New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-07-16
NO GOLD ENGAGEMENTS.
FOREIGN ORDERS TO SHIP CANCELLED.
FREER SUPPLY OF FOREIGN EXCHANGE-THE
BANKS WILL NOT IMPEDE LIGHT
NATE SHIPMENTS

MATE SHIPMENTS.
Contrary to general expectation in banking circles
there were no engagements OF gold yesterday Tor snip
ment to Europe. The common impression had been
that nj least 100000 would be shipped To-Day
The absence of engagements was cause Of congratu
Iation among bankers. The houses which had ex'
pectod TO send the gold abroad had instructions can
ceiling previous orders The reason was the easier
tone in the foreign exchange market, caused by
more plentiful supply Of bills drawn against snip
ments Of merchandise to be made later. IL was sau
I'm banking circles that there many bills now In
sight and it Is believed that the supply Will increase
from now There are some bankers VINO Dei'eNc
that the ,ph export movement has culnlna'M ioi
the season and later the tide will doubtless turn t'"au
American shores. the produce and grain hecueu ny
Europe begin 10 10 forward. The defeat OF inc oNer
Free Coinage bill In Congress. II Is believed VIII go
far toward allaying foreign element OF disruN1 I"
the financial situation here, which may nave U'c'
factor in drawing American gold TO Europe
Most bank officers yesterday rcpudiatcd me pup
llsed reports that concertcd effort had been made to
impede the shipment Of gold by Withholding ordinary
facilities from shippers. 1t admitted thnt I'D
some instances the banks had declined TO furnish goo
certificates 20 banking hOnScs by which they c"iio
draw gold from the sub Treasury but 1t was SAID that
In these instances the action was individual ana was
taken to protect the specie reserves where theE I'D"
been largely drawn upon. The banks as "ho'e d'o
well prepared to stand further drain Of gold as their
specie holdings by the report Of the Clearing honsc
Association amounted 10 $7p2j5,4OO. against 800
1888 400 at the pOnding date year ago AZ INC
banks 80 strong, il would seem unwarra'co sceh
ness u endeavOr to throw the burden OF supplying hc
gold upon the United states Tr'0suy whose reserve
IL is the interest Of the financial community !"
strengthen if possible. But the adoption Of plan
bv which the foreign houses wOuid be compelled %
take legaltende notes Treasury notes under The
act of July. 1890, which the Treasury rrdeems IN
gold when requested would preserve the gold reserves
Of the banks at the expense Of the IreasnryS eHa
reserve There was little agreement In Wall Street
with the suggestion put forth that the secretary OF
the Treasury should exercise his option under the law
not to redeem Treasury notes in gold Wien IL was
known that the metal intended for shipment to
Europe Assistant Treasurer Roberts said yesterday
that there was nO change in the policy OF the Govern
ment I'm its treatment Of these Treasury notes.
Frederick d. NppcA president Of the Gallatin
National Bank. denied cnsphatlcally that there had
been any general refusal 10y the banks TO give gV'
certificates to customers who expected 10 snip The com
abroad. lie had heard Of one case where bank h;d
declined to furnish gold certificates 10 shippers because
its specie reserve had fallen low NAT 1t was deemed
wise to strengthen it. Gut there no attempt TO
impede the course of the gold movement. lie EN-
phatically condemned the suggestion that the Gov
ernment should attempt + discriminate In the matter
Of paying Treasury notes in god. such policy Woulo
bavo q harmful effect and he was confident that no
such steps contemplated.
j. Edward simmons, president Of the Fourth Na'lOhnI
Bank said:
"There has been no concerted action on the part
OF the banks to prevent shipments Of gold There
isn't much patriotism In trade bat every good ctpch
shoud try to do everything In his power to protect
the financial interests Of the country. Generally
epeahng the ebb and flow OF ID TO and from This
country Is regulated by the laws of trade than 10y
the arbitrary action OF banks bankers When there
4 a natural flow of gold artificial means should be
used to interfere with 1t. II is true that the amount
OF FREQ gold the vaults of the Treasury IS less than
II has been since the war. and the recent shipments
OF gold have been regarded by many as abnormal ana
excessive for this season Of Inc yen. II is generally
believed that the gold going forward Is In pay
melt Of a legitimate balance Of trade against u.s. just
how this balance has been created 1t IS difficult TO say
1t Is alleged by that the agitation OF the silver
ouest1on In our National Legislature has caused our
foreign security holders 70 believe That We are in danger
of going on silver basis. and they have converted
their American Investments into gold. The recent
refusal Of the House Of Representatives, to confirm the
action Of the Senate In relation to the Free Coinage
hill; the splendid move the part Of Senator sher-
man by the Introduction Of q bill Which contcnplaes
the repeal OF so much of the socaed sherman act OF
1880 as relates to the purchase Of 100000 ounces
Of silver a month, are so reaSSurng that II seems to
me that the pessmistc ideas Of Over-conservativc
people will be fulfilled by The entire cessation OF gold
shipments.
at is absurd to think for one moment that the
100000 gold IN lis possession. such action by the
Secretary Of the Treasury would undoubtedly result
I'm expression OF indignation on the part OF the
people at the polls. do not believe there is any
danger OF suspension Of gold payments by the United
States Government We are at peace. We hive
gained the admiration Of The world BY the rapid and
unprecedented extinguishment Of our great war debt.
The credit Of the rnited states Is high II nOt
higher than that Of any other nation IN the word.
We are suffering from surplus OF products OF every
description. We have inst passed through a period Of
liquidation, and mercantile business is sound
basis. Very shortly there will be a return flow Of
gold 70 the Treasury and IN" reserves will be
strengthened sufficiently 10 aay all sollcitude."
Henry W. Cannon, president Of the Chase National
Bank, has been quoted rs advocating the refusal Of
the Treasury to pay gold Treasury notes when the
coin is intended for export To Tribune reporter
Mr. Cannon defined his position as follows:
AZ have always maintained that II absolutely
necessary that the money Of this country should be
nterchang cable at par and should not advocate for
q moment that tho Treasury decline TO pay ont gold
coin for Treasury notes legitimate demand. In
my opinion, the proper way TO prevent the shipment
Of gold abroad is TO have concerted action the part
Of the lenders OF money this city. I. e. banks and
trust companies, that the rates for money be
increased to q point where foreign bankers can do
better BY selling bills Than 10y Shipping the coin This
would require the concerted action Of money lend
ers and have grea, hopes that at some time Or
another such an arrangement eau be made bv the ap:
pointment OF committee or ouciMi>c. 50 lar rs
am iSormed therp Is no concerted ,ction Oh the part
of the banks I'm declining furnish gold for foreign
shipment, but. for tho last two weeks most Of the
banks have taken such course without having had
Is possible that II the Treasury declined TO pay gold
Treasury notes II would create feeling abrIad
I do not think II would necessarily put gold IA a
premium 10 this county or cnhsc heavy shipments.
Ii seems to me, | have raicd before That them
Y no reason Why the BANKERS in this country and the
Treasury officials should not use ev'ry Legitimate
means 10 protect their store OF gold as /, now being
done by the other principal nations trust that II
VIII not be necessary for the Treasury to pay @t
silver coin for Treasury notes FOR u long time TO
come but the law Is clear and distinct this point,
and IL Is possible that at future time II heavy
shipments continue, snch would hive q ton