St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-01-22
PLENTY OF GOLD.

The most interesting feature in con-
nection with the new loan that is about
to be placed is the demonstration af-
forded of the existence of an immense
fund of gold in this country equal to
all our currency needs, if our monetary
system were only placed upon a sound
and sensible basis. 1t is understood
that Secretary Carlisle has received
assurances already sufficient to guar
antee the taking of the entire 500 .OOO.-
900 of bonds Immediately. The prob
ability is that the amount of the loan
will be subscribed for perhaps twice
or three times over. There is great
demand for these new per cent bonds.
They offer the most desirable form Of
investment for all kinds Of trust funds:
and, being issued in small denomina-
lions, they can be disposed Of readily
afterwards, by corporations that may
subscribe for them to the people. The
banks also are anxious to get hold of
them as a basis for increased note
circulation. If these bonds are Sc
cured for anything like the price paid
by the members of the syndicate for
the last lot, which was divided among
the banks at 1121a, the bonds can be
used in times Of monetary stress with
profit as a basis for national bank note
circulation. There is thus created a
large demand for them, and the aggre-
gate of the subscriptions offered will
show the great extent of gold holdings
in this country
That is also proved in another wav
1t is said that the banks which con-
stltuted the syndicate before it's disso-
luton had already pledged themselves
to take an issue of 100000, OOO and fur
nish the gold for the entire amount as
demanded. If, now, we assume that
the popular subscription, so-called
amounts to $20O,0O0,OOO, which is a not
unreasonable figure, and that the banks
forming the syndicate were prepared
TO pay $500, OGC, 900 more we have a total
OF S4OO,0Oo,0OO in gold standing ready to
De Invested in government bonds. ONLY
a small portion Of this would in anv
event have been drawn from abroad
The entire present subscription is un-
oerstood TO be made by parties con-
trolling gold already in the country
The syndicate. had it obtained the
ponds, would not in any event have
proposed to obtain more than half the
purchase price from European gold
STOCKS, which was their arrangement
when they took the preceding loan
There is, consequently, existing in this
country not less than $500, 00O, 600 in gold
free to be used for the purchasing of
ponds. The reserve in the treasury is
now only little over $50, 100000. 1t is
not supposable that the banks bid
ding for the bonds intend or intended
to draw down their own reserves he
yond the point which would leave them
ample security. All this vast
amount of gold standing ready
to be exchanged for bonds is in
the country. but not in active cir
culat1on, simply because of the dis
turbed and unsatisfactory condition of
our currency
1t is perfectly clear that if the
greenbacks were provided fer. if
they were retired as they ought to
be, or even if a law were passed all
thorizing the secretary of the treasury
to hold them in reserve whenever maid
In in exchange for gold, instead of n
contraction of the currency we would
have an actual expansion. The s1O0. Oo0.-
600 of gold, which has been established
by common consent as the minimum
consistent with safety in the treasury.
would be released, and so would the
sums now boarded by individuals in
safe deposit vaults and elsewhere in
view of the possibility Of a gold pre-
MUM at some time in the future.
The assumption Of a scarcity of gold
is entirely exploded by these facts.
There is plenty Of it in the country,
and 1t would be drug in the market
from the moment that our monetary
system was So remodeled as to make