St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-01-26

For the Purchase of Bonds in
Case You Have Any-GoId Re.
serve Is Bound to Increase
Through the Natural Tendency
of ARairs-Ail Custom Dues
Paid in Gold.
WASHINGTON, Jan. 25. Interest Ill
treasury department circles now centers
III the question whether or not the actual
net golu reserve of the treasury will be
materially built up by the disposal of
the $50, 100000 bonds which Secretary
Carlisle has announced 10 be his inten.
ton to sell on Feb. l. What doubt
exists on this question is furnished by
the fact that concerted movement OH
tie part of bankers and other investors
in the bonds might be made. by which
payment for the bonds could be brought
about indirectly through the medium of
legal tender notes and treasury notes,
and which, while increasing the treas
ury net balance. would not build up the
gold reserve in the least. 1t must be adj
United. however, that little genuine fear
exists in this connection, as there is not
believed to be any desire on the part Of
the public to hoard gold; but should it
desire 10 do so and prevent the accumu-
iatjon of the yellow metal in the treas
ury, it is within the power of the public
to prevent such accumulation.
SECRETARY CARLISLE
has announced in effect that the bonds
may be paid for in either gold coin or
III n
doubts that may have existed as to
whether he would accept gold certiti-
Gates for the bonds, his original circular
offering TO sell bonds specifying tnat
they were to be paid for i'll gold coin.
There are now about $77,0G0,000 in gold
certificates In circulation, against which
there Is deposited an equal amount of
gold bullion i'll the treasury.
The use of any large amount of these
notes in payment for bonds will result
i'll realizing a proportionate degree of
gold held TO redeem them, and thus add
TO the net gold reserve. The use of
gold certificates in the purchase of
bonds would have the same practical
effect, therefore, as the use of gold coin
itself. except that there would be cor
responding decrease in the circulation
of gold certificates.
THE TREASURY NOTES
issued under the sherman act of 1880
are redeemable in coin upon presenta.
ton. if the holder desires. BY the use
indirectly of large number of these
notes in the purchase of bonds, the cur
rency balance and hot the gold reserve
of the treasury would be Increased to
the extent to which they are used. De-
poSitors can go to their bankers and ask
lor their money i'll treasury notes, then
repair to the Sub-treaSury, where gold
can be obtained fer them. and they can
then use the latter in the purchase of
bonds. Tie effect will be an amount of
gold will be taken from the treasury
equal to that paid in. The result would
be material increase of the currency
balance, leaving the gold balance IN its
present condition. The treasury notes
are. however reiSsued. So no embar-
rasSment of any kind would be felt, I'M
less the government were called upon to
redeem al one time vast quantity of
coin obligations. contingency which
no one expects to happen. The S346,00O.-
UUU legal tender notes are also
REDEEMABLE IN GOLD,
and can be used in the purchase of
bonds, precisely as the treasury notes of
1880 can be used. They are reissued
when redeemed. and the currency
balance will be increased just to the
extent to which they may be made
available indirectly in buying bonds.
Should the possibilities indicated be-
come actual happenings, the treasury
will use the accumulated balance in
meeting the current obligations, and
retain the gold until currency balance
become exhausted. Meanwhile, how
ever, the gold Will increase, as this is
said 10 be the natural tendency of af-
fairs, especially as all custom dues are
paid in the yellow metal. Tie treasury
department frequently receives offers
of gold in exchange for currency, as the
latter money is much easier and safer
to handle, but OF late it has been i'll the
predicament Of not having the currency
with which 10 meet such offers.