The sun., 1893-04-23
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SATURDAY. April ~.
Tho indecIslon OF Secretary Carlisle has sub
| jected not only Wall street. but the entire
country. to a severe and unnecessary strain
this week. 1t has stimulated the effiux ol
| gold. and thus aggravated n situation
which might have been simplihed
weei ago by brief and definite an
| nouncement by the Government OF its
| policy. The weight OF evidence at tho moment
| Is in favor OF q continuation OF gold payments
| on Treasury notes: but In default oil official
| assurances to that effect the public generally
| is In doubt as to how long the present policy
will be pursued. The common sense view is
| that the Government cannot afford to dis
| oriminate against any OF It's obliGa-
tIons. and 1t is to be regretted that 1t
docs not perceive the Importance OF making q
formal and distinct statement upon this point
at once. instead OF pursuing what in official
circles may be described as q diplomatic or
conservative course.
The Treasury Department appears to be
relying upon the good nature or public spirit
OF the country to help It out In It's present
emergency. In due time 1t will doubtless find
out that It has chosen n very inefficient and
uncertain ally. Washington dispatches to-day
describe SIR. Carlisle as feeling very much
Rratined because the Treasury has received
from various sources S4.00O00O In gold
which temporarily brings It's gold bal
ance up to $100.OO0.000 again. II
the Secretary knew to what extent this
recuperation OF his gold balance was delusive
and incidentally facilitated the transactions OF
certain foreign bankers. he would not. per-
haps. feel as amiabe about It as he does For
example. $l.0O0.o0O in gold. abraded By use
4 l.. ~-l~ hta o., rNrA
used coin. was deposited at the sub-Treasury
in San Francisco this week. The depositor
was branch OF one Of the Canadian banks.
which was desirous OF transmitting the
money to it's homo offlce in Montreal 1t made
the deposit subject to a condition that the De-
partment should pay a like amount In legal
tenders to the New York branch Of the same
bank. This was done. and fow days there
after the legal tenders wore presented at
tho Sub-1reasury here for new gold
coin. which had been shipped to Canada
All that the Treasury got out OF the
transaction. therefore. was tho clerical work Of
transferring q million dollars across the con.
tinent for the benefit Of foreign institution.
which not only saved the express charges. but
made five days interest on the amount.
1t 10 reported that smaller similar transac-
tons have been made: in fact. practically all
Of the gold turned over to the Sub Treasury by
Southern and Western banks Is accompanied
by . condition that legal tenders for the
amounts be paid to their New York corre-
spondents In these cases the banks save
either the cost OF transmitting currency to
New York or the expense OF domestic ex-
change. These operations also facilitate the
Now York banks in furnishing legal tenders
to their customers who are engaged in tho
business OF exporting gold. and obviously the
~ &, Itch
The s4000.000 gain In gold which the
Secretary was boasting OF to-day will probably
be taken from him before the middle OF next
week. for exporters OF specie began to-day to
withdraw gold from the Sub-Trcasury for
shipment on Tuesday. taking upward OF ST.
100000. 1t certainly will be interesting to OBJ
serve the outcome OF the present process OF
feeding the Treasury with o spoon while 1t is
being depleted with shovels.
The report was revived to-day that there
would be meeting this afternoon or Monday
Of the Presidents OF the city banks to discuss
the financial situation. with view OF suggest
ing or recommending policy to the Govern
mont This report doubtless referred to an
informal conference OF q few bank officers. an
account OF which will be found in another col
umn. The banking community Of this town
Is practically unanimous In its views rel
ativs to the financial situation. and
both the President and Secretary Carlisle
have been Informed. through o number OF
Trustworthy mediums. as to what those views
are. There Is nothing for tho New York banks
to do but attend to their own business and
keep themselves strong to meet any demands
that may be made upon them in consequence
OF tho apprehension which the indecision OF
the Government has aroused. II a policy were
announced by the Administration the banks
A1, do IN, hal 20 hal
execute 1t.
They have done good work this week in fur
nishing those OF their customers who hnve
been com PEELED to ship gold with minimum
OF Treasury notes for presentation at the Sub
Treasury. and two Of them have contributed
of their stock OF gold to keep the so-called
legal tender reserve unimpaired until the
situation could be discussed at yesterdays
Cabinet meeting. In due time tho Secretary
of the Treasury may discover that
Wall street Is something more than
a speculative centre. ana that there
is vast difference between the Wall street
that trades In stocks and tho Wall street that
furnishes tho great bulk OF the money for the
business and development of the country.
This last makes mistakes at times but has
never yet evolved Q proposition for discredit-
ing one obligation OF the Government and at
the same time holding similar one to be be-
yond reproach.
Probably never in its history has Wall street
been so well prepared for an emergency as 1t
is at present. Within the last two years and
hnlf 1t has stood heavy liquidation in securi.
ties not only on its own account. but by Eu-
ropean holders well. aud. strange
as 1t may seem. during that period
the floating supply OF stocks. particu-
larry OF the better class. has been materially
reduced. The rapid increase In wealth
and the fact that com parativoly fow new secu-
rifles have been manufactured havo contrib
uted to this result. Tho banks as u whole
are strong. and at the moment prefer to lend
money on securities which can be readily re-
allied upon than to tie up their re s ources in |
commercial obligations. Speculatively the
stock market Is in II comparatively safe posi-
tion. because o: the existence OF an enormous
short interest But for that interest the
decline In prices this week would have
been more pronounced. The country Is not as