Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-02-23


WILMINGTON, THURSDAY, FEE. es.
In the New York Financial Chronicle
of the current week is critical review
of the recent transactions between
Secretary of the Treasury Foster and
certain banks Of New York city, by
which the latter furnished large addi-
ton to the dwindling gold reserve OF the
Federal treasury. On tho first Of Feb
ruary the free gold in the treasury was
reduced by the exports of gold to
$S,lst,714. As the expectation OF the
yellow medal promises to continue as
long as the Sherman act continues to
initiate the currency, the treasury's little
balance was felt TO be in danger, and it
became desirable to strengthen it.
Word to this effect was sent by Score.
tary Foster to the New York banks.
The clearing house banks strongest in
gold thereupon agreed to subscribe
amounts proportional to their hold
ings, some putting in $50O,O00, some
$3.50, 900 and so on. This gold was turned
into the treasury in exchange, it is
stated, for legal tenders, most Of the
latter being "Shermans,n or notes issued
under the act of 1890. The G,390,O0O
thus added up 10 Thursday to the treas.
ury reserve was a timely acquisition,
since on the Saturday following the
gold withdrawn from the sub-treasury
for export to Europe aggregated S3,25O,-
600 The banks engaged thus in sup
porting the governments credit are said
to entertain the purpose of placing all
their gold at the governments service
until the next Congress shall have had
an opportunity to repeal the sherman
act. 1t is to be noted that during tie
week, while the banks were thus en-
gagged, both the Senate and the House
Of the present Congress, by decisive
majorities, voted unfavorabY to the re-
peal Of the Sherman act The public
spirited exartions Of the "gola bug" in
the interest Of the public credit found
no response in the national legislature.
The motive Of the banks in thus part
ing with money unquestionahly good
for money worth intrinsically hut Ga
cents on the dollar (and likely to fall to
that value if silver basis is reachedO is
explained by the Chr9nir,e 10 be 1.-THE
relief and support Of the government
and people, The story that the banks
were promised in exchange for their
gold an issue Of $5Q,000,O00 Of 3 or A
per cent government bonds Is denied by
Secretary Foster, though others pcrsis,
in affirming that the bargain was made
but the Presdentrefused 10 lei it Be car.
ried ont, vowing he would sec The
$l00,0Ol,000 rrccnback reserve used I'm
first. To some extent, no doubt, III,
banks benefit themselves by dcferrtns q
possible monetary catlclysm, but thay
benefit others in IN equal degree. At i
a mistake" says the Chronicle, 81,
speak Of the banks and govern
ment's interests as identical. The
crisis is not at all Of such character
1t is an economic disturbance, the gath
oring of which the banks, with others
have foreseeu and fOrotold crisl
which our lawmakers have brough
upon the natiou--agaiust the protest o
the managers Of these institutions
Being in session now, Congress couIt
arrest the disturbance ut once by re
pealing the measure which is the excit
ing cause. The banks Know thei
action can only delay the catastrophe