The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-08-02
WALL STREET CHEERS UP.
NINE MILLIONS OF GOLD ON ITS
WAY FROM LONDON

WAX FROM LONDON.
Experts Think tho Gold Tide In. Turned
Immediate Cause. of the Turn-Incrensed
National Bank CircuIation-A Plan TO Iu-
crease it Largely " Savings Banks Assent.
Wall street was fairly iubilant yesterday.
Nearly every slip that the news agencies dis
trlbuted to their customers contained an an
nouncemont OF gold secured in London for
shipment to the United states. Long before
the close of business tho various consgnments
reported footed UP S6.700.0O0. The creator
part Of this will DO shipped on steamers sailing
for this port tomorrow. Besides. S2.0oo,0oO
we're secured last week. which is now In transit.
There Is. therefore. nearly S00o0.0o0 OF gold
under way which will be added to the reserve
Of the New York banks between now and the
end OF next week. The amount that will DO
shipped from London to-day Is go large that 1t
10 now perfectly plain that the return move
ment OF tho gold taken by Europe from this
country Is we'll under way.
or course. that movement will be spasm odic.
It is facilitated just now by three circum-
stances Is the reduction made on Mon
day in tho Bank OF EnGland's price for
American gold coin: another is tho especial
accommo notation that certain OF tho Clearing
House banks OF this city give dealers In foreign
exchange. to enable them to buy bills on Lon
don and Paris to cover their shipments Of
gold. while n third Is tho unusually low level
OF prices for breadstuffs and other food prod
ucta This last assumed fresh importance
yesterday. owing to the collapse OF the specu-
lative deal In pork and lard at Chicago.
tits understood that tho Bank OF England Is
facilitating the moveme emit in the manner in
dicated above. partly to relieve the monetary
situation here. and also to enable English
merchants to take advantage Of the present
low prices for breadstuffs and other food
supplies which Europe is In need OF. Foreign
bankers are Of tho opinion that tho present
movement Of gold will run up to S4O.000,00O
or $50. 900 600 before It experiences much Of
an interruption.
A minor cause for encouragement is found
by Wall street in the manner in which the
Secretary OF the Treasury is making purchases
OF silver. and also in the notice he has just
issued requiring those who sell silver to the
Treasury to deliver 1t within Ave days. This
order prevents dealers in bullion from trading
on the market established by tho Government.
while the secretsry,s method Of buyine silver
abroad than can be obtained here.
Wall street obtained an inklinG yesterday OF
numSer OF but the 9u ex es
ton Of which has only Just been undertaken:
It Is that tho savings banks Of this city aud
State. should by concerted action endeavor to
supply the demand OF large number Of ma
tional banks for Government bonds as basis
The. present price for Government bonds.
rates. make an nat5e
banks to take out CIRCULATION or increase that
which they have. The obstacle In the way OF
any large amounts Of bonds. On the other
hand. the savings banks are now particularly
cash. and by selling part Of their bonds they
could increase their cash without sacrifice Of
time help the financial situation by en- enabling Bling
the banks to Increase theE note circulation. :,
.ad ea9ks shS t at SSa it IL
SS5ssseS 81 e sSsm ahf sS
tion. A formal Meeting Of the Executive Com.
mittee Of the Savings Bank Association will
PROBABLY he held In = day or TWO to discuss
4 number Of the larger banks Of this city have
81 se s
ss she Gh sss
new circulation are the National Pars the Ma.
THird and the fourth National f" Ths ast s
WHICH has an unusually largo capital, has al
rssa the to
Il is nndsrstood that II the savings banks
agree to dispose Of a portion of their bonds
once with the national banks that wish to
use Of their correspondents at interior points
bankers generally consider an increase in
BE- since such an inrreass. Il at All ceesra
results In the placing Of now currency at 2
great number Of points s and at places where It
ment to the National Banking law permitting
the banks to issue notes up to the par value Of
lnent to secure the notes 10 generally regarded
Tho first effect OF that amendment would be
saee Ga Wf Is. sssssssd sysy Sd
,nx to al inaIoatIon' b larger than last
re. volume OF national bank notes IS
that the money, thus supplied will. to an OK
notes In Increasing the ' Volume OF currsncy
should the sherman Silver law be repealed at
the WapprSaehIng session Fl c9nxrsss
sion is to be relieved from quarter that has
not been looked to for succor. The report Of
that In July the circulation Of national hanks
Tss Increased ere eyer 20 OoG0oo C3mp;Iolsr
=, II is due. no said. lin the FIRST place. 70
the low prize OF Government bonds, which
bonds deposited to secure it, profitable ven.
quoted at sl.08 which Is qiiite fall from iiE-
urss which they have attained Then the
stringency OF the money market makes 1t do
sirabIe that the circulating medium shall be
Increased as much as possible. National bank
notes secured by Government bonds. are a
very satisfactory currency.
g In tho quarter ended July 81 the net In
crease Of national bank note circulation was
will be increased In this month alone by at
least that amount In my opinion. The depart
DAY apd received applications from three New
1ork banks for the Issue Of 100000 to each
OF them. 81 100000 In bonds having been do
posited with each OF tho plications."
M WIZ you recommend that the imitation to
NO per cent OF the par value OF the bonds In
case OF the issue OF circulation be removed2"
don't carsto say as to that 1t lisa recon-
mendation that has repeatedly been made by
Com ptrollers in their reports but my timo has
been 80 taken up with matters OF currency
business that have not had an opportunity
to consider it yet"
WOE 10 THE COHQUERED.