Pawtucket tribune. (Pawtucket, R.I.) 1890-189?, 1893-04-17
NO NEED 0E ALARM.
Uncle Sam Can Get Gold
Whenever Needed.
IMPROVEMENT IN FINANCES
Which May Make It Unnecessary to
Issue Bonds or Use the Reserve.


though the secretary of the treasury would
be confronted this week with the necessity
of demonstrating what will be his fnan-
cial policy. 1t is expected by treasury OH
sials that there will be gold shipments
1uring the week sufficient to wipe out
the free gold balance in the treasury
aud force action to be taken to maintain
the parity of all issues Of currency of the
United States The secre tary, when free
gold is exhausted, unless he can obtain
gold from the banks to tide over tho
emergency, must determine whether he
will use the gold reserve of 100000 900
held for the redemption Of outstandi ng
grenbacks or will take measures by bond
Issue to replenish the stock Of gold.
The fact that there is not the slightest
doubt of our ability to get gold by means
OF a bond whenever desired Is pointed to
rs an evidence of the needlessness of alarm
over the situation. The secretary main
tains almost absolute silence as to his pur-
pose and will not state i'm advance what he
purposes to do. The issue of gold certifi-
Gates was stopped Saturday, except that
persons who deposit gold will continue
To BE Paid In Gold Certificates,
but no indication of this intention was
given until after the order was issued, and
1t was not announced until the close Of
business at the exchanges.
IL is said that the secretary Is inclined to
use the gold reserve II necessary, rather
than to issue bonds: but the probabilities
are that he is not committed in his own
mind irrevocably and will not reach an abb
solute decision until the time for action
has come. Meanwhile all the preparations
Tor bond issue have been made In order
that no delay may occur in securing the
gold should it be thought best to issue
bonds. Only 5000, 900 Of these bonds have
been prepared. One issue of bonds, how
ever, would almost necessarily have to be
followed by another, as financiers in New
York and elsewhere would doubtless force
larger issues because of the profits to arise
therefrom II the treasury should once
enter on the bond issuing policy in small
way.
There is a feeling that the matter may
be further postponed by very small gold
shipments this week, large shipments
being deferred for fear Of their influence In
disturbing business The present policy
of the treasury dedartment is one of put
ting off definite action TO the very utmost
IN hopes that conditions which have shown
some slight indications Of betterment may
improve sufficiently to make 1t unneces-
sary rather to issue bonds or to use the
gold reserve.
Tho Trade Balance
II is thought will shortly become moro
favorable to U.s. Increased cotton and
grain exports are looked upon as likely in
the next few months. The appointment
OF Mr.. Jordan as assistant treasurer, II is
said, was made for the especial reason that
It was thought he could aid materially, by
reason of his experience and relations with
bankers, in increasing our gold supply.
The condition OF the treasury, aside from
the gold situation, is gradually improving,
owing to the fact that customs receipts
are increasing beyond expectations, while
the expenditures are being kept as low as
possible.
Diverse views prevail here as to what
shall be done in case conditions at last
compel a resort either to bond issue or
TO the use Of the gold reserve. Represent
alive Springer, chairman of the ways and
means committee, when asked what
should be DONE said he did not know what
action Mr.. Carlisle would take, but that
he himself was decidedly in favor of max
ing use Of the gold reserve.
THAT is exactly what it was put there
for" said he what Is a gold reserve
for II 1t is not something that is to be
availed of when the occasion for using it
arisesP think there is great deal of un-
necessary alarm about the dangers that
are to come from touching the gold re-
serve We are not a bankrupt nation. II
that were the case there would be reason
for fear. would use the gold reserve and
keep on using it until 1t got down to s25,-
000 900 before / would issue bonds and
would not issue them then unless it looked
as if that t25, 100000
Might He Wiped Out.
'This country can raise money and secure
gold whenever 1t wants to This condition
of affairs is natural. The balance of trade
Is heavily against us and we have to pay in
gold or securities, and the securities have
been coming the other way into and not
out OF this country. We have paid our
security debts as well as our trade
balances"
Some other persons who were talked to
said that they regarded the reserve as a
pledge, that It would be held there to meet
payments Of greenbacks and that therefore
II should be kept intact. The general
opinion was that after the treasury had
actually reached the point where there
was no gold that there would not be nearly
- great shock az has been 30 freely pre-
dicted.