The morning call., 1895-02-19
RAPID EBB OF THE
GOLD RESERVE.
INCREASE OF THE Big RUN THAT
ALARMED FINANCIERS IN
JANUARY.
HOW THE COIN WASHOARDED
PEOPLE LOST FAITH IN THE ABILITY
OF UNCLE SAM TO MEET
OBLIGATIONS.

WASHINGTON, Feb. 18.-The attention of
the treasury officials was to-day called to
the statement made by Senator GRAY to
the effect that just prior to the signing
of the last bond contract United States
Treasurer Jordan had notified the Secre-
tary he could continue no longer than the
next day to pay gold on demand for legal
tenders. This statement, it was said. was
substantially correct. On Wednesday even
ing, January 80, Jordan in a telephone mes
sage told the department he thought he
could hold out until the following Satur-
day, but the next day might decide the
situation. 1t was further said at the depart
ment that the net gold coin in the sub
treasures and assay offices on February 2,
less gold bullion, amounted to S43 .93s. $50,
making the total coin and bullion
$40 sos, 3S1.
The gold was distributed as follows:
Washington, $21SS,s62 Baltimore, $621,-
sos; New York, $780, 1884; Philadelphia,
81, 1873, 700; Boston, $500, $50; Cincinnati,
81, 500, 735; Chicago, $2,664, IT'S; st. Louis,
1916, 475; New Orleans, ST, Oe4. 372: San
Francisco, $s,94s,623.
In the Philadelphia mint there was s418,-
o10 in coin and $50, 446, 1923 in bullion; in
Carson City 1857 in coin and $717, 5S4 in
bullion, and in New Orleans SS12. 955 in
coin and $685., 1893 in bullion. In the New
York assay office there was $4,000 in coin
and $18 ,301 40 in bullion The balance OF
the coin and bullion was distributed among
the other sub-treasuries and ASSAY offices.
The first indications of general withdraw
ais of gold for the purpose of boarding in
tho
were noticed on January II last. With
drawals increased rapidly, until on the
25th of that month they amounted to
81, 156,046 On January % the first message
of the President on the urgency of the
situation was presented to Congress and
on that day over $4,000, 900 was withdrawn,
On the following day the Withdrawals
amounted to over $1,000 900 and on the Goth
to nearly 100000, The announcement
that negotiations for another loan were in
progress was made on the first day of Feb
ruary and on the following day the with
drawals showed decrease of ST.. 900. On
the fifth it was reported that hitch in the
proceedings had occurred and the with
drawals on 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
principal points OF Withdrawals for ship
ment, and on the I'd of February every
dollar then drawn with safety from other
points had been shipped to these points.
As shown by the figures given the total
amount of free gold in the sub-treasury
in New York was SO, T03, 1884, and the only
possible way of adding to it was from the
minis, whose total coinage was only about
$500, 900 per diem.
On February 2 the total amount of gold
owned by the Government was exceeded
by the demand certificates outstanding
against it, and the Government was prac-
tically borrowing gold coin from the own
ers of it and substituting gold bullion
in its place, in order to carry on specie
payments in gold. The further statement
is made that between December, 1894. and
February 13, 1895, the total amount of
Withdrawals of gold was $50, 1856, 3O2 and the
exports for the same periods $50, $50, 3S9,
showing that over $43, 100000 had been
drawn for boarding purposes during that
period.
I'm other Words said the officials, sthe
people of the United States had lost faith
in the ability of the Government to paw
gold for its notes, and run on the treas
ury had commenced"
That this gold has not gone into the
banks is shown, it is contended by the
fact that on December 1, 1894, the total
amount held by the banks in New York
was $96,00OO 900, and in thirty days after
$s3,00000O, or $13,00o,000 less than on De-
cember 1.
"In considering the details of the con-
tract, said the officials further, cit should
be remembered that the treasury was deal
ing with community more or less excited
and panicky, and that foreigners had for
long time been distrustful of American
securities and had sent large quantities of
them to this country to be sold. The new
bonds purchased at 81 II rose to 81 10 and
fell to 81 Ia, the latter figure showing net
loss of over per cent on the price paid by
the syndicate.
The officials declare that it was ex-
tremely difficult to make any bond deal
ings at all. After trying for four days to
get reduction of interest. even to 3sl per
cent, it was found absolutely impossible to
obtain it, and the position was regarded as
too critical to admit of longer delay.