The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-02-18
lie Did Not Believe the Financial Situation
Was Such as to Justify Fresh Issue
OF Government Bonds
Demand for Gold Largely Fictitious and
the Result of a Conspiracy.
Condition of the Treasury Improving-Mr.
Sherman's Scheme for the Issue OF Three
Per Cents. Discussed in the Senate.
OPPOSED TO ISSUING BONDS.

President Harrisons View Of the Demand
for Goid-Conditfon OF the Treasury.
Special 20 the Indianapolis Journal
WASHINGTON. Feb. 11-Wall streets exc
citement to-day permeated Washington.
News of slump in the stock market and
of threatened panic. accompanied by an
increased demand on the part of rep
resentatives Of New York banking
houses for an issue of bonds. and by
renewed reports of immense ship
ments Of gold. caused the keenest interest
in the intentions Of the Secretary of the
Treasury. This interest was only intensi-
fed by the absence of President HARRISON,
who, putting no credence in the representa-
tions of an impending necessity for the
Issue of bonds, has calmly gone duck hunt
ing. Secretary Foster himself intends to
leave Washington on Monday for Detroit.
1t can be distinctly stated on the highest
possible authority that President Harrison
is opposed to issuing bonds. and that he
believes that the demand for gold ship
ment is artificial and is the result of
conspiracy to force an issue of bonds
which would be taken &C par by the con-
spiring bankers. and which afterward
would command q premium.
Statements have been made both to the
President and Secretary Foster about this
demand for gold which subseq uent eventa
have shown TO be false. Whether deliber-
ately false or not is an open question. Foi
example. it was stated by visiting fnan-
ciers. both at the White House and at the
Treasury Department. that the gold ship
ments during the last three days of this
week and on Monday would aggregate over
SS.0OO.OO0. sum exceeding the total amount
OF free gold In the treasury. Since this
statement was made. however. Secretary
Foster has learned that the ageregate
shipments will, in all probability. fall short
of S3.000 600. If it does not come under two
and q half millions.
ARTIFICIAL DEMAND FOR GOLD.
It is believed that political as we'll as
financial plot underlies the creation of this
artificial demand for gold. The suspicion
10 that certain capitalists who contributed
large sums toward the expenses of Cleve-
lands campaign wish to throw upon the
Harrison administration the responsibility
of buying gold. When President Harrison
left the city on Thursdsy afternoon for
Benjies. Nd, it was reported that he had
backed down" from his position
against bond Issue. and had told
Secretary Foster that it would be
all right to issue bonds and soon it
was announced q bond issue would follow.
Just before leaving the White House the
President was visited Dy two distinguished
New York bankers. who informed him that
there would be no further exchange Of
gold for legal tenders; that they were au-
thoriZed to say for the bankers that the
government would be compelled TO provide
itself with coin without their assistance,
and they gave It as their belief that the
only way out of the dilemma was an issue
of bonds
The President summoned Secretary Fos-
ter and stated that. as he was about
to leave the city for few days
he wanted to restate his position upon the
question at Issue. lie had not. be said.
altered his views. He was yet opposed to u
bond issue. He believed that the condi-
tions were worked mp by designing specu-
lators. and 1t was his opinion that if they
could be made to understand that there
would be no Gonds issued by this admInis-
tration the demand for gold would Immedi.
ately decrease, and the apparent necessity
for bond issue would disappear. The
President stated further that he himself
had no direct control over the subject that
the authority to issue bonds was vested
solely and twholly in the Secretary of the
Treasury: The President. be said. could
only advise; the Secretary had the abeo-
lnte power to act. The only power vested
In the President was in the control of the
Office of Secretary of the Treasury.
The Presidents statement In this psrticu-
lar was significant He undoubtedly in
tended 10 impress the Secretary or the
Treasury with the fact that the latter Of
icer. knowing that an issue of bonds was
not advised by the President, it could be
Msss nisss,s bn, the was ,.s,des;Sss.v dos%ed ad
1t must rest with the ofiioer making
the issue. ana the President of the United
States would be sbsolved. The fact that
the President had thus impressed upon the
Secretary of the Treasury his views, and
had left the responsibility entirely with
the latter. soon became known and those
whose wishes were born of the thought
caused it to be reported that the President
is all there is TO the report. The Presidents
ls unchanged In his opposition to bond
issue.
THE PROPOSED ISSUE OF BONDS.
The action of Senator sherman to-day in
urging his proposition for three-per-cent
bond issue as an amendment to the sundry
civil appropriation bill is interpreted by
many at the capital to mean an effort TO
pave the way for q future issue of bonds.
Several Senators on both sides of the
chamber. including Mr.. Sherman himself.
took occasion in their remarks to state
that they did not believe that any bonds
would be issued under this authority. but
that the mere fact that the Secretary of
the Treasury would have power TO issue
bonds at any moment would of itself check
the artificial demand for gold and put an
end TO conspiracies in Wall street against
the credit OF the government and the sta
bility OF the money market
Secretary Foster authorized the state
ment to-day that the gold reserve 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 go even TO that extreme. AZ
present the free gold Is more than $780,
600. He said he felt almost certain that he
could reach the end of his term without
having to iseue bonds. Even to issue
bonds. say $50 000. co.," said the Secretary.
would no: necessarily mean an increase in
gold TO that extent Thela provides that
bonds must be paid for in
coin. Silver is COIN. What is TO
prevent silver or it's equivalent being Of
tered for bondsf Nothing. Could / refuse
lt! No. So, if even bonds were sold. would
that relieve the situationf Not unless an
arrangement. based on honor sbetween the
Secretary OF the Treasury aud the pur-
chaser was made. and then | would be sub
ject TO all sorts of criticisms. The whole
subject Is surrounded by vexations. You
may say. however, that the gold reserve
will be kept intact. come what may"
Treasurer Nebeker Is quite emphatic IN
his opinion that the governments should
not issue bonds at present. aud said to-day
that Ii either political party issncd bonds
it would be. and deserved TO be. visited
with popular condemnation. He received