The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-18
FOSTER AND THE BONDS.
DOUBT AS TO WHAT THE Score
TARY WILL DO.

I
! Consultation With Him On the Sub
ject on Monday-silver Might Be
rendered IN Payment for the Bonds
and Would Have to Be Accepted.
| WASHINGTON, Feb. 17.-Presidanu Har-
rison's present position on the bond question
has been partly misunderstood and partly
misrepresented, for be has not changed his
attitude at all. The report that he had done
so. at least to the extent OF authorizing a
new issue of bonds by Secretary Foster il he
thought it necessary during the Presidents
absence, probably grew out of q striking and
significant remark which President Harri-
| son is understood to have made to
Secretary Foster after the conference
! with Mr.. Morgan and Mr. Cannon on
Wednesday to the effect that as he had
| stated he saw no need or reason
for an issue of bonds before March 4, but
| that the law gave the authority to issue
new bonds TO the Secretary of the Treasury
and not TO the President, and that if Secre-
| tary Foster chose at any time before March
4 to issue new bonds he could, of course, do
so on his own responsibility, but that he the
Presidentl would in such an event let the
country know that the secretary and not
the President was responsible for so doing.
The President said that legally he had no
power in the matter except indirectly by
removing the Secretary of the Treasury
from office, which he intimated would be bis
way of dtsavowing responsibility for the
| secretarY's act. OF course the President
reserved the right to change his views as to
the necessity for issuing bonds as ciroum-
stances might arise, bus up to the moment
he left for Bengies he had not altered it In
the least.
| FOSTER MORE CHEERFUL.
| Secretary Charles Foster was in very
much more cheerful mood this afternoon
than at any time since the visit of Mr..
Morgan and Mr.. Cannon from New York
| on Wednesday to urge a prompt issue of
bonds. The Improvement in the secretary's
feelings was due to the fact that up to a
late hour he had notice of only SO, SOC, 600 in
gold to be exported tomorrow and Monday
instead of the $4,000 900 which Mr..
Morgan and Mr.. Cannon on
Wednesday predicted would go out,
S5,000000 on Saturday and "a 900, 900
on Monday, together with the fact that
there was q decided improvement In the
condition OF the treasury balance. The Sec
rotary was inclined to think that the dan
| ger which seemed so imminent on Wednes-
day will probably be avoided altogether
without either issuing bonds or trenching
on the 100000 900 reserve. He is inclined
to think that the New York bankers may
have acted on the suggestion which he made
that they should try TO get git-edged se-
curites sent abroad instead OF gold where
| ever 1t was at all practicable to do SO and
| believes at all events that the bankers find
| ing that President Harrison was dead set
against issuing bonds are endeavoriug on
their own account to prevent demands on
the treasury for gold.
Although Secretary Foster is quoted as
saying in interviews which are being sent TO
New York papers Tonight that he has no
present intention OF issuing bonds, be is
known to have told prominent member of
the House to-day that he had everything
ready to issue S5o,000,000 of bonds at any
time, and now expected to make the an
nouncemsnt of the issue on Monday. He
will not do SO, however. without the con-
sent OF President Harrison, whom he will
consult as soon as he returns tomorrow
night. The President was TO have remained
at Bengies till Monday or Tuesday, but is
understood to be coming back tomorrow
especially to see Secretary Foster.
FOSTERS DISCRETION.
By the Associated Press.
WASHINGTON, Feb. 17.-Before leaving
Washington the President authorized Secre-
tary Foster to offer bonds for sale whenever
| IN his Judgment such action is absolutely
necessary TO maintain the governments
gold reserve. The free gold in the treasury
to-day is about $6500,0O0. If il should
l
there is scarcely doubt that Secretary
Foster will offer for sale about $50, 900, 900
In bonds.
The treasury situation shows improve
ment. Heavy receipts and smaller expen.
ditures have had the effect of showing a
gain in the net balance, which for the past
few days had dropped down to a dangers
ously low margin. To-day il is about
$25, 100000, Of which $4,000, 900 ls in sub
sidiary coin and like amount In national
bank deposlts The margin a few days ago
was only about S23, 100000, which taking
out the two items named left the treasury
with very narrow margin to work on.
All the heavy payments likely to accrue
this month have been made.
| Treasury officials are still interested In
the question of keeping Intact the S10O.-
| 000.000 gold reserve. Secretary Foster
| authorized a statement to-day that the gold
reserve will be kept intact at all hazards.
| How, he could not say, but he stated with
emphasis that II it was necessary to issue
bonds to do it, he would go even to that OK,
treme. At present the free gold is more
than $8,000,0 900. He said he felt almost
certain that he could reach the end
| of his term without having
TO issue bonds. "Even to issue bonds. say
$4,000, ,00O," said the secretary, would not
necessarily mean an increase in gold to that
extent. The law provides that the bonds
must be paid for In coin. Silver is coin.
What is there to prevent silver or its
equivalent being offered for the bonds?
Nothing. Could / refuse itg No.
So, even II bonds were issued
would that relieve the situation? I?
Not unless an arrangement based on honor
between the Secretary Of the Treasury and
the purchaser was made, and then l would
be subject to all sorts OF criticism. The
whole subject is surrounded by vexatIon,
You may say, however, that the gold re-
serve will be kept intact, come what may,n