The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1895-09-14
GOLD MOVEMENT CRISIS (!
Heavy Withdrawal Causes a Stir in
Wall Street.
SYNDICATE REPORTED DISSOLVED
The Prompt Action of the Banks Relieved
the Anxiety That Pervaded the Bx-
change-The Slump in Cotton
and Grain Responsible.

NEW YORK. Sept. 14.-Yesterday was an
exciting one and for time bid fair to be
a critical one in the financial field, so that
many feared that it might pass into his
tory as a smaller addition of certain
Black Friday of years ago. But today the
disturbing elements are better under
stood, 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
their ability to do so had disturbed the
moneyed interests increasingly through
out the week A crisis was reached when
the announcement was made that the
firm of Lazard Freres which is member
of the bond syndicate, had engaged 50 ,500.
900 of gold for shipment This announce
ment naturally gave rise to the impress
sion that the syndicate had withdrawn
from it's controlling position behind the
throne, and it sent quotations tumbling
in Wall street, besides starting stories
that the syndicate had dissolved, that a
bond issue was imminent and that the
treasury would fast drift back to it's old
position of the dark days of last winter.
of the city banks had come to the aid of
the sub-treasury with deposits of gold
made in exchange for greenbacks, explana-
tions had been made by members of the
syndicate and the firm which started the
panic, and quiet had been restored when
themoneyed institutions closed their doors
for the day
The gold deposits made by the banks
will offspt thp sbinnaOtS Of today
The Hanover National bank set the ex-
ample with deposit of $500, 900. That
made SO, 100000 in gold that the Hanover
bank has paid in, President Howard said
since the last loan was made The Amer
lean National bank also paid into the
treasury 100000 and the National Bank of
Commerce followed suit with another
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 contrib
uted gold in the same proportion there
would be no further difficulty.
The National City bank is credited with
an intention to deposit half million, or
double that amount. 1t is expected in
banking circles that the deposits of gold
by the banks for greenbacks will reach
S., 100000 this week.
The known shipments to Europe today
will be: 81, 600 by Lazard Freres, 81,
100000 by William H. Crossman & Bro,
100000 by Hoskier, Wood 81 Co., 100000
by Hart & Rand and 100000 by Hesslage
& Fuller, while Handy & Harman will
forward between $150,000 and $200,0 900.
This will make total for the week of
S7,200,00O the largest weekly outflow on
record except the 81, 600 sent abroad in
one week last January, when the drain
upon the reserve reached its highest tide.
Explanations of the position of the bond
syndicate toward the treasury and of the
reasons impelling Lazard Freres to combat
the policy of his colleagues were secured
by the Associated Press. The following
statement was authorized by the bond
syndicate.
"The impression has become general
that the members of the bond syndicate
entered into an agreement with the United
States treasury to maintain the 100000,
600 reserve until Oct. prox., and that
upon that date said obligation will cease.
Such is not the case.
1.-THE bond syndicate fulfilled all its OBJ
legations to the government in June last,
and has not since been bound in any way
to the treasury. 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 re-
serve, but it has done so voluntarily and
will continue so to do in the same spirit
and for the same motive.
$50 far as Oct. is concerned it has no
relation TO the action of the bond syn
dicate, and it will continue to deposit gold
until Nov. / and Dec. 1, and Jan. 1 if
necessary and if existing conditions make
it feasible to do so. But neither the bond
syndicate nor any one else can control the
elements. But the idea that it's relations
to the treasury situation will be any differ
ent on or after Oct. from what they are
now and have been all along is erroneous
and should be corrected