The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-16
HARRISON AND THE GOLD
TIE PRECEDENT AGAINST AN IS
SUE OF BONDS.

Nevertheless He May Be Forced to
Authorize One Before He Goes Out
of Of1ce-Secretary Fosters Idees
on the Subject Far Different From
Those OF the President.
WASHINGTON. Feb 15.-President Harri-
son may have 20 authorize an issue Of new
bonds before ne goes out of Office in spite
of his unwillinRness to do so. He appears
to have thought yesterday that he had dis
posed Of the matter by announcing to the
cabinet that he did not propose to issue any
new bonds, although the cabinet was not,
as has been stated, unanimously In agree
ment with him. On the contrary, Secretary
Foster, fresh from bis talks with the bankers
ia New York, and one or two other mem
bers Of the cabinet, are understood to
have differed with him, not, of course,
as to the desirability of issuing bonds, for
they are all agreed that it would be hu-
initiating thing TO have to do, but as to the
necessity for it, Secretary Foster believing
that the banks might not be willing to give
the government the benefit OF their gold
reserves indefinitely from now until
March 4,
To-day Secretary Foster and his personal
friend, Henry w. Cannon, the New York
banker, appointed by President Harrison
one of the delegates to the monetary con.
ference, had another talk with
President Harrison on the subject, in
which they repeated to the President the
reports from New York to-day, to the effect
that some of the New York bankers who
had furnished gold for legal tender notes
were already preparing to withdraw what
they have advanced, returning the legal
tender notes to the sub-treasury and de-
manding their gold in exchange. They
also pointed out, it Is stated, that this indi-
Gated the position Of the New York banks
more strikingly than their statements to
Secretary Foster that they believed bonds
should be issued, and that however selfish
they might be. and however large part
any of them may have had in bring
ing about the present state of
affairs, either by exporting or boarding
gold, the fact must be faced that il they
generally pursued such a course bonds must
be issued, or dangerous inroads must be
made made on the 81, 900, 900, 900 reserve.
HARRIsoN's MISTAKE.
Secretary Foster, it is said, was able to
remind the President. by way of illustra-
ton, Of what Secretary Foster considers a
mistake which the President made in 1891,
when syndicate of bankers offered to take
the entire $50 100000 of the Al per cent
bonds then outstanding il they
were refunded at 2 per cent
The Secretary of the Treasury
wanted to accept the offer, but the Presi-
dent, who was not disposed to accept it, de-
lsyed action SO long that the syndicate,
when the secretary was finally allowed to
accept it, said that the acceptance came too
late and refused TO make the offer good.
Accordingly the government was obliged
to dispose Of them as best it could to casual
takers, the result being that $25, ,O0O, 900
were presented for redemption in gold, re-
ducing the treasury balance and the gold
reserve to the point from which they have
never recovered, the present difficulties OF
the treasury being directly attributable, in
Secretary Fosters opinion, to the conse-
quenoes Of that blunder. Secretary Fos-
terra argument to the President to-day was
that II the banks were, as they said, unwill-
ing to give gold for legal tenders, but were
willing to take bonds at 3 per cent. it was
better to give them bonds at that rate than
to walt for possible panic when gold goes
to high premium aud the present offer of
the banks will be promptly withdrawn.
HARRISON STUBBORN.
The Presidents stubbornness came out as
usual In his replies, which it is understood
were to the effect that he was unwilling to
have the bonds issued unless there was such
a necessity as he did not think appeared.
He added. 1t Is stated. that he did not be-
lieve an issue of bonds would have the effect
predicted by the bankers, inasmuch as it
would only temporarily maintain the gold
reserve, the logical result being the issue of
more bonds indefinitely. he added that it
seemed comparatively useless for him to
attempt to prop up the public credit by is
suing bonds when he was 80 soon going out
Of Office. 1t would not be, as in the
case of an issue by the next administration,
a pledge OF a four years policy and so pow
erful means Of promoting confidence in the
money markes. He thought the banks
would come to see that they had as much
interest in retaining the gold reserve in the
treasury as the Secretary of the Treasury
At all events he adhered TO his opi MON and
went off at 3:15 O'Clock with ex- Senator
Sewall TO shoot bengies until Monday. leav-
log Secretary Foster TO make the best terms
he could with the bankers,