New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-27

rates so high as To make IL Improbable, they doubt
less will. With exchange at 10i, and the Bank OF
England rate OF discount at present. the importation
of gold very prontable but the Bank Of England has
already raised Its discount per cent and will
doubtless continue raise until they stop the
DRAIN In England they regard with jealousy any flow
of specie out Of the country. When they once get II
there, they desire to keep IT, and adopt means OF
doing So"
care the shipments of gold now making from En-
gland directly for the benefit OF bankers is the gold
for the account Of exporters of produce I" Probably
most Of IL is imported for the benefit OF merchants but
perhaps OF is for the relief OF brokers loaded with
exporters bIs."
The reporter inquired whether the runor was correct
that his house abOut to issue shorttime notes In
order TO relieve the foreign exchange markeb He an
swerod that they had discussed the subject OF Issuing
3Oday notes. be taken by the banks for the relief of
foreign exchange but he did not know that the banks
had taken any action the subject though he had no
doubt 1t had been agtated in many bank parlors IL
was q delicate subject TO urge 10 speak about;
and they quito indifferent about It, except from
desire 10 relieve the market. Loanng their credit on
paper was somewhat dangerous thing in these times
Mr.. Segman OF No. q Broad-st. asked substan-
TALLY the same questions He said that the balance
between purchases and sales of foreign exchange gen
orally Ye preserved. The trouble Is not That brokers
are loaded with exporters bills 10 any considerable
extent but merchants cannot raise the money to
pay for bills, and cannot obtain them on the de-
post OF securities. The importation Of gold will tend
to relieve exchange when the bankers receive the
gold they must utilize it by the purchase OF bills OF
exchange. private dispatch had been received by
him few moments before to the effect that 45OOOOO
o. 100000 had been drawn from the Bank OF England,
yesterday, 10 be shipped by to-days steamer Inc
effect of the panic in NewYork very bad in Europe
Private dispatches say that American securities are de-
preciating very fast. Touch John Bulls pocketbook
and you touch tender point They will do all
they to prevent the continued exporta-
ton OF gold, but it will be bought as
long as it can be with a profit. The Bank
of England has already raised the price OF
discount and the Governors OF the bank to meet to-
day 10 take further action. They viii raise the discount
rate to ten per cent they can't stop the drain In any
other way and Mr.. Seligman was doubtful II they could
stop it even then. at is bad state OF AFFAIRS ne
added and don't see where It Will end. think the
banks will have to issue certificates dd in
fnitum. There must be stopping point somewhere,
but 1 don't know where 1t will be-"
The reporter asked him what he thought OF the issue
Of shorttme notes. He said that they would afford re-
lief the banks would take them and they would serve
as substitute for much money but he didn't believe
Brown Brothers would issue them they were too con
servatve house and didn't believe in running In deot
The trouble with the houses that failed their heavy
debts During the Winter aud Spring many deposits
were made, and when the regular Fall demand came
increased by the effects of the panic they we're
compelled to co down. His house tried to keep pretty
even balance the purchase and sale OF CONNER
ca notes. though probably during the past few weeks
the purchases have been the heavier
John j. Cisco told the reporter that he did not do
large business in exchange only dealing in 1t as was
necessary for the accommodation OF his other business
The stanatiOn in the exchange market Is due 10 the
simple fact that exporters cannot get money. Inc
crops were never good, the demand was never so
great and prices so high, but there is dead
lock in shipping from want Of money. The merchant
may draw his bill and attach his bill OF lading as sec
itv but he can't get exchange simply because brokers
haven't the money such security is better than an
ordinary brokers' BILL because there is the cotton or
grain or other produce behind It but tho money can't
be had This must continue till there is relief In the
money market There no balance of trade in our
favor though the natural course OF trade would soon
have placed the balance on side Expectations are.
or ought TO be- very heavy and impOHauOns are very
light The condition of legitimate trade healthy but
the present importation OF gold is unnatural aud VIII
create a panic on the other side. 1t may afford tenn
porary relief, but an evidence OF an unhealthy state
of things.
Mr. Graham. OF the firm of Duncan, Sherman & Co.,
said that they had heard that 81 OO0O sterling had been
drawn from the Bank Of England, yesterday, for ship
ment to-day. II to come to the Bank OF Montreal
When IL comes 1t must turned into bills of exchange
and returned form to the relief of the exporters
The balance trade has been against and we have
made il up by shipping railroad bonds The importation
of gold is unnatural and IS result OF the abnormal con-
don OF things in the city; though at this season of the
wear the Of trade ought to be in our favor as we
are shipping Tor ought to be shppng) large amounts OF
grain cotton pork, petroleum, &c' and are Importing
very little trouble with exchange has been that
exporting could not sell their commercial
bills and obtain money pay for and move the crops
Brokers have not had the money to pay, and have
waited to sell before buying prices have been unset
tied that they would not have oeen willing TO take long
risks even If they had had the money. The export OF
Gold from England will not continue long, il will be
,toppsd by the Bank OF England.