The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-04-22
Secretary Carlisle Had to Re-
sort to That Course.
GOLD EXPORTERS FORCED IT.
How the New York Financiers View
the Action of Government.
Russoll Sage Wants Carlisle to Declare
His lntentions Plainly-A Long Cab
met Meeting at Which Finances Are
Deceased.

NEW York. April 21.-The upper crust
OF the $l00. 600. 600 gold reserve has been
removed. and the financial world has stood
by and witnessed the going Of it, and yet
tonight, in this financial center, no quak-
ings Of the earth are felt and the folks who
are most interested are wondering why
there has been no crash Of worlds nor
wreck of spheres. Indeed, some financiers
are looking each into others faces and are
calculating as to whether they have been
fanatic or uncannily superstitious. The
engagement of gold for export from here
on the steamers sailing tomorrow and on
Tuesday amount to sc, ,l75, 600, and from
Boston $75O.0OO.
There was much diversity of opinion in
the financial community during the day
over Secretary Carlisle's statement. In the
main the judgment was unfavorable, and
this is to no small extent because of the
statements of ambiguity. On the stock
market the accumulating ''bull rumors"
from Washington City diverted practically
attention from the secretary's 3 circular. but
the sterling exchange market opened in
utter confusion, rejecting an unusual oc-
currence-a scare among regular remitters
against foreign credit. The demand for
sterling bills, this time proceeding from
bankers doubtful about the gold payment
for treasury notes and anxious to antici-
pate their payments, was so heavy as to
force mp sterling rates to the highest figure
touched since the panic of 1884.
Over Sc, 900, 900 in gold has been engaged
for export by tomorrow's steamer, with
orders unusually widely distributed. In
the midst Of this turmoil the foreign
lenders of money called in the numerous
loans, and these notes being drawn with
the gold clause, payment in specie in at
least one case was demanded and obtained.
Not unnaturally the call on the money
market frightened under Withdrawals and
the stock market operators lending usual
assistance. the money rates were bid up
on exchange.
So far a. all this was the result of SIM
pie fright it had . reassuring side. The
treasury notes presented at the sub-treas-
ury were promptly redeemed in gold.
There was, moreover. . clear statement in
several quarters Of the vexed gold clause
in time notes. The older trust companies
and many banks which. to some extent,
are lenders on time, made positive state
ments today that they arc making no stip-
ulation of gold payment. Foreign bsnk-
ers, with one or two trust companies, are
steAdily insisting on the clause and are
resisted by borrowers. The borrowers on
call today were able to secure accommoda-
tion early in the day from to per cent,
but those who delayed supplying their
wants were forced to nay from 10 to IL per
cent. Posted rates for sterling exchange
we're raised to g. ss}}z and $4.9O11z, and there
was little disposition to draw. The situa-
ton was improved late in the day, and
money was in better supply toward the
close, and was lent as low as per cent.
WAsHISeroN CRY. April 21.-At the cab
met meeting this morning. at which all
tho members of the cabinet were present
with tho exception of Secretary Herbert,
the navy department and financial situa-
ton, it is understood, were almost the ex-
elusive topics of discussion. The meeting
lasted for two hours and q half and was
the longest session the cabinet has had
since the new administration came into
power. When the treasury department
closed its doors this afternoon the gold re-
serve of $1OO, 600, 900 had been invaded to
the extent of 81, 5OO, 900 to S., ,0OO OOO When
the day opened there was in the treasury
SIS, 600 free gold. This amount was IN
creased by gold offerings from the West
aggregating about $1.25O.0O but large
Withdrawals OF gold for shipment from
New York cut this down to such an ex-
tent that when the cabinet met Secretary
Carlisle found that the orders Cor gold up
to that time. about 1 O'Clock, had wiped
out all the free gold and invaded the gold
reserve to the extent of s.. $4,000. As far
IS it can be officially ascertained, this
amount was taken out of the gold reserve
today for export tomorrow, although it is
unofficlally stated that 100000 in
gold exclusive Of that taken out
at New York, was Withdrawn
from the sub-treasury at Boston for
export to Canada. If SO, this would make
about S, ,00O 900 in gold taken out of the
country for shipment tomorrow, and leave
the gold reserve invaded to the extent of
5000. 600, or the total gold in the treasury
at $97, 600 600. 1t is believed that this i'm
vasion is but temporary, and within few
days the depleted reserve will be restored
to the original figure, $l0O, 900. 900.
While nothing official can be obtained
here a. to the decision of the treasury de-
partment in regard TO the payment in
gold Of treasury notes of 1880, the fact that
these notes are being paid in gold upon
presentation proves conclusively that they
will, for the present. at least, be redeemed
as heretofore. The construction placed
upon Secretary Carlisle's statement given
to the press last night was that when he
reached the limit Of the gold reserve he
would exercise his discretion and pay this
class of notes. when presented for re-
demption, in silver. To this extent only
are the occurrences of today a surprise. It
can be stated with positiveness that there
is no disagreement on the financial situa-
ton between President Cleveland and Sec
retary Carlisle. or among the members of
the cabinet.
According to the sub -treasurer's figures
the net loss Of gold to the treasury today
was "a GOO, 900, Of which all but $40, ,00O was
for export Secretary Carlisle estimated this
morning that he had $ss5, 900 of free gold
in the treasury. Ii ne received none today
from sources outside of New York, the
treasury free gold is ali gone and the $780,
90, go reserve has been reduced to $9s-
2s5, ,OOO This is the first time since the re-
sumption of specie payments that the re-
serve has been cut into, counting in the
subsidiary coin as part of the available
funds of the treasury. A difference of
opinion exists as TO whether the subsidiary
coin should be thus counted. If not. then