The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-09-14

BuSS cotton and W heat.
New York. Sept ls.-This day was an
exciting one. aud for a time bid fair to be
a critical one IN the financial Held. Indeed.
il was feared that il might pass into his
tory As a small reproduction OF the Black
Friday OF years ago. But tonight the dis
turoing elements are better UnderJso9d.
and the outlook for the treasury and the
maintenance Of its gold reserve IS compar-
atively clear.
Uncertainty as 10 the intention Of the
government bond syndicate 10 maintain
the reserve al the century mark and as TO
its ability 10 do SO had disturbed the mon
eyed interests increasingly throughout
the week. \ crisis was reached this morn
ing when the announcement was made
that the frm Of LaZard Freres, which is
a member Of the bond syndicate. had en-
gagged s2,250000 Of gold for shipment. This
announcement naturally gave rise 10 the
impression that the syndicate had with
drawn from its controlling position behind
the throne. and il sent quotations tumb-
ling in Wall street beside startling stories
that the syndicate had dissolved. that
bond issue was imminent and that the
treasury was fast drifting back % its cid
position Of the dark days OF last winter.
Before the afternoon had passed, how
ever. the city banks had come 10 the aid
OF the suh-treasury with deposits OF gold
made in exchange for greenoacks; expla-
+. nations had been made by members of
the syndicate and the firm which started
the panic, and quiet had been restored
when the moneyed institutions closed their
doors for the day.
The gold deposits made by the banks
viii offset the shipments tomorrow. The
Hanover National bank set the example
with a deposit Of S5a000 That made
50. 400 900 in gold that the Hanover bank
has paid in. President Howard said.
since the last loan was made. and the
American Exchange National bank also
paid into the treasury 100000. The Ma
t.onal Bank OF Commerce followed suit
with another $500 000. With reference 10
this deposit, President Sherman said that
the $500 900 represented one-third OF his
banks gold holdings, and that II all the
banks contributed gold in the same pro-
portion there would he no further diff
Guilty The National City bank IS credited
with an intention TO deposi. S5fa.ooo or dou-
Bile that amount. 1t is said in bank ng
circles that deposits OF gold by the banks
for greenbacks Will reach s6,0oo0 this
week.
The known shipments TO Europe tomor-
row viii be s., 500 600 by Lazard Freres;
81. 600 boa by Crossman g. Bros; s6oo.eo0 by
Uoskier Wood G. Co: $500 900 by Hand a.
Rand, and 10000 by Nesslage Fuller,
while Handy q Harman VIII forward oe-
tween $50 on and $500 900 This will make a
total for the week of s., go eoo, the largest
weekly shipment on record except the
81. .7oa. coo sent out in one week last Jan
uarv. when the drain on the reserve
reached its highest tide
Explanations Cf the position OF the mona
syndicate toward the treasury and OF the
reasons impellinE LaZard Freres 20 COM
bat the policy Of his colleagues were sc
cured by the Associated Press. The fol
lowing statement was authorized ny 'ne
bond syndicate tonight:
The impression has been general that
the members of the bond syndicate entered
into an agreement with the United states
treasury 70 maintain the S00.000o0 re-
serve until October proN.. ana that upon
that date said obligation would cease. Such
is not the case The bond syndicate full
dued all it's obligations TO the government
In June last. and has not since been bound
in anv way 10 the treasury. II Is true II
has from time to time since last June paid
over various sums in gold coin 70 the treas
urv. which have sufticed TO maintain the
reserve. but II has done so voluntarily, ana
will continue 10 do so in the same spirit
and from the same motive 50 far as Dcto-
her 1 is concerned, IL has no relation 10 tha
action Of the syndicate. which viii CON
tinue to deposit until November and jan
uary l. II existing conditions make u Ieasl-
bic to do so. But neither the bond syndi-
cate nor any one else can control the ele-
rnents Put the idea that its relations to
the treasury situation viii he any different
on or after October than they are now and
have been all along is erroneous and should
be corrected -
+ p Morgan. the head of the bond synd-
cate. smoke reassurlngly Of the outlook 70
a reporter Of the Associated Press he
said: The bond syndicate IS stili IN tne
eeld There has been no rupture. The
-,.,5ios+e will continue 70 do all II can 10
helm maintain the treasury gold reserve Al
s1n0 00A OAa The obligations Of the sNndi-
cate however. expired some time ago
The following statement was made IN
writing BY Mr.. LaZard; Hoping that
hifls OF exchange against merchandise OK
ports would come into the market IN falr
amounts during the first half Of Septem-
bor. We continued for long time 10 sup
-,lv our customers with bills Of exchange
for which we could not at the time ma
cover. 4 combination Of circumstances
leaves the market bare OF comTnerclaI
bills and makes necessary the shipment ot
gold to cover part OF the accumulated IN
debtedness and 70 continue supplying the
daily demands Cf trade.
The rea sons for these conditions are IN
mart the late cotton Crop and the slow
movement thereof hv Europe holding
a~ya quantities of cotton az cheap prices
and its fndisposition 70 buy freely a quo
,afious now ruling A further reason Is
the poor rate for wheat az this center.
which makes 81 undcsirs bile for European
bankers 10 increase their loanabie funds
here
In reply 10 questions p member of the
frro said he desired 20 state that there
was no special significance IN the ship
r,ert of gold hut that - had - 20 10
meet a temporary emergency, and that
,-itb the moving Of the cotton crop IN a
few weeks the whole difficulty would al
lust itself
Zimmerman & Forshav will forward
ggad nao of English gold 20 Europe tomor-
row
The National Pagk bank has deposited
g - a.a of gold At the sub-treasury N
evrhauga for greenhackS- The National
Ega0k cf Commerce and the American TX
change National hank have each deposit
"a selu 1po Of gold and the Hanover Ma
tionaI SSo as@.
Morgan expressed surprise ~ tae SOW
movement cf the cotton crop and iHe
,,resent scarcity of balls against bread
sfriffs lie said hat undoubtedly tae OF
fa-srRs Of these bills would 10 daily n
creased iu the next few weeks, taus
guarding against exports
Ths president Of . large 0oWD-tp7sn
hank said the syndicate Was accumuiat-
ing gold as fast as possible and mat u