St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-05-05

A Periodical Squall.
Henry CIews voiced the feelings OF
the more conservative Wall street men
when he said at noon:
There are times that big mems souls
as well as their pockets are punched.
If the latter are well filled, however. to-
gether with clear head, opportunities
are afforded for quick movements in the
market. 1t may be good policy to buy
good stocks hereafter In The pronounced
breaks for fair profits, which succeeding
rallies are sure to bring. 1t must be re-
membered that prices are now fully as
low on an average as those in the Bar
ing panic of 1890. That was a worlds
panic, while this is but local
one, at any rate confined with
in the boundaries of our own
country. | am quite OF the opinion that
today will eradicate the weak spots.
and make stronger bottom for good
stocks than they have had for some
time past. Squalls come periodically,
and after we get over this one we will
be exempt from another for several
years to come. This is the experience
of the past, and the present upneaval
will not be unlike former ones in that
respect"
William Shearer. manager of the
clearing house association, when asked
as to the condition of the banks this aft
ernOOn, said:
Banks Not Affected
I'VE have seen absolutely 10 effect OF
the street here. The banks are in eX-1
cellent shape. In fact, at l o'clock the
balances were unusually large, and
there was a marked absence of any
thing but normal and healthy condi-
tions. The bank reserves are $1,000
600 in excess of the % per cent legal
limit"
ut was reported that the clearing
house had offered to issue loan certifi-
Gates to the banks this morning. Is
there any truth in thatY'
absolutely none. Such thing has
not even been suggested. That is n
measure which has been adopted on
just four occasions. The last time was
during the Barring failure. Another
was III 1854"
what do you consider the cause for
the present depression III the market ?''
II regard it as the effect of the So
called Sherman bill. with the accom-
panying idea that the United States
treasury cannot pay out gold below the
SlOO,OO0,OOO reserve. These have att
tracted the people to gold. This has
been particularly true Of foreign hold !
ers Of American securities who have
been in need OF money. They have
sold their stocks in the American
market and turned the tide OF trade
against us. 1t is only the natural tend
ency from time to time of liquidation
among investors. This is the situation
as | see it."
TO Protect the Reserve.
haf
tary Carlisle and dozen leading bank
presidents here on April 27, several
stories have been told of plans which
had been proposed whereby the gold IN
the treasury would be increased. 1t has
been said that several plans to this
end have been under discussion by the
bankers since the secretary went away.
and that one Of them eventually
agreed upon. This is not exactly the
case. A basis upon which the banks
are willing 20 put out the.r gold is not
acceptable to the secretary OF the treas
ury. Secretary Carlisle has Ideas OF his
own regarding the protection of the gold
reserve, and has intimated to the bank
ers the plan which he would like to see
put into effect. The bankers are very
reticent about speaking of the plan
which would please the secretary,as 1t is
not exactly to their liking. But from
member of one of the leading banking
firms in this city who has been fully
conyerSaut with all that has taken place
regarding the gold situation, synopsis
of the plan to protect the gold reserve,
which plan, it is said, would be accepta-
bic to the secretary, was obtained. The
banker from whom the information was
obtained said:
Pay Out the Gold.
"The situation is not as bad as it APP
pears. The fear has passed away OF
payment by the government of its cur
rency obligations otherwise than by the
gold in its possession as reserve. The
real difficulty is in the drain from the
banks of their reserve (reduced now to
about Sl2, 900, 000) by their cOin-shiDDing
customers. The effect of the payments
into the treasury is to be seen through
the contraction caused by the payments
to the government of legal tender cur
rency for gold. The gold is shipped
abroad and lost TO the community,
but the legal tenders are paid into the
treasury and cannot again be put into
circulation eXceptthrOugh the slow proc
ess of disbursements made by 1t. As,
at the same time, there is an inward and
outward flow at the treasury, the loss or
gain to the banks on this head may be
measured by an inspection OF the re-
ceiptS and disbursements Of the past
two years. 1t will be seen that there
will not be loss or gain to either side
of say $4,000, 900 per month, based on
the S5,O0O,O0O deficit last month,
whereas by continual shipping OF gold
the treasury, or probably the banks,
May Lose sS,OO0,OO Per Week.
This loss they cannot bear, and the
result will be if the movement takes
place that the present reserve will dis
appear and be- locked up in the United
States treasury and the banks will be
reduced too their Old eXpedient OF max
ing settlements with the clearing house
IN clearing house certificates used on
the mercantile and marketable secur-
titles. The plan which would obyiate
this sitnatinn womb be for the hanks To-