The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-11-21
TREASURY RAIDERS.
Five Millions in Gold Pulled
from the Subtreasury
By the Dalton Gang" Of Wall
Street Bankers.
HOW THE DEAL WORKS
Grover Pulls the Lever, Wall
Street Holds the Bag.
The Faults of Our Financial
System Plainly Shown.
fAA Nv. E2 4 e II FTR RKEf
THEY FEEL HURT.
Administration Thought the
Bankers Patriotic.
But Those Gents On the Make
Like Other People.

WASHINGTON. Nov. 21.-More gold
went out Of the treasury today. Added to
that withdrawn during the past six days
it made a total of about $5,000,000 Treas
ury people are beginning TO ask them
selves of what profit will it be to sell
bonds if the gold with which they are
bought is taken out Of the treasury.
And that is what is going on. It
was expected that the treasury would
lose some gold in this way when
the bonds were offered, but no such
raid has begun was anticipated. There
was plainly shown at the treasury today,
for the first time, a feeling of uneasIness-
The weakness and defects OF the present
financial system are being illustrated in a
very practical way. The same thing has
been going on for a long time, but SO
gradually and gently as to attract little
public attention Now the process IS
plain to every body.
Legal tender and treasury notes are re-
deemable in gold on presentation, and
when so redeemed must be paid out only
to be again presented in exchange for
gold
The treasury has redeemed in gold,
legal tender and treasury notes an ag
gregate of $256.0OO,O0O without reducing
It's gold Liabilities one dollar. II is ad-
mitted by men Of every shade of opinion
that a sertain amount Of gold held in the
treasury is necessary to maintain the
several forms If money at parity, and
yet we are bound by statutory system
that makes it easy for any one TO take
gold from the treasury as rapidly as ac
cummu1ated.
The emergency that has been brought
about by the distress that has long pre-
vailed in every department of business
and commerce makes it apparent that
Legislation is needed to change existing
conditions and to establish a system Of
finance that will guard the treasury
against the dangers that now beset il.
Treasury officials are not pleased
with the figures representing with
drawals Of gold up to date. Most
Of these officials last week ex-
pressed the opinion that the New York
bankers would supply the requisite gold
from their private stock out Of desire
to strengthen the credit of the govern
ment and give an impetus to business
The showing thus far made by the New
Workers does not seem to the officials here
TO be in line with this view. In estimat-
ing that at least 80 per cent ofthe amount
OF the proposed bond issue would come
out of the gold reserve, temporarily at
leasf.the treasurvofficials hardly looked to
heavy drafts by New York bankers. They
took it for granted that the New Hork-
ers would be patriotic enough to furnish
their own coin, and that the heavy drafts
would come from institutions in smaller
cities. whose gold stocks we're not very
large. The developments of the last
three days have compelled some of them
to revise their opinions
81 see no reason" said one treasury
official, s'why the bankers of New
York should not buy at least
S30,OO0,00 of these bonds and
furnish the gold for them. Such an
act would have a wonderful effect upon
the country / am aware that bankers
have a way Of consulting their own in
ferests first, but | cannot see how the
banks could possibly benefit through
trenching upon the govern
ments gold reserve, except by forcing
gold to a premium, which might follow
upon failure to successfully place this
issue Of bonds"