Evening star. [volume] (Washington, D.C.) 1854-1972, 1892-12-28
TIRE FINANCIAL SITUATION.
Secretary Chas. Foster Does Not Seem to BE
at All Worried.
he HAS HAD NO CONFERENCE WITH MONEY MAG
NArEs-soNE FINAScIEas, HOWEVER. ARE
APPREHESsIyE OF TROUBLE UNLESS THE sHER-
NAN SILVER ACT Is REPEALED.


That the Secretary of the Treasury is not
specially alarmed at the condition of the ma
tional finances. immediate or prospective. is
demonstrated by the fact that he has left his
post OF duty for the holidays. and has as vet
found no occasion to confer with the money
magnates of New York. an expedjeut usually
resorted to by his predecessors when there was
.ne ieast danger Of financial panic. He Was
IN New iork Saturday, Sunday and Monday on
private business, and would have had no diff
Guilty whatever in arranging for a conference
with bankers and inanciers generally had he
thought II necessary.
THE GOLD BALANCE
While there. however, he made the following
statement in regard TO the recent reduction of
the gold balance: I'm the three weeks during
which Sl2 ,000.0 900 have been sent abroad. all
OF which was taken from the treasury. | have
had the offset of IS, DOC, 600 accumulation. The
gold In the treasury when the big shinments
began amounted to Sl25. 00o. 600 TODAY il
amounts to sl2l ,0o0, 900. While | have not
maze any promises to get any more gold in the
treasury on March than $40. 600. 0OO | believe
that the shipments of gold to Europe will be
nghter during the next two months and that it
Is within the possibilities of the situation to
leave 1925 200, 900 In gold for nv successor 20
control "
while shall not utilize the provisions of
the resumption act of 1875 which went into
erect on January |, 1879, there is no doubt
among the legal councillors of the government
that the Secretary of the Treasurvis empowered
under this law to sell coin bonds to secure gold
whenever II becomes necessary to maintain re-
sumption. The maintenance of the credit of
the government has been always thought best
sunserved by paving bonds in gold. and that
Will undoubtedly continue the custom The
only law which binds the Secretary of the
treasury to any severe task is the Sherman
silver law of 1890. wherein it is literally COM
manded that he shall keep gold and silver coin
on parity"
EFFECT OF THE SHERMAN ACT
In financial circles generally there is said TO
be decided apprehension as to the ultimate
effects OF the Sherman silver act One Of the
opponents of that statute SAYS that the only evil
dence lacking that 1t is operating to the detri-
ment OF the business interests of this country
Is a premium on gold. 1t is known that finan-
ciai institutions controlling large amounts of
money. as well as many capitalists are reluctant
to part with their funds In ordinary investments
because OF a fear that the United States NAV
go on silver basis in the near future The
same sentiment Is said to prevail ABROAD,
Europe being intent on selling all the goods it
can to the United States and exacting PROMPT
mentioned as proof that our gold is ALREADY
being boarded. The banks naturally hold on
TO their gold. They are compelled to retain a
certain reserve and in view of the growing dis
trust try to keep As much as possible of it in
gold Trust companies. saving banks. insur-
ance companies and individuals are under no
such obligation; vet according to all accounts
they are as conservative as the banks
Inc only remedy for the existing state of af-
1aIrs, according to many financiers is repeal of
the Sherman silver act. Many thoughtful people
are OF opinion, however. that such action
would be altogether too radical a step to take
at the present time without putting something
In its place that would recognize silver as
money. gentleman who has made the silver
question study made the following statement
today to STAR reporter:
CANT KEEP UP THE PRICE
"A two years trial of the Sherman silver act
mas demonstrated very clearly that II is impos-
slble to keep up the price of silver bv anv arti-
hclal means. 1t is a well-known fact that the
production Of silver is not now ANYTHING what
IL might be made. many of the mines are
either closed or are not being worked to their
fnll capacity and will be that with the con-
slant improvements made in reducing ores, be
which hitherto unproductive mines can be
worked at profit, and with the discovery of
new mines from time to time it is foolish TO
think OF regulating the price of silver by pur-
chasing any quantity per month. The present
tendency OF silver is to continue to fall in price
and nothing short of an international free coin
age agreement can restore it to its former place
as a precious money metal"
The financial situation is an interesting one
any way you look at it, said treasury official
TO STAR reporter today, land the lawmakers
have large contract on their hands at present
and for some time to come"