New-York tribune., 1896-07-23
TO STOP GOLD EXPORTS.
EFFECTIVE MEASURES ADOPTED BY
FOREIGN EXCHANGE HOUSES.

MEASD HES Al(Ofl lED DI
FOREIGN EXCHANGE HOUSES.
RESULT OF A MEETING CALLED BY J. PIERPoNr
MoRGAN-AN AGREEMENT TO FURNISH
s7soo.Ooo IN STERLING EXCHANGE If
NEEDED TO MEET THE REQUIRE
MENrs OF REMITTERs
Effective measures were adopted yesterday to
stop the expectation Of gold. J. Pierpont Nor
gan, at 10 o'clock In the morning. reached
Wall Street from his yacht. the Corsair. which
he left anchored az Bay Ridge. and sent out
an invitation for representatives OF foreign ex-
change houses to meet in conference at MS
office at Wall and Broad SITS. at noon Among
those who attended the conference were Ernst
Thalmann Of Ladenburg. Thalmann CO.; +.
NJ Thieriot and j. Walter Wood. jr. OF l.. Won
Hoffman, & Co.: George Crossman OF w. H.
Crossman & Bro; Z. Mayer OF Lazard Freres'
Jacob Schin of Kuhn. Loeb IL CO.; fihy
Fisk. Of Harvey Fisk Sons. and william
Saomon. of Speyer Co. John A. Mccall, presi-
dent Of the New-York Life Insurance Com
rany. was also present The following state
ment was issued after the conference:
An informal meeting was held today & at the oice
Of Mcssrs. J. p Morgan CO OF topesn n arn,nn
"r diminish rod exports or in any other way within
their to assist in the & OF tne so Ia
putting their gold at the disposal OF the treasury
~, The rSowns sc wan refered to Formulate Plan
j Pierpont Morgan, chairman; John Crosby Brown:
S Me.rs BrSwP eBo BGs co.. Jacob + sss Of
Messrs Kuhn. Loeb & Co WiaW u, Tss-. saomon d
Frtres and H. Tckeheimer Of Messrs. Heidelbach.
Ickelhelmer Co.
The understanding was that II was agreed to
furnish f15OOOOOO or S15OO0OOO in sterling
exchange II need be. 10 meet the requirements
OF rsmitters to Europe until the export move
ment Of cotton and grain should create enough
exchange to supply the demand There appears
70 he only one way 10 make exchange" and
that IS for the exchange houses In tho under
taking to go short Of sixty-day exchange.
In other words. the houses will make cut sixty
dav bills OF exchange-that is bills which they
will have to pay at the end Of sixty days-and
they will have these discounted in London. Ber-
lin Paris and other European financial centres.
so that they may draw sight biils-bills payaole
on presentation-or draw by cable against the
credits established by the sixty day. or long"
bills which they have sold.
HOW THE BILLS MAY BE PAID
The sixty-day bills may be paid by bills drawn
against cotton. wheat or merchandise subse-
ouently sent forward. or by bills drawn against
stocks ard bonds sold in Europe. 1t is expected
that the bulk Of the bills in the next sixty days
Will grow out Of the shipments OF cotton sea
room" has already been engaged for lo.0oo pales
of cotton TO be shipped to the other side this
month and next This cotton alone will Yield
S5OOOOO in exchange. The movement of the
new cotton crop will be we'll under way in two
or three weeks The crop of 1896 is two weeks
Of tba
Of last year The cotton crop this year is esti-
mated at 10000 600 bales. At present prices 1t
Will be worth $3.50 900 600. II three-quarters OF
II is exported, il will make $262,oCO.OOo worth
CT exchange.
The houses in the exchange agreemen, ex-
pee: not only not to lose by it, but to prof'.
They will sell exchange at as high figure as
possible and bring cotton or other commercial
bills at low figure as possible TO cover the
sixty-day exchange of which they VIII be snort
The difference between what they sell exchahg"
for and what they buy commercial bills Tor 10
cover less the original discount on their Sixty
day bills, will represent their pront. ). fier-
pont Morgan will manage the arrangement as
he did last year. when the Morgan belmont syn
dicate regulated foreign exchange under the
terms of the bond contract with the Govern
rnent The exchange houses will be formed into
a regular syndicate. They will share in the
nroets according TO the extent of the credit
they establish abroad and the amount OF bilis
they draw against It 1t is difficult to see how
there can be q loss by the plan under any cir
cunostances on the other hand. the houses
to,n,ng In II were satisfied that 1t would be
mere TO their advantage thar to continue to
shin gold W. II. Crossman & Bro, VINO
were not In the acknowledgment syndicate IN
1895. shipped $2O.00O,0O0 In gold obtained from
the Sub-Treasury while the syndicate contract
was IN force They will be In the new ex-
change syndicate They have not been shippers
this yea All the other hoGses which have re-
Gently been exporting gold VIII be members
These houses are Lazard Freres Hedelbach
Ickelhemer G. Co.. L. Won Hoffman, & Co. La
denburg Thalmann & Co. Kuhn, Loeb & Co..
and Muller Schall & Co
THE FINAL SHIPMENTS
Withdrawals yesterday OF gold coin from the
Sub Treasury and gold bars from the Assay
Office for shipmen. to Berlin by the Fuerst BIS
narck. Of the Hamburg American Line, which
sails to-day. will be the final shipments. The
list OF shippers follows:
Kuhn Loeb 4 Co. S5Oo.co bar,............ $3.50 900
IAHara ,nnmann & Co................ 5ol0O)
iieteibach ickeIheimer Co. (bars........ 25oc,O
Total Sz""o
In addition S2OO0O0 In coin was withdrawn
from the Sub-Treasury for shipment to Canada
and x125 900 by Siberman Joseph for counter
use" The Treasury gold reserve was brought
down to less than SS1.OW.OOO.
It has been said that Russia and Austria paid
all expenses and a commission of one-eighth Of
ner cent for the large amount Of gold procured
for them IN America. The foreign houses In the
syndcate will hereafter refuse to fill orders from
those countries
President Frederick d. Tappen. OF the Gallatin
National Bank who secured contributions OF gold
from the banks said at the close OF business:
THE amount Of gold actually subscribed by
New-York banks to be turned over to the Treas