The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-09-14
And Is Not Now bound I'm Any Way 10
Aid I'm Maintaining the Treas
ury Gold Reserve.
STATEMENT FROM BANKERS
OVER SEVEN MILLIONS wITHDRAwN
FOR EXPORT THIS WEEK.
s2,5oo,Ooo TO Re shipped To-day by
Lazard Freres, Member Of the
Syndicate-Deposfts Of Gold.

NEW YORK, Sept l3.-This dcy was al
exciting and for a time bid fair to
be a critical one in the financial field, 50
that many feared that II might pass into
history smaller edition OF certain
Black Friday OF years. ago. But tonight
the disturbing elements are better UNDER
stood and the outlook for the treasury and
the maintenance OF its gold reserve is COM
paratively clear Uncertainty TO the in
tention Of the government bond syndicate
TO maintain the reserve at the S100.0oo.oo9
mark and TO its ability 10 do so had
disturbed the moneyed interests increasing
ly throughout the week A crisis was
reached this morning when II was an.
nounced that the firm OF Lazard Freres.
which is a member Of the bond syndicate.
had engaged two and a nalf millions OF
gold for shipment. This announcement nat
uraily gave rise 10 the impression that the
syndicate had withdrawn from It's controil-
ing position behind the throne and 1t sent
quotations tumbling in Wall street. be-
sides starting stories that the syndicate
had dissolved. that a bond issue was i'm
minent and that the treasury would fast
drift back to its old position of the dark
days Of last year. 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 greenbacks.
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.
The gold deposits made by the banks will
offset the shipments OF tomorrow. The
Hanover National Bank set the example
with deposit or $4,000. That made
$4,000 in 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 $4,000. and the National Bank OK
Commerce followed suit with another
100000. With reference to this deposit,
President Sherman said that the $3ose2
represented one-third of his banks gold
holdings, and that IL all the banks con-
tributed gold in the same proportion there
would be no further difficulty. The Ma
tional City Bank is credited with an inten-
ton TO deposit half million or double that
amount. 1t is expected in banking circles
that the deposits of gold by the banks for
greenbaeks will reach ss,ooOooo this week.
The known shipsssss-s TO Europe 5srssssu.un
will be s2,5oOoOo by Lazard Fferes, 100000
by William II. Crossman & Bros, 100000
by Hoskier, Wood & Co., ooooo by Hart &
Rand and 100000 by Nesslage & Fuller.
while Handy & Herman will forward be-
tween sl5oo0o and $4,000. This will make
a total for the week OF S7.20o.0oo, the largest
weekly outflow on record. except the
N700000 sent abroad in one week last jan
uary, when the drain upon the reserve
reached its highest tide.
BOND SYNDICATE EXPLAINS.
Explanations of the position OF the bond
syndicate toward the treasury and OF the
reasons impellng Lazard Freres to combat
the policy of his colleagues were secured by
reporter. The following statement was
authorized by the bond syndicate tonight:
The impression has become general that I
the members OF the bond syndicate entered
into an agreement with the United states
treasury TO maintain the .o0e reserve /
said obligation will cease Such is not the
case. The bond syndicate fulfilled all its
obligations to the government last June,
and has not since then been bound In any
way to the treasury IL is true that IL has
from time TO time since last June paid over
various sums in gold coin to the treasury.
which have sufficed 10 maintain the re-
serve. but it has done so voluntarily and
will continue TO do so in the same spirit
and for the same motive. So far as Oct.
is concerned. il has no relation TO the ac-
ton of the syndicate, and IL VIII continue
to deposit gold until .Noy 1 and Dec. ana
Jan. !, II necessary, and III existing con-
ditions make il feasible TO do so. But
neither the bond syndicate nor any one
else can control the elements But the
idea that its relations TO the treasury sit
uation will be any different on or after
Oct. l from what they are now and have
been all along is erroneous and should De
corrected
J. Pierpont Morgan, the head OF the bond
syndicate, spoke reassuringly OF the out
look. He said The bond syndicate 10
still in the field. There has been no rupture.
The syndicate will continue TO DO all that II
can to help maintain the treasury gold re-
serve at slo0.0oo,o00 The obligation OF the
syndicate expired. however. some time
ago." Mr.. Morgan expressed surprise at
the slow movement OF the cotton crop and
the present scarcity OF the bills against
breadstuffs. He said that undoubtedly the
offering OF these bills would be daily IN
creased In the next few weeks, ana thus
be safeguard against exports.
The following statement was made In
writing by Messrs. Lazard Freres Hop
ing that bills OF exchange against
merchandise exports would come into the
market I'm fair amounts during the nrst
half OF September. we continued Tor long
exchange for which We could not at the
time find cover. A combination OF circum-
stances leaves the market bare or CONNER
ment of gold TO cover part or the accumu-
lated Indebtedness and to continue supply
reasons for these conditions are In part tho
late cotton crop and the slow movement
thereof by Europe. holding large Quantities
OF cotton at cheap prices and It's indis-
position TO buy freely at quotations now
ruling Further reasons are the poor de-
mand for our wheat and the low prices II
brings and the cheapness OF money at this
center. which makes IL undesirable for Eu-
ropean bankers 10 increase their loanablo
funds here"
In reply to questions member OF the
firm said ne desired 20 state there was no
special significance In the shipment OF the
gold but that IL had 10 go 10 meet a tenn
porary emergency. and that with the NOV
ing of the cotton crop In few weeks the