The morning call., 1893-06-16
Issuing Clearing = House
Certificates.
HOW TO MEET THE STRAIN.
Collateral That Cannot Otherwise Be
Employed VIII Be Put Into
the Service.
Special TO THE MORNING CALL

NEW YORK, June 15.-In view Of the
serious drain upon the banks here, caused
by demands from the interior, the clear
ing-house committee proposes that every
clearinghouse center in the country issue
clearing house certificates, which would
make available for use between the banks
vast amount of perfectly good assets,
which are now uncurrent In the opinion
of sagacious and conservative bank officers
in this city, this would be a long step to-
ward the restoration of confidence.
The last time that clearinghouse loan
certificates were taken out was during the
Barring trouble. when the example of the
New York banks was followed by Boston
anG Philadelphia. This course would viz
tually make each clearinghouse group a
single bank of discount. and would dis
tribute the burden of accommodations
more equally than at present. enabling in
stitutions short of cash to obtain 1t from
th cir neighbors without attracting atten-
ton or creating distrust.
The general meeting of the clearing
house began at noon. President Williams
of the clearinghouse committee said {:
"The action of the committee, as far as
taken, has been largely with the view of
giving tone to the country IL is likely to
be followed by the other centers. The
citadel is all right, but it wants to
strengthen its outposts."
The meeting adopted a resolution to ap-
point committee to receive from men,
bers of the association securities to be ap-
proved by said committee, who shall be
authorized to issue therefor loan certif-
Gates bearing per cent interest per an
nun. These certificates will be received
and paid in settlement of balances at the
clearing house. No certificates have yet
been apnled for, but the loan committee
will meet tomorrow to receive app1ca-
tiops.
Speaking of the monetary stringency
and the shipment of large amounts of cur
rency, particularly to the West and North
west, the president Of One of the large
national banks said this morning: "The
demands from the country banks for re-
discounts are larger at present than at any
time in my long experience, and particu-
larly from banks in the West and North
west. The demand is general. however,
and extends from the Pacific to the Allan
tic. 1t set in" he said. NEARLY three
months ago, and had gradually increased
until it assumed the present large proper
tions. As, however, the banks asking
for rediscounts this week were sending in
their shortest-time paper-paper maturing
In month or six weeks-that was regarded
as an indication that the country bankers
did not expect the demand to last much
longer, and it was, therefore, hoped it had
reached its height The demands from
the South were only such as are expected
this time of the year and are not unusually
large"
Secretary Morton, according to the Posts
Washington correspondent, since his re-
turn from the West, has urged upon Secre-
tary Carlisle the expediency of selling a
lot of our store of pig silver for what we
can get for it and turning the proceeds
into the treasury. Carlisle responds that
there is no law under which he could make
such sales.
1t has been suggested, therefore that he
treat the stuff as other worthless and cum
bersome truck is treated in the depart
ments. appoint board to condemn it as
no longer of use to the Government, and
then call in the auctioneer.