Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-11-19
RESOURCES OF THE BANKS.
Hon. John Jay Knox States His View
ON the Financial Situation.


Mr. John Jay Knox, president Of the Ma
tional Bank Of the Republic, said in an inter-
view in the New York Son:
have had numerous dispatches from cor
respondents in the principal cities during the
iast Few days in reference to the situation. The
oanks IN this city doing n commercial business
hoid AZ the present time an unusually large
amount OF bills receivable and commercial
paper This paper is based upon the cotton,
rice and other products of the south.
wheat and other grains in the big mills and
elevators OF the northwest, ore which is being
converted into silver and lead in the huge
smelling works Of the far west, and hogs and
cattle to be slaughtered later in the year. 1t is
also based, to n considerable extent. upon wool
and cotton hides and rubber and other mer-
chandise In store in this city. Some of these
products are now being moved on the railroad
and much the larger portion will arrive at the
seapoard before the beginning of the new year
anu De soid 10 hquidate the bills neld by the
banks IN this and other eastern cities.
The difficulty in the fall season of the year is
tnat, owlngfo the necessity OF large amount
OF money being required to move the crops
and provide for the increased trade of that
season; banks doing commercial business find
IL almost impossible to give all the facilities
needed. The fall business of 1890 commenced
earlier and hn, been much larger than usual.
and the returns from the interior are later
than usual in arriving. There have been
no failures OF importance in COM
mercial circles. The trouble has
been confined chiefly to the stock board,
arising principally from foreign complications
There is no cause for alarm SO far as the banks
are concerned. If there had been any such
cause the action of the clearing house on Tues
day. authorizing the issue of loan certificates
upon stocks and bonds and bills receivable.
should allay all apprehension. This action has
rendered the banks impregnable
Inc effective machinery of the clearing house
has becn brought into operation and ali of the
banks can convertany portion of their good bills
receivable into certificates. This course had the
desired effect in the fall of 1873 and aga in 1884
and there is no doubt it will have similar effect
IN quoting all apprehensions among those who
may fear financial crisis Some of the banks.
In order to conform to law i'll reference to re-
serve, have called in their loans, so that
they hold cash in excess of its require
ments, while other banks equally strong
and conservative have declined to make such
calls in order to make up their average, be-
cause they prefer not to Inconvenience good
customers and because they believe that their
reserves in time like the present are like the
reserves OF an army, to be used for the CON-
mon good. without regard to the strict letter
OF statute. which also contemplates exceptions
in times like this.
The action of the clearing house was pri
marily for the purpose of assisting these small
state banks which had temporarily suspended
their usual routine of business, but it war
equally for the purpose of giving facili.
ties now, as in 1878 and 1884, to al
the banks to extend accommodations tc
all their dealers who are pursuing a legiti
mate business and can give uudoubted security
and no bank whose dealers desire assistance
should be prevented by false delicacy from
awaiting itself of the opportunity which the
issue of certificates affords