Los Angeles herald., 1907-11-06
GOLD PILED
IN HEAPS AT
~ Y. DOCKS
MILLIONS or DOLLARS IN COIN
ARRIVES
OCEAN LINER BRINGS MONEY FOR
EASTERN BANKS
LusltanIa Due soon with Another Sup
ply Of Yellow MetaI--condltlons
Are Improving, Say
FlnancIers
nv Aaaocintad Preea.


BY Associated Prees.
NEW YORK, Nov. 5.-The arrival Of the
first treasury ship laden with gold for
the relief of the present stringency was
the feature Of the financial situation to-
day. The Kron Prinzessen Cecelie wos
reported off Fire island at o'clock in the
morning, and soon after 10 o'clock had
docked and was unloading s7,10o,00o Of the
yellow metal, which Will go to strengthen
the New York bank reserves.
The new Cunard liner Lusitania will
follow closely in her wake with s10,000,0 900,
and s14,00o,oOO more will follow during the
remainder of the week and early pez<e
week.
The additional Withdrawals from the
Bank of England today for the United
States and e25,oOO for Canada brings up
the total gold engagement on the present
movement to about $50, 10000
The news that the Bank of France
bought today es,0oo,Ooo in sterling bills on
London was regarded here as an event OF
French financiers were not only able but
willing to help London and thus IN
directly help America by relieving the
strain on the Bank Of England, caused by
the heavy demands for gold.
1t Is hoped that this action of the Bank
of France will deter the Bank of Eng
land from raising it's discount rate to I
per cent at the meeting q the directors On
Thursday and the Imperial Bank of Ger
frpYf roi oin itd ia
cent to 719 per cent.
The inference is drawn that it is likely
to have this effect because that not since
1873 has the Bank of England raised above
6 per cent, and only for twelve days In
each of the years 1890 and 1900 has the
German rate been above per cent since
1870
corteIyou Talks to Morgan
The presence of Secretary Cortelyou In
the city on his way to vote gave an op-
portunity for further conference with Nj.
Morgan ard other leading bankers The
scretary came over from Washington
tsith the president to vote. and on his way
back from his home at Hampstead, L.. l.,
decided to stop off and learn of the finan-
4cial situation. Besides Mr.. Morgan Secre-
tary Cortelyou saw George Perkins and
one or two other bankers, who acquainted
him with the situation. He was told that
w
proving because of the developments in
the last twenty-four, hours. Those bank
ers who saw Secretary Cortelyou today
are convinced that there is no intention
of President Roosevelt calling an extra
session of congress- to pass any remedial
financial legislation. as IL is understood
the administration feels that the situation
should settle down to basis where a
proper judgment can be formed on the
various proposed changes in the present
monetary laws E
1t was further understood that the ad-
p,nistration has not yet definitely SHAPED
the plans of financial Legislation which
it may desire to have considered at the
coming session of congress. :
Measures for strengthening the trust
companies upon which runs have been
going on were under further consideration
today, but thus far it has not been clear
how sufficient assistance could be rem
dered by other institutions and by bankers
without taking over assets which they dc
not consider absolutely "gilt-edged.
Steel Merger Helps
The project for the acquisition Of this
Tennessee Coal and Iron company by the
United States Steel corporation has i'm
proved the situation somewhat by making
loans ON the Tennessee company's secur-
ity more acceptable at the banks.
NThe situation is still far from solvent
however, and its difficulties are increased
by the lack of well knit and responsible
organization on the part of the trust conn
panies capable of entering into definite
relations with the clearing house banks
A conference at which the details for TAX
ing over control of the Tennessee Conl
and Iron company by the United States
steel corporation was discussed was held
at Mr. Morgans library today and was
attended by Mr.. Morgan, George w. Per-
kins, Secretary sTrimble of the United
states Steel corporation. Vice Presiden,
Davidson of the First National bank, and
Grant B. Schley, one Of the members ot
the pool which z ia control of tie Ten.
nessee Coal az iron companys 81, elk. NC
statement was made following the con
terence.
The taking of vote of the stock oI
the Tennessee company held by the Trust
Company of America as collateral for a
large loan removes menace to the Trust
Company Of Americas affairs and is re.
Rarded by bankers generally as safe
9uard against further financial troubles
The directors of the Trust Company oi
America were in session for a time today
discussing plans for the more immediate
future, but no formal announcement was
made.
Say Worst Is Over
Mr.. Perkins said after one of series
Of conferences held today at the library
Of J. p. Morgan: Things are shaping
themselves very satisfactorily locally, and
we spent most of the day comparing
notes on the situation throughout the
country. This was done not because WI
felt any apprehension of difficulty any.
where else but to learn of the general
situation"
The treasury has much reduced ths
cash balance which was nominaliy avail,
able for deposit in the banks but still
actually holds about 600 in various
forms of currency against outstanding
checks. disbursing officers balances ane
other obligations which never fall below
s1OO. 900 900 in the outstanding. How far
Secretary Cortelyou win feel justified In
.(Continued on Page Seven0