New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-21
THE GOLD ISSUE AT HAND.
HEAVY SHIPMENTS ARRANGED FOR.
OVER 100000 TO GO ToMoRRow-FoREIGN Ex,
CHANGE STRONGER-TREASURY NOTES
STILL REDEEMED.

Wall Street was continued in suspense yestefs
day regarding the policy of the Treasury Depart
ment in its treatment Of the Treasury notes issued
under the Act Of July IA, 1890. Threatened
depletion of the Sl0O.OO00O0 gold reserve was
brdged over, but to-day the issue will be forced
as to whether the Government will refuse to pay
cut on Treasury notes the gold desired by bank
crs for shipment abroad. An authoritative state
ment from Secretary Carlisle waited for in
vain all day yesterday. and it was not until long
after the close of business hours that word came
from Washington that the Treasury Department
would at last officially define its position.
There was excitement in financial circles.
but the absorbing topic If discussion was whether
the Administration would take step so strongly
condemned by most bankers and inanciers as the
proposed payment of Treasury notes only in silver.
About it became known that S75o,OOo gold
had been Withdrawn for export. but that tho
Treasury notes presented for redemption were only
honored in the precious metal. Later it was
learned that to pay for the gokl the banking house
had turned in gold certificates. and United States
grccnhaclSs as we'll as Treasury notes The assort-
ment was unusual and at once excited the sus-
ricon that the bankers had been loath to force at
once the isse upon the reported policy OF the SEQ
rotary Of the Treasury. 1t is generally believed
that some of the arg, city banks had decided to
help the Sub Treasury authorities meet the emer.
cency without danger of reducing the coh re-
serve below the 81 OO. 900, 900 limit. 1t may be
possible that all of yesterdays demands for gold
could have been met without intrenching on the
reserve. but the margin too narrow to 10
trusted in the existing state OF nervousness ana
anxiety over the currency situation. Volunteer
aid il l. believed, extended BIZ several BANK.
ers. who hoped that another day of reflection might
Al. &lo Traps mi hor tIol
to pay silver alone on Treasury notes rather than
reduce the reserve below the traditional limit. II
was hoped that instead of taking step. which it
is believed would be fraught with possible peril,
the Treasury wonIl decide boldly to fac, the situ
alton and if necessary use the reserve freely TO
meet al demands upon il.
The total Withdrawals Of goll from the Sub
Treasury yesterday amounted to Sl.250,00G "
this sum Lazard Frcrcs took $4,000, and an.
other house withdrew S200,0o0 for shipment
10 Europe tomorrow. The Canadian Bank OF
Commerce of Toronto, which has its own agency
in this city, received S250,000, and Sj0,000 was
disbursel in small lots in the ordinary course
~ business. But the actual net loss Of gold by
the Sub-Trcasury only $4,000. There was
turned in S4O0 900 in gold certificates in exchange
for currency by Of the city banks, ana the
remainder Of the difference between the sud-
Treasury gross loss of Sl.250.oOo and net loss
Of Si1O.OOO was made up probably by gold
certificates turned in by the shippers who with-
drew gold. How tho hooks of the General
Treasury stood last night cannot he learned until
the Washington statement is Issued few days
hence The stock of gold has probably been re-
inforced by exchanges of gold for legal tenders
on the part of the San Francisco banks, and
possibly Others in the West.
But that the crucial test will be applied 10
determine Secretary Carlisle's attitude no later
than to-day seems certain in view or the CON.
tracts already made for additional exports o'
gold tomorrow, which must Of necessary oe 'aAen
from the Sub-Treasury to-day. The ffchch
steamer La Champagne sails AT p IN. to-mor.
row. but as she is booked 10 take large amouh'
Of thp precious metal the Withdrawals from 'ho
Sub Treasury could not with prudence pc posS
pcncd until tomorrow morning. In" ehgdge"eh.'
for export tomorrow already made ncilas
80 500 900 by Tazard Freres. $500 ny lieide''
bach Ickelhcmer * Co.. and S2oo,ooo oy i'aoen'
burg. Thalmann & Co.. a total Of S3.3oOooO IN
addition 10 the amount secured yesterday. Inc
Canadian Bank of Commerce has also arranged
for sendinc $500. 900 To Canada. This would
make S3.s5OOOO gold 10 be withdrawn today
for shipment ont of the United States. 1t Is also
said by well-informed bankers that Sl,OOOo00
oold has been contracted for shipment by nexs
Tuesdays German steamer.
The large demands of the Canadian Bank for
American gold are another indication oil the dis-
trust which has been aroused hy the threatened
policy of sI,pcndng gold payments on treasury
notes The Canadian banks are in the haDlt Of
transferring gold between Canada and New-iorR'
one way or the other. according as rates OF eN'
change permit profit on the transaction But tho
magnitude of the contemplated shipment py the
Canadian Bank of Commerce is something un'
usual Ii is believed by bankers to DE due 10 'ho
abnormal strength of the exchange markets. parc
Of which is due to the anxiety aroused over the
currency question 1t wonld be most unfortunate
if in addition to meeting calls for gold from
Lurone the situation should lead to the beginning
-, , drain of the prccprs metal to the Dominion.
Tho foreion exchanges exhibited even moro
str.notb than on Wednesday, The posted rates
for sterling were left unchanged at the advance
of Wednesday 10 81 SO for slXty-day ana - W ior
thrceday bills But the actual rates were high
or and short sterling drafts were quoted ~
81 ss l-4aS4 IS l-2, rates which allow SUM
s,,nta, protit in shipments In fact, the rates are
above the normal gold-shpping point to the ex-
font of about l-s per cent according 10 calcuia-
tiops made by an exchange banking mouse YES
,ord,v In certain sense this represents ths
premium that shippers of gold are now wiling 70
nav 10 obtain the precious metal
The hope was expressed in banking c'rcles .,"s
in case Secretary Carlisle made a statement thas
,oud tend 10 rc-establish confidence, there mighs
10 +, cancellation of some of the orders for soid
sbipmcnts tomorrow Foreign bankers say tias
they ship the gold with reluctance, but the re-
cent uncertainty in the financial community mas
stimulated the desire of European correspondents
TO secure the yelow metal. Much curiosity was
cxpressed as TO the methods the foreign bankers
would adopt in order TO secure gold IN case
Treasury notes We're paid only in silver ana legal
tenders could not he obtained from the banks IN
sufficient amounts. 1t is against the laws Of the
Stock Exchange TO bid for gold. and hence thas
mart would be shut off from the shippers. Rit
lega tenders might be secured from the banks by
the payment of premium. and these could ~
cashed in gold at the Sub-Treasury: Neverthe-
less, the issue of any order by the Treasury MILL
tatinc against the redemption of Treasury notes
in gold, it is believed, won interfere with to-