The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-02-19
Morgan A Co. Probably the Only Nev
York Bidders Who Have Brought
Coin from Abroad.
MAY BE GIVEN ALL DEFAULTS
AND POSSIBLY THE WHOLE or THE
NEXT HATCH WHEN ISSUED.
Developments I'm the Pacific Roads In
Questioned by Senator Morgan.
Special to the indianapolis Journal.

WASHINGTON, Feb. .ls-Gold TO the
amount OF so325 was withdrawn from the
treasury to-day. The amount OF the gold
reserve to-day stands at se0.439, ,7Si In
these two statements lies the complete vim
dication OF the statement made I'm a dis
patch TO the Journal last Friday that the
endless chain" was again I'm fatal opera
ton. and the bonds sold to repienish the
gold reserve were being paid for out of
that same reserve. Ever since the bids
have been opened and gold has been re-
ceived the daily statement OF the condi-
ton of the gold reserve has been so con-
fused that for days the worst could only bo
suspected. 1t is not the purpose OF the
Journals correspondent TO state that this
confusion has arisen from any worse mo-
tive than stupidity, but the truth is coming
out gradually and the worst fears OF the
treasury are being realized. 1t was stated
in the Journal that daily average with
drawal Of half a million was feared. The
facts show that even that estimate was too
conservative by far.
Here are some figures furnished by the
treasury and they cannot be controverted:
Since Feb the amount of gold withdrawn
has amounted to sS,SS4 450. To-day is the
18th. Two Sundays have. intervened.
withdrawn in eight days. or an average OF
more than a million day. That further
Withdrawals will be made is indicated by
the persistent premium OF y and u per
cent for gold and one-eighth OF per cent
for legal tenders. 1t needs no rhetoric to
portray the danger OF this situation. New
York bankers are plainly paying for their
bonds with treasury gold. and IL is almost
a wonder that the reserve to-day stands at
even ninety millions. Had all the payments
been made in gold from outside sources the
gold reserve dncluding the Sp,eooooo IL con-
tained when the bids were opened should
to-day stand at between $11o,ooooeo and
sl20o00.00O. II is short that amount by the
0,0O0000. and every one knows that the
discouraging Zimmerman incident In the
New York subtreasury furnishes the entire
explanation OF the discrepancy.
THE DEFAULTED BONDS.
Secretary Carlisle has not yet made the
award OF the 100000 or 100000 defaultei
bonds The Morgan syndicate claims them.
Secretary Carlisle is said TO hesitate TO so
award them, but Mr.. Morgan has a mighty
lever to influence the Secretary. So far. TO
the credit OF the Mcrgans, be IL said. all
| their payments have been made I'm for
| eign' gold-that is, gold not drawn from the
treasury. If now Mr. Carlisle avai,s him
self of legal technicality to withhold the
defaulted bonds from the Morgans IL has
been intimated that the syndicate will not
| feel itself bound to respect the treasury
! gold hereafter. Mr. Carlisle understands
the significance of that suggestion
| At the White House the prediction OF
another and inevitable bond issue is denied
| with pathetic vehemence. Coupled with the
| denial however. comes the knowledge that
Secretary Carlisle will visit New York
| shortly for a conference with the bankers.
| The object of tnat conference is plain. I'm
! der the terms OF payment there remain still
some lis days for final payment. At the
present rate OF gold Withdrawals. augmenf-
ed. as they soon will be, by the payments
! for imports and the annual exodus of Amer
leans TO Europe. the gold reserve will melt
| like snow before the sum- A treasury ex-
| pert said to-day that he would feel sur
prised IL by the 1st OF June there remained
| s75. 900 in the gold reserve. There must
be another bond issue, because OF the piti-
| full mismanagement OF the present loan.
President Cleveland closing his eyes to the
blunders OF the present loan. sees in its
| failure TO restore the gold reserve only tho
eagerly sought vindication OF the Morgan
contracts of last February. He win make
a new contract with the Norgans I'm the
| coming summer.
An Associated Press dispatch says: Sec
retary Carlisle has not yet decided 10 whom
| shall be awarded the bonds upon whish de-
| fault OF payment OF the first installment
was made, nor will he do so until the exact
| amount OF the defaults has been ascer-
| tanned In his notices OF acceptance thu
/ Secretary required the deposits to be made
ION or before the 18th day OF February
! and II Is claimed on behalf of several San
| Francisco bidders that their notices OF ac-
ceptance were not received until after Office
| hours on the 18th. and hence they were un-
able 10 comply with the Secretary's direc-
! tions The facts as to this matter. and
| also as to the reliability OF one or more
| Chicago bidders, are now being investigated
| and until a conclusion has been reached no
Official decision In regard 10 the disposition
OF the defaulted bonds will be announced.
There seems TO be no reasonable doubt.
| however. that they will be awarded TO J.
| p. Morgan and associates under the blanket
bid OF Sl106s77. The gold Withdrawals to-
day were: Coin, ssss. 700: bars. SIS sco. leav-
| ing ne true amount OF the gold reserve
800 4ss.7s4. II Is stated. however. that esti-
mates received OF gold deposits at the sew
| eral subtrcasuries during the last few days
would increase the reserve 10 about Sli0.-
100000.
PACIFIC ROADS HEARING.