Evening journal., 1896-07-21
BANKS TOClvE UP GOLD
They Offer $4,000, GOO to Keep
Up the Treasury Reserve.
PLAN TO AID THE GOVERNMENT.

Recent Heavy Withdrawals of Gold In
duce the OGer on the Part of New York
Bankers Clearing House wilI Sup
ply tho Coin.
New YoBK, July 2f. Tho World says:
The bankers got together in a hurry when
they saw tho ticker reeling off lower and
lower prices for stocks and together brood
ed over the effect on their coilaterals Of
the toboggan slide il prices should keep
up for dozen points further.
There was not much formality about
the action OF tho bank presidents Presi
dent Tappen OF tho Gallatin bank seemed
TO be the leader, and by personal talks OF
by trusted messengers he got the views of
dozen other bank presidents on the out-
look
1t was evident that tho point Of attack
of those who were breaking prices or those
who were frightened for they were acting
in concert, was the gold reserve-that heap
of less than S10O, 900, 600 Of yellow coin
and metal which is the redemption fund
of over IA times that sum in other cur
rencies.
The European bankers, through their
New York agencies, could start move
ment which would wipe out that redomp-
ton fund IN week. or as fast as the
clerks could pass 1t out. This the New
York bankers knew.
Their last weekly statements tells that
they have s62 33S, 400 In specie locked up
In their vaults. Tho bulk Of it Is gold, and
this they make no use OF except TO count
it and show 1t to the bank examiner whun
he comes around. Il is performing one
function OF money In acting ns reserve
and in making the depositors In the banks
feel SECURE. In case OF any trouble, how
ever, the depositors would, anyhow, have
silver certificates passed out to them. and
the gold might go, as during war times,
to the coin dealing houses for sale at a
premium
In the talks among the bankers the
whole situation was oanyassed. IL was
pointed out that within few days, or
weeks at the furthest, the bills against cot
ton shipped OF contracted for would come
into the exchange market and tend to
meet the demand for gold to balance the
/ spendings of the tourists, the sales OF
American securities and all the osher
items that call for the sending of gold
abroad.
Possibility OF Another nond Issue.
The possibility Of another bond issue
was mentioned, but the general opinion
was there was enough gold In hand or IN
sight TO make it unnecessary.
Another practical question to be dis
cussed by the bankers is the way in
which tho greenbacks and coin treasury
notes on which gold is drawn are eettins
scarce in New York banking circles. b,
1 putting in quantity of gold and taking
| greenbaoks the bank heads ,would do
double benefit to themselves. They wouli
! get the desired grecnbacks and stiffen th,
panioky stock market.
Although DO formal papers were drawn
st was generally agreed by the heads o
the ten banks In the scheme they woul'
furnish coin up to s.. Ooo 00o ia the high
est cases, and In the aggregate about sl5,
1 uO0,O Subtreasurer Jordan, by thi
plan. would he consulted, and upon hi
/ intiination the coin was needed ~ woul
be furnished, probably from tho stor
which Manager Sheror has in the storag
vaults under the floors of the clearing
house.
When it will be called for, II at all, wa
left open, and the whole matter was il
the most indefinite shape
The efloot of this compact was at ono
felt in tho stock Exchange and price
stiffcned All along the line in the last few
moments 0nfhe trading.
A pro rata contribution it is pointed
out, of 90 per cent Of the gold holdings o
the several banks would easily put SIS,
00O 600 into the hands of the governmen
and put the banks in possession Of a largo
quota of paper. usabe as cash In their sey
eral holdings The largo specie holder
among the city banks at presont are th
Bank OF New York, 81. 42O 600; Manhat
( TIM bank. q, ,312 600; Merchants Nation
al, 81, 452, 5O0 Mechanics National, 81.
O22, 600; Bank Of America. Si,9S5, 800
q National City, 81, 90a, 400; Chonfcal Ma
tional, s3,279, 600; National Republic
81, 92S, 400; Hanover National, 49, 99l, 700
Corn Exchange, 81, ,4l6, 500; Importer
and Traders, ss, 7sl 600. Park So, fs3,
500; Fourth Nationai 81, eis. 900; Firs
National. Si,Oft, 400; Third National. 81.
SOD 300 Chase National, 81 922, 500: Fift