Waterbury evening Democrat., 1895-02-19
The Gold Bond Contract.

WASHINGToS, Feb. lQ.-The attention of the treasury officials was called to the statement made by Senator Gray to the effect that just prior to the signing of the last bond contract United States Trcasur- CT Jordan had notified the secretary that he could not continue longer than the next day to pay gold on demand for legal ten derS. This statement, it was said, was substantially correct. On Wednesday even- ing, Jan. 80, Mir. Jordan, in n telephone message to the department, said that he thought he could hold out until tho follow ing Saturday, but that the next day might decide the situation. It was further said at the department that the net gold coin in the subtrcasuries and assay offices on Feb. ,, less gold certificates to order out standing, was SSS, 510, 5l6, and the gold bullion amounted to S43, 93S, S65, making the total coin and bullion S79. 5o9, 3Sl
 The first indications of general with drawals of gold for the purpose of hoard ing in this country, the treasury officials say, were noticed on Jan. F last With drawals increased rapidly until on the 25th of that month they amounted to g. 156, 046. On Jan. 2S the first message of the president on the urgency of the situa- tion was presented to congress, and on that day over S4, 1000, 900 was withdrawn On the day following tho withdrawals amounted to over SS, GOO, 900, and on the S0th to nearly $4, GOO, 900. The announce mcnt that negotiations for another loan were in progress was made on the lst of February, and on the following day the withdrawals had decrcased to s67, 900.
 On the 5th it was reported that a hitch in the proceedings had occurred, and the withdrawals on that day moro than dou- bled. From early in the year, it is said. every effort had been made to gather gold coin and collect it in New York and BOs- ton, the two principal points of withdraw als for shipment and on tho ad of Febru- ary every dollar that could be withdrawn with safety from other points had been shipped to these points. As shown by the ngures given above, the total amount of free gold in the suhtrcasury in New York was $9, TOO, 334, and the only possible way of adding to it was from the mints, whose total coinage was only about S20O, 900 per diem.
 Practically a Run on the Treasury.
 On Feb. 2 the total amount of gold coin 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 CTS of them and substituting gold bullion in its place in order to carry on specie pay ments in gold. The further statement is
 made that between Dec. l, 1894, and Feb 1S, 1895, the teal amount of withdrawals of gold was tso, 7S6, so2, and the exports for the same period $36, S52, 3s9, showing that over $43, GOO, 900 had been withdrawn for hoarding purposes during that period. "In other words say the officials ttthC people of the United States had lost faith in the ability of the government to con. tinue to pay gold for its notes, and a run on tho trcaSlIry had commenced. ' s-a That this gold has not gone into thG banks is shown, it is contended by tho fact that on Dec. l, 1894. the total amount held by tho hanks at New York was about t96, GOO, 900, and in 30 days thereafter $S3,'
 900, 900, or SIS, ], 900, 900 less than on Dec. | In considering the details of tho con tract, nsay the officials, "it should he re membered that the treasury was dealing with a community more or less exciteI and panicky, and that foreigners for long time had been distrustful of Ameri can securities and had sent large quanti | ties of th8m to this country to be sold l The November bonds, purchased at IF which rosB to 1lo, had fallen to 1l4, tn, latter hgdre showing net loss of over
 per cent on the price paid hy the syndicate