The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-05
One Per Cent. Premium offered by Broker
age Concern for the Fellow Metal and 1la
to 2l2 Per Cent. for Paper Money.
All Sorts of Schemes Worked TO Secure
Bills from the Unwilling Bankers.
Brsdstreets Review Of Financial and Com.
mercial COnditions-The Treasury Ready to
Supply ALI the Small Currency Wanted.



Commanding q Higher Premium than Gold
BANKERS Holding On to Their Cash.
NEW YORK, Aug. 4.-Deposltors in banks
are using every possible dovioe TO secure
bills to seil to brokers at q premium. The
banks ars refusing to cash checks unless
they arc well satisfied there 10 . necessity
for the use of currency. The president OF
q leading natloual bank COM PLAINS that the
banks are being treated unfairly. Some
people have been selling their currency at
@ premium and to-day were presenting
checks to obtain the currency for their p0y-
roll use tomorrow. The demands from the
interior are still very heavy. but are gen.
orally refused. although the banks are held
to be supplying every legitimate demand
both In and out of sown. They are send
ing about s75,O0O daily to small manu-
featuring towns. In New England the
manufacturing concerns are distressed by
the want of currency with which to pay off
their employees.
The subtreasury to. day refused to pay
out silver dollars on tho presentation of .
number of thousand dollar greenbacks.
The full limit of silver certificates has
been issued aRainss the silver dollars
coined according to law. and only silver
certificates or treasury notes Will now be
redeemed in silver on demand.
The scarcity of currency has led to q
peculiar condition of affairs In Wall street
To-day money brokerage concern at one
and the same time was offering per cent.
premium for gold. and La to 2ls premi0m
for currency. SO that the usually discred-
tied money was worth moro than the yell
low metal
Money on call was quoted at 405 per
cent. and, up to late hour. Stock
Exchange borrowers had no difficulty
figures named. There is no time
money. nor is there anything dong
in mercantile paper. The loan committee
of the clearing house to-day issued 81. SOC, ,000
standing S34. 4.5oO. 600. The subtreasury was
$4,000 debtor at the clearing house. and
paid IN treasury notes. Indications point
to q very light movement OF currency from
this center to-day. Bills still command
slight premium.
The market for sterling exchange was
barely steady on restricted business. The
demand from gold i'm mporters has fallen off.
Commercial bills were more plentiful. on
account OF the comparatively high rates.
Posted quotations are unchanged. at 81. .6l15
S4.o5.
1t was learned to-day that all the gold
now on Its way to this country will not 60
! direct into the vaults of the national banks.
premium while In transit for the use of
some savings banks. How much in all
could not be learned, but a reporter found
that one purchase amounted to 81. 500, 000.
A Chicago dispatch in tho Herald to-day
stated that bankers of that city had been
much annoyed. not to say embarrassed. by
the fact that bankers of New York have
perslstently refused to honvr drafts with
cash." The dispatch then proceeded to
state that New Workers offered clearing
house certificates in payment of such
drafts, and that ID. III. Tolman, president
of the Chicago Trust and Savings Bank,
sent check to New York yesterday for
S25 600 on the Western National Bank for
collection by express in cash. that bank.
according to Mr.. Tolman. having. in re-
sponse TO Q telegram asking for cash re-
mittance. offered payment In clearing
house certificates. Bray ton Ives. president
of the Western National Bank, when asked
about this to-day, eaid: With reference to
the statement attributed to MIR. Tolman
that we told him we would send him clear
ing-house certificates. can only say that
1t is incorrect The telegram which was
sent TO him read as follows:
The general situation here does not warrant
compliance with the request contained in your
telegram OF this date. Your deposits are in
clearing g-house funds and we are receiving
clearing g-house certificates in payment of bal
anees.
THAT telegram" added Mr.. Ives, "is
word for word like those sent several days
ago to the First National Bank of Chicago
by the First National, the Fourth Ma tional,
the Chase National and the CITY National
banks of this city, and was sent only after
consultation with the officers Of
some of these banks. In other words, the
position taken by tho Western National
Bank on this matter 10 precisely that of all
leading banks In this city. As to the state.
ment which Mr. Tolman ls reported to have
made. that he has sent draft on US for
$4,000, to be collected by express. con.
slider myself justified in saying that the
Chicago Trust and Savings Bank. of which
Mr. Tolman is president, has not and has
never had S25. 600 of it's own money with
us. The balances have always been small,
and it is . borrower from us q greater
part of the time since the account was
opened, can only say that If draft was
presented by the Chicago Trust and Saw
ings Bank for money which 1t has on de-
posit with US il will be paid in cash if it is
entitled to cash."