New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-24
THE MONETARY SITUATION.

Probably the financial institutions of the city of
New-York and of other Eastern cities never have
passed through q more trying ordeal than that Oh
the last two weeks. That the situation week
ago was largely due to an unreasonable and IN
founded scare is only additional proof of the
actual soundness of our conntry,s finances. i
action of the New-YOrk banks, which has since
been followed by the associations of Boston. Phil
adephia and Chicago in the utilizing of credits
for Clearing House certificates, would not have
prevented what then seemed to be an impending
national calamity. II was over-caution on the
part of the New-York banks which made them
first place Ia per cent commission per month In
addition to per cent per annum upon such Clear
ing House certificates as might be issued OF
course the object to make them so expensive
as to prevent their use for the floating OF UNI
worthy loans. A fuller investigation of the actual
situation induced the Clearing House Association
last Thursday to take of the Ia per cent per
month upon all issues that had been or may, be
made The total Of such issues up to the close
of business on Friday was IS. 425, 000 and yet
the bank statement, which Of course takes no
cognizance of these issues which circulate only
between the Clearing House and the banks, shows
contraction of $5, $50, 700 in the amount of loans
TO the public-another item of evidence that 1t
was confidence and not cash which was required
to bridge situation produced largely from
mystery and fear IL mas been reported from
Washington that the Treasury Geographic trans
fers from San Francisco had amounted to So, co.
600; but the Sub-Treasury at New-York up TO the
close of business on Friday had paid out on such
orders only 81 100000 and had received $500,
600 for Transmission to San Francisco, making
the net gain TO the banks by such movement
only 81 100000
The announcement Of additional failures at the
Stock Exchange at the beginning of the week
caused the money rate on Monday al the EXCHANGE
10 advance to and close at SO per cent. On
Tuesday the feeling was easier and 30 per cent
was the highest rate, closing, however, at about
5 per cent. For the remainder of the week the
rates ran from S Wednesday down to per
cent as the common rate for Friday, with late
loans low as per cent.
All the foreign money markets. except that of
Paris, were much disturbed in the early part of
the week by rumors of additional troubles in
London, which. however. proved to be entirely
without foundation In London discounts in the
while bankers balances early in the week com
manded per cent. although the Bank Of England
rate remained unchanged at per cent. Toward
the close Of the week, however discounts declined
to eos 1-2 per cent, and balances to 5G5 IA
per cent Tie Bank of England's weekly state
ment showed gain Of f3,42O,395 bullion, but
only Increased 2.57 per oent-to 35,2-against
40.94 per cent at date a year ago. The Bank
of England now holds f22, 1857 ,90s bullion against
q fl9s22.775 November 81, $50. But the Bank
Of France holds CT .oOo. 900 less gold than year
ago--that is, now G44, 1885, 900; yet at Paris the
rate Of interest is easy at 3 per cent.
The foreign exchanges were very much democrat
ized during the whole week, 80 that rates were
hardly quotable. Bankers were unwilling TO buy
the best class of commercial bills, and only few
OF the bankers were willing TO draw sight bills
or grant cables at any rates Therefore there was
difference between bankers 60-day and sight
bills ranging from TO % cents 6. and com.
mercial 6O-day bills were sold at 6s7 cents
below bankers 60-day bills. Toward the close
of the week, however, there a partial re-
covery toward normal conditions. but still there
was a wide difference between long and short
bills and the business done basis oil
about 81 80 for 60-days and 81 81 for short
sight.
RAILROAD EARNINGS.
"The Chronicle" prints its compilation Of net
earnings or railroads for the month of Scptembel
and for the nine months ended September 30
The monthly statement includes 1917 companies
and gives the net for this year at S2l 1852. j 81