The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-14
TROUBLE OF FINANCIERS.
Certain Firms Said to Be Max
ing Profits on the
Side.
PROPPING UP THE RESERVE.
Belmont, Morgan and Associates De-
termine to Keep Up Uncle
Sans Credit.

NEW YORK, N. Y, Aug. 13.-The Gov
eminent bond syndicate to day added
$l,34600O to the gold reserve in the United
States treasury. The deposit was made
at the Sub-Treasury in New York. 1t was
mainly in checks issued by the assay office
for gold bullion delivered to that irstitu-
ton. Some coin was furnished. The
assay-office checks were purchased by the
syndicate from bullion-dealers. The syn
dicate is to supply more gold.
Arbuckle Bros, the well-known coffee
importers, withdrew $4,000 in gold to-
day for shipment to Europe. The with
drawal, it is stated, was made only after a
meeting of the members of the bond syn
dictate this afternoon. As the story
runs, the syndicate, after a close investiga-
ton, discovered that all the members were
not adhering to their original contract in
regard to the gold shipments; that two
well-known firms, instead of appearing in
the matter themselves, used the house
which has recently done the bulk of the
shipping of the yellow metal. 1t has been
said for some little time that Crossman &
Bro. were not forwarding gold in such
large quantities to make payments on the
firms account, but that its bills were sold
against the gold for the profits accruing
directly from such operations.
Arbuckle Brothers are recognized as
competitors of Crossman & Brother, and
shared in the bond-syndicate profits,
whereas Crossman & Brother were not in
that deal. While the syndicate members
would speak only in whispers, it is evident
that they have discovered treachery in
their camp, and have taken the initiatory
steps to punish the offenders. When the
inside facts are known, they are likely to
cause considerable commotion in financial
circles. Having made enormous profits
through their participation in the syndi-
cate operations. it was not believed for a
moment that any OF the foreign exchange
houses would ship gold, and thus hamper
the Belmont-Morgan interests, which have
been striving to Keep the treasury gold re-
serve as high as possible.
WASHINGTON, D. c., Aug. 13.-Evi-
dence that the Belmont Morgan bond syn
dictate intend to protect the gold reserve OF
the treasury against raids upon it for ex-
port to Europe was received at the depart
ment of acting Secretary Curtis at 4:15
o'clock this afternoon. A telegram from
acting Treasurer Muhleman reached him
stating that J. Pierpont Morgan & Co. had
deposited 81, 346, 900 in gold coin in ex-
change for United States notes.
A previous telegram to the department
contains the information that $500, 600 gold
coin had been withdrawn from the Sub
Treasury for export tomorrow. With the
deposit of gold to-day by the syndicate,
their total deposits since gold exports have
been resumed on a large scale reached a
total of S., 346, 900. 1t is estimated here
that with exchange at the high figure
quoted-4.90% to 4.90M-a net profit oil
$4,000 on each 100000 gold exported is
made by the shippers. Treasury officials
are much gratified at the action of the syn
dictate, and it is construed to mean that
they will not permit the gold reserve to
fall below s1O0,000,0OO. At the close oil
business to-day the reserve stood at $101,-
933 us.