Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-02-19

was collected at these points. on Satur-
day the "a day of February. the total
amount Of free gold coin in the Sub
Treasury at New York amounted To
81. 100 3S4.5O. and the only possible way or
adding to that was from the mints.
whose total coinage. mt San Francisco.
New Orleans, and Philadelphia. was only
about 10000 per diem. The total amount
Of gold coin owned by the United States
Government was exceeded by the demand
certificates outstanding against II. and
the government was practically borrowing
gold coin from the owners Of these de.
,nrni certificates and substituting golf
bullion In its place in order to carry on
specie payments I'm gold. The reserve on
that day OF coin and bullion over out
standing certificates was si25l2, f32
on Wednesday evening. the Goth Of
January. the Assistant Treasurer at New
York reported TO the Treasury Depart
uent I'm Washington that he thought he
could hold on until Saturday, bur that
the next day might decide the situation.
Between December I. 1884,. and Febru-
ary 13 1893, the total amount Of with
drawals Of gold was $50. 7Se.302. ard the
exports Of gold during the same period
amounted To only sS6 So, $50. showing that
about forty-three millions had been with
drawn for boarding purposes In this
&C Cumry curing tfIS pcrlon-
RUN ON THE TREASURY.
In other words. citizens of the United
States had lost faith in the ability OF
their government TO pay gold for It's
notes. and "A run on the Treasury e, m
menced. That this gold has ,.ot gone
into banks is shown by the fact that
or December Is. 1894, the total amount
held by the banks was ;;S.0)O,Wo. and
on the lst OF February. lSa5. eighty-three
millions. or thirteen millions less than
was held on December /. 1894.
1, must be remembered that the with
drawaIs at New York, while male by
the banks were rot made in their ow n
interest. but very largely for their coun-
try customers, who are accustomed 10
make all these leading transactions
through New Yofk, and. in fact. the
Treasury was informed by one banking
establishment in New York that they
had over one million ana df'y requests
COR gold In exchange for rotes over its
counters on Wednesday, the %cth Of
January
In considering the details Of the con-
tract II must be remembered that the
Treasury was dealing with community
more or less excited and panicky, and
that foreigners had been for a long time
distrustful regarding American securities.
and had sent large quantities TO TINS
country for sale.
THE PRICE PAID.
The people with whom the dealings
were made had taken part in the Novem-
ber syndicate. ard had seen the bonds
purchased ut that time at III rise sharply
to lla and fall thereafter TO llf-the latter
figure showing net loss OF 3 per cent
on the price paid by the syndicate. and.
taking this in connection with the posi-
lively hostile attitude on the part Of Con-
gress. it is not surprising that high
price could rot be obtained. In fact, II
was difficult 10 make any dealings at all.
After trying four days to get reduction
even to 3 5-S PER cent. it was
found absolutely impossible to OBJ
tain Il. and the position was too criii-
cal to admit Of longer delay. II was cur
rently reported. and generally accepted
by the public, that a rate ~ IL per
cent. was being obtained. This is equiva-
lent TO a little over 100 II.
The actual amount paid by the con-
tractors is l0L4HG. or q shade below the
rate Of , 3-4 per cent. The difference In
the two prices is about "a or somewhat
under three millions Of dollars. out of
which Is To be paid the expenses OF con-
trolling the market for exchange, the
difference between London and New York
being cents on the poun1. or over !
per cent on the transaction; the neces-
sary commissions. interest, taXes-which
are very heavy abroad-and any fluctua-
tion which may take place before the en-
tire amount Is marketed, and in the pres
ent condition Of financial affairs the sale
Of s62.nDo0o of securities would almost
necessarily drop the price several per
f.f