The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-09-14

Cdliu III DEfliu'+t-h b@'aoSO 0'ohOt' "
have the names oF the bond purchas
ers made pn1o. IF there be an
other bond issue wuaopt authority OF
Congress I intend to introduce a resoiu-
ton advising the reputation of the
bonds They We're ias"ed without au
thority and axe fraudulent, and the
people should not be compelled to pay
them. This may not sound well, but
there is no use of allowing the people to
be imposed upon any longer"
"When the first bond jseEs was pro
posed Secretary Carlisle csTa to both
Houses of Congress and a = d leigsla-
tive Authority fcr the issue. He went so
far as 10 preI sr2 Q bill FIR the purpose
and presenteG il r. tie committee of
both the Senase ard House. Congress
refusiag TO ac,, ne Secretary gave no
tice that if he v'era not authorized by
special act he would issue bonds with
out such authority, and he did so.
called attention to these facts at the
time; charged That these bonds were
issued Illegally, and also introduced a
resolution instructing the judiciary
committee of the Senate to examine and
report whether the Secretary had such
authority under existing law, and the
committee did not report because they
knew there was no such law"
Almost a Black Friday.
NEW YORK, Sept. 13 This day was
an exciting one, and for time bid fair
to be critical one in the financial fed,
so that many feared that it might pass
into history as smaller edition of
certain black Friday of years ago. But
tonight the disturbing elements are bet
ter understood, and the outlook for the
Treasury and the maintenance of its gold
reserve is comparatively clear.
Uncertainty as to the indication of the
government syndicate to maintain the
reserve at the century mark, and as to
its ability to do so had disturbed the
monied interests increasingly throughout
the week. A crisis was reached this morn
ing when announcement was made that
the firm of Lazard Freres, which is a
member of the bond syndicate had en-
gagged two and half millions of gold
for shipment. This announcement natu
rally gave rise to the impression that the
syndicate had withdrawn from its con-
trolling position behind the throne, and ]
it sent quotations tumbling in Wall
street, besides starting stories that the
syndicate had dissolved, that bond
issue was imminent and that the Treas
ury would fast drift back to its old posi-
tin Of the dark days of last winter.
Before the afternoon had passed, sew
eral of the city banks had come to the |
aid of the sub treasury with deposits of |
gold made in exchange for greenbacks,
explanations had been made by mem |
bers of the syndicate and the firm which |
started the panic, and quiet restored |
when the monisd institutions closed their |
doors for the day.
The gold deposits make by the banks |
vii offset the shipments of to morrow.
The Hanover National Bank set example |
with deposit of $500, 900. That made |
So, 400, 900 in gold that the Hanover |
Bank has paid in, President Howard |
said, since the last loan was made. The |
American Exchange National Bank Of |
Commerce followed with another $500, 900 |
With reference to this deposit, President |
Sherman said that the 100000 repre- |
sented one third Of his banks gold hold |
ings. and that if all the banks c0ntribut |
ed gold in the same proportion there |
would be no further difficulty.
Tne National City Bank is credited |
with an intention to deposit half mil
lion or double that amount; 1t is ex-
pected in banking circles that the de |
posits of gold by the banks for green |
backs viii reach $6,000,000 this week. |
The known shipments to Europe to-mor
row will be: 80, 500, 900, by Lazard Freres; /
81, 900, 600 by VIM H Crossman 81 Bro !;
5000, 600 by Ho5kier, Wood & Co.; |
5000, 900 by Hard & Rand, and 800, 900 |
by Nessage & Fuller while Handy & |
Harman will forward between $50, 900 |
and S200,00 This will make a total |
for the week of 81, 900, the largest |
weekly outflow on record, except the
81, roc, 600 sent abroad in one week last
January, when the drain upon the re-
serve reached its highest tide.
The Bond Syndicate "ExpIains,"
Explanations of the position of the
the reasons impelling Lazard Freres to |
combat the policy Of bis colleagues were |
secured by the Associated Press. The !
fCllo wing statement was authorized by
the bond syndicate to night:
The impression has become general |
that the members of the bond syndicate |
entered into an agreement with
the United States Treasury to maintain
the 800, 900, 900 reserve until October /,
prox and that upon that date said OBJ
legation will cease. Such is not the case. |
"The bond syndicate fulfilled all its
Obligations to the government in June
last and has not since been bound in any
way to the Treasury. 1t is true that it
has from time to time since last June
paid over various sums in gold coin to
the Treasury which have sufliced to
maintain the reserve, but it has done SO
voluntarily and viii continue SO TO 90 on
the same spirit and for the save motive.
$50 far as October /, is concerned it
has no relation to the action of the bond
syndicate, and it will continue to de
posit gold until November /, and De
cember i, and January 1, if necessary,
and if existing conditions make it
20 4 bar 4ba h0ud