be extended at
IL, but the banks would lose money on
them, and this would cause the bonds to
fail below par. Mr.. Williams, of the
Chemical bank, agreed in that view.
Foster Reserves His Decision,
Secretary Foster reserved his decision,
and made no announcement as to what
his policy would be, but it is generally I'M
derstood that he will act in accordance
with the resolution. The national banks
represented notified the secretary that
they stood ready in case the bonds were
extended to buy them in open market, and
take out circulation against them. This
would increase the amount of the cur
rency in the country by SIS, 10000
"A Eiison Dollar Country
Secretary Foster was the quest of the
Union League club of Brooklyn last even
ing. After dinner reception was held.
at which the secretary spoke in part as
follows: Our Democratic friends have
GlaA1 d great bSsti 10 say OI ldlt dDOul lHe
billion dollar congress. His late excelkn-
cy Grover Cleveland would seem to be
troubled on this score also. These gentle
men forget all the while that this is a bill
ion dollar country. lApplause.l Con
Cress did make large appropriations for
pensions and for all kinds of public ser
vice. In no case do think. so far as these
appropriations are concerned. We're they
greater than the necessity called for. !
am not defending the appropriations.
Some of them | would not defend But
| every move we make our Democratic
friends seem to think indicates poverty in
| the treasury department.
The Bond Extension Question.
Recently thought it wise and prudent
to propose an extension of the A. per
| cent. bonds. The treasury department is
| abundantly able to pay the bonds when
| they mature. In view OF the fact that
$50, 900, 600 in gold had been extended
within short period of time, / deemed il
| unwise to do anything just now to de
| crease the volume of currency in the
national banks 1t occurred to me also
that if we extended these bonds at salts
| factory rate OF interest-not more than
per cent,-the bankers would buy the bal
ance Of these bonds and use il as basis
| for additional currency. Ny prediction
| to-day is that the bonds may be extended
and at the rare of 2 per cent. interest they
will bear premium, condition Of credit
that exists nowhere in the world be
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