Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1895-02-21

Washington, Feb. 19.-The attention
of the treasury officials has been
called to the statement made by Sen
ator Gray to the effect that just prior
to the signing of the last bond con-
tract, United States Treasurer Jor-
dan had notified the secretary that he
could not continue longer than the
next day to pay gold on demand for
legal tenders. This statement, it is
said, was substantially correct.
Wednesday evening, January Sd, Mr..
Jordan, in a telephone message to
tn" department, said that he thought
hat ne could hold out until the fol
lowing Saturday, but next day might
decide the situation. 1t is further
SAID at the department that the net
gold coin in the sub-treasuries and
assay offices February 2, less gold GER
tlhcates subject TO order outstanding,
was $35,57O,516 and that the gold
bullion amounted to $43,9 8 $3.50, max
ing the total coin and bullion $19,-
509,3S1.
The first indications OF general
Withdrawals of gold for the purpose
Of boarding in this country, the treas
ury officials say, were noticed Jan
uary II, last. The Withdrawals in
creased rapidly until the 10Th of h
month, and they amounted to $7,156,-
O4G January %, when the first
message of the president on urgency
OF the situation was presented to con-
greSs and on that day over $4,000,0O0
was withdrawn. On the day follow
ing the Withdrawals amounted to over
$4,000 600 II on the 30th to nearly
$4,OOO,OOO. The announcement that
negotiations for another "a were in
Progress was made Oh the first of
February and on the following day
the Withdrawals had decreased to
$6I 900. On the fifth it was reported
that Il hitch i'll the proceedings hld &C.
CURED and Withdrawals 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 i'll New York and Boston, the two
principal points of withdrawal for
shipment, and on the second OF Feb
uoIS, SNClS uO1ldI lhub tOuld Dt
Withdrawn with safety from other
points had been shipped to these
points. AS shown by the figures the
total amount of free gold in the sub
treasury i'll New York was So 100 ,334,
and the only possible way of adding
TO 1t was from the mintS, whose total
coinage was only about 100000 per
diem. February , the total amount
OF gold coin owned by the government
was exceeded by demand certificates
outstanding against it and the govern
ment was practically borrowing gold
coin from the owners OF them and
substituting gold bullion IN its place,
in order TO carry on the specie pay
ments i'll gold. A further statement
was made that, between December 10,
and February Ii, 1895, the total
amount of gold withdrawn was $780,
1S6,3O2, and that exported for the
same period was ~$3G,S52.3S9, showing
over $4,000, 900 had been withdrawn
for boarding purposes during that
period. In other words" say the
officials, the people of the United
States lad lost faith in the ability of
the government to continue 10 pay
them gold for its notes and 4 run on
the treasury had commenced :
That this gold has not gone into the
banks is shown, it is c~ontended, by
the act that December /, 1894, the
total amount held by the banks at
New York was about $4,000, 600, and
i'll thirty days thereafter $685. 900,
or S13, 1000 less than December.
in considering the details of the
contract say the officials, 1T should
be remembered that the treasury was
dealing with a community more OF
less excited and panicky, and for
eigners for i long time had been dis
trustful of American securities, and
had sent large quantities of them to
this country to be sold. November
bonds. purchased at III, which ros
to 10, have fallen to Ia, the latter
figures showing that the net loss is
) per Cent on the price paid by toe
syndicate The officials declare that
it was extremely difficult to make any
bond dealings at all. After trying for
four days TO get a reduction Of inter
est. even to three and ~fve-eighthS per
cent, it was found absolutely impoS-
sib1e to obtain it, and the position was
regarded as too critical to admit of
longer delay.