New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-26
MR.. CARLISLE ANSW EkS NJ.
SUGGESTIONS OF BANKERS DNLiNhD.
,,,, -, >-rcor,,rIoys FOR BoND ISSUE NOT
ABANDONED-FATAL FAULTS IN TIE
sECRETARY'S PLAN.

sECRETARYS PLAN
r, ,soroo that at last the Administration had
-. I'll arouscd 10 the critical aspect Of the hnan
,a, situation afforded by the proposal OF secretary
carlisle TO secure gold from the New-lork banhs which
v,s announced in The Tribune yesterday, had a
further rea,surng effect the sentiment in the bank
inc community. II was not the terms on which Mr.
Cr,, souch to secure additions t6 his gold
which were considered important so much as the In
dication tha, the Treasury Department. under PreSi
dent Clevcands direction. has brought Itself face TO
f,ce with the necessity Of bond issue.
But while the secretary Of the Treasury has begun
10 manifest regard for the who lead in the
financial centre OF the country he is apparently yet
unable 10 grasp the significance of comprehensive
policy. The secretary has declined the suggestions
Of the New FORK bankers. made in reply 10 his propo
son and the situation, In certain sense. is paeed
where II before Mr. Carlisle submitted his plan OF
Monday Assistant Treasurer Conrad y. Jordan late
yesterday afternoon received tcegraphc dispatch
from Washington announcing that the secretary would
forward letter on the situation night. 1t Is
understood however. that the dispatch clearly Indicated
that tho suggestions propositions Of the Newiork
bankers were not acceptable TO the Treasury author
tiles As there Cabinet meeting In Washington
yesterday II is TO be presumed that the rejection OF
these tentative plans has recel ed full sanction from
the entire Administration. 1t will not be known
until today whether Mr.. Carlisle submits a new
financial plan upon which further negotiations may
be established
There are some bankers who object to the asSlmp-
ton that any possible reply from secretary Carlisle
may be taken fnality The recent negotiations.
II Is urged that the situation Is akin transaction
involving the sale of a railroad in Which the buyer
and seller may with widely separated views
OF the worth OF the property, but by frequent confer
ence may at last agree upon terms. Henry w. Can
non, president of the Chase National Bank. said
"1lsere has been distinct gain to the situation In
that FIRST the administrator has declared that every
class of the Governments obligations shall be
deemed in gold second. that the Government needs
to repleniSh Its store Of gold third that it intends
TO secure more gold. and fourth that II virtually says
II will get the gold by sale of bonds
Other bankers do look upon the attitude Of
the Secretary as conclusive evidence that a bond
issue is determined upon. The inevitable failure OF
the immature plan (Which practically would havo
involved temporary loan to the Government that
Mr. Carlisle proposed. may lead him 10 rccur to his
retail method of meeting the foreign demand for gold
by prOmiscuOus collections from such banks all over
the country may be goodnntuIed enough TO accom-
modate him with their gold AT any rate the ques-
tion of bond Issue remains for future deter
minaion, at least regards thr terms. and a per
sOna conference between the and the bank
OF NewYork will doubtless be necessary before an
agreement may be reached
IT is denied by some wcllnformed bankers that any
definite proposition went 70 the Treasury Department
the result OF the conferences with Assistant
Treasurer Jordan here Monday and saturday
But from the inquiries and suggestions that were sent
by the New-York bankers to Washington for Mr.
Carlisles information an intelligent idea may be OBJ
tained OF the opinions held IN this city by men Of
finance TO the proper plan for adoption In
brief, the alternative Is presented to the secretary
OF a direct and unqualified sale OF bonds or
temporary loan which will not impair the reserves
OF the banks Secretary CarlleS proposition was for
the banks TO advance S50.OOO,OOo gold TO the
Treasury. for which per cent nyear bonds would
riaa th. .nNpr
ment interest rate to pr cent. The bonds were not
TO delivered the banks. but were to be held in
escrow at the sub-Trcasury and certificates issued
10 the lenders OF the money. AT the cid of the year
the Government would b. NJ liberty to redeem the
bonds I'm gold the price at which they were sold.
II this were not done. then the trust would be dis
solved bonds distributed among the purchasers
1t is apparent. from the nature Of this plan that
sccle aiy Carlisle Posses extreme Icuc to make
n direct sale Of Government bonds. lie may doubt
his authority do although prcvions 5ccrearie, Of
the Treasury. under Republican Admnis raton>. have
maintained the right To sell bond, To continue gold
payments under the Resumption ac'. ON this i'm
porant point nothing has been Indicated In the
of its View, by the present Administration. Mr.
Carlslc'S proposition equivalent TO oneycar
loan from the banks with United states bonds as
Collateral security. Apparently. lie hoped by These
mean, to tide over the emergency until Congress met
and afforded some relief. confirmed new authority
for "A sale OF bonds. II another indication OF the
remporizng disposition of the present head Of the
Treasury Department at time when the complete
restoration Of confidence may b. affected only by
bold and broad measures.
The fatal objection TO Mr.. Carlislc's plan was
obvous 10 any fnancicr or banker The certificates
10 be issued the Treasury in return for the Goid
loaned by the banks would not BE- negotiable and
could not be made available in the reserves OF The
banks. In these circumstances the transfer oi 90
600 900 or $50 100000 gold from bankers 70 the
Treasury would be equivalent to locking up so much
Of precious metal and the calling OF loans rendered
necessary for the collection Of the gold would De
morsze the money markets 10 extent more serious
than the disturbance caused by the runors OF Sils-
pension Of gold payments upon the Treasury no'eS.
At the conference which discussed The secretary .
proIo,op these objections were pointed out III
emphatic ianGuage.
These ouestons were raised and sent 10 Mr. 'ar-
Isle for answer: First would the proposed ccr'ih'
cafes Of d, post with the Government bonds as secur
,tv be- receivable for lublic dues? second. W0ud
they be- available for Clearing lb,usc settlements
Tvrd. woud they posses neg"'mp' ch"r"c'''
Fourth, could they legally h" counted IN 'he p'""
rcservcsi II is almost supcrhouS 10 say 'h"t "'"''
OF the bankers answered their own questions if' the
NEGATIVE Exrcrts on the Currency laws have no
doubt as to the unavalability OF such c"r'ihca'e9
for use In the reserve Of the Nationnl ba' KS In"
hcr points In Ike manner involved h''ic u'Slu"
among bankers. The substance OF lhc SuE.ea'io">
ard notifications attached u the SccretalyS piopo-
s,ion was that II no direct sale Of bonds were to be
made the dep0si,oIS OF gold in the Treasury wouid
reouire a security which would take the place OF the
precious metal in performing the functions OF the
money surrendered
Bankers somewhat divided H. opinion as 10 'he
practical effect upon the money market sIouu tle
Government finally decide TO Issue bonds outright
IN order 10 rcpcnsh the gold reserve in the Treasury
II 4, generally c0Hcedcd however, that som" S'rI''
gencv voud ons'c. Int there are prominent men VINO
hold that moderately stif rates of interest would chd
IN hold foreign capital here. and ~ help Id uie
solution Of the problem Of meeting demands Tor goiu
for e,nor Harder money rates would also render
A,r.,,t snec,aijon In commodities. and thereby IN
crease the prospects Of heavier movement OF poduc'S
mn, ., tho country. 4 wcll-knOwn bank president