St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-04-26
DID NOT FIND FAVOR.
Secretary Carlisle Makes a
Proposition to New
York Bankers.
1t Did Not Suit the Finan-
eieps, Who Make a Coun-
ter Proposition.
After Consideration the Lat
ter Is Rejected by the
Government.
Only About $54,000,000 Act
ually in the Redemp-
ton Fund.

WASHINGTON, April 25.-The net gold
III the treasury this morning, over and
above the s1OO,OOO,OOO gold reserve. Is
100000. This accounts for the gold
taken from the New York subtreasury
for export today; also Tor the gold which
has been offered and accepted from Bos-
ton bankers. 1t does not, however, in
clude the gold which has been offered to
the government from San Francisco and
Roanoke, Va. These amounts will ap-
pear in the statement when the actual
exchange is made. Secretary Carlisle
is much encouraged at what he terms the
patriotic position taken by the Boston
bankers" He took over with him to
the cabinet meeting this morning a
bundle of papers presumably bearing
on the conference of New York bankers
with AsSiStent Treasurer Jordan. At
the cabinet meeting this afternoon Sec
rotary Carlisle brought up the PROPOSE
ton of the New York bankers to sup
ply under certain conditions the treas
ury department with gold. 1t was very
thoroughly discussed, and
Finally Rejected.
What this proposition was is not
known here, as Secretary Carlisle de-
clines to make its terms public. 1t was
not, however, considered advantageous
the government. This was the cul-
minatiOn of several propositions submit
ted, one of which was declined last
Saturday. One was received last Mon
day, which was also rejected, and in
return the secretary made a proposition
to them which they also refused to ac
cept. All negotiations, therefore, be-
tween the treasury department and New
York bankers are off, at least for
the present, and Secretary Carlisle
will look in other directions to
continue to Teplete the treasury gold.
The administration does not desire to
issue bonds, and will no do SO except as
a last resort. That time, i'll their Opin-
ion, has not yet arrived, and if their
efforts to obtain gold are successful,
will not soon be reached. Representa-
tive Wise, OF Virginia, called on the
president this morning, and presented a
petition signed by bankers and BUSH
ness men of Richmond, asking the
president to issue bonds to relieve the
financial situation. The president re-
ceived the petition, but gave no indlca-
ton of what his purpose will be in the
direction of following the suggestions
made therein.
Brought Out by Hall.
A fact not generally known in con-
nectiOn with the gold reserve is brought
out by Representative o. NJ. Hall, of the
ter OF fact" says Mr.. Hall, "there is not
an actual 500. 600, 900 reserve fund in the
treasury, but only about $4,000. 900.
The redemption law of 1875 authorized
the sale of bonds for the purpose of re-
deeming the greenbacks. Under that
law the government sold 500, 10000 of
the bonds. 1t has used in round num-
bers S52, 900, 600 of this fund in redeem
ing greenbackS, leaving in the treasury
S54, 900, 900 of the proceeds of the sale of
these bonds, which by law is specifically
set aside for the purpose of redeeming
greenbacks only. 1t seems to me that
the government has the unqueStiOned
right to use all of the $46,e00,000
in round numbers, surplus over the
fund set aside for the bonds
for the purpose of redeeming the treas
sury notes issued for the purchase of
silver, but | do not see how the So. 000,-
BOO can be applied to that purpose. The
act of 1915 still l0aveS with
the secretary of the treasury the power
to issue bonds TOR the purpose of re-
deeming the greenbaeks, but neither
that law nor any other of which | am
cogniZant gives him any authority to
SSue bonds for the purpose of redeem
ng the treasury notes. | think this is
he meaning of Mr.. Cleveland's and Mr..
JarliSle'S messages, and this is their
position as | gather from their state
nents. 1t is not likely that this reserve
will be reduced to the S54, 600, 900 before
he next meeting of congress, though l
hink there is no need of an extra ses-
zion on this point. While l personally
avor the repeal of the Sherman silver
let, l do not believe congress ID its
present mood will repeal it,"
The Proposition.
New YORK, April 25.-Today was
considered an off day by the SubtrSas
Try officials in this city, as no gold was
for export, and there was less
uSs and furry observable. Briefly
tated, the construction put upon Mr.
JariSle'S proposition to the New York
,ankers yesterday is understood to have
,een this:
He wished to know whether they
would lend the government $50,00O,000
n gold for one year from May l. the
oan to be secured by ten-year govern
nent 5 per cent bonds to be issued at 11715
which would be equivalent to a three
Der cent bond. The terms of this prop
)sition were that the bonds were to be
placed on trust with the secretary of
he treasury or the sub-treasurer, and
Is the banks turned in gold certificates
we're to be issued TO them therefor. At
he end of the year, the government
vas to have the option of paying off the
Dan in gold, with per cent interest.
# the government could not pay the
Oan in gold at the end of the year, then
he banks were to surrender their GER
ificateS and take the amount of bonds
% which they were entitled at 11715.
The answer of the bankers to the
was that their gold was
held in their reserve required by law,
and that if surrendered for bonds, which
were not current money, it would have
to be replaced by other money, which
would mean that they would
Have TO Call in Loans