Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-09-21
The Gold Crisis Regarded as q Thing
of the Past.
TEE BOND SYNDICAfES DISSOLUTION
A Commercial Rather Than Spec
uIative Market.
THE GENERAL TRADING

Special Dispatch to Ths Evening Star.
NEW YORK. September 21.-Probably the
most significant feature Of the weeks de-
velopments was the formal dissolution Of
the government bond syndicate this morn
ing by distributing the Individual profits
on last February's transaction with the
federal treasury. Members Of the syndi-
cate regard this action as implying that
the treasury is no longer In need Of further
assistance Of a similar character. and that
the crisis in the gold movement has been
successfully passed, for the balance Of the
year at least Messrs Lazard Freras an
nounced during the morning that the out
now OF gold was practically at an end in
view Of the assured increases in all classes
Of commercial drawings.
In some quarters 1t is feared that a mod
crate amount of gold may go out next
week, but II so. 1t is not likely to be the re-
suit of new contracts. as majority of the
foreign houses in the street indorse the be-
lief that the outgo has terminated. These
assurances should prove an important fac
tor in speculation during the coming week.
as the condition of the foreign exchange
market has Of late been the one inharmo-
NOUS factor of the situation.
The banks have lost over seven and one
half millions in lawful money during the
week, according to the official statement
published today, but the full loss is not
generally thought to be covered by the
published amount. Fully seven millions Of
the loss is in legal tenders drawn on &C.
count Of the interior currency shipments
and to procure gold at the subtreasury.
This important reduction in the surplus
Of the associated banks will undoubtedly
have a direct influence on the money 0laf-
ket by advancing interest rates in direct
proportion to the decrease in the supply OF
borrcwable funds. The tendency of the
bat hos IAar in, n ttov,
all week and four per cent call loans are
considered imminent by the more careful
followers of the times. Indicating, as 1t
does. demand for money in CONNER
cial. rather than In speculative enterprises.
higher money will practically be analogous
to higher prices for the better class of
securities. That the money has not gone
into speculation is evidenced in some
measure by the fact that decrease of
nearly five and one-half millions Is re-
ported In this weeks local loan business as
compared with last weeks figures.
The unfavorable feature Of the specula-
tive situation at the close Of the week Is
the professional character Of speculation.
With an inconsis tent room element, long
OF stocks, and bent on forcing advances in
order to facilitate early profits, IL is easily
seen why conservative outside element
holds aloof in anticipation Of a moderate
reaction. With the gold market again re-
duced to normal conditions, however, Ii ia
considered probable that this dangerous
professional domination may be over
thrown during the coming week by a
le ultimate outside demand, based on SUBJ
stantial evidences of general business pros
perity. Should this demand continue to he
withheld setback from today's closing
level will not long be delayed, but as salts
factory conditions are once more in the
ascendancy 1t is scarcely probable that an
opportunity to participate in a now
practically assured sentimental advance
will be passed over. The weekly reports of
trade made during the day reflected
favorable changes in all the more important.
items of one week ago.
The iron business continues to lead, with
orders far into the season and prospects of
improved prices for the manufactured pro-
duct. The crop movement has developed
into an important factor for good, and rail-
road earnings again reflect the profitable
side of the transportation business Senti-
ment is optimistic, and conditions are not
lacking In harmony.