New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-10-16

have brought him into frequent communication
with the shippers of gold to and from New-i orK
to-day gave out for publication the Following OF
fetal letter addressed Secretary Morton's CHIEF
assistant:
Treasury Department. Office OF the Secretary
Washington d. G., October ~ DOW:
Hon. Charles W. Dabney. jrr Assistant Secre-
MY Dear al Sir referring to your letter and our
attacks upon the bankers of New III tne,t rt
h e0 Win ee sOa raids By
bankers at New-York upon the Treasury, is one
no accurate knowledge of the method by which
noes are presened FOR redempton at he h
number OF persons making such presentations me
term banker seems TO be assumed IN moTt Saen n
gagged in Withdrawing the gold from the Govern
met reserye ana putting AMOS and as to-
psh certain alleged improper OBJECT Re- ne fancfl
statements chat it seems worth whiie 10 can AT
tention to them ..,,, J.. NC
without the Interference of legislation. ew-fork
has come to be the settling place Of almost az
contracts for the sale of our products ABROAD anu
in that market the bills of exchange which repre-.
sent products exported are Offered ror san morev
abroad TO pay obligations or to buy merchandise
in the same market ana IN oraer 10 pay 70 re
nit to their creditors abroad Large amounts t, .,
coe silk rice tea sugar 70 ana he pTrnsa sed With
foreign credits and paid for In New-York with
foreign exchange The natural result is that when
we are selling more goods abroad and there are
NOR, bills Of exchange in the market than there
price OF exchange falls. on the other hand while
not selling as much abroad ana ar o exe ,
abroad the price Of exchange rises ...,.os. -
"'rhc people engaged in the banking business s-I IN
New-York may be divided into three classes flrst'
tho officers OF the regular banks Of deposit or issue
including the National banks: second the dealers
IN cfarn through whom they market large
OF m nS OF xshnnge in
pay nent for securities sold abroad and 10
ment for securities sold here; third ageneiie es
or branches OF foreign houses who are perhaps aso
dealers In securities but whose man Dus, IN. .h
p-5it which can be made in the operation tseI; IL
general prosperity OF the country ana IN keepf w
the value Of securities because If there Is ran IN
securities held by them as corsr ,neS witch re-
duces their lines OF credit diminishes their profits
prevents them from discPuh,s nn,srnrises and
in the end creates failures IL business ana rH 1900
class are directly Interested In keeping up the yaIue
OF securities In this country when th"y nave ldkS,
.xporfs and the public apprehension arising from
reduction OF the gold reserve the miro ciass o.I
offers II there are few commercial bills 10 De had
in the market and the demand by remitters, y
$50, obroad find that they can sell their bills at a
higher price than the probable cost TO ten OF W Nh
droving gold from the Treasury and shipping IL
abroad 20 meet their bills at maturity they 90 So
hus making pr9ht on b1 h tran tranSI G
l'au;lh ri.rnd an tho fingers OF both hands and
in fact three or four do almost an oil sn' u he
soan bv an examination Of the list OF parties export
ing gold Europe published In the daily press our
eEach shipment made usually represents in the
aggregate large number ot sne,e in one
dav hut il NAV be represented by l@l TO 20 or
feren bills running from &C. TpSa rod a for that
purpose which they draw out of the IrcaSuIry III
one sum and send I'm one shipment IL WI! mus
hat
p.cunarily Interested In keeping me gou r'HI
np to it's fun amount. and for TINS reason insg
have been willing IN the past and are sun WILING
TO make consderabl. sacrifices. ana IN otdfr 10
prevent shipments Of gold have contrloutci Iarse
amonnis OF money 70 pay the dealers in foreign
"xrhange the profit they would have made ny such
r,,inrs 81 the so-called syndicate which bought
,ho bonds OF the Government under the contract
of February {. 1895. and again IN the early part oi
onilI,Sough Withdrawals FOR export have been going
On o 9n Spprehes5n that the Government, might be
unable to redeem IT, Obligations IN COG mas caussd
,i,hdr,wa's for any o,her purpose, and a. no time
%,s tbere been any evidence that Withdrawals OF
cod from the Treasury were made for the purpose
The ac fa, the bank: were able 70 qrns Isl al!
Amounts Of god were being paid to them and by
hem into the Treasury, and pad on, again N i ,ne
course OF business, and 1t had not begun TO De as
n,ared by the silver issues. the amount OF wnicn
had NOT up to ma time noro6 S he S ordinary COM
merciai transactions In the New-York market.
"During the last few weeks ana az present, amu
factors are IN combination which have produced
low rates of foreign e3cnange ana consequen. I'M I'M
f"vorabe trade balance the ton in the volume
Of currency outstanding and in active circulation;
loans n Ncw-York this latter col don being partly
a result of the preceding situation The low rates
FOR foreign exchange cause mporta ions OF gold
from London and other foreign cities. because M
these points exchange on New-i ork is scanty ana
rules at very high rates. and the dealers and draw,
rrs here and their associates across the ocean find
a pront in the difference Of price at which gold can
be obtained abroad and AZ which II can be used here
in ether words these foreign markets are In the
same condition that the United States has been In
true that gold has been imported upon one or two
occasions lately VIII III purchases OF Government
bonds were being made, but for this premium was
paid and II was purchased and shipped like cotton or
wheat. without regard to the rates OF exchange
ruling here and abnormal proceeding.
"pnrlng the years succeeding the resumption OF
specie payments in 1874 and until the currency ques
tion disturbed our monetary relations. there was
a regular movement Of gold 10 this country In
the late summer and autumn while We were mar
keting our agricultural products abroad \ return
dow from this country abroad began in the spring
and continued through the early summer TO pay
exchange rates in the former and high rates in the
latter period cause these movements. and the
at nresent The excess Of merchandise exports ever
Imports for eight months as up to september OF rhis
ssnonding time last year the excess OF merchandise
imports over exports was 6.Ss1 2ss In other words
market we this year receiving from them
sas soT s45 a balance in our favor Of Nt2 .2l3
Wnraover the tide OF securities flowing back tC
America from foreign holders since 1880 has largely
suhsided at least for the time being. and there
is not much of drain from mere on that ac
count x,.-.. ~, T., 49, 49,, Vs.,
-, FOR call loans In the last few weeks has at
, ma foreign capital from centres where thu
,'arest rates have been much lower. This %
I'M. ritv was also marked during August of 1898. a
~ height OF the currency panic when the rulint
It's ,a Of interest were abnormally high and larg'
Iaonr,s of money were loaned from abroad ant
ha gold coin sent to this country The contraction
IN the active currency Is caused by the large in
-. u. in the balance OF the United States Treas
nv arising from the bond issues and from thu
boarding OF gold and OF notes redeemable in golt
Which has been going on among the people To-
some time In view OF possible failure OF the United
States 10 continue their redemption In gold
.'The critics who talk freely about importing
ofty millions of gold for effect from the other sid