The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-02-19
A WILD SCRAMBLE FOR GOLD.
TIE STORY or THE RAID on THE
TREASURY MADE PUBLIC.

WenfN-Ihe Sub-Treusurer at New
work Wired on Jan. 80 That Hc
Would Probably Be Able TO Hold
out only Three Days Longer-The
President 10 the Rescue with the
New Bond Deal.
Washington, Feb. 1s-A statement
prepared in the treasury depart
ment on the condition Of the gold
reserve in the treasury and the necessity
Tor the recent bond sale to the Belmont
Morgan syndicate, was made public prop
orty to-day in the Senate by Mr. Cray
of Delaware. In his remarks to the SEN
ate he made use of some of the figures
but did not burden the Senate by reading
al the facts.
The statement as held by him in his
and. set forth that on Feb. > there was
in the treasury: Gold bullion, SAB 98s. $50;
sold coin, S51.s2o.5l6; gold GER
dhcates. s15.75QOOo. This left of
net coin and bullion only
S25. .570,5l6. gold certificates being in circu-
lation against the remainder. OF the coin
only S97oo,SSl was in New York. where
alone redemption of United States notes
could be made in the east
On Jan. II, 1886, the first indications of a
general withdrawal % gold for the pur-
pose Of boarding in this country We're no
iced. These increased rapidly, culminat-
ing on Jan. %. in total Withdrawals of
S3.1J6.0i6 on that day. On Jan. 2S the first
message OF the President on the urgency
OF the situation was presented to congress.
On that day over $4,000 900 were Withdrawn.
On the following day. Jan %, over S3,OO0.
200 were withdrawn and owing to the
failure of congress to act, or apparently
70 appreciate the situation, the with
drawals rose on Jan 30 to nearly 100000
On the evening Of that day negotiations
were taken UP in New Jersey and the first
publication in the newspapers that the
government was about to undertake
something appeared and on the morn
ing of the 31st of January the Withdrawals
dropped to s. $50 800 Further publication
on Feb ] affected the situation so that
only Sl,454,S55 were withdrawn and on the
announcement of the newspapers (Which,
however, was not true) that the negotia-
vions had been satisfactorily completed,
The Withdrawals practically ceased, and
about $500 600 were returned to the treas
ury. The total Withdrawals on Feb. ., were
only S5LS59. The delay, however, in max
ing public the announcement had created
some uneasiness, and on the
hth the Withdrawals rose 10
S3S0,302, and on the report of a hitch in
the negotiations the Withdrawals rose on
the following day to over $729,000 Messrs.
Belmont and Morgan, however, came TO
Washington, and the papers on the morn
ing OF Feb. announced that negotiations
had not been broken off, and the with
drawals fell to S357,0OO, and on the day
following, Feb. 8, the contract was
signed, and the second message of the
President sent to congress, the withdraw
ais for the day amounting to S273,101, and
on the four succeeding days as follows:
Feb. 9, S232, 300; Feb. II, $l19 $50; Feb. r.
$2700S Feb. Is, S36,5i0..
From early in the year every effort
had been made to gather gold coin and coll
lect it a New York and Boston, the prin-
,cipa1 point Of withdrawals for shipment
abroad, but on Feb. 3 all the gold coin
which could be collected with safety
was collected al these points. On Satur-
day, Feb ,, the total amount of free
gold coin in the sub-treasury- at New York
amounted to 49, 700, ,334. so and the only pos
sible way of adding to that was from the
mints whose total coinage at San Fran
cisco, new Orleans and Philadelphia was
only about 500, 900 per diem. The total
amount OF gold coin owned by the United
States government was exceeded by the
demand certificates outstanding against
It, and the government was practically
borrowing gold coin from the owners
of these demand certificates and substi-
tuting gold bullion in its place in order
TO carry on specie payments in gold. The
A-GEA We OIi lLol Qdg VI Np4ll anu DuliOA
over outstanding certificates was $i2,612,
4S2
On Wednesday evening. Jan. 30, the as
sistant treasurer at New York reported to
the treasury department in Washington
that he thought he could hold on until
Saturday, but that the next day might de-
eide the situation.
Between Dec. 1, 1894 and Feb 13. 1895.
the total amount of Withdrawals of gold
was Sa0,7S6,5O2, and the exports of gold
during the same period amounted to only
SIG, So, SS9-showing that about $4,000, 600
had been withdrawn for boarding pur-
noses in this country during this period
in other words. that the citizens of the
United States had lost faith in the ability
ot their government to pay gold for It's
notes, and a run on the treasury COM
rnepced. That this gold has not gone into
the banks is shown by the fact that on
Dec. l, 1884, the total amount held by the
banks was S96,000.000 and on Feb. ], 1895,
SS3, % 900, or s13 100000 less than was held
on Dec. l, 1884.
II must be remembered that the with
drawals al New York, while made by the
banks, are not made for their own in
terests, but very largely for their coun-
try customers, who are accustomed TO
make all these leading transactions
through New York, and in fact, the treas
ury was informed by one banking es-
tablishment in New York that they had
notes over its counters on Wednesday,
Jan. 30
1t was in this condition of affairs that
he Morgan Belmont agreement was en-
cred into. For four days the treasury
officers tried to get a reduction to 35sc in
he interest. but without success.
In considering the details of the con-
iract it must be remembered that the
treasury was dealing with community
more or less excited and panicky, and that
foreigners had been for 2 long time dis
'rustful regarding American securities,
nd had sent large quantities to this coun-
try for sale The people with whom the
dealings were made had taken part in
he November syndicate, and had seen
he bonds purchased at that time at III
Use sharply to 119, and fall thereafter to
1.-The latter figure showing a net loss
of 8 per cent. on the price paid by the
indicate and taking this in connection
with the possible hostile action on the part
of congress, it IL not surprising that
gh price could not be obtained. In fact
was difficult to make any dealings
all After trying for four days to
.