The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-10
FOSTER IN A TIGHT BOX.
He MAY BE FORCED TO ISSUE
BONDS TO GET GOLD.

Ee VIII Do Bis Best to stevo OF the
Necessity Until After March 4-An
the Arrangements Made to Float
S5o,OOO,ooO at a Days Notice If
Necesssry-The Situation the Result
of Republican Extravaganza and
Mismanag ement.
WASHINGTON, Feb. 9.-The critical con-
dtion to which the treasury has been
brought by republican legislation and the
republican administration was strikingly
brought out when 1t became known to-day
TO few of the leading men in both houses
who give especial attention to financial
matters that Secretary Foster contemplated
new issue of bonds in order to replenish
the gold resources of the treasury. For
obvious reasons the matter has been kept
very quiet and is still state secret, 80 that
official information could not be obtained
about it to-day. Chairman Springer
Of the ways and means COM
lnittee, who seemed to have
the most definite information about it, I'M
derstood that the amount of the issue would
be $50, OOo, 900, but this was the only matter
of detail which could lie positively learned.
L
bers, who did not wish to be quoted, that
they understood that Secretary Foster had
80 matured all his plans as to make the issue
of bonds at days notice, and even that be
had arranged to have them all taken and
the purchase money paid in gold on the
came day.
HAS BORROWED GOLD.
They said they also understood that he
had used his personal influence with the
New York banks to secure the temporary
loans of gold which bad enabled the assist
ant treasurer at New York to tide over the
difficulties of the last week or two, and that
lie expected to be able to piece out the
treasury gold by similar loans until March
4, but if circumstances made this imprac-
ticable he would promptly issue his new
bonds.
Opinions differed sharply as to his power
to make an issue of bonds for the purpose Of
acquiring gold without further authority
from congress. Senator Sherman. who
seemed to have been consulted by Secretary
Foster about the matter, said promptly
on being asked about the authority for such
action that it was found in the fifth section
of the resumption act and could not be le-
gslly questioned. Senator Mcpherson
when he was asked about it, said that he did
not think the Secretary of the Treasury had
any authority to issue new bonds, and that
the provisions of the redemption act applied
30 the then existing condition and circum>
stances, and not to those Of the present. He
said that If such action should be taken by
q secretary it would be severally criticised
in congress and might lead to grave conse-
queuces.
CONFESSION OF FAILURE.
Secretary Foster does not want to issue
bonds in order to get gold. He is aware Of
course, that it will be public confession of
financial failure on the part of the outgoing
administration as result partly of its de-
sire to get rid Of the surplus by buying
bonds and partly as result of eXtrava-
CANT appropriations for pensions al other
pet objects of the republican congress, and
of the enforced purchases Of 4, 600, O00 ounces
Of silver per month required by the
Sherman act. But ne cannot continue
longer to borrow gold from
the banks and will therefore
probably be forced against his will to issue
bonds in spite of his efforts to keep the
treasury going without doing SO until
March 4. In anticipation Of the necessity
ne has procured from Attorney General
Miller an opinion to the effect that the re-
sumption act gives him authority to sell
bonds for the purpose of maintaining special
payment. This visw is ais, taken, tbs
stated by President Harrison, who, like the
members of his cabinet. is more troubled by
the financial question than by any other
FOSTER TALKS GLIBLY.
By the Associated Press.
WASHINGTON, Feb. &, --Secretary Foster Of
the treasury department was shown a pub
Nshed statement this morning that had it
not been that several banks in New York
city had suppl d the treasury department
with gold last week to meet the demand for
foreign shipment there would have been
deerth OF gold IN the sub-tTeasury at New
York. Secretary Foster did not wish
to say anything on the subject
other than that he had employed
no special or unusual means to obtain gold.
from the banks. About the further exS
portation Of gold this week he would say
nothing. AT present the treasury holds
$500 900 of free gold, and arrangements
have been perfected by which gold can be
secured for the s., 100000 legal tenders on
hand. Some SS0O0,00O more legal tenders
VIII he available for this purpose within the
next few days. In the opinion Of the treas
ury officials, even il a constant drain con-
tinues, the treasury gold can be kept up to