The Providence news. (Providence [R.I.]) 1891-1906, 1893-04-19
TIKI BALANCE V Gold.
Silver Nay be Used to Check Further
Reduction.
A NEW BURDEN FOR BANKS
which VIII Tend to straighten the Finsn-
ciai Tangls-what an Examination of
shs Condition OF the Treasury Tends
60 show.

WASHINGTON, April l9.-It Is learned
unofficially that instructions have been
sent to the several sub-streasurers of the
Unite States to suspend payments of gold
IN redemption of notes issued under the
Sherman silver bullion purchase act OF
1890 and to redeem such notes In the fut-
ure In silver coin.
When questioned In regard to 1t an Off
ciaI said IL would have to come to that IL
was previously stated In the dispatches OF
the American Press that the secretary of
the treasury had such an order under
consideration in the hope that IL would
tend materially to arrest the reduction OF
the treasury's gold balance The author
ify for this action is contained in section 2
of the Sherman act, which provides that
"The secretary of the treasury shall, under
such regulations as he may prescribe, re-
deem such notes in gold or silver coin at
his discretion"
Immediately following this grant of dis
eretionary authority is the following clause
In the
Act DecIaratery OF Dor Policy;
"It beirg the established policy Of the
United States to maintain the two metals
on parity with each other on the present
legal ratio or such ratio as may be pro-
vided by law"
This qualifying clause, It will be noticed,
leaves the way open for two opinions to
prevail as to whether the present exercise
Of discretionary authority does or does not
maintain the two metals on a parity, and
the secretary will doubtless find his action
hereafter gauged by the effect produced
by it.
The effect of an order for she redemption,
of silver certificates coupled. With the order
of last Saturday stopping the issuance OF
gold certificates will be to make IL more
difficult for the gold export brokers to OBJ
tain gold for shipment. and will throw the
burden of furnishing gold TO some extent
from the government to the banks The
banks, it is said, will, In their turn, check
any outward movem of specie. IL 1t be-
comes q matter of importance to them. by
raising the rate of interest.
Treasury Figures.
A statement, taken from the report of
the ways and means committee. which in
vestigated the condition of the treasury at
the close of last congress, shows that for
the seven months beginning July I, 1892,
t21, l36, 500 of treasury notes were redeemed
in gold, to which must be added about
ss. 100000 for the most Of February and
March last AS gold cannot be obtained
with thsse notes whenever the treasury
orders II stopped and as gold certificates
will NO longer be issued, the banks and
brokers will be unable by gathering in
supplies Of these notes and certificates to
obtain treasury gold and will, to an extent
at least. be forced to store the gold in their
own instead Of in the treasury vaults. A
considerable amount Of gold is held by
some banks already. OF the 81 800 900 in
gold taken from the sub-treasury ycster-
day for export, eoO0.0 was drawn by pre-
sentatiom of these treasury notes.
At the treasury department an easier
feeling prevails, and the belief Is expressed
that the general knowledge which was
gaining currency that the secretary would
draw on the gold reserve rather than issue
bonds would relieve the situation some
what by making less urgent certain efforts
20 expOrt Qold-