The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1895-09-14
THE GOLD MOVEMENT.
DEPOSITS BY BANKS FOLLOWING
LARGE Withdrawals.

been engaged,
The chief significance in the ship
ments was not so much in the amount
as in the fact that Lazard Freres APP
peared to-day for the first time as ship
pers of gold since the Belmont Morgan
syndicate began its operations in con-
nection with the financing of the treas
ury. They took 81, 500, 900 gold this morn
ing from the b-treasury. AS they, at
any rate, have always been considered
members of the Belmont Morgan syndi-
cate, the fact that they took gold to-day
from the treasury for export caused
considerable surprise and it was quickly
inferred that the syndicate had practi-
any rate, that they had released their
members from restrictions which i'm
pliedly prevented them from taking gold
out of the sub-treasury so long as they
could effect their sales of exchange in
some other way. Other reasons were
adduced in financial circles, one of which
was that Lazard Freres were shipping
the gold with the approval of the man
ayers of the syndicate in order to pre-
vent exports by w, H. Crossman & Bro.
and others not regularly engaged in the
exchange business.
Messrs. Lazard Freres were over
whelmed with inquiries as to the cause
of their suddenly drawing gold from
the treasury. They declined to make
any statement, but permitted reporters
to read but not copy a statement of
their reasons. The statement was as
follows:
Hoping that bills of exchange against
merchandise exports would come in the
market in fair amount during the first
half of September, we continued for
long time to supply our customers with
bills of exchange for which we could not
at the time find cover. A combination
of circumstances leaves the market bare
of commercial bills and makes necessa-
ry the shipment of gold to cover part of
the accumulated Indebtedness and to
continue supplying the daily demands
of the trade.
The reasons for these conditions are
in part the late cotton crop and the
slow movement thereof caused by Eu-
rope holding large quantities of cotton
at cheap prices, and it's indisposition to
buy freely at quotations now ruling
Further reasons are the poor demand
for our wheat and the low prices it
brings and the cheapness of money at
this center, which makes it undesirable
for European bankers to increase their
loanable funds here.
In reply to questions, a member of tine
firm Of LaZard Freres, while declining
to make a statement said he desired
the reporters to state that there was no
special significance in the shipment of
gold but that it had to go to meet a
temporary emergency, and that with
t1fe moving of the cotton crop in a few
weeks the whole difficulty would adjust
itself.
Other shipments tomorrow an1 the
amounts to be shipped by them in addi
ton to the shipment by Lazard Freres
are as follows: w. H. Crossman & Bro.
81, 0oO, 900, Hoskier, Wood & Co. 100000,
Hard & Rand 100000, Nesslage & Full
Ter 100000, and Handy & Hartman $780,
OOO The last mentioned amount will
not be taken from the sub-treasury.
To-day's withdrawals reduced the
treasury gold reserve to $95, 100000
This afternoon some of the banks raj
Lied to the support of the treasury and
deposited gold in exchange for green
backs The first one to do this was the
Hanover National bank, which put in
| 100000 That made $3,50O,000 of gold
| that the Hanover bank has paid in,
President Howard said since the last
| loan was made. The American Ex-
| change National bank also paid into the
treasury this afternoon 100000, and the
| National Bank of Commerce followed
suit with another 100000. With refer
ence to this last mentioned deposit
| President Sherman said that the $780,
| 900 represented one-third of his banks
gold holdings, and that If all the banks
contributed gold in the same proportion,
there would be no further difficulty. 1t
was rlmored that the banks would turn
into the treasury this afternoon at least
IS, 900, 600 of gold, and the stock market,
which had become weak on the an
nouncement of the large Withdrawals,
rallied on the report. 1t was not con-
sidered likely in banking circles that so
much gold could be turned into the
treasury to-day, but it was believed that
enough to maintain the reserve at $780,
| 100000 would he turned in during the
next few days. 1t was expected that
the National City bank would deposit
at least $1,000,O00 in gold in the sub
treasury this afternoon.
| Referring to the export of gold by
Lazard Freres, it was stated by mem
Der of the Belmont Morgan syndicate
| this afternoon that the facts were very
simple. The syndicate was unable any
| longer to supply foreign exchange
| drawer, members of the syndicate with
sixty-day or other bills to cover the
sight drafts they had drawn, and that,
| therefore, those bankers were compelled
| to ship gold. This they did of course
with the concurrence of the managers
of the syndicate. Other bankers who
have drawn exchange and relied on
| the syndicate managers to supply them
| with bills to cover are in the same
position as Lazard Freres, but they
will not ship gold this week. 1t is said
| to be probable that by arrangement
| with the syndicate sufficient gold will
be shipped each week by one firm to
cover the needs of all the exchange
bankers in the syndicate. 1t does not
necessarily follow that the same firm
| of bankers will make all the shipments;
| the work will probably be divided, the
several firms shipping alternately.
J. Pierpont Morgan said to-day:
1.-THE bond syndicate is still in the field
/ Tbora has heap No r1IntIIra Tho Sypd;