The advocate and Topeka tribune., 1893-04-26


gold for silver bullion and storing the silver in
its vaults where it is as useless for any pur-
pose of circulation or redemption as iron, lead
or any other commodity.
"The government, In the first place, issues
coin treasury note In payment for silver bull
lion, and then the coin treasury note Is pre-
sented at q sub-treasury and the gold Is paid
out for it, so that the effect Is precisely the
same as if the gold were paid directly for the
silver in the first instance. About 100000 of
the gold which was withdrawn from the sub
treasury last Tuesday for shipment abroad
was paid out for these coin treasury notes. No
order has been made to stop the payment Of
gold upon these notes, nor has any one been
authorized to say that such an order would be
Issued. The purpose of the government to
preserve It's own credit unimpalred and main
tain the parity of the two metals by all lawful
means will not be abandoned under any cir
cumstances. In view of the existing leglsla-
tion the only question for consideration is as
to the measures that ought to be adopted to
insure the accomplishment of these purposes,
and upon this question there is, of course,
room for wide differences of opinion.
"The total stock of gold coin and gold bull
lion now in this country, including what is
held by the banks and individuals, amounts to
S74O,0OO,OOO. When l came into the treasury
department on March Z, the amount of free
gold on hand had been reduced to S9S7,OOO, but
by arrangements with western banks 1t was
increased until, April /, it amounted to nearly
e8,OOO,0OO. Then heavy shipments began to be
made, and two days later we had only $4,000,
but now 1t amounts to S9S5,000, after deduct
ing what has been withdrawn from the sub
treasury to-day for shipment. Arrangements
are now In progress by which more gold is to
be procured from the west, and hope that a
sufficient quantity will be secured to keep the
gold reserve intact
''There is gold enough in the country to
meet all the requirements of the situation,
and If all who are really interested in main
tanning Sound and stable currency would
assist the secretary of the treasury to the ex-
tent of their abilities, the existing difficulties
would soon be removed"
In addition to this statement Secretary Car
Isle said that 100000 in gold had been taken
out of the sub-treasury In New York to-day for
export. The class of money paid into the SUBJ
treasury for this gold withdrawal includes
100000 in gold certificates, which, to that
amount, did not reduce the gold reserve be.
cause they themselves were practically gold
So the actual gold reduction of the day was
only 100000 leaving the balance as stated
above.
This Is the first considerable amount of gold
certificates paid into the sub-treasury for gold
export for many years and encourages treas
ury officials to hope that the banks, seeing the
situation, will continue to present gold certlh-
Gates in part payment at least for gold with
drawn for export.
It might be observed that in both
dispatches the fact that we have been
contending for is admitted; that is,
that the policy of the government in
the execution of the Sherman act of
1890 results, not in an increase of the
circulation by the issue of treasury
notes in exchange for silver bullion,
but on the contrary, the sole effect Of
the policy is to pay gold for this bull
lion and lock it up in the treasury
vaults where, as Secretary Carlisle
says, {" 1t is as useless for any pur-
pose of circulation or redemption as
iron, lead or any other commodity"
He might add with equal truth that
it is absolutely useless for any pur-
pose. It might as well remain un-
mined in the Rocky mountains.
NOTHING like keeping up the credit