New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-13
BANKS GROWING RESTLESS.
THEY WANT TO KNOW THE TREASURY
POLICY.

FORAGE CERTIFICATE BILIl-HoW sECRE-
TAEY CARLISLE HAS BEEN HELPED
TIE BANKS UNWILLING NOW TO
SUPPLY GOLD FOR EXPORT
WITHOUT AN UNDER
STANDING OF AID
MINIsTRATION
FINANCES.
1t is probable that a; early date the Secre-
tary Of the Treasury will be forced 10 SHOW ms
hand" with regard To the financial policy OF the
Administration to lose the support when me
New-York banks have given to him heretofore in
order to prevent an open confession oil the IN
so.vency of the National Treasury. The news
from Washington that the Committee on Coin
age. Weights and Measures Of the House OF
REPRESENTATIVES had voted favorably TO report
the Bland biz for The issue of over S1jOO0OOO silver
certificate based on what is called the "seignior-
age" on the silver bullion now in the Treasury
vaults has brought many bankers TO the con-
cusion that an issue must be joined affecting The
relations of the banks with the Treasury Depart
ment The bank presidents are loath to speak
publicly on the situation. but there is no lack of
unanmty IN their opinion that Mr.. Carlisle must
speedily announce what his financial policy is
to be.
To appreciate the situation it must be renlem-
bered that only by the support Of the York
banks has the Secretary Of the Treasury been
able 10 prevent more serious depletion OF the
gold balance and the total cash balance of the
Treasury than has already occurred. On No
vember Oast Election Day. Mr. Carlisle visited
this city. and Conrad ~ Jordan. Assistant Treas
,irer of the United States at New-YOrk gave a
dinner at Demonicos to several prominent bank
vic br he "A
better understanding with the Secretary. Mr.
Carlisle did not attend the dinner. but he came
to Demonicos later al Mr. JOrdan's urgent solicit
tation. 1t is understood that on this occasion Mr..
Carlisle agreed that in return for the assistance
to be given by the New-York banks in preserving
the Treasury's gold reserve he would abandon
the scheme of attempting TO increase the paper
obligations OF the Government by using the
"selgnioraee" on the silver bullion holdings SO
far as anything unofficial or PERSONAL can 90, Mr..
Carlisle was considered to have given a distinct
pledge The astonshment and Indignation of the
banking community when. in his report to Con-
gress on December %. Mr.. Carlisle suggested the
utilization of the ''seigniorage and announced
that he had ordered the minis TO be prepared for
coming the silver bullion was fully described by
The Tribune at that time The Bland PROPOSE
ton. now to be launched in Congress. for an
immediate issue Of certificates based upon this
'seigniorage' yet unavailable. is regarded by
bankers as only step further IN line with the
Secretary's suggestions 10 Congress.
HOW HELP HAS BEEN GIVEN
The help given by the banks to the Treasury
in the last two months has consisted of liberal
PAYMENTS of gold for customs dues in lieu Of
Treasury notes or silver certificates. and in
what is virtually a time loan TO the Govern
of mint
lated currency An even more important moral
support was given to the Government when
heavy gold exports We're threatened by the
tacit agreement Of the principal banks 10 sup
ply al least 200O0.000 gold out of their own
Golfers FOR this purpose. thereby relieving the
TreasUTy's gold stock of that possible drain In
fact several millions Of gold exported in No
vember were furnished from bank vaults. The
Treasury has been assisted in preserving its
cash balances by the practice OF the banks IN
accepting a receipt payable in ten days. Tor the
mutilated currency turned into the Sub-Treas-
ury for redemption. instead OF demanding IN
slant payment allowed by law. The banks
might seriously embarrass the Treasury
operations by enforcing their rights on the
redemption of mutilated notes. but Of course
there is disposition anywhere to take such
action. The Sub-Trcasury yesterday received
$500 900 mutilated currency for redemption, be-
ing the largest amount ever received in one day.
The average receipts in the last four days has
been s72O,oo0 day. while normally the receipts
are seldom more than 100000 in one day. The
passing Of the holiday season. which calls for
the use Of almost every available means of
circulating medium. is now bringing back to the
Treasury the ragged currency that passed mus
ter with everything at Christmas time.
The effort of the banks 10 return gold TO
the Treasury as fast as possible is defeated by
the continued excess OF Government eXpendi-
lures over receipts. This is shown by the ten
day statement of the krds Of money In which
customs payments have .een made. Compared
with the statement Of the previous ten days
there decrease Of IA per cent in gold
coin. of 90 per cent in gold certificates, and Of
So per cent in United States notes Gold legal
tenders. and an increase OF per cent in silver
certificates and of 90 per cent in Treasury
notes The proportions Of payments now are:
Gold coin. 26G per cent; silver coin, o.; gold GER
tiiicates. %; silver certificates, 59.1 United
States notes 81. and Treasury notes. S3 per
cent.
ATTITUDE OF THE BANKS IMPORTANT
The recent advance Of foreign exchange to
near the gold exporting point makes the attitude
Of the banks toward the Treasury Of vital mo-
ment. The weakness of the exchange market
yesterday gave some relief from the fear that
the European demand might develop soon. But
bankers believe that only because OF the de-
cline in interest rates abroad was the revival OF
an effiux of the yellow metal prevented The
drift of American securities held in Europe
TO this side of the Atlantic continues. and this
international movement of securities seems
largely to Offset the recent excess Of American
exports over imports. Gold frequently goes
abroad in the winter. and in the spring there il
on inevitable movement OF this nature. The
New-Yor banks feel that they are not bound
to meet the normal demand this year unless
confidence is given in the character of the finan-
ciai policy OF the Administration. so sadly
shattered by the course OF Secretary Carlisle
IN the last year and 10y the indications of a
new outbreak OF silver imitation in Congress.
which has gone unchecked. even if 1t may not
be said to be encouraged. by the Secretary Of
the Treasury. An issue of Government bonds is
strongly favored by the financial community
here. not merely because it would restore con-
fidence in the solvency of the Treasury. but
because by hardening rates for money II might
tend to offset the attraction Of capital TO Europe
where low interest rates now prevail
There were some prominent bankers who were
to speak publicly on the action Of the
House Committee on Coinage yesterday. Motives
OF policy may have dictated this silence. J.
Edward Simmons. president of the Fourth Ma
tional Bank, said II believe this to be a very
unwise measure The use of the silver bullion
seiCniorage in the form Of certificates is a most
Insidious and dangerous kind Of imitation. The