New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-15
AGAINST A BOND ISSUE.
THE ADMINISTRATION WILL ATTEMPT ONE
ONLY AS LAST RESORT.
SECRETARY FOSTER WOULD PREFER AID FROM
THE NEw-YORK BANKS-MR SHERMAN'S
3 PER CENT BOND AMENDMENT
REPORTED IN THE

1RY TELEGRAPH TO TIE TRIPrNE.l

REPORTED IN THE
SENATE
1BY TELEGRAPH TO THE TRrBrSE.1
Washington, Feb. 14-Sccrctary Foster has re-
turned from his visit to Ncw-lork, where he
listened with patience to the views expressed by
the representatives Of financial interests who
called on him, without being prepared to say
that he is ready now TO pursue certain line Of
policy follow the counsels freely and gcner
ousy bestowed upon him. II is no secret that the
most rational plan in fact the only oe suggested by
the bankers whom he saw, to replcnsh the depleted
stock of gold in the vaults of the Treasury, was
one looking to the issue of $4,000 900 in bonds
Without entering into the question of the power
of the Secretary Of the Treasury to is,ue bonds,
there is the best authority for stating that the
present Administration will not, except under
circumstances greatly more aggravatng than those
existing now, attempt to cxtricate itself in this
manner from the difficulties which are now said
to he bcsctting the Treasury Of the United States
There is now about -, 900 in gold in the
possession of the Treasury, without of course
touching the 81 90, 900 900 reserve. IL Is small
amount it, is true as compared with the amount
Of gold held only a few weeks ago. but it is no
smaller than the amount at the disposal of the
Secretary in July last. No evil results were felt
then from the smallncSs of tho gold balance, and
none il is hoped, will result now, though the
conditions. it is realized. are not altogether now
what they were then. With the balance of trade
against the United States duo. in the main, to
three causns-forcign travel, frcghts and under
valuation-thc country finds itself now heaTy
debtor while last year it had the balance Of trade
in its favor and the creditor of nearly all
the rest OF the world
In other words. it was known last July that
the limit of the export Of gold had been reached
and that thereafter it would begin 70 flow back
into the United States In tho present instance
there s no telling Secretary Foster thinks, when
the export of gold VIII cease; and he considers
this the most serious phase o; the situation
Effective as the issue of S50,000000 IN bonds
mieht be fer the time being. it would do no
lasting good, and Secretary Foster therefore, very
naturally asks what tile Treasury would he cN-
pec,ed 10 DO after the effects OF the $50,0OO.OoO
issue had worn of. The Treasury certainly
could not go on indefinitely issuing bonds 10 re-
plcnish its gold reserve. As an ALTERNATIVE he
would prefer borrowing gold again from the
hanks. which, in Ncw-lorlI alone, he is informed
hold $4,000. 900. This lie may do again 10 re-
flemish the Treasury vaults and 1t Is device
which he think. will tide over the present di-
Y.
in. He does not think i. would be either wise
., cour,con, 10 coz NIT tho Government in a1van'e
10 a policy which tie oppo-i'ion. in three w"e'''
10 h. an opposition no longer, may consider en-
bsrrsssins and which IL nsy imagine itself TO be
forced TO reverse.
He anticipates little or ne difficulty In obtain
inc further contributions OF gold from the
banks. for the reason that their interests are IN
Tho nnin. end must always continue 10 &c lden'-
cal with those Of the Treasury. lie SPEAKS IN
tho highest terms Of tho diaintercsted action OF
the New-York banks last week. and horoushy
,or,ed with them IN believing that the only
financial safety for tho country lies IN the rep,''
of the Sherman act Bat unlike IN" nahN'' n'
rcalizcs thoroughly that this is Impossible III '"'
,rosen, ,enper " Conarcss, and he has even less
ra,odnrce in the sagacity Of the Lid Con-
ross than he has IN that p;ss"Ssed by i's prede-
cessOr.
Tho Cabinet il is known, at its meeting 10
dov discussed the financial situation IN all l'S
ica,inr. without reaching any conclusion for
one tie President is pronounced IN MS oPp'o'
,ion TO the issue of bonds while ne "Hai"S III
oeice The only members OF the 'hpiheU WIN
are believed TO favor this method OF m'e'lhs '"'
present emergency arc Secretary Tracy anu '''
master General Wansmsker.
Spnafe
vorahIv to-day as an amendment 70 the Sunary
Civl Appropriation bill, now pFholns'
Mr. Shermnn's proposition TO rcduce !"
2 Der cent the MAXIMUM HiiO
interest TO I've allowed or any BOND Issues "h''"
may bc made in accordance with the PROVISIONS
NJ tLe Resumption act OF 1879 Ncither VII
sherman nor any other member OF the Finance
o,omittee contends that additional erislatlo"
Is rcnnired 10 empower tho Secretary OF 'he
Troasrrv n issnc bonds 10 maintain the parity OF
al other forms of United States curr"''N WIN
gold But the bonds Heretofore iSined uhser 'h'
vet Of 1873 have borne not less man y pr
cont interest and the amendment now oncl'1
nrnn,.cs to change existing law by hNnS 8 per
cent rs the minimum rate for the inturr' WIN
,ae credit of the Government as hrihlN eH'ap-
cent bonds could b. hoated 10 any amount de-
srod the Treasury having not long since Oh, or,
tancd an eNtcrson Of outstanding is at th' SUN
lower rate of per cent. 49, ,;,.oo
Only one member of the Finance committee
Nr Harris oprosed "A favorable report ON the
amendment tie Tenn'ysce Senator ba>lng ms op-
,ccion the ground that the sai" OF po'i', ~ ~
secure gold and maintain an lindlmlhlShe9 Eolo
reserve would still further affect the value ol
silver as money. The am"ndm"nt WIN pfop'oN
nr reached and voted on by the Senate tomorrow
afternoon o,., IL. -
Mr. Carlisle came UP 10 the Capitol rms morn
ing 10 consult with Mr.. sherman relative to the
nrono-.d bond issue He found Mr. Sherman IN
the committee room and was urged ny IN" mem,
hcrs of the committee 20 remain inns rrs,itcu
in y general discussion OF tile hnanclal prone'h
between the members Of the committee ana the
,uturc Secretary Of the Treasury, during which II
was apparent that there was no dlfer"nc" OF
oninion between Mr.. Carlisl" and the majority OF
The committee as to the wisdom Of the issue of
the bonds.
n.~urpc DJcCI-SS THE SITUATION