St. Paul daily globe., 1893-04-20
Only an Emergency Will
Change the Present FL
nancial Policy.
Stock Of Free Gold Aug
mented by Eastern and
Western Banks.
Denied That Treasury Notes
Will Not Be Redeemed
in Gold.
New York Bankers Think
Gold Would Go to a
Premium.


WASHINGTON, April 19. - Only
grave emergency will change the pres.
ent financial policy of the government,
and each day the officials of the treasury
department gain more confidence in the
situation. Yesterday afternoon the sec
retary received gold from Philadelphia,
which is the first offer that the East has
made to aid the administration, and
small amount was also obtained from
Chicago. This enlargement of the free
gold and the usual daily increase make
the condition more easy than yesterday.
This, coupled with the belief that the
order for gold Friday to be shipped by
Saturdays steamer will not be very
large, leads to the impression that the
department will be able to meet the de-
mand for this week. At the treas
ury it was denied that any
order has yet been issued to stop
the redemption in gold of the
treasury notes of 1899, and the statement
was made that nothing could be done
until the emergency arrived. If any
action has been taken, it Is probably in
the form of letter of warning of par
Sonal character to the assistant treas
urer in New York, informing him what
the policy of the treasury will be in case
the free gold entirely disappears, but
w oh "a Orda
essary. 1t is believed that so far as
possible the Western bankers will come
to the aid of the secretary of the treas
ury and supply him with sufficient gold
to meet the present demands. The iSSu-
ance of bonds will probably be the last
method that the secretary would turn to
if a crisis should arrive. Secretary Car
Isle said late this afternoon that he had
Sl,176,0OO free gold in the treasury. This
was obtained yesterday and today prin-
cipally from the West, in exchange for
small notes, and relieves the tension, at
least for the present.
Bankers Have Little to Say.
New YORK, April 19.-The subtreas-
ury received $4,000 in gold certificates
this morning in exchange for green
backs. Acting Assistant Treasurer
Muhlemap said that lie has received no
order from Washington relative to pay
ing out silver for treasury notes. Bel
mont & Co. are quoted as saying that
they have information from the high
est source that Secretary Carlisle will
issue no such order. Several bank
presidents and bankers were seen this
morning, but they refused to ex-
press any opinion as to Secretary
Carlisle's action in this matter.
1t is reported OH the street that several
houses have given notice that they will
want gold for export this week, and they
are somewhat anxious about their
sources of supply. 1t is stated at the
subtreasury that gold will be paid out
i'll the same manner as usual, upon the
presentation of treasury notes, as here
tOfOre. This was given out to relieve
the anxiety of intending shippers, who
profeSsed to feel some apprehension as
to their ability to secure the yellow
metal for export.
Bank officers, brokers and financiers
generally down town were in quandary
over the reports that Secretary Carlisle
might issue an order directing that
No More Treasury Notes
be redeemed in gold. These treasury
notes are issued in payment for silver
purchases by the government, and there
are about $3.50, 600 of them in circu-
latiOn at present. mostly in New York
and the East. The reason for that is
that the payments for the silver are
made in this city. Most national bank
presidents seen today diScredited the
report of Secretary Carllsle's intentions,
They were therefore unwilling to at
tempt to fOretell the result of
such an order if it were issued.
There was consensus of opinion among
those bank presidents spoken to that
the first effect Of such an order would
be to send gold to small premium.
Acting Treasurer Muhleman said that |
gold did not go 10 premium before the |
treasury notes were issued, and that at
that time the only way of getting gold |
out of the treasury was by presentation |
of gold certificates or greenbacks. As |
long as gold was paid out for green |
backs or gold certificates he did not see |
how gold could go TO premium. Mr. |
LaZard, of Lazard Freres, one of the |
large gold-eXporting houses, when asked |
what the effect of such an order would !
be, said:
Must Have Gold.
at is too soon yet to say what the !
effect might be. The situation is serious |
and the question is a serious one. 1t |
would be serious thing for a govern |
ment to say that one day particular |
form of currency is payable in gold, and |
the next day only in silver, and that, |
too. without notice. OF course, we must |
protect our bills of exchange, even if it |
be necessary to buy the gold at pre-
MUM. Ii that were necessary, of |
course, our customers would have to |
"a g.,
gold if we cannot get it any other way" |
Considerable talk was INDUCED in |
after the close of the stock exchange |
about the ALLEGED heavy shipment of |
gold by Saturdays European steamers. |
Some estimates ran as high as s.. 600. .OCO |
Firms who of late have controlled the |
gold export business were interviewed. |
So tar as can be learned at this time. |
only one house will ship. Their con- |
signment will be at least S2, 100000, un-
less they can secure bills. There ap- |
pears to be disposition OH the part of |
certain exporters to avoid sending gold, |
as they do not care to bear the criticism !
which they think will follow the break |
ing in on the s1O0,OOO.OOO gold reserve. |
The unusually high rates for exchange |
have led to the talk about heavy out |
flow of gold.
Frisco Banks Respond.
SAN FRANCISCO, April 19.-Secretary |
Carlisle has telegraphed Assistant |
United States Treasurer Jackson, of |
this, city TO accept gold coin from banks |
in exchange for currency delivsred to |
representatives of banks in New York. |
Notice was given out at the clearing |
house yesterday. and by noon there had |
been over half dozen responses from ]