The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-10-31
NEW YoRR MONEY MARKET.
The COmptroIIer ofthe Currency Bring,
the National Hanks 20 Time.

the National Hanks 10 Time.
NEw YoRK, October 30.-The announce.
ment by the Comptroller OF Currency that
the Department will see that the law for.
bidding National banks to certify checks in
excess Of the amount to the credit OF the
drawer, Is well received by bank officials,
who declare It high time that decisive &c.
ton Is taken against this "wlld" rampant
speculation. In other circles, however,
the action Is regarded as merely technical
aud will be broken by technicalities. The
law providing against over certifcation Of
checks Is an old one. An effort was
made TO enforce 1t at the time 1t was
passed, but without success, as q broker
by applying at bank at 10 o'clock in the
morning could loan any amount providing
his sureties were good and that he made
his loans good when the bank closed that
afternoon, however, 1t is thought that the
Governments action In the matter will
have depressing effect on the market,
mainly because OF tho ignorance with
which many persons will regard 1t.
1t will, says the Pot, II the action OF the
Comptroller leads to conservatism and
carefulness curb the wild speculation at
the Stock Exchange in worthless stuff or
in shares ofQuestionable value. At the
same time there is no reason why good
houses in the stock line should be in any
way embarrassed. II will hardly be
claimed, we fancy, that the government
can convert discount banks into savings
banks.
The Express says: The course Of the
Comptroller created great indignation
among brokers, who are the best Gus
toners Of downtown banks. II the
present movement on the part OF the
government should succeed In checking
speculation in doubtful securities a great
good would be accomplished and the busi-
ness diverted TO a more solid class OF
stocks and bonds, which are much less
liable to collapse, but it is very questions
ble " neither 1t is any part Of the govern
ments duty to regulate operations in
Wall street. This law in regard to certif-
cations has been dead letter ever
since its very enactment, and no
pretence was ever madeof complying with
it. The question is asked, why was not
this law enforced before now2 The &C.
ton OF those charged with the execution
OF the national bank laws naturally ere.
ates serious criticisms. The action Si some
of the Wall street bank presidents Is Gre.
ating very bitter feeling among solid stock
brokers, whose accounts have been
source Of great profit to these banks. So
intense is this feeling becoming that the
question of organizing bank with large
capital to do an exclusively stock ex-
change business is receiving considerable
amount ofattention. Small operators were
again shaken out to-day, and are beginning
to realize that the market is dangerous
one for them while the strong holders, un.
mindful Of frequent fluctuations, express
confidence in continuation of the boom
early in November, when money, they
say, will be plentiful.
The Public says: Never has there been
a more remarkable increase in the volume
OF business than that which the reports Of
clearing houses now disclose. The aggre-
gate OF exchanges at nineteen cities ex-
ceeds 81, 900, ,000, 900 in a single week, and
the aggregate at the cities outside OF New
York Is the largest ever known, exceeding
by nearly 100000 the unprecedented
amount for the week preceding. In COM
parison with the corresponding week OF
last year the gain in the volume OF business
is 1903 per cent at all the cities and 47.0
per cent outside Of New York. San Fran
cisco alone reports decline, and at nine
Of the remaining eighteen cities the in
crease exceeds 10 per cent. Deducting
San Francisco the exchanges at seventeen
cities OF the Atlantic States outside of New
York amount 10 $226,GS0, ,129, against
Sl40, ,65l ,002 last year, a gain OF 6l.2 per
cent. Certainly 1t cannot be said in the
presence OF so remarkable a record Of re-
covery from the depression OF last year
that the confidence OF merchants, manu-
tactures, investors or spectators is wholly
destitute Of solid foundation.
WASHINGTON, October 90-Concerning
the announcement made in to.day's New
York evening papers to the effect that
Comptroller Knox has written letter to
General Meigs, National Bank Examiner,
pointing out the national bank act, which
forbids national banks to certify to checks
in excess OF the amount to the credit of the
drawer OF the check, and that the depart
ment must and will see that the law is
respected and obeyed. The former says
he does not intend 10 make public the full
text OF his letter until he has consulted
with Secretary Sherman. Controller Knox
says his attention had not been called to
the matter, as has been reported, but that
he had teen observing the course OF affairs
for some time past with view OF ending
the practice. 1t is his intention, by a
rigid enforcement OF the law, to reduce
to a minimum the undue facilities for
stock gambling, which has been growing
up under this system of certifcation.
The law empowers the Comptroller OF
Currency to enforce its obeyance, and
any failure to observe it leaves it dis.
cretionary with him to appoint q receiver
for offending banks, and II necessary to
enforce the individual liability Of stock.
holders.