The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-06-04
Treasury Stock Now Reduced to $50. .939, ,2l7
and the officials Seemingly Helpless to
Prevent Its Further Decrease.
Meantime Failures Due to the Financial
StriDgency Are on the Increase.
Herman Schaffner & Co., Private Bankers of
Chicago. and the Largest Dealers in Com
mercial Paper in the Country, Assign.


Treasury Reserve Now Invaded Over Ten
Millions-Renewal OF the Bond Talk
WASHINGTON. June a-Ar no time since
specie payments were resumed on Jan. l.
1879. has the net gold in the treasury of the
United States been so low as 1t is to-day.
The amounts $50. 9S9.217. On Jan. i. 1879,
report made in 1879. stated that he had
on Jan. coin to the amount of Sl41,S $685.
600 available for the resumption of specie
payments. OF this amount 0nes hun
dred and fourteen millions was in
gold, the balance in silver. and both
were denominated coin. Since that period
the net gold in the treasury has gradually
increased until. In March, 1888. it reached
e2ls.slS. 900, which was hIghwater mark.
Since January. 1885, the net gold holdings
OF the treasury have been on the declining
scale. decreasing from $l94. 1000 in
January. 1889. to e177.0OO.oOO In January.
COO in January. 1892. and Slos. 100000 in
January, 1893
While no uneesiness is felt at the Treas
ury Department because of the continued
loss of gold from the treasury, still Score
tary Carlisle is not unmindful of the fact
that a limit may be reached where the con-
fdenoe reposed in the treasury by the peo-
ple may be shaken. How TO replete the
treasury with gold has been q problem
seriously considered by the administration
ususl remedy suggested. but it is known
that the President 10 EOt IN favor. OF
this alternative. except the last
resource, and even II they are issued, treas
ury officials are not by any means confident
thHt the treasury gold. repleted IN this W ay,
Will long continue so. 1t is contenced that
TO obtain gold In this way with the pres
ent laws In force simply means the govern
ment borrowing gold at interest for the
purchase of silver, with no assurance that
treasury longer than the time necessary TO
take IL out.
Suggestion has been made that the Sec
retary Of the Treasury has tho power to
issue greonbacks In exchange for gold.
thus increasing the amount OF gold and IN
creasing the volume of greenbacks out
standing to the extent of the gold thus ex-
changed. Secretary Carlisle being out Of
the city to-day. his views on this subject
Hamlin said he had heard the Suggestion
manner ind,osted that his hope was
very faint. Other treasury officials
were questioned on the subject and they
had been advanced at different periods in
the past ten years. No law on the statute
books was more stringent than that reiat-
ing to greenbacks. 1t provided that S946.-
600. 600 of greenbacks should be kept in cir
culatlon. When such notes ore presented
for redemption new notes 90 q
like amount had to be issued.
The Secretary of the Treasury has
no discretion either to increase or
diminish the volume of green backs. Sec
tIon S77. of the Revised Statutes. provides
that the Secretary of the Treasury may
exchange any class of money for coin. and
out of this provision of law 1t IL presumed
that the Secretary of the Treasury had
discovered q statute which permitted him
TO issue greenbacks in exchange for gold.
This statute gives hun the power. which
has never been questioned. to exchange
greenbacks. United States treasury notes.
United State notes, silver certificates. gold
certificates. silver coin, SILVER bullion and
gold bullion for gold coin or gold bullion
in his discretion, but there is q decided diff
ference between the exchange" OF one
class of money for gold and the tissue" of q
class of money to exchange for gold. Tho
Star. In discussing the monetary situation,
says:
1t IL understood that the question which will
be discussed at the special meeting of the Cabi-
net. TO be held on Monday morning. will be that
of the condition of the treasury. The shipments
or gold from New York during the past week
have amounted to $6.700.00O. including the
$2OO.oOo which went TO Canada. Now that the
shipments hayo again begun to be heavy, the
subject comes before the administration as one
of no little concern. for should this rate OF
gold expert continue. it would not pe long before
the reserve would be reduced TO figure
that would be uncomfortably small. AT the
Cabinet meeting IL is believed that the Attorney
general will render an opinion on the question
as to the right of the administration 10 issue
bonds without action by Congress. Solicitor
general Afdrich drew up an opinion on this ques-
ton, which Attorney general Miller adopted. de-
Gliding that such a course could be pursued. and
1t is intimated that Mr.. Olney viii also hold TO
this judgment. Ii would seem that the agitation
OF the bond-issue question is to be resumed.