St. Paul daily globe., 1893-04-19

urv has seriously considered the ad-
visibility of stopping the payment of
gold coin for the treasury notes issued
under the act of July II. 1890, the situa-
ton will present a very different phase,
and the shipment of gold. which IS
looked upon as a means for forcing the
administration TO issue bonds, will come
to an end.
Considered the Situation.
s The cabinet meeting today was de-
voted to some extent to consideration of
the financial situation, and it is believed
that the secretary 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
1870 the government is compelled to
purchase each month 100000 ounces
of silver, and at the same time issue
notes for the bullion received. There is
at present outstanding of these notes
$3.50, ,OJ0,000, and they are being con-
stantly redeemed in gold at the New
York Sub-tTeaSury. The redemption IN
gold of these notes has been matter or
accommodation on the part OF the treas
uIH OGUdl lliClfls 10 lAlS INV @A'NO hhN
secretary of the treasury the discretion
as 10 whether they will be redeemed i'll
gold or silver. Now that the gold bal
ance has been reduced, the secretary of
the treasury is considering the advlSa-
bility of using his discretion and paying
these notes in silver. IL the secretary
determines to take advantage of the
discretion given him by the law, 1t Will
be more difficult matter for New 1ork
brokers to obtain the gold for shipment.
as the stOppage of the payment on the
gold certificates and the treasury notes
would leave them with less upon which
gold could be obtained.
The subtreasury 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 condition OF the treas
ury up to Jan. 81, 1868, a table Is given
which shows that the SubtreaSury re
deemed the following amounts OF treas
ury notes in gold each month since
June. 1892: July, So, 10S,900; August,
S5,0l9.OO0; September, Sl,759,OOO; OctO-
ber, 1924. POO: November, 100000; De-
cember, S4.366, 500, and January, 1893,
81, 43S, 800, or a total of S21, 1868 OF
treasury notes redeemed in gold for the
past seven months mentioned. For
February and March it Is said that the
redemption has averaged S4,G00,O00 each
month. From this it will be seen that
considerable 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 means of
obtaining it, as it is said that this
class of notes has been largely presented
by New York bankers III exchange for
gold. 1t is said that the continued re-
demptiOn of these notes in gold was
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 bullion sold.
There is feeling among some men
who have been prominent III financial
circles that should Secretary Carlisle is
sue an order stopping this redemption
that it would produce something of
sensation, but those who are best posted
claim that nothing of the kind would
result, and still insist that if it became
apparent that Secretary Carlisle were
TO Adopt This Course
that the New Workers who have been
represented as trying to push the gov
ernment into all embarrassing position
would see that their efforts had been in
vain and gold would again begin to
flow into the treasury. If they are cor
rect in their surmiSeS 1t will be un-
necessary for Mr. Carlisle to take any
further action. The confidence of treas
ury officials is increased 10y the knOwl-
edge that Conrad n. Jordan, the new
subtreaSurer at New York, will prOba-
bly, enter upon his duties tomorrow
morning. His ability is particularly
well thought of here, and with his as
sistance it is believed that Secre-
tary Carlisle will successfully meet
the situation. After the cabinet meet
ing reporter saw Secretary Carlisle
at the treasury department. but he po-
litely declined TO discuss the financial
question, policy he has held for some
time, Dreferring not to forecast any
action until the necessity for it arrives.
Several small offers OF gold have been
received from the West. These offers
aggregate less than S500,000, and will
not appear on the treasury books for
several days. At Eastern points slight
increase in gold is noted, the free gold
having increased today $4,000. making
the total as shown by the books of the
treasury today S65, $50. There is said to
have been also slight increase in New
York, which will not be shown until
tomorrow. Information received at the
treasury department indicates that the
gold shipments for next Saturday will
not be heavy, and there may be none
at all.