Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-06-05
NO IMPROVE NJ ENT
Nor is Any Expected, in the Finan-
cial Situation.
NO CA BINET MEETING
Because Secretary Carlisle Did Not Return
This Morning-There May BE an Informal
Conference Tonight to Teach the silverites
Lesson-views Of Congressman.

Secretary Carlisle telegraphed this morning
that he had missed the steamer at Esston and
therefore could not arrive in Washington un-
til this evening. In his absence there
Was no cabinet meeting held, though il
ne arrives here in time there may be
an informal conference tonight between the
President and the members Of his cabinet, ex-
cept Secretary Lamont, who has gone to New
York and will go from there to Chicago There
IL no evidence Of improvement in
the financial situation and none is
expected. It is by no means GER
tain that any action on the part Of the admin
istration will follow thorough canvass of the
question in the cabinet. There seems to be a
difference of opinion among the doctors, but
1t Is evidently the policy Of the admin
istration to let the patient sink
as low as possible with safety, and the only
question seems to be how low it can sink with
out collapse. Both Mr.. Cleveland and Mr..
Carlisle are Of the opinion that the silverites
and the nat money people Of the south and west
can be taught wisdom only through
the stern tutorage of adversely, and they
do not care to interfere to make the
lesson less impressive until it has had
some effect. They are trying to keep
between the farmer and Wall street, ad-
herring strictly to the letter OF the law
and permitting the consequences to demon
slrate the quality OF the law. man who IL in
position to know something about the policies
OF the administration said to STAR reporter to-
day that his understanding was that Mr. Carlisle
would 90 on using the gold reserve until
it was practically all gone or something was
done by Congress 70 relieve the drain. While
the law requires that the 800, ,000. 900 reserve
fund shall be replenished when depleted.
there is nothing to make it obligatory on
the Secretary to issue bonds at any par-
tlcuiar time during the course Of the depletion
He can issue the bonds to make up the present
difference between eight odd millions and one
hundred millions. or he can let things run on
till the reserve is reduced to forty or fifty mil
lions and then issue bonds to make up the diff
ference.
The impression is today that an issue of
bonds would be delayed long as possible. and il
the administration decides to do anything now
1t Will be only because the strain is regarded as
great enough to make further delay dangerous
VIEWS OF coNeREssMEN.
congressman are discussing the subject Of an
extra session at a date earlier than 1t is
now expected that Congress will be
asked to assemble, but the general opinion
seems to be that little would be accom- pished by
such action at this time. They admit
that the financial situation can be relieved
by the repeal of the Sherman silver law and
that probably the financial fight will come on
this very question. While the cause Of free
silver is losing strength under the opera
tions which are exhausting all the gold
in the treasury, still they feel that free silver
has a sufficient following to defeat the repeal
at this time, but with the present influences
at work the "repealites" are gaining
more recruits, and by the fall the rela-
tive strength Of the forces may be changed
In their favor. All admit that the final sou-
tion of the financial difficulty must be accom-
plHhed BY the next Congress. Regarding the
bond issue prominent democratic Senator |
said that If the republican administration could
not afford to issue bonds when their Secretary !
do 80 the democrats could surely not
1t has been suggested that as the national |
banks are not allowed to reduce their reserve |
below the 70 per cent mark the treasury
above all. should not do So II this suggestion |
should be followed the government would
be obliged to discontinue the use |
Of the gold when it becomes reduced to
SS7 900 900, which is Is per cent Of sS4S 600 OOO
the total circulation. This pointer the officials
OF the Treasury Department look upon
as another plan of Wall street to
force an issue of bonds. and answer
1t by saying that the credit Of the government
is unlimited and that it has no depositors for
whom the reserve should be held. With the
national banks 1t is a matter of law not |
to allow their reserve to fall below
25 per cent, but for the government
to adopt such plan would simply be ques-
ton of ethics-and morals. In fact the Con-
gressmen with whom STAR reporter talked
indicated by their manner that the present
financial condition was due to the selfish inter-
ests OF Wall street and that the administration
would not pursue course which would benefit
them if any other plan could be found.
THE LAST MEANS SUGGESTED.
The last means which have been under dis
cussion by the treasury officials to in
crease the gold is to purchase gold by
the issue OF new legal tender notes. Thus
lar this plan has only been thought Of
md Secretary Carlisle has not authorized the
statement that he believes that he has the
to follow this method. There is a
Of opinion among officials as
10 whether section 300 allows this.
The section is follows: The Secre-
ary Of the Treasury of the United States
nay purchase coin with any Of the bonds or
notes of the United States, authorized bv law,
It such rates and upon such terms as he may
leem most advantageous to the public in