The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-10-16

washington City. Oct i5-Assistant Sec
feeafs W. r. Curtis, of the treasury de-
"a -nenf. has written letter TO Assist
~ secretary Dabney OF the agricultural
department. IN which he defends the New
forA bankers from the allegations often
made that they are interested in the with
er4wai OF gold from the treasury. Here
Is the letter:
non- Charles w. Dabney. 1r.. Assistant
secretary OF Agricuiture-Dear Sir: Re-
.ssIrhls 70 your letter and cur converse
',.,s ..oa o. yesterday concerning the campaign
- upon the bankers OF New York
IN tneir relations with the gold reserve T
uesaFe 70 submit the following for cousidera-
n. onc ine term raids by bankers at Nea,
..sss upon ne treasury. is one frequently
ss-s ssses. " writer's ard speakers who have no
a1.cu.dte knowledge Of the method bsr
: H.sn ~ aotes S-re presented for redemptios.
,.ss -',s. sup- sFest@sry sE New York. or the
e.iaI 'cter or number OF persons making
49, 49, presentation. The term banker
: -, 70 ne ass aned in most cases 10 cover
SlaSs OF men who are apparently en-
80 $500. 80 "a Withdrawing the god from the
IN ,Lst.a .ts.heat reserve anu putting IL away
~ ~ saslr private vaults for their own self
Isl.l, sI ~. posee and 70 accomplish certain a.
1asta improper objects The faess in tne
sase ara 50 difYerenA from these fanctfIIl
elements that IL seems worth while "a
-. attention TO them.
by IN. operation Of certain natural
SesIl.nefeaal ~ laws. without the interference
OF legislation, New York has herome the
ESltAns pace OF almost all contracts for
snreS Sa.e s OF our products exported or Of
enfssa 20 ns,i," sd" apf cad. Large amounts Of
..s. Do.Ase. sai.s. rice, tea, sugar and foreign
pstoausis consumed here. have 10 be par-
sA..e0 Nltn foreign credits and paid for
,s,t,,,.s, & &lofh with foreign exchange. The
s,,-,. az iestit Is that when We are selling
nHse sis,e goods abroad, ard there are mors
~ D-i.s OF exchange In he market than there
e. ens haha ,ha arIo' Tor whish is the case at pres
n.h.s ..ss price OF exchange falls. On the
NJ 90 4 ms FssF
in.s oau s.. ana ana are baying more or are pay
,hs III ~, usots 10 greater extent abroad
'ne price or exchange rises
ne people engaged in the hankiae
o1a,a.iess may be divided into three classes
IL. the officers OF the regular banks
fsntsg dtg0sss. L., or issue. including the national
SOME of which have foreign connections
taroush whom they market a large
s.,,rs,i snr9uAs or exchange In payment for Sc
rsps sxcsa sSsa aoroad and to whom they
s.slrilics sold here. third. agencies or
branches or foreign houses, who are. per-
.sA.es' aiso dealers 10 securities. but whose
Iiin business Is buying and selling ex-
e.aahge on Europe for the profit which
aan De made in the ooerasion itself
ne nrst class are especially interested
ana in keeping up the value Of securities.
Geeause u there is a fall In the securities
aeii ny them as collateral they are COM
psnea 'hia 70 call In their outstanding loans.
isaihg their profts. preventing them from
aiscountinE commercial paper restricts
mercantile and industrial enterprises. and
IN the end creates failure In business and
seherai financial and commercial distress
fhe second class are interested directly
~ keeping UP the values OF securities in
rs country which they have largely sold
1nToat. aud their interests are TO avoid
gold exports aaf the ~ubitc apprehension
arising from a reduction OF the gold re-
serve The third class buy or sell ex-
N a.psat ate-ff fs1N
profit offers. II there ore few commercial
ciiis 10 be had in the market. and the de-
nand by remitters Is great. exchange
rates rise. ana IL dealers navlng credit
abroad IND that taey can sell their bills
az higher price than The probable cost
OF withdrawing the gold from the trcas-
uFy and shipping II abroad TO meet sheir
bills at maturity. they do SO. thus making
nroiit on the transaction.
The leading members Of the third class
N New York can be numbered on the
hrgers OF both hands. and In fact. three
or four DO almost oil the Withdrawing Of
vqti Tor export purposes. as Will be seen
ov an examination OF the lsst OF parties
exporting gold 10 Europe published in the
9aiiy press during its confiuuarce. Ia n
shipment usually represents I'm the aggre-
gate large number single tsansac-
tt0ns. One concern may sell 81 aaf*sl OF
exchange In one day. hut II may be repre-
sentei by $50 TO 90 or more bills. run
ring from flno sterling upward. and they
ray their bills abroad by shipping gold for
that purpose. which they draw out OF the
treasury in one sum and send In one ship
weuf
1T will thus be seen n great maiorlty of
bankers are pccuniarily Interested in keep
ing TIA reserve up - It's full amount, and
for this reason they Haye been willing n
the mast and are ~'ih willing. 10 make
considerable sacrifices. and in order 20
sreven, shipments IF gold have contrib
utei large ssnorats of money 20 pay the
dealers in foreign exchange the profit
they would have made by such shipments.
"a Q tys Re a.
tion Of the so-ca.iea syndicate which
bought the bonds Of the government ua-
der the contract Of February s. iss5. and
again in the early par, of this summer.
"Aithouea wi.harawnls for export have
been going on for several years. IL Is only
Within TWO years thar ar apprehension
that the gcvernui. nj might oe unable 20
redeem its obligations in gold. nas caused
Withdrawals fo~ any other purpose. and
at 10 time has there heen sag evidence
that Withdrawals Of gold from me treas
ury were made for ne purpose az affect
ing the markets. The fact that the banks
We're able TO furnish all the gold required
fer export up 70 the aasdaie % ne sum
nser 81 Is9e. and lta -. MAS because }aTge
amaants % gold werc being paid "a them
and by them tnte the treasury and 0Gs
again in the course ~ business. aud II
had rot began 20 De displaced BY tha sill
yer issues. the amount a. which had ne,
un 20 that ti-ne reached SlcA volume as
fe form s n important PORTION of the af3t-
nary commercial transactions ia the Ne =
York market.
'.Durtne the past fen weeks and 81 pres
ens ard fer tns iTst time in this admin.
tstrstlnn various factors are ~ com ntna-
ftau whlch have proSgcgd BaN rates a.
exchange, and consequent tnzp9rfa EiSns
% eo.d The principal ones ase the fav-
o.aa3e srat 6afAure. The rsfiasttoU II tns
volWnse % currency oHtstafd TX ard II
aettve ci-culBti -. aa8 shc continued
hirs rates ef interest," fcC caA teams 81
New York thsS tA.teT condition ots sug
rzeFElv a resass % .He preceding sttaatl0n
Tha ios rates for foreign exchange casss
'raportatisns of gold from L~@ndoa and
other fcretEm cities. because AZ gnss pc8
sxcnange On New York is seansy ara
rtles AZ very hlga rates. ans the dealers
an& ara ~ers here Ard taNar associate.
aereSs inc cce9a Gua pE0Gs II the 81 r
Z reace % price a. @ntcS Fosa ear *
oSt&saeS abroad ana II which Il can II
usei.
-Iu axAer words. 'so%e forelsr markets
arc 81 sac came ccn3sss0n IRE Ja.ts~s SAFES
Aas e&ea - * y&Ts0slS tsnaes 3aFsag tat
p&st avs ye2rs Il = trHe s9a3 1&s beer
Imported UTan ors o. sSo occasions .age3y
ssh@a purchases - goverrzusnf han3s
were oalnS ns5s. 6Gt Tar tSss fsTsrsasss1 n
wSs pas3. aai .t xas purchased aa8 SO >
peS Ike coz1SE.. % Wae41 a.a&o@E Te@ AID
- the rates o exchange sastrs here. AnA
92s a. 1A,serna&- eENSsse2i1lE- SaFtns 1Hr
years s1ccee3.ax the Fe~syn psssn % spec
psya.sats. AMI a2z4 tse cssErs sses
ylues.fsa Disturbed ar inons ars
~ a. ouz sh~re zaS rera-as
fgsc4ener, - xol8 - fa.s c7sntry "a ths
5Ase SunssHsr asa@ aasatzsE7- = asls Ee SeTs
szarkas4Eg oNr &grsetzs suFal nEotaess
abroad aa-R0 IN ne ssTsaE A11 sseastasssal
tAra&ra tar early S9sn@zsr - say 2us
zao.S f3T fmpsT1S 1at .&F 1ezEf 4ssrEsass s.
tsaN exCeGn-s E&1es - tAe t9ssaer as