The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-02-19
ALMOST BROKE.
A Run Had Started on the United state,
Treasury.


Treasury.
WASHINGTON, Feb. 1e.-The atten-
ton of the treasury officials was
called to the statement made by Sem
ator Gray to the effect that Just prior
to the signing of the last bond con-
tract United States Treasurer Jordan
had notified the secretary that he
could not continue longer than the
next day to pay gold on de-
mand for legal tenders. This
statement, it was said, was sub
stantially correct On Wednesday
evening of January 80 Mr.. Jordan, in
telephone message, told the depart
ment that he thought he could hold
out until the following Saturday, but
that the next day might decide the
situation. It was further said at the
department that the net gold coin in
the sub treasures and assay offices on
order outstanding, was $35, $40, SIG,
and that the gold bullion amounted
to $40, e3e, 500, making the total coin
and bullion 49, 500, 3s1.
The announcement that negotia-
lions for another loan were in pro-
gress was made on the Ist of Feb
ruary and on the following day the
Withdrawals of gold decreased to
$67, 090 On the 5th it was reported
that a hitch in the proceedings had
occurred, and the Withdrawals ION
that day more than doubled. From
early in the year. it is said, every
effort has been made to gather gold
coin and collect it in New York and
Boston, the two principal points of
withdrawal for shipment, and on the
I'd of February every dollar that
could be drawn with safety from
other points had been shipped to
these points.
On February the total amount of
gold owned by the government was
exceeded by the demand certificates
outstanding against, and the govern
hent was practically borrowing gold
coin from the owners of the money
and substituting gold bullion in it's
place in order to carry on specie pay
| ments in gold. The further state
ment is made that between Decem Der,
1894, and February 10, 1899. the total
amount of Withdrawals of gold was
| $50, 7s6. 3O2, and the exports for the
same period $50. $50, 389. showing that
over $40, 900 had been withdrawn for
boarding purposes during that period.
I'm other words" say the officials
''the people of the United States had
lost faith in the ability of the govern
ment to continue to pay gold for its
notes and run on the treasury had
commenced"
That this gold has not gone into
| the banks is shown, 1t is contended,
by the fact that on December [, 1894,
the total amount held by the banks
at New York was 500, 900, 900, and IN
thirty days thereafter, $50, OO0 600, or
! $13, 900, 900 less than on December L.
''In considering the details of the
contract" say the officials, sit should
be remembered that the treasury was
dealing with community more or
less excited and panicky, and that
| foreigners had for a long time
been distrustful of American Sc
curities and had sent large
| quantities of them to this country to
be sold. The new bonds purchased
at 1. II, which rose to Lie, fell to l. IA,
the latter figure showing a net loss of
over three per cent on the price paid
by the syndicate"
The officials declare that it was ex-
! tremely difficult to make any bond
dealings at all After trying for four
days to get a reduction of interest,
even to 3 q per cent, it was found abso-
lutely impossible to obtain it, and the
position was regarded as too critical
to admit of longer delay.
Everywhere and always analyses prove
/ R.a h