The herald., 1896-07-23
Steady Shrinkage in Prices of
Exchange Securities
TREASURY GOLD RESERVE
To Be Protected by Foreign Banking
Houses
Givs Assent-dold Deposited at the
SUBJ Treasury
Associated Press Special Wire.

! VI D. hOl san c W. u COIlSiQSi PieihS
! for the protection of the gold reserve.
1t is understood a plan was arranged to
case the exchange market until the crop
| movement brings balance in our favor.
! A representative of the Associated
Press was informed that committee
| of seven was appointed to perfect the
agreement outlined. All present sig
nifed their assent to the plan for the
protection of the treasury gold reserve.
Deposits of gold were made at the sub
treasury by various banks amounting
| to $3.50, 900 up to 2:45 p. m.
The committee appointed to consider
the exchange situation consists of j.
P. Morgan, chairman; +. II. NJ. Dyer
of Lazard Freres, John c. Brown of
Brown Bros, ]. H. Schoff of Kuhn, Loeb
& Co., A. Lutgen of August Belmont &
Co., and H. E. Ickleheimer of Heidel-
bach Ickleheimer & Co.
The total deposits of gold at the sub
treasury today by the New York banks
in exchange for legal tenders were ST.
100000.
MELTING VALUES
NEW YORK, July 22.-The strain upon
the resources and temper of the tinan-
cial community for some time, owing to
the steady shrinkage of the prices of ex-
change securities, has recently been in
tensified by political and other causes
In consequence. values have steadily
melted away on panic scale. though
without visible excitement or open dis
aster. The market has appeared to be
entirely unsupported and its only main
stay during the past few weeks has been
spasmodic buying of our securities at
times on a large scale for foreign ac-
count The fact that the commercial
balance of trade is in our lavor and that
but for the result of the prevailing
gloomy sentiment the movement of gold
should be toward, instead of against
the United States, aggravates the sit
uation. The dominant depressing in
fluences have been the steady export
of the metal and the consequent rapid
process of depletion of the the govern
ment reserve. On July II the free gold
held amounted to $10O $685. ,6sS. BY July
IS the reserve had fallen to s96 703, ,621,
and at the close of business yesterday
it stood at $50, 9,7S0,1S0. These figures
We're further reduced today by with
drawals amounting to S3,37o,000, includ-
ing 81, 900, 900 for export tomorrow, bring
ing the total down to $SI, ,405,1S0. The
decrease in the eleven days amounted
to nearly s13,OOO,OO
The continued strength of the foreign
exchange market clearly indicated a
steady outflow of gold and the 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, Az or
8 per cent bonds at par, but the policy
of such action is admitted to be bad, in
view of the probable political effects.
The sharp declines in securities recently
had created a sentiment of profound
discouragement in Wall street and the
gravity of the situation was keenly ap-
precated in high financial and banking
circles.
President Fred Tappan of the Gallatin
national bank, who is the chairman of
the clearing house committee of the
New York associated banks, began mis-
sionary work few days ago among his
fellow bankers with a view of securing
pledges to protect the rapidly dwindling
treasury gold reserve by placing at the
disposal of the government substan-
tial part of their holdings in gold in eX-
change for legal tender notes, and sue
| ceeded in obtaining offers aggregating
! about $13, 900. Conditional offers of
| about $4,000 900 have been received from
| other New York and Boston and Phila-
| delphia banks. The successful progress
i l.. H.
| stock market to a partial extent, al
| though in the opinion of many finan-
| ciers, the remedy was not likely to be of
| more than temporary effect. The street
| had previously witnessed the disap-
! pearnace of enormous sums of the gold,
| owing to almost exactly similar condi-
tions to those now prevailing. Today
| however. a complete change in the
| financial temper took place when it be-
came known that ]. p. Morgan and 9TH
| ers had called conference of the great
| banking houses, with view to con-
certed action to prevent exports of gold
within the next sixty days. The meeting
was attended by s'esentatives of all
| the leading international banking
| houses. There were also present John
| A. Mccall of the New York Life Insur-
ance company, Mr.. w. H. Crossman of
Crossman & Brothers, Pliny Fisk of
Harvey Fisk & Sons. and other finan-
| ciers. Mr.. ]. P. Morgan presided.
| The conference lasted over an hour
| and after adjournment it was announced
that an agreement had been made and
a committee appointed to elaborate the
details of a plan for the protection oil
| the treasury gold reserve. The commit
| tee consists of j. p. Morgan, chairman;
| John Cressby Brown of Brown Brothers
| & Co.; A. Luttzsen of August Belmont
& Co.; Jacob H. Schiffe of Kuhn, Loci
& Co.; w. Salmon of Spreyer & Co.; ii
| Ickleheimer of Heidelbach, Icklehe1mel
| 6, Co., and e. Mayer Of Lazard Freres
No details of the proposed plans wert
obtainable, but the popular impression
in the street is that pool for the sale o
sixty-day bills will be formed. This IL
mere conjecture, however. At all events
the practically joint action of the New
York banks and Of the gold exporting
houses is regarded of the first import
ance, and is expected to cause decidet
change in the situation. By Septembe
/ grain and cotton bills will be In tnf
market to a sufficient extent to exert aI
important favorable influence on TN
exchange market. In the last hour G
bucinees n hacame known that tn