The advocate and Topeka tribune., 1893-04-26
RELIABILITY OF WHAT Is PUB
LISHRD As NEWS,

day previous Senator Carlisle an
nounced his determination to suspend
the redemption of treasury notes of
1890 in gold, and that this policy
would be sustained by the admins
tration. As the dispatch contains
some matter of interest bearing upon
questions to which we have already
given considerable space, we quote
from it the following:
The cabinet meeting yesterday was devoted,
to some extent, to consideration OF the tinan-
cial situation, and 1t Is stated that the secre-
tary of the treasury will be upheld In his
advice to stop for the present the payment in
gold of the treasury notes. Under the silver
act of 1890 the government is compelled to
purchase each month 100000 ounces of silver,
and at the same time issue notes for the bull
lion received. There Is at present outstanding
of these notes Sl3O,OOO,OOO, and they are being
constantly redeemed in gold at the New York
sub.treasury. The redemption In gold of
these notes has been matter of accommOda-
tlon on the part of the treasury department.
as the law gives the secretary of the treasury
the discretion as to whether they will be re-
deemed in gold or silver. Now that the gold
balance has been reduced, the secretary of the
treasury is considering the advisability of
using his discretion and paying these notes in
silver. The second section of the silver act
reads as follows:
SEC. 2. That the treasury notes issued in ae-
cOrdance with the provisions of this act shall
be redesmable on demand In coin at the treas
ury of the United States or at the othce OF any
assistant treasurer of the United States, and
when so redeemed may be reissued, but no
greater or less amount of such notes shall be
outstanding at any time than the cost OF silver
bullion, and the standard silver dollars coined
therefrom, then held in the treasury, pur-
chased by such notes, and such treasury notes
shall be legal tender in payment OF all debts,
public and private, except where otherwise
expressly stipulated In the contract, and shall
be receivable for customs, taxes and all public
dues, and when so received may be reissued;
and such notes, when held by any. national
banking association, may be counted as part
of It's lawful reserve; that upon demand or
the holder of any treasury notes herein pro-
Vided for the secretary of the treasury shall,
under such regulations as he may prescribe,
redeem such notes, In gold or silver coin at
his discretion, 1t being the established policy
of the United States to maintain the two
metals on parity with each other upon the
present legal ratio, or such ratio as may be
provided by law
If the secretary determines to take advan-
tage of the discretion given him by law, 1t will
be more difficult matter for New York bro
kers to obtain the gold for shipment, as the
stoppage of the payment on the gold certih-
Gates and the treasury notes would leave them
less upon which gold could be obtained. The
sub-treasury in New York at the end of each
month makes report to the department here,
showing the amount of treasury notes that
have been redeemed in gold. In the reports of
the ways and means committee on the con-
dItion of the treasury up to January 81, 1893, a
table Is given which shows that the sub-treas
ury has redeemed the following amounts of
treasury notes in gold each month since June,
1o92:
July, s., ,1OS, 800; August, S5,O19,OOO; Septem-
ber, 81, ,759 600; October, 1924 200; November,
s22OOOO; December, S4366, 300, and January
1893, a. ,9OO or a total of S21, l36SOO of treas
ury notes redeemed in gold for the past seven
months mentioned. For February and March
it is said the redemption has averaged "a 4,0OO,-
900 each MONTH From this it will be seen that
a large amount of gold can be saved to the
government and at the same time the inability
of brokers to obtain gold for these notes will
cut of one of their most ample means Of OBJ
tanning it, as it Is said that this class of
notes has been largely presented by New York
bankers in exchange for gold.
1t is said that the continued redemption of
these notes in gold is bound to result In the
driving out of all the gold, For 1t Is apparent
that the condition was such that gold was
being paid out through the medium of the
treasury notes for the silver bullion sold.
This dispatch is followed by an
other on the Doth, which purports to