Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1893-05-05

New YORK, April 29.-The facts rs
to the recent conference, directly or
Indirectly, with the Secretary of the
Treasury by the New York bankers
have not as yet been fully published.
1t is true that at the meeting at the
Sub-Trea sury Mr.. Carlisle made prop
osition to the banks to issue to them
certificates for $4,000, 900 worth of
bonds on a basis of 3 per cent
interest, bearing date April l,
these certificates emitting them to
bonds at the end of the year if
not sooner paid by the Treasury.
This proposition was declined by the
bankers with entire unanimity, for the
very simple reason that it amounted to
a collateral trust loan, which they are
not in a position to make. The certifi-
Gates could not be used by them as a
part Of their legal reserve; they could
not be used as security for deposits of
public moneys; they could not he used
as the basis of circulating notes; they
could not, in fact, be used at all,
Following the rejection of this prop
os;tion, which has perhaps too severe
ly been described as that, not of a
financier, but of an amateur, came the
direct conference on Thursday at the
residence of the chairman Of the Clear
ing House Committee. Mr.. Carlisle's as
surance that gold payments would be
maintained was as explicit as the dec
laration Of Mr.. Cleveland required.
His statement that the credit of the
government would be resorted
10 when necessary was I'M
qualified The point that was dis
russed, and very plainly in some re-
spects, was when and how it should so
be used. 1t was pointed out to the
Secretary that not only was the gold
in the Treasury below the limit of the
reserve roba bly, as low as $50, 900, 900
or so, geo, OOO-but that the working
balance in the Treasury was too low
for convenience or even safety. He
was strongly urged to strengthen not
only the gold reserve, but the work.
ing balances. 1t was represented that
this would not be at all difficult
matter; that a loan could be
made, say. for $50, 900, 900 in gold,
partly abroad, partly in New York
and in large part throughout the rest
of the country. He was reminded of
the measures adopted by Secretary
Sherman when he issued interest bear
ing certificates exchanged bic for bonds
through the postotfices Of the country,
and thus secured the success of large
loan. There is a large amount of gold
in the country. In ten cities where
there are sub-treasuries there is $1O3,-
100000 in the national banks alone
This gold could readily and certainly
be drawn into the treasury on low in
terest it the treasury would ask for it.
This plan was not acceptable to Mr..
Carlisle. He suggested one of his
own. 1t was, in substance, to use his
own language. that the Treasury and
the banks should pool their gold"
That is to say, he wished that the
banks in all these cities would make
an arrangement with the Secretary by
which, whenever the gold in the
Treasury fell below the $780,
900, 900 reserve, the amount should
be made up by the banks: when the
Secretary had more than the 500, OOO,-
900 reserve he would return it to the
banks This plan was not, however,
accepted by the bankers, who did not
feel the liberty to pledge the resources
of their depositors on such indefinite
terms and to such an uncertain amount
and for SO uncertain time. It was
finally suggested that the conference
adjourn without announcing any ex-
plicit results and that further negotia-
tions should be had.