Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1896-07-23
BACKED BYBANKS.
New York Financiers Protect the
Gold Reserve.
MATTERS WERE GETTINGC CRITICAL,

So O Movement yTas Started to Assist the
Treasury and Seems to Have Been a Sue
cess-J. Pierpont Morgan and All the
Big International Financiers Take
Hand-NcarIy 5000, 900 in Gold DepOs-
tied for Greenbacks Yesterday.
New YORK, July 23.-The strain upon
the resources and temper of the financial
community for some time, owing TO the
steady shrinkage of the prices of the stock
exchange securities, has recently been in
tensified by political and other causes. In
consequence values have steadily melted
away on a panic scale, though without
visible excitement or open disaster. The
market has appeared to be entirely unsup-
ported, and its only mainstay during the
past few weeks has been spasmodic buying
of our securities. ut times on a 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.
mcnt of gold should be toward instead Of
against the United states aggravates tho
situation.
Thirteen Millions Gone in Eleven Days.
The dominant pressing influences have
been the steady exports of the metal and
! the consequent rapid depletion of the gov
! crnment's gold reserve. On July IL the
free gold held amounted to. 800, a93, ,6SS
BY July is the reserve had fallen to $780,
| 1850 and Mt the close Of business Tues
| day it stood at $S9,1So, 1s These figures
| We're further reduced yesterday by with
| drawals for gold amounting to s., 81, 900,
| including 5000, ,OJO for export today bring
, ing the total down 10 SS1, ,i05. .lS0. The
decrease in eleven days amounted to near
| " Si3oDO,o00. The continued strength of
the foreign exchange market clearly in
! dicatcs steady outflow of gold and tho
transfer OF credits from this country to
| Europe. The judgment of the best finan-
cial authorities is that the government
| could market further issue of either
four, AZ OF per cent. bonds at par, but
the policy of such action is admitted tn bo
bad, in view Of the probable political ef-
| feet.
| Situation Was Becoming Grave Ono.
| The sharp declines in securities recently
| had created II sentiment of profound dis
! cUuragement in Wall street. and the gray-
ity of the situation was kcenly appreciated
| in high financial and banking circles
President Frederick p. Tappen, of the
! Gallatin National bank, who is the chair
man OF the Clearing House committee OF
the New York Associated banks, began
missionary worl: few days ago among
his brother bankers with n view to sccur
ing pledges to protect the rlDid (lwindlina
treasury gold reserve by placing at tht
disposition Of the government q sub
stantial part of their holdings OF gold in
exchange for legal tender notes, and sue
ceeded in obtaining offers aSgrcgatins
| about Sl3.000.O0G. Conditional offers o
about s,,GOO,0DO have been received from
other New York and Boston and Phila
dclpha banks.
Morgan Calls n Conference.
, The successive reports OF the progres
that was being made helped to rally TIL
! stock market TO a partial extent, although
in the opinion of many financicrs, TIL
remedy was not likely TO be of more thai
temporary effect The street had pre-
viously Witnessed the disappearance o
. enormous sums Of gold, owing to almos
| exactly similar conditions to those nov
> prevailing, but admitted that the interva
before the crop-moving season would fur
nish supplies of exchange sufficient I
| turn the gold current and might
bridged over successfully in the manne
, indicated. Yesterday, however, com
"a pletc change in the financial temper too
place when it became known that J. I
= Morgan had called conference of tn
70 great banking houses with view to cor
certed action TO prevent exports of gol
within the next sixty days.