New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-17
TILE TREASURY GOLD.

THE TREASURY GOLD.
Secretary Carlisle gives the country notice
that the bullion fund is about to be used
for the purpose to which it was devoted. His
direction to stop further issues of gold GER
iiicates is apparently in pursuance of the law
which provides that the issues OF such certifi-
Gates shall be suspended whenever the amount
of gold coin and gold bullion in the Treasury
reserved for the redemption of United States
notes falls below 500, 900. 900" and in Il
certain sense this has been in fact for some
days. The gold certificates technically out
standing, S116,44O,9S9, whether in the Treas
ury or not. are all treated in Treasury accounts
as demand liabilities against which gold must
be held and if that amount Of gold were
deducted from the S213.0SGI21 now in the
Treasury, the remainder reserved for the re-
demrtiOn of notes would be less than 81 co.,
$1,000. But it is supposed that the Secrc-
taiy has information OF Withdrawals for orders
which reduce the amount of gold held below
the above figure which was reported Oh sat
urday as being held according TO the latest
statements by mail from the Sub-treaSurles.
1t has been a most absurd and mischievous
blunder to treat this exact amount OF hun
which the Treasury could not pass without
peril. Financiers who have fosteIc1 that notion
would be responsible if any announcement con-
sequences should follow the use Ct some part
of the bullion fund in the redemption of notes,
for the currency and the country are really
Just as safe for all practical purposes with ninety
nine millions in the Treasury as with a hundred
millions. II million of notes be redeemed
and added to the stock lying in the Treasury,
its demand obligations are reduced by that
amount as well as its cash on hand. OF course
there is somewhere a point below which the
Treasury reserve cannot be reduced without
causing alarm. and possibly a rush t. get gold
for notes. but there was never any reason for
fixing that point Ct danger at the full limit Of
the bullion reserve required by law.
If the free Use of this reserve in redemption
of notes does not speedily allay any aEpichen
sion that may exist about the present con-
dition of the Treasury it will be because OF
this mirhievOus and false notion regarding the
function of the reserve At present there seems
TO be no reason TO suppose that practical bust
ness men or bankers are going u lose their
heads because the Treasury has lost small
fraction Of its gold 1t has been often said
that ranics which are expected never come
to Americans. The people have been watching
for months the gradual outgo Of gold, and won
dering what would happen when the reserve
should go below hundred millions, and for
that very reason it would be rather strange
if anything should happen.
Tho question Ct practical importance, OBJ
viously. is whether public confidence in the
ability and determination of the Government
to maintain geld payments has been disturbed.
If so, some people will prcsen; a few millions
Ct notes for redemption, and when the Treas
uiy gives them the gold they will hoard it,
But then will come the question whether the notes
Withdrawn from circulation will not be wanted
in use, ard wanted 50 much that people will
gladly take them instead Of less convenient
geld coins Only few weeks ago several most
capable bankers voluntarily surrendered gold to
the Treasury in order TO get notes. OF which
they were in need. II il certain that a sim
liar demand for more notes would appear be-
fore any large amount Of them could be with
drawn from use unless there should be deveI-
oped a general belief that gold payments could
not or would not be maintained.
1t is MT believed in the business world that
l'fe>lucnt NlcNclaHu anu "tcrttiIA NdIIisic dIc
either unwilling or unable 10 maintain gold
payments. Indeed, it is the almost universal
impression that large sale Of bonds will be
made if it ever seems necessary. and can be
effected at any time, and that it will Danish
all doubts at once. While there are reasons
to queticn the wisdom Of that step, the prev
alent belief that it would be effective is strong
evidence OF public contid ance in the ability Of
the Government to LAY gold No one really
doubts that the United States can borrow
81 90, OOO, 900 without difficulty. But it might
never have to do 50, and in case OF need would
probably do 50 on better terms and with better
effect if it should first pay off part of its out
standing notes with the cash reserved for that
purpose.
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4 SOUTHERN JUDGE ON SECESSION.