Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-05-16
LOSING THE GOLD
The Withdrawals Causing Concern
in Administration Circles.
LAST BOND issue NOT SATISFACTORY
Serious Difficulties in the Money
Market Feared.
EFFECT OF SILVER SUCCESS

The continued export of gold, the re-
Eewed agitation in the Senate agains: the
Issue OF bonds and the activity OF the sill
| yer element in both political parties are
causing concern N administration circles
| 1t Is believed that the loss of gold woul1
cease with tightening rates foi money and
The expiration OF the spring export season
| IL Ii were not for the uncertainties of the
| political situation. 1t is considered by
friends OF the administration TO be of the
highest Importance, not merely for party
or political reasons, but for the rnainte-
nance of the public credit, that both polit-
ical parties and their candidates should
plant themselves upon an una9uivocal gold
Platform. II Mckinley should be nomi-
mated upon a dubious platform and the
| democratic ma tional convention should then
| be carried for free silver, IL is feared by
| them that serious panic would follow
| Inc amount OF gold withdrawn from the
| subtreasury at New York yesterday FOR
| export was Sl,eoo,po0, and the smaller with
| drawals of the day for domestic purposes
were slo1'1oo in geld coin and $1,000 in gold
| bars.
| These losses reduced the net reserve
| to sll3, IA, ,462, representing a net loss since
| May i of about S12.oo0,oo0. The redeTnp-
| ticns of legal tender notes at the sub-
| ueasuries since the advertisement FOR the
| bord issue on January 3 have beer about
| $65WOVU. large part OF this sum was
| wlthdrawn in anticipation of payment fer
the bonds and only about s25.oo0,uoo has
| been taken for export. The EXPORT demand
is now the controlling factor, and other
| losses are comparatively trif1ing. The
| pres ent rate of loss would carry the re-
| serve close to S1U0pp0oo0 on June l. and
| the country would again be brought face
| 10 lace with serious financial situation.
| Last Loan Not Satisfactory,
1t has been the purpose and expectation
| OF the administration to avoid another issue
OF bonds. 1t has been supposed that under
| normal business conditions the increase in
the sold reserve caused by the last bond
| Issue would maintain an adequate gold
| iund Until President Cleveland laid down
| ms responsibilities for his successor. The
PRESIDENT is aid to be as firmly resolved
as ever to maintain the public credit as
/ long as he has it in his keeping. but there
| are several financial considerations aside
| from those which are political, which make
| him reluctant 10 again invite bids for
| per cent loan. The results Of the last
! oond sale, gratifying as they were in re-
| spect to the amounts subscribed. have not
| peen OF great permanent benett 10 the gold
| reserve.
| The net proceeds of the bond sale are said
| 10 have been about Sill. 166, 232, and already
| so5,oo0,oO5 Of this gold has oozcd ont of the
| treasury, including that which was taken
during January with the purpose of making
payments for the new bonds In this re-
he
| recent placement OF bonds is regarded by
| treasury officials as less satisfactory in It's
results than the contract with ,he yorpsn
syhdlcate, when the premium paid secured
the integrity of the gold reserve sI,bstan
| tally from February 10 October and caused
an active revival of business opera,fops
lnese important facts are likely 10 be laid
before the subcommittee of the Sa,a.a Icor,
m.ttee on finance in the letter which Secre-
tary Carlisle has promised them regarding
the various bond sales.
Serious Difficulties Feared.
serious difficulties are feared in the money
market, and serious temptations Will he held
| out to the next Congress, If another srIrn of
s5oVUlW0 or sl0o,Oo9,oo0 is withdrawn from
circulation and locked up in the treasury
| ne general cash balance now stands at
| S26i,6sS,&13 The withdrawal of anotber
sum of sl0o,o0o.09o or SlIo.ollun incI,dipo
the premium, would raise this accumuIa.inT
| OF idle currency to S}1I ol1 HO
| II would be an amount which might So
| lousy cripple business operations by rails
ing the rates for money for leEitimata on
tcrprlses and it would afford a temptat.on
10 congress to make appropriations which
| would be almost irresistible 1t is felt bv
| many friends of the administration that Tho
| .ssue OF bonds, adding to the permanent
! debt of the country, can not be continued
lnuenn-teiy In order TO maintain the parity
OF the legal tender paper This outstand-
ing paper has already been reduced TO
| about S3G0,oD1,00o by the accumulation of
| SSoo@2l1G in United States notes and SS2-
43G,59I in Sherman notes in the treasury
cash. Another issue of bonds with the
usual exchange of the gold proceeds at an
early date for paper, would stlI further re-
duce this outstanding mass of paper money
1t is felt, however, that contraction has al
ready advanced far enough, if confidence in
our monetary system and our intention to
adhere to the gold standard was not Sc
riously impaired III Europe
What the Administratfon's Friends
Think.
The speech of Senator Bacon of Georgia
yesterday in favor of prohibiting the fur
| ther issue of bonds and notice by Senator
Butler of North Carolina that he would
! insist at an early date the considera-
| ton of his resolution for the same purpose
are regarded by friends of the administra-
| tion as unfortunate at this time. IL is felt
| that if upon such demonstrations as these
are accumulated the disturbing influences
| of unsound platforms and silent candidates
| the maintenance of the public credit viii
become more d.fficu.t than ever. A strong
declaration for the gold standard by the
conventions of both political parties would
afford great grati.icatiCn to the financial
officers Of the administration, without re-
gard to the effect upon party politics The
| possible success of the silver extremists i'm
debating terms to one or both parties and
| in naming one both candidates might
they think, involve results 50 appalling
uIon lEe New YORK STOCK market and
eventually upon the commerce of the en-
| tire country that even issues of bonds
would fail to arrest the paralysis of busi-
| ness and the constant reduction of Inc gold
reserve.
| 1t is not merely for political reasons,
| therefore, il is claimed, but for financial
ones, that the administration desire to see
sound views govern both PARTIES, for SraVer
problems than have yet confronted the
treasury are anticipated If the declaration
| goes abroad that one the other of the
| great political organizations of the coun-
| try has finally been captured for the first
| lime by the free silver extremists and is
aiming at the subversion OF the existing
| gold standard
More Seeds for Congressr,ep