The morning call., 1893-04-22
CHERISHED A FETCH.
Bankers Think That Is What the Gold
Reserve Was.

Reserve Was.
NEW YORK. April 21.-The upper crust
of the SI0O, 600, 0O0 reserve was removed TO-
day and The financial world stood by and
witnessed the going of it, and yet tonight
in this financial center no quakings Of the
earth are felt and those folks who are most
interested are wondering why there has
been no crash of worlds nor wrecks Of
spheres. Indeed some financiers are look
ing into each others faces and wondering
whether they have been fanatic or uncan-
nily supersttious. The engagement of gold
for expOrtfrom here on the steamers sailing
tomorrow and on Tuesday amount to
S6,175,0O0 and from Boston to $3.50, 900.
There was much diversity of opinion in
the financial community during the day
over Secretary Carlisle's statement In the
main ;the judgment was unfavoTable, and
this to no small extent because Of the state
ments ambiguity. On the stock market the
aecumuiating bull rumors" from Washing
ton diverted practically all attention from
the secretary's circular, but the sterling
exchange market opened in utter confusion,
rejecting that very unusual occurrence, a
scare among regular Temittors again 81
foreign credits. The demand for sterling
bills, this time proceeding from bankers
hDuOAAu4 hbOub BOiu pay uicuk lOI AItdSuIy
notes, and anxious to anticipate their pay
ments. was SO heavy as to force up sterling
rates to the highest figure touched since
the panic of 1884. Over S6,OOO,OOO in gold
was thus engaged for export by to-
morrow's steamer. with the orders unusu-
ally wisely distributed.
In the midst of this turmoil the foreign
lenders of money called in numerous loans,
and these notes being drawn with the gold
clause, payment in specie in at least one
case was demanded and obtained Not un-
naturally the call money market tightened
under the Withdrawals, and the stock mar
ket operators lending their usual assistance,
money rates were bid up on exchange.
So far as all this was the result of simple
fright, it had reassuring side, for treasury
notes presented at the Sub-Treasury were
promptly redeemed in gold. There was,
moreover, clear statement in several
quarters that the vexed gold clause in time
notes would not be insisted upon. The
older trust companies and many banks,
which TO some extent are lenders on time.
made positive statements to-day that they
were making no stipulation for gold paw
ment The foreign bankers, however, with
one or two trust companies, are steadily
insisting on the clause, and are resisted by
borrowers.
Borrowers on call to-day were able to Sc
cure accommodation early in the day at
from to per cent, but those who DELAYED
supplying their wants were forced to paw
from 10 to Y. The posted rates for sterling
exchange were raised to4.S8R and 1907 and
there was little disposition to draw. The
situation improved later in the day and
money was in better supply toward the
close and was loaned as low as 4.
According to the Sub-Treasurer's figures
the net loss of gold 10 the treasury to-day
was $4,000, 000 Of which all but 500 600 was
for export. Secretary Carlisle estimated
this morning that he had $685. of free
gold in the treasu ~. If he received none
to-day from sources outside of New York
the treasury free gold is all gone and the
S100,0000G reserve is reduced 10 Sg6, ,295, coo.
This is the first time since the resumption
OF specie payments that the reserve has
been cut into. counting in subsidiary coin as
part OF the available funds Of the treas
ury. difference of opinion exists as to
whether the subsidiary coin should be thus
counted, and II not then the reserve has
been encroached upon seven times previous
TO now.
just before the Sub.Treasury losed this
afternoon II was reported that the officials
were notified Of demand to be made to-
morrow for S4.OO0.OOO in gold for shipment
on Tuesday, and there was an additional
report, not verified, that $4,000, 600 more
would be taken on Monday.
OF late it has been favorte superstition
that if the reserve dropped below the limit
the result would be disastrous not only to
values, but also 10 the mercantile COM
munity. The fact that the shock has been
comparatively slight has caused an easier
feeling about the future, although there will
doubtless not be any surprise If the move
ments in stocks, as well in the money
and sterling exchange markets are erratic
for some time.
Manager Sherer of the Clearinghouse
said. with regard to the gold situation: 81
do not think any action necessary, as no