The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-09-10
TREASURY TO BUY BONDS.
Secretary Gage Takes Steps TO
Avert Monetary Stringency.

VIII Purchase Twenty Million Dol
lars for the Sinking Fund-Inter-
nal Revenue Receipts to lie Direct
ed Into National Bank DepOsitOries
In order 90 forestau any serious strin-
gency Of money in New York and other
centres. the Secretary Of the Treasury
has decided to purchase bonds TO the
amount of 100000 on account Of the
sinking fund and to divert the incoming
internal revenue receipts at New York
into the national bank repositories TO the
extent OF about S5,o50,o50. Some action Of
this kind was expected at an early date
surplus reserve in the New York banks
and the fear that ,he shooting of Presi-
dent Mckinley might create unpleasant
conditions in the money market under the
circumstances. The action Of the Treasu-
ry Department is, formally. a response 20
a letter sent Secretary Gage yesterday
by F. D. Tappau. Chairman Of the Clear
ing House Association. which pointed out
these features Of the situation.
The Official order regarding the pur-
chase Of bonds for the sinking fund is as
! follows:
The Secretary Of the Treasury here
by gives notice that he viii receive
and consider proposals for the sale TO
Llt Government, on account Of the
SINKING fund. Of United States 3 per
cent bonds. loan OF I9-S-IgIS; per cent
buulS. iunded loan OF 1871. 4 per cent
bonds, loan of 1925. and . per cent
ponds, loan Of 1904. TO an amount not
exceeding S21"H,O09 Proposals should
be submitted TO the Secretary By let
ter or telegraph not later tran Thurs
day the l2th instant; any ponds ac-
cspted TO be promptly delivered at the
United States SUh-Treasury I'm New
York OK TO the Treasury Department
at Washington
The right to reject any or all pro-
| posals is expressly reserved
Il J. GAGE, Secretary"
/ This order was sent to Mr.. Tappan this
morning accompanied by the following
memorandum:
Recognizing the unfavorabIe influence
upon general business affairs Of a con-
/ tinued absorption into the public Treas
/ ury Of revenue beyond expenditure.
( have directed shat incoming internal rev
I enue receipts be- placed with national
: bank repositories until balance with
each is reached equal % the par value Of
/ the bonds held as security from such de-
/ positories. This viii divert about $780,
I 600 from the Treasury vaults.
The Secretary viii today invite propO-
sails for the sale 20 the Government Of
sz'l10e13 Of United States bonds other
! than the new twos II is believed that
/ these steps viii obylate the otherwise
possible en.barraszments which are point
] ed out IN your telegram Of yesterday
MI returned 20 Washington from
huIaio this morning. During his absence
from Washington the Secretary WAS in
communicayion with leading hnancfers OF
{ new YORK and the policy announced this
morning IS the result Of these confer
eHceS- me fear of a stringent money
market is not acute. but the Secretary
oeAeFes that the circulating medium Of
the country should not be allowed 20 sc-
cumulate in the vaults Of the Treasury
The available cash balance in the Trees
I uTy has been growing rauidIv and ~.
gain since August IS is nearly S. aaaC50
the balance reaching the enormous s-rr7
/ OF SlN-,'>p.6sI at the close Of business YES
terday.
The Treasury surplus IS also very large
I AT the beginning of the fiscal year on
July IL was predicted that there yvor,d
/ Dee deficit for the first two or three
months on account OF the large expeDdi-
lures always incident TO the early part Of
ne" fiscal period Far from fuIfUfD-
this prediction the daily receipts have al
most uniformly exceeded the expenditures
unili Al the close Of business Yesterday
the surplus amounted to s. 22I. 800
Assistant Secretary Allies said this
morning that the tendency toward string
! ent money in New York should b,. Offset
10 some extent by the fact that the Treas
uFy mas within short time disbursed SIS
100000 IN gold in New York on account Of
purchase OF gold dust and bullion on the
racine coast. as against SS.00oDo0 in gold
Sehi 20 interior points ia the country.