The morning times., 1895-09-13
GOLD RESERVES DECLINE
1t Causes Treasury Officials a
Good Deal of Anxiety.
IT'S EFFECT UPON EUROPE
Apprehension Felt Lest Foreign Hold
ers OF American Bonds Become
Frightened and Dump Their Securf-
ties Upon the Market-This Would
Cause Terrible Depression In Prices.

The fact can no longer be denied that
the utmost apprehension exists among Of
ficials of the Tresury Department because
OF the steadily decreasing gold reserve.
This feeling OF alarm is not produced by
reason of the beliefthat the Morga n Beimont-
Rothschid syndicate will abrogate their
agreement to protect the Treasury until the
first Of October, and their verbal promise,
given to the President seven months ago.
that the god reserve would be maintainedat
the legal limit of SIOO, ,OOO, 900 after that
date until the convening OF Congress, when
an opportunity will be afforded for remedial
legislation.
The dlsmay among government officials
is caused by the effect the decline in the gold
reserve will have upon the financial
ceDters of Europe.
FRIGHTEN FOREIGN BOND HOLDERS.
1t is held that the present shortage of three
millions, which is daily being increased.
unless more promptly met by daily deposiu
by the syndicate, VIII have the effect of
frightening the holders of American securi-
ties abroad and is likely at any time to
securities In the New York market. This
would naturally BE- followed by an enormous
depression In prices and accompanied by the
withdrawal OF millions of dollars in gold
for the purpose of paying foreign investors
frightened into sacrificing their holdings by
reason of falling gold reserve.
Much relief has been expected to follow
the movement of the cotton crop, but the
receipts of gold from this source would By
no means offset the exports rendered neces-
sary by reason of the holders of American
securities becoming panic stricken.
Asa consequence of such a condition there
would he q general depression of business,
which would only add to the serious charao-
ter of the situation
Tie feeling of aprrehe nsion is not az
this time caused by any real or immediate
danger, but on account OF the uncertainty
that exists concerning the future. The
question frequently arises: II the syndi-
cate fulfills its solemn promise to main
tain the reserve until the first OF October
and then ignores its verbal promise to
continue their protection until the assem-
bling OF Congress, what viii be the resuH7
There is only one answer to the query.
and that is to the effect that another sale
of bonds would be unavoidable. 1t is
certainty that the reserve could not again
reach as low a point as heretofore with
out more disastrous results following.
and the issue of bonds must be made with
more promptness and less delay
1t is hourly expected that the syndicate
will deposit three or four million dollars
and bring the reserve TO the legal limit,
but each day OF delay only increases the
possibility of panic being started among
the holders in Europe of American securi-
ties. This procrastinatlon is the feature
of the situation which produces anxiety
among officials of the Treasury Depart
ment.
Tue Treasury gold reserve is officially
stated at S97 81 2,0O6, subject to an adj
dition of 81 800, 900, not yet taken up "
Treasurer's books.