The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-15
INVADED S26,0OO,OOO
The Treasury Gold Reserve Fund
Rapidly Disappearing.
Secretary Carlisle Determined to Re-
plenish His Stock by Issuing Bonds
Under the Law of 1875.

WASHINGTON, jan 14-Some decisive
action to replenish the gold reserve in the
treasury will be taken within the next
few weeks. If Congress does not take
kindly to the suggestions offered by Secre-
tary Carlisle in his annual report and pro-
vide at once some method Of relief the only
course left the officials of the Treasury De-
partment will be for the Secretary TO ex-
erciSe the authority granted him by the
law of 1875, and issue bonds for the pur-
pose Of maintaining the gold reserve. The
position which confronts the administration
is one which it has decided to handle with
promptness. All the available money now
in the Treasury Department consists of
the so-called gold reserve" which has
now been invaded SIG, 100000 and by the 1st
of the month the Treasury Department be-
lieves that the total amount will have
been reduced to $685. 100000. Such a situation,
it is thought, would again start a move
ment of gold towards Europe, which would
still further reduce the amount of gold
held by the United States.
Secretary Carlisle has twice appeared be-
fore the committee on finance, and his pre-
sentation of the case to the members of
that committee has been clear and explicit.
When he next appears before the commit
tee, which may be tomorrow, 1T is proba-
BILE that he will emphasize his argument by
the presentation of a carefully-prepared
statement of the condition in which he finds
the national finances, as well as the meth
ods proposed by him TO afford relief Mr.
Carlisle prefers that Congress should deal
with this matter, but If the national legis-
lature fails within three or four weeks to
show any indications that it intends to aid
he raj Of he iS
that he will be forced to avail himself OF
the authority granted him by the act of
1875, and issue bonds necessary 10 replenish
the gold reserve. 1t IS because Mr.. Car
Isle desires that Congress should first act
that he has thus far made no preparation
for an issuance of bonds. and all statements
TO the effect that orders have been given
the Bureau of Engraving and Printing for
plates, etc., are pure fabrication. Absolute
ly no action has been taken and no definite
plans decided on. This much can be Off
cially stated The attitude of the New
York bankers, expressed in recent pub
licatons in regard to the furnishing OF gold
for export, should such a necessity arise.
has positively had some effect in strength
ening a feeling that the government should
issue bonds to protect the gold reserve 1t
is denied, however, that any agreement
cNSi cAiSbcu ny WHICH luS pdnkS were TO
furnish gold.
prominent Democratic Senator said to-
day that Secretary Carlisle would not allow
the gold reserve to fall below $4,000 900.
and should the reserve be reduced to nearly
| that point, before Congress acted Mr. Car
| Isle would Immediately declare an issue of
bonds. When this statement was shown to
Senator Voorhees,, the chairman of the
| finance committee, he declined to either
| verify or deny it, only saying: 1.-The Sec
| retary Of the Treasury has the authority and
| the disposition to protect the credit of this
| government, and l have no doubt that he
will act promptly and effectively IL the
| emergency should arise" Senator Voorhees,
| does not deny the report that he is prepar-
| ing a bill to meet the emergency, but this
| statement would seem TO indicate that he
| does not expect to be called on to forrnu-
| late a measure.
With reference to the opinion that a bill
| for bond issue cannot originate in the
| Senate, it can be stated that the lawyers of
| the Senate are generally Of the opinion that
| it can originate there as we'll as in the
| House. Senator Gray says the House
| would probably make a row over such ac-
| ton on the part OF the Senate, but that in
| his opinion the issuance of bonds is not the
| raising of revenue as provided for in the
Constitution.