The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-07-02
Effect Of the Presidents Proclamation Appar-
entat New York, Where Bankers Are Inclined
to Be More Lenient with Customers
Short Session Favored by Mr.. Wheeler,
but Opposed by Leader McMillin.
Views of Ex-Secrstary Foster-Object Of the
Silver-Purchass Act, as Stated by Senator
Sherman-Indias Leap in the Dark.
CONFIDENCE PARTLY RESTORED.

land Issued His Proclamation.
New YORK. July 1.-Tbere is but one
opinion IN the commercial commu nifty as To
the etfeot of Presidents Cleveland's call for
an extra session, and that is. that 1t must
necessarily improve matters. For long
time merchants have been unable to obtain
accommodation at banks at any thing like
fair rates. for the reason that the banks
have been compelled to husband their re-
sources because OF the uncertainty regard
ing the future. Local bank officials al
most to man pointed to the Sherman sill
yer law as the great disturbing factor. The
compulsory purchase of the metal.
they have alleged, was the main cause
for the enormous loss in gold which
has been sustained during she past
year. the fear having prevailed in
Europe that the United States would be
forced to o silver basis. The depletion of
gold reserves led to what has been called
extreme conservatism in banking circles
and the stock Exchange was the first to suf-
Ter. subsequently,, the mercantile world
felt the pressure. With the removal of
what they term the prime cause or the
present financial distress, that is, the COM
pulsory purchase Of silver land nearly
be quoted agrees that the call for Congress
was only issued after it was reasonably
certain that the Sherman law could be re-
pealed) the banks of New York are in
chants.
There Is already more disposition to buy
good paper, but not in any volume to speak
of. The gain made lies In the fact that the
administration having determined to do
something to alleviate the distress In
Hp al w haen
looked up for q long time past Is now seek
ing emDloyment, confident that Congress
will ind way TO remedy the defect In our
monetary system. A return TO normal
rates in the market for mercantile paper
may be looked for in the early future.
Sales of paper not prime were made to-day
at Is per cent. Dut the ruling rate for the
very best names IL about per cent. The
silver market was decidedly firmer to-day,
$4,000 ounces changing hands at the board
st 7ll2072 cents per ounce. The closing
quotation was 734 bid and rs asked. Com
mercial bar solo at 70073. and Mexican
dollars at 50 cents. At London there was
also sharp reaction. the closing price
The Post says: with ell markets gov.
erned to SO extraordinary a degree by sem
timent it Is not easy to say how permanent
will be the present influence of the Presi-
deDts proclamation. Money Recommoda-
tion mas been universally made to stand
over the Fourth and by that time the re-
deposit of July disbursement funds must
bring relief. A return of the gloomy
scarcely probable. What would nndcubt-
edly, however, ease the situation more
than any other single event would be the
resumption OF gold imports, concerning
which opinions vary in an unusual degree.
The experience of the last two weeks sug-
sterling will advance. As this, however.
means return OF the market to normal
conditions, 1t can hardly be looked on as
unfavorable. But. even with considera-
BILE advance, rates would still Justify the
import OF gold bars or eagles. These the
Bank of England at present will not sell.
and with its sunpreeedentedly large reserv Q
of gold-upwRrds of $4,000. 000-lt is COM
pletely master of the situation. There is
no gold In the London open market, and
such as arrives from time TO time ls in
stantly, bought. as was the case this week
by the bank. But this situation can hardly
continue permanently. The volume OF
grain exports and the known fore gn pur-
in the trade balance so that the hest the
bank can do in any case 10 to postpone the
day of reckoning. The banks present un-
usual strength In bullion renders it possible
bankers may be considered. If so. the flow
of gold in this direction may begin very
soon."
Manager Sheerer. of the clearing house,
says 'Losnccrtitiostes for sl.570. 600 were
issued to-day TO olearip house banks. max
ing the total to date SIS. 10000
Considerable CONSERVATION was felt
among importing merch ants to-day, when
the new circular fixing the value of fereign
coins for the next three months appeared
from the Treasury Department at Wash
ington. The calculations on the cir
culsr are based on the average price
of silver. for the last three months.
The circular shows that there has been a
decline of only per cent. whereas, during
the past week. the decline in the value OF
silver has been about 15 per cent. For ex-
ample. the China tael is valued by it's cir
oulsrs at only l cent less than in the pre-
eeding circular, but it's value to-day has
fallen "a cents. The merchants cay that
they have paid for their goods in silver at
the high valuation, and that they are not
only losing the depreciation IN SILVER but
also are paying duties on the higher value
OF the silver. Thus. they are much con.
cerned.