Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1893-04-29
THE TREASURY.

DOnuS SIMPLY cOnnfInS the DelleI III
financial circles here of the govern
ment's intentions to issue bonds. The
assistance from banks in driblets has
been regarded as only temporary post
ponements and makeshifts, and as fail
ing not only to get at the cause of the
gold outgo. but to even keep pace with
it. Secretary Carlisle declined to talk
about the Jordan negotiations. IL is
understood that he knows about
them and several think that Jor-
dams act was entirely his own.
But the majority think that
the president knew of his every move,
as it is not considered likely that Jor-
dan would make such a proposition to
bankers ut such critical time on his
own responsibility. 1t is known, how
ever, that no communication has been
received ut the treasury department.
But little doubt of the truth of the
report in the main is expressed. Yet it
seems to old financiers here absurd that
Jordan should have suggested that the
government should have the option of
calling the bonds in one year, or ut any
time after one year when its reserve is
in better shape. Such II course would
be purely illegal. The law under which
the secretary can issue bonds is rs fol-
lows:
TO enable the secretary OF treasury
to prepare and provide for the redemp-
ton he is authorized to issue. sell or
dispose mt not less than par in coin.
either of the descriptions of bonds of
the United States described in the act
of congress approved July u. 1870. en-
titled. An act authorizing the refund
ing of the national debt. with like
qualities. provisions and exemptions to
the extent necessary to carry this act
into full effect and to use the proceeds
thereof for the purpose aforesaid"
The issues of the -. and have been
exhausted and opinions differ as to the
legality of issuing more of them. But
as 81. O00. 900, 900 of the As were author
lied and only s74O.OOO.OO0 have been
issued. there is no doubt of the secre-
tary's authority to 1suc. should he de-
sire. $3.50, 900, 900 of 4 per cents. But
they would not expire before 1907, and
to ask that call loan be accepted in
dicates. one prominent banker says.
that the proposition must have come
from an amateur and not from an eX-
perienced banker.
Offers of gold continue to come in.
but the shipments leave in the treasury
,,1,A,,.. tha xx-hnp
all accepted offers are counted in. The
financial situation was discussed ut
length ut the cabinet meeting yester-
day. At the conclusion it TRANSFERRED
that on Saturday last the New York
bankers made proposition to Secretary
Carlisle who rejected it and made
counter proposition. Yesterday morn
ing letter was received stating that
they rejected his proposition and made
one in return. The secretary has re-
jected it. 1t is expected an agreement
will be reached soon. A fact not gen.
orally known in connection with the
greenbacli gold reserve is brought out
by Mr. Hall. of the Third Minnesota
district.
''As u matter of fact" says Mr.. Hall,
there is not an actual 300. 900. 600 re-
serve fund in the treasury. but only
about S54. OOO, 900. The redemption law
of 1875 authorized the sale of bonds for
the purpose of redeeming greenbacks.
Under that law the government sold
S96, 100000 of bonds. 1T has used,
in round numbers. si2.000,0 900 of
these funds in redeeming green
backs. leaving in the treasury
S54. 900, 900 of the proceeds of the sale
of these bonds, which, by law, is speci-
fically set aside for the purpose OF re-
deeming greenbacks only. 1t seems to
me that the government has the I'M
questioned right to use all of the slG,-
600, 900, in round numbers, surplus over
the redemption fund set aside for the
bonds for the purpose of redeeming
the treasury notes issued for the pur-
chase of silver, but | do not see how
the s54, O00.0 900 can be applied to that
purpose. The redemption act of
1875 still leaves with the secretary OF
the treasury the power to issue bonds
for the purpose of redeeming green
backs, but neither the law nor any
other of which | am cognizant gives
him any authority to issue bonds for
the purpose of redeeming the treasury
notes. i think this is the meaning of Mr..
Cleveland's and Mr.. Carlisle's messages,
and this is their position. as l gather
from their statements. 1t is not likely
that this reserve will be reduced to the
s54. 900, 600 point before the next meet
ing of congress, though l do not think
there is any need of an extra session on
this point. While / personally favor
the repeal of the Sherman silver act ]
do not believe that congress in its
present mood will repeal it."
HIT HIM AGAIN.