Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1893-04-27
SOLVING THE GOLD PRosLEM.
The Secretary OF the Treasury SusPends
the Payment OF Gold to Redeem Silver
Certificates Heading ON Wall Street

The Secretary OF the Treasury Suspends
the Payment OF Gold to Redeem Silver
Certificates Heading on Wall Street
WASHINGTON. April 19.-The gold sit |
uation is considered to be easier.
Treasury officials are more confident |
than they were twenty-four hours ago,
and in the minds of all the impression
has become stronger that it may not be |
| necessary for the secretary to take any
| action which viii change the present
! policy of the department This feeling
was said to be due to the fact that
the announcement has practically been
made that the government will, only
as a last resource, turn to the issu-
| ance of bonds. This firm and deter
mined proposition of Mr.. Carlisle has al
ready had its beneficial effect, and so
soon as it becomes known that the sec
rotary of the treasury has seriously con-
sidered the advisa bility OF stopping the
payment of gold coin for the treasury
notes issued under act of July Ii, 1890,
the situation viii present very differ
ent phase, and the shipment of gold,
which is looked upon as a means OF
forcing the administration to issue
bonds viii come to an end
The cabinet meeting yeste-1ay was
devoted, to some extent, to considera-
ton of the financial situation. and it Is
stated that the secretary of the treas
ury viii 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 4, 500, 900 ounces
of silver. and at the same time issue
notes for the bullion received
There is at present outstanding
of these notes $3.50, 600, and
they are being constantly redeemed
in gold at the New York sub-treasury.
The redemption in gold OF these notes
has been a matter of accommodation
on the part of the treasury department,
as the law gives the secretary OF the
treasury the discretion as to whether
they will be redeemed in gold or silver.
| Now that the gold balance has been re-
duced, the secretary of the treasury is
considering the ACCESSIBILITY of using
his discretion and paying these notes
in silver. The second section of the
silver act reads as follows:
Sec. = That the treasury notes issued in &C
cordance with the provisions Of this act shall be
redeemable demand in coin at the treasury OF
the United States or At the Office of any assist
ant treas urer of the United States and when 50
redeemed may be reissued- but no greater or
less amount of such notes shall be utstanding
| 1T any time than the cost Of silver bullip,i and
the standard silver dollars coined ths-efrom,
then held in the treasury, purchased by
such notes, and such treasury notes shall
be q 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 Dy anT
tional banking association, may be counted as
q part OF its lawful reserve; that upon demand
| of the holder OF any treasury notes herein pro-
vided for, the secretary of the treasury shall,
under such regulations as he may prescribe re-
deem such notes in gold silver coin at his
discretion, II being The established policy OF the
United States TO maintain the two metals on a
parity with each other upon the present legal
ratio, or such ratio may be provided By law.
If the secretary determines TO take
advantage of the discretion given him
by law, it will be more difficult mat
ter for New York brokers to obtain the
gold for shipment, as the stoppage OF
the payment on the gold certificates
and the treasury notes would leave
them less upon which gold could be OBJ
tanned. The sub-treasury in New York
at the end of each month makes re-
port 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
|
January 81, 1898, table is given which
shows that the sub-treasury has re-
deemed the following amounts of treas
ury notes in gold each month since
June, 1892:
July, s., los, 900: August, S5,019, 900;
September, 81, 759 900; October, 1924, 200;
/ November, 1920, 900; December, 81, $685.
500. and January, 1895, 81, AS, 900, or a
total of s21, 13e 500 Of treasury notes re
deemed in gold for the past seven
months mentioned For February and
March it is said the redemption has
averaged "a, O0O, 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 off one of their most ample
J means of obtaining them, as it is said
| that this class of notes has been largely
presented by New York bankers in ex-
change for gold.
1t is said that the continued redemp-
ton of these notes in gold is bound to
result in the driving out of all the gold.
For it 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. AS a
former treasury official explained it to
reporter, the principle is the same as
, though one had glass partially filled
with water with layer or surface of
oil. IF one would continue to pour in
water the oil would finally be forced
out In this case the water represents
the silver and the oil the gold, and the
continual purchase of the white metal
and the giving out of it for gold has
| brought about this result.
Attempt to Wreck Pay Train