The Indianapolis journal., 1893-02-16
To Prevent Panic and q Premium on Gold
the Government May Be Compelled
to Soon Issue New Bonds
Though Opposed to Doing So the Presi.
dent May Have No Other Recourse.
II Bonds Are Not Issued Now Carlisle Says 10
Will Be One of His First elcal Acts TO
Do So-The Situatic- - New York.
MAY ISSUE BONDS.

speoal 10 the Indianapolis Journal
WASHINGTON. Feb. 15.-Wall-street spec-
ulators aud scheming Democratic politi-
cians have put the government "in hole"
80 to speak, and the outcome may be an
issue of bonds to keep gold from going to q
premium.
In the struggle which has been going on
for some weeks by the Treasury Depart
ment to meet the extraordinary demand
for gold, and the circumstances which
brought about the gold craze. history is re-
peating itself. The gold run" was pre-
cipitated by the same persons and FOX the
same purposes as was the case nearly three
years ago. Then the financial squeeze
was brought about by bankers
in all parties who had only sell
fish gain in vIew-men who wanted to
force. by stress of circumstances. tho
Treasury Department into an issue Of
bonds. knowing that if they could succeed
1t would mean millions of profit 10 them, as
they could take the bonds and sell them az
large premium as soon as the scare was
over. Then there were designing Demo-
cratic politicians who wanted to precipi-
tate panic and force the present admin
.stration to issue bonds which would give
them an opportunity to 20 before the coun-
try and claim that the Harrison admins
trstlon had created an extra issue OF
bonds. and play ed into the hands of WALL
street bankers" The same elements have
been at work during the past two months
to force the administration 20 issue bonds.
with little or no different object In view.
The bankers, who believe thoy could buy
up the bonds at par and sell them at large
premium, of course care nothing about the
political effect or q bond issue. lille the
Democrats, who are eager 10 decry the
financial management of President Harri-
sons administration, see only political adj
vantage in the present situation. They
would precipitate a panic. ruin the govern
ment's credit and destroy the commercial
interests of the country If they could make
q record against the administration.
In addition To tie Democratic agitation
through the newspapers intended TO de-
press the governments credit and force an
issue of bonds for political effect. there
have been sent to the President men PROM
inentIn publIc and private life. who have
besieged and badgered him with a view TO
making him consent TO an issue OF bonds.
1t has been a most remarkable combina-
tl0n of greed. selhsbDess and political do.
sign which has worked for this extraordi-
nary move. against which the Presi-
dent has stood. and to-day. 1t was
reported the bankers, growing moro
bold in their determination To gain
by the misfortune Of the government had
sent word to the President that. unless he
permitted bond issue. they would stop
the supply of gold which they have been
furnishing by an exchange for legal tender
notes. This certainly is climax. and 10
probably the most desperate effort ever
made TO extort from President action
which is. upon every hand, regarded as
impOlitic and unnecessary. and unjust to the
taxpayers of the country. In this, the sec
ond raid which designing tnancIers and
politicians have made upon the good credit
shown that there are men ana
political parties who would 60 to any ex-
treme to carry their selfish or party
point. regardless of the consequences to the
country.
Itwss learned tonight in the highest of.
ficial circles that. while it Is a recognized
fact that spectators and politicians are at
the bottom Of the gold squeeze. it is feared
there will have TO be an issue, of about S50.-
OO0.OOO OF bonds to meet the demands and
prevent gold from going to premium. The
President feels that he does not want q
condition of affairs which will run gold up
to premium. and much as he would regret
any kind of an issue of bonds. he would
prefer that to the listing of gold In the
stock exchanges. Should the drafts upon
our already small available gold balance
continue durin q the next three days as they
have during the past week, it Is safe to pre-
dict there will be O small bond issue.
What Carlisle Would Do.
NEW YORK Feb. ia Washington dis
patch states that after conference to-day
with Secretary of the Treasury Foster. Mr..
Carlisle said he could not see any occasion
for apprehension in financial circles, as the
government would Lot allow gold to 60 TO
. premium. my course az Secretary is
perfectly plain" he said to q friend. "One
Of my trst Official steps Will be 70 issue
bonds. and this will be followed by
special session of Congress. The sherman
act will be repealed"
AT THE SEAT OF THE CONsPIRACY.
New York Bankers VIII Not Supply the
Government with Needed Gold.
NEW YORK. Feb. 15.-Investors and
spectators in bonds and stocks were
puzzled this morning by the vague char.
acter of the Washington dispatches telling
of the decision of the Cabinet. yesterday.
against an immediate issue of bonds. and
as some of the reports of interviews with
Secretary Foster contained glarinR mis-
statements. there was general hesitation
about forming opinions as to the real con.
dItion of affairs in the Cabinet This hesi-
tati0n was shown in the stock market
where the trading was irregular and spas
modlc.
The local bank presidents who would dis
cuss the Cabinets action as they under
stood it, expressed disappointment at the
decision arrived at The government, 10
seems" said one. thinks the shipments
will not be large enough to reduce the
treasury gold holdings 20 the reserve. IL
SO. they are wrong" Another said Itlooked
10 him as though the government had de-
cided TO cut into tb serve. If necessary.
rather than issue 's. President Tap
pan, of the Gallati k, said to-day: II
do not believe any banks will assist
the Secretary Off treasury In maintain
ing sod surplus above the slO0 .0o0. 600 re-
serve. No meeting of the clearing house
has been called. but the subject has been
informally discussed. and there is little
into the treasury in exchange for legal ten-
ders." Other bank presidents spoke in the
same way.
The 81. SOC. 900 gold taken from the SUBJ
treasury for shipment. to Germany by the
Elbe this morning was paid for entirely IN
greenbacks and treasury notes. The sur
plus gold held IN the treasury above the
sl00. 000.000 reserve was 81. 023. 429. according
to the statement issued to-day. This sum
will be materially reduced by the gold ex-
ports of to-day and on Saturday. Foreign
bankers say that fully S3.000.0 900 will be
shipped on the French steamer and some
estimate the amount at S5.0000oQ Next
weeks shipments are expected TO be svsa