New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-30

right to do this has not been seriously ques-
toned. but his right to use the proceeds except
for redemption purposes has been denied. As l
understand him. he proposes 10 use the money
from the bonds to replensh the gold reserve and
for such other purposes as the necessities OF
the Government require
Another bank president was asked If he
thought the issue would be successful. and ne
answered that Sc far he failed to see any grounds
on which the Secretary could claim success
DEMOCRATIC BANKERS MEET MR.. JORDAN.
The Assistant Treasurer. Conrad \. Jordan,
had a conference with several bank presidents
who are Democrats on Saturday night. He
urged them to assist the Secretary in floating
the bond issue but they gave him little en-
couragement The bankers object to floating a
bond issue which carries no commission with II,
and they object To investing in short-tine bonds
at such a high premium. In all previous issues
there has been n commission of 1-lO to i per
cent. but the present circular makes no reference
to any commission for floating the issue. The
opinion Of the New-YOrk bankers is not that
what il practically a per cent bond issue can
not be noated but they think that the methods
of the Secretary are so exceptional as to de-
feat the purpose OF the issue II secretary
Carlisle had come To New-YOrk before he de-
termined to issue a call for bonds he might nave
met more success than II now seems possible
for him to get. The bankers Of this city think
that the Secretary should have come 10 them
long ago for advice and that if he had he
would have received their hearty cooperation
and the advantage of their many years OF eX-
y
had little or no experience. other men VINO
have been at the head of the Treasury Depart
ment have showed no hesitation in consulting
the financial men Of TINS city III regard 10
monetary questions
CONDITIONS OF THE ISSUE UNPOPULAR.
whether or not the result Of yesterdays con-
ference will insure the success Of the bond issue
can only be conjectured The bank presidents
who talked on the subject showed no disposition
ub. bey inf tended "a do bllt they made
no attempts to conceal the fact that the terms
Of Secretary Carlisle's circular unpopular
prominent dealer In Government bonds said that
his house was holding off until the last minute
i'm order to get advantage of any better terms
should they be offered.
II was said yesterday that Charles 5. Fair
child. eX-Secretary of the Treasury, was form
ing a syndicate To take a part of the issue. and
also that Boston syndicate was forming.
Neither Of these reports 'ould be verified.
In regard to the legality OF the bond issue
and what can be done with the proceeds. one
bank president said: There never was any
specific law limiting the gold reserve To $780,
coo. 900 any other sum The act OF January
H. 1873. known as the Resumption act. gave the
Secretary unlimited power To sell 4, Az or per
cent bonds in addition 10 using any surplus
revenues for the purpose of reducing legal
tender notes. In 1873 Congress passed a law
prohibiting the cancellation or retirement OF any
legal-tender notes. but directed that any legal
tender notes redeemed or received by the Treas
ury from any source should be put out again.
This act took effect before the resumption Of
specie payments. There are no laws in exist
ence to conflict with this: hence all protests
against using the proceeds of the bonds for the
ordinary purposes Of the Treasury are ridicu-
lous.
senator Voorhees,. chairman IF the Senate FL
nanc" Committee. who In al interview given last
September and rcpUb lcd yesterday spoke OF
the bankers II New-York as a combine Of inn
pertinent thieves and robbers and who said that
there was not an honest hair in their heads
and that they had no broad nor patriotic motives.
was answered yesterday by J. Edward Simmons,
OF the Fourth National Bank. as follows:
III senator Voorhees, has really given such an
interview as appeared to-day all that |
have 10 say Is that such language usu-
ally comes from a bowe-knife backguard.
The chairman Of the Finance Committee Of the
Senate understand could not borrow s25 from
bank in Indiana unless he had 500 gold piece
as collateral lis !ansuase is contcmptib'e he-
word no lAure'