The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-02-11
Proposition Made BY New York Bankers to Ex.
change $50, 100000 or More OF Gold Coin
for Like Sum of Treasury Notes.
Secretary Foster Reported to Have Ac-
cepted the Offer of the Financiers.
Carlisle Endeavors to learn the Cause of the
Efflux of Gold. but FsiIs-Action of the !
New York Clearing. House.
GOLD FOR THE TREASURY.
Greenbacks to BE Exchanged for the Yelio'
Metal-No Bonds to He Issued.

Greenbacxs He Exchanged for the Yellow
Metal-No Bonds to he Issued.
Special to the Indianapolis Journal
WASHINGTON, Feb. l0.-''There will bo
no serious drain upon our gold reserve. It
will be impossible to cause the Treasury
Department any serious embarrassment,
unless there continues to be needless and
constant agitation of the subject by the
newspapers" said Secretary Foster. to-day.
when asked whether it was true that he
attended to issue special series of bonds
to be exchanged for gold. The Secretary
then went on to say that the bankers of
New York had voluntarily offered to ex-
change at least S5O.00O,0OO gold coin for o
Ike sum of treasury notes if necessary to
satisfy the demands for export. He did not
think that more than half the
amount would be necessary to
turn the balance of the gold flow TO the
credit of che department or TO tide over the
run of our available gold to a period when.
by the laws of trade the balance must of
necessity be in favor of the government
Secretary Foster declared that there is not
the least danger that gold will 60 to
premium, or that there will be an en-
barrassment in the money market The
Secretary left for New York this afternoon
to attend the Lincoln banquet but before
departing authorized an emphatic denial
to be given TO the following dispatch.
which was sent to New York newspapers
by It's Washington correspondents
Secretary Foster ls now issuing bonds IN order
to replenish the stock of golG in the treasury.
The issue Is upon the authority contained in
Section OF the resumption act and over fifty
millions are to be issued 1t is the purpose of the
department To have bonds issued and the gold in
the treasury before public announcement is made
of the issue. and therefore Secretary Foster will
not give out the facts. Starting with fifty millions
the plan contemplate the issue OF as much more
as the circuHsta demand, even up TO the limit
of the entire amountsof outstanding greenbacks,
provision for the redemption OF which gives the
excuse and legal authority for the issue Of the
bonds.
When the eye of grass burner" Bynum
caught the above dispatch he grabbed o
piece of paper. and, without stopping to
investigate, wrote resolution calling
upon the Secretary of the Treasury for in.
formation on the subject. This he intro
duced IN the House without delay. If the
Hoosicr Representative had not been SO
impetuous IA his desire for notoriety he
could have asce rtained by merely tele-
phoniDg TO the Treasury Department that
the dispatch was a sensational fabrication.
Respecting the position of President Har-
rison upon the question of an issue OF
bonds TO meet the much discussed but not
dangerous gold panic" 1t can be stated
upon authority that he has been, from tho
dny that he entered the White House, and
ID now. opposed TO any increase of the bond
issue. He wonld. of course, prefer an
issue of bonds 10 financial disaster. but
be has no fears of such a contingency.
When there was a panic threatened two or
three years ago probably with view to
forcing an Issue of bonds in the interest OF
SPECTATORS. the President stated most en-
phatically that he wanted hls records clean
on that subject; that there must be no
bonds issued except as a last resort
TO save the commercial interests of the
country. No panic resulted. and none is
feared now. The President has not changed
his policy, there will be no bonds issued.
and there will be no financial trouble un-
less force is employed by spectators. The
President has no fears but that his admin
istration Will run out. three weeks from
tomorrow. without the necessity of Great
ing larger issue OF interest bearing pa
per.
CARLISLE GETTING POINTERS.
The regular press association reporte,
says concerning the gold scare: "Mr. Car.
Isle has within the past few days. giver
much attention and study to treasury af
fairs. acouainting himself with the bust
ness pending in the department which il
likely to remain over for solution by the
next adm inistration. The principal OF
these questions is the silver problem. or.
rather. the recent heavy absorption of gold
This question he regards as one that will
require his immediate consideration. and.
to foTtify himself with all the information
possible, he has had personal con-
ferences with several of the moer
prominent officials In the Tressurer's
office. With these he has discussed the
methods that the Treasury Department
has employed to protect the gold reserve.
They admitted frankly that all their theo-
rIes as to the cause of the outflow of gold
have been dashed TO the wall by recent
events. The amount of imports and ex.
ports. which was formerly thought to exert
u controlling influence. seems TO operate no
longer to any appreciable extent. The rate
of exchange also ceases to operate, as gold
continues to 20 out. These statements
were made to MIR. Carlisle, and the officials
were quite frank in admitting that they had
stopped trying to find out the reasons for
the outflow of gold. and were instead
bending all their energies TO prevent
the gold balance from being entirely ex.
hausted aud to keep intact the gold re-
serve Of Sl00, ,000, COO. To this end Secretary
Foster has. 1T is stated, made satisfactory
arrangements with New York for the ex-
change of legal tender notes for gold coin
sufficient to meet all demands for some
the opinion that the gold output within
the next few months will not be 80 great
as IL has been during the past few months.
The idea Is also advanced that soon
the tide of travel to the worlds fair sets
this way there will. be a great influx OF
foreign gold. Some treasury officials ad-
vance the opinion that as the House has
refused to repeal the Sherman law gold
will cease to be exported, on the theory
that the gold movement 70 Europe was IN.