The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1896-07-24
The BANKS TAXING ACTION.

The New York correspondent ofthe
Baltimore american says:
The strain upon the resources and
temper of the financial community for
some time, owing to the steady shrink
age of the prices OF the Stock Exchange
securities, has recently been intensified
by political and other causes. In con-
sequence, values have steadily melted
away on Il panic scale. though without
visible excitement OF open disaster.
The market has appeared to be entire
" unsupported, and its only mainstay
during the past few weeks has been
spasmodic buying Of our securities at
times on large scale for torei On ac-
count The fact that the commercial
balance of trade is in our favor. and
that but for the result ofthe prevailing
gloomy sentiment. the movement Of
gold should he toward. instead of
against. the United States, aggravates
the situation. The dominant depress-
ing influences have been the steady ex-
ports of the metal. and the consequent
rapid process of depletion of the gov
ernment's gold reserve. On July II
the free gold held amounted to 500,
293.6Ss. BY July Is the reserve had
fallen to 500. 1O3 ,62l. and at the close
of business Tuesday it stood ut SS9,-
Is0.lS0. These figures We're further
reduced the next day by Withdrawals
of gold amounting to $3.50 900. i'll
Guiding s2,OO0,o 900 for export the fol-
lowing day, bringing the total down to
SSI ,405 $50. The decrease in the
eleven days amounted to nearly 3d.
100000. The continued strength of the
foreig On exchange market clearly indi-
Gated steady outflow of gold, and the
Europe.
The Judgment Of the best financial
authorities is that the government
could market further issue of either
four and Il half or five per cent bonds
at par: but the policy of such action
is admitted to be bad, in view Of the
probable political effect The sharp
declines in securities recently had
created Il sentiment of profound dis
enlargement III Wall street. and the
gravity Of the situation was keenly ap-
preciated in high financial and bank
ing circles. President Frederick =.
Happen. of the Gallatin National Bank.
who is the chairman of the Clearing
house Committee of the New York
Associated Banks. began missionary
work few days ago among his brother
bankers, with Il view to securing
pledges to protect the rapid dwindling
Treasury gold reserve. by placing at
the disposition Of the government a
substantial part of their holdings of
gold, in exchange for legal tender notes,
and succeeded in obtaining offers aggrc-
eating about Sl3,O0O,oOO. Condition.
al offers Of about $4,000. 900 have been
received from other New York and
Boston and Philadelphia banks. The
successive reports Of the progress that
was being made helped to rally the
stock market to Il partial extent. al
though in the opinion Of many tnan-
ciers the remedy was not likely to be
of more than temporary effect. The
street had previous V witnessed the
disappearance Of enormous sums of
gold. owing to almost exactly similar
conditions to those now prevailing, but
admitted that the interval before the
crop-moving season would furnish sup
plies Of exchange sufficient to turn the
gold current. might be bridged over sue
cessfully in the manner indicated.
Wednesday. however. Il complete
change in the financial temper took
place. when it became known that j.
p. Morgan had called conference of
the great foreign banking houses. with
Il view to concerted action to prevent
exports Of gold within the next sixty
days.