The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-25
FOSTER'SNEW BONDISSUE
THE OBLIGATIONS PRINTED, BUT
NOT APTIO BE PUT OUT.

President Harrison Determined to
Saddle the Responsibility on the
Democratic Administration Only
Two More Gold Exporting Days to
Be Tided Over by the Present Ad-
miuistra ton.
WASHINGTON, Feb. 24.-There will be no
issue Of bonds this week or next to replenish
the gold reserve if the necessity can be es-
capped. This was the decision reached at the
cabinet meeting to-day, and it was the
opinion Of most OF those present that the ad-
ministration could worry through the week
without the humiliation OF increasing the
PUBLIC debt. The news received at the
treasury department this morning indicated
that less gold would be taken Tomorrow
than was expected from the dispatches re-
ceived yesterday. II the amount taken is
less than 100000 it will be al
most offset by the small sums
which are drifting into the treasury from
day to day, as a result Of Secretary Fosters
skillful management. The latest statement
OF the gold reserve places it at SlO4, ,347, ,794 =,
which leaves a margin of $4,000, 900, before
the amount 80 long set aside for the re-
demption of the greenbacks is reached.
This, it is believed, will be sufficient to
cover two more sailing days, Saturday of
this week and Tuesday of next week. Mr.
Cleveland will take the oath of office at
noon on Saturday week, and upon his
shoulders will rest the responsibility for the
state OF the treasury after that hour.
AFTER US THE DELUGE.
After us the deluge" was never more
seriously spoken than by the members Of
the outgoing administration who are anx-
ious to keep good President Harrison's dec
laratton: This is a bond-redeemlng, not a
bond-lssuiug administration. The Presi-
dent is exceedingly anxious to get through
the last week of mis- administration without
an issue of bonds, but he has practically
told Secretary Foster that be will leave the
matter to be decided between him and Mr
Carlisle. A suggestion which has been
several times discussed at the treasury
department is the refusal to pay
gold for the treasury notes
issued under the Sherman act. The object
of such refusal would be to make it more
difficult to obtain gold from the suo-treas-
ury at New York. The treasury notes aud
the old legal tender notes are the only means
of drawing the free gold from the treasury
and If gold redemption of the new notes
was cut off, the supply of the old legal
tenders in New York might soon be eX-
hRusted. The payment of gold upon the
presentation Of gold certificates is not OBJ
jected to by the treasury officials, because
such payments do not affect the gold be-
longing to the government, but are only a
reduction OF that which is held on deposit
as trust fund
A BOND AGREEMENT.
Secretary Foster in anticipation of the
a ff,.
in order to maintain intact the hundred
| million gold reserve has already, it is
understood, made all agreement with
Drexel, Morgan g. Co. of New York as
| representatives of a syndicate, under which
| they agree to take $685. 900, 600 of4 per cent.
bonds at such premium as would make
the actual interest TO maturity per cent,
the bonds to be redeemRble in five or ten
years, paying for them in gold in either
New York or London, the obliga-
tion to become binding when
ever the stock of freee gold
is exhausted. The contract. which appears
| as yet to be informal. although Secretary
Foster has had the bonds printed whichsar
provided for, is understood 20 be a continu-
ing one which will serve under the next ad-
mInistrstion as we'll az under this, and
therefore is supposed to have been assented
TO by Mr.. Carlisle. It is supposed that he
was induced to give consent by the consid =
GRAFTON that the House would not pass the
Sherman amendment to the sundry civil
bill providing for a per cent. 5-year bond,
aud that therefore the contract was che only
means of providing for a bond at a lower
rate and a shorter term than the issues pro-
vtded for in the resumption act.