St. Paul daily globe., 1893-02-16
NO MORE ASSISTANCE
From New York Bankers in
Maintaining the Gold
Reserve.
The Decision Not to Issue
Bonds Felt in Wall
Street.
Coming Gold Exports Will
Materially Reduce the
Treasury Reserve.
Mr.. Carlisle Will Issue Bonds
When He Takes the
Portfolio.

New YOhK, Feb. 15.-lnYestOrS and
spectators in bonds and stocks were
puzzled this morning. by the vague
character OF the Washington dispatches
telling of the decision of the cab met
yesterday against an immediate issue OF
bonds; and, as some of the reports OF
interviews with Secretary Foster con-
tanned glarlng misStatementS, there was
a general hesitation about forming opin-
ions as to the real condition of affairs ii,
the cabinet. This hesitation was shown
i'll the stock market, where the trading
was irregular and SpaSmodic. The only
excitement shown was in Sugar certlti-
Gates, which. fell 4 per cent in the first
hour. Prices for a few other stocks
made slight advances early. but soon a
continued inflow of selling orders
through commission houses caused a
rapid decline in many directions. Cord
age. Burlington and Reading suffering
most from this liquidation. There was
less uneaslness, however, than had been
expected from the weak closing yester-
day, and London, which had been looked
to for assistance by the bears. came in
as a small buyer of st. Paul and other
stocks.
Bankers disappointed.
The local bank presidents who would
discuss the cabinets action as they un-
dersIood it expressed disappointment at
the decision arrived at. THE govern
ment. it seems" said one, "thinks the
shipments will not be large enough to
reduce the treasury gold holding to the
reserve. If so, they are wrong" An
other said it looked to him as though
the government had decided to cut into
the reserve if necessary rather than
issue bonds. No one spoken with
thought even the preliminary arrange
ments of a bond issue had been made.
All agreed that the decision of the cabi-
net practically amounted to decision
not to be influenced by the advice given
| to Mr.. Foster by local bankers. Presi-
dent 'rappan, of the Gallatin bank, said
today.
81 do not believe any of the banks
will assist the secretary of the treasury
in maintaining gold surplus above the
| 500, 900 reserve. No meeting of the
clearing house has been called, but the
subject has been informally discussed,
and there is little prospect of any more
SOlu DeluS luEHcu llIlO tIiG treasury III
exchange for legal tenders"
Other bank presidents spoke in the
same way. The S1,50O.O0O gold taken
from the subtreasury for shipment to
Germany by the Elbe this morning was
paid for entirely in greenbacks and
treasury notes.
The Surplus Gold
| held in the treasury above the S100,000,-
coo reserve was S9,023, 429, according to
| the statement issued today. This sum
will be materially reduced by the gold
| exports today and Saturday. Foreign
bankers say that fully S3.000.000 will be
| shipped OH the French steamer. and
some estimate the amount at $1,000 900.
| Next week the shipments are expected
to be even larger, and heavy shipments
| are looked for to London. The rates
| for sterling have advanced sharply,
sight bills today selling at S4.SS4,
which shows moderate profit on gold
| shipments to London, and the English
bankers desire longer margin of profit
| than the continental bankers, and may
wait, it is thought, for further adj
vance In erlng before shipping gold
| The effect of the action on the large
| German gold-eXporting houses in re
fuslng to sell bills except to their i'm
mediate customers remains to be seen.
Other exchange houses are reticent as
to their own policy, and claim that they
cannot see into even the immediate
future, but acknowledge that they may
be compelled to ship in the absence of
a sufficient supply Of bills from the
| West and South. Many efforts have
been made in Wall street to eXaggerate
| the Importance of the prices, but conf
| dpnop at nrpSpnt seems not to have been
seriously disturbed.