New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-16
INFLUENCE OF GOLD.
STOCKS RESPOND TO VARIOUS REPORTS
BANKERS DISCUSSING THE SITUATION WITH IN.
CREASED INTEREST.

BANKERS DISCUSSING THE SITUATION WITH IN
CREASED INTEREST.
The feeling caused by the decision Of the Cabinet
at Washington not to issue Government bonds at
present made OF 10 some extent by the bears
In Wall Street yesterday. The stock market opened
weak and vigorous attack made upon OF
the Industrial shares. Loans were called to a large
amount. ana some long stock. it was reported, was
forced out OF the hands OF holders. There was most
activity In American sugar Refining Company stock.
The first price was 129 "a against 80 Ia at the close
Tuesday. and the decline not checked un;ll
l2G IA reached. The closing price
rally to lis Ia. National Cordase stock
sold down to g. and at 80 Is at the close, showed a
net loss OF Is per cent. The general railway list
did not suffer much depression, and in the late trans
actions the bears covered freely with the result Of
leaving prices instances higher than Tuesdays
final quotations.
The rally in the stock market was induced by
that the subject of fresh issue of Govern
mcnt bonds had been rcopcned at Washington. 40
confirmation Of this idea could be- obtained from sub
Treasury officials, and bankers had positive adIiccS.
j. Pcrront Morgan, of Drexcl. Morgan d Co.. went to
Washington late Tuesday night in response II said
to an invitation to discuss the financial situation.
This could not be- confirmed. J. Hood Wright OF that
firm. was gathered into the net OF the Panama Canal
investigating Committee and when asked for informa
ton regarding Mr.. Morgan's visit 10y Tribune
porter he declined to make statement the plea
that he had been pumped dry" The attitude OF
DreXcl Morgan Co. on the question of bond issue
by the Government cannot BE- one of the
rumorS in Wall street TO the effect that A. }.
Drcxel. Of the Philadelphia house Of DrcxcI a co..
had also gone to Washington. presumably on the same
mission that carried Mr.. Morgan there. Other news
cheering 10 the temper OF financial circles consisted
Of reports from Washington that Mr.. Carlisle, who will
BE- Secretary of the Treasury under Mr.. Cleveland,
was working In harmony with secretary Charles
Foster and senator sherman the legislation
h, Mr. ,t,ft, l.,x.
TO issue new 3 per cent bond
An Interesting point discussed by bankers and
brokers Is the probable effect the rates for money
Of large issue OF Government bonds The bear
speculaors have been scduously ouvating the idea
that such an issue would monetary srinscncy.
some Of the bank presidents who were prominent in
the action last week to leve the Treasury of the
strain OF meeting the gold exports of that week cX-
plaiLcd that any diihoulty in tile money market |
could b. obviated by plan something likc this |
Let the Government sell any bonds TO syndi |
cate OF banks, which hold the gold for the com |
munity. stpllnng for payment In gold. The banks |
could credit the Government with ia" amount Oh their
books the Government retaining the bonds col |
lateral security, and delivering them and getting gold
from the banks only needed 10 keep The Treasury |
at "A safe figure. The banks then would not
be required to call loans. they would keep thel |
reserves intact receive the interest the bond.
thereby deriving benefit from otherwise id!e sum |
Of gold. A. the banks were called upon 10 take up |
the bonds sold TO them. they would part with THEN |
gold but they could then use the bonds As II bass
Tor additional circulation, could sell them 10 I'm |
weston, Tor legal tender, which would effect replace
mcnt If their reserves"
10 the question whether the banks could saf"l, |
part with their gold to cAtcut required in bond
issue the reply is made Emphdtically. yes. for III
reinforcement of the Treasury reserves would alA |
anxiety. postpone thc evil effects Of silver imitation
and give plenty IT time FOR a renewed effort {" |
secure the repeal OF the silver lurchaS" law
No gold exchanged for legal tenders at I'll" |
sub Treasury yesterday The Impression anon. |
bankers Is that The movement In Til, direction IS M
an .nd. There arrangements made for t' |
shipment Of gold 10y SATURDAY French steamer but |
In foreign exchange circles 1t Is expected that from
s:..Oo0,OOO - s5,OOo0oo Will be- exported on sat |
urday. II /, hot probable that more than sj00o.0o0
viii be intru,cd to one steamer but the demand IN
exchange bill, strong enough 10 Indicate TIE |
need Of even heavier shipments.
The North German Lloyd steamer Ebe which sailed |
yesterday for brcmep carried the following shipments
~ gold: II .OO0.oOD by Ladcnburs Ihalmann a CO.,
100000 by IaIing. Mafoun y co.
oomc Of the Views OF BARRIERS and business men |
follow:
Bruyton Ives, president Of the Western National |
Bank said d" / do not believe that President llarii |
son will c'nscnt to an i>su" Of bonds. II IS natural
that he should not Wish 10 take such step In tie |
last DAYS Of his Administration. winch might commit |
The benefit 10 be derived from such an issue would
b. 1T best only temporary We must, of course. keep
up the parity Of gold and silver. but So" no reason
why the payments. If necessary should not b" mad"
from the 100000 900 gold reserve. II Is perfectly
legal, / think and the on trouble : the impairment
Of public confidence that might follow. one Of
the few bankers believe who doubt the authority
Of the Secretary TO issue bonds. do not say Il" has
not the authority, but have grave doubts about II.
believe eau tide over the present trouble well
have past crises ~ similar kind. and 50 long
the present silver law Is la force the danger Will
remain, and any such relief the proposed Issue Of
bonds viii be- only Ike putting II cooling lotion on HI
arm when the bullet Is still IN the wound
+. X. Wright. president Of TIE National Park Bank.
said al think bonds will have TO be issued either by
this Administration or the next sone hing mast
be DONE but the benefit OF course. will be only tenn
porary The trouble Is the present foolish purchase Of
silver. II the silver law shoIll be repealed AMI
bonds issued the bond, would form the basis for II
stable bank currency which would lake the place q the
silver and would be a better curr,ncy sucl Issue
would be- OF special advantage 10 Though
National bank. have notes issued against our
bonds. 1t is our right 10 have The interest Of all
banks everywhere is to have n sound currency do
not think We shond ct away from the gold basis or
reduce gold reserves
Frederick y. Tappcn. president Of the Gaatln Ma
Bank when asked II the banks would cont ributc
more gold the Urea re-crYc. said &" ! do not
think thai any OF the banks will assist the Secretary
OF the Treasury in maintaining the gold surplus above
the 800 900 900 No meeting OF the Clearing