The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-07-23


Lazard Freres, E. Mayer.
New York, July 23-The New York
bankers met yesterday afternoon and
took steps to preserve the treasury gold
reserve.
The conference lasted over an hour
and after the adjournment it was an
nounced that an agreement had been
made and a committee appointed to
elaborate the details Of a plan for the
protection of the treasury gold reserve.
The committee consisted of J. P. Nor
gan, chairman; John Crosby Brown of
Brown Bros. Co.; A. Lutszen of August
Belmont Co.; jacob H. Schiff of Kuhn,
Loeb Co.; W. Solomon of Spreyer &,
Co.; H. IckeIheimer of Heidelbach, Ic-
Eelheiner & Co, and E. Mayer of La
zard Freres.
The strain upon the resources and
temper of the financial community for
some time, owing to the steady shrink
age of the prices of exchange securities
has recently been intensified by politi-
cal and other causes.
In consequence values have steadily
melted away on a panic scale, though
without verbal 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
| account. The fact that the commercial
balance of trade is in our favor and
| that but for the result of the prevail
ing gloomy sentiment the movement of
gold should be toward instead of
| against the United States, aggravates
| the situation.
The dominant depressing influences
have been the steady export of the
metal and the consequent rapid process
| of depletion of the government reserve.
! On July II the free gold amounted
to S100. .293, ,698. By July Is the reserve
| had fallen to $96, 7O3. .621 and at the close
! of business Tuesday it stood at $89, 7S0, =
| $50. These figures were further reduc-
| ed yesterday by Withdrawals of gold
| amounting to S3,375, 900, including 81,
| 0O0, 600 for export bringing the total
| down to SS7, ,4O5. 1870. The decrease in the
| eleven days amounted to nearly $13,-
/ 600 ,00O The continued strength of the
foreign exchange market clearly indi-
| Gated a steady outflow of gold and the
| transfer of credits from this country to
| Europe The judgment of the best fin
| ancial authorities is that the govern
ment could market a further issue of
| either f. AZ or 3 per cent bonds at par,
| but the policy of such action is admit
! ted to be bad in view of the probable
| political effect.
| The sharp declines in securities re-
| Gently had created sentiment of pro-
| found diScOura cement in Wall street
! and the gravity of the situation was
| keenly appreciated in high financial
/ and banking circles.
! President Frederick P. Tappen, OF
| the Gallatin National bank, who is the
| chairman of the clearing house com
| mittee of the New York associated
| banks, began missionary work a few
| days ago among his brother bankers
| with a view to securing pledges to pro-
| tect the rapidly dwindling treasury
| gold reserve by placing at the disposal
| of the government substantial part
| of their holdings of gold in exchange
| for legal tender notes and succeeded in
| obtaining offers aggregating about $3,-
/ 900, 600 Conditional offers of about
! s., 900. 900 have been received from other
! New York. Boston and Philadelphia
| banks The successful progress that
| was being made helped to rally the
/ stock market to a partial extent al
| though in the opinion of many fnan-
cierS the remedy was not likely to be
! of more than temporary effect. The
| Street had previously witnessed the
| disappearance of enormous sums OF
gold owing to almost exactly Si-uilaI
| conditions, to those now prevailing. a
| complete change in the financial tenn
| per took place when it became known
| Yesterday that J. P Morgan had called
| a conference of the great banking
| houses with a view to concerted actor
| to prevent exports of gold within the
/ next so days. The matter was attend
/ ed by representatives of all the leading
/ international banking houses There
| were also present John Mccall of the
| New York Life Insurance company; W
| H. Crossman, of Crossman & Bro; Mr.
| Pliny Fisk of Harvey Fisk & Sons an6
| other financiers. Mr.. J. P. Morgan
| presided. The conference lasted ovel
/ an hour as stated in the introduction
| to this dispatch. and after the adjourn
| nnent it was announced that an agree
| ment had been made and a committee
| appointed to elaborate the details of {
| plan for the protection of the treasury
| gold reserve
No details of the proposed plan were