The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-06-30
As High as rs Per Cent. Demanded for
Call Loans at New York 7 esterday.
Tbs Panic Stopped BY Bankers Who Took Out
$6.000.000 in Clearing House Certificates
aud Thus Relieved the Stringency.
Silver Quoted at 81 IA Pence az Gun ce
in London and 62 Cents in New York.
Cessation Of Mining and Smelling in Colora.
do-The Situation Discussed by Secre-
tary Herbert and Senator Teller.
FURRY IN THE MONEY MARKET.

FURRY IN THE MONEY MARKET.
Skyward Interest Rates Knocked Down by
Ciearins-Honse Certificates.
NEW YORK, June2 -Therates for money.
which mounted sky ward this morn,ng-as
much as IS per cent. being quoted in the
forenoon-broke in the most unexpected
manner about midday. as the result of the
action of the clearinghouse COMMITTEES.
which. as has been previously pointed out.
is the same as the clearinghouse associa-
tlon. only the chairman of the association.
q. g. Williams. president OF the Chemical
National Bank. is a member ex offioio of 1T,
and Frederick ID. Tappen. president of the
Gallatin Nation al Bank. is the chairman of
III instead of e. III. Perkins. jr.. president
of the Importers and Traders National
Bank. This morning the committee, or
rather q majority of them. in conjunction
with George K. Baker. president OF the
First National Bank, virtually formed
syndicate by agreeing to take ont lot of
clearing house loan certificates for the pur-
pose of putting stop to the high rates for
money and the panic that virtually existed
in the money market. Some of the banks
the Gallatln and the Fourth National. for
instance-had never taken out loan certifi-
Gates before. and they had no need to 10
SO now, except for the moral effect to be
produced thereby. BY taking out certifi-
Gates it enables them to lend large sums of
money without trenohing upon the cash
in their vaults. All OF them have more than
their required lawful reserve Of 25 per
cent of their deposits.
AS result of the committees delibera-
ii Ons this morning an issue of $4,000, 600 of
certificates was authorized. and all the
members of the loan committee availed
themselves of the opportunity in proper
tion to their capital except the Chem
ioai and the Importers and Traders
National banka The amounts thus taken
were as follows: GalIatin National Bank.
S50O. 900; Fourth National. Sl,0C0.00O; Chase
National. Sl5O0.000; Corn Exchange. $780,
Coz; First National. 81. so. COZ. making ii to-
tai of S6.0O0.O00. immediately aiJer the is
sue of certificates was authorized II. T..
rockingham, representing some OF the
banks. lent B.. 000 on the Stock Exchange
at ls of per cent and interest. and the
rate immediately fell to q per cent, alter
wards increasing to II per cent, aud then
Ealing at O'Clock TO per cent.
WHAT LEADING BANKERS SAY.
In explanation of to-day's action, Mr..
Tappen, president of the Gallatin Bank,
said: mo money was TO be obtained this
morning at any price. and the committee
thought il was time something should be
done. This bank took out $500. COO of cer-
tifcstee, not because we needed them but
to break up the high rate for money. We
had 33 peg cent. reserve this morning. SO
we did not need the certificates. but by
taking them out we were enabled TO lend
S500O00 without encroaohinG upon our
cash."
Mr. Simmons, president of the Fourth
National Bank, said: This bank did not
need the certificates or money. but il
seemed TO me necessary that some action
should be taken to give relief TO the press
this unreasonable money panic. This
morning our cash on hand ana our call
loans exceeded 66 per cent. of our de-
pOsits."
E. II. Perkins, jr., president of the I'm.
porters and Traders National Bank. said
the report was not true that he had refused
TO take out certificates for his bank. Il do
not know" .he added, whether we shall
take any out or not We have plenty OF
money TO lend without doing sc"
Mr.. Williams. president of the Chemical
Bank. declined to say whether his bank
would or would not take out any certiii-
Gates. lt is believed IN banking circles
that both the Chemical and the Importers
Gates this week. Some of the largest
banks did so yesterday. but simply to &C.
commodate their customers without trench.
ing upon the cash in their vaults.
The stock market enjoyed boom in
| prices as o result of the cIearin T. house COM
mittees action, and the relief as general.
| The condition of affairs In Philadelphia
banking circles in connection with their
accounts with banks In this city, to which
| attention was called In these dis.
| patches q couple of days ago. Is becomin g
| more marked. According TO advices re.
| celved from Philadelphia this morning.
New York exchange in that city Is at a
| premium of s. for 81 ,000 or half cent on
| city have large balances owing to them by
| Philsdelphia banks, which the latter are
unable TO remit on account of their inabii.
| ity to procure New York Exchange or cur
rency. One bank In this city has $3.50, 900
tied up in Philadelphia in that way, an
other has 5000, 200, and another has $500, ,000
and the question is becoming q serious
| one. Some of the banks here
| have charged the sums thul
owing by their Philadel phia customers fol
| collections to the iatters reserve accounts
with them. This will make il necessary
| of course, for these Philadelphia banks to
! make their accounts here good in some
| way, If they have to draw on this city, but
A
the matter, except to exercise extreme
caution IN accepting Philadelphia ex.
| change from their customers. Unless the
| Philadelphia banks remit this week. it Il
| probable. according To some New York
| bankers, that discount will be charged
on all Philadelphia exchange received frou
dealers here. One case is known where q
large discount was charged for a check 0l
| 100000. being special transaction.
SILVER DROPS TO sIXTY-TwO CENTS.
| The stringency in money here demoral
lzed the sterling exchange market and tn,
selling rates fell below the gold-importini
point. The drop in silver in London t,
| 3l4 pence per ounce demoralized the m ar
ket for the metal here. At the Stock Ex
change silver certificates broke from 6Sli
to 62 cents. while outside of the board com
meroial bar silver fell TO 62 cents and Mex
lean dollars 70 55 cents. Not sale was re
| ported the mining department of the
New York Stock Exchange. At the Con
| solidated Exchange the trading was hight
| but prices were Dominally lO02D per cent
lower all along the line. Dealers say tha
| transactions In government bonds hav,
| been on an enormous scale recently. One
| authority estimates the sales for the pas
fortnight by savings banks and kindred
institutions at about four million dollars
! National banks were the purchasers anl
| full prices were paid In every instance.
The Post says: Silver bullion price
| touched II pence per ounce in London thi
| morning and 90 cents In New ork. the lat
ter figure representing decline Of 6L
| fs nj VI V-ef cloaing and "A drO,