The Providence news. (Providence [R.I.]) 1891-1906, 1894-06-26
WHAT OTHERS ARE SAYING
The Gold Reserve.

| boston Advertiser.
The gold reserve at the end of last weel
was brought 10 the lowest point In the histor,
OF that fund and the New York b snks bsv,
agreed 10 come to the rescue temporarily. II
Is stated. however. that the banks agree
ment will not extend over more that the pre-
sent week and that ii the gold drain 10 Europe
keeps up, the treasury will have To shift ioI
itself from the beginning of the new fiscal
year. As the present fiscal year expires with
this week, IL Is plain that Secretary Carlisle
has little time In which 10 decide upon the
policy he will then pursue.
Ihat an issue OF bonds could be fioated easily
Is PLAIN enough, in view Of the low rates
which time or call money now commands.
IL has been stated publicly a number Of times
In a semi-authoritative manner and wi thout
contradiction, that Secretary Carlisle is very
much averse 10 another bond issue wit hin
the calendar year. The political effect
OF such an issue would be disas-
trous To the administration in the South and
west and for that reason, il for no other
there Is strong political sentiment among
the Western and Southern Congressman
against another s50.Ot0.O0O national loan.
Among number of Eastern financiers, how
ever. the opinion is expressed every day that
BOND issue would avert any uneasiness
abroad, regarding the ability OF the treasury
to meet all its obligations on a gold basis,
IL any relief is come 10 the treasury In such
way as to avert the necessity for new bond
issue, IL Will presumably come in the form OF
resumption of business as a result Of the
hnal settlement OF the new tariff bill.
IL Is not unreasonable TO suppose
that the passage OF the German bill.
even though that measure. as We believe.
threatens injury TO a number OF American
Industries, will be followed by better bu siness
In this country than is now transacted.
those who have very much 70 fear from the
Dill have already brought their business down
TO bedrock basis and those who may have
less to fear have still be IN holding off lest tho
bill might be changed at the last moment.
with even not very tremendous revival of
business In this country, the price OF Ameri- |
can securities is likei} 70 advance, and a ris- |
Ing market for securities usually means for
eign purchases of bonds.
al Europe once more begins to invest very
largely in American securities. and the tide of
gold sets heavily back to this country, the
treasury will profit by that fact. 1t Is also 10
DC expected that the gold payment of customs
VIII increase in such an event, as it is a
peculiar symptom of "hard times" that the
soid receipts fall of very perceptibly In such
easons, but increase times grow better.
ust now the receipts OF gold coin in payment
II duties amount to but two per cent of the
otal customs receipts, and the treasury has
or months suffered from the Snall gold pay
nents. lf the duties on the very heavy i'm
ortatlons that will follow the enactment of
he German bill are paid largely in gold, the
eserye will profit very noticeably by the
hange.
II In spite OF the passage OF the tariff bill |
uu the ehd or business uncertainty, IL still
ecomes evident that bond issue will be |
eeded, II Is TO be- hoped that the Secretary
the Treasury will be empowered by Con-
rtss TO make popular loan. The low
ates OF interest that are now I'm force ara
Kelly to prevent the savings banks from |
aging their customary rates Of interest.
nj 1t Is probable that such banks would be
lad to have the present plethora of money
'moved by large popular loan. At the sane
me. people generally of small means would
. glad To find such an investment for their
oney, especially at the present time when
lsihesS has been handicapped by
year or more Of depression, Even |
the West and South such
an wonld be far less open TO political attack |
AN mere sale of bonds 20 the national
inks, ss the Populists' opposition to n bond |
sue is inspired not 30 much by financial OBJ
ctions as by the avowed beiief that the
mixing institutions of Wall street control the
'licy OF the administration.