New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-06-09
THE TREASURY At THE PIWNBROhE RS

More gold is taken for export, ami the out
ward movement does not cease, rs many pre-
dctcd last week The gold left In the Treas
| urv falls lower every day. and yet II is oiiicalIy
| announced that Secretary Carlisle has given no
Thought 10 the question whether Il further issue
Of bonds may be- needed. He believes, 50 these
announcements run, that the general cash re-
serve will be- sufficiently well maintained, ana
that the temporary decline in gold reserve
makes no difference There may be some FUR
ther exports this MONTH h. rcasons,. and the
loss of so 600 900 or 81. 100000 in July on ac-
count of heavy interest payments. but after
that gold must return this way. If these hope
fuI uttcranccS do not miSrcprcScnt the Srcre-
tary. lie is taking the risk II serious d>appOint-
mcnt.
In seven days Of June the outgo from this
port has been S4.G13.OOo in gold. Yet 1t was
supposed that the German demand HAD ended
early last week: the enormous rcScrv" in FOR
clgn banks and HE low rate Of interest abroad
indicated no demand for money there. ana the
reported buying Of storks here on London ac-
count encouraged pcopl" to brlcv" that a turn
I'm the tide had come. Stocks have been strong
cr this week What foreign buying ih"r" was
In, continued. Bu gold stl goes ont IN large
amounts. and II cannot he said that the facts
are rs cheering as the official aniiclpations.
further loss Of Si0OOOo0 Il week In June would
make tn Treasury reserve dangerously low ~
IN. end of the fiscal year. Then must follow
thr large loss I'm July on account OF Interest
payments. and while the cash reserve may b"
maintained there Is no ground for confidence
that the gold reserve Will be- In any way re-
plcnishod
Secretary Carlisle Is probably calculating on
an income 10 which he does not caro- 10 caH
public attention. II would not look well for The
Administration 10 De- counting upon a transfer
~ MONEY from the pockets Of the people,
through pretended Increase In revenue. 10 ne
treasury ~ the Whisicy Trust. II the pending
revenue b.ll should pass about July !. or shortly
after. II would necessarily be- amended 10 take
effect al least 4 month later ana Ia that month
or more ~ delay the Whisky Ring cold have
n large quantity ~ whlskey taken ont OF bond
by payment ~ the present tax Every gallon
81, released could aftcrward be- sold N the al
yanccl price which The higher tax would pro-
ducc \. The Trust could gain - cents clear
profit on every gallon FOR which It pays 80 cents
tax before the bll takes effect, the Secretary
probably has reason 10 expect that II VIII pay
into the Treasury many millions In a single
month ~ soon as the bill has been signed II
n should take ont only half years consump-
ton 5OOOOOOO gallons Of whiSkcy. the Govern
mcnt would thus be deprived OF $lO,VOO,OOO OF
the intended revenue. aud hat sum. by the
frickery OF a Democratic law. would be trans
fcrrcd 10 The Treasury of an cmncnily Demo
cratic monopoly. but the Government would
yet the immediate Use Of S4JOOOOOO paid into
the Treasury II would hardly be Il profitable
business for the Trel ,ury To borrow $1,000.
900 from the Trust virtually paying SlO.Oo0ooO
interest for the use Of II half year. or NJ the
rate Of 80 per cent yearly. An issue Of $4,000
600 bonds AT 3 per cent interest would look bet
But that would not compensate the wealthy
Democratic dlstillers for their contributions 10
campaign funds. nor would IT enable distin-
gulshcd Democrats In Congress and elsewhere
10 share the profits. In the light of recent per
formanccs In Sugar. IL may be expected that
this Trust also will have its way. and will be
permitted to lend sundry millions 10 the Treas
urv for It's Immediate needs, taking about
pawnbrokcr's interest on the loan. This Is Il
year Of Reform.
The thing especially TO be kept in mind Is that
this increase OF revenue, be II large or small,
will add nothing to the stock OF gold in the
Treasury. Meanwhile the outgO Of gold may
be expected TO continue whether from exports
or from public apprehension and boarding.