St. Paul daily globe., 1893-02-18
Foster Announces That the
Gold Reserve Will Be
Kept Intact.
Senator Stewart Says the
Treasury Has $70O,000,-
COO in Coin.
President Harrison Leaves
the Issue Of Bonds to FOS-
ter's Judgment.

net balance which. for the past few
days, had dropped down to a danger
ouSly low margin. Today it is about
So, 100000, of which S10000:0O0 is in
subsidiary coin and a like amount in
national bank repositories. The margin
few days ago was only about S23, ,0O0,-
900, which, taking ont of the two items
| named, left the treasury with very
narrow margin to work on. Treasury
officials are still interested in the Ques-
ton of keeping intact the $lO0, 900, 900
gold reserve.
Secretary Foster authorized the state
ment today that the gold will be kept
intact at all hazards. How. he could
not say, but he stated with emphasis
that if it was necessary to issue bonds to
do it, he would even 60 TO that extreme.
At present the free gold is more than
SS,0O0,O00. He said he felt almost GER
tain that the free gold is more than
SSO00,O0O. He said he felt almost GER
tain that he could reach
The End of His Term
without having to issue bonds. Even
to issue bundS-say $50,000,000," said
the secretary, "would not necessarily
mean an increase i'll gold to that extent.
The law provides that bonds must be
paid for in coin. Silver is coin. What
is there to prevent silver or its equiva-
lent being offered for bonds? Nothing.
Could | refuse it? No. So, if even
bonds were sold, would that relieve the
situation? Not unless an arrangement,
based on honor, between the secretary
of the treasury and the purchaser was
made, and then L would be subject to
all sorts Of criticisms. The whole sub
ject is surrounded by veXationS. You
may say, however, that the gold reserve
will be kept intact, COME what may"
Treasurer Nebecker is quite emphatic
in his opinion that the United States
government should not issue bonds at
present. and said today that if either
political party issued bonds it would and
deserved to be visited with popular con-
demnation. He received dispatch
from New York this evening stating
that only $3.50, 900 in gold was taken to-
day for shipment abroad. 1t was
thought from previous adVces that
$500, 900 would be required.
Says silver rs Coin.
In the course of the discussion in the
senate today on Mr.. Sherman's amend
ment. providing for the issue of 5 per
cent bonds. MIR. Stewart said there was
no necessity to sell bonds to buy coin.
There was plenty of coin in the treas
ury. There were over O0,0OO.OO0 OF
silver coin and silver bullion in the
treasury and S10S,0 900 of gold, thus
making over S700, 100000 of coin or of
what might be converted into coin. If
silver was good money for the people it
was good money for everybody. and
there was plenty of it. Mr.. Mills moved
to strike out Of the amendment the
words live years after this date, so
as to leave the bonds redeemable at the
pleasure of the government, and he
argued in support of the motion.
Mr. Sherman said that, if the PROPOSE
lou was not one to provide for an emer-
ney, he should feel disposed to ac-
cept Mr. Mills amendment; but he
thought that it would not be wise to
venture on it now. He did not believe
that any considerable amount OF the 8
per cent bonds would ever be issued,
at the same time the contingency should
pe provided for. The power to issue the
bonds would, he thought, enable the
secretary of the treasury to maintain
the gold reserve without his issuing
them.
opposed by Teller.
Mr.. Teller opposed the Sherman
amendment He said it would not do
to come to the senate with pretenSe
that the amendment was In the interest
of economy. II was not. 1t came to
the senate because the bankers and
brokers OF New \ ork desired that the
government should issue securities on
Which they might bank. Had the Sec
retary of the treasury tMr. Teller in
quired) asked for the proposed relief?
Had he not, on the contrary, asserted
again and again that there was no oc
casion for the sale of bonds, and
that he did not propose to sell,
and he tMr Telier) asserted
that 10 bonds would be sold
by the treasury between now and the
4th of March next, because it was ad
mitted at the treasury that there was no
such emergency as would require it.
There was a feeling that the Republican
party had become obliviouS TO the inter-
eSts OF the great masses of the people
and been paying court and attention
only to capitalists and monopolists.
THAT is" said he, what sent US to the
tomb"
Mr.. Voorhees, supported the amend
ment. AS to the fall of the Republican
party, all he had to say was that he was
thankful to God for manifest blessing.
Laughter
Left to Fosters discretion
NEW YORK, Feb. IA special from
Washington says it has been learned on
high authority that President Harrison
has reeonsidered his determination not
to allow tile sale of bonds TO make good |
the gold deficiency. Before leaving the |
city Wednesday, the president author
lied Secretary Foster to offer bonds for |
sale whenever i'll his Judgment such ac-
ton is absolutely necessary to maintain
the governments gold reserve. Another |
dispatch on the same subject says: This |
sudden change of mind on the part of |
the president was wholly unexpected, |
and it is not to be attributed to any out
side influence brought to bear upon him.
On the contrary, such men as j. Pier
pont Morgan, who came to Washington
Wednesday to talk over the situation
with the authorities, left Secretary FoS-
ter decidedly disappointed. They re-
ceived no announcement what
ever. They left Washington as
they had come, uncertain as
to the attitude of the government with
regard 70 this important question. The
change of front determined upon by the
president leaves Secretary Foster free
to act as lie sees fit, should an emergency
dIlSG III Illc pIColuCllL dDoOlCC. L HdI
uch all emergency has yet arisen he
does not believe. The treasury yester-
day had still Oh hand about $S000,00O
Next Saturdays shipments of gold to
Europe will probably not be so large as
it was feared they would be. If. as now
seems likely, instead of being $1,000, 600,
they are only about one-third of that
sum, at the end of the week the treasury
will still have in its vaults little over
S6,000.O00. One thing Secretary Foster
is full determined upon-lIe will not per-
nit the 100000, 900 reserve to be at
tackled. On this point he is Of the same
opinion which he expressed at the an
nual dinner of the chamber of commerce
at New York in November last.
f,1ANr |