St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-08-02

EOnS Oh currency W III Asc %4sANAGG
80 New Xork's supDEy-44ight
billions OF Gold 3hoat From
Europe for America.
New YORK. aug. IA new and un-
expected element of relief has been
injected into the financial situation.
United States bonds have reached such I
/ a low figure that the national banks see
their way clear to make DrUiis Dy
issuing circulation against them. Ar
/ rangements have therefore been made
by several OF the more prominent
! banks to increase their circulation
fr0m the minimum limits, at
which it now stands. to such
an amount as VIII materially relieve
the present tension. 10 is estimated
that s., coo, 600 or SlU, 100000 will be 50
added to New YOrk's supply of eur
rency within very short time. Orders
nave already been placed with the con-
trOlieT OF the currency for part of the
new bills, and some OF the banks have
bought their bonds preparatory to de-
pOSIUiug them IN Washington. Among
the banks that are named as interested
III the movement are the GalldlIn,
Fourth, Merchants. First. New IorK
anu Park.
The Fourth National has already or
dered 81, U00, 900 bills engraved, and the
GalIatin about SSOO.0OO The latter
bank has purchased S55O,O00 Of the
bonds, aud the Bank of New York
S30O.00O. The rest OF the amount viii
be maize uD among the oJner BANKS
named. Negotiations are reported to De
under way between the savings banks
and the national banks for the transfer
OF a large DIock Of government fours Tor
Use as Security
for the new circulation. The saviu gs
banks are nOt allowed, ordinarily, o
carry over 10 per cent OF their assets in
cash. As matter OF tact they generally
carry much smaller percentage. So. III
! spite OF the fact tnat they nave been
accumulating cash lately they are prO0-
! ably still below the 10 per cent limit al
/ lowed them. 1t is thought they would
/ rather dispose of large block 0f securi-
! Iides now and have the cash in hand
/ than wait unul the cash is actually
needed. in case it ever Is. and then nave
J to sacrifice their holdings for what they
would bring
Ine currency movement today was
lighter than il mas been EOT some time,
being estimated at less than SIJO,U 600.
/ The sub-treasury was a creditor at tie
clearing house tor SlO5,0OO. about half
OF which was paid in gold. Exchanges
over the counter at the sub-ueasury
were about S4UJ, COZ. Including $50, ,0UU IN
silver. Gold was paid out to the amount
OF S3OO,OJ0, and S5O.OOU was received
from san francisco by telegraph. The
/ issue OF loan certificates was increased
SI.475, 900, raising the totalt S2J. 10000
Today's issue was for the purpose of
facilitating he gold imports.
The shipment of gold from England
for New York by today's steamers
reached $50 pounds. Part of this was
in eagles and double eagles, and viii
probably return in the very kegs, with
seal UnbrOken.
in which they were shipped to London
during our recent specie export move
menU-
Arrangements were also reported to
have been made at Chicago for the I'M
port OF S5OO.OOO gold direct by the First
National Bank OF Chicago, S250,OOO by
the Bank OF Nova Scotia in that city,
and s5OOOJO by the Illinois Trust and
Savings institution, this gold being en-
gagged against the forwarding of wheat
an0 produce to England, the machinery
OF the operation being similar to that
employed by the New York banks IN
their Import of gold against transfer OF
American securities TO London. The
total gold now afOat from Europe for
America. most OF it due here within
week. is between S7,OOO.UOO and S.
OOO.OOO.
ABOUT the only difficulty the banks
now have to contend with. it is said, is
the great scarcity OF currency. The
clearing house loan committee issued
81, ,275.UO0 more loan certificates today,
making the total amount now Outstand-
ing S24, 25O. 600.
1t was said that the loan certificates
issued today practically represent gold
that has been ordered from London, as
they were taken out by one of the large
banks which lent money to some OF the
gold importing houses to buy foreign
exchange. II Is not believed that the
total amount OF certificates will be much
increased after today. The first heavy
importations of gold will arrive this
week, after which it is expected there
will be a considerable easing up in the
situation as consequence thereof. -
Among bankers here but little sur
prise was expressed at the condition of
affairs in Chicago. Chicago, it was de-
clared. had no right to call on New
York for currency; it never sent New
York any cash. and the only balances it
had here it needed for its current busi-
ness, and those balances, it was added,
were now very small.
Harvey Fish q Sons. who make a
speciality of government bonds. today
sent a circular to national bank officers
urging the Importance of enlarging the
circulation. They said: There is
room for an increase OF over
800, 100000, provided the bonds
can be secured for deposit.
The banks can perform a service
by increasing circulation. receive a re-
ward in the shape OF large profits, and
demonstrate to the public that a prop
erIy secured bank currency is the best
which a country can have, because il
expands when needed and contracts
when not needed, instead of in the lat
ter case, remaining in circulation to in
duce foolish speeulatiOns which hastenz
and intensIties panics such as we are
now passing through.
The United States bond issue now
available for circulation deposits in
cludes S25.364, 800 in tue A. per cent
bond extended as twos and S559, ,G04, 100
in the fOurs, which run out in 1907. II
is this last issue which is now going to
: Washington, and against which rush
! orders are going through the govern
! ment bureau OF engraving.
July Coinage.