The morning call., 1893-07-06
Monetary Situation Not
Improved.
GOLD is BEING HOARDED.
Indications That the Banks and Trust
Companies Are Locking 1t up
in Their Vaults.
Special to THE MORNING CALL.

business failure. have by no means
brought imp ortant relief to the monetary
situation. Usually the fourth day alter
the July dividend period brings complete
relaxation in financial circles, but bankers
to-day were reluctantly compelled to ad-
NIT that there had been little improve
ment in the monetary strain. The ex-
treme tension Of course is relaxed and the
situation does not present the acute phase
which last week was relieved only by the
action of the leading downtown banks;
but distrust and uncertainty still appear
to pervade the money markets.
The market for commercial paper con-
tinues restricted aud the mercantile CON-
munity obtains accommodation only at
considerable cost. There is great
scarcity of currency in the city. The
banks to-day exchanged S450.000 Of large
bills for small notes at the treasury in
order to supply savings banks with cur
rency to be used in payment of the July
interest on deposits.
Part OF the scarcity in currency is due to
immense sums which have been locked up
by the savings banks and the trust CON-
panies. The savings banks must be pre-
pared TO meet payments of interest through
this month, and the stringency of funds
last week warned them to hold their re-
sources well in hand to meet their ordinary
requirements.
The trust companies are holding heavy
amounts Of money, owing to the prevail
ing distrust, for fear that they might D OF
be able to obtain money from the banks
in any possible emergency.
Sn ihop inc n 6jotp
it is ficult to see how there can be relief
from this state of affairs. and disappoint-
ment is felt that the situation does not re-
fleet more of a return of confidence, now
that the 1st of July has been turned with
out confessions of insolvency.
TIE banks here took out only $780, 900 of
clearinghouse loan certificates to-day,
raising the total issue to S22,115,0OO The
existence of this immense volume of out
standing certificates causes a scarcity of
currency between banks. and this will
continue until the amount begins to
diminish. A reduction in the volume may
not be accomplished, however, without
calling in loans on collaterals, and in
the present state of the market, the banks
are reluctant to force sac ifice. A lQuida-
ton is not likely to be attempted until
some circumstance increases the market
demand.
1t is fortunate that the call for funds
from the interior has virtually creased.
An encouraging fact was the absence of
demand at the SUBJ treasury yesterday for
telegraphic transfers at San Francisco.
The bears in the stock market have ap-
parently begun TO renew their insinuatons
as to the financial standing of prominent
persons in order to influence foreign tenn
per- The weakness In American stocks in
London was said to be due to cable dis
patches sent from this side reporting that
a certain railroad capitalist who is ldenti-
fed with Pacific Coast enterprises had be-
come entangled on account of inability to
renew loans. One London dispatch to
New York paper mentioned the name of
Huntington.
In regard to these reports Huntington
has made an emphatic denial of their truth,
as far as they were supposed to concern
himself, personally. or the Southern Pacific
system. With regard to the rumOr that
the Central Pacific would pass it's August
dividend, Huntington said: THE COM
pany's intention is to pay the August
dividend, and the rumor is merely stock
jobbing story"
Merchants feel much interest is being
manifested in sthe special meeting Of
the Chamber of Commerce called for to-
morrow. The members who have been
most actively urging the chamber to take
a strong stand on the monetary question
were busy to-day bringing together men
who represent the sectional interests Of
the various parts of the nation.
Late Monday afternoon orders were re-
ceived by telegraph for large amounts of
currency from Boston, Baltimore, Phila-
delphia and Pittsburg
A dispatch from Philadelphia to-day re-
ported the refusal of a bank there to pay
a check on it for S15O,OOO in cash. The
holder of the check. 1t is said, will insist
on the check being paid In cash.
One of the most influen ntial members Of
the Clearinghouse said this afternoon: 'It
is all nonsense. this talk about an actual
scarcity OF currency; but if everybody
keeps on talking about it it will soon be
on. The banks have got plenty of cash,
but they are attempting to hoard their
gold"
Orders for currency by mail this morn
ing we're reported 10 % llgnt, Dut 1t is said
that in view of Mondays experience, the
amount could not be estimated.
The president of one of the large ma
tional banks, in speaking of the scarcity of
currency, said that a large amount of cur
rency is locked up in the vaults of the
trust companies. He knew one trust COM
pany that had S3.0oO.0O0 of currency locked
| up in that way.
At the Sub-Treasury to-day it was said
there had been no telegraphic transfer OF
| money, but that $500, 900 in small notes had
been exchanged for large ones. The
scarcity of currency in the banks, it was
said, is recognized and everything is being
done by the Treasury officials to relieve
the strain. The Sub-Trea sury in this city
has at present only $1S.0O0.O COO Of currency
| in hand, but it can draw for two or three
millions more from Washington it occa-
sion requires.
The clearing g-house loan committee is
sued $500, 900 more of certificates to-day,
thus making the total amount now issued
$22. 49, 900.
Three hundred and thirty thousand
| ounces OF silver will 20 out by steamer to-