The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-08-04
CURRENCY AT A PREMIUM.
BROKERS SENDING AROUND TO BUT
TT AND RESELLING AT A PROBE.

selves Fcit-It IL Hard to Get Small Cash
for Pay Roii,-New York In an Envi.bIe
Coalition Compared with Other cities.
Il ia gradually being made plain to every
ope OF ordinary Intelligence. that the impair
ment Of confidence which has demoralized the
business Of tho country. and which many
people attribute solely to tho operations OF tho
sherman silver law. Is due also to other and
more general causes
The most vigorous DIRECTORS to that statute
hayo furnished important evidence upon this
pont Thoy have argued oil along that ono OF
the frs. tangible effects OF Senator Sherman's
COMPROMISE silver law would be premium
upon gold. Never since that measure became
law has tho commercial distress Of the coun-
try been as grent as at present: but as yot
there is no premium on gold.
On tho contrary. current funds OF oil kinds
now command premium OF l to per cent.
according TO the necessities OF the purchaser.
and gold circulatcs moro freely than ut any
timo siuce the resu m ption Of specie payments:
and 1t is not readily received in settlement OF
obligations
Thus the financial experts and prophets who
have been predicting q premium upon gold
have been confounded. 1t now becomes these
prophets to retro from tho field and wait for
the next step toward reconstructing the mon
stary system Of tho United States upon basis
that will appeal to q majority Of the people us
stable and sound.
A premium was paid to-day in many cases
for deliveries OF actual currency. This was
not the result OF stringency in the money inRr-
ket. but was brought about by the unwilling
ness Of certain OF the banks to respond to de-
mands for currency. They were compelled to
pursue the policy they have by the heavy. pro-
trncted drains upon their cash.
First they sent money to Chicago to help
check tho runs upon the savings banks and
other institutions OF that centre. Next they
sent some to Philadelphia, to San Francisco.
and other points on the Pacific coast. more
recently to Boston. and now Chicago is impor-
tuning them again. They have also dstribut-
Cd millions OF dollars at smaller points all over
tho United States. responding to the requests
Of one provincial bank after another for &C.
commodations. largely In cash. that would
enable them to keep their doors open.
Now Chicago is in the market again for
monsy. but 1t is not likely to get much assist
ance. One trouble with Chicago Is that its
White City" Is proving to be white ele-
phant" Although the Chicago Fair is attract
ing unusual amounts Of actual cash to that
centre. its bankers are unable to meet tho
demands made upon them. They have tried
to blind the eyes OF the public to the real
isaue BY asserting that their correspondent
banks in New York have not treated them
fairly.
As a matter OF fact tho resources OF Chicago
are tied I'D In the World's Fair and other incl
dental enterprises. and IN grain and provision
speculation. These last have collapsed. and
tho entire country is benefited thereby. since
natural market for wheat and other food prod
uots has at last boon obtained.
Eyidence OF the SfrAita in which thu Col,,p,.
biah Exhibition finds itself financially Is fur.
n!shed In the decision Of its prom oters who
appoint committee TO finance It. although it
has been open to the public fully three months.
According to trustworthy information. two
or threo weil-known concerns doing business
in the Windy City arc ON thor last legs. Hence
confessions OF insolvency from that quart ter in
the near future will not surprise bankers here.
Another very sore spot has been at st. Paul.
and the chances are against its being healed.
Tho financial situation is most remarkable
ono Money ceased going out OF the country
several weeks ago. and now largo amount OF
gold. fully $4,000. 900. is returning from Eu-
rope In payment for heavy exports. which are
morally certain to continue.
Since the imports OF gold stopped q very
material addition has been made to the circu-
lating medium Of the country by the opera
lions Of tho Sherman Silver law and by an
unusual increase in the national bank circu-
latlon.
Both OF these factors are still ut work, tho
last with increasing force. Right here it may
DO noted that tho principal house In the Gov
eminent bond business effected the transfer
yesterday OF S3.o00.0OO OF Governments in
various amounts, chiefly from savings banks to
national banks that will use them as q basis
for circulation.
According to the Treasury Department. the
n July was 81 .s72. oQo. and larger Increase
cially In national bank note circul alton. ''''
During During ths last two months there has beer.
tbs demands for money through the Custom to
Ihe changes that have taken place would
oraina rily result in a plethora OF unem pioyed
S Sspa The N,1thinG Of the sort has taken
sI.assn to the OF T eVory busn 1
Bank ofncials have been conscious of this
Il b,s 0t money i2r long time and &C last
pay ments at Philadelphia. Boston and Chi CHI
The, hsyf not be ss hS
,. The Officers Of both tbs, Clearing House.
s6a ans and TIE savings institutions hero have
hoar .hsE p Of motley sS prevent snd
their policy may have worked hard
ship In some cases. bnt they have simply en- |
dsaIored to keep the life blood OF business in /
fully si5 tg 81 Of essS IN
hanh they may succeed In their efforts.
Tho fact cannot no stated too strongly that
eysry man who withholis dollar from circu-
nnon. whsther he be a merchant prince or a |
day iaborer. Ia contributing to a disaster in
which both will suffer equally.
The one helps to destroy tho resources upon
which be has always rolled. and the other de-
Drives his em ployer Of his ability to give him
work. A
This unreasoninR SELF destruction is the
ssSyery one who has suecumbed to It realizes
the Tart and endoavors to ailay tho we'll nigh |
general apprehension. the better.
!, For several days past money brokers and
their agents have been endeavoring. In a
lulet way. to accumulate cash. Their
Preference has been for currency. Tor,
strange to say. GOLD. which was to have
gone to premium. according to the predic.
Ion Of financial wiseacrrs. In consequence of
fhs oDsrations Of the Sherman Silver law. IL
now dIseriminated against By every individual
lnd Institution seeking to increase their sup
Tho Treasury has recently disbursed It
rely; but II has Immediately returned to II.
anti its legal tendon reserve. which WAS I'm
paired last April has been made good again.
no lar As can be learned. the money brokers
nave not met with any success In negotiating