Evening star., 1895-01-26
SOON BE NO GOLD
The Balance May Be Exhausted
Within a Week.
NO ENCOURAGEMENT FOR ACTION
Members Of Congress Do Not Heed
the Treasury's Condition.
AN EXPECTED BOND CALL

AN EXPECTED BOND CALL
| There is very general opinion amongst
| men in Congress who watch the financial
| matters that unless another bond issue is
| successfully negotiated there will be no
gold in the treasury at the end Of two or
| three weeks. One of the eastern democratic
| members of the banking committee ex-
pressed the opinion to representative OF
| The Star today that the remaining $53, ,OOO,-
600 of gold would be withdrawn from the
| treasury within week. The gravity of
| the situation leads many to conclude that
| Congress will be frightened into action at
| least to the extent Of authorizing low
interest, short term bond ISSUE The decIar-
| alton is repeatedly made by those who as
sumo to possess some financial knowledge
| that the Treasury Department will not be
able to issue bonds on the basis upon
which 500. 900. 600 worth have been issued.
They say that If the issue can be negotiated
at all it will have to be at a very much
| less premium than was paid on the other
two issues of per cent bonds, making the
rate Of interest higher.
The effect of this would be to depreciate
the bonds issued at q lower interest and
this effect upon 100000 of bonds Is
matter of very serious consideration. Inc
which would result from such a thing Is an
argument made to induce the opponents to
bond issue in the House to permit the
issue to be made under such q condition as
will render the bonds salable at an interest
not greater than that borne by those which
have already been put upon the market. II
| Is urged that as bond issue is inevitable
Congress should not stand In the way OF
its being negotiated on the most favorable
terms.
Does Not Have Much Effect.
Neither the rapid depletion Of the gold re-
serve nor this argument appears to have
much effect Among the men who have
heretofore stood in the way Of legislation
qualification is expressed when the asser-
ton Is made that the treasury will not be
able to negotiate bonds under the old law.
The prediction that the gold reserve OF
the treasury will be exhausted within two
or three weeks is received by the same gen.
tlemen without any expression of alarm or
concern that there should be legislation.
There is no indication whatever of any
| change Of attitude on the part of the radical
silver men. and those who are counting
upon the situation alarming Congress to
action find little encouragement in that
quarter. But little expectation is enter
| tanned Of beneficial results from the legis-
lation on the surdry civil bill. permitting
the Secretary of the Treasury discretion as
to the denomination of notes reissued on
redemption and making gold certificates
not receivable for customs dues. Some
good may be accomplished through this
legislation. it is thought. but it is too in
significant to cut much of a figure in the
relieving of the present situation.
Expected Bond Call.
1t was currently reported at the Capitol
today that there would be call for bids
on five per cent bonds put out by the treas
ury on Monday, and there was also consid-
cradle talk of an urgent message from the
President appealing for relief
But little concern was manifested as to
the anticipated bond issue, and the opinion
was general that no message from the
President would be productive of results.
The statement is made. without any au-
thority being given, except current report,
that the President under the compulson Of
existing conditions, was disposed to treat
more literally with the silver men than
heretofore, and that he would yield most
anything short of free coinage If by so do
ing he could secure legislation which he
desired. This is probably an eXaggeration
of the case, but there is a very firm belief
that be would be willing to permit the ex-
pertinent in connection with the legislation
he desires of forcing into circulation the
entire volume of silver in the treasury upon
which the sherman notes were issued The
policy Of the treasury to redeem these
Sherman notes in gold is fixed, and it is
not believed that the administration can
be driven TO any other as long as they have
gold or any means of getting it. But it is
suggested that the President might agree
to the indirect substitution of silver dollars
THESE HoteS Dy IdlunS 10 reissue such
Sherman notes as come into the hands of
the treasury. All propositions under dis
cussion, with hope Of finding solution Of
the problem, involve some disposition of
the silver in the treasury other than that
of holding it as security for the Sherman
notes. while not being held under the policy
of the department for the purpose of re-
deeming these notes.
White House Conference.
There was financial conference at the
White House today. It started early in
the day between the President and Secre-
tary Carlisle and had not progressed far
before Attorney General Olney was called
In to throw light on some legal questions
involved. That federal action of some
kind is imminent is further strengthened
by the presence in the city of Mr.. August
Belmont and Mr. H w. Cannon, who are
said to have brought a proposition from
the banking interests of New York looking
to an Improvement of the general financial
situation.
There are no signs at the Treasury De-
partment to indicate that another bond
issue Is imminent, and the impression is
growing that it is the Presidents purpose
to again impress upon Congress the neces-
sity of prompt remedial legislation 1t was
rumored. this afternoon that he is engaged
In the preparation of special message,
and that he will send it to Congress Nom
day.
The treasury gold balance sustained a
further loss OF G5O,OOO today, and is now
stated at 500, $4,000.