The Providence news. (Providence [R.I.]) 1891-1906, 1892-12-28
THAT GREAT DEMAND
Of All Europe for American Gold is
Steady and Strong.
The YELLOW STREAM is LARGE.
Treasurer Nebeker Has baily Offers OF
Yellow Metal from Banks-Reiieves
Jhat the Government VIII be Able to
Meet All Demands on the Treasury.
lsPEcIAL Tc THE NEws.i

WASHINGTON. Dec. 2z-Treasury De.
partment officials are at loss to salts
factorily explain the unpreceden ted drain
age of gold from this country to Europe
that has been going on since early in the
summer
Tho shipments have continued until
the total gold balance in the treasury of
the United States at Washington and the
various sub-treasuries has been reduced
TO about $l24, 900, 900. or only 1900. 900
more than the special $780, ,00J reserve
set apart by Secretary Sherman in 1878
for the redemption of the greenbacks.
ana ever since preserved intact in the
treasury. It will he seen that but four
more shipments like the one OF last Tues
day, when S60O0,0J0 was taken, will alb
sotb all the balance in excess of the re-
serve unless there is some way OF increas-
ing the balance.
There Is considerable difference of
opinion as To what will happeu in the
balance should be reduced TO u1at extent
the general belief being that before the
SlO0OOJ,OOO reserve figure was reached
goa would command a premium.
Inc secretary or the treasury has an
nounced that he will, IL necessary, pay
out gold belonging 10 the reserve fuua,
anu as a last resort will sell bonds tor
lt is not generally believed at the treas.
ury department however, that it will be
necessary either 10 encroach upon the
slOO, 900 900 gold reserve or to sell bonds
10 supply all the demands for gold That
VIII be made. No one undertakes TO say
whether the demand for gold will still
Keep up after the hoida,s or wheu it is
going TO stop, but IL is said there is a TO-
tai OF about 5000. .000, 900 of gold coin in
the country, anu the department Off ;ials
believe they can command AS much of
this money as can under any circum-
stances be called for.
The gold outside OF the treasury is Al
most all held by the banks OF the country
ahd treasurer Nebeker said to-day that
he Is u receipt OF daily offers from banks
Tor all the gold he wants aud more. too.
Inc day before the snIpment of 90, ,O00, 900
he got s3,O0O,OJ0 from the banks, hair of
1t In New York and half OF lt In Phila-
delphia, and he could have covered the
whole shipment if he had wanted to.
Inc government is enab ed Co get the
gold from the banks in return for its ac-
comm odations TO banks Ii "a bank in
Chlcago wants sum or money in cur
rehci IRON New York, III payment for
crops or lor any other. purposes, the
cheapest way In which it cah get that
money is TO deposit gold In the United
States suD-treasury IN New YORK and
nave the government send out new
paper money from Washington to C.i
cago in exchange for it.
The reason of this is that the govern
ment has special contracts with the X
press companies by which It can SHIN
money very mucn cheaper than any other
Shippers. In this way IT is able to ac-
ommodate banks, aud at the same time
keep up its gold balaace. Treasurer
Nebeker does not believe there will be
any demands for gold that cannot be
met In this way, ana he thinks il any one
expects to make money off n rise in 20 Id
he VIII have 70 wait long time.