Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-02-13
GOLD CERTIFICATES
Mr. Carlisle Likely to Recommend
Suspension of Further Issues.
WHAT THE Law REQUIRES As TO THEM
A Favorable Time to Accomplish
Their Abolition.
B EN- EFT TO BE DERIV ED

The suspension of further issues Of gold
certificates on private deposits of geld is
likely to be recommended to Congress by
Secretary Carlisle before the close Of the
present session. No gold certificates have
been issued since the middle of last April
under the provision of the act of July IL.
1889, which directs THAT the Secretary of
the Treasury shall suspend the issue of such
gold certificates whenever the amount CT
gold coin and gold bullion in the treasury
reserved for the redemption of United States
notes falls below one hundred millions Of
dollars" The gold reserve fell below the
point named few days after Secretary
Carlisle ordered the issue of gold certifi-
Gates suspended and the issue has not been
resumed although the reserve exceeded
SlOOoOO.OOO during a part Of August and
exceeds the amount again, now that the 5
per cent bonds have been paid for.
Justified In Continuing the Suspension
Secretary Carlisle feels justified in con-
tinuing the suspension while the reserve is
not much above $1OOOO.O 900. because it may
nuctuate around that point and make the
issue of certificates precarious and unwise.
He and Assistant Secretary Curtis are will
ing to go further and recommend the re-
peal of the mandatory provision that they
shall issue such certificates on private de-
posits of gold. Secretary John Sherman
recommended the suspension Of the issue
or gold certificates on the eve of the re-
sumption of specie payments, upon the
ground that the restoration Of the paper
money to parity with gold removed the rea-
son and the necessity for any distinction
In the form of the paper obligations issued
by the government. Treasurer Gilfllan,
however, succeeded in keeping the gold
certificates nd how hou haa ts
sued for a number Of years. until their sus-
pension last April. The law requires actual
coin to be held. dollar for dollar, again st
the certificates but during the recent drain
of gold the amount Of coin has been reduced
and the mints have been set to coining I'd
bullion; to enable the Treasury Depar ,ment
to comply as far as possible with the law
A Favorable Time.
The present is considered by those VINO
favor the abolition Of the gold certificates
as a favorable time to make the move
ment The proposal would probably have
caused uneasiness during the panic Of
last summer. because 1t might have been
misunderstood as a proposal to confiscate
the gold against which the certificates
are held No such step as this would be
proposed In any event, but provision would
be made that the certificates should be
Cancelled and Destroyer as fast ,as they
were IeCeiVcU Dy tne treasury IN current
transactions and the gold covered into the
general treasury balance. 1t is believed
by the advocates of the plan that the abo-
lition of the gold certificates would greatly
increase the general gold fund Of the gov
ernmeEt
Gold In the Treasury.
The gold in the treasury when the export
moven ent of last spring began was S219,-
SOS.3O3 on March 20. but only $1O6, 575, 5S4
belonged to the government and the re-
mainder was held as a private deposit
against certificates. The loss Of $2O,OOO,-
O0O. which occurred up to May 81, would
have created no alarm If the entire store
Of gold In the treasury had stood to the
credit Of the government, but nearly $12,-
100000 was taken from the government
gold and the reserve dropped to $95. .O4S, AGO.
1t Is believed that a considerable part of
the gold held against certificates would
drift into the general gold fund of the gov
ernment, because of the expense of carry
ing 1t by private depositaries, II the govern
ment ceased to assume the cost and the
risk and abolished gold certificates