Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-05
FLOOD Of GOLD
PROMISES TO
CONTINUE
INCREASE IN EXCHANGE
RATE FAILS TO STEM TIDE
New York Trust Companies
Open Up as USUAL Getting
Through the Day With Re-
sources Unimpaired.
IBy Morains Journal special Leased wirel

IBy Moraing journal Special Leased Wire.
New York, Nov. 4.-The buoyancy
OF the stock market today reflected
the ultimate decision of large bank
ers to support the two institutions,
the Lincoln Trust company. which
have been subjected to the most Sc
we're runs during the last two weeks.
The day was 6ne of doubt and con-
flicting rumors, and the fact that 1t
passed without adverse development
situation is probably over At late
hour this morning an agreement was
reached, largely through the influ-
ence of Mr.. Morgan, by which the
trust companies will cooperate in the
future for their mutual protection,
and directors will lend the assistance
OF their personal fortunes to meet i'm
mediate necessities. The assets of the
two threatened companies were care
fully gone over by experts on Satur-
day and Sunday. and both of them
were found to be solvent, with a con-
siderable surplus after paying all
claims and providing for the capital
stock Under the circumstances 1t
was thought advisable for the big
men TO support them cordially If they
would adhere to thoroughly conserva-
tive methods and direction in the flu
ture.
Gold engagements since the begin
ming OF the present movement, now
amount to $4,000, 900, which would
. more than bridge the loss in surplus
reserve last week.
The disturbances which are sweep
ing over the exchange market and
arOusing concern in foreign markets.
were indicated today by the rise of
foreign exchange In New York con-
siderably above the point at which
gold could profitahly be imrertad The
faet tina, IL Is still coming this way
indicates the determination OF New
York bankers TO strengthen their po-
siiion even at a loss. The high rate
for bills was caused by the demand
for exchange to cover the arrivals of
gold.
The cotton bills are not yet fully
available because shipments are low
and the bills themselves are subjected
10 considerable scrutiny before they
are taken. The fact that the New
York market bid sufficient premium
for gold to absorb 10000 from the
ditional amount of f4S8,000 from the
Bank OF England. indicated that the
increase in the discount rate Of the
Bank OF England. made at a special
meeting today before the opening of
the New York market, from five and
a half 10 six per cent. was not suffi-
cient TO check the gold movement.
Hence arose much talk in London that
the rate would be advanced to seven
per cent at the regular meeting of
the board of governors on Thursday.
This will be the highest rate attained
for many years. but with S32, ,00D, eco
in gold already on the way 10 New
York or engaged for shipment even
a higher rate at the Bank Of Engls7
would probably not iniure materis iy
American commercial interests.
Reports from Washington indie te
that the national banking situati ~
throughout the country Is sound and
the efforts of the comptroller OF the
currency to get notes into circulation
are meeting with considerable success.
The calls for bank circulation are so
numerous ttat the mail can hardly be
handled promptly by the clerks In the
office Of the comptroller. In some OF
them the amounts applied for are
small. but they are scattered all over
the country, and IL g. believed viii aid
materially in relieving the local pres
sure The price Of United states
bonds was firmer TODAY than for some
time. showing an increase In several
classes Of half OF one per cent. and
indicating that the banks were In the
market as purchasers From Boston
came the gratifying news that the le-
gal reserve OF the clearing house
banks had lost only Si.551,51l during
the past week. and stood considerably
above the legal requirement Of 20 per
cent The fact that tomorrow, cleo
tion day is a legal holiday in New
York. will afford time for perfecting
further plans for mutual support
which were well under way today
II was stated today that the eleva-
tors. boats and warehouses al Buffalo
have $500, ,000 bushels OF grain and
500 carloads Of merchandise and man
ufactured goods very largely fOr cX-
port. against which drafts for gold
could be drawn the moment Il Is
loaded on vessels that are waiting at
Atlantic ports for cargoes.
The magnitude Of this accumulation
Of American products h Indicated by
the fact that the railroads find thcm-
selves unable TO move it 90 the sea-
board. notwithstanding the enormous
development Of traffic facilities with
in the last few years The New YorR
Central lines nave increased the num-
Der Of locomotives 81 per cent within
the last few years. and the freight
equipment has been Increased 81 per
cent. az an expenditure Of over $40
nno, ,no0. other lines have made large
Increases. but their combined faciu-
ties are subjected TO severe strain ia
getting those accumulated products
from the central west 10 the seaboard.