New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-02
FOR LARGER CIRCULATION.
NATIONAL BANKS ACTING.
SAVINGS INSTITUTIONS MAY SELL GOVERN
MENT BONDS TO THEM.
FULLY EIGHT MILLIONS OF GOLD COMING FRox
ABROAD AND MORE IN sIGHT-wALL STREET
IN MORE COMFORTABLE MOOD
STOCKS GO UPwARD-FEATURES
OF THE SITUATION.


STOCKS GO UPwARD-FEATUREs
OF THE SITUATION.
The low price at which Government bonds arc
selling has led a number of National banks
in this city TO take action looking toward a sub
stantia increase in the amount OF their circula-
tion. 1t is estimated that within the next few
weeks the currency supply of New-York City alone
will gain Ss,000,000 or $4,000, 900 in this man
ner, and as National banks in ether parts Of the
country are said to be contemplating similar ac-
tion, it is more than probable that considerable
expansion Of the ready money supply will follow
as direct result of the recent forced liquidation
of Government securities by The savings banks
and other holders. In fact, the movement In
that direction has already reached good proper
tions. The total amount of National bank notes
outstanding July 81 was 81 SO, ,655,920. show
ing an increase of S5,O4l 1886 for the month.
or the New-York banks which are preparing 10
take advantage of the present opportunity to
make ISSUES Of notes, several have already
placed their orders with the Controller Of the
Currency, and some have bought part of their
bonds The Fourth National will take ont $2,-
900, 900, the Gallatin National 100000 or $780,
900, the Bank Of New-YOrk at least 100000,
and the rest will probably be distributed among
tho First National, the Merchants National, the
American Exchange National, the National Park
and several other of the more heavily capitalized
institutions. The order for the engraving Of the
So 900. 600 which the Fourth National will issue
given about a week ago Other orders have
been sent TO Washington since then. three Of
5000, 900 each reaching there yesterday. and moro
probably will 90 to-day Ordinarily it takes month
or six weeks for the Bureau of Printing and En-
craving to deliver new bills, but the Treasury
Department, in view of the gravity Of the present
situation, is expected to make special efforts 10
expedite all orders for circulation, that the
needed relief may be furnished soon as possible
The National banks expect to get the bonds
they need for security largely from the savings
banks. The latter are understood to be anxious
in spite of the fact that the time rule has been
put into force to Increase their currency supply.
They are required by law to invest at least 90
per cent Of their deposits in certain prescribed
classes Of securities. As matter OF fact they do
not in times of financial quiet need all Of the
remaining o per cent for current Use, and their
investments often run high as 95 or 96 per
cent of the deposits. That was the when
the present stringency began. The steady drain
Of the last few weeks has depleted their
cash reserve that. in order TO make Themselves
perfectly safe and 10 satisfy their depositors that
all the money needed is held in hand, they are
willing to dispose Of $1o,O00,000 or $l2,000,000
Of Government bonds Negotiations have. there
! fore been started, and are now under way, by
which the National banks hope to be able to
secure this block of bonds at figure fair to
both
United States 4s are quoted at 0sa1 90.
At this price the National banks figure that they
can issue notes at net profit of about per
sl,o or1 bt.Nr tt,, kNp
at the market price, and the savings banks would
realize more from the sale than they could hope
to get if the National banks should buy their
bonds elsewhere. For if that should be done
the savings banks would be forced To dispose Of
their holdings in the open market, which is
narrowly limitci and prices might be forced
far below their present level. TIE a savings
banks of the State, according to the last report,
held ~ O9.375,46 in United States bonds. mostly
Is There are twentyi five savings banks in this
city, and large number in Brooklyn: so IL IS
probable that not less than S75 200, 900 of bonds
are held right here in the metropolitan district.
The savings banks acquired these bonds at prices
ranging all the way from below par to 1870. at
which some purchases were made in 1883 In case
the savings banks decide not TO sell, there IS
still wide market left for the National
banks to buy in owing to the forced liquidation
of failed banks all over the country.
A CIRCULAR SENT TO NATIONAL BANKS.
Harvey Fisk x Sons who make speciality OF
Government bonds, yesterday issued circular to
National bank officers, in which they called at
tention 10 the present situation follows:
The ca,ita Of the combined National banks is about
$3.50 600 900 ctitng issue circulating notes
~ TO say s6l7 600 o00. The total circulation now OUT
standing bas OH United bonds is about Sl62..
oCO0oo IS for increase Of over s4oo ooo'
h.
TO the exceptional times large amounts OF bonds can bs
Oh tanned reasonable prices Oh account OF sales whch
being made fom day 10 dav b. savings banks ana
others who have held Governments reserve and now
need utilize such At present prices the Ma
tiona realize the money invested In takns
circulation a pioht OF about 13 per cent per anir
besides furnishing the currency TO supply tho UNUSUAL
needs OF the hour
II when the present scare and strain Il the cur.
rency becomes redundant circulation be retired
bonds resod at handsome proht TO he very in'
sttution> which now forced sellers mus Tile o"N
perform service by increasing circulauoh' reoe'
reward in shape large profits aud demonstrate |"
the public that properly secured bank currency ~
best which a country have, because IL eNpau ""s"
needed and contracts when 1t is not neeieu 'aa y"
in the latter case remaining In circulation 10 I ~
foolish speculation, which ha>tch' anu H'o'''"
such a. passing through
THE FEELING IN WALL STREET
Jboro WAS -. decidedly better feeling in Wall
Street Yesterday than has been mahiies"" i'i
many DAYS Conservative observers, win roh-
siderable show Of agreement declared that they
could ~ last find some grounds for hope that the
worst of the present financial stress had neen seen
In RESPONSE TO the general sentiment the STOCK
market opened buoyanty. Prices almost '"Nar'a-
blv showed advances from Monday CLOSE anu III
many eases the first quotations were from Pf
cont TO 3 per cent up. II was not uhtil news Oh
A. III, f,iIurcs ON the Chieago Board Of Trade
',a. raceive1 that the upward tendency was ef-
,oo,;velv checked Even then the reaction was
49,. sufcient 10 carry prices far enough down to
,,ro,,ent showing of comfortable net gains for
the day.