The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-22
PUT A QUIETUS ON THE PANIC.
BANKERS AGREE TO BUILD Up
THE GOLD RESERVE.


Plans TO stop Further Exports of
the Metal Under Confederation.
Nearly S2O,OoO,OOO in Coin PIedE-
ca the Treasury I'm Exchange for
Legal Tenders - Crop Imports
Counted ON to Stop the Outflow
Soon.
New York. July 2i.-The situation In
Wall street cleared up somewhat to-day,
and the bears, who have been hammer
ing the market recently, were confronted
with new condition On Monday +. y.
Tappen of the Gauatin National Bank
who has been a leader In financial circles
Tor years, and IN time of panic always
acts as the chairman Of the loan com
mittee, which has charge OF the loan GER
tihcate5, made a tour among the down
town banks for the purpose of sounding
the leading officials as 10 their willing
ness to step IN and protect the govern
ments gold reserve. The bears in the
stock market, who have been unusually
successful since the adjournment OF the
Chicago convention, We're indulging in all
sorts Of sensational talk about raids on
the treasury gold, and 1t must be admit
effect. They were not prepared for MT
Tappen's action however, and to-day
when It was officially stated that the
banks had fallen In with Mr.. Tappen's
IDEAS and would contribute $2O.O0OOO0 OF
so of the metal, confidence was restored
in measure, and a good proportion of
the paper profits of the shorts was wiped
out.
The gold to be turned into the sub-treas-
ury will bring the reserve up to the tradi-
tional hundred million mark and accord
ing TO authorities 1t will be kept there If
the banks can bring It about. The en-
couraging feature Of this latest effort on
the part Of the banks to sustain the gov
ernment credit was the unanimity which
prevailed among the bankers not single
one Of those approached on the matter
having failed to respond. The gold con-
tributed viii be turned into the sub-treas-
ury as soon as possible, but for all prac-
tical purposes, It Is at the governments
disposal already.
An important question, that of checking
gold exports, is also being discussed IN
Wall street circles. As yet the matter Is
in embryo. Some of those interested are
In favor Of advancing rates for money,
but against this 1t IS argued that If rates
should stiffen funds would pile higher
and defeat the very object the bankers
are trying to obtain. Others speak Of buy
ing gold in Europe and i'm
porting II the same as in the
panic of 1898. 1t is well known that the
bulk of the gold shipped recently has cost
Austrian and German bankers pretty
penny and it IS stated that the shippers
here have been allowed as much as Is per
cent. profit. In addition II must be re-
membered that for a long time sterling
exchange ruled against the shippers and
that the European consignees also had
to make up this difference to the consig-
nor. Other bankers again argue that
with the financial institutions acting as
a unit, the treasury reserve can be he'd
intact until cotton, wheat, etc, begin to
move Before long they say, the sterling
exchange market will be flooded with cot
ton futures and this will put an end to
gold exports without resorting to arti-
fetal methods.
President Tappen said this afternoon:
The gold TO be contributed to the treas
ury has been collected entirely among
banks which belong to the New York
clearing house. About S1SO00,OO0 has been
pledged up to the present 1t is hoped
to increase the amount to $50, 1000 900. Some
of the trust companies which have gold,
may be asked TO contribute. / telegra phed
to-day TO a prominent bank off1cer in
Boston asking him TO collect gold for the
treasury. He replied by telephone that
he would interest the banks IN the Boston
clearing house in the matter.
Il have not met with decilnauon from
a single bank that l selected as a con-
tributor. There has been the heartiest
cooperation by the banks The list viii
not be completed before Thursday, and no
gold will be delivered to the sub-treasury
before that day. There is no way Of pre-
venting gold exports so long as II is
cheaper for the Berlin bankers to obtain
gold In New York than IN London or else
where. The situation may change so that
IL will be cheaper to get gold in London
Washington. July 2l.-The treasury gold
reserve stood at Ss9,GO3. S65 at the close OF
to-day's business. The days withdraw
ais We're s6l4,l0O
There was no information for publica-
tion at the treasury of the contemplated
action of the New York banks in comine
to the relief of the treasury. Acting Sec
rotary Curtis said he had no official in,
formation to give out. The treasury has
about SS7, coo COO in United States treasury
notes and about $4,000 900 i'm sherman
notes, and could readily exchange S20.0G0.-
0o0 of them for gold. Both classes of notes
are redeemable in gold on presentation.
so that Of the New York banks exchanges
gold for them, and later on they desire
gold, all that is required is to present
them TO the treasury for redemption, ana
they will get gold for them
DIRECT LEGISLATION