St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-01-07
GOLD IN TUE BANKS.
BOND SYNDICATE LIKELY TO Sc
CURE ALL OF THE NEW
ISSUE.
PUBLIC BIDS WILL BE FEW.
NOT ENOUGH GOLD IN GENERAL
CIRCULATION TO INSURE A
HEAVY CALL.
COMMENT ON THE PROPOSITION.
Republicans as Well as Administra-
ton Democrats Approve of
the Move.

WASHINGTON, Jan. Cup to the
time of closing the department today
the treasury officials had received only
a few kilograms concerning the new
loan, and these were not Of a char
acter to indicate how the announce
ment had been received throughout
the country. Although the president
was constrained to make this popu-
lar loan SO far as possible by solicit
ing individual subscriptions, Is is un-
derstood that neither he nor Mr.. Car
Isle place any reliance in its success
except through the aid Of the syndi-
cate, not because Of any lack Of con-
fidence, but for the reason that the
gold Of the country Is very largely in
the hands of the bankers, who are un-
willing to part with it except to their
own material advantage, especially at
this time, when it is at premium.
The announcement last night that
the secretary Of the treasury had asked
for bids for a bond issue of $100, ,O00-
900 was something of surprise to the
subordinate officials of his department,
as no intimation of the purpose had
been given to any one 1t is quite
probable that no one here, outside Of
the president and probably Secretary
Olney, knew Of Secretary Carlisle's
intention. Indeed, it is believed the
conclusion was not reached until late
yesterday afternoon. The new bonds
will not differ in any respect from
those issued to the syndicate, and such
as are needed after the supply now
on hand has been exhausted will be
printed from the old plates. Persons
well qualified to judge Of the result
of the issue do not look for large SUBJ
scriptions from private individuals
and the opinion is expressed that the
syndicate's bid for the entire issue
will be accepted. It is recalled that
private subscriptions to the first loan
of $50, 100000 amounted to about only
$45, 900, and to the last loan but lit
tie more, and as the bid submitted by
the syndicate contained the condition
that they be awarded the entire
amount or none, it left the govern
ment little option in the matter. The
last issue resulted in the payment into
the treasury of $65, 1924 in gold, for
which the government issued per
cent thirty-year bonds to the amount
VI 9UE, fUU Ilc premium IedIZSu
by the government, therefore, was
$2,SOO,S44, or .O4494 per cent, the in
vestor realizing a rate of interest of
about .0375 per cent.
The market price of these bonds is
now about ia. The treasury now
holds legal tenders to the amount Of
STAT ,495, ,175, of which $115, 1926, 140 are in
United States notes, $2,S45OOO in cur
rency certificates and $22, ,440,211 in
treasury notes Of 1890. The amount
of legal tenders now in circulation is
$37S, 1877 642, as follows: Treasury notes
of 1890, $115, 726, 769; United States notes,
$230, ,S55, 1878; currency certificates, $780,
653,S3 OF the amount of legal ten
ders in circulation, the 1921 national
banks on Sept. 2S last, the date of the
last report, held $143, ,S66,6S5 the re-
mainder being held by state banks,
trust companies, saving banks and
private banks, aggregating in number
10,038, and by private individuals.
Senators did not seem disposed to talk
about the bond call today. Demoratic
senators generally were non-commit-
tai. Senators Harris and Vest, both
members of the finance committee,
said they had not read the call, and
had nothing to say. Senator German
said that the call was all right, and
was the same as the first two bond
issues by this administration. There
were not many Republican senators
about the capitol. Most of them were
reticent as to the call. Senator Nor
rill, chairman of the finance commit
tee, said that there was nothing to
say about the call; that it spoke for
itself Senator Teller said he was
gratified that the president had decid-
ed on a popular loan, and he had
no doubt the people would respond in
a way to justify the course decided
upon. Mr. Teller did not believe that
the entire sum of $100, ,000,0 600 asked for
would be necessary For himself, he
did not consider that any bonds were
demanded, and he thought that even
from the presidents point of view a
smaller sum than $780, $1,000 would be
sufficient.
SURPRISED THE HOUSE.