St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-06-04
SHY TEN MILLIONS.
Uncle Sans Gold Reserve Now
Amounts to Less Than
$9o,0OO.000,
Suggestion That secretary Gar
Isle Issue Greenbacks in
Exchange for Gold.

WAsBINGToN, June 3. AT 10 time
since specie payments were resumed
Jan. l. 1919, has the net gold III the
treasury Of the United States been SO
as owl is today. The amount IS so9,
9392l7. While no uneasiness is 1eit
at the treasury department because OF
the continued loss Of gold from the
treasury, still Secretary Carlisle is not
unmindful of the fact that a limit may
he reached where the confidence re-
posed In the treasury by the people may
be shaken. How to the replete treasury
with gold has been problem seriously
considered bv the administration for some
time. The issue of bonds is the usual
remedy suggested, but 1T IS known
that the president is not in favor
of this alternative except DIS
tLe last. resource, and even II
they are issued treasury officials are not
. by any means confident that the treas
urv gold repeted in this way Will long
continue. 1t is contended that 10 oD-
tain gold in this way with the present
laws in force simply means the govern
ment borrowing gold at interest TOR the
purchase of silver, with no assurance
that the gold so obtained Will remain III
the treasury longer than the time nee
essary to take 1t out.
Suggestion has been made that the
secretary of the treasury has the power
to issue greenbackS III exchange for
gold, thus increasing the amount OF
gold and increasing the VoluIne VI
greenbacks outstanding to the extent or
fhe gold thus exchanged. Secretary
Carlisle being out of the city today, his
views on TINS subject could not he OBJ
tanned. Acting Secretary llamlln SAID
he had heard the suggestion and hoped
it was so, but his manner Indicated
that his hope was very faint. Otner
treasury utficials were questioned on
the subject, and they said that the ldea
was not new one, and had been IA
vanced at different periods III the past
ten wears. No law OH the statute DOCKS
was more stringent than that relating 10
greenbacks. 1t provided that S343, O00,-
600 Of greenbaeks should be Kept III elf
culation. When such notes are pre-
scented for redemption new notes 10
like amount had to be issued. The sec
rotary of The treasury has no discretion
either 10 increase or 10 diminish the
volume of greenbacks. Section SO OF
the Revised Statutes provides that the
secretary of the treasury may exchange
any class Of money for coin, ana OUT OF
this provision Of law it is presumed that
the story started that the secretary OF
the treasury had discovered statute
which permitted him TO issue green
backs in exchange for gold. Ihe statute
gives him tue power, which has never
been questioned, to exchange green
backs, United States treasury notes,
United States notes, silver certificates,
gold certificates, silver coin, silver bull
ion and gold bullion for gold coin OF
gold bullion in bis discretion, but there
is a decided difference between the "ex-
change" of one class of money for gold
and the Issue" of class OF money to
exchange for gold.
The Star, in discussing the monetary
situation, says: lit Is understood tnaI
the question which will be discussed at
the special meeting of the cabinet to be
held on Monday morning will be that OF
the condition of the treasury. Inc snip
ments of gold from New York during
the past week have amounted to $780,
600, including the 100000 which went
TO Canada. Now that the shipments
have again begun to lie heavy, the sub
ject comes before the administration as
one of no little concern, for should TINS
rate of gold export continue 1t would
not be long'before the reserve would be
reduced to- a figure that would be UNI
comfortably small"
At the cabinet meeting it is believed
the attorney general Will render an
opinion on the question as TO the right
of the administration to issue bonds