New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-12
THE TREASURY AND GOLD.
SECRETARY CHARLES FOSTERS VIEWS.
He HAS MADE 40 ARRANGEMENTS FOR ISSUING
BONDS, But WOULD DO 50 II he
THOUGHT THE SITUATION
REQUIRED 1T.

REQUIRED 1T.
Charles Foster Secretary of the Treasury, is in
the city, and he says that the report that he
had made arrangements to Issue SjO0O0,000 in
bond, 10 increase the gold reserve fund in the
United State, Treasury is absolutely untrue. but
he admits that such bonds will be issued if tine
situation should demand il. In other words, the
whole power of the Treasury would he used, he
said, to protect the reserve fund and the credit
of the Government. As he is now on the eve of
retiring from tho Treasury Department he hoped,
he said that it would not b. necessary for him
TO make such bold stroke as TO Issue bonds for
gold, and if the people of thc country would not
get frightened and cause the alarm themselves
there would be occasion for such il step. In
the opinion Of the Secretary, many more millions
Of gold cold leave the country without causing
any i'll effects.
Although the Secretary says that he does not
regard the situation "a grave one. he VIII 10
day hold conferences with the Sub-1reasnry oi-
Gals: with Henry W. Cannon, president of the
Chase National Bank, who is delegat" to the
Monetary Conference at Brussels, and with the
presidents Of other National banks. Til" situa-
ton will be looked at from all Sides and it is
undcrst ood that if the occasion requires 1t bonds
for gold will be issued at an early date on the
most satisfactory terms that can hc made.
Secretary Foster arrived at the Fifth Avenue
Hotel last evening, and when seen by il reporter
for The Tribune he discussed the SITUATION IN
detail. ana pointed ont the financial condition OF
things in pll parts % the world In reply TO an
inquiry as TO his intentions in regard to issuing
bonds, h. said
mo arran ngonicnts 20 n.Eotlat" londS have b'cn
made and / have not decided 20 issue any but
! | will say that, il necessary, | will us" Ill" wh"i'
power of the United States Treasury to MAINTAIN
gold paymcuts ] have the right TO issh" pohus
payabe in rcin and the step Will be taken IL
J the situation in the near fGtnrc demands II.
DO yon aarcc with the report OF the Ju'lciaiS
committee niadc to the House last summer IN
regard to th' use Of In" -old r~rNc '""' "
SlOO 600 900 ," liz, asked
81 differ from Tie committee in som" rcSp'c'S'
Tb,, rcport Wa on the question Of the power
~ tb. Secretary OF the Treasury TO use any p'''
% ,hc res.ryr The total amount OF the pro ee'N
., the bonds sold fos resumption purposes !" INC
T,,.,.urv ON January, 1879, was H"=,ooo'o''
Th Tpitel State, notes redeemed from tha' iu"''
nm to .Iune l. lsp2 as shown III that rrPo''' WI.
81. 9sH950 All of TIA" gold IN th' 'r'","''
aho'. ,,o s;3 ooo. 900 left of the resumption
tnd j. available for the general puiPOsN VI w"
Government Ill bonds
lie j. entirely within my power TO sell oo"'9
,o ncrcas. the redemption fund 10 ''' a'"''' ~.
500 600. 600 and to keep 1t at tha' Po'''
,L. orccnIacks are outstanding lH' Co'""' =.
Wv. ..1 - rather the Republican members oil II
did that the power to sell po'"' ''',i t.,,
a,I +. limited onLy by the amount oi Ohieu
St,,c, notes outstanding. less the P'o'e y,
h,nd. sold for redemption purposes ana app''o
-, hand | entirely agree with that coii-
o,,,;or bopc there will not be any h''' oi
i..nirc bonds bccau-,, ! am OH th" eve VI IT,
,;,,., from, the Treasury Department, ana my sue
.,- u,ioht not like the terms on when i~'u'
,,1. Tho banks have with patriotic purpose
oncr.d 70 give gold for grccnback', ana We Will
lc relieved In that way , =.
Whom th. Secretary was asked II the l"i'"l' ~
rcncL th, law requiring silver buHloh p"''"'
vnuld have any effect in driving e"in a'foSS '''
uotcr hc said: The failure TO repeal ti'a' '''''-
,r. will have. no effect whatever on the 2o'd 'N-
,ort. think, however, that the Ia" S'o''u ~
c,e,lcd lccan.c the banks ana o''ie'
i,h ,.bor, thc Treasury has 10 deal tax" tha'
.;.,, ~ the question, and il il also H"'s''o"
-, nublic confidence Only small percentage o'
hu.ino>. transactions is made Ill coin i'' Pt'
por,ion Of coin u~cd in the TRANSACTIONS VI '''
rr.a,. -, r,,rcc in 1866 was only IL per cent
bank note. and other Instruments oi cre''
,1,' o,Lor a. 10 pcr cent The Bank of EnEIahi
| a
ncouartcr of one per cent in coin - l. per ''',
j.; cb.c,s and drafts and l. , per cent III oahN
n,,s Tho balances Of the New-lork '"arih"
uouso maid in coin in tho last thirty mine years
AVERAGED lcss than ) per cent
| A., -, omir,t;on OF the business OF In" Natloha
h,,ts on a Given day last September sho"e'
,lrt loss than 10 per cent of tn" TRANSACTIONS "'
,bo, dav were represented by cash Forms o'
credit do the bulk of Tn" work ~ long aS pun
lie confidence is not affected. the "AlS'lhG supply
-, ooId is more than adequate. When pane
nrriros ,b.rc il not enough silver added to the
Id IN take the place Of the forms OF credit III
ordinary use. But the almost limitl'S' resources
or tho United States stand back ol IS cIcul
| and there l. cause for alarm
The United States Treasury has always beer
r - q nositior 70 redeem its promises. and | hope
i, always will be The policy of every Secretary
q of .bc Treasury has been to maintain the gol'
roscrvc and to keep il on a par with our pap''
circulation The Treasury is not bankrupt ah'
ia. difficulty is not that wH are running o'hihu
Tho situation is not anything similar 10 that ah'
Int for the recent unfortunate change ol analr
the revenues would be- sufficient TO MAINTAIN th'
credit of the Government for IA long time to come
. "In nv lest report recommended the increas
Of the geld reserve. have not changed III.
, ooinion since that time, and recent event" max
m. all the more strongly ii favor OF an increase
The cold Iescrve at this time ought 10 be Si 30
b. 600. coo. Nv reasons are clear ones since IL I'D
cen declared that the established policy ol IN
United States is TO be TO maintain two metals go
5 and silver. on a parity with each Other II
. ,bviou, that tie larg" addition to our "ircuia'lo
|. und,r the silver law has increased the po'''ol
4 charge upon our gold reserve, and. therefore,
4 Iaroer reserve icnd should be maintained
y The silver law, However, has rot canseu III
= gold exportatons Other causes have coh'roie
| the shipments of geld Austria l. aoc"'i'"''' III
=, 90 600 900 In geld fer redemption purposes an
n,vipo Ii pcr cent | am told, for gold til
D minute it is put on shipbgard in New-lorA. Nu'