The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-10
High Premium Bid for Gold Coming from
England and Per Cent. offered for Other
Currency by Western Railroads.
First National Bank of Nashville, With
Over 0ne Million Deposits, Closed.
Payment Pledged By Leading Business Men
Pennsylysnia Millionaire in Trouble
Other Business Reverses.
SAILING DOWN THEIR CASH.


New York Bankers increase the Rate of
Loans-The Inflow Of Gold.
NEW YORK, Aug. Q-Tbe national banks
of this city to-day announced that they
had unanimously decided TO increase the
rates on call loans OF recent daie TO y per
cent. per annum, aud on those of long stands
ing 10 10 per cent. The banks say they
raised their rates simply because some OF tha
out of-tOwn bankers. merchants and others
have shown disposition TO lie down ON
their contracts. President j. Edward Sim
mons. of the Fourth National Bank. said:
"The interior banka ed on New York
banks and piled up the money in their
vaults or loaned 10 out at II and Is per cent.
We do not propose to provide them any
Longer with q surplus or with funds Tor
profit making. We put on rate that will
bring back the money where it belongs.
and thus ease the situation in New York"
1t was learned to-day that the cause o.
the New York Central Railroad Company
being suddenly short of the kind OF cash
it wanted to make up its pay roll was
the fact that the Boston * Albany Rail.
road Company made its usual payment to
she Central by checks on Boston banks in
stead of in cash. New York banks arc un-
able to accept checks on Boston as cash,
because they oannoe collect cash for them
or get cash in settlement of collection ac-
counts owing by Boston banks. so the New
YORK Central Railroad Company had to do
what many New York merchants have
been doing for many days with checks on
Boston. Philadelphia aud other nearby
cities-namely, collect the checks them
selves either by express or private messen-
ger as best they could. In Boston. Lass
S.$ rAor for fna rah
as S25 per $1,000 was paid, it Is sald. for
New York exchange. In Philadelphia Sl2
and S15 for Sl,OV0 is being paid for New
York exchange.
of England to-day for shipment TO the
United States amounted TO f495 900. Kuhn.
Loeb IL Co. have 81, 100000 gold In all on
passage from Europe The steamers due
to-day have S4.250.000 on board. As high
as 4 per cent. premium was bid Tor gold
afioat this afternoon. A reliable money
broker to-day stated that he sold SS0. 200
worth of currency for SSl.6OO. Western
railroad companies were In the market for
currency. which was per cent. bid. The
clearing house. and settled in gold coin.
The clearing house committee issued $780,.
600 loan certificates. making the total out
standing $50. 765. 600.
The Evening Post says: "How far the
new supply of money now rolling in upon
New York will immediately ease the situa-
tion is one of the problems of the market
The fortnight beginning with last Satur.
day Will have added to our stock of I'M
ported gold upwards of S20,O00.0O0. Not
less than S10000000 more will come from
new bank circulation. The gold must CON.
tinue to flow In from Europe as long as the
local premium exists; for q bid of / per
ceut. tt should be remembered. offsets q
rise of fully four cents above the par Of
sterling exchange. To-day g.. SOC. 900 more
was engaged IN London. The Bank of
England, to meet the American demand.
is drawing now on the Bank of Frances
gold "a very natural recourse,
since the French bank holds to-day
s69, ,000. 900 more than it's busi ness needs re-
quired two years ago. What then, is TO
become OF this new money when IL reaches
usf lt has not vet perceptbly reached the
loan market. Wall street to-day predicts
that it. too. will be boarded. and that dis
mai prediction may come true in part it
Congress does not act Some of the gold
will certainly 60 into the savings banks;
some TO the interior banking centers.
which. In contradiction OF all previous ex-
ample. are now buying specie BY direct
and personal representatives IN London.
Bat this cannot use the whole imported
stock, and In any case even such disposi-
tIon Of tho money will ease the strain on
tue larger ceDters of capital The import
movement amounts 20 q currency expan~
sion of thirty millions in fortnight"