The morning call., 1893-03-10
PLENTY OF GOLD.
Bankers Help Secretary
Carlisle.
WILL PRESERVE A PARITY.
All NeedfuI Power to Be Exercised to
Uphold the Credit of the
Government.
WILL PRESERVE A PARITY.
Special to THE MoRSISe CALL.

WASHINGTON, March 9.-Secretary Car
Isle this morning authorized the statement
that he would exercise all the power and
discretion invested in him to uphold the
credit of the Government and maintain the
parity Of gold and silver. This statement
was made to brush away the rumors about
what he contemplated doing, as to main
tanning the gold reserve intact, as 10 Issuing
bonds or as to paying United States notes
or United States treasury notes in silver
when the free gold was exhausted. The
example of the Denver banks In offering
the treasury S1,0O0,00O in gold has been
followed by Chicago bankers. who to-day
offered half a million. II Is believed the
bankers of other cities will do likewise.
In fact the treasury to-day received gold
at several points. In New York gain was
made of 100000. while In New Orleans it
received $4,000 in exchange for a like
amount of silver certificates. No lin timation
has yet been received that any gold will be
exported on Saturday from New York, and
at the present rate of exchange it is not
thought that any will be taken out of the
country. The treasury now has more than
S3,00O,O00 of free gold and. in the usual con-
dtiOn of trade, this is likely to be Increased
rather than diminished. 1t was quite
plainly intimated in the Treasury Depart
ment to-day that, as between the issue OF
bonds and the use of II portion of the $780,
100000 gold reserve if necessary to maintain
the parity of gold and silver, Secretary Car
Isle will resort to the latter plan, but he
does not anticipate that a necessity will
arise to do so.
Some time ago, when the question OF the
power Of the Secretary of the Treasury to
use any part OF the 500, 600 gold reserve
was under consideration. Solicitor General
Adrich was instructed by the Attorney
General to look up the matter. Aldrlch's
opinion in briefs
FtTst-The Secretary OF the Treasury has
continuing power to issue bonds to redeem
the legal tender Of 1862 and 1868, and reissue
under acts Of May, 1872 and 1873, but I am
of the opinion it is not at all necessary.
Second-Ihere Is no requirement for the
redemption of legal tender to be made in
gold As to the policy of using silver, am
not prepared to urge this action. 1t might
cause panic, but it could undoubtedly be
done.
Third-The Secretary of the Treasury has
no power to issue bonds redeemable in
either gold or silver The law stipulates
they shall be redeemed In coin. which means
either geld or silver now, and did so mean
at the time of the passage Of the law
This opinion, while asked and prepared,
was not delivered, owing to the fact that
the occasion did not demand 1t.
Aldrich says: THE belief that there is
no positive provision OF law requiring that
the 500, 0o,0G0 reserve shall be kept is, in
my opinion. correct 1t is also true. under
the law. as l understand it, that all legal
tender notes may be redeemed in coin.
This was the case at the period fixed for the
resumption of specie payments, to wit, Jan
uary l, 1878, under the law of 1875"
CHICAGO, March 9.-The report of the
offer Of half a million dollars In gold to the
Federal treasury from Chicago was proba-
bly, based on the fact that the First Ma
tional Bank was short of So and S1Ocurreney.
and teegraphed the treasury that it would
exchange S5oO.00O in gold for bills of the
stated denominations