New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-04
ALMOSTA CURRENCY FAMINE
THE SCRAMBLE FOR SMALL BILLS PUTS
THEM AT A PREMIUM.
HoABD1xG OF MONEY ONE CAUSE OF THE
TROUBLE-A REACTION IN sTOCKS-MoEE
LOAN CERTIFICATES IssUED-THE

LOAN CERTIFICATES IssUED-THE
GOLD MOVEMENT.
A reaction in the stock market yesterday en-
phasizes the extraordinary conditions whch are
affecting the financial world. The net loss IN Vaues
for the day did above or 212 per cent anu
some stock did not suffer even to that extent 50
that the great gains OF Wednesdays advances were
nv no means wiped out. Yesterdays decline now
ever was sufficient to bring into bold reiei the ui-
favorable factors OF the situation. and 10 ehcour-
age predictions that at present any up"aru i"o'e-
ment could be only short-lived.
Hope continues to hang upon the uhdoup'euiy
heavy importations of gold and the expansion Oh
the currency by other means Few other elements
of encoura cement are to be pointed out. Inc
largest buying in recent days has been by the Dear
interests enormous purchases having peeh maue
by these operators to cover contracts on which
they must have made great profits. OUTSIDE OF this
the market seems to have proven itself to be bar
rem of supporting orders. 1t is not at all evident
that the present inflow of gold will continue IN any
where near its present proportions; the Industrial
condition of the country is daily growing TO greater
tension confidence is not restored, and the cur
rency OF the people is being taken from general
use and boarded in secret places; and, finally re-
lief can hardly be expected from Congress withih
any reasonable time, as pitched battles are hheiy
to result over its organization and the proposiuoh
to repeal the silver-purchasing act Win such d
grist of bear elements TO work upon, ana win no
news DEVELOPMENTS 10 Offset them, 1t is not to be
wondered at that Wednesdays buoyancy proved TO
be evanescent.
The all-engrossing feature Of the money strin-
gency now is the extreme scarcity OF currency
From all over the country there has been such
a continual demand for bills Of small denomination
and New-York has responded freely to the
requests of out of town banks, that now the me-
tropolis itself is suffering from what very ciosei9
approaches currency famine For seVerai ua9
money brokers have been offering premiums Vi
from 81 50 so per 5000 for small biiis-S-o anu
under-and Yesterday the bids were advanced 10
$50 and SIS. Considerable business Is known u
have been done AT these figures One hrm-Hm-
rnerman g. Forshay-admtted that they had bought
currency in large amounts for customers ior u'e
In making up the coming SATURDAY paSioi'e '
where they secured the money they oecHheu "
saw The banks with accord denied that
thew had parted with any funds for premium
One source of supply was suggested IN the large
rs,au stores uptown. whose receipts from day 10
dav are in small bills. Certified checks were or
fered to them in exchange at premiums raheihs
from l to 10 per cent How much was secured III
This manner can only be estimated The daily
receipts at some of these stores must De nsured
In many thousands of dollars.
The demand from country banks for currency was
undated yesterday. but comparatively little money
was shipped. When the need was known TO De urgent
the request was not refused, but the shipments
were generally made in gold and silver The banks
n
for the present situation to the extent that they
have failed 10 take proper measures Of relief and
New-York has been called upon to supply the
whole country To do this the banks mere nave
taken out Clearing House loan certificates 10 the
amount of sS3 Co., the total having been raised
Yesterday by s2soO000 The other cities. notably
Chicago have refused to carry their end OF the
burden New-York has proved more her
financial soundness and strength. but she doesn't
enjoy the inconvenience to which she has been put
The Developments Of the last few days prove con-
clusively the wisdom of the savings bank presi-
dents in deciding to enforce the time clause RUE.
Difficulty in getting currency was what prompted
their action and If the drain from that source mad
not been stopped promptly the situation now would
be vastly worse than II Is.
Some relief is looked for when the gold now afoat
reaches here and more as soon the Controller
of the Currency is able to begin delivering the new
circulation ordered by the National banks.
The savings banks have been hard pressed for
currency for several weeks. The extent OF the
pressure upon them was not realized until the
presidents Unexpectedly determined to put the time
clause into effect Many of them sold United states
bonds to the aggregate probably of $O.O0OWo. IT,
Notwithstanding this course. the savings banks
still cramped for cash. they will sell more
bonds to the National banks, and the latter will
take out circulation proportionately. In sense
this action would be forced as United States bonds
are almost the only marketable security at the
command of the savings barks. Present prices for
the bonds such, however that no bond will be
sold beyond the amount made absolutely neces-
sary by the needs of the banks. The sales OF United
States As to the National banks probably reached
yesterday 100000 at prices varying from 10'l2 to
1851.
There were some small additional orders of gold
for shipment from Europe yesterday, but this I'M
portant cable announcement from London FOL
lowed the withdrawal OF gold previously ordered:
the weekly meeting to-day OF the directors of
the Bank of England it decided 10 advance the rate
Of discount TO cent The advance. which was I'M
ec;ed, Is atr bued 10 the further large Withdrawal
q gold to-day and the probability OF fgcsa shipments On
Friday SATURDAY.
Dispatches from Philadelphia and Boston indi
Gated that the attempt in those cities to secure the
direct importation of gold had failed.
There Is an undoubted tendency in the Street
to foster a belief that Congress will take early
action upon financial matters AS the time for
the opening of the extra session draws near this
belief seems to gain strength. Notwithstanding the
pronounced indications of a struggle that may
lengthen into weeks months. There is a salts
faction taken in the fact that the gold reserve is
again above slOO0OO.Co0 and Secretary Carlise's
vacillating and disastrous course in the spring.
when that reserve was first intrenched upon, is
ment is that when the banks want silver dollars
From the Nassau Bank of Brooklyn, which is a
National depository, comes the requirement that
all payments of duties to the Internal Revenue
Collector Of Brooklyn must be made in cash IN
stead of certified checks
Clearing House for about $4,000 OF this. $4,000
was paid In gold. Exchanges the counter of
currency for gold certificates amounted to $4,000
and 100000 in gold was paid out on checks The
shipments of silver dollars were $1,000
The total dealings on the Stock Exchange yes
terday were 1890 shares. American Sugar Re-
timing Company led the list. The stock opened at
72I. q below Wednesdays close. and sold down
to 6sis touching "a at the other extreme and clos
ing al 7Oil st. Paul sold down heavily under
showing OF decreased earnings closing at 5l7s. from
an opening OF Jrt Chicago Gas showed the widest
variatjons Ii opened at So sold up TO 50, fell to
lSS and closed at 49, Chicago and Northwestern
closing at n: Lackawanna at 1899, closing at
ig: General Electric 49, closing at ~: Lake Shore
AZ 11si. closing at ll2: Missouri Pacific at 224
closing at M: Manhattan at H. closing at 1898.
and Western Union at n, closing at 75ls.