Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1893-04-22
BELOW THE LIMIT.
a Break i'm the Treasury Gold
Reserve.
ONLY se7,soo,ooo NOW ON HAND.

| Withdrawals to Ship to Europe Bring
| About the Long Expected Situation
Two Points of the Administration Policy
| Indicated and one Is not What Was An
sicipatsd The Secretary's Statement
Puzziing Wall Street Men.
WASHINGTON, April 22-Large amounts
| of gold taken for export have at last alb
| sorbed all the treasury's free gold and
| forced it to take another step in the line
of policy to be pursued. The substantial
fact in the development is that the
800, 000, 600 gold reserve has been invaded
and part of this gold accumulation used
to meet the demands caused by the exports
OF the precious metal. The reserve now
stands in round figures at S97. 30O, 600. hav-
ing been gone into to the extent of s., 700
900 to meet the gold exports Two other
points in the policy are shown-that there
will be no bond issue as soon as the free
gold is exhausted and that gold payments
will not be stopped on silver notes a re-
suit of the gold reserve having to be en-
encroached upon.
Important Question Coming.
1t is said that the president was opposed
to stopping redemption of silver notes with
gold. The treasury policy is thus known
for the present, but the future course to be
adopted will have to depend crcum-
stances. L ne circumstances IDaU VIII nave
most weight in shaping the future policy
will be gold exports and repleuishment Of
the reserve. The department has already
received some AID, which prevented its
drain on the reserve reaching a larger
amount than it did. It's aim viii be to
build the reserve up again to 500. OOO,0O.
If, however, the exports continue to steadi
ly reduce the size of the reserve there will
be then forced on the consideration of the
Tbp ClJpatinzp Khpf her IT will
permit this state of things to continue or
Will increase its pile of gold by issuing
bonds.
When Bond Issue VIII BE Made.
That point can be reached in the reduc-
ton of the reserve where bond issue will
be made there is no room for doubt. but
how much the reserve must first be re-
duced it is impossible to learn \ state
ment prepared at the treasury department
shows that the receipts from customs at
the port of New York for the first twenty
days of April aggregated s. ,092, 523, against
S5,91l ,42a during the first twenty days of
April, 1892. OF the amount paid thus far
in April Of per cent. was N gold coin, per
cent in gold certificates, POI per cent. in
silver certificates. &c per cent. in United
States notes, and 2S.2 per cent. in treasury
notes.
4 Bond Issue Inevitable.
1t is the opinion of some of the most con-
the action of the government in continuing
to pay the notes OF 1890 in god must inev-
itably lead in the near future to bond
issue, the rate of exchange, which is
now 400 to 1905, is the highest that it has
been for eight years and would of itself
We're there 10 eXtraneous causes-lead to n
large export of gold simply for commercial
purposes. 1t is calculated that the gold
shippers at the present rate of exchange
make five cents on every twenty dollars of
gold exported and with the balance of trade
largely against and likely to continue
so, the rate of exchange will also probably
remain high and gold shipments continue
for some time to come or until the balance
of trade changes in our favor.
Talked Over ut Cabinet Meeting.
1t is understood that the principal sub !
ject of discussion at the cabinet meeting !
was the treasury situation. The meeting |
was the longest held by this cabinet, last |
ing 2it hours. The fact that the reserve |
had been invaded was the subject of grave |
but what was the conclusion, |
or whether there was a conclusion, is a |
dead secret.