New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-03-03
THE MONETARY SITUATION.

10 snare, sold So O62 ~ -G1 l31O.J0j
THE MONETARY SITUATION.
With the avowed and open threat that stock
specnlatOrs intended in the near future 10 thc
advantage Of the so-callcd low reserves Of the
banks 10 manipulate the money market. 1t last
week ruled so easy that il is plain there was u
failure 10 make connection with the banking III
stifufious which sixty days ago made themselves
notorious by Joining and aiding such a manlpula
ton The talk about the low reserves Of the banks
under existing conditions Is POSITIVE evidence
of ignorance or partnership wllh wall street
conspratoIs And it is noticeable that the weekly
notification which in 1913 was unable 10 discover
any dangerous elements until the panic was pre-
cipitated is now, and has been for long period.
A pronounced alarmist on the monetary situation
II knows absolutely that the Clearing House IN
cludcs the capital of Sl2, 512,700 Of state banks
out of the total capital in the Clearing iiouS' OF
500, 200. 1t knows that among me safest
and soundest banks in this city there are
four or five State banks, which never, ca
crpt during periods Of great sagnation, wasted
their profits by carrying reserves equal to 20 per
cent of the deposits. And yet, with this absolui"
knowledge il says three Of the leading banks
reported a surplus above % per cent of ~ 100, 900
greater than the surplus of all the banks IN the
Clearing House. This is positive miSrepresenta-
zion of facts even if it be admitted that the
absurd National law of % per cent Is any longer
needed either by the Treasury or the National
banks The local money market during the week
ruled between l-2 and per cent for call loans
until Thursday. On Thursday and Friday the
rates ran between and 10 per cent, but the
husiness generally was done at an average below
ncr cont Friday the last money day of
The week as we'll the last day Of the month,
and necessarily there was certain amount OF
funds Withdrawn from circulation in preparation
for the March disbursements OF Interest
and dividends. which by railroad cor
porations alone exceed $70,OO0,o0o. During
the month of February the Ncw-iork banks lost
S14 600 900 cash. The Treasury statements
printed above show that Of THIS loss SlO.oOOOVO
was by the absorption of the United States Treas
ury The Treasury statement also shows tha'
il is booked for disbursements during the month
of March Of over 81 900 600, and this irrespective
of what it may do in the way Of purchasing bonds.
Nevertheless, the situation Is such tha' whc
there is no for it,, the desperation OF STOCK
Spectators may easily create temporary strln-
gcncy in money unless the Secretary OF the Treas
ury shall announce his willingness 10 resume THE
purchase Of per cent bonds al about thor present
market value For time money on security
colateras there is absolutely little or 10 demand
and the rates for IT,. whatever they may be
quoted at by money brokers. are little more than
nominal
The foreign exchanges ruled weak during the
whole week. but they closed on Friday Tor
Saturdays mail at 81 so l-2 and 81 81 as re-
spectively for long and short sterling. Ycstcr-
day with no mail until next Wednesday. there
was drop Of nearly one cent on sales made Of
Western bankers bills. The decline coming 81
suddenly after the closing of Saturdays mail. is
|srather suspicious, and still IL may have been
nerfectly legtumats. II is possible thai the