The record-union., 1893-02-10
THE DRAIN ON GOLD.
New York Banks willing to Assist the
Government.

DIAalN ON OOl1Ds
New York Banks Willing to Assist the
Government.
WASHINGTON, Feb. 9.-Secretary Fos-
ter of the Treasury was shown a pub
lshed statement this morning that had it
not been that several banks in New York
supplied the Treasury with gold last week
to meet the demand for foreign shipment,
there would have been a dearth of gold in
the Treasury. Secretary Foster did not
wish to say anything on the subject other
than that he employed no special or un-
usual means to obtain gold from the
banks. About the further expectation of
gold this week he would say nothing.
The Treasury now holds s., 100000 free
gold, and arrangements have been eff
fected by which for SS,COO, 900 in legal ten
ders on hand like amount of gold can
be secured. Some SS,O0O,OOO more legal
tenders will be available for this purpose
within the next few days. 1t is the
opinion of Treasury officials, even if the
constant drain continues, the Treasury
gold can be kept up to Sl2, 800, coo or Sl5,-
000, ,00O
NEW YORK BANKERS TO THE RESCUE
NEW YORK, Feb. 9.-Continued ex-
ports of gold from this city to Europe
has at last forced the Treasuary Depart
ment to view the situation with some
uneasiness. Accordingly, Secretary Fos-
ter, in an informal way, conveyed his
desire to the associated banks in this
city for aid. In discussion of the matter
member of the Clearing House Asso-
sociation said to-day: LAS a result of this
expressed desire the Clearing House
Committee met on Tuesday. AS author
lied, the Chairman of the committee.
President Williams of the Chemical Ma
uonal Bank, arranged with various
banks carrying large sums of gold to
turn over enough to the Sub-Treasury to
Offset the Withdrawals of gold for export
last week. The result was that S., ,000, 900
in gold was deposited and legal orders
taken by the banks in exchange. This
does not limit the assistance that will be
given, but further sums of gold will be
turned in as desired by Secretary Foster"
The clearinghouse Committee will
probably meet tomorrow to take
further steps in framing definite policy.
and a conference of bankers may also he
held to discuss the situation. The banks
of this city hold about $50, O,O0O,OO0 which
would be available if required to main
tain the reserve.
1t is reported that the banks assisting
the Treasury would send S500,000 each to
the Treasury. To-day President Williams
of the Chemical Bank said the report was
true: The object, of course, is to spare
the Treasury the necessity of cutting into
the Sl00,000,000 reserve. They have now
OS,OOO,0O0, but the action of the banks
will hold it where it is until relief comes
from elsewhere
shall you meet further Withdrawals in
a like manner?"
"I es. The banks which already acted
will continue to do what they can to
guard against the depletion of the Treas
ury."
Jesse Seligman said in regard to the
plan: There is in the country fully
S525, 100000, of which 500, ,GOG,0OO is on the
Pacific Coast, and the country is produc-
ing S31 ,000, 600 gold annually. The pres
ent drain can continue but little longer.
as France and Austria will soon acquire
all The gold required TO fill the compile
ment, and the demand from there will
probably cease"
Assistant Treasurer Roberts stated that
IS, ,0O5, go in gold will be paid into the Sub
Treasury to-day, which with the s., ,OOO. 900
received previously, makes So, 500, 900 re-
ceived from the banks in exchange for
legal-tender notes. In regard to the re-
ported conference, Mr.. Roberts said: ''It
can be learned from the papers that Sec
retary Foster will be here on Saturday to
attend a Republican meeting, but there
will be no conference. The present Ad-
ministration will continue only little
longer, and its purpose now is solely to
keep everything in good shape to turn
over to the new Administration and the
only step that will be taken will be to
maintain a surplus over the gold re-
serve"