The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-04-19
CARLISLE MORE CONFIDENT
The Financial Situation Not So Critical
as Ii Seemed a Few Days Ago.
II II Becomes Necessary the Secretary May
Stop the Payment of Gold Coin for Notes
Issued Under the Act of July Ia. 1890.

WASHINGTON. April 1S.-Ths gold situa-
ton to-day 10 considered To be easier than
IL WAS yesterday. Treasury officials are
more confident than they were twenty-four
hours ago, and. in the minds of all, the i'm
preston has become tronger that it may
not be necessary for the Secretary TO take
any action which will change the present
policy of the department.. This feeling
was said to be due to the fact that the On.
nouncement was practically made that the
government would only as q last resort
turn to the issuance of bonds. This urn
and determined position Of Mr.. Carlisle
has. they say, already had it's beneficial eff
feet. and so soon as it becomes known that
the Secretary of the Treasury has seriously
considered the ACCESSIBILITY of stopping
the payment of gold coin for the tressury
notes issued under the act OF July IA, 1890.
the situation will present a very different
phase. and the Shipment of gold. which is
looked upon as q means for forci ng the adj
ministrstion TO Issue bonds. will come to
an end.
The Cabinet meeting to-day was dc voted
to some extent to the consideration Of the
AAhuCloi COnultlou, 0uQ IL 10 OCilcvru Shos
the Secretary of the Treasury viii. be mp
held In his advice to stop for the present
the payment in gold of treasury notes.
Under the silver act of 1890 the govern
ment is compelled to purchase each month
1850, 600 ounces of silver. and at the same
time issue notes for the bullion received.
There Is at present outstanding OF these
notes $3.50. OO0. 900. and they are being con-
stantly redeemed In gold ct the New YORK
anhfroopy Tna tfn IN Ds.td nf
these notes has been q matter of accom-
mediation on the part of the Treasury De-
partment, as the law gives the Secretary
OF the Treasury the discretion as 10
whether they will be redeemed In gold or
silver. Now hat the gold balance has
been reduced. the Secretary of the Treas
ury is considering the a dvisability of using
his discretion and paying these notes In
silver. The second section of the silver
act reads as folio VS.:
Section =. That the treasury notes issued in
accordance with the provisions OF this act shall
be redeemable on demand in coin at the .re6sury
sistant Treasurer OF the United States, and wnen
so redeemed may be reissued; but 10 greater or
less amount OF such notes shall be outstanding
at any time than the cost OF silver bullion and
the standard silver dollars coined thereironl
then held in the treasury, purchased by such
notes. and such treasury notes shall be a legal
tender In payment of all debts, public and
private, except where otherwise expressly stip-
ulated In the contract, and shall be recelya able
Tor customs, taxes and all puDllc OleS, ana Wnen
SO received may be reissued; and such notes,
when held by any national banking association,
may be counted as n part OF its lawful reserve.
That upon demand OF the holder OF any treasury
notes herein provided for the Secretary OF the
Treasury shall, under such regulations as he
may prescribe, redeem such notes in gold or
silver coin, at his discretion, 1t being the estab-
lished policy of the United States to maintain
the two metals on a parity with each other upon
the present legal ratio, or such ratio as may be
provided by law.
VII WORRY THE BROKERS.
If the Secretary determines to take ad-
vantage of The discretion given him by the
law il Will be q more difficult matter for
New York brokers to obtain the gold tor
shipments. as the ~stOppage of the payment
on the gold certificates and the treasury
notes would leave them with less upon
which gold coulo be obtained. The sub
treasury in New York, ut the end of each
month. makes a report to the department.
here showing the amount of treasury notes
that have been redeemed in gold. In the
on the condition OF tho treasury MP To Jan.
81, 1898, q table is given which shows that
the subtreasury redeemed the following
amounts OF treasury notes In gold each
month since June, 1882; July. s5.l0S,9O0
October. Sa24, 200; November. $780,
600: December. s4,se6.S 800. and jan
nary. "a. 43S. 900. or a total of
S2l ,136, 500 of treasury notes redeemed In
For February and March it Is said that she
has averaged 4,000.0 600 each
month. From this IL will be seen that a
considerable amount of gold can be saved
to the government. ana at the same time
the inability of brokers to obtain gold for
these notes will cut off their most ample
means of obtaining them, as ii is said that
this class of notes have been largely pre-
sented by New York bankers in exchange
for GOLD.
tits said that the continued redemption
of these notes in gold was bound to result
in the driving out of ell the gold. For it Is
apparent that the condition was such that
gold was being paid ont through the medi-
um of treasury notes for the silver bullion
sold. AS a former treasury Official ex-
planned 1t to u reporter, the principle il the
same as though one had q glass partially
filled with water with a layer or surface OF
oil. Ii one should continue to pour IN
water the oil would finally be forced out.
In this case the water represents the silver
and the oil the gold. and the continual
purchase OF the white metal and the giving
out for 1t of gold has brought about this
result.
There is q feeling among some men who
have been prominent In financial circles
that should Secretary Carlisle Issue an or
der stopping this redemption that IL would
approach something of q sensation. but
buOee uO aIc Dcot pOoteu Clutn tDat OObQ-
ing of the kline would result, and still IN
sisu that If it became apparent that Secre-
tary Carlisle was to adopt this course that
the New Workers who have been repre-
sented as trying to push the governments
into m embarrassing position wonId see
that their efforts had been In vain and gold
would again begin to How into the treas
ury. If they are correct IN their surmises
lt will be unnecessary for Dir. Carlisle 10
take any further action.
After the Cabinet meeting a reporter
saw Secretary Carlisle at the Treasury De-
partment but he politely declined to dis
cuss the financial question. n policy he has
held for some time. preferring NOT to fore
cast any action until the necessity for it
arrives.
Several small offers of gold nave been
received from the West. These offers az
gregate less than $500. 600. and will not APP
pear on the treasury for several DAYS.
At Eastern points u slight increase in gold
IL noted. the free gold having increased to-
day f2s. 00G. making the total shown by the
books Of the treasury to-day S65. $50. There
ia said To have been also a slight increase
IN New York. which will not be shown un-
I'll tomorrow. Information received at
the Treasury Department Indicates that
the gold shipments for next Saturday will
not be heavy and there may be none at all.