St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-09-14
THIRST FOR GOLD.
EUROPE DRAWING ON AMERICA
TO AN UNPRECEDENTED
EXTENT.
BLACK FRIDAY SPECTRES.
GROUNDLESS RUMORS OF A
BREAK IN THE BOND SYM
DICATE.
BLACK FRIDAY SPEcTREs.
IT'S LEGAL OBLIGATION ENDED
The Bond Purchasers VIII, How
ever, Continue to Assist the
Treasury.

financial field, so that many feared
1t might pass into history as
smaller edition of a certain "Black
Friday" of years ago. But tonight
the disturbing elements are better
understood and the outlook for the
treasury and the maintenance of it's
| gold reserve is comparatively clear.
Uncertainty as to the intention of
the government bond syndicate to
| maintain the reserve at the century
mark, and as to its ability to do SO.
had disturbed the moneyed interests
increasingly throughout the week
A crisis was reached this morning
| when announcement was made that
| the firm of Lazard Freres, which is
a member Of the bond syndicate, had
engaged $2,500,0O0 of gold for ship
| ment. This announcement naturally
| gave rise to the impression that the
syndicate had Withdrawn from it's
controlling position behind the
throne, and it sent quotations tum-
bling in Wall street, besides starting
| stories that the syndicate had dis
| solved, that a bond issue was i'm
minent, and that the treasury would
fast drift back to its old position of
| the flark days of last winter. Before
the afternoon had passed several
of the city banks had come to the
aid Of the subtreasury with deposits
of gold made in exchange for green
backs, explanations had been made
by members of the syndicate and the
firm which started the panic, and
quiet had been restored when the
moneyed institutions closed their
doors for the day.
DEPOSITED BY BANKS.
The gold deposits made by the
banks will offset the shipments of
tomorrow. The Hanover National
bank set the example with a deposit
of $50O,000. That made $1,000, 600 in
gold that the Hanover bank has
paid in, President Howard said,
| since the last loan was made. The
| American Exchange National Bank
also paid into the treasury $780,
600, and the National Bank
Of Commerce followed suit with an
other 100000. With reference to this
deposit President Sherman said that
the 100000 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. The National
City bank is credited with an inten-
| ton to deposit $500,000, or double
that amount. 1t is expected in bank
! ing circles that the deposits of gold
by the banks for greenbacks will
| reach $4,000, 900 this week. The ship
ments tomorrow make a total for
the week of $7,200,0O0, the largest
weekly outflow on record, except
the $7,700,O00 sent abroad in one
week last January, when the drain
on the reserve reached it's highest
tide.
The following statement was au-
thorized by the bond syndicate to-
| night:
ITS OBLIGATIONS ENDED.
''The impression has become general
| that the members of the bond syndi-
cate entered into an agreement with
| the United States treasury to main
| tain the 500, ZOO, 600 reserve until Oct
l, prox., and that upon that date
said obligation will cease. Such is
| not the case. The bend syndicate full
| filled all its obligations to the govern
| ment in June last, and has not since
| been boCnd in any way to the treas
| ury. 1t is true that it has from time
to time since last June paid over vari-
| Gus sums in gold coin to the treasury,
which have sufficed to maintain the
| reserve, but it has done so volun-
tarily, and will continue to do so in
the same spirit for the same mo-
tive.
80 far as Oct 1 is concerned, it
| has no relation TO the action of the
| bond syndicate, and It will continue
to deposit gold until Nov. and Dec.
l and Jan; /, if feasible. to do so. But
neither the bond syndicate nor any
| one else can control the clements
But the idea that its relations to the
treasury situation will be any different
| on or after Oct. ], from what they are
now, and have been all along, is
| erroneous and should be corrected"
The following statement was made
in writing by Messrs. Lazard Freres:
Hoping that bills of exchange
against merchandise export would
! during the first half of September, we
continued for a long time to supply
| our customers with bills of exchange
| for which we could not at the time
| find cover. A combination of circum-
stances leaves the market bare of
| commercial bills and makes necessary
| 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
| by Europe holding large quantities OF
| cotton at cheap prices, and its indis-
| position to buy freely at quotations
| now ruling. Further reasons are the
| poor demand for our wheat and the
| low prices it brings, and the cheap
ness of money at this center, which
makes 1t undesirable for European
| bankers to increase their loanable
| funds here
In reply to questions, a member of
| the firm said he desired to state
| there was no special significance in
to go to meet a temporary emer-
gency, and with the moving of the
| cotton crop in a few weeks the whole
difficulty would adjust itself.
MORGAN'S STATEMENT.
j. Pierpont Morgan, head Of the
government bond syndicate, was
asked as to the truth of the rumors
of the dissolution of the syndicate.
Mr.. Morgan replied: "The bond syn
dicate is still in the field. There has
been no rupture. The syndicate will
continue to do all that it can to help
maintain the treasury gold reserve at
the $780, 900 mark. The obliga-
tions of the syndicate expired, how
ever, some time ago."
Mr.. Morgan expressed surprise at