Evening star., 1895-09-13
BONDS AND REVENUE
More of Both Will Be Needed BY
the Treasury.
DEPLETION OF TEE GOLD RESERVE
Anxiety After the Syndicate Con-
tract Expires.
NO AID FROM CONGRESS

NO AID FROM CONGRESS
The contract Of the bond syndicate to
keep up the gold reserve of the treasury
expires next month, and it Is a serious ques-
ton how the Withdrawals of gold are going
to be covered after that time. There Is
vague hope that the movement of the crops
is going to greatly increase the gold in
this country and check the drain upon the
treasury. This should have begun to oper
ate long ago, but the gold Is still going out
and the calls on the syndicate to make up
gold losses appear to be growing heavier
ard more urgent as the period of their con-
tract draws to close. The failure of the
lcoked-for relief through the movement of
crops is accounted for by the fact that this
movement is unusually delayed. This un-
usual delay Is not accounted for, however
and there appears to be no certainty that
there will he as much relief from that
direction as has been counted on. 1t Is
fair to assume that the depletion of the re-
serve, that is now kept in check only by
large deposits by the syndicate, will not
cease Immediately upon the expiration of
the bond contract. Presumably, the gov
ernment will then be left to look out for
itself. and the question Of what they are
going to do about 1t arises.
No Relief Expected From Congress-.
If there were any probability that Con-
gress, Immediately upon assembling in De-
cember, would adopt some measure OF
relief there would be no particular occa-
sion for uneasiIess. A loss Of twenty or
thirty millions between the 1st of October
and the middle of December If met at the
close of that period could be endured with
out special inconvenience. But there
h1 Of
speedy relief OH the assembling of Con-
gress. In the first place, it is questionable
whether there will be any harmony OF
sentiment in the two houses of Congress in
favor of coming to the rescue Of the ad-
ministration in it's embarrassment. In the
secoBd place, there is no agreement as to
what would give the relief, however strong
ly the sentiment might favor action.
What Secretary Carlisle viii Ask.
The Secretary of the Treasury will prob
ably ask for the repeal of the law requiring
the reissue of treasury notes after their
redemption. This recommendation will not
readily be followed by Congress, and it is
by no means sure that it would bring relief
promptly enough if the repeal were speedily
enacted. II the department could now cease
the reissue. there would still be outstanding
enough notes, easily in reach of those
wanting gold, to seriously embarrass the
gold reserve. Moreover, the treasury notes
are reissued only in the regular course of
business, and in the present state of the
revenues the reissue" expenditure of
all forms of money, treasury notes in
cluded, taken in through the agency of the
customs and internal revenue stiH leaves
the treasury short of money, and the
monthly expenditures exceed the monthly
receipts.
Every Dollar Is Needed.
With this state of affairs it is not clear
hrxr ha rafir
ally part of the money coming into its pos
session, without in some way replacing it.
Apparently there is not dollar in the
tleasury that the government has not need
for. The notes of 1890 are used just as are
the greenbacks to get gold out of the treas
try. The law does not compel the reissue
Of these notes, but they are reissued
they are received in revenue, for the reason
that the government is compelled to use
them to meet expenditures.
More Bonds or More Revenue.
This brings them right back to the propo-
sition of more bonds more revenue. both
probably being necessary. With the reve-
nues as short as they have been UP to this
time, it would probably not be long before
the gold reserve would become depleted
through the necessity of meeting the de-
ficiency for ordinary expenditures, even If
not a single greenback or note of 90 were
presented for redemption in gold. 1t is to
be assumed that the republican Congress
will not fail to make the most of this rev.
enue feature, and that they will not be
readily induced to give temporary relief, to
make things appear all right, until after
the election, with the practical certainty
that it will be as bad as ever in short
time.
There will probably have to be another
bond issue sooner or later, in order to get
the gold into the treasury; but there will
have also to be more revenue provided in
order to keep 1t there, no matter what is
done about the reissue of greenbacks.
Whether Congress and the President can
agree on any measure for the increase of
the revenue is problematical; and 1t is al
most certain that If they do not Congress
will not pass any temporary measure of
relief relating to the gold reserve, but not
to the revenue.
Nay Renew the Syndicate Contract.
There being such grave doubt about any
immediate relief coming through Congress
it is not believed that Mr.. Carlisle will
let the gold reserve be rapidly depleted
as soon as the bond contract expires with
out taking some steps to check it.
What steps he will take is Question.
How the syndicate will figure in the matter
is also a question. 1t is believed, how
ever, that he will either issue more bonds
as soon as it is apparent that there is a
serious raid on the reserve, or else that he
will come to some agreement for the eX-
tension of the time of the syndicate guar
dianship over the treasury, giving them
as a consideration a renewal Of their op-
ton on the bonds that may have to be is
sued in the future.
Heavy Gold Withdrawal Today.
The Secretary of the Treasury was in
formed about rcon today that 81, 100000 in
gold had been withdrawn from the SUBJ
treasury at New York, but the official noti-
fication from the assistant treasurer will
not be received until after business hours
this afternoon. The fact that Lizard
Freres, who are members of the bond syn
dicate, had taken out $2,50O,00O of this
amount is the subject of general comment
Secretary Carlisle, as usual, refused to talk
about the transaction, and at 1:15 o'clock
he left for his home, still refusing to say
anything for publication. An official close
to the Secretary stated, however, that the
action of Lizard Freres only meant that
the time has come when the bankers must
protect the interests of their customers in
the matter of foreign exchange. Within
the last few days SO many new sources
of exchange have sprung up that it has be-
come necessary evidently for that firm to
look to its foreign exchange. and hence its