The morning call., 1893-04-26
GOLD FOR BONDS.
Bankers Trying to Force
an Issue.
CARLISLE WILL NOT YIELD
The Government Declines to Play
Into the Hands of the Wall
Street Plutocrats.
Special to TUE MoRNINo CALL.

WASHINGTON April 25.-At the Cabinet
meeting this afternoon Secretary Carlisle
brought up the proposition made by New
1ork bankers 10 supply, under certain con-
ditiUnS. the Treasury Department with
gold. 1t was thoroughly discussed and
finally rejected. What this proposition was
is not known here as Secretary Carlisle has
declined to make its terms public. 1t was
not, however, considered advantageous 10
the Government.
This is the elimination of several propO-
sitiOns submitted, one of which was de-
clined last Saturday. A counter PROPOSE
tion was at that time made by the bankers
to the Secretary Of the Treasury which was
received last Monday. This was also re-
jeeted and in turn the Secretary submitted
a proposition to them which they also
refused 10 accept.
All negotiations, therefore. between the
Treasury Department and the New York
bankers are off. at least for the present, and
Secretary Carlisle will look in other direc.
tinns for q supply of gold. The administra-
tiOn does not desire to issue bonds, ana will
not do so, except as last resort.
The net gold in the treasury this morning,
over and above S100,0O0,00G gold reserve. is
100000. This accounts for the gold taken
from the New York suU-treasury for
export to-day; also, for the gold accepted
from the Boston bankers. 1t does not,
however, include the gold offered from San
Francisco and Roanoke. Va. These amounts
will appear in the treasury figures when The
actual exchange is made.
Secretary Carlisle is much encouraged al
what he terms the patriotic position taken
by the Boston bankers"
The President has decided not TO accept
the designations of the delegates to the
international monetary conference. The
commission will therefore remain un-
changed unless some members decline to
serve. The conference will meet May 80
and the question of a further postponement
will rest entirely with its members.
New YORK, April %. - Carlisle's propo-
siton to the New York bankers yesterday
is understood 10 lie this: He wished to
know whether they would lend the Govern
ment $50, 100000 in gold for one year from
May l, the loan to be secured by ten-year
Government per cent bond. TO be issued
at 117R, which would be equivalent to per
cent bonds.
The terms of this proposition were that
the bonds should be placed on trust with
the Secretary Of the Treasury or the Sub
Treasurer. and as the banks turned in gold
certificates were to be issued TO them there
for. At he end of year the Government
was 10 have the option Of paying off the
loan in gold with per cent interest. If
the Government could not pay the loan in
gold at he end of one year then the banks
were TO surrender their certificates and take
the amount of bands to which they would
be entitled at llTb.
The answer of the bankers to this propo-
sition was that their gold was held in re-
serve, as required by law, and if surrendered
for bonds not current money il would have
TO be replaced in other money, which would
mean that they would have to call in loans
TO equal that amount The result would be
very stringent money aud, perhaps, a panic.
What The bankers offered to do was sub
stantially this: They offered to turn ever
$50, 100000 in gold to the Treasury Depart
mpnt if it would issue in exchange certifi-
Gates or notes bearing 21a per cent interest.
which could be counted in the reserve and
be used in the settlement of balances at the
clearinghouse the same as money, and
which would be received for balances due
the Sub-Treasury and be reissued in ex-
change for greenbacks or legal tender notes.
The certificates could be made the same
as the oldclearing-h certificates issued
against cola teral, which, in this instance,
would be gold.
The Wal-street Journal prints the fol-
lowing from an authoritative source: THE
Governments proposal is to borrow fifty
millions. The terms arc unsuitable. There
may bs further conference if Secretary
Carlisle comes to town, but the New York
banks will wait until they are invited to
meet the Secretary. The bond suggested is
neither fish, desh, fowl nor good red her
ring There is really nothing in the situa-
ton at present except Cleveland's state
ment as to the status OF the treasury notes.
This has given relief. Beyond this moth
iag has been done"
Russell Sage has been seen and spoken to
in connection with the monetary question.
He said. The influence of CleveIand's
statement will be felt, not alone in this
country, but abroad as well. He has adopt
ed the right course and will succeed in it,
in my Judgment. l believe 75 per cent of
the Republicans will stand by him in the
position he has taken. as well as the more
conservative part of his own party. l eX-
pect TO see the situation gradually improve
from now on"
The steamship Trave, which sailed for
Europe this morning, took out S., 400, 900
gold and S99.2OO silver.
LONDON, April 25.-The Posts London
dispatch says: The American market has
taken distinct turn for the better. Presi-
dent Ceveland's measures are relied on TO
POSTPONE a crisis, as the European gold de-
mand is apparently exhausted. Consos are
easy. in view of the expected issue of
United States bonds.
TORONTO. Ontario, April 25.-The city
banks will accept United States silver GER
tihcates only at a discount of l per cent.
The banks take ordinary American green
backs at par from customers, but will not
accept them at all from strangers. Business
houses have placed 4 discount of per cent
on all American bills