St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-02-11
EXPORTS OF GOLD.
Wall Street Men Charge That
Much of the Movement Is
Unnatural.
The New York Subtreasury
Gained Nearly 100000 in
Gold During the Week.

New YORK, Feb. 10.-"The continued
expectation of gold by those houses
which have been almost exclusively
identified with the movement for months
past" said James E. keene today, has
aroused a great deal of comment and
much Indignation at the scandalous
abuse of the rights and privileges which
America affords to every foreign house
doing business here. 1t has been known
for months that this export movement
has been unnatural at many periods.
At these times the export has
been palpably the result of an
arrangement which foreign syndicates
or agents of the banks of France, Ger
many or Austria to procure gold from
America by every contrivance possible
to secure the parties engaged in the
business against loss. Shipments have
been frequently made at an actual loss.
and the general expression in Wall
street, which | share, is that these opera
tons have been made successful by OBJ
portuniteS which have been seized To
sell stocks in advance, relying upon the
fear Of such export to put them Ill again
at prOht."
At the subtreasury it was reported
that so far S6,O00,0O0 had been paid in
by the banks, the payment of S2,000,000
today by the Bank of America raising
the total to that figure. Against this
there have been Withdrawals of 50, no.
900 in coin, leaving the subtreaSury
S590,O00 ahead by the action of the
banks. But notices of some very large
shipments next week are already atiOat
in the air, though as yet no regular no.
tification has been received by Sub
Treasurer Roberts. There was a report
that the clearing house was to meet and
take up and sytematize the transfer of
gold from the banks to the government.
There was no such meeting, but the
banks were very busy. Some customers
wished to start special gold ac-
counts, deposits aud payments to
be made either in gold or
gold certificates. Other depositors
wished assurances that they could have
gold on call. The banks could not
grant either of the requests. At some
Of the banks it was learned that iDqui-
ries have been made with regard to the
withdrawal of depositors' balances in
geld, and bankers, in view of the above
resolutions of the clearing house, stat
ed to the persons making the Inquiries
that, under the rules OF the clearing
house, they were prohibited from open.
ing gold accounts, and,aS the New York
banks generally loan their money re-
payable in funds current at the clearing
house, they would expect u pay their
depOSitOrS in kind, and it is understood
that they will generally take this stand.
The banks in this city showed de-
post line last week of S495, SCI, 500. OF
which So, 36l, 800 was in specie. So thew
could not, if they wished, pay their de-
positOrs in gold.
A statement of the whole bond and
gold situation, so far as the government
is concerned, prepared by member Of
the clearing house committee, shows
that tie secretary of the treasury is au-
thorzed to sell United States ) per cent
ten-year bonds, or ~ per cent fifteen
year bonds, or per cent thlrty-year
bonds of the United States to enable
him to continue the redemption of legal
tender notes in coin. While. according
to this statement, the effect of restoring
the standard silver dollar to the full
legal tender is probably such as
to authorize the redemption Of
legal tenders by the secretary
in either gold or silver coin, neverthe-
less since the Sherman act of 1890 es-
tablished tile policy of maintaining sill
yer and gold upon PATTY by the
l Hileu OldtcS' IL dppcdIS, Iuc SIdlCihChG
says, to be the duty of the secretary of
the treasury to retain the redemption of
legal tenders in both gold and silver
coin, ami so long as he anticipates dan
ger in maintaining such redemption in
either gold or silver coin he appears to
have power to sell United States bonds
in order to obtain the gold or silver coin
needed for the purpose. The talk about
the bond issue is not regarded with
favor by conservative bankers. The
stock market has discounted the failure
of the house to take up the Sherman
law repeal. but would not be surprised
if a halfway measure of some sort
should yet be put through.