New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-15
AGAINST A BOND ISSUE.
Continued from First Page.

as Influenced by the developments at Washington Ill INC
| interval b.
Iaere WIS only 100000 in gold exchanged io'
legal tenders AT tie sub-Treasury yesterday Inc eA
change was made By the smith National BANK. Ihis
ba I has a small amount OF specie In Its reserves,
and the exchange was a surprise. IL was suGs'S'e"
that possibly TIE banks relations to the ''ea''hs
| House might have enabled 1t TO part wiun the so
without serious loss to its reserves IL seems " w
Nv, imnrcssion in banking circles that the Newlork
banks ls,ve dore all that they are prepared to 90 III
the circumstances toward assisting In the maintenance
Of tie Trcasurys gold reserve. The plan OF contribution
bv which th, leading Institutions prevented last wceh
hcayy fall I'm the amount OF free gold In the treasury
was adopted Voluntarily. and possibly with the hop
that all anxiety would be allaycd In hnahcia '.''
BY radical steps by the Treasury Department -" ~
future course Of tho city banks, 1t Is ih''m'ou' VI"
he more I'm the line OF policy adopted by TIE Nh"oN"
CIV and ,ho Hanover National Banks In guarding
their supply OF gold. 4,
The discussion Of the financial question was III
tcns,Gd Yesterday BY the point raised that no au-
tlorfy existed for Treasury Department 10 Iss"e
bonds in existing circumstances. fnr'hcr on are
printed the expressions OF few prominent o''"
presidents wlic,. indicate the almost Unanimous ne
lief in financial circles this question Assis'i"'
Treasurer Roberts declined TO discuss the point. But
n u known that tho sub Treasury officials have never
EXPRESSED doubt on this point independently OF the
frcoucnt prcvons declaration Of the secretary oil tn"
TroSsurv Many Of the banks II l. understood nave
taken legal counsel upon the question: ana nave p''h
assured OF conclusions In harmony WITH INC "''''
nnccs OF Secretary Foster and OF officers oil preceding
Administrations. The "Act 10 provide for tic re-
sumption Of specie payments In section J. after
amending provisions Of the Revised oH'ut's r's''"
ing the National banks. saws:
And whenever and 50 circulating notes snail
hs i.uci To anv such banking association so incrrae
s CAPITAL and circulating notes or 80 nearly Organizer a
afr csad IL shall be the duty OF the secretary VI ~
Treasury to redeem cgacndcr United States fo'c III
cxrcss only OF $500, 000. 600 U inc ""lou'
IL so nor centum n the OF national oahh
notes 50 issued any such banking association a. ae
.aS, md to continue redemption a. such crc"'".
ro,es a issued there hall be Outstanding 'he sum
ooo o 600 NJ sch ert ltcnde United states notes ana
n, more And on aud after the first day OF January
ammo domin eighteen hundred s"vcnty'hhe INC go.
,arv Of che Treasury shall redeem In COM inc 'no
S,cs lc,aI,cnde, notss then ding. their pres
entoti,n for redemption the Office OF inc Afr""'
r,c.surcr ~ tho Trf,cd States in the city Of Nc"h
in sums no, $50. And n enable INC oc're'H
~ the Treasury prepare and proNid' fo' ur ''uP
- .. ., authorized or rcqucI he Is authorized 70 u'c
any sunus revenues from time To umc' IN inc ''e'"!
not othciwis, appropriated and to issue sen ",
~ a. not less than mar coin. either o inc uc'fi''
4 bonds of the Uni,ed states described Ia inc ' W
Conotc., appfo.cd July II, 1870. cAuuea '" "
authorize the rcfundnu OF tho hHt'o''i a'"' WV
ona,s. rrivlceos and exemptions, TO the cNtet heec'
sarv n carry this into full effect sn1 !" use '"c p
cecds IN roof the purposes aforesaid
Thi, sncc.o Resumption act WIS approved on jan
nary H. lr75. and uGdcr II, provisions SP''" pay
,..nts were resumed on Jan,ary I. 1870. Bu' b
FOR, rr.un,piion, the legal tender notes hhh "''
materially decreased BY cancellations ard IN" ac'
q, uov l. Is7s provlded tina, absolute cnncelati'n
hould cco.c and oil lcral-tcndcr notes reie"mcI
thereafter should b. roi-sucd In IN" cour-" ~ ''e
business 81 the Treasury. On July l. ieo'' IN
amount 0, outstanding l"gsl lender notes was F''''
900 300 When the act Of 1875 went mo c"ec
tho amount was left ~ SjiG,G- ,o'' INA " mas "
nalncd there since. The Hgm 'ch"'r "'''
.,ncc 1875 have been redeemed TO the amount :"
$50 600 600 hut the note, have been r'N'h'n' Inv
notes presented for renewal ON account 81 '''nS
,,orn ont nrc not Included In thc>" ieur', No one
has ever raised t." point that IA" h"rS rn'"'u i'
old ones or tho notes rcisSued ~ c~F''' '''
rodcmptIon were not sIhject 20 III" continuing aic'
Ion o, redemption under III" act of iS'' ~"
treasury Department has always he'd tha' inc n'''S
v Of redemption applied 10 rcs'ued notes or other
Use the Government wonld have had M hh'hoHN
. resume node payments January |. 1879.
There IS no specific law requiring the setting apart
81 any particular fund In gold Tor 'he purpose vi
exemption, bat the sum OF rloo,oo'o' was u
cnred by Secretary Of IN" Treasury Sherman 10
a tho .oe reserve for the resumption Of spec' pay
mcnts and succeeding secretaries Of the Tr'nry nav"
II, onci,l documents confirmed his iudgm nj. In
ia oct 81 1870 amending The Nnto1a Banking act
hic authorized tAc issue 81 certificates against d"
,o.,. 81 gold. It wa, provided:
rto ,h Secretary 81 to Treasury shall suspend tho
~ - surh gold certificates whenever rc amount Of gold
,n aud bullion In Treasury rc"rvcd Tor me fel"ml
o, - United STATE. fall below one hundred millions
u dollars.
,rrc.surv officials have held that In addition 10
,ho.c nroylons the specific declaration OF the at
q, June 1890 providing FOR the monthly purchase Of
, fno If sil.cr That The policy OF me
United states was 10 maintain competent fund
for the maintenance Of specie payments. rs "
was nut yesterday By ono man In position to
sneak with authority as TO ibe views OF the Treasury
officers:
al tho Resumption act had any validity It's pro
Visions must have been continuing AFTER the d"'e
OF actual resumption OF specie payments. Therefore
tho reissue Of redeemed legal tenders left the obga
ton 10 provide for their redemption. To meet
the plrposcs OF redemption the authority 70 Issue
certain bonds granted, and II the OBLIGATION OF
REDEMPTION remained. the authority 10 provide for IL
must continue. There was no specific sum set apart
for the redemption OF The legal tenders, but the sub
segment legislation and the construction OF the laws
by an unbroken line Of Secretaries OF the Treasury
have established beyond doubt In the minds Of every
man interested In the integrity Of the the
authority Of the Government TO issue bonds to maintain
The gold reserve deemed necessary 10 sustain gold
payments by the Nation"
The Introduction by senator Sherman In the United
States Senate OF the providing fJr tho Issue
OF per cent bonds redccnable after five years, for
rc.umpon purp srs Is MT considered by any banker
AS In the slightest degree repeating his opinions often
expressed AZ to the authoiy Of the Treasury. New
York bank presidents agree with his own dcrlara ion
| that the measure simply IS intended TO provide n
possibly lower rate Of interest any bonds that
| he Issued. The suggestion made Yesterday, how
ever that the per cent bonds cculd be issued at
| which would Weld 3 cent, ana the is,te
| Of bonds could be made promptly In case o!
an emergency than could be the case where entirely
new bonds would have to be engOSsed.
AS indication OF the willingness OF capitalists
to subscribe for any possible bond issue, II was said
yesterday that dispatch had been sent to Secrc-
iary Foster at Washington by Frederic Cromwell Of
the Mutual Life Insurance Company Charles r. lien