New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-08
THE BEARS FRIGHTENED.
WALL STREET RUMoRs OF A BOND ISSUE.
REPORTS THAT THE ADMINISTRATIONS HAS

REPORTS THAT THE ADMINISTRATION HAS
PLAN TO MAINTAIN THE GOLD RESERVE.
Wall Street experienced another severe squeeze In
money rates yesterday. There was an active demand
for money at the start and most OF the business was
done from 30 per cent up to 81 per cent. Later In
the day, when the needs OF borrowers had been well
supplied the rates declined steadily and at the close
quoted Mt per cent RumOrs were thick that
several millions IN money had been "locked up by
the bear faction. but no trace OF the process cond
he fonnd. Bankers generally discredcd tho idea
for although there probably has been some manipua
ton OF the rates the for the strngency Is ad
mtrcd to be legitimate. and to rest npon the heavy
decrease I'm the reserves Of the New-iork banks and
the financial dstrust existing In banking circles re-
speeding the currency problem.
The effect OF the ,lshtness in money upon the Stock
Exchange markets was small yesterday. 1t was felt
principally In American Sugar stock, which was ex-
tremcly active. the total sales amounting to over
90 900 shares. The price early tumbled from III rs
to ll6 33, against 100 "a Monday night. There was
later rally TO 122 IT, and the last price was 10 '9
a net decline OF l 7-s per cent. ut was not until
after the close that the action Of the directors In de-
ciaring the expected 10 per cent extra dividend on
the common stock was announced. The other weak
stocks were New York and New England and Reading
New En- gland was traded In to the amount OF 4o7lo
shares and prices fell TO -. closing on rally nj
81 IS against 20 Is Monday. The decline was due
ARRANGEMENTS
and the ew-Iiaven roads. an account OF which Is
printed elsewhere. Reading sold to the amount
OF nearly G2O 900 shares. and the price ranged from
90 81 So to % LA "A "a. against "a Mt the close
on Monday.
The three stocks mentioned monopozed about half
Of Yesterdays dealings at the Stock Exchange. The
General market was strong eager buying by the
hear sp~culators Commission houses reported no new
business Of Importance but the short interest was
frightened by the circulation OF positive reports that
the Government Lad decided 10 make an issue OF bonds
10 protect the gold reserve In the Treasury. KnOwl-
edec OF such issue was denied By DreXel. Morgan
g. Co.. Kuhn, Loeb d Co. and other prominent bankers
and bank presidents were ignorant Of such step by
the Administration Yct tie street gossip reiterated
the statement With such positiveneSs that the tmId
bears were driven TO close out their contracts Tile
only ground the rumors, far can BE- learned
here Is that August Belmont OF the big banking house
that represents the Rohschds In the United states.
Il IA Washington. lie Is credited with having gone
to that city consult with President Cleveland ana
the Cabinet upon the financial measures that might
be needed to be taken in the event Of crisis Mr..
Belmont may return to-day. but the Wall Street buns
are satisfied that something has been accomplished
I'm the line OF bond Issue. One story ran that the
Government had arranged TO sell SjOyOOOOOO bonds
abroad for gold, the precious metal to remain In the
Ranks OF England France and Germany to be drawn
upon within the year only as may be required 10
meet calls OF Europe upon this country Tor gold 10
settle trade balances TO furnish Austria with the
means Of completing the reorganization OF her cur
rcncy system on gold basis Another version was
that the gold paid for the bonds was TO be paid In ten
monthly instruments OF 100000 each The bulls
argued that the effect OF such loan rs was reported
would be n restoration OF confidence In American
specie payments, which would thereby lead 10 re-
laxaton In the present monetary stringcncy.
There Is, however. In banking circles growing
doubt OF the efficiency Of issue OF Government bonds
TO restore confidence II Is doubtful that much re-
lief could be afforded to the money market owing TO
the heavy declines recently suffered by the New
York banks In their surplus reserve. The requirement
of f.eign gold might place barrier for the protection
OF the Treasury reserve, but the condition OF the
banks does not Warrant any extravaganza In credits
simply on that account. II Is doubted That the
country banks which have been withdrawing helr de-
posits from this centre OF late would be IN haste 10
return them under any circumstances. The silver
Purchase law Is regarded the root OF the present
money disturbance, and there Is fear that the new
Congress cannot be- caoled cudgeled Into repeal
OF the law.
A well.known foreign banker said: IL doubt that
the Government could place Its per cent bonds
abroad at less than the equivalent OF 3 l.: per cent
e,ides II the bonds sold to Europe ~. UnItrn
states hanks savings Institutions ana capitalists wouid
INV them back ut an equivalent OF 3 Ii per cent.