The Press., 1893-03-30
Number 52.


 gregate hundreds of millions of capital, and who have in their vaults over ESQ., 100000 of gold. They met to have chat with Governor Foster, the secretary of the treasury. They wanted to talk with him about the gold which the government has in it's vaults and the necessity of in- creasing the supply so that the govern ment will always be able to give any man gold when he asks it in exchange for gov ernment paper, which is what is meant by I gold payments.
 Some of the men who gathered there met thirty years ago another secretary of the treasury, and that important occasion was very forcibly brought to their recol- lection. Governor Chase, who, like his successor, MT. Foster, had been governor of Ohio before he entered the treasury de- partment as it's chief, had sent word to some of the great bankers of New York that he would like to meet them. They gathered one evening in the parlors of a young banker of that time, George S.. Coe, who is now an active banker of New York. What occurred at that meeting was told to the writer by one of those who were present. Secretary Chase, sitting among this group of bankers, said to them in effect: "Gentlemen, have come to see you as the representative of the financial department of the United States Upon my shoulders rests the responsibil- ity of providing the money with which to pay the great expenses entailed in the support of an army and the military Ioperations of the government. We have a great army. There is no difficulty about getting soldiers. If the emergency de- mands it, 100000 men may be enlisted within month but we have no money to pay them, to feed them, or to arm them. We need money and need it now. We need gold and great quantity of it. We must borrow it until we can provide a means by taxation of bringing it to the treasury. Now, gentlemen, although am secretary of the treasury, I am no financier. I can only tell you what is needed. 1 can only obey the laws of con- gress in paying out this money. But you are financiers. It is your business to de- wise means for raising money. l appeal to you, both as business men and patriots, for aid in this emergency. I say to you that the resources of the United States are ample to carry on 8 war for many years with an army of 1000, ,OOO men in the field and without greatly impairing those re. sources. The wealth of the United States developed and undeveloped, is abundant to meet an outgo of at least s ,000, ,000 g I day. leave the matter, then, in youl hands," ..... Next morning these bankers met in the offices of the New York Clearing House an association whose power is perhaps the mightiest in finances that exists upon the American continent, although very seldom used. The bankers consulted less thar half an hour. At the end of that time 8 dispatch was sent to Washington an. i. nouncing that New York banks would lend to the government $50, 0,000,000 in gold at once, and within day or two the coin was in the treasury. The announce ment itself was of even more value thar the money, since it was a proclamation to the world that the great banking inter ests had faith in the credit of the govern
 ment and had staked the enormous sun of $50 0O0, 900 in gold as a pledge of that faith. Upon two other occasions after that the banks of the seaboard cities fur nished $50,000,000 more, and it was tht opinion of Roscoe Conklin, of James G Blaine and of many of the bankers tha with this amount of gold, and with sucl further amounts as the government could have secured by drawing upon Europe, i r would have been possible to maintain I specie payments throughout the war. Since then the government has come t,
 the rescue of the bankers when they hay :, been in distress several times, but unti this meeting with Governor Foster no ap
 peal has been made to the bankers to giv
 aid to the government. At this meeting
 it was suggested that, since all the Eu
 ropean, countries, in view of the conti z mental war which it is believed will breal :, out in a few years, have been drawin gold to their vaults, this explains wh
 so much gold has been taken out of tn
 United States; and MT. Foster was urge
 to checkmate this movement, and by tn
 issue of bonds, or in some other way, dra, . back gold enough from Europe to make ~ perfectly easy for tho United States t . maintain gold payments.
 "How much gold is in the Unite !, States ?" Mr. Foster was asked.
 "More than $600, 1000, ,000," he replied. Has any country as much as that?" : ''Yes, France has little more" !. "Where is this gold?"
 "Well, the government has nearl
 $23O, ,O0O, ,OOO of it, and the rest of it is i :, banks and is hoarded."
 = = "Is there much hoarding?"
 "More than most people suspect" ' To illustrate this tendency to hoard, a
 experience of MT. Hepburn, when he wa . bank examiner for New York city, wa :, told MT. Hepburn is now comptroller C :. the currency. When he was appointe
 bank examiner he made a thorough ez animation of the condition of every bank ing institution in his district, which il cludes New York City. In one of tn :. greater banks he was told that there la ! at the bottom of it's vaults number
 canvas bags containing gold, which ha been deposited there during the war by a wealthy man stili living MT. Hepbur = felt it to be his duty to count this gold, { "a it was charge upon the books of u
 bank.
 ! He went into the vaults. He found Il Ia bags covered with dust and some of the i, with mould. They were in exactly u