Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1893-02-18
OUR GOLD RESERVE
1t Is Giving Secretary Foster
Very Much Trouble.
AN ISSUE OF BONDS NO REMEDY,

IT,,
While the Yellow Metal Is What Is
Wanted - Senators Discuss Sherman's
Bond Bill, but Fail to Act-Secretary
Foster DIssvows That Protectorate in
the Sandwich Islands - Pension Bill
Passed.
WASHINGTON, Feb. 1S-The treasury sit
nation shows improvement. Heavy re-
ceipts and smaller expenditures have had
the effect of showing gain in the net bal
ance which for the past few days had
dropped down to q dangerously low mar
gin. Yesterday it was about S25, 600, 600, of
which $4,000, 900 was in subsidiary coin and
. like amount in national bank repositories
The margin few days ago was only about
f23 200 600, which taking out the two items
named left the treasury with a very mar
row margin to work on, the aforesaid mar
gin being of @free gold" or gold that could
be drawn out for export without trenching
on the 500, 600 900 gold reserve
Bound to Keep 1t Intact.
According to the policy of the government
which has been uniform as to this par
ticular regardless of the politics of the ad.
ministration, and will continue so to be-
1t seems-this reserve must be kept intact
and the secretary of the treasury has power
to issue bonds to keep it So The financial
rock ahead as viewed by the f1nanciers-not
Of the unlimited free 4125s grain silver dol
lar class-is the breaking into this 300
0oO, 200 in order to supply gold for export;
Tor when gold is wanted for export, as
general thing it must be had or our credit
abroad is gone. So il is that Secretary Fos-
ter authorized the statement yesterday that
the gold will be kept intact at all hazards.
How, he could not say, but he stated with
emphasis that If it was necessary to issue
bonds to do it he would 60 even to that
extreme
Knocked Out by One Little Word.
At present the "free goldn is more than
SS,0OO,O GOO. He said he felt almost certain
that he could reach the end of his term
without having to issue bonds "Even to
issue bonds-say $50 600, 000,n said the sec
rotary, "would not necessarily mean an in
crease in gold to that extent. The law
provides that bonds must be paid for in
coin Silver is coin What is there to
prevent silver or its equivalent being offer
ed for bonds? Nothing. Could refuse it?
No. So, if even bonds were sold would
that relieve the situatiOn2 Not unless an
arrangement based on honor between the
secretary of the treasury and the purchaser
was made and then l would be subject to
all sorts of criticisms The whole subject
Is surrounded by veVations. You may saw.
however, that the gold / receive will be
kept intact, come what may"
Talking 1t Over in the Senate.
And while this question was veXing the
soul of the head of the treasury and he was
l., H..
hash of the bond plan, the senators were
engaged on measure to permit the secre-
tary to sell bonds bearing lower rate of
interest than those already authorized. 1t
was Sherman's 3 per cent bond bill.
Stewart of Nevada made a point of order
againt the bill-which was offered as an
amendment to the sundry civil bill-the
point being that it was general legislation
on an appropriation bill. 1t was in discuss
ing this point that the debate took place
The amendment was finally declared in or
der.
Some Explanation and Criticism
Sherman made one thing apparent-that
the secretary was already empowered to
issue bonds; that these bonds were to bear
interest at ~ per cent for fifteen-year
bond and per cent for a thirty-year bond
His bill made the interest per cent and
the bonds are payable at pleasure of the
government after five years, so that it
simply authorized the secretary to make
what Sherman held would be better terms
than existing law did. Cockrell thought
not, as per cent. bonds commanded pre-
MUM and would sell at higher premium
than per cents. He thought there was
no economy in the bill Sherman intimated
that the price of the present per cents
was no criterion of what new ones would
sell for; but his bill did not prohibit the
treasury issuing 2 per cent. bond if it
could make it pay.
STEWART PROPOSES A SOLUTION.
The Treasury Has Bari" OF Silver
Which 1t Can Pay Out.
Stewart argued that there was no neces-
sity to sell bonds and to buy coin. There
MAR ~ nj, ~, Ia