Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1893-07-20
STRANGE MOVE.
The Action Of the Treasury Exoites
Curiosity.
WHY DOES 1T PAY OUT COLD2
The Washington Star Hints That the
Government Is Disciplining the
Banks for Pinching the
Treasury.

NEW York, July 1s.-Much curiosity
has been shown in banking circles as
10 the cause of the treasury officials
voluntarily paying out gold in lieu of
clearing house balances and for gov
eminent checks over the counter when
some form of currency would have been
more desirable to the payees, Conrad
N. Jordan, assistant United States
treasurer in this city, was questioned
about this and asked for an explana-
ton, especially in view of the fact that
II had been supposed that the govern
ment was DESTROYS of building up
the gold reserve again to the
800, O00 600 limit Mr.. Jordan declined
TO give any reason for the treasury
paying out gold as stated but suggest
ed that IL might be due TO n desire TO
provide for some need of currency at
distant date. lie said IL was not be-
cause the government did not wish TO
issue any more gold certificates, which
Il must do as soon as the gold reserve
Is s100, 900, 900, the theory of the sug-
gestion being that gold is more readily
boarded in that form, the government
storing II free of cost.
From another source IL was learned
that the government has been paying
out gold because IL feared that unless
10 made provisions in time 1t would be
unable TO supply the demands for cur
rency that IL expects may be made up
on IL In q short time for moving the
crops Leaving out the t5,000,000 in
grsenbacks which the government re-
quires to keep on hand for redemption
purposes the United States treasury
only has now about t150, 900, 900 of
greenbacks (legal tender notes. avail
able, counting the supplies at all the sub
treasuries. II, as has been supposed, the
great scarcity OF currency has been
caused by the precautionary measures
taken by banks throughout the country
to fortify themselves during the recent
strinRency, and the currency is In the
vaults OF those country banks, then
there will not be a very great demand
on the treasury for currency to move
the crops; but II, as has also been sug-
Rested, the missing currency is not
locked up in the country banks, but is
boarded by the people, then the United
States treasury expects TO have all 1t can
do TO supply the demand upon IL for
currency during the next few weeks.
Suoh. at any rate, is the explanation of
n responsible person for the treasury
pavinq out gold instead of currency to
the New York banks. The question
whether the country or the people have
been boarding the currency can be
told when n COMPARISON Is made of the
renorts TO the comptroller last week
with their reports six months ago.
THE GOLD RESERVE.
WAsurSeroN, July is.-Heavy clear
ing house payments in New York
caused the gold reserve TO fall lower
than Il has been for several days past,
and s348, $50 less than IL was ON Satur-
day. The reserve now amounts to s9s,-
O59, $50. Currency balance, 500, III, 91s
The Star gives publicity TO the follow
ing statement In regard TO the gold
payments from the United States sub
treasury in New York:
considerable effort is being made
by financial agents here TO discover the
motive behind these payments But
the department is as close-mouthed as
a clam. The explanation obtained
through private sources Is that the de-
partment Is trying to take advantage
of the scarcity of small and convenient
currency for Internal business TO pinch
the banks as the banks have pinched
the government by storing gold
"The banks are greatly In need Of
small bills for current business trans
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