The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-04-25
FUDDLED FINANCE.
No Light on the Monetary
Mess.
JORDAN AND THE BANKERS.
They Hold a Conference at the New
York Sub-Treasury, but Nothing
Comes of II.
JORDAN AND THE BANKERS.
Special to THE MoRNINe CALL

WASHINGTON, April 24.-lf the present
demand for gold abroad continues, a point
will probably be reached where the banks
vii no longer give up gold unless they get
bonds in return for it. Before Issuing
bonds Secretary Carlisle will probably
make quite hole in the reserve. How low
he will let the amount of gold in the
treasury fall before he takes steps 10 re-
plenish 1t by the sale OF bonds is not
known, but his reluctance to Issue bon ds is
so well understood it will not be surprising
if he allowed fully half of the reserve. or
even more, TO be exhausted before resort
ing to the sale of bonds.
The President, ON the other hand, 1t is
understood, fayors the earlier issue of
bonds, and the matter will be one of the
principal topics of discussion at the Cabinet
meeting Tuesday.
II is understood that certain Democratic
Senators have advised against the issue of
bonds for political reasons, thinking the
administration would lay itself open TO
the accusation of unnecessarily increasing
the bonded debt OF the country On the
other hand it is urged by others that the
early issue of bonds would be good stroke
of policy politically, on the argument that
the condition of the finances which neces-
STATED resort to the sale Of bonds was the
result of Republican mismanagement, es-
pecialy during the Reed Congress, when
they had both houses of Congress and the
Presidency, and passed the Sherman silver
purchase law, which. it is alleged, has
caused all the present difficulty.
Shortly before the passage of the Sher-
man law the treasury held in round num-
bers S177, 600 in gold. or $1,000, 600 more
than the reserve fund. The Sherman law
was approved by Harrison July IA. 1890,
and Immediately after the amount of gold in
the treasury began to be reduced until JAN
uary 81, 1891. it had fallen to S141, 600 600.
January 81. 1892, the figures were Sis, ,O0O.-
600. and on January of the present year
they were sos. 0OO 600, or only $4,000, 900
over the reserve. Since that time the
amount has peen maintained az about the
full amount Of the reserve only by strenuous
efforts on the part of the officials of the
Treasury Department.
The present condition of the treasury has
led to a revival of the talk of an extra ses-
sion OF Congress TO act on the Sherman law.
The President has not had anything TO say
on the subject to any of his Congressional
callers as yet. However, it is probable
there will not be an extra session before the
Isl VI DGpAthlDNl, W iicu IL Is uEutI SlOOu
Congress will be called to consider the ad-
ministration plan for a revision of the
tariff. The President will, doubtless, at the
same time take occasion in the message to
urge immediate action on the monetary
question and will. it is said, advise the i'm
mediate repeal Of the Sherman act.
The authoritative statement of Cleveland,
yesterday, in which he announced the
present and future action of the admins
tration in relation TO the use of the gold re-
serve, has taken the edge off the excite
ment that followed the act of the Secretary
of the Treasury in dipping into the reserve
fund. If there has been any danger o a
financial furry, that danger appears to have
passed.
Under the Interpretation of Cleveland's
statement the reserve is to be treated sim
ply as so much cash in the treasury, and
whether the aggregate rises or falls few
million a day becomes matter of little
concern. Consequently very little interest
is manifested to-day at the department in
regard TO the financial situation.
Some offers of the yellow m etal were re-
ceived from the West and accepted, and
Treasurer Jordan, at New York, reported
that he has also received considerable
amount of gold certificates. Up till noon
the treasury had not been advised as to
the extent of the gold shipment for to-
morrow
New YORK. April 24.-Conrad N Jordan,
recently appointed by Cleveland Sub
Treasurer of the United States at New
York, took possession of his office to-day.
Immediately thereafter he was visited by a
number Uf the big bankers of the city and
from noon until after o'clock the fnan-
ciers were in conference in the treasurer's
private Office.
All those present at the conference as
they left the Sub Treasury after the ad-
j0urnment declined to say what they had
done or what the conference was about.
They referred all inQurers TO Jordan. He
said:
81 can only say that we had a discussion
as TO the best way TO relieve the situation,
both as regards the banks and the Govern
ment. 1t resulted as usual in delay. You
cannot know anything further from me un-
til the delay no longer exists"
Jordan, in reply to further questions,
said the delay would last until something
had been heard from Washington. Secre-
tary Carlisle, it is affirmed from another
source. sent Jordan a communication as to
how TO raise from SIS, COO, 600 to $50. GOO, 900
of gold and this was submitted to the bank
ers present at the meeting.
Among the plans discussed were the
issue of bonds and a temporary loan. Each
of the plans has some advocates among the
banks. Carlisle preferred to obtain gold
supply in exchange for greenbacks, but the
bankers do not wish to give it IN that way.
According to Saturdays bank statement
the associated banks of New York held
S72, coo in specie. Probably more than
S50,00000 of this is in gold. The bankers
views heretofore have been, that while they
were willing to subscribe to an issue of
bonds to tide over the interval before Iegis-
lation can be accomplished. they were un-
willing to give gold in order that the export
to Europe might be facilitated
A very striking event in to-day's business
was the break in domestic exchange.
Along with this incident came the news
that there are gold-lenders in Boston,
where the banks have decided to part with
one-half of their 100000 in gold. If the
gold resources of the interior banks are un-
limited there can be little doubt that these
double transfers would force the hand Of
the New York banks, and that in defense of
their own reserves. il for no other reason.
they would open their own gold boards to
the Government.
The exports of gold tomorrow will aggre-
gate S3.200,000. OF this amount S2.1Ou, 600
was withdrawn from the Sub-Treasury To-