St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-03-25
THE MEN WHO SELL MONEY.
Their Profits Were Large During the
Panic-HOw They Operate.

Their Profits Were Large During tile
Panic-HOw They Operate.
The men who sell money made lot Of
money during the panic. They are still
gathering in cash from the sale of cash.
Dealing in bullion and specie has always
been considered profitable. But hard times
make it doubly so. When the merchants are
hard up, the money broker reaps harvest.
When the financial world is in trouble, gold
and silver are exported and the specie bank
ers get liberal and frequent commissions 10
doesn't follow that they are Shylocks. Quite
the contrary. The leading money bankers of
the country are Indispensable in troublous
monetary periods. They help out Lombard
street, in London; Wall street. in New York;
Devonshire street, in Boston and Third street
in Philadelphia and furnish money where
ready money is in great demand.
Nearly all the great banking institutions,
with foreign connections, are to certain ex-
tent, money buyers and money sellers The
importation of gold early in the panic was
conducted by large houses. The exporting
of gold, after the Sherman act was repealed.
was managed by the same houses The world
renowned houses of Brown Brothers. Drexel.
Morgan & Co., and Morton, Bliss & Co. en-
gagged in the export and import of gold to
certain extent. But they did not make a
specially of this branch of finance The New
York house that may be considered the leading
specialists in this line are those of Ladenberg.
Thalman Co., and Lazard Freres. The one
is German concern and the other is French.
They did an enormous business Ladenberg
bought in Germany as we'll as in Great Brit
ain. The Lazard Brothers secured consider
able in Paris. There was time late last
summer when the vaults of the Bank of
France and the cellars of the Bank of Eng
land poured out the rich yellow metal be-
cause they were paid rates that warranted
them letting it go. Not over four months
afterwards these same banks needed their
Golfers replenished and paid the bankers act
ing as their correspondents in America to
return some of the gold that had gone across
the Atlantic earlier in the year. The Bank of
England has for a century been noted as the
great gold repository of the world, but of
late years, the gold reserve of the Bank of
France has exceeded that of any banking in
stitution in any of the countries
But gold buying and selling is not the only
productive and profitable branch of the specie
trade. Silver has its booms and its BOOM
erangs. 1t also goes through its times of
appreciation and depression. Just at pres
ent, the silver market is at its lowest ebb
Yet there is always more or less demand for
it. Bullion, which is gold or silver in the
bar or lump, is a constant commodity. In
fact, that is the way in which these precious
metals are purchased and sold. The bullion
broker does thrifty business at any time
The past year has witnessed large transactions
In his department. One of the largest bullion
houses, and at the same time one of the chief
factors in the silver trade, is that of Handy
u Harmon, in New York. It's quarters
are not palatial. They do not compare with
the handsome Offices of the big houses on
Wall street. The business of the firm is done
in comparatively small offices in the base
ment of the Mutual Life Insurance Building
on Warren street. Yet the transactions are
often very large. Shipments of a million or
frequent as scarcely to cause comment. The
head OF the firm, Parker Handy, is young
man. He has only been out of Princeton
College about fifteen years He knows the
subject thoroughly however. He got his
schooling and experience from his father
after whom he is named. The senior Handy,
who has been dead some years, was one of the
quiet factors in the financial movements of
his day. He was a Director of the Equitable
Life and was also interested in number
of banks and financial concerns. His son
has inherited his fathers fortune business
and brains.
Only in the periods of the greatest none
tary depression and excitement is there a
great demand for greenbacks and small
change. There was big premium on current
cash in 1873 and somewhat of a similar
premium in 1884. But the year 1898 will 90
on record as the red letter era for dealings
IN the ordinary small coin of the republic.
The panic, that it is hoped and believed is
passing away, was marked by one week at least
when money was scarcer than ever. The latter
part of the month of August and the early part
OF the month of September saw money eagerly
sought after. But it was during one of the
weeks in that period that the financial and
mercantile world found itself painfully short
of cash. Merchants had to have small bills
and the smaller coin with which to pay their
employees. The banks refused to paw out
much money. Certified checks presented at
the paying tellers desk with the request for
greenbacks and small change were refused.
The average citizen found it hard to secure
enough ready cash to meet his ordinary needs.
Hotel proprietors and tradesmen in lots of
cases, declined to receive checks in payment.
much less to cash them. Everything got
down temporarily to strictly cash basis.
Then it was that comparatively obscure
firm reaped quick fortune. On Wall Street.
only few doors from Broadway, was the
house of Zimmerman & Forshay. 1t had a
little coop of an office, inside of which scarcely
dozen persons could gather at time with
out imperiling the stability of the narrow
glass counter. The firm dealt in specie For
years, persons passing had hurriedly noticed
the piles of coin of various denominations
and minted in different countries, in the little
window. A goodly heap of greenbacks con-
stituted part of the window exhibit. When
money began to be badly required, this
house stood ready to supply it at premium
During the week already instanced, the
firm practically cornered the market 1t
raised the percentage of premium day after
day, as the demand increased But even
with their knowledge of the business and
their widespread purchases thav oouId nof