New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-16
TO PROTECT THE RESERVE.
THE ISSUE OF GOLD CERTIFICATES SUS-
PENDED.
NEw-YORK BANKERS SURPRISED BY THE ORDER
FROM WA, wA,HINGToN-FINANCIER IN THIS
CITY AND THE EAST IGNORED.


The Sub-Treasury authorities yesterday morn.
ing received a circular letter from the unted
States Treasurer at Washington. giving instrno-
tions that the issue of gold certificates on the de-
post of gold bullion be suspended until further
notice Before the hour of Opening business o
confrmatOry dispatch was received from secretary
Carlisle. The news was not widely circulated ana
not generally known in Wall Street until late.
The Sub-Tcasury authorities contcntcd themselves
with informing each individual applicant that tho
authority to Issue gold certificates had been suS-
pended. This action of the Treasury Departments
is taken in accordance with section i2 Of tho
act of july IL, ss2, which requires that ccrtifi-
Gates shall not he issued for deposits Of gold when
ever the amount of gold coin and gold bullion
in the Treasury reserved for the redemption Of
United States notes falls below one hundred mill
lion dollars The law leaves the Secretary of tho
Treasury no discretion, and the action of yesterday
il public announcement that the gold reserve Of
81 90 600 900 has been reached in the payments
of the National Treasury.
The full section of the law relating TO the gold
certificates and the gold reserve is a. follows:
Sec I2 That the Secretary Of the Treasury is au.
thorzed directed receive deposits Of gold coin with
the Treasurer or assistant Of the United stats
I'm sums no: l.s than twenty dollars and 10 issue cor.
uncat tn refore I'm Of not less than twenty
dollars each, corresponding with the denominations h
United State, notes The deposited for or rein.
nting the certificates n deposits shall be retained IN inc
Treasury for the payment Of tho sums on demand Sae
shall be receivable for customs ta>e' ana al
public dues. and when received may be ressued ana
-uch certificates also silver certihcates "eh h'd w
any National banking association, shall d. couh'ea %
p,rt It's lawful and National banking 'o-
otion shall be member clearing house in which
such certificates shall he receivable In the setehent
Of clearing house balances provided that tho SECRETARY
Of the Treasury suspend tho issue Of such gold cer
the Of
i'm I'm tho Treasury redemption OF United
States notes falls below hundred millions OF collars
and the provisions o. Section fytwo hundred and seven
n tho Revised shall be applicable to the ceran'
Gates herein authorized and directed TO be issued
Section 5,eO7 OF the Revised Statutes above
rcferr,d TO- forbids National banks To lend on
United States notes, etc.
Since the recent heavy renewal OF gold exports
il has been apparent that it was only question
of short time before the bullion reserve would
be ntrcnchcd upon. The action OF yesterd1y' now
| cvor was surprise to bankers, as Ii was not
| annoront in tho lates. Treasury figures that the
reserve limit had been reached. There was no
reason 70 anticipate the step taken either, through
| preliminary Intimatons from Washington as tho
! present Administration has completely ignored 'ho
! existence of Ncw-York bankers and bank presi-
dents in shaping its policy. The public mlnd mas
not been prepared in any way for the reception
NJ Yesterdays news and there has been the
utmost reticcnce maintained by Secretary Carlisle
! "a 70 the future OF the Governmeht IN
| NEE ting the financial situation. there Is a gem
eral feeling of chagrn in New-lork banking cir
cles AZ this strange policy OF silence IN vie" vi
the anxiety felt in the business woria a' '''o
steady deplotion of the free gold in the Treasury
and at the other policy OF ignoring New lorKs
financial men as though they had no existence
Tho city il full of prominent Democratic banKers
| opd b,nl, nrosidents-mcn thoroughly In accosu
| with President Cevelands supposed monetary
vicws-blt politics has had no place In Mr' oa''
,is,o,s independcnt attitude. No advice has peeh
| sought from the financial ccntre of the country
| no assistance asked to help the treasury main.
| tain its gold resources, no Indlcatloh given "
| how the Administration hopes to meet 'hc pio'-
| loms Persons informed in tho matter say 'i'a'
| eminent Democrats like August Belmont OF 'i'o
officers OF the National C!:y Bank nave oeSn
| IGNORED along with Republican men OF hia"oo'
The attention of the Treasury Department "V",
% b,ve hec, given entirely u the bankers ana
snancer- west of the AlIcghanies and south OK
Mason and Dixon's line. New-lorks hnahcia'
,,or,d dominant a. il always has been In the
| sr.pc.s of tha Nation has been lett withous
! ,pform,tion save that common to the eh'ro
| n,h,c and has not been asked for It's Judgment
| or its ad in solving the pressing questions VI
| finance now universally discussed
| I, may be too much 10 say that the influence
| of the South and the West has reached the
Treasury through sources not up to the EaS'er"
| standard of sound money views. but sohc ca"'
| tious brokers say that from ihtiila'iohs i'a."
| ing them, this appears to bc the case. IL III
| h so IL would not be impossible, il is consin-
cred. if suggestions may have gone 10 "ecr'',
| tarv Carlisle on such lines as would DO co'eie"
| hv the idea of rcSrrving the Sloo,ooV'oov so'"
rosorvo only for the old cga-tender notes, better
known rs cre,nbacks, thereby conlinns Tue re'c"'p
tion Of the Treasury notes Of 1890 to silver sue"
| - ,,i,v mich, suit the advocates of free silNer'
hu, IL woud be bitterly repugnant to the con-
| s.,v,tis,n of the Fast which knows now sehs%
,;,.o oon;,ol il on financial matters No charge
- r,odc that the Treasury Department has ever
| s.,iouelv considered suggestions OF this chatac-
Tor but when New-Iork capital hcars 'ii''
Western and Southern bankers alone seem I"
possess qualities worthy oi adVisers oi ',i' '"
n,;ristration il cannot refrain from feeling OF
| discomfort and surprise
r,,, oxncctatlon of heavy gold exports thiS
,oal- !. almost general in Wall Street. Yesterday
| ho shinm.pts were Sl,2JO,0o0: the specie having
| h,,, taken from the Sub-Treasury Oh tridIy. WI
1rnsdov il is believed that the shipments VIII 10
| about twice that sum. The foreign "ahN''' VIZ"
will doubtless make IN" exports "''rc 'i'' ~
| yesterday definitely to state what thcii shiPp'"s
| orders might amount to: but it was iearhe" 'hiS
one banking house had mad" ARRANGEMENTS 10 sen'
81 $50, 900 abroad on Tuesday ana " was c'"-
sidrred certain that another house "o"iu snlp
| ., ooo 600 The foreign exchange markets were uh-
| ,ol,v active Yesterday. SATURDAY generally pcihS
| .,rd,d AS an OF day" The strength ot the
rarLet was increased, an;l sterling exchange has
reached a point where gold exports may De maze
almost if not quite, without loss The Conti-
mental exchanges for some time have permitted
profitable shipments. The making of heavy ster'
| ling loans some thirty and sixty days ago Is Do
| Inning TO tell on the exchange market. and the
| demand 10 cover loan bills keeps the market swept
bare of the moderate supply Of commercial bills
that it enjoyed.