New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-10
COLD FOR THE TREASURY,

High praise is due to the banks of this city
which have taken steps to arrest the depletlon
of Treasury reserves. Their action is the more
honorable because it was entirely voluntary
and was in no way suggested or even expected
bv the Treasury. 1t is the strongest possible
proof that the Treasury is neither bankrupt nor
likely to be, as some partisans nave oeeh IN
sisting. that public confidence in the intention
and ability of the Government to maintain gold
payments is not impaired, and that the great
financial institutions fully appreciate the neces-
sity of preventing degradation of the note
currency to the silver standard. Because 1t is
conclusive proof of such a spirit, this act Will
have more power to check exports of gold than
ANYTHING the Treasury can now do
The wise bankers have evidently realized that
the present Administration, with less IMAM
month Of its term remaining, cannot with pro-
prety devise and enter upon new fne OF pol
icy which would hamper the Administration that
is to come. Undoubtedly it is within the legal
mower of the Treasury, at this as at any other
time, to issue bonds of the United States IN
order to obtain more gold. But the discretion
ary power to do this should not he exercised
without adequate and urgent necessity, and no
sucb necessity now exists. To take that step.
inst before a new Administration comes into
power. might embarraSS it's action without any
satisfactory reason. For the Treasury hods
even now Sos, 10000 600 gold in excess OF
certificates outstanding, and 500 100000 OF
that amount it holds for the express purpose
of redeemng notes whenever they may be pre-
sented. The use of part of that fund for the
purpose to which it was set apart would not
only be proper. but pending change of Ad-
minstration and possible change Of laws re-
parding silver or the revenues it would be
altogether preferable to any proposal to borrow
money.
The bankers who appreciate this position OF
the Government have also seen that the reduc-
ton of the Treasury gold reserve below
500, 900, 900 would tend to do harm in btsl-
ness. 1t would create alarm not because the
Treasury has not in its bullion reserve ample
power for the present and for some time 70
come to meet all obligations, but because OF
fear that its power TO maintain gold payments
max not be fully exercised by the coming Ad-
mnistration. Within month President elect
Cleveland will have opportunity, in his inaugn-
Ial address and by summcning an extra sesSi2n
of Congress. IL necessary. 10 HdIilcs1 lho Poi'
lev he intends TO pursue in regard TO the
finances If he meets the emergency as his
friends expect he will. the danger Of serious
disturbance in business will be greatly lcsscnod
Until tia: time, Therefore it was in high de-
gree important for the banks that apprehensions
about the future should not cause business dis
turbance.
Thus the action of the banks Is cmincntly
wise and patriotic, although the Treasury has
no present need of more gold than it holds
The only danger now springs from apprehen
sons Of the business community. That danger
can most properly be removed by demonstra-
ton of the confidence of financial institutions
When they draw out legal tenders in PLACE OF
gold deposited in the Treasury, they show If
the strongest p, s,ible way their confidence thai
the Government has abundant power to main
tain gold payments. This demonstration should
do much to relieve the apprehension Of those
in othcr countries who are demanding gold fol
export Large amounts have been ordered fol
shipment Saturday and Tuesday next but it il
net unlikely that the deposits made by thu
banks NAV cause considerable reduction il
the shipments