The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-05-05
The GOLD sIrUATIoN.
Plan Of New York Bankers to Protect the
Treasury Reserve.

Plan Of New York Bankers TO Protect the
Treasury Reserve.
NEW YORK. May 4.-Slnce the conference
between Secretary Carlisle and a dozen
leadiDg bank presidents on April q, sew
eral stories have been told OF plans which
had been proposed whereby the gold in
the treasury would be increased. 1t has
been said that several plans to this end
have been under discussion by the
bankers since the Secretary went
away, and that of them viii
be eventually agreed upon. This is not ex-
Hctly the case. The basis upon which the
banks are willing to put out their gold is
not acceptable TO the Secretary OF the
Treasury. Secretary Carlisle has ideas Of
his own regarding the protection OF the
gold reserve. and has intimated To
the bankers the plan which he would
Ike TO see put into effect The
bankers are very reticent about
speaking OF the plan which would please
the Secretary. as IL Is not exactly TO their
liking But from a member OF one of the
leading banking firms In this city who has
been July conversant with all that has
taken place regarding the gold situation, n
synopsis of the plan to protect the gold
reserve, which plan, 1t Is said, would be
acceptable to the Secretary. was obtained.
The banker from whom the information
was obtained said:
The situation Is not as bad as it appears.
The fear has passed away OF u payment by
The government OF Its currency obligations
otherwise than Dy the gold IN its possess
sion AS reserve. The real difficulty is in
the drain from the banks OF their reserve
lreduced now To about az. 000. 0O0l by their
coIn-shlpDInR customers. The effect of the
payments made into the treasury ia TO be
seen through the contraction caused by the
payments to the government of legal ten
der currency Tor gold. The gold Is shipped
abroad ana lost TO the community, but the
legal tenders are paid into the treasury and
cannot again be put into circulation
except through the slow process of
disbursements made by il. As, at the
same time, there Is an inward and
outward flow from the treasury. the loss
or gain TO the banks on this head
may he measured by an inspection of the
receipts and disbursements OF the past two
years. lt viii be seen that there Will not
be a loss or gain to either side of say S.
0C0. 600 per month based on the s., COO COO
deficit last month, whereas by continual
shipping of gold tho treasury. or probably
the banks. may lose S3.oOO,000 per week.
This loss they cannot bear. and the result
will be- If the movement takes place, that
the present reserve will disappear and be
locked up in the United States treasury.
and the banks will be reduced to their old
expedient of making settlements with the
clearing house IN clearinghouse certifi-
Gates based on mercantile and marketable
securities. The plan which would
obviate this situation would be
for the banks To recognize this
fact and pay out to their customers
and in part settlement of their balances the
Brtlcle which they now hoard-go!d-whIch
does not involve the involuntary boarding
of greenbacks by the treasurer aud TINS
pat In active movement the larger part of
their present reserve. Would 1t not he
well for the banks said the banker. Ito
meet and take tins suggestion into
serious consideration aud thus re-
lIeye the whole situation st oncef
Iiy thus putting their boards Of gold at the
service of the community they wonld save
the losses caused by the continued string
ency to the mercantile community and re-
lieye the pressure of the continual sales at
the stock Exchange, which latter help.
however. Ie wholly unfortunate to the help
TINS afforded TO merchants or the whole
country by adopting this plan."