Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1893-07-15
EASIER CONDITION.
New York Bankers See Consider.
able Improvement.
SUB-TREASURY PRACTICES CHANGED.
How Banks Work TO Secure Currency
Country institutions Loan Money
Exchange ON Philadel-
phia.

NEW YORK, July l3.-Notwltnstand-
ing the furry in the stock market bank
presidents and others occupying posi-
tions familiarizing them with current
conditions unanimously agree that the
general situation has improved and
continues 10 do so. There was nothing
in the financial situation Of the coun-
try to produce such an unsettling. At
several of the larger banks it was said
that considerable i.ounts of currency
have been received. One large Broad
way bank received S5O0,0 in currency
and gold from the country.
AS an indication of the. easier condi-
ton prevailing it was reported that
many country banks were renting
currency here and getting back some OF
their bills receivable. which they had
discounted here three or four weeks
ago, taking advantage, OF course, OF
the rebate in the discount for the I'M
expired time. At all the large banks
it was said that the demands from out
of town customers for accommodation
were lighter than they had been for
weeks. Many of the large uptown
banks reported that they had
all the currency they wanted, and
the president of one well known insti-
tuition said that he had refused an offer
of 100000 of currency in return for
clearing house certificates. The offer
of some banks to pay the express
charges on currency from the country
has had very stimulating effect on
shipments to this city. 1t is said that
"a large down town bank adopted the
plan some days in advance of the other
banks and filled its vaults before they
learned of the circular 1t sent out of
fering to pay express charges. 1t made
good use. however, of its stock of cur
rency by helping out the clearing house
in the payment of the balance due to
the sub-treasury during the past week.
The sub-trcasury was debtor for sew
eral hundred thousands of dollars to
the clearing house for the first time in
the last week. which showed that the
steps taken by the sub-treasury officials
to compel the bankers to present
their government checks for the pay
ment through the clearing house. in
stead of over the treasury counter for
cash, had the desired effect. Ii is
thought that an unofficial intimation
by the clearing house committee that
if the practice of certain banks or
presenting government checks direct
at the sub-trcasury for payment were
not stopped other and more vigorous
steps would he taken for that purpose,
proved to be more efficacious than the
sub-treasurer's payment of the checks
in gold. Aside from the trouble OF
counting the gold and carrying it back
to the banks. and the fact that cur
rency was more urgently needed. 1t is
believed that the banks were by no
means aversc to receiving the gold in
payment of their checks. But they did
not care to run the risk of having sew
eral of the big banks collect items on
them and present them over their
counters for cash. hence return on
the part of all the offending banks to
the custom of presenting their govern
ment checks through the clearing house
in the ordinary way.
Two or three cases were reported OF
country banks, mostly in Pennsylvania,
coming into this market as buyers OF
commercial paper in a small way,
tempted thereto by the high rates and
the fact that they had tho money to
their credit with their New York agents.
The amount of such purchases in the
aggregate is not large, but it is be-
lieved to indicate an easier NONE
tary condition in certain sections
of the country. The New York
banks, through whom these transac.
tions were contaminated, reported
them gladly, although it meant de-
crease in their own deposits. Note
brokers reported some buying of com.
mercial paper by three or. four of the
large banks, but not to any great ex-
tent. The banks, outside of one or
two well-known leaders IN that class of
business, are still mostly combining
their dealings to their own customers.
The condition of the banks in Phila-
.delphia was reported to be practically
unchanged. and New York exchange is
only obtainable in that city at n high
premium, averaging about sa.5e per
81 900. Some of the Philadelphia
banks have reduced their indebted
ness to their correspondents in
this city, in some cases between %
and so per cent, but their debtor
balances are still very large. The
New York banks however, are treating
them very leniently, and not pressing
them unduly for payment. But the
New York merchants are suffering be
cause of their inability to collect drafts
ON Philadelphia except after great de
lay. Some Of the largest banks in thi;
city are only receiving drafts on Phila'
.delphia for collection, and it take
many days to get back the money foi
them.