Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-12-17
A SPECIAL MESSAGE
The President to Tell Congress Of
the Treasury Condition.
ANOTHER BOND ISSUE EXPECTED
Low State Of the Gold Reserve at
This Time.
WILL SEEK AID FROM ABROAD

duction of the gold reserve and asking i'm
mediate authority to issue gold bonds un-
der more favorable terms than those
thoriZed by existing law. This action will
be taken, as was the case last winter, be-
fore bonds are issued and with view to
give Congress an opportunity to substitute
a different class of bond from that now
authorized. Action by the President will
be required at an early date according to
the statement of treasury officials, If Con-
gress refuses or neglects to provide for the
maintenance Of the public credit, and it
will be taken more promptly than last
winter. The withdrawal of S3,200,0O0 in
gold yesterday from the subtreasury at
New York carries the net reserve down to
72,SO4, ,7d6.
The bullion constituted $2S0O,OOO of the
amount withdrawn, leaving $I0O,00O with
drawn in coin, that the net bullion hold
ings are about $}I 800 ,O0O and the net coin
belonging to the treasury about S3:0o0.O00.
1t has been the intention of Secretary Car
Isle to issue bonds when the reserve drop
ped below s15O00O00, but now that Con-
gress is il session it is said that lie feels
that etiquette ana public policy require a
reference of the question of protecting the
reserve to the two houses. The hope is
entertained at the treasury that with
drawals of gold will be retarded sufficiently
to give a few weeks for consideration of
the subject in the House. 1t is felt that if
the House should act boldly and promptly
it would have a moral effect which would
make unimportant a slight delay in the
Senate.
Bond Issue Expected.
1t is not expected by the friends of the
administration, however, that Congress
will take any action in season to prevent
another Lend issue. Secretary Carlisle. i'll
his annual report submitted yesterday
recommended the issue of bonds, payable
in gold. but leading republicans declare
that such bond will not be authorized by
Congress. 1t is considered not unlikely
that the House committee of ways and
means, If Governor Dingley of Maine is put
at its head, will authorize the issue Of
treasury certificates to meet temporary
emergencies, and of bonds, redeemable in
coin, as under present laws. at a lower
rate of interest than is now permitted, but
there will be no haste about taking such
action
Speaker Reed has not announced his COM
mittees, and no member of standing in
either party has asked the House to pro-
ceed to consider the state of the treasury
without action by committee. as was done
with the repeal of the silver purchase law.
Condition of the Treasury.
The present condition of the treasury is
not considered by the administration SO
acutely dangerous as the condition of last
January and February, but the fact is ap-
preciated at the treasury that the reserve
Is getting uncomfortably low, and that it
cannot be allowed to fall much lower with
out positive action. Thus far there has been
no indication of withdrawal for boarding,
ana no such Withdrawals are expected, but
1t is feared that the fall of the reserve to-
ward soo,oOo,oU will encourage bear speed
lators, and perhaps expose the treasury to
speculative raids upon the gold
The bonds which will be issued the mo-
ment the situation appears threatening
VIII undoubtedly be of the same class as
the issue of last Fehruary-thirty-year
coin bonds bearing interest at 4 Der cent
Five per cent bonds were Issued under the
first two calls because of the short time
within which they are redeemable but the
government has now accumulated obliga-
tons which will absorb any probable sur
plus of receipts during the twelve years
which elapsed up to the maturity of the
old per cent bonds on July I. 1907. The
bonds maturing within that time are S25,-
3G4, 800 of continued . per cents, redeem
able at any time, at the pleasure of the
government; $10O,0O0.OOO in the per cents
of 1874, and s559,63l.75o of the old 4 per
cents, which mature in 1907.
The redemption of the latter which ia at
the pleasure of the government after ma
turity. is likely to be spread over a series
of years and absorb the surplus up to the
time when the per cents of last February
mature. In view OF the fact that nearly
SID,o0O,O00 of the public debt thus natures
within the next thirty years., it is not re-
garded IS unwise to make the new portion
redeemable after that time, so that thirty
year per cent bonds will undoubtedly be
delivered in payment of the gold purchased
under the next contract The intimation of
Secretary Carlisle in his report that be
should have authority to exchange gold
bonds for gold abroad would seem to Justify
the belief that he will again seek foreipn
gold in order to protect the reserve rather
than permit repetition of the farce of No
vember, 1894, wheE the gold was drawn
from the treasury which went to pay for
the bonds.
What MIR. Walker Says
Secretary Carlisle's recommendation for
the retirement of the greenbacks was not
cordially received by republican leaders Mr.
Walker OF Worcester, who is supposed to be
Speaker Reeds favorite for chairman of the
barking committee, declared that the Secre
tary could not get one vote in twenty in
the Senate and House combined in favor of
retirement. and that he could not get as
large a proportion among the peonle "I
favor 1t as an abstract proposition" said
Mr Walker but as a legislator l am en-
tirely opposed to it because it cannot be
enacted. The proposition which I have en1
bodied in bill, imposing upon the banks
the duty of current redemption of the green
backs is the only possible device for reliev-
lhg tne treasury aside from issuing bonds,
which the people will not submit to. | be-
lleFe that We need currency legislation
equally with revenue legislation / believe
there is as earnest a demand for legislation
Cii 'iiS peahhiiiS stem OF The country
the revenue system, and that legislation
should be had to make the revenues equal
the expenditures"
The hope is entertained at the treas
that the release of capital in London from,
the kaffir speculations and the fan of in
terest there will send money this way for
investment ard arrest the outward flow of
geld. This influence is counted upon to keen
the treasury comparatively secure while
Congress is given a few weeks to consider
the special message by the President, but
it is not counted upcr to prevent the re-
duction of the reserve during the spring un
less measures are promptly taken to protect
it.
Miners and Operators Confer