The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-09-14
STEADY GOING OUT OF GOLD.
RECENT HEAVY WITHDRAWALS
CREATE ALARM.

Disagreement and breakup In
the Syndicate. and "a Feeling That
Another bond Issue is n Certainty
in the Near Future, Unless Some
way of Recruiting the Reserve IS
Found.
washington. Sept. 1S.-There was no
Disgusting the feeling of anxiety prevail
ing among treasury officials to-day when
the announcement was made that 81, 900
had been withdrawn from the subtreasury
m New York for shipment abroad to-
morrow.
The troublesome part of the statemen:
was the announcement that Lazard
Freres. member of the bond syndicate.
had drawn out S2.50OOOO of that amount
Secretary Carlisle heard the announces
ment without comment, and positively
decline to discuss the subject. The Nor
gan-Belmont bond syndicate has faithfully
endeavered to keep up the gold reserve,
in accordance with the promise to the
government officials, when the loan was
negotiated. BY the terms of the agree
ment the syndicate promised to use all
the reserve at S1OO,OOO,OOO During the
past few weeks the syndicate has shown
its fidelity to the government by turning
into the subtreasury over $15000,000 in gold,
and yet the reserve continues to dwindle
at an alarming rate
The agreement with the syndicate only
holds good until Oct. /, and the fact that
Of the members of the syndicate has
taken hand in the seram-
nc
the rumor that there has been a break
in the combination of bankers composing
the syndicate.
With the fall election coming on the
President will probably hesitate to issue
more bonds for that would but revive the
criticism of the administration for its
secret negotiations with the bond syn
dicate, besides under the terms of the
agreement the syndicate must have the
first chance to buy such new bonds as
may be issued
Various suggestions are made as to the
means to be employed in relieving the
treasury from its present Strengthened
condition. The President has the power
to issue more bonds and he is at present
without the power to add to the revenues
of the government. Therefore, if the
drain upon the gold reserve continues the
Secretary of Treasury will be directed to
prepare another issue of bonds.
1t is the hope of the administration to
stave off a further issue until congress
meets, when it is expected that patriotism
will prevail above partisanship and some
practical solution of the problem will be
promptly reached. Treasury officials no
longer hesitate to say that under the
present condition of trade the revenues of
the government are not sufficient to meet
current expenses. While the revenues
are slowly picking up the expenditures
under the most frugal disbursement still
Aa--a~a -. ia.
] by $13, ,9S7, ,9S3.51.
The government needs more money in
the treasury, and that fact should be thor
oughly understood by this time. 1t is
useless to argue that if certain contin-
gencies had arisen the result might have
been different, but in the language of
prominent member of the administration,
I'VE have got to deal with the condition
that confronts US under existing law"
The treasury balance to-day is S1S1 ,962,-
600, of which 500 56S, 900 is in gold. The
deficit so far this fiscal year is s14000,O 900,
and with the revenues running at the
present figures, this deficit by January
1st, next Will approximate $25,O0OO0O or
S3O,0O0,OO0
The amount realized by the three bond
issues made within the past two years
exceeds it only $600O,000, the total treasu-
ry balance to-day, so without those issues
there would now be an emtpy treasury.
that gold can always be had, but with a
treasury depleted by expenditures exceed
ing the revenues and with the tide of
commercial exchange against us, gold is
difficult to retain in the treasury. The
advices received at the treasury depart
ment from New York stated that A 400, 600
In gold had been withdrawn to-day for
export and 100000 in gold had been de-
posted, making the net loss for the day
S3O0,0O0. This reduces the gold reserve
to 500, ,26S,574
The features of the day. as viewed from
here, were the appearance of Lazard
Freres as gold exporters; the deposit by
the Hanover National Bank of S500,000 in
gold, the large demand for small notes at
southwestern points IN exchange for legal
tenders deposited at New York and the
readiness with which banks availed them
selves of Secretary Carlisle's PROPOSE
ton to deposit gold in New York for
currency deliverable at government con-
tract rates at western and northern points.
Washington, Sept. 13-Secretary Car
Isle positively declined this morning 10
express any opinion on the subject of the
heaVy Withdrawals of gold at New York
for shipment to Europe tomorrow. He
was advised early in the day mat to-day
Withdrawals would likely approximate
$4,000
Some surprise was expressed that Laz-
ara treres, original members of the bond
syndicate, had Joined in the gold export
movement, and some speculation was in
dulged in to the effect that it meant an
end Of the syndicate agreement, to main
tain the gold reserve. Still there was no
explanation vouchsafed and the treasury
of1cials are apparently as much in ihe
dark as the public as to the syndicdres
intention and purposes
As means of obtaining gold Secre-
tary Carlisle accepted the offer of several
parties to supply gold at New York. He
agreed to give them the government con-
tract rates, for shipment of currency from
Washington, to any point designated, up
on their depositing gold in New York,
provided the gold so deposited was rot
withdrawn from the treasury. At present
shippers have TO pay bankers rates, which
Is considerably higher than the govern
ment rates.
It is thought that considerable gold will
De obtained in this way. Arrangements
We're perfected with the express company
10 ship the currency, and quite a large
Shipment was made this afternoon for
Pittsburg, Pa, and one shipment of a
smaller amount maze to Rochester, n. Y.
New York, Sept 13.-J. Pierpons Morgan