Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-11-14
GETTING THE GOLD
Where Some Came From Under the
Last Bond Call.
FURNISHED BY THE TREASURY ITSELF
It Might Be Compelled to Furnish
1t All.
S o NJ E CUE RIOUS FACTS

There are some curious and interesting
facts connected with the call for bonds
which, despite certain curious rumors in
the last few days, has been issued. One Of
these facts Is that, under our currency
laws, 1t is not only theoretically, but prac-
tically possible, for any syndicate Of hank
ers that should be so disposed to compel
the government to furnish all of the gold
necessary to purchase the entire issue.
This could be done by the presentation of
legal tenders for redemption. AS a matter
of fact. 1t is ascertained that, in round
numbers, the government received, net for
the February loan, only three-fourths of
the apparent proceeds of that loan. The
other fourth was furnished by the govern
ment itself. through the redemption Of
legal tenders. presented for the specific pur-
pose of obtaining the gold with which to
buy the bonds. 1t appears that the pro-
ceeds OF the February loan aggregated
$o2,SJO,2SO. This sum was received in gold
But the treasury authorities think that
they have definite enough information to
state that of this sum $15,OOO,OO0 were fur
nished by the government itself, through
the medium of legal tenders, which were
presented to the subtreasuries for gold with
which the payments for these bonds were
made.
One Quarter of the Gold Furnished by
the Treasury.
In other words, of the proceeds of the
February loan in gold, nearly one-quarter
of the entire amount of gold was furnished
by the treasury itself, through the redemp-
tion Of legal tenders. To that extent, at
least, the government paid out of one sub
treasury window dollar in gold for
every four dollars which IL received. 1t is
the purpose of the Treasury Department
now TO keep close watch and record at all
subtreasuries of the amount of legal ten
ders presented for redemption to secure the
gold for the purchase Of these bonds. There
can, of course. be no calculation to the
amount of gold whioh will be drawn from
the treasury at this time by legal tenders
to secure these ten-year ) per cent gold
bonds. But, inasmuch as there Is so much
idle money in the money centers, 1t is hard
ly to be supposed that any smaller ratio
need be expected. On the basis of the pro-
ceeds OF the last loan, therefore, 1t Is to be
assumed that the government, in order to
replenlsh its gold reserve, must part with
one dollar in gold to receive four dollars.
Indeed, as the government can place no re-
strictions upon the amount of legal tenders
which shall be presented for redemption,
there is no reason why this ratio should
not be much larger.
Might BE Compelled to Furnish All.
There Is, in fact, nothing in the laws to
prevent the government from being COM
PEELED to furnish all of the gold for the
purchase of these bonds, If any one shall
be disposed to present the legal tenders for
them. If such a course should be pursued
by speculative bankers, the gold reserve
of the treasury would not be very rapidly
replenished by the sale of bonds. The
President and Secretary of the Treasury
are both agreed that, under existing con-
ditions, few heavy exports would ex-
haust the government store of gold.
1t Is clear however. that the Investment
in these bonds is a good one for the syndi-
Gates which handle them The present
quoted price of the bonds of the issue of
last February is $11S.5O. which is per cent
more than the price which would yield
per cent
Surprise mt the Amount Called For.
There is some surprise among financial men
that the government should have called for
only fifty millions 1t is claimed that one
hundred millions might have been secured;
and that, If 1t Is the purpose of the Presi
dent to restore the gold reserve, and to
maintain Ii at the one hundred millions,
one hundred millions would be none too
much; and that the administration would
be subjected to no harsher criticism from
some members of its own party for the is
sue of one hundred millions than for the
issue of fifty millions. 1t is the issue OF a
single bond that will cause the complaint.
The gentlemen populists and the repre-
sentatives of unsound money are already
beginning to declare that the administra-
tion must be arraigned for the endeavor
to maintain the national credit by replen-
ishing it's gold reserve. But inasmuch
the call for bonds will mature November
"a, and there is no probability but that
the treasury will then have received it's
gold or at least the first installment of
20 per cent Ii is difficult to see what the
gentlemen of the congressional barricades
are going to do about 1t.
DisingenuOus Statements.
There Is one other Circumstance in con-
nection with the bond call to which there
are intimations that the attention of Con-
gress may be called. The bond call, which
the Secretary of the Treasury said last
Saturday was not under consideration, and
that rumors regarding 1t must have orig
mated with spectators, has been issued.
And IL appears from information furnish
ed by the Treasury Department that on
the Wednesday preceding last Saturday
Secretary Carlisle had entered into a cor
respondence with Mr.. Stewart president
of the United States Loan and Trust Com
pany of New York, as to the best class of
bonds to use in this then proposed loan.
The chronology is bad for the authorities
in their dealings with newsgetters. If the
reports that a bond call was under consid-
Grafton, which were made as late as Satur-
day. were started by SPECTATORS, who were
the spectators? But that is another
story. Undoubtedly Senator PETER will
endeavor to ascertain.