The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-08-21
THE GOLD RESERVE
THE BOND SYNDICATE WILL
MAINTAIN 1T AT THE $780,
900, 900 MARK.
DEpoSITS OFFSET WITHDRAWALS.

The Syndicate Has So Far Voluntarily
Deposited About So ,OOO, 1000 in Gold
to Keep the Reserve From Reing Re-
duced---OnIg Mr.. Carlisle and the
President Know by What Unwrit-
ten Contract They are Bound TO DO
This, or Wkers They Get ahe Gold.
NEW YORK, Aug. 2O.-The govern
ment bond syndicate has tnrned 81 o00,-
900 in gold into the sub-ireasury. This
brings the net gold reserve to over $780,
100000 after deducting the amount
withdrawn for shipment to Europe.
The gold syndicate to-day prevented
the gold reserve from falling below
the 800, 900, 900 mark. About two
o'clock the Treasury Department was
informed that 81, $50 600 in geld had
been withdrawn for export from the
sub treasury in New York. As the gold
reserve at the close of business to-day
stood at $102, 527, 146, the withdrawal
would have redul ed the reserve to $99,
677, 148. 4 few minutes afterwards,
however, Acting Secretary Curtis re
ceiyed telegram saying that Mr.. Pier
pont Morgan of the syndicate had de-
posted $2,000,000 in gold in exchange
for greenbacks This deposit swelled
the reserve TO s101, ,677,14S.
The officials at the department display
no apprehension as to the gold reserve
and intimate that the syndicate will con
tinue to make deposits to off set with
drawals. But they decline to express
hnir hns Eo;+ A.
question raised constantly is as to the
pledge under which the syndicate is
making these deposits and the period it
covers, as well as the ability of the syn
dlcate TO continue to protect the reserve.
But little light can be shed on these
questions, however, as it is said that
probably only two government officials
President Cleveland and Secretary Car
Isle know the unwritten part of the
agreement made with the syndicate
which secured the last issue of bonds.
The syndicate has so far voluntarily
deposited about $4,000, 600 in gold The
manner in which the syndicate has ac-
cumulated the gold which it has volun-
tarily exchanged at the Treasury for
greenbacks is not absolutely known, as
the syndicate does not make public its
operations, but at the Treasury Depart
ment it is believed that most of it is OBJ
tanned by giving exchange on San Fran
cisco and by buying bullion checks.
The circulation in San Francisco is
practically all gold. The movement Of
money is east as a result of which San
Francisco exchange on New York is usu,
ally at premium, equal to the cost of
the transportation of gold across the
continent. For the same reason New
York exchange On San Francisco is often
at slight discount, although just now,
it is at par By Offering exchange o1
San Francisco, therefore, the syndicate
can accumulate large quantities of gold
in San Francisco at practically no ex-
pense. The syndicate can also procure
gold by buying bullion checks issued for
bullion deposited at the assay Offices aud
the government mints. These, at the
present time, when there is demand
for gold, bring slight premium.
1t is not believed, however, that the
syndicate is put to much expense in ac-
eumulating in this fashion practically
the entire product of the American gold
mines, which averages usually about
$35, 900, 900 a year.