St. Paul daily globe., 1893-04-22
RESERVE CUT into.
Gold in the Treasury Now
Amounts to Less Than
$tOO.OOO,OO0.
President Hill Called to Give
His Views on the
Situation.
Eastern Finaneiers Desire the
Government to Issue
Bonds.
Western Banks IndoPSe the
Present Course Of Secre-
tary Carlisle.
Special to the Globe.

W ASHlNGION, ApIll IL - lCStAOilI
J. j. Hill. of the Great Northern, was
expected to arrive in Washington today,
but seems to have been delayed on the
way. Since the announcement by Secre-
tary Carlisle that no bonds will be
issued, the New York bankers have
been bending all their energies to the
work of securing a change of policy on
the part of the administration. They
want bonds and want them badly, and
it is no secret that they rely upon Mr..
Hill to make the strongest presentment
of their side of the question tothe presi-
dent. When the Great Northern mag
nate was here a month ago he took
gloomy view of the situation, and, while
favOring the bond issue, did not think
that even it would furnish the relief
needed. His opinion then was that not
less than s3OO,OO0,OOO would be the
amount needed in an issue at present
to afford the relief that an issue of $780,
100000 three months ago would have
given. President Hill. being a Western
man, is greatly relied upon by the New
York bankers. who are Just at present
Very Much in Need
of some one to indOrSe their views in
that section. Today they cited the fact
that Secretaries Window, Fairchild,
Manning, Mccullough. Sherman. Bout
well and Chase were always accustomed
to consult with them before taking i'm
portant steps. and they think it very
strange that Mr.. Carlisle should take
different view of the matter. The en-
couraging feature of the situation to the
South, and particularly the West, is the
fact that the Western banks are indOrS-
ing the course of Secretary Carlisle by
furnishing large amounts of gold to the
treasury in exchange for notes. Con-
gressman Hall, IN speaking of the action
Of Mr.. Carlisle, today said:
The determination OF Secretary Car
Isle to divorce the national treasury
from Wall street will be a popular
move in the West and South, and L am
glad to see that our Western bankers
appear to approve the detOur. l am
One of those members of the lower house
who did not believe that there was any
authority in law for the issuance of
bonds except for the purpose of re-
deeming greenbacks. and l am reiOiced
that Secretary Carlisle indOrses our
position"
President Hill is one of the ablest and
most clear-headed financiers in the
country, and is so recognized in New
York, but he will not be able to per-
suade the president and Secretary Car
Isle into issuing bonds.
Discussed by the Cabinet.
At the cabinet meeting this morning,
at which all the members of the cabinet
were present with the exception of Sec
retary Herbert, of the navy department,
the financial situation, 1t is understood,
was almost the exclusive topic of dis
cuSsiOn. The meeting lasted for two
hours and half. and was the longest
session OF the cabinet since the new adj
ministratiOn came into power. When
the treasury department closed its
doors this afternoon the gold reserve of
500, 000 600 had been invaded to the eX-
tent of S2,500,000 TO S3,000,000. When
the day opened there was III the
treasury S1S5,0O0 of free gold. This
amount was increased by gold offers
from the West aggregating about 81, 250,-
600. The large Withdrawals of gold for
shipment from New York cut this down
to such an extent that when the cabinet
met Secretary Carlisle found that the
orders for gold up to that time (abOut l
o'clock had wiped out the free gold and
invaded the gold reserve to the extent
"a Fnr IF
ficially ascertained, this is the amount
taken out of the gold reserve today for
export tomorrow, although it is un-
officially stated that 500, 900 in gold eX-
elusive of that
Taken Out at New York
had been withdrawn from the subtreas-
ury at Boston for export to Canada. If
so, this would make about S5,000.000 in
gold taken out of the country for ship
Inent tomorrow, and leave the gold re-
serve invoked to the extent OF S3,000.000,
or the total gold IN the treasury at S97,-
O0O,OG0 1t Is believed that this invasion
is but temporary, and that within a few
days the depleted reserve will be re-
stored to its original figure-S100,0 900, 900.
While nothing official can be obtained
here as to the decision of the treasury
department in regard to the paymentin
gold of treasury notes of 80, the fact
that these notes are being paid in gold
upon presentation proves cOncluSiVeiy
that they will for the present at least be
redeemed as heretofore. The cOnStrnc-
ton placed upon Secretary Carlisle's
statement given to the press last night
was that when he reached the limit of
the gold reserve he would exercise his
discretion and pay this class of notes,
when presented for redemption, in sill
yer. TO this extent only are the occur
rences of today surprise. 1t can be
stated with positiveness that there is no
disagreement on the financial situation
between the president and Secretary
Carlisle or among the members of the
cabinet.