The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-05-05

ful conditions. The bank reserves are S12.-
100000 IN excess o. the % Der cent. legal
limit"
''It Is reported ii at the clearing house
had offered to issue loan certificates TO the
banks this morning. is there ans truth IN
that"
Absolutely none. Such q thing has not
been suggested. That Is measure which
has been adopted on just four occasions.
the last time was during the Barring fall
ure. Another was In 1884 The loan cer-
tihcates are issued TO the banks upon the
collateral which they have In hand as col
lateral IN turn for their loans. and the
issuance of the certificates allows the banks
TO use over again securities which have al
READY been employed by their customers
for the obtaining OF loans. In this man.
ner the availability of collateral for the
maintenance OF credit Is actually dou-
bled when there Is the most need Tor
credit. The loan certificates are redis-
count of bills receivable by the banks and
q rehypOtheeaiion of securities for call
loans We have had no necessity for the
employment of the certificates yet OF
course. If the association OF which the
clearing house Is the representative thinks
IL necessary In the next few days TO under
take the measure. IL will be done. But the
present condition of the banks Is so
healthy that they can carry thelr loans
themselves. and do not need to rehy pothe-
cate their collateral TO meet any present
exigency for call loans"
present depression in the marketp
Il regard it as tho effect OF the so-called
Sherman bill, with the accompanying idea
that the United States treasury cannot pay
out gold below the one hundred million re-
serve. These have attracted the people TO
gold. This has been particularly true of
foreign holders Of American securities rho
have been III need of money. They have
soid their stocks in the American market
and turned the tide of trade against US. Ii
is only the natural tendency. from time
TO time. of liquidation among investors
This Is the situation as i SEQ II; namely,
scarce gold and the trimming down where
she trimming can be best donc. The
fact that the treasury notes by the Sher-
man bill are made pay able for bullion leads
the people to believe that there must be n
growing scarcity of gold when the pay
ments are being made and the silver
ballIoE accommodating. The idea. however,
that the reserve must lie kept st any speci-
fed mark according to law is the chief
cause of the uneasiness while there is
nothing In the law to compel that / do
not believe that the balance of trade will
remain always against u.s. 1t Is not an I'M
mixed evil. either. this occasional liQuida-
tion. 1t has the healthy effect which al
ways comes after one has paid his debts
and cut of what Is extravagant. man Is
no poorer to pay what he owes than he is to
have the money himself and owe it,"
Receivers for the Cordage Trust.
JERSEY CITY, N. j., May 4.-Chancellor
MeGill tonight. at his residence in Barrow
street, appointed George w. Lopez and f.
+. c. Young receivers for the National
Cordage Conn any. The receivers were ap-
pointed on the application of counsel for
the CordaRe company. Receiver Loper is
treasurer of the company and Young Is
president of the First National Bank of
jersey City. The company has about 3d.
C00.O in bonds and securities to pay off in
few days. and it is unable to meet the
demands. The petition for the appoint
ment of the receivers was made for the
purpose of protecting the company's prop
erty against attachment The receivers
will give sec. 900 bonds.