The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
WAR TO STOP Big
OUTFLOW OF GOLD
May Solve Grave Problem Of
Bankers by Making At
lantic Unsafe.
CITY BEGGED FOR MONEY
Prcndergast Refuses to Antici-
pate Payment to Foreign
Warrant Holders.

Only 5000 Of American gold was
engaged at the Sub-Treasury yesterday
for shipment TO Europe. but agents of
Canadian banks came forward and en-
gagged s3.65O.OO0. which will go out on
Monday. Just what this week will show
in the way Of gold exports no banker
was willing to guess. That something
will be done to stop the drain Is the
general belief among those best informed.
In some quarters there was talk OF an
agreement among international bankers
to stop shipment of gold abroad. The
suggestion was made by A. Barton Hep
burn of the Chase National Bank and
met with favor. although II WIS said
that this could be accomplished only with
the cooperation OF the London banks So
far as is known at the moment there
is no way for the Government 70 place
an embargo on gold export
According to figures obtained at the
Custom House yesterday approx mately
$4,000 900 OF gold was sent to Europe
last week. the two largest cargoes being
those OF the Kronprinzessin Cecilie, which
sailed Tuesday with sl0.500. 600. and is
due to arrive at Plymouth tonight, and
the St Louis. which sailed Friday with
81, 900 900. The movement since the first
OF tho year now totals SIPS. 900, 900 No
insurance on gold was possible here yes
terday at any time.
No Gold ships believed safe.
Some OF the marine insurance brok-
ers said that as they saw the situation
GOLD ,t,..
TO seizure with n declaration OF war
either by Germany or Russia. With such
declaration all gold shipments would
stop OF course.
The United States Sub-Treasury here
increased its gold holdings yesterday by
$50, 1000. OO0 the metal coming from the
Philadelphia mint In the form OF coin.
The transfer from Philadelphia in three
days amounts to 100000 900. II neces-
sary, according to a high official OF the
Government, at least 100000 900 In gold
coin and bars can be brought here at
once, although there IL not the slightest
idea that such sum will he needed
The well known statement of Cashier
Hale of the Sub-Treasury was repeated
yesterday with emphasis:
The United States Government has
N'5OO.O0O,OoO OF gold ready 10 meet any
| emergency"
The Office OF Comptroller Prendergast
was approached last week by interna
tlonal banking interests with the request
That the city anticipate the payment OF
some or It's approaching maturities, which
| In the next six months will amount to
some sSO,000.000. Unusual inducements
were offered In exchange for this accom-
mediation. These applications were re-
FUSED by the Comptroller on the ground
that such transaction would serve to
aggravat5 the abnormal conditions now
existing In the local exchange market
and would Inevitably lead to further ex-
ports or gold at a time when bankers
| here are meeting TO devise means to stop
| the outflow.
| The exact terms offered TO tho city are
not known. II is known. however. that
they included very substantial discount
| on any round sum In addition to this
| the bankers agreed to defray all the ex-
traordinary expenses OF purchasing the
necessary exchange at the utterly abnor-
NAL rates now quoted. This. of course
| greatly increased the Inducements offered
| Sterling cables are now quoted at 81 and
demand Mt $3.50. rates never seen
| before.
Refuse to Ada to Chaos
/ In making his determination that the
| '2C-pu9 'crms IN city officials were
swayed by the fact that the utter dlsloca-
ton or the exchange market here has
already resulted in great q sturbance IA
the whole financial community Not only
would acceptance mcdiatclv result in
the engagement OF another $4,000. 600 or
so for export. but II would compel phe
city TO borrow considerable part of the
money in the open market here. This
II was decided, would be an unwise pro.
cedure In view of the present state OF the
local banking position
The citys foreign maturities covering
the next six months aggregate approxi.
mately ss0.000.000. All obligations due
! in August have already been taken care
OF. and there Is nothing 10 fall due until
well into September. A detailed state.
ment OF these maturltlcs and the months
| in which they fall due Ia ms follows
September, to150O00 and 1000, oOC
francs; October f2,3lO,oOO lO,4bO, oOr
francs November, t6225 900, 1880. 900
francs December f2,73o,oOO $500, O0c
francs, and January. 100000 1885. oOC
francs. Grand total. fi3,535,OO0, 6l5O0,