The Providence news. (Providence [R.I.]) 1891-1906, 1894-06-26
THE PRESENT GOLD AGREEMENT.

"
tualiy agreed to supply the gold 70
export needed by the Government, re
ce'ved big setback yesterday by tn
unexpected demand that came from
Europe for the yellow metal for ship
ment today. Instead Of diminishing
the outlook yesterday was that NOR,
gold than was called for last weel
! would be demanded this week, and tn.
banks began seriously to question
whether or not they should continue tc
supply the Government and reduce their
own holdings. Some of the weaker banks
demurred, and it looked at one time as
though the agreement which was
brought about by friend of Mr.. Cleve-
iand, the head Of the Chemical bank,
would be broken before the treasury was
reimbursed for last weeks gold ex-
ported. There is not the slightest hold
on the banks to carry out the program,
and any of them can without notice re-
pudiate the agreement. Yesterday the
stronger banks agreed to assess the gold
In proportion to the amount held by each
bank instead of making an equal assess
ment and this held the agreement over
again until some new disturbance
arises. If the banks find that another
bond issue is contemplated, they will
Immediately shut down on their gold
and await the bond issue.
nm In, an xt,ao tI,a IN 4.
that the banks would break away from
their voluntary assumption of the bur
den that President Cleveland found it
necessary to make some kind of state
ment, but his explanation of the situa-
tion was SO weak that it had
better have been left unmade.
He alluded to the offer Of certain
OF the New York banks to replace
from their vaults gold drawn from
the Government treasury for shipment
abroad as certainly thoughtful and pa
triotic; which not only tends to main
tain the treasury's gold reserve in good
condition, but also adds to the stock of
popular confidence, which is at all times
important.
He then grandly suggested that "The
elements which make up our actual sit
uation do not justify any apprehension
and the Administration still adheres to
its pledge and determination to protect
our national credit at all hazards and TO
keep the quality of our money equal to
the best, so far as the limits of executive
power permit"
-The people have -Aepr- -.the Adj
has kept its pledges and if
the Administration alone were to extri-
cate the national finances from their
present precarious condition, dissolution
might be expected at any time.
The Administration" pledged the
'epeal of the silver purchase act but it
was the Republicans in Congress who
carried ont the pledge "the Administra-
ion'' was powerless to redeem.
"The Administration" has shown its
lesire to protect our national credit by
injecting pure fiat into the circulation
" $55 100000 through the coinage of
he seigniorage advocated by Carlisle,
he Secretary of the Treasury, and en-
orsed by the President.
"The Administration" has shown its
determination to protect our national !
redit" by floating gold bond at high
ate of interest for a specific purpose
nd then deliberately using the proceeds
nus derived, unlawfully, and in way
nat called for a protest by Congress. /
The financial vagaries of Carlisl and
the Administration" have not in :
-eased the public confidence in the
oility OF this department of govern
ent to obtain relief, and but for the
Of certain bankers, Uncle
,m's treasury would be in an almost
ankrupt condition this morning.
And this voluntary agreement will be II
'pt mp only so long as the bankers see "
at Cleveland and Carlisle are not I
deavoring to play them with the II
triotism dodge, and drawing from Z
em all the gold they dare, hoping it
II I'LL the gap, but ready the moment
Q banks ascertain that the gold drain
to be continued to rush in a new bond 9
ue.
The bankers are fearful of some such {
of trickery and at the first intima- b
n of IL Mr.. Cleveland will be taught o
esson in finance that will equal his Z
object lesson of last year.