The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-11-16
TREASURY To BUY BONDS.
SECRFTdRY GAGE COMES TO THE
RELIhF or THE MONtY MARKET.

He Announces That the Treasury Will Pur-
4per Cent. Funded Loan OF 1897 or 8 per
Cent. Loan OF 1894 mt Market Prices.
WARRINGTON. Nov. 15.-The Secretary OF tho
Treasury announced to-day tho intention OF
the Government to purchase bonds to the
amount OF S25,000O0O. The object OF the pur-
chase Ii to relieve the tightness OF the money
market. particularly in New York. although
this purpose In not declared In the following
public circular issued late this afternoon:
TREASURY DEPARTMENT
WABHINGToN. ID. c.. Nov. 10. 1870.
The Treasury Department announces its
readiness to purchase any part or all Of $685.
ooO.ooO in Government bonds ofthe per cent
funded loan OF 1907, or the 3 per cent loan
OF 1904. at the prices below indicated:
The per cent. loans OF 1907 will be received
and paid for at 112.7 10 net. The por cents Of
1904 will be- received aud paid for at III net
Bonds OF either class. or mixed offerings OF
both. NAV be presented at the sub-treasuries
In New York, Boston. Philadelphia. Baltimore.
Cincinnati. Chicago, NJ. Louis. New Orleans,
and san Francisco
The above PROPOSAL to hold good until close
OF business on Nov 30 instant. or until tho
amount OF S25. 100000 shall have been secured
II prior to that date l.. J. GAGE, Secretary.
The prices at which the bonds will be pur-
chased are the market values Of Yesterday.
Nov. H. The Administration decision to
make the purchase was reached rather sud
denly. as IL was officially announced after the
meeting OF the CablIct yesterday that no i'm
mediate necessity was recognized for extend
ing Federal aid 10 relieve the financial strin-
gency Secretary Gage has said repeatedly
within the last three weeks that no purchase
OF bonds was contemplated at present. AMI II
was believed that no emergency wurranting
the measure would arise.
To-day he received some further advices
from New York regarding the bank situation
and In the afternoon he went over to the
White House and had n talk with the Presi-
dent based on his latest information. This
information WAS that. although no disaster or
panic was in sight, the Government m ight ac-
conf lish In a few DAYS what would require
some weeks to accomplish by natural means.
1t was represented that the Treasury now has
In Its vaults more money than II has had for
long time. and that the unusual surplus OF re-
ceipts over expenditures mud" II feasible
for the Department to extend the relief
which II would have been very difficult
to have lent at any time during the last seven
years. Despite the heavy war expenses. the
excess OF receipts over expenditures has stead
lily grown almost since tho beginning " the
current fiscal year. until to-day the Treasury
suplus reached 81. 7aT $40.
1t 10 expected by the Treasury officials that a
deficit will result from the proposed purchase
OF bonds. but thcro had been IA deficit for
many years. prior to July last. and 1t IL be-
lieved that the coming excess OF expenditures
over receipts will be merely Temporary
Secretary Gage said tonight that ne had NJ
doubt the offer OF Federal relief by the money
market would be readily accepted. Whether
S26, 600, 900 worth OF bonds would he offered
renalned to be seen. but the Government was
ready 10 buy to that extent and would do so
without embarrassment The Secretary
thought II was matter Of qualification that
forkhe first imc in nearly a decade the Gov
ern8e In nble To buy bonds without feeling
the drain on the Treasury. and he called at
tention TO the fact that the very need OF relief
at present ~ du" TO an un.Hsmpled state OF
prosperity throughout the country. requiring
larger volume OF currency.
A report that the Secretary was likely to buy
bonds had u decidedly bulls effect upon he
stock market IN the closing deal ngs ve,irr-
derstood TO have made offers o. b ocks Of
Government bonds to tho secretary several
DAYS ago; AZ the same time II is understood
that the local banks have generally taken the
Secretary, instead Of buying bonds. to
allow the banks to retain on special deposits
2 larger amount Ot internal revenue receiptS.
In anticipation that his might he done. II WIS
said Yesterday many Of the banks have been
trying TO arrange to borrow Government bonds
postts. The mark"t Tor Government bonds
has been strong 10 the past few lays.