The Portland daily press., 1894-01-13
BANKS GETTING TIRED.
They Will Decline to Furnish Gold to Pre-.
vent Raid on the Treasury.

8
New York, January 12.-The banks in
Wall street and vi, Unity which have been
supplying the gold required for export
to prevent the supply in the Treasury
from being trenched upon, have decided
to do so no longer. No formal agreement
exists among them, but an understand
ing exists, and is freely admitted. The
officers of the banks have been urging
the President to address special mes
sage to Congress recommending the au-
thorzation of the issuing for short
time, of low interest bearing bonds. The
President has been asked in addition to
inform Congress that, if the authority
is not granted, he will instruct the Sec
rotary of the Treasury to make the issue
under the resumption act OF 1875, which
provides for no lower rate of interest
than 4 per cent and permits of rate as
high as per cent.
What the Laws Allows.
Washington, January IA Cabinet
officer, not Secretary Carlisle, stated to-
day that the contingency uponswhich the
Secretary of the Treasury could issue
bonds without congressional action was
when the gold reserve in the treasury
was invaded to such point as, in the
judgment of the Secretary, to impair
public confidence. That point, he said,
had almost if not q ute. been reached.
Under the resumption act. he added, the
Secretary of the Treasury, if he deemed
proper could issue the bonds without
further authorization of Congress to the
extent of making the gold reserve intact.
AT present, this would mean an issue of
S26, 900, 600 of bonds, thessgold reserve hav-
ing been invaded to that amount. These
bonds would have to be issued at interest
rates prescribed by the specie resumption
act of or Ia per cent.
John Bulls Ideas.
BLondon, January 12.-It is believed
that negotiations have been proceeding
between the United States government
and some London bank respecting sup
port by syndicate of banks when Mr.
Carlisle, secretary of the United States
Treasury, issues bonds. These bonds, it
is expected here, will amount to $50, 000,-
900, and bear three per cent interest. The
consensus of opinion in banking circles
is that fully half the amount will be
subscribed for here if the issue is made
within a month, when the loan would be
better supported than at the end of the
quarter when there are heavy calls for
money. Indications in the market at
present are that there will be a glut of
floating balances.
1t Makes Us Smile.
Washington, January IA statement
cabled from London that if the United
States will take action within month
London banks might be induced to sub
scribe for at least half of the proposed
United States fifty million three per cent
bond issue, was received with contempt
uous laughter when shown to treasury
officials this morning. London bankers
need not exercise their minds on tn is
matter" said one of the officials. IF
Congress should give authority to the
treasury to issue three per cent
bonds there will be not the slightest
difficulty in floating two hundred millions
or more among our own people without
troubling London to subscribe for so
small an amount as twenty-five millions.
The difficulty which treasury officials
seem to anticipate more than any other
is an indisposition on the part of Con-
gress to authorize the issue of the bonds.