The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-04-26
REJECTED BY THE CABINET
Proposition of New York Bankers To
Supply Gold Not Viewed with Favor.
They We're Willing to Furnish Fifty Millions
If the Government Would Give Them
Notes Bearing 2l2 Per Cent. Interest.

WASHINGTON, April 25.-At o Cabinet
meeting this afternoon Secretary Carlisls
brought mp the proposition of the New
York bankers to supply. under certain
conditions. the Treasury Department with
gold. Ii was very thoroughly discussed,
and finally rejected. What this PROPOSE.
tion was is not known here. as Secretary
Carlisle declines to make its terms pubhc.
Ii was not. however. considered advanta-
geous to the government This was the cul.
mination Of several propositions submit.
ted. one of which was declined last SAT-
urday. A counter-proposition was then
made by the bankers 10 the Secretary Of
the Treasury. which was received last
Monday. This was also rejected. and. in
turn. the Secretary submitted q proposition
to them which they also refused TO accept
All negotiations. therefore. between the
Treasury Department and the New York
bankers is of. at least for the present. and
Secretary Carlisle will look IN other direo.
tions to continue TO replete the treasury
gold. The administration does not desire
to issue bonds, and will not do so except as
q last resort. The time. in their opinion.
has not yet arrived, and, IL the efforts TO
obtain gold are successful. will not soon DO
reached.
Inc not ROlQ III the treasury THIS EnOin~
ing. over and above the 500. 000. 600 gold re-
serve, was 500. 00O. This account for the
gold taken from the New York subtreas-
ury for EXP ort to-day; also for the gold
which has been offered and accepted from
Boston bankers. lie does not, however, IN
clude the gold which has been offered to
the government from San Francisco and
Roanoke. aud the amounts VIII appear in
the treasury figures when the actual ex.
change is made. Secretary Carlisls ~ much
encouraged at what he terms The patriotic
position taken by the Boston bankers"
New York Bankers Wanted Too Much.
NEW York. April 25.-To-day was con,
sidered an OFT day by the subtreasury of.
ficlnls in this city. as no gold was engaged
for export. and there was less fuss and
furry observable. Briefly stated. the con.
struction put upon Mr.. Carlisle's proposi-
ton to the New York bankers yesterday 10
understood to have been this: He wished
to know whether they would lend the
government S50.O 900 gold for one year
from May !. the loan TO be secured by ten.
year government three-per-cent. bonds. ia
be issued at 117h. which would he equiv
alent to o three-per-cent. bond. The
terms of this proposition were
trust with the Secretary of the Treasury.
or the subtreasury. and. as the banks
turned in gold, certificates were TO be Is-
sued To them therefor. At the end of the
year the government was TO have the OPP
tion OF paying Off the loan IN gold with 3
per cent. interest. Ii the government could
not pay the loan In gold at the end of the
year. then the banks were to surrender
their certificates and take the amonnt OF
bonds TO which they wore entitled at
1l7la. The answer OF the banks to the
proposition was that their gold was held in
the reserve required by law. and that. II
surrendered Tor bonds. which were not cur
rent money, 1t would have 10 be replaced
by other money, which would mean that
they would have to call In loans TO an
equal amount. The result would be a very
stringent money market. and perhaps .
panic.
What the bankers are willing to do. all
though hey have not made the direct of
fer, is: They will turn oyer $50. 600, 900 IN
gold to the treasury il IL will issue in ex-
chance certificates or notes bearing pa per
cent. interest. which can be counted in tho
reserve and be used in settlement of bal
ances ut the clearing houses. the same as
money. and which will be received for bal
ances due TO the subtreasury and be issued
In exchange for green backs or legal-tender
notes. The certificates could be the same
ss the old clearing house certificates issued
against collateral, which Ia this instance
would be gold.
The Post says: I'm round mum bers. the
New York Clearinghouse banks hold S10.-
600, COO gold. OF this amount IL Is curions
to note exactly one-nalf is held by eight
banks out Of the sixty-four. 1t 10 but Just
to say, however. that these same eight in
stitutions. exactly n year ago. held $1,000
O00 more In gold than they hold to-day. and
that hence, while acting In come cases for
the heavy shippers OF gold. they have borne
at least q reasonable share of the seasons
gold withdrawals. This vast preponder-
ance of specie holding IS. In the hands of q
very few. gives To q single group of bank
ers virtual control OF the situation"