New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-07-11
CURRENCY COMING BACK.
THE RETURN FLOW TO THIS CITY ASSUMES
ENCOURAGING PROPORTIONS.
o,-r.or.rowy BANKS TIRED OF BOARDING CASH
A IsTLEss STOCK MARKEr-DRCG
FIRMS WANT GOLD.


TIL. stock market was dull and li'tless again yes
to-day and prices continued TO decline. The market
at the present time however, Is hardy hr criterion
by which to Judge the general sl'u'''oh' Lower
prices We're, in rart, the result VI o'u H'"s from
London where one large house mat WAS IN trouble
threw over It's holdings, incluhhe many american
securities without waiting Tor todays settlements In
part, a reflection OF the dlsapl'oihl'n' hll NJ 'he
moor showing made I'm Saturdays bank statement; and
moro than all the natural Consequence OF the tight
money market which makes it impossible for spec
ulators and commission houses to borrow money with
which to trade. In financial ana coHlhi'roai crclcs
there was clearly better leehhs mamf'eu' ING
return flow OF currency toward THIS Guy aS'un'd en-
couraCing proportions the demand lor luhus from
Philadelphia and ncighborng cities which absorbed
considerable currency last week, ceased; indications
wore numerous that out-oftown banks were getting
tired NJ carving i'm their vaults large amounts OF
cash for which they have no use, ana on which
they are earning no interest; requests ior accoHmo
dalton on commercial paper were comp'r''NeN lew'
and on the whole bankers viewed the SITUATION with
eouanimity. From Iittsburg alone came dlscouraS
ing reports, and these were the result ol 'he eA-
tensve shutting down Of iron works throughout
Western Pennsylvania, where the HIio""'i' anu 'he
operators unable TO agree.
In spite OF all that has been SAID ana written on
the subject since money began u DC sent 10 the III
terror I'm response to the demands OF inc country
banks for lnds, there many people VINO commune
10 express wonder rs what has become OF the money
that has been withdrawn from circulation. The cA-
nericnce OF New-York bank officials within the last
few DAYS shows that most OF this money has been
Withdrawn from deposits here and boarded In the
vaults OF interior banks purely as precautionary
measure. 1t has become an everyday occurrence
now Tor the officials OF these banks TO drop In on
their Ncw-York correspondents and ask advice rs to
what they would better do with the money. One OF
tho city
in his grpsack.
81 thought I would bring the money with me-
he said to the president OF Ncwiork bank "and
see what you thought about rcdcpo'i'ing 1t. We
have more cash on hand than We know what 10 DO
WITH
lie was advised to buy commercial paper ana th'h
20 home and send on the rest OF his banks surplus
rcscrvc for like investment. Another ouofto"n
banker rcported that his bank had cash In It's vaults
amounting to 80 per cent OF the deposits lie
wanted TO know II he could got more accommodation
I'm case It was needed. The advice given 10 MN was
TO stop boarding money for which he had no possible
Use and send 1t back here where 1t could earn
interest and would at the same time help 10 relieve
| the strIngcncy These are only typical cases, ana
they show clearly enough that the money has Deeh
locked up in expectation OF trouble Inc uouoe mas
not come. and that confidence Is being reS'or'u
those who have charge OF cash are becoming ahAlous
To- release It and let return to the natural cah's'
The position OF the New York savings banks IN TINS
regard +, similar TO that OF the outoftown business
banks.
The Suh Treasury was again creditor AZ inc
Clearing House yesterday, the amount oil inc "aanoe
due being s6lOdoO This was, Of course, o"ins 10
the policy adopted by the banks Of casns their auo
Treasury checks the counter Of that ihsu'u'oh'
instead Of sending them TO the Clearing House '''
| collection BY this means the creditor BANKS nave
been getting currency whore they would o'her"ia'
have had take loan certificates Tor ticir "aah'''
Yesterday when they presented their oh'oh' Il, NV
sub Treasury they were surprised receiving gold In
payment Instead Of currency. Currency was "hat
| they wanted hut they could not refuse gold ana
cold they had 10 take sub-Ireasurcr Jordan. when
| asked why he had made the payments IN ths way
| said he had explanation 10 sVc. "old was
legal tender and he preferred 10 pay ID, checks A'
way several bankers expressed the i'liei that lhc
| Government has disposed Of - nucA tuIr'hcy ]"
exchange for bills Of large denomination that the sup
ply of small bills running short. ana mat ta WIS
| the reason for the gold disbursements Others SUE
| gcstcd that the Government was ec'uhs urcu W
| counting out money To pay the checks "ith' anu
| wanted 10 discourage the banks from cashlhs the
checks direct by making them carry around biz bags
| Of gold which Is rather bulky when the amount
| reaches s4OO. 900 and over, as It ala yesterday
| While the banks w,r" Carrying of the gold paih !"
them al the sub Treasury an Lrhsua ana r'''r i"1S
scene was being enacted at the Clearing House Inc
.nb Treasury balance there was 100000 Ills had to
| ~,
| loan certificates. Manager shcrcr found however
when he came 10 make his settlements that all IN"
bank, had made their settlements In c'riiheaics' anu
| that he was left withost current funds Win VINO"
| 10 pay the Government. There was Only one 'hins
| TO do and that 10 run around among inc '''N'
and get the certificate, exchanged Tor cash. Inns
Mr. sherer did, and the Government finally got lis
money II is not likely that the manager "i inc
Clearing House will care 20 H. this trouble every
iay even to "llge the lfh*a that are % ""A''"'
| one new feature was injected into the siim,i"h
yesterday. but II cut only q small henrr IN, ,tn,,
d, mands on their customers for colo paymrhS' ~,
,chiciiclin n Co.. Of 80. 40 william ST. "'h' o''
| the following notice to the trad" July ,,
! Please take notice that In Nicv 81 The uncertain
future Of currency, any Sa, 81 me Hi'I~'ns vhl m
United states gold or iS currency e'iman"n, .d,ns
follows long list OF proprietary lmpoFtsa m,"icn,s
vc4 crny that the circular had nj been m'undt r7t"
Iy The trade We alc not dcmindins gold for onr
| goods" he added. "Th, step wa, simply - pre-
cnutionary one taken In view OF the possibility 81
gold eJns to premium me nIow" INV wa We nnyr
| ,o nav thr EUROPEAN houses from which "" hny In
gold and furthermore, that We are simply protecting
other firms Of wholesale druggist were sid yr,,
tcrday have taken similar action IN van a.,
street there were comments made, but 1t g'hsr'iiN
! was The opnl n that i firm had perfect right to
| ,tpnlaic ~ to In" kind Of money that 1t should be-
The prccautlon however thought 10 b" entirely
unnecessary. II cpuli not be- learned that an other
|
| seycral hanks which formerly insisted upon god
cansos in their mites have recently dropped tn"
| requirement.
bars falling to 30 Id in London; ana ~ cents II
| \ev- York. silver bu. certificates sold from
| ~ ia down to ~ 7-ed73. Nearly GOO.0JO ounce,
| werc sold for export.
4 PHILADELPHIA BROKER FAILS.
Philadelphia, July 1o.-Thr failure Of \. Y. Davl
SON stock broker, trading as \. \. DAWSON A Co.,
was announced on The stock Exchange this afternoon.
nkn Ill. ~