The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-02-15
OVER And OVER AGAIN
HOW THE "ENDLEss CHAINv OP-
CRATES ON THE TREASURY.
Gold Deposited at One Window
Drawn Out at Another to Pay for
the Latest Issue of Bonds.
OUTLOOK NOT ENCOURAGING
LITTLE PROSPECT THAT THE RE-
SERVE WILL REACH 800, 100000.
Another Call for Bonds Predicted by
New York Brokers, and Customers
Advised Accordingly.
TALBERT SCORED BY HARDY
SENSATIONAL INCIDENT At THE
NIGHT SESSION OF THE HOUSE.
A. Member from south Carolina and
His State strongly Denounced
by the Indianian.
TALBERT SCORED BY HARDY
SENSATIONAL INCIDENT At THE
NIGHT SESSION OF THE HOUSE.
A. Member from south Carolina anJ
His State strongly Denounced
by the Indianian.
,ecial 70 The rndianapolis Journa,.

Special to the Indianapolis Journal.
WASHINGTON, Feb. 1.-THE bill intro
duced by Representative Dockery, providing
that hereafter legal tenders shall be
deemed at San Francisco and at ST. Louis,
instead of New York and San Francisco,
has value, of course, for there is no
likelihood of its passage. Mr.. Dockery
seems to argue that New York bankers
will not draw out the gold IL
it costs them as much as
81 per 1000 expressage to bring it to New
York. But the bill deserves passing mention
because il shows that "endless chain game
is again being worked on the hapless and
helpless gold reserve. The incident at the
New York subtreasury a day or two ago,
when the subtreasurer. Jordan, peremptor-
lily ordered one Mr. Zimmerman OF the
firm of Zimmerman & Forshay, out of the
building because he was simply drawing out
gold from one window and handing it over
to customers to deposit 1T at another win
dow in payment for the new bonds, shows
where the gold is to come from TO pay
the bonds. Nor is this the action of an
irresponsible firm of curbstone brokers. The
firm ranks high among the moneyed men Of
the street and there is no hope for believing
that its course is exceptional. The circular
issued by the firm a. copy of which has
been obtained by the treasury officials, in
which customers are gravely advised to dis
pose of their bonds and prepare for
new issue, has produced a most disagree
abls impression, and that impression is all
the more disagreeable because it is be-
ginning to be feared that the circular is
only forestalling what viii ocur.
The gold reserve is gradually dwindling
and as none OF the gold Withdrawn is be-
ing exported there can be no doubt OF its
withdrawal being solaly a stage of the end
less chain movement. OF which the Zim-
norman incident in New York was the open
expose. The Withdrawals for the last four
days have been over four millions. The
reserve stood on Feb. s, The day after the
opening of the bids, at 81, 100000. 1t grad
ually decreased until the former low level
of 81, 100 would have been reached had
there not been some advance deposits OF
gold made which swelled it to about $65, ,000 :
900. 1t IS estimated that by Saturday Feb.
Is, the reserve will stand at SO 000,0Cu. Treas
ury officials are now figuring that no small
proportion of the gold will come from the
reserve and have abandoned all hope that
the reserve will ever at any time reach the
100000 limit.
Experts not connected with the treasury
roughly figure out the situation on these
lines: There are 100 days in which to pay
for the bonds. Gold to the average amount
Of half a million will be withdrawn every
day from the treasury to pay for the bonds.
Deducting these $50000,00O thus withdrawn
from the 100000, ,C0d paid in will leave si0,-
600, 900 net gold obtained from the sale And
to these forty millions. the $i7,O0O 900 in the
treasury when the endless chain began, the
total amount of gold obtained will be about
SS7, ,O1D, ,O00 or considerably less than the nor
NAL amount of the reserve. But the bonded
Indebtedness has been increased by 100000
Co., This nasty calculation does not take
into account the premium which the govern
ment has received for it's bonds, but, on
the other hand, it also does not take into
account the gold that will be withdrawn
honestly for export. No valid reason exists
for believing that gold shipments will CON
siderately cease to enable the reserve to
swell up. ON the contrary, the fact that the
endless chain is again at work will
serve to stimulate foreign shipment. Mr.
Morgan has. it is understood. very thought
fully promised to help the treasury out by
| depositing all the gold for his allotment
Of bonds at the earliest date, without wait.
| ing for the date fixed for payment. but thai
| will be only an apparent aid to the treas.
ury. Incidentally there is belief here
| that Mr.. Morgan will obtain more than his
| original award. since it is expected that a
| number of bidders will default, all of whose
| alotments will be given TO Mr.. Morgan.
| The hostile attitude of the Senate toward
| the tariff-revenue bill as indicated by the
| decisive vote by which the Senate, on Thurs
| day refused to take up the bill, will not
| tend to restore confidence and there is onl,
| too much reason to fear that the predic
| ton of the New York firm of an eventual
further issue of bonds may prove to have
i henn correct.