The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-11-24
Mr.. Carlisle Poweriess to Prevent
Bankers from Drawing Yellow Coin.
Out of the Treasury at VIII.
JAPANESE TREATY SIGNED
READY FOR RATIFICATION ny Our
SENATE AND JAPAS's COUNCIL.
Commissioners Lochren's Estimate OF
the Amount Required for Pensions
for the Next Fiscal Year.
snacInl to the IndiananolIs Iournal.

Special to the Indianapolis Journal
WASHINGTON, Nov. 23.-To-morrow
Secretary Carlisle will open the bids for the
second issue OF bonds. There is no reason
TO doubt that every bond has been sub
scribed for. Indeed. il is quite possible
that the bid may amount TO $75.ooo,ooo. in
stead of only the 5o.ooo,0oo advertised. The
statement is made that the Farmers Loan
and Trust, United States Trust and the
Union Trust and the banking houses OF
Brown Brothers & Co.. Kuhn. Loeb & Co.
Drexel. Morgan & Co. and Speyer & Co.
will bid for practically the entire issue
at 116.10S, from Nov. /, with accrued IN
terest. This will place the bonds on
5 per cent. interest basis. AT these fig
ures the treasury would obtain nearly So.
100000 in gold. The present outlook. hcw-
ever, is that Mr.. Carlisle will net only
about thirty-fve or forty millions. Ever
since last Friday, to-day a week ago. gold
has been withdrawn from the treasury at
an average rate of million a day. In the
early part of the present week the average
rose to a million and a half a day. Under
the terms of the call for bids 20 per cent
of the price OF the bonds Is TO be paid On
notification of the acceptance OF the bids
This will enable Mr.. Carlisle 10 add be-
tween ten and eleven millions TO the meager
treasury reserve early next wek. but he
will doubtless find that he has made a net
increase OF his reserve OF only one or two
millions. Nor does there appear any good
reason why the bankers who on next Mon
day or Tuesday formally pay over the
eleven and half millions OF gold as the
first installment OF their purchase cannot
the next begin TO withdraw the same
T.. -
ten days thereafter. 1t is true that treas
ury officials declare Secretary Carlisle win
boycott all New York bankers who have
been Withdrawing gold these past days. but
that is probably an idle threat. Mr. Car
Isle knows perfectly well how unwdse
any such discrimination would be. Indeed.
several Of the bankers who have been
withdrawing gold avowedly for the pur-
pose of bidding for the bonds tomorrow
announce that if there is any appearance
of Discrimination against them they viii
promptly resort TO the courts. Moreover.
granting that the bonds are awarded TO
the bankers who have not Withdrawn the
gold for the first payment. it viii remain
10 be seen whether these gentlemen will
not promptly begin Withdrawing gold as
soon as they are safely In possession &C
the bonds. The truth is that the present
system OF finance which makes ii possible
for bankers to 'thimblerig' the treasury
as they are doing is manifestIy absurd.
SIX months after Mr.. Carlisle has obtainea
the last payment for his bonds he will ma
his gold reserve in the same condition IN
which IL is to-day. and a third Issue of
bonds will be inevitable. There is no rem
edy except the passage of laws by Con-
gress enabling the banks TO provide the
circulation. and there is no prospect for any
financial legislation until the Republican
House enters upon its work. year from
next December