St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-06
CURRENCY ISSCARCE.
New York Bankers Finding
Tn emselveS Short Of
Paper Money.
Some Hard Pushed to Meet
the Demand on Them
for Bills.
They Have Plenty OF Cash,
but 1t Is Mostly in
Gold.
One Trust Company Has 49,
100000 in Currency
Locked Uo.

New YORK, July 5.-Much interest is
being manifested i'll the special meeting
of the chamber of commerce called for
tomorrow. The purpose of the meeting
is to consider the present disturbed
condition of the finances of the. coun-
try" and to pass resolutions expressing
the views of the chamber regarding the
present state of things, and advising the
course of action which the chamber
should consider most timely and etfi-
cient for remedying existing evils.
Those members who are most actively
urging the chamber to take strong
stand were busy to-day bringing to-
gether men who represent interests in
various parts OF the nation.
How New York feels and thinks is
pretty well known" said a member
today. That will be emphasized. L
hope. But we wish also to hear Sec
tional views. if there be any such. In
this way the chambers decision may
have weight outside OF the state and as
far as its members have influence"
The. Monetary Situation.
The chief features in the monetary
situation today, according to several of
the leading bank presidents, were un-
rest, lack of confidence and a scarcity
OF currency. The latter is apparently
becoming very serious matter. and
some banks are pretty hard pushed to
secure enough to meet the demand upon
them, Late on Monday afternoon orders
ppnpIUnn hu talnuronI1 "a fO lar
of currency from Boston, Baltimore and
PittSburg. A dispatch from Philadelphia
today reported the refusal of a bank in
that city to pay a check on it for $3.50, ,000
in cash. The holder of the check, it
was said, would insist on the check
being paid in cash today. The bank
can pay it all in silver dollars if it cared
to do SO. One OF the most influential
members of the clearing house said this
afternoon;
''It is all nonsense, this talk about an
actual scarcity of currency, but if every
body keeps on talking about it there
will soon be one. Tine banks have got
plenty of cash. but the trouble is they
are attempting 10 hoard their gold.
They Have Got SIO0,O0O,OO0
in gold and currency. The proper thing
for them to do would be for them to
lohC VI LllGil SOiO " litC SuU-lIOdS-
ury and get currency for it if they are
III need of currency"
Several bank officers called at the
subtreaSury this afternoon and asked
what they could get in the wav of cur
Ieucy if they needed any. They did not
mention any amounts, SO that the treas
ury officials were this afternoon unable
to form any opinion what the probable
demand will be for currency before the
close of business. The assistant treas
urer, however, informed the bank o fiji
GERS that the subtreaSury would con-
tinue to do as it had done, namely, to
give the banks all the currency they
needed, small notes in exchange for
greenbackS, gold certificates or gold
colu, and for notes of the denomination
of Sl0 and upward large treasury notes
would be received.
The orders for currency by mail this
morning were reported as light, butiS
was said that i'll view of Mondays eXA.
perIence icould not be estimated how
much would be shipped until the hour
had passed for the receipt of telegraphic
orders. By Saturday it was hoped much
of the currency that had been drawn
by savings banks in this city and else
where for payment of interest and divi-
dendS would begin to flow back into the
banks of this city. The president of
one of the large national banks, in
speaking on this matter, said that the
large amount of
Currency Was Locked Up
in the vaults of the trust companies.
He knew of one trust company that mad
100000 OF currency locked up in that
way. 1t had the accounts of several
savings banks, and did not know at
what moment they might want their
money, and, therefore, did not like to
lend money. 1t accordingly took the
S3,000,000 out of the national banks with
which it, in turn, kept its accounts, for
fear that they might not be able or will
ing to let it have the curren0y when
needed.
At the subtreasury today it was said
that there had been no telegra phic
transfer of money to any point today,
but $500, 900 in small notes had been eX-
changed for large ones up to that hour.
The scarcity OF currency i'll the banks,
1t was said, was known, and everything
had been done by the treasury officials
that was possible to save the strain.
During the last week no less than
Sc, 100000 in currency had been paid out
by the subtreasury in this city in eX-
change for large notes (greenbacks),
gold certificates, gold coin and legal
tender certificates. The banks having
checks OH the subtreasury had present
ed them direct instead of through the
clearing house, and had received the
cash for them. The subtreasuIy in this
city has at present only S13, 900, 900 of
currency in hand, but it can draw for
two or three million more FROM Wash
ingtOn if occasion requires.
PhiIadelphia's Difficulty.
The clearing house loan committee
issued 100000 more certificates today,
thus making the total amount now
issued S22, 115,o00. With reference to
the very great difficulty the Philadel-
phia banks have had in getting New
York eXchange-as much as S5 per
$1,000 was paid last week on some of
them in order that they might remit
what they owed to bankers in this city
it was reported today that some of
the older bank officers of Philadelphia
believe that something should be done
to prevent the recurrence of such a
state of affairs, and for that purpose
will endeaYor to bring about a change
in the monetary relations with this city.
1t has been suggested in Phlladel-
phia that that city shoul be
made central reserve city for national
banks. the same as Chicago. If that
were done it is believed (by some Phila-
delphians) that from S10,000,000 to SIS
000.000, which are now kept by Pennsyl-
vania banks in this city, would be kept
in Philadelphia instead. A leading New
York bank president, however, today