St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-08-10
THE YELLOW METAL.
MILLIONS or GOLD EAGLES COMING
AND MORE TO FOLLOW


New York Banks Advance the
Rate for Renewal OF Loans to
1O@12 Per Cent-Thirty MILL
ions OF Gold Will Soon Have
Been Added to Our CircuIa-
tion-France's Gold Drawn On,
NEW YORK, Aug. 9.-The withdraw
ais of gold from the Bank of England
today for shipment to the United States
amounted to e495, 600. So far as known.
Ladenburg, Thalman IL Co. have Sc
cured S250,000 of this amount, and
Heidelbach, Ickelheimer & Co. 100000.
to be shipped on the Fuerst Bismarck.
Kidder, Peabody & Co. have engaged
1856, 600, and the Bank of Nova Scotia, of
Chicago, S250.O00. The steamer
Spree will arrive tonight or tomorrow.
She carries eS5O,OO0 of gold. The Ma :
jestic, which arrived this morning,
brought $500 of gold. Kuehn, Loeb
IL Co. have Sl,6O0,0O0 gold in all on
passage from Europe.
There was further rise in sterling
exchange this afternoon, posted rates
having been advanced to S4.S415 and
S4.S9. The demand to cover bills
against gold importations caused the
further rise.
AS high as per cent premium was
bid for gold afloat this afternoon. A
reliable money broker today stated that
he sold S30,0O0 worth of currency for
$4,000. Western railroad companies
I'm fhn for NJ which
is per cent bid.
The sub-treasury was $50, 292 debtor
at the clearing house, and settled in
gold coin. The clearing house loan
committee this afternoon issued 100000
loan certificates, making the total out
standing $50, 7S5, 900.
The action of the national banks in
advancing the rate for renewal of lOa ms
to 10G12 per cent in no way affects
Wall street. The banks raised their
rates simply because most of the out Of
town bankers, merchants and others
have shown disposition to lie do wn on
their contracts.
The Post says: "How far the new
supply of money now rolling in upon
New York will ease the situation is one
of the problems OF the market. The
fortnight beginning with last Saturday
will have added to our stock Of i'm
ported gold upwards of $2O,000,000 Not
less than Sl0,O0J0OJ more will come
from new bank circulation. The gold
must continue to flow in from Europe
as long as tn local premi UNI exists; for
a bid of l per cent, it should be remem-
bered offsets rise of fully four cents
above the par of sterling exchange.
Today S2,500,000 more was engaged in
London. The Bank of England, to
meet the American demand. is drawing
now on the Bank of Frances gold
"a very natural recourse, since
the French bank holds today
S69,OOO.O0O more than its business
needs required two years ago. w hat
then, is to become of this new money
when it reaches US? 1t has not yet
eased perceptibly the time loan
market. Wall street today predicts
that it, too, will be boarded, and the dis
NAL predictions may come true in part
if congress does not act Some of the
gold will certainly go into the sa wings
OollhSs oOlilO W lllC
centers, which in contradiction of all
previous example are now buying
specie by direct and personal represent
tatiges in London. But this cannot
use the whole imported stock, and in
any case even such disposition of the
money will ease the strain on the larger
centers of capital. In short the move
ment amounts to currency expansion
of thirty millions in fortnight"
President J. Edward Simmons, of the
Fourth National bank, said of the new
rule of the New York banks requiring
interior banks to pay 10 and IL per cent
instead of on extended loans:
The interior banks borrowed of the
New York banks and piled up the
money III their vaults or loaned it out
at 10 and IS per cent. We do not pro-
pose to provide them any longer with a
surplus or with funds for profit making.
We put on a rate that will bring back
the money where it belongs. and thus
ease the situation in New York"
Situation in London.
LONDON. Aug. 9.-The sum of $780,
600 in gold was withdrawn from the
Bank of England today for shipment
abroad OF this sum e495, 900 is for