The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-04-18
SECRETARY cARLIsLE,s ORDER.
Views OF Gotham Bankers on the Suspensio
of Issue of Gold Certificates.

Views OF Gotham b .nkers the Suspension
of IssSe of Gold Certificates.
NEW YORK, April 1.-THE order of Secre-
tary Carllsle that the issue of gold ce-tif-
Gates should cease forms the topic of dis
cussion in financial circles. A number of
bank presidents and men In high financial
position were interviewed. and what they
said shows that even among mon of special
knowledge and training there Is wide d.
versity of opinion.
President Van Norden. of the Bank of
North Amer lea, said, in reply TO q question
as to what he thought of the situation:
1.-The only way the government can main
tain its Sl00. 900 900 reserve IL by the sale of
bonds"
Mr.. p. c. Lounsberry. president of the
Merchants Exchange National Bank. said
he thought the cotton OF the Secretary of
the Treasury would scare people, and that
they would draw gold and hoard it, Still.
be saw no reason for alarm with 5000 000-
600 of gold in the country.
PRECEDENT G. G. Williams. of the Chem;
the Secretary stop issuing gold certificates
because the gold Gums below a hundred mil
lionf Ii would seem as If be ought to be
moro anxious to issue them. don't think
] reserve
20 below SlO0, 600 OOO do not see any rea-
son why it should create any strin eency.
Adverse foreign trade ia . feature of the
present condition of affairs, which appears
TO me of more consequences than the cessa-
President 4. X. Wright of the Park
Bank said he thoug ht the order might IN
crease the amount of gold in the treasury.
The government, he believed. would avoid
q bond issue as long as possible. The ex-
~ w NJ ha
holding back OF our product for higher
Mr.. Henry Clews said: "The effect cam
not be very serious because the action is in
held for specific purpose and why should
ii not be used for that purpose? The gov
ernment, by the law as II has worked ND TO
this date. has merely used the
ssorsss Warehouse ne" for 0 owners rs Of
the gold. the government taking ell the
risk, care and expense. which has been
very great. There is Sll6.000.0c0 of gold
now held on special deposit by the United
States Treasurer. Had it not been for this
law which permitted it TO be deposited
with the treasury for safekeeping. this
gold would have been fairly divided be-
tween the banks and the United States
treasury whlch would have given the gov
eminent that much more free gold. The
law has provided the means for individuals
TO hoard gold by securing certificates and
locking them mp in safe-deposit boxes.
Banks that do not hold gold as their re-
scrve are compelled TO hold legal-tender
notes IN its stead. / think the next best
step for the Secretary of the Treasury
would be 10 stop receiving gold on deposit
altogether. Then what gold came into the
treasury would all belong TO It The law
itself has served very bad purpose mp to
date. The governments certificates have
often been used by bear specuiators in Wall
street to bring about string gent money, for
IL has been q simple process TO get control
of several millions OF these gold certificates
and lock them MP IN q safe del post box
which is the same as looking up so much