Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-11-19
Treasury officials Appear to Be Con-
fident bf Its Success.
THE DRAIN ON THE GOLD CONTINUES
Trust Companies Interested in Pre-
serving tho National Credit.
THE REJECTION RESERVATION

Notwithstanding the heavy drain on the
government stock of gold for evident use
In the purchase Of the new 8 per cent
bonds. the officials Of the Treasury Depart
ment express the utmost confidence in the
success Of that loan in replenishing the
gold balance. The total amount Of gold
withdrawn from the subtreasuries since the
cell was issued Is s.. rs, 900. The names of
the banks and brokers who made recent
Withdrawals at New York are given as fol-
lows: Central National Bank, $4,000; Wat
son Brothers. 100000; Western National
Bank, on account Of Shawmut National
Bank. Boston. 100000; Third National
Bank. on account Of Shawmut National
Bark, Boston. $3OO,OOO: Southern National
Bank. $4,000; Central National Bank, $780,
OOO Asiel q Co., $1,000; Buttrick & ELI
man, S2OO,OOO NV
The Demand to Continue.
1t is predicted that the demand for treas
ury gold will continue up to the day set for
the opening Of proposals, Saturday next.
A high official of the department says that
such Withdrawals may reach $l4.OOO,OOO,
but probably will not aggregate more than
s1O,OO0,OOO. The apparent equanimity of
the officials on this subject is accepted by
some Investigators as an indication that
the department has assurances from the
big trust companies and moneyed institu-
lions of New York that they will subscribe
for the entire loan of $J0OO0,OOO without
intrenching materially on the governments
gold stock.
Interest of Trust Companies.
These institutions are naturally interest
ed in maintaining the national credit. and
may be depended on to act in concert to
prevent financial panic, which many
financiers believe would result from the
depletion of the national gold reserve and
the consequent inability Of the govern
ment to meet its obligatio in standard
money. In case they wanted to attack the
government gold fund they could do so
just as Well without the pretext Of buying
bonds. The government cannot consistent
ly refuse to exchange gold for legal tend
ers or treasury notes, without practic ally
Forcing that coin to a premium, and there
is no law that compels the holders of the
gold to buy bonds. In other words, they
can easily get the gold and hold 1t for any
use they think proper. 1t will, therefore,
be seen that 1t whl be better even for tho
government to supply the gold for the pur-
chase of its bonds, rather than that such
gold should be diverted to other channels.
The Right to Reject.
Secretary Carlisle has reserved the right
to reject any and all bids for the bonds and
Will undoubtedly ,allot, them in a way best
calculated to accomplish the purpose Of
the loan. viz. the replenishing of the treas
ury gold reserve, In case the large gold
holders do not come to the aid Of the gov
eminent and release sofhe of their own gold
hoardings the loan wD undoubtedly be a
practical failure 80 far as the increase. of
the reserve Is concerned 1t is confidently
asserted, however,, 'tfat the government
will gain at least"s4O, s6O, 600 in gold by the
transaction. and that 9the reserve will be
increased to very near, If not above. the
$lOO,OOO.0O0 point. ~ . .--.-'. -.-.-
-- - Withdrawals Today.
The confidence In the! success of the loan
as a means of getting gold, as above in
dicated was somawhats shaken later in the
afternoon by the receipt of telegram
from the assistant ueasIrer at New York,
saying that, s1.6st.OOO in gold was with
drawn from the subtrexsury today by five
banks, one of which,, the Third National
Bank, of which ex-Controller Hepburn
is president, took SlUOO,OOO. Today's with
drawals make total of $3,05O,OOO In gold
taken from the subtreasuries, presumably
to buy bonds.