The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-07-23
GOLDBUGS AT WORK.
ALARMING STATEMENTS ARE Al
READY SENT OUT.
Judgment of the Best of Cur Fin
ancial Authorities" Which Means
the Opinion OF the Men With
Money.

NEW YORK, July 22-The strain upon
the resources and temper of the financial
community for some time, owing to the
steady shrinkage of the prices of ex-
change securities, has recently been in
tensified by political and other causes
In consequence, values have steadily
melted away on a panic scale though
without visible excitement or open disas-
ter. The market has appeared to be en-
tirely unsupported and its only mainstay
during the past few weeks has been SPAS
mode buying of our securities at times
on large scale for foreign account. the
fact that the commercial balance of trade
is in our favor, and that but for the re-
suit OF the prevailing gloomy sentiment
the movement of gold should be toward
instead of against the United States, ag-
graVates the situation. The dominant de-
pressing influences have been the steady
export OF the metal and the consequent
rapid process of depletion of the govern
ment reserve. On July II the free gold
held amounted TO 500, 293 68S. BY July
18th the reserve had fallen to $96, 703, 621,
and at the close of business yesterday it
stood at $50, $50, 1870. These figures were
further reduced today by Withdrawals
amounting to $3,375, 900, including 81, 600 600
for export tomorrow, bringing the total
down to sS7, 405, $50. The decrease in the
eleven days amounted to nearly $13, 000 COO
The continued strength of the foreign
exchange market clearly indicated a
steady outflow of gold, and the transfer
Of credits from this country to Europe.
The judgment of the best financial au-
thorities is that the government could
market a further issue of either t. AZ or
per cent bonds at par, but the policy
of such action is admitted to be bad, in
view of the probable political effect. The
sharp declines in securities recently had
created a sentiment of profound discour-
agament in Wall street and the gravity
of the situation was keenly appreciated
in high financial and banking circles.
President Fred P. Tappen of the Gallatin
National bank. who is the chairman of
the clearing house committee for the
New York associated banks, began mis-
sionary work a few days ago among his
brother bankers, with a view of securing
pledges to protect the rapidly dwindling
treasury gold reserve by placing at the
disposition of the government a sllbstan-
tial part of their holdings in gold in ex-
change for legal tender notes, and sue
ceeded in obtaining offers aggregating
about $13,0C0.000 Conditional offers of
about s5,c0O00O have been. received from
other New York and Boston and Phila-
delphia banks. The successful progress
that was being made helped to rally the
stock market to partial extent, al
though in the opinion of many financiers
the remedy was not likely to be of more
than temporary effect. The street had
previously witnessed the disappear
ance Of enormous sums of gold
owing to almost exactly similar
conditions to those now prevail
ing. Today, however, a complete change
in the financial temper took place when it
became known that ]. p. Morgan had
called conference of the great banking
houses with a view to concerted action to
prevent exports of gold within the next
sixty days The meeting was attended by
representatives of all the leading inter-
national banking houses. There was also
present John A. Mccall, of the New York
Life Insurance company; Mr.. W. H.
Crossman, of Crossman & Bros; Mr..
Plinky Fisk, of Harvey Fisk & Sons, and
other financiers. Mr.. j. p. Morgan pre-
sided The conference lasted about an
hour and after adjournment it was an
nounced that an agreement had been
made and a committee appointed to elab-