Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-04-29
GOSSIP FROM WALL STREET
The TanEle Over the Gold Question Not Yet
Unraveled.

0oSsAf FROA WALL STREET.
The TanEle Over the Gold Question Not Ye,
! UnraveIed.
THE NEW YORK BANKERS THINK TIE sxcRE-
TARY OF THE TREASURY SHOULD CONF powx
TO BUSINESS PROPOSITION NE. cLEvE-
Lands DECLARATION INSPIRES CONFIDENCE.
Special Dispatch to The Evening Star.
NEW YORK, April 29.-Wall street has been
in a tangle all the week over the gold question,
and bankers do not yet see daylight. Secretary
Carlisle has come in for more than his share of
abuse. but he has skilliully shifted
the blame on Assistant Treasurer Jordan,
who has been too enthusiastic in
his efforts to get the New York banks to come
to terms. Three distinct propositions were made
to the government to surrender gold coin for
legal tenders, but in each case the government
has suggested an amendment, which the banks
could not accept
The only relief to the situation has been the
assurance Of President Cleveland that the par
ity Of gold and silver will be maintained, ire
spective OF encroachments on the legal
tender reserve. This frank announce
and the alarm aroused ten days ago BY the
prospect Of gold going to a premium has dis
| appeared. Even the Canadian banks which
we're the first to send specie out of the country
situation, and no longer drop the hint that
| their branch houses over the border are short
| OF ready cash, thus necessitating a transfer of
| gold from this center.
| In the meantime many out-of-town institu-
tions. including the Boston banks, came to the
assistance of Secretary Carlisle and BY sur
rendering a part of their stock of
gold, kept the legal tender reserve above
the S10O000,0 600 mark. The patriotism Of
these banks has been praised by the government
ofnciais. but 1t is more than probable that the
shifting of such large credit balances from the
New York banks will bring about a more un-
settled condition Of affalrs and that the remedy
applied in increasing the treasury's gold reserve
is worse than the disease.
FEELING OF THE NEW YORK BANKS.
The New York banks are not jealous of the
desire of their out-of-town correspondents to
help the government, but they do not relish
the transfer of balances, as such
action might tend to disturb the money
market. Some OF our expert firanciers
also contend that the present financial policy
OF the government has been shaped to favor the
west aud southwest and that the presidents
OF the New York banks have been treated
like lot of school children. That
there has not been more friction between
the banks and the subordinate representative
OF the government who has been intrusted
with the recent negotiations. is simply due to
the courtesy of the bank presidents
who contend thas when Secretary Carlisle is
ready 10 conclude business-like bar
GAIN there Will be no difficulty in reaching a
compromise that will inure TO the business in
teTes,s o. the country. lne banks have made
up their minds. however. no. to yield uncon-
dllonally any part OF IEeir metallic reserve
and while they all hope that a bond
issue will DE made they are perfectly willing
accent Job
can be used Ill settling clearing house
balances and counted III calculating their
reserves. All acknowledge that Mr.. Carlisle
is conscientious and nonest as well
rs sef-reliGnr. DI. he has shown such an in
dependent spirit thas he will have to meet
the bankers half way before they will listen
to HIM. There lis no doubt that conflicts
OF opinion on the questions Of currency
and coinage will continue to exist
between various sections OF the country and
the south is very much prejudiced against what
1t plea>es to term Wall sreet dictation,
but as the New YORK BANKS hold twice as much |
gold us all the principal cities outsid. |
Oh the metropolis put together. it |
is TO New York the Secretary of the treasury |
will have to come for relief unless he concludes
to market a lot OF bonds abroad. At all events |
the New York banas do not care to be patted |
on the back, and prefer that such treatment |
should be applied 10 their neighbors even if |
they be accused of a lack Of patriotism.
REDEEMING FEATURE OF THE WEEK
The great redeeming feature of the week.
which has to a large extent restored confidence,
has been the sharp break in foreign exchange,
There was an extravagant speculation in
sterling ten days ago, and a number of
SPECTATORS cleared the market of all
the bankers sixty-day bills in sight. on the
supposition that gold would be at premium
before June !. The unmistakable language
used by President Cleveland In his proclamh-
Non relative 20 the payment of gold for treas
ury notes demonstrated that these fears
were grOCndless. and there has been a CORE
spending scramble to dispose of the exchange
bought on speculation. Some Of the principal
importers we're also imbued with the idea that
the country was going to the dogs
and SO bought sigh. sterling and cables
at the Top prices of the year. Now that this
demand has been satisfied it is very difficult to
dispose OF sterling at close quotations. For
eign houses have also been liberal sell
lers OF security bills. presumably against
block o. Pittsburg. Cincinnati, Chicago and
ST. Louis Az per cent gold bonds to the
other side. The decentralization in sterling
has consequently checked gold shipments and
even some of the largest gold lex porting
houses hesitate fill old orders. There
are no commercial bills in sight and it will be
comparatively easy for Secretary Carlisle to
knock the price of sterling down to the gold
Importing point by selling bonds abroad,
now that London has started in to buy our &C.
curlties In earnest.
The most sensational event of the week in
the stock market the 25 per cent drop in
loiedo, Ann Arbor and North Michigan