The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-07-23
BANKS TURN IN GOLD.
They Send s7.75O,030 to the
United States Treasury.
THIS IS ONLY A eEoINN'n c
Ffranciers Feel That . Bond Issue
Would BE Unwise ~ Present,
and Hope TO Avert Il.

New York. July --I1e STRAIN upea
the resources and temper OF TIE fsE2n-
cal community for some time. owing 70
the steady sisrsnkage OF she prices OF ex-
change securities. has recently been in
tensifiei by political and other causes
In consequence. values have steadily melt
Cd away on a panic scale. though Win
ont visible excitement or open disaster.
The market has appeared 10 be entirely
unsupported. and is only nainstay dur
inx the past few weeks has been suasmoG-
ie buying OF cur securities AZ times on a
large scale for ferelgn account. The fact
that the commercial balance OF trade IS
IN or faver. and that but for the result
OF the prevailing gloomy sentiment tne
movement OF geld should be toward in
sgead OF against me United States. AGRA
Yates the situation. The dominant infu-
eaees have been the steady export OF the
nofai ard the consequent rarid process
OF depletion OF the government reserve.
On July IL the free god held amounted
10 $3.50. ~, 50. BY July Is the reserve had
fallen 10 81. 7d0. 81. and at the close OK
business yesterday II stood AZ SIS. 80, fsa.
These figures were further reduced today
by Withdrawals amounting 10 Sssy's.on. in
Guiding tod. 900 for export tomorrow,
bringing the total down TO 81. 40. 1so. The
decrease Il the eleven days amounted 10
nearly 100000. The continued strength
OF The foreign exchange market clearly
indicates q steady outflow OF gold and tna
transfer OF credits from this country to
Europe.
The judgment of the best financial au-
thorities Is that the government could
market further issue OF either 4. IA or
per cent bonds at par, bur the policy OF
such action Is admitted 10 be bad. il view
OF the probable political effects.
The sharp declines in securities recently
had created a sentiment Of profound dis
agement in Wall street. and the gras-
fty OF the situation was keenly appreciate
ed in high financial and banking circles.
President Fred Tappan. OF the Gallatin
National bank. who is the chairman OF
the clearing house committee for the New
York associated banks. began missionary
work a few days ago among his brother
bankers with a view OF securing pledges
TO protect the rapidly dwindisng treasury
gold reserve by placing at the disposal OF
the government substantial part of their
holdings In gold In exchange for legal ten
der notes. and succeeded in obtaining Of
fers aggregating about $1,000. 600. Condi-
tional Offers OF about s. 009.o00 have been
received from other New York and Bos-
ton and Philadelphia banks. The success
fai progress that was being made helped
to rally the stock market to q partial
extent. although In the opinion of many
hnanciers the remedy was not likely 70 be
OF more than temporary affect. The
street had previously witnessed the dis
appearance OF enormous sums OF gold un-
der almost exactly similar circumstances
der almost exactly similar conditions to
those now prevailing.
Today, however. 4 complete change ia
the financial temperature took place
when Ii became known that ]. F. Morgan
and others had called conference OF
the great banking houses with a view 10
concerted action TO prevent exports OF gold
within the next sixty days. The meet
ing was attended by representatives of
all the leading international banking
houses There were also present: John
A. Mccall. OF the New York Life In
surance Company: Mr.. ". II. Crossman
OF Crossman & Bros; Pliny Fisk, OF
Harvey Fisk g. Sons, and other fnan-
ciers. J. +. Morgan presided. The
conference lasted over an hour, and after
adjournment II was announced that an
agreement had been made ans a commit
tee appointed TO elaborate the details OF
a plan for the protection of the treasury
gold reserve. The committee consists OF
]. T.. Morgan. chairman: John Grossly
Brown. of Brown Bros Co: A. Luttzen,
OF August Belmont Is Co. Jacob Fl.
Schiff. of Kuhn. Loeb & Co.; w. Salmon.
OF Spreyer & Co; II. Ickelheimer, of
HeideIbaeh. Ickelheimer & Co, and E.
Mayer, or IaZard ETeres. No details of
the proposed plan were obtainable, but
the popular impression in the street Is
that pool for the sale of sixty-day bills
will be formed. This is mere conjecture,
however.
Al all GENTS the practically joint action
OF the New York banks and OF the gold
exporting houses Is regarded as OF the
first Importance, and II is expected to
cause a decided change in the situation.
BY September i grain and cotton mills
VIII be in the market TO a sufficient ex-
tent TO exert an important favorable IN
fuence on the exchange market In the
last hour of business II became known
that the banks In pursuance OF their
agreement were turning substantial
amounts OF gold into the subj treasury.
The effect or the news and Of the agree
ment reached between the gold shipment
houses was 10 iuapart decided huoyancy
10 the stock market. London appeared 10
have had an inkling OF what was forth
coming and IL has recently been ana was
today fairly large buyer OF our securi-
ties.
The exact amount OF gold turned into
the sub-treasury by the banks IN ex-
change for legal tender notes today was
s7T5aDe0
Won Hoffman & CO. Will ship $50 no IN
gold tomorrow TO Germany: Hesldelbach,
Ichelheinier e. Co. s.o.0d.8: Kuefn. Loeb &
Co. Loo: Laxard FrereS & Co. 500. 0oa:
total. s. 5000.