Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1893-04-26
COULD NOT AGREE.
Uncle Sam and the New York
FinancierS.
TWO PROPOSALS THAT WERE MADE.

Carlisle Said to Have Offered a Bond
Scheme, Which the Bankers Rejected
and in Return Proposed IL Certificate
Plan, Which the Cabinet Refused TO En-
dorse-The Treasury Has Offers of &c.
600, 900 in Gold.
NEW YORK, April 26.-The proposition
made by Secretary Carlisle through treas
urer Jordan TO the New York bankers is
understood TO have been this: He wished
to know whether they would lend the gov
eminent $50, OO0, coo in gold for che year
from May l, the loan TO be secured by ten
year government per cent. bonds. to be
issued at No., which would be equivalent
to a 3 per cent bond. The terms of this
proposition were that the bonds were TO be
placed on trust with the secretary of the
treasury or the sub treasurer, and as the
banks turned in gold certificates were TO
be issued TO them therefor. At the end of
the year, or by April l, 1894 (Which would
make the time only eleven months), the
government was to have the option of pay
ing off the loan in gold with 3 per cent in
terest. II the government could not pay
the loan in gold at the end of the year 1t
was assumed, although Carlisle's state
ment did not say so, that then the banks
were TO surrender their certificates and
take the amount of bonds TO which they
were entitled at 111}a.
How the Banks Viewed the Matter
These bonds were then to be the absolute
property of the bankers to hold or dispose
of as they saw fit. The answer of the
bankers to the proposition was that their
gold was held in their reserve as required
by law and if surrendered for bonds which
were not current money it would have to
be replaced in other money, which would
mean that they would have to call in loans
to an equal amount. The result would be
very stringent money and perhaps panic.
The bankers had lost in the year past SOP,
GOO 600 in deposits, and adding 100000 DOC
more would bring the total loss up to
$l43 coo 900. The strain would come upon
merchants and other business men and
trade would be paralyzed.
Proposition of the Banks.
What the bankers are willing to do, al
though they have not made the direct Ouer
is this: They Will turn over $4,000 G0 in
gold to the treasury department if Ii VIII
issue exchange certificates or notes bearing
2I5 per cent interest which can be counted
in the reserve and be used in settlement of
balances at the clearing house the same as
money, and which viii be received for
balances due to the sub-treasCry and be
re-issued in exchange for greenoachs or
legal tender notes. The certificates could
be the same as the old clearing house GER
tificates issued against collateral which in
this instance would be gold. Bya proposition
OF this kind the administration would Sc
cure the gold; otherwise only bond issue
will draw gold in any large amount from
New York.
Lamont Criticises Jordan.
There is much comment here over Score
tary Lamont's statement that Conrad y.
Jordan was only a subtreasurer and over
rated his importance Lamont's comment
has made Jordan, Cannon and all Others
more reticent than ever, and now they in
sist that all information for the public
must come from Washington.