New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-02
Continued from page

possibilities of the outflow of gold
continuing to the point that it would
be at a premium, but on the other
hand there was not a banker who, at
one time or another during the day,
did not consider and discuss that
phase of the situation.
SO long as Europe wants gold, has
the credit here and is willing TO pay
more for the yellow metal than the
United States is to keep it here, it will
flow outward There is outstanding
more than 1000, 100000 in gold notes
or legal tenders, and there is nothing
to prevent the holders from demanding
golG and doing as they please with it.
To this extent the statements ema-
mating from the Treasury Department
in Washington that a billion and 4
third of gold are in its vaults are mis-
leading for the god is nothing more
nor less in the last analysist than mer-
chandise against which warehouse re-
ceipts in the form of gold notes 1r
legal tenders have been issued.
As long as there is gold in the Treas
urv the Treasurer of the United States
can no more refuse to deliver metal on
demand of a gold note holder than
could the keeper of n warehouse IN
Brooklyn refuse to deliver bales o.
wool on surrender of the warehouse re-
ceipt properly Endorsed.
About S10,000,000 in gold went ont
on the Oceanic. of the White Star Line,
when she sailed yesterday. Goldman,
Sachs & Co. engaged 100000 for Eu-
rome. and Canada, which has begun to
hoard the yellow metal, called for 81
100000. Against this S30,000,000 was
received at the Sub-Treasury from
Philadelphia, and larger shipments are
now on the way East from Denver and
other distant points.
The matter of gold shipments was
the subject of discussion OF foreign
exchange experts called early in the
day. At this meeting the questions OF
arranging an arbitrary rate for eX-
change and an arrangement with the
bankers of London to leI / SlOO,OOO,OOO
i'm metal were taken up. The possibility
of European banks allowing money to
nile ND here in trust-in effect, holding
mart Of their reserves here-was talked
over.
The Clearing House Association also
met. and il is understood It's committee
will meet again to-day to consider the
general situation and 20 make tenta-
five plans for the issuance of certlfl-
Gates later, If this is found necessary
and can be done within the law. Law
yers said yesterday that the issuance
of such certificates was probably as
/ legal now as il ever had been, and that
until the Federal Reserve banks arc IN
/ operation their issuance would PROB
ably not be objected to.
The Offices of the New York Stock
Exchange were open as usual; IN Iact'
/ later than usual on Saturday. The
/ same was true of Stock Exchange
houses. but no business was being
transacted. The exchange officers were
| looking out for routine matters ana
awaiting any possible emergency ana
the CLERKS in the houses and others
cleaning up loose ends. Some tradlng
in stocks at private sale was reported
but the exchange discouraged TINS Dy
calling the attention Of the members
70 that rule prohibiting such business
and advising that the members De eau
tious in their transactions.
Such sales as were reported we're, IL
was interesting to note, at prices above
the close Thursday. Steel was SAID 10
have changed hands in these transac-
lions at SO, Reading at 142 and Union
racine at llG, as ''
140 and 1884,, respectively, thursday.
In most cases where stock was OIL
fered il was refused outright. In the
cases where customers of house were
in need of money they were usually ad-
vised to borrow sufficient for their I'm .
mediate needs and avoid sacrlhclng
their property. There was nothing I'M
proper in lending money under the
circumstances, and houses well suppileu
with cash and in no immediate prospect
of having to use il took care OF Such
clients. where purchase was not heces-
sary.
In this connection the Association OF
Stock Exchange Partners. made up OF
the Office members Of exchange houses,
issued the following TO its members;
The wise action OF the board OF
Governors in closing the New YORK
Stock Exchange at this time pro-
tects American interests and re-
stricts the withdrawal Of gold by
Europe.
We therefore strongly urge our
members and ali those who deal IN
securities TO follow the purpose OF
the governors Of the exchange IN
limiting stock operations at tne
of alarm. The eXigencies oil tne
situation necessarily VIII require
transactions in adjusting accounts
In closing the exchange, obvious
" it was the intent that trading
should not be transferred else
where, ard il is therefore lncum-
bent upon our firms, in loyalty 10
the welfare of our clients, as wei
as the exchange, TO carry out this
intention in good faith, restricting
transactions in both listed and un-
listed securities as much as posi-
BILE and confning operations, as
must occur, for direct clients TO
private transactions. so that the
dealings and prices made under
stress shall not tend to establish
market.
As was to be expected, the ghouls
who flock wherever corpses may De e.