The Providence news. (Providence [R.I.]) 1891-1906, 1894-07-31
WHAT OTHERS ARE SAYING


Dangerous Position OF the Treasury.
N. Y. Herald.
Treasury gold reserve July 1, 1890. ...... $50, 49, 47
Treasury gold reserve July 4, 1891. ....... li9, 200, $40
Treasury gold reserve july l., iss2........ a.olz, 500
Treasury gold reserve July l, iss3........ s~o,6ls,s3s
Treasury gold reserve July 1, issL........ 6~t,s7s,o2S
Treasury gold reserve today (aboup.... $500, 900
This is certainly a very disquieting exhibit.
The gold reserve today is ten millions less
than when the issue of bonds to replenish 1t
was decided upon last January. Including
amounts transferred to Canada, more than
five and a half millions of the precious metal
was withdrawn from the country last week.
and there is every indication that the efiux
will continue.
As the banks refused to supply their custo-
mers with gold for export. the whole strain
falls upon the Governments very small sup
ply, and at the present rate that will soon be
absorbed and the Treasury will do facto be
upon a silver basis. 1t is evident from the
above figures that but for the gold obtained
from the sale of bonds six months ago and
recent sporadic contributions by the banks OF
this city the reserve would already have dis
appeared.
To put IL mildly, the present situation ex-
cites serious uneasiness at home. and has pro-
duced positive alarm abroad. The Ire ury
holds today only 10 cents In gold for every
dollar of outstanding Treasury notes and
grcenbacks, which are distinctly gold obliga-
tions, and If we count In the silver certificates,
which the Government is pledged to keep at a
parity with other dollars, the gold reserve Is
less than eight cents to the dollar. The
danger of a scare" developing from this con-
dition of affairs Is too patent TO call for argu-
ment.
1t will not do to attribute the present with
drawal of foreign funds TO the plethora of
money here. There is an even greater pie
thora abroad. and funds left here during the
past eight months of tariff tinkering stagna-
ton would scarcely be called home. now that
the long struggle is nearing an end. unless
there were some new reason for IL. That
reason is to be found in the growth i'm
Europe of q renewed fear for the stability
of our currency. Had Congress adopted The
Herald's suggestion and clothed the Secre-
tary of the Treasury with power to sell bonds
Of popular denominations, as needed to sus-
tain the credit of the government and main
tain his gold reserve, o nfidence would have
been restored and there would have been
none of the boarding of gold by banks which
has thrown the whole demand for export
upon the Treasury. 1t Is almost certain, in
deed, that there would be no demand for ex-
port at this time. for the demand results from
this very loss Of confidence.
Foreigners have noted the apparent indif-
vferSnce of the Administration to the made
Quacy of the reserve, and the refusal Of
Congress to authorize its rcplenishment in
the only practical way. They have re-
marked the boarding of gold by the banks.
They have seen the decline in wheat and
cotton tanning the embers of the silver
heresy in the West and South; the coquet-
ting of public men like TON" Reed with
this vital question. and the adoption Of "sil-
yer planks'' by half a dozen political State
conventions. Last, but by no means least,
they have been a~stonished by Mr.. Carlisle's
action in resuming the coinage of silver
dollars. Whether he has done this to secure
the so-called seigniorage on the amount
coined, or merely for political effect In the
West and SOUTH the effect Is the same. While
gold is being pulled out of the Treasury at the
rate of a million q day, the government is
getting none in. The last ten days state
ment " of the kinds of money received for Gus
toms at this port shows that the amount Of
cold included was too small to be stated in
tcnths of one per cent
Cunning men in Western cities are offering
to deposit gold at the loca. sub-treasuries IL
Mr.. Carlisle will order the New York Sub
Treasury to pay corresponding amounts of
notes to their banking agents here, and Treas
ury officials are reported as saying they can
obtain ten millions In this way. They know
better. Similar offers made some time ago
were accepted, but the notes deliv cred
here were brought to the .Sub-Treas-
ury counter the next day for re-
demption In gold. The Treasury was thus
made TO save the tricksters the expense Of
transmitting their specie TO the seaboard.
The long and the short OF IL Is there is no way
of obtaining the gold needed to build up the
reserve and restore confidence except by the
sale of bonds. Later some means must be de-
vised TO insure the payment of at least a por-
ton of the Government's income in the prec-
ious metal. That question. together with the
revision Of the whole banking and currency
system. should be the long. careful study Of q
commission OF experts. which should he pro-
vided for before Congress sdjourns.
Meanwhile the immediate and imperative
need Is authority from Congress for the issue
of 2 per cent. popular bonds as needed by the
Secretary TO maintain the stability Of the cur
rency and conserve public confidence. Unless
such authority is granted a further issue Of
the awkward 5 per cents Is inevitable. An
issue OF some sort being Unavoidable. what
ever action is to be taken should be taken
without a days delay or disaster may result
Tho Administrator should make a special
appeal to Congress In this emergency, and IL
will be vigorously supported by the intelli-
gence of the country.