The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-05

Col. Gordon Makes a Few Practical
Observations.

The Gold Shipments Not Entirely Re-
/ sponsible for the Present Depression
/ IN the Money Market-Causes Which
Led Up 20 the Necessity for Them.
/ Col. Gordon Refuses to Talk About
the Central Railroad Reoeivership.
Col and Mrs. w. w. Gordon returned
| yesterday on the City of Birmingham
/ from New York, where they have been
spending some time with the family of
/ their daughter, Mrs. Parker. Ms. Low
left for her home in England few days
! ago on the Teutonic.
Although not in the metropolis on bus
mess, Col. Gordon had ample opportunity
of viewing the financial situation, as it OK
lists in this country, at its very fountain
head. He was greatly impressed, and,
from his observations, came to the con
clusion that the heavy gold shipments
were not wholly responsible for the exist
ing state Of affairs, but that there were
other causes that operated just as much
toward financial depression, if not more
so.
THEY ARE BADLY SCARED.
"They are badly scared, " he said yes
terday in speaking of the situation. In
fact, don't think I have seen financiers
troubled so much in years.
Whatever the popular impression may
be" continued Col. Gordon, 1.-The gold
shipments are not altogether responsible
for the present state of affairs. Ofcourse
the balance of trade is heavily against us
We have bought from abroad more than
we have sold, and this is the direct cause
of the shipments of gold. As long as
there are no products with which to pay
for what we buy, of course we must pay
the difference in gold.
But the causes which led up to this
state of affairs are responsible for the re
suit which is now being felt so largely.
There is no cotton at present to ship, and
all the wheat there is in the country is
tied up in vast speculation out west,
aggregating SIS, 100000 or 10000, 900 1
asked prominent fnancier in New York
the other day why they didn't break that
could be obtained for ship
ment He replied that it would
not amount to much, as it involved only
about $15, 100000 But that at least would
afford a temporary relief of three or four
weeks, as it could be shipped in exchange
for foreign products instead of gold, and
a temporary relief at the present time
WOulu D6 VI IL BEbdb advantage.
HAVE SPENT TOO MUCH MONEY.
"The trouble is the people have been
spending too much money, and now that
it is scarce many of them are holding it,
not knowing at what instant it may be in
imperative demand
Another cause for the shipment of gold
arises out of the failures of the Austria
liam banks, involving about $500, 900 600.
This has created a depression some
what similar to that caused
by the Barring failure. 1t has
made money scarce in London and
there is a heavy demand for it there. The
consequence is the Bank of England has
raised its rate of interest to 81 and 4 per
cent Where people can get that rate of
anterest for their money of course many
of them will send it to England and lend
1t out there. This action has probably
drawn heavily upon American gold
Il see no reason for any great fear in
the situation, however. OF course as long
as the balance of trade is against us we
must pay the difference in gold, and at
present there is very little to export. The
tide will no doubt be stemmed or turned,
however, when large quantities of cotton
or wheat are put on the market for ship
ment."
AS TO THE CENTRAL RECEIvERsHIP.
els it true that you were asked by the
Terminal people to allow the use of your
name in nominating a receiver before
Justice jackson, as was reported" Col
Gordon was asked.
LAS to that don't care to talk either
one way or the other. l saw the article
making such report and also the denial
by Vice President Rutherford. l saw no
railroad people on any business whatever
during my stay in New York.
E"I'hn fact is the DpOnla in Na1v Vn,.ly
know very little about the Georgia Cen
trail as very few OF them hold any secur-
tiles of the road. Only those who have a
direct interest in the road know much
about it. They are interested, of course,
in the reorganization of the Terminal and
also of the Philadelphia and Reading rail
road, as many New York people are large
holders of securities in those companies,
but the Georgia Central is rather far
away for New York people to take lively
or an active interest in its affairs.n