The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-04-23
Possibility that Congress Will BeCalled
Soon 10 Consider the Situation.
New York Bankers Determined to Force an
Issue of Bonds-The Business Outlook Dis
cussed BY the Pennsylvania's President.
RESE RIVE FUND INTACT.

depleted yesterday, 10 intact to-day. offers
sggregating nearly 100000 having been
received and accepted by the Secretary
this morning. Secretary Carlisle said he
did not think, in justice to those who were
disposed to supply the government with
gold, that their names should be published,
and for that reason alone he did not
think 1t wise to state names and
places from which the offers came.
He was feeling quite good over
the fact that offers aggregated q
sufficient amount to make the gold reserve
intact and leave little free gold in the
treasury. He expressed the hope that it
would continue to increase so that he
would be able to meet any demand made
on the treasury for gold for export on next
Tuesday. He stated that the treasury
would continue the policy now being pur-
sued of saying gold for the treasury notes.
and at an early hour yesterday, when IL
seemed that the reserve would be encroached
upon, he directed the subtreasury at
as heretofore. He was, therefore, at q loss
to understand how any uncertainty pre-
vailed in the public mind as to the action
of the Treasury Departments in the prem
ises. That such uncertainty still prevails,
however. is evident from the numerous
kilograms being received by President
Cleveland and Secretaries Carlisle and La
mont, and from the further fact that sew
eral prominent New York bankers are here
to-day for the purpose. II possible. OF get
ting better and clearer knowledge
of the financial situation from personal in
terviews with Cabinet officers and treasury
officials. Ii is interesting to note In con-
nection with the gold situation how, dur
rv<v Hhn nt fAr fR0 hnn
gradually lost gold. On Jan. 81. 1880. the
net gold in the treasury was S194, ,000. coo; on
JAM 81. $780, S177, ,00O. 900; Jan. 81, 1891. SAL.
100000: Jan. 81, 1892, Sl1S.000 coo, ana on
Jan. 81. 1893. SlOs.OOO.OO0.
100000 IN FREE GOLD.
When the day closed the Treasury De-
partment had to Its credit slightly over
300. 900 free gold. 1t is expected that this
will be increased Monday as there is dis
position shown by Western bankers to help
the treasury swell its gold balance. Some
banks in New York, too. are stated to have
turned In gold for greenbacks. There is
q better feeling temporarily at least.
and the fact that no bad result has
occurred by dipping into the Rreenback
gold reserve leads to the belief that none
will occur IL it Is found necessary to repeat
the proceeding. 1t is anticipated here that
large shipments of gold will be made next
week. In case the shipments are made
there IS nothing to indicate that Secretary
Carlisle will not do as he did yesterday
the %has esd tss ue 5S meet SoY M
of the treasury may be regarding
finances is still matter of conjecture for
q definite course has not been decided upon.
The department. will wait for develop
believed, will be fully sble to meet them.
The administration feels confident that the
present financial furry IS temporary one,
based on an exaggeration OF conditions,
and they have no fear that there will be q
panic or that national credit will be i'm
The expenditures so far this month, have
been heavy, exceeding the receipts by over
SO. O00, 900. This has had the effect of re-
ducing the net cash balance in the treas.
this amount $40 6O0. 600 is In subsidiary ooin
and S1l,0O0.0O0 IN national bank depos-
itaries.
The exaggerated stories which gained
circulation last night and were widely
published to-day. to the effect that at the
Cabinet meeting during the afternoon
President Cleveland and Secretary Car
Isle had had q serious misunderstanding.
which might lead to the resi- On alton of Mr..
Carlisle are officially denied by members
Department.. The relations which exist
to-day between Secretary Carlisle and the
President are as cordial as they have ever
been.
THE CABINET DIVIDED.
The most reliable information as to the
position of the President and ME-. Carlisle.
and what occurred at the Cabinet meeting
yesterday, is that there existed between
them simply difference Of Judgment as to
which policy was the better one to be fol-
lowed. Secretary Carlisle believed that
the law justified him stopping the payment
of gold for the treasury notes of 1890. and
considered is best to follow this course and
keep the gold reserve intact AS far as
his interpre station of the law Is concerned
he was upheld in his opinion by
Secretary Gresham and Attorney general
Olney. At the same time President Cleve-
land pointed out that there was nothing
which compelled the government to keep
the gold reserve in It's entirety, except for
the redemption OF the legal-tender notes.
It then became not question OF law and
discretion. but of policy, and it was finally
decided that the gold reserve should be
utilized TO meet the demand for gold ship
ment. The stories of trouble In the Cab
met are unfounded.
One result of the gold scare has been to
cause good deal of quiet discussion among
tho statesmen left at the capital of the
necessity of an extra session of Congress.
1t Is undeniable that some of them feel that
eucn o SESSION Is pIODaDlo, anu at al carrier
date even than that predicted by Vice
President Stevenson. namely, September
next. That date was fixed In contempt
tion of the necessities of tariff legislation.
but In the treatment of such great financial
questions as are now before the adminIstra-
tion 1t is argued that the element of time
becomes of superior Importance. There is @
question as to the authority of the Secre-
tary of the Treasury to Issue bonds under
present circumstances. and although the
decided weight or opinion lies in favor of
the proposition. 1t should also be borne in
mind that if the Secretary decides in the
affirmative he IS still bound to issue only
bonds of the old rates. namely. four, four
and-a-half and fve-per-cent. instead of the
three percent. bonds it is said TO be pos
sible to float.
In this connection. and as evidence of the
Secretary's feeling In this matter. 1t may
be recalled that on Feb. II last, when Sem
ator Sherman sought to secure the inclu-
sion in the sundry civil appropriation bill
of q paragraph authorizing the Secretary
to sell these three per- cent. bonds for gold,
he said that he. with other members of
the finance committee of the Senate. had
consulted with Mr.. Carlisle. Said Sem
at0r Sherman then: while he Carlislel
hopes and expects that no contingency
will arise in which he will be called upon
to sell bonds to maintain the reserve r.Gw
required by law, he thinks the very fact
or having the power TO sell q three-per-cen1
fve-year bond would probably enable him
TO avoid the necessity OF seliing