Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-08-06
THE .COUNTRY'S FINANCES
Difference Of Opinion Over Necessity Of
-..-. Bond Issue.
Growth of the Gold Reserve and Its
Present T0tal-COnndence In
the Government.

Although treasury officials will not admit
that there r. airy probability Of smother
issue Of bonds. there is not much doubt
that they are seriously Considering ways
and means for the protection Of the sold
balance now at the lowest point it has ever
reached. 1t Is said to be the opinion of the
President and Secretary Carlisle that the
situation does not furnish any just appre-
hension, and that better times confidently
may be expected soon. From this point of
view 1t is argued that the passage Of the
pending tariff bill is sure to result in a
prompt and general revival of business and
that In consequence there will be a large
Increase In the government revenues. Re-
ceipts from customs. which for many months
past have been gradually growing less. 1t is
asserted will show a marked Improvement
from the very first. and will continue to In
crease until normal conditions have been
reached. 1t is contended that, notwith-
standing the fact that the gold reserve has
fallen to S2,0OO000, the government is
really far better able to meet its obligations
today than 1t was just prior to the February
bond issue. On January ], 1894, the net
cash balance In the treasury was only
s., iS3, 955, while today il is in excess Of SIS,
O00.OO0 and the officials observe with salts
faction that our own people have not, 80
the governments ability to meet every
emergency, and pay every obligation at
maturity. That this is true is shown by
the fact that the gold that is now being
drawn from the several subtreasuries is al
most entirely for export. In no known in
stance has there been a withdrawal Of gold
that could be traced to feeling of in
security. Under normal conditions the gov
eminent makes net gain i'm gold of about
SlO0.OOO day. and loses frcm a fourth to
half of that amount, and even under the
present disturbed conditions there has been
no marked change from that rule.
This. II is argued, shows implicit faith on
the part of the people in the financial Sc
curity of the country, and il has greatly
assisted In tiding over the present depres-
sion without a bond Issue. Another favor
able condition is the certainty that very
soon there will be strong demand from
western banks for small notes. with which
to harvest and move the crops, and that
they will be very willing to exchange gold
for paper.
There are others, however, who take a
less hopeful view of affairs. They observe
at the gold reserve. which six months ago
was brought up TO its normal condition by
an increase of $5O.OOO.OOO in public debt. is
again melting away, and Is already reduced
to a point $l3,WU.OOO beow the lowest
reached prior to the February bond issue
They contemplate with uneasiness the fact
that tor a year and more the ordinary ex-
penses of the government have largely ex-
ceeded the receipts.
1t is argued that should the pending tariff
bill become a law and go into opera ton
even as early as the middle Of the present
month"; no material increase in the revenues
could reasonably be expected earlier than
next December.
The only recourse, therefore, 1t is con-
tended. will be to bond issue, and there
are many well-informed persons who be-
lieve that IL this Congress does not pass a
prohibitive resolution before adjournment
xJOO10.OOO more will soon be issued
That there would be no difficulty in placing
any reasonable amount, even at the pre-
MUM exacted in February, seems apparent
from the fact that the February bonds are
being sold at a premium of l27 per cent.