The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1896-07-23
DEPLETED TREASURY.
Steady Exports of Gold the Cause
Of the Stringenoy,
LEADING BANKERS TOTHBREsCUE.

They Hold a Meeting and Appoint u Com
mIttoc to Formulate "a Plan for the Pro-
t%ection of the Treasury Reserve by Avert
ing Exports of the Precious Metal.
NEw YORK, July 23.-Tho strain upon
the resources and temper of the financial
community for some time, owing to the
steady s%hrinkage of the prices of the Stock
Exchange securities, has recently been in
tensiied by political and other causes. In
consequence, values have steadily melted
away on a panic scale, though without Wis
IDLE excitement o. open disaster. The mar
ket has appeared to be entirely unsup-
ported, and It's only mainstay during the
past few weeks has been spasmodic buy
ing of our securities, at times on q large
scale, for foreign account. The fact that
the commercial balance of trade is in our
favor, and that but for the result of the
prevailing gloomy sentiment the move-
ment Of gold should be toward, instead of
against the United States, aggravates the
situation.
The dominant depressing influence have
been the steady exports Of the metal and
the consequent rapid process of depletion
of the governments gold reserve. On July
II the free gold held amounted to $780,
293,6SS BY July IS the reserve had fallen
TO 500, 703, 1921, and at the close Of business
on Tuesday it stood at $50, $50, $50 These
figures were further reduced yesterday by
Withdrawals of gold amounting to s., 375,-
600, including $1,000, 900 for export today,
bringing the total down to SS7, 4O5, 1850 The
decrease in the eleven days amounted to
nearly sl3,0 OO,O 900. The continued strength
of the foreign exchange market clearly in
dicates q steady outflow of gold and the
transfer of credits from this country to
Europe
President Frederick p. Happen, of the
Gallatin National bank, who is also the
chairman of the clearing house commit
tee of the New York associated banks,
began missionary work a few days ago
among his brother bankers, with a view
to securing pledges to protect the rapidly
dwindling gold reserve by placing at the
disposal of the government % substantial
part of their holdings Of gold in exchange
for legal tender notes, and succeeded in
obtaining offers ~aggregating about S13,-
100000. Conditional offers of about So
100000 have been received from other New
York Boston and Philadelphia banks.
The successive reports of the progress
that was being made helped to rally the
stock market to n partial extent although.
in the opinion Of many financiers, the
remedy was not likely to be of more thar
temporary effect.
Yesterday, however, a complete change
in the financial temper took place when il
became known that j, Pierpont Morgan
had called conference of the great foreign
banking houses with a view to concerted
action to prevent exports of gold withir
the next sixty days. The meeting was at.
tended by representatives of all of the
leading international banking houses
Mr.. Morgan presided.
The conference lasted about an hour
and after adjournment, it wasannnounceC
that an agreement had been outlined ana
a committee appointed to elaborate tn,
details of a plan for the protection Of thu
treasury gold reserve. The committee il
headed by j. Pierpont Morgan. No de
tails Of the proposed plan We're obtainable
but the popular impression in the street i
that a pool for the sale Of sixty day bill
will be formed. Thisis d mere conjecture
however. AT all events the PRACTICAL,
joint action of the New York banks ant
of the gold exporting houses Is regarde,
as of the first importance and is eXpectet
TO cause a decided change for the better il
the situation.