The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-03-10
The Condition Of the Treasury More
Favorable Than for Some
Days
Example OF Denver Bankers In
Offering Gold Followed by
Other Cities.
An Opinion by Solicitor General AIdrioh
That tho Secretary May Use the
Gold Reserve.

WASHINGTON, March 9--Secrstnry Car
lisle this morning authorized the statement
that ne would exercise all power and dis
cretion 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 maintaining
the gold reserve intact. ns to issuing bonds,
or ns to paying United States notes or
United States treasury notes in silver when
the free gold is exhausted. etc. Tho exam-
pie Of the Denver banks in Offering the
treasury S1,00O00o in gold has been fol-
lowed by Chicago bankers. who to-day Of
fered 100000. 1t ia believed the bankers
OF other cities will do likewise.
Tho treasury to-day received gold at sew
eral points. in New York gain was made
OF 100000, while at New Orleans il re-
oelYed 100000 in exchange for like amount
OF silver certificates. No intimation has
yet been received that any gold will be OK.
ported Saturday from New York, and at
the present rate Of exchange it ia not
thought any will be taken out OF the coun-
try. The treasury has more than S3 OOO, COO
In free gold. and In the usual condition of
trade this is likely to be increased rather
than diminished. 1t was quite plainly in
timated in the treasury department. to-day
that as between the issue Of bonds and the
use OF portion of the 800, 900. 900 gold re-
serve, II necessary to maintain the parity
OF gold and silver, Secretary Carlisle will
resort to the latter plan. but he does nos
anticipate any necessity will arise to do so.
Some time ago. when the question OF the
power of the secretary of the treaanrv to
use any part of the 100000. 600 gold re-
serve was under consideration, Solicitor
General Aldrich was instructed by the at
torney-general to look up the matter.
Aldrioh's opinion, in brief, is: First: The
secretary of the treasury has continuing
power to issue bonds to redeem the legal
tender OF 1862 and 1862 and reissusd under
the act OF May 81, 1878, but l am OF the
opinion that ii is not all necessary. Sec
ond: There is no requirement that the
redemption of legal tender be made in gold.
AS to tho policy OK using silver, / am NOS
prepared to urge this action. II might
cause panic, but ii could undoubtedly be
done. Third: The secretary of the treas
ury has no power to issue bonds redeema-
Bile in either gold or silver. The law stipu-
lates that they shall be redeemed in coin.
which means either gold or silver now. aud
did so mean at the time Of the passage Of
the law.
was not delivered, owing to the fact that
occasion did not demand it. Aldrich says:
The belief that there ia no positive pro-
vision OF law requiring that the $100,000,-
0OO reserve shall be kept is, in my opinion,
correct. It is also true that under the law,
as l understand it, all legal tender notes
may be redeemed in coin. This was the
case at the period fixed for the resumption
of specie payment, o-wit: Jan. l, 1879,
under the law Of 1875"