The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-04-26
THE GOLD QUESTION.
Offer Of New York Bankers Is
Rejected by Cabinet.
PATRIOTIC BOSTON BANKS.
The scheme - RoReo . Bend Issue VIM
Probably Hail-1oFsnso Banks Dis
eount silver Certificates.

WAsHrNeroN CIrY, April 2.-At the
cabinet meeting this afternoon Secretary
Carlisle brought up the proposition of the
New York bankers to supply under GER
tain conditions the treasury depart
ment with gold. II was thorough
~ discussed and finally rejected.
What this proposition was is not
known here. a. Secretary Carlisle de-
clined to make its terms public. It 10 not,
however, considered advantageous to the
governments. This was the elimination
Of the several propositions submitted, one
of which was declined last Saturday.
and counter proposition then made
by the bankers to the secretary OF
the treasury, which was received last Mon
day. This was also rejected, and in turn
the secretary submitted . propo-
sition to them. which they also
refused to accept. All negotia-
tons. therefore, between the department
and New York bankers are of. ct least for
the present. and Secretary Carlisle will
look in other directions to continue to re-
plenish the treasury with gold. The admin
istraticn does not desire to issue bonds,
and will not do SO except as q last resort
The gold in the treasury this morning
over and above the 500. COX, 900 gold re-
serve, was $500. 900. This accounts for the
gold taken from the New York sub-treas-
ury for export today, also for
the gold accepted from Boston
bankers, but does not. however,
include the gold offered from San Fran
cisco and Roanoke, Va. These amounts
will appear in tho treasury figures when
the exchange is made. Secretary Carlisle
is much encouraged at what he
terms the patriotic position taken
by the Boston bankers" He
took with him to the cabinet meeting this
morning bundle of papers, presumably
bearing on the conference Of New York
bankers with Assistant Treasurer Jordan.
but in the incomplete condition of that
matter, he did not deem it prudent to ex-
press an opinion.
NEW York, April 25.-Carlisle's PROPOSE
ton to the New York bankers yesterday 10
understood to have been this:
He wished to know whether they would lend
the government $50. 900 900 in gold for one year
from May !, the loan to be secured BY 10-year
government 5 per cent bonds, to b is
sued at ll711. which would b equiv
terms Of this proposition were that the
bonds b placed on trust with the secretary OF
the treasury, or sub-trsasury, and ~ the banks
turned in gold, certificates were to be
issped to them therefor, and at the end
of year the government was to have the
option Of paying of the loan in gold,
with s per cent interesk If the government
could not pay the loan In gold at the end Of .
year, then the banks were to surrender their
certificates and take the amount of the bonds to
which they were entitled at ll71<.
The answer Of the bankers to this propo-
sition was that their gold was held in re-
serve as required by law, and if surren-
dered for bonds and not current money.
it would have to be replaced in other
money, which would mean that they
would have to pull In loans to an equal
amount The result would be stringent
money. or perhaps q panic. What the
bankers are willing 70 do, although they
have not made direct offer. is this:
They will turn over $50, 0o0. coo in gold to the
treasury Departmental it viii issue in exchange
certificates or notes bearing ~ per cent
interest, which can be counted in the reserve,
used in settlement of balances at the clearing
house the same - money. b received for bal
ances due the sub-treasury and be reissued in
exchange for greenbacks or legal tender notes.
These certificates could be used the same as the
old clearing house certificates issued against
collateral. which in this instance would be gold.
TORONTO, April 25.-The banks will &C.
cept United States silver certificates at q
discount of 1 per cent. The banks take or.
binary American greenbacks at par from
customers, but will not accept them at all
from strangers. Business houses have
placed a discount of per cent. ON all
American bills.