New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-22
yo DECISION ABOUT BONDS.
,,, ADMINISTRATION WILL NOT JUMP
TILL IT REACHES A DITCH.

~rprTARY FOSTER VIEWS AhH 81 '"iA0'
r,ru LESS CONCERN THAN A WEEK
.Go-rHE 500, 100000 RESERVE
AND A GOLD PREMIUM.
rpy TELEGRAPH TO THE TRIBUNE.1
..,;rcton. Feb. 2l.-Thcrc were rumors to-
ord there is good reason to believe that
@ - ,rsrs sent broadcast over the country-whch
~ !, that the Cabinet at its meeting to-day
.lIv resolved not to issue bonds, no matter
s., tho situation or necessity might be. 1t can
.o,ed upon the highest authority. to use Il
-. hut easily understood expression. that there
va, the least foundation for the rumor The
,h;rst il is true, discussed the financial situa-
y, as il has done at nearly every meeting
,,h;n the last two months, or when the exports
aid first began TO attract general attention
". n reached no conclusion as to any policy
ha adopted In other words, the Admins
s.,,on for obvious reasons, believes in the old
.s.,s that il is not wise TO jump until a ditch
hss been reached.
Il oupht 10 be borne in mind, moreover that,
~, all. il is the Secretary of the Treasury
"A nat the Cabinet who will be held responsible
.. the conduct of the National finances III
:. .ommits blunder, lie II is who Will he I'M
....bsi by Congress and not what Is vaguely
lid the Administrations lie, therefore, Will
,.,e,mine what is to be dore In case OF an
.r.,ceney BY this the idea is not meant TO
:. oonveyed that Secretary Foster is not IN ac-
..,s with the views held by President Harrison
N the contrary, it may be said that they are
rnst thoroughly agreed in the ends to DE at
.rsd. Though they may have hal differences
., opnion in the past as 10 matters OF detail.
Tbess have now. however. disappeared. and 1t
nav confidently be stated that nothing Will De
aons that has not the unqualified approval oil
ho,h the President and Secretary Foster.
IN. stuation is viewed to-day by the latter
nth less concern than it was week or TWO ago.
!, ,s true that the stock Of gold IN the NauiS vi
As Treasury has dwindled down in the last week
"A less than half what il was ten days ago put'
IN the other hand. there are also signs wiz"
.;y, promise of coming improvements. fi
one the rate Of foreign exchange mas rlseh' sho"
,,, that il has become less profitable to sl'ip
rod 10 Europe This greatly encourages oecrc-
s,rv Foster, who is by no means to nc cohsloeIc'
the victim of sanguiRe temperament. hc
views with greater composlre, too, the pr'spec'S
Of the cold reserve falling TO near or even peioN
the traditional 81 0O,00O,JOO than he l'ihei!
did, believing a many others do, that should '"e
,.erve amount 10 S09,090,9G9, it would not
n,emium That misfortune, for as such it VIII
be regarded by everybody. will not depend IN ''e
on;r,on II SeereIaly Foster, upon the fact that
the Treasury carries million or two more oi c'e
Of reserve in its vaults, but upon the want OF
confidence which, in a temporary iii OF lear, di'h-
eul, TO control in any commercial community. may
be exhibited by comparatively small BODY oi
pen.
Al
nor the Secretary of the Treasury at any ume
&,,J n. sitnation as has been gliblv charged
IN bss,ile uapers. in a merely political hight IL
NJ. not occurred to either that it might be oil
advantage to him personally and to his party
10 leave Office without seeing gold quoted at d
premium or adding to the National debt by the
sale of bonds but both have always treated the
question from the point of view that II is the
mramount duty of the Executive power to pro
,ect the credit of the Government at all hazarIs
AZ the same time doing what il can legally 90 10
prevent a financial panic sweeping the couh'rS'
All this is said merely 10 show that the necie-
tsry Of the Treasury is by means prepAfeu
yet 70 say what he will DO in case OF an enei
rency. He may sell bonds, and he may 'hih"
,ate 10 permit the reserve 10 fall below SloOooV'
eoO
As 10 the sale of bonds for the purpose Oh oo-
tanning gold. il has been stated in certain quar-
ters that III, Secretary had 10 guarantee that the
buyers would pay gold for the bonds; that 'heH
could legally offer silver, and that silver, beih3
cojn. would have 10 b. accepted by the Secretary
This assertion is dissipated by reference 10 tne
hethods adopted by Secretary Sherman wheh hc
began to accumulate gold in order to prepare 10,
the resumption of specie payments lie SOU
nearly 500, 900, 900 of bonds by private contract
10 syndicate composed of DreXel, Morgan & Oo'
Morton, Bliss d Co., Jesse Seligman a. 20, ti'e
First National Bank and others, stlpulatlng VIZ
the bonds shout be paid for III gold Dy 'h9 h.L -
dcate This was DONE in fact ana Danart.
not only the gold reserve of the Treasury Depar.-
ment, but a precedent as well. There Is no Ita-
son why Secretary Foster should not do the same
thing If he decides upon replenishng Ills s'ooH VI
gold hy the sale of bonds. 49, e,o,
10000. There will probably be no s:lpnIeno'
on Thursday. Between now and Maich, =, 'hltd
lore there remain only foTr na%s re,arv Oh Foster
realizes that the whole situation may chahEe
within less than twcnty-four hours, he rs py nY
means without hope that lie VIII pe apic 90 ~ go p
through without infringing upon the SlVT,oyT,
Oo0 reserve. o. selling bonds 10 replenlsh his
stock Of gold
There was rumor yesterday that the Admlh'S':a
ton hid decided 70 strengthen the soin reSeI'o' ;"
he Treasury ly the issue OF bonds II "Vl1 .ar
part some confterce In the closing dealings III s'''"
cot after the close the report came rom a,,t thc
70 the effect irat the Cabinet mad delieu
hte1 OF an islc Nevertheless some % .h, an
ppc in banking circles seemed to Dces' ie otnrnoon
Issue OF bonds was impending even after me t
Dispatches iron, In, National Capital The revival -,
interest n the question of BOND lsse ver, So,S n treasury
al IN tie gold serve. The New1 orh SUI SUI, osorvc
yc'enday nreparcd nclircs showing the goi rssnte
70 M -sJ0,. - { o.. whn. tec .'hu' uoii vi "
70 cM taken out for shipment on 80. 30 10 coo
Massss ..n, me ia reserve s left at s1oSi'oooV
THE SILVER CDNFERENCE KEfohl.
llEAprxr u,ep,eoy SENDS 1T TO THE
TxATE-No EFCONMFNDNIoNs NNp''
hask.ngion, Feb. 2I.-The President to-naS ~