Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-10-17
THE PIRATES CONSPIRACY.
Whas TIE Ne,r York. Bankers Propose to Dc
With Sherntan---4 Series of Startling
Hassaors In Financial Circles.

What the Ne,v York Bankers Propose to Do
Nth Shesman---A Series of Startling
R,a,ssors In Financial Circles. i
Washington Special (Oct. 14) to Chicago Tri-
bune.
Secretary Sherman, with United States
Treasurer Gilfllan, have gone to New York
to be absent four or FIVE days. There are
some important financial rumors here aris-
ing from the visit. Without vouching for
their accuracy, these rumors are herewith
given: The fact that the treasurer drew up
on the New York syndicate bankers for
100000 last week, and the rumor that
another draft is to be made this week for five
additional millions said to be due the gov
ernmsnt, has caused sudden and consider
able rise in the gold market. In connection
with this rise there are suspicious that a
powerful combination has arranged to lock
up legal tenders and to create panic in the
market. The National banks, too, in New
York are
FEELING VERY UNFRIENDLY
towards the treasury department at present
on account of the action of the department
with respect to the order charging the banks
for the transportation of currency to Wash
ington for redemption. Indeed, it is stated
that the banks are so much incensed tina.
they have declined to send any currency here
for redemption. The order making this
charge is regarded by the banks as unreas-
enable, as calculated practically to defeat the
law organizing the redemption agency, and
as having no real object except it be to lock
up $4,000, 900, possibly SIS, 100000, of le-
gal tenders in the per cent. fund SO that
they may not be presented Jan. LIST for re-
demption. Coupled with this is the belief
of many New York bankers that Secretary
Sherman intends to use his $20,OOO,OO0 Of
silver to
BARRICADE His GOLD
on, Jan. l, and to force the payment of silver
out first whenever legal tenders shall be pre-.
sented for redemption. These circumstances
in view of the fact that redemption is but
two months and half off, have created such
conditions in the money market as the rise
in gold, increase in interest rates, and re.
duction of the amount of legal-tender re-
serve held by the banks almost to the
minimum, that the personal attention of the
secretary of the treasury has become neces-
sary.
The friends of the treasury here maintain
that the friendship of the national banks OF
New York City, which alone have O,OOO,OOC
of legal-tenders, is very essential to assis
the treasury department. to resume. Should
these national banks alone be hostile, they
could efectually
BREAK DOWN ANY BARRICADE
of silver, and by the presentation of the lega
tender which they hold absorb all the silver
and on the first day draw from the treasur,
$3.50, 100000 of gold. Persons holding init
mate relations to some of the New York
banks say that these banks would certainly
take speedy steps to convert their legal ten
ders into gold, first disposing of the 500,
100000 which they might be required t.
take in silver to merchants for customs
dues.
These rumors may not have good founda
ton. but there evidently has been enough il
them or some of them to cause the secretar,
of the treasury and treasurer of the United
States to visit New York with the expecta
ton of remaining there number of days.