New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-18
TIGHT CALL MONEY FEARED.
SHIPMENTS TO THE INTERIOR CONTINUE.
OTHER REASONS FOR HIGHER RATEs-THE BANK
STATEMENT SHOWS \ HEAVY Loss IN CASH

-CLEA III NJ HOUSE CERTlflN AlI''
II was Impossible Yesterday to obtain Information
from tho Loan Committee Of the Clearing House
Association respecting the issue OF Clearing House
loan certificates, decided upon Thursday The
secrecy preserved 10y the committee leaves room ior
considerable conjecture Which freely INDUCED In
II WIS rmOrci that large Issue Of certificates had
been made, but this may be incorrect IN view oi
the necessary formal prcmina!cs. The carrying out
81 the plan involves meetings Of the boaris "i
directors Of the several banks TO authorize the
officers to plcdc" securities on any poSSibl" Clearing
House loans. and also 10 accept the regulation winch
requires each bank In the association according 10
It's capital and surplus, bear pro rata any loss
arising from the issue OF certificates In the history
Of the banks losses have arisen from the
nse Of these certificates. but II is required pre-
caulionary measure that tho banks shall agrc" 10
accept possible losses on the loans made by The com
Tined institutions 70 any Of their number. Mum
bcrs Of the banks have already had meeting Of
directors Ia comply with the Necessary prrimnarles,
but the list will not be complete until tomorrow.
II Is generally believed IN wclllnform"i circles.
however that applications for certificates already
before the Loan Committee. ana large issue OF Ger
1hatcs /, expected early Til, week. II was suS
INctcd that temporary advances were made in some
Instances yesterday pending the completion OF for
maiiics precedent To the actual delivery of ccrtih
CATS; but Information Ills point not avail
able. The character Of yesterdays bank statement
~ averages was SuCh Is 10 furnish ClrcuW iINtli
evidence that the of certificates needed In
some Wstantcs No statement in detail Issued
80 that full protection afforded TO any single
lank which desired Clearing House credits. III II,
totals the bank exhibit was fully uniavorabc ~
Bal been looked for. There II decrease In d."
posts Of Sl2;Is3.3Oo and II loss Ia cash Of f-,7iI.
400. The loans curailcd only 1892 500. but
the reduction in ID" surplus reserve WIS S36i4lo2
The loans now amount to $-ilO.7OO.lOO and the de-
iu.ifS To itN 80. OF loans
deposits of <i.16i.ODO. This time a year the
leans aggregated Gi9650I 900 and the deposits ejj.
cG3lOO an excess of deposits loan, Of 81 0JJ,
100. Yesterdays statement showed the average
holdings Of the banks in legal money To be $l1Oilo,
800 and the surplu, to b. So.776-oo. against
rlJo ,G9g,GOO IN cash and surplus reserve Of
80 ,7-3-25 year ago.
The bank statement was generally accepted IN
financial circles forc,hadowlng higher call money
market this week. Whichever the loans rise above
the deposits a contraction 10y the bank, is dictated
10y prudence although at til, lunclurc 81 affairs Tie
banks determined To- pursue liberal policy rs
possible consislcn: with safety. Tho issue Of Clear
ing House loan certificates will help to restrict III"
effects Of what contraction in loans TO outside In
tercstS may Necessary among IN" banks. That
further srinccncy I'm money must unhappil". be con
lrontcd IS indicated 10y TIE approach ~ the prep
arations for the usual payments Of dividends and in
tcrcst In July.
Til influence Will be- temporary. because the money
collected 10y corporation fer Til, purpo,. viii In dur
course flow back to ordinary channels. But lie
shifting OF loans required for tue prpIra'ions Tor pay
mcut viii temporarily create a sharp demand In the
market.
y more abiding infu"nc" on money rates. how
W. may De- ,Ar con,lngano. Of tlc interior demand
Tor currency. Yesterday, shipments a-ain w'r- on
an important scale. indicating that It may not he sai"
to rely upon early cessation # Ia" drain upon til,
IA. nt,d 10
ob-crvcrs AT than $1,000 900. and estimates
carried the figures to - 100000. considerable de
niand has from Detroit. YAc-c tir SAVING, banks.
10y reason Of the recent runs in taat city, which were
checked only by the enforcement 81 The time motto"
Of sixty days have been led to sell maly sccuri'ic,
In order to strengthen thor cash resources Ad,cc,
from Michigan yesterday showed tia, la.sc ,a,.;-,
bank IN Mu,Hccor had adopted ninety DAYS 'inc
notice check tie withdrawal 81 d,los.t>. wa and
1c.as we've among the states vlic. reported hank
failure, caused 10y DE monetary pe-snr".
BANNER, ""rc eraiihcd yesterday 10y The receipt
u more cheerful advice, from 'h,ngo which -i,hc
= an improved situation 10 that centre and gave In
Gicalion, Of Improvement elsewhere. pn the other
band. there were numerous order, received lat for
tn" shipment Of funds, and. Do t" ,".' 81 iHlny {"
them. tn" shipments had T." l~ d"ierr'd unil to-
morrow. Another cause contributing {" Oh. fear ~
.ghcr money ~ the large Amount 81 conm'rcih !
PAPER maturing next m"n'h, Tor ~"i'h aiI'"H' r.
bank, extending tlc utmost p,sil" facilities To
regular customers. ana ar" 'Nacinf merely I'D" I"i1
rate 81 interest. but to enable th, assistance" Ia m
given 20 merchants the stock ENcaane" community |
Viii probably hc called upon 10 make Sacrifices.
The foreign eNcAaus', ."uiiuuc =" 10" d'in"rilIed
~ rir Aisi rate, already prevailing IN Wall oir'i. |
Int y.sicriay'S hu-in"--. is u,I1l "n the tali-
holiday. was light FOREIGN bankers di,credit The |
iGra now l-ng cultivated in .I"'nlatvr circles. Of
possibility III early imports of gold. II !, polluted
pui that W!4l. there has lc'u Improvement II |
the exports Of merchandise. and som" dimnution ia
mly,r~. the changes lro too neisuicIni materially |
10 affect the lars" ".i-fin- adycI-r trad" balance.
The European demand for American securities ha, |
practically ceased. and 81" recent Iurcha-oS ar" b. |
ry.d 10 have been principally speculative. Dis
rli.t of currency and political condition, !, siiH IN
Heated hy tn attitude ~ lnv.,tor- abroad. ON" |
u the largest house; IN Wall street dealing extensively
IN foreign exchange said IN II, weekly review Issued
10 customers:
Yesterday the market was 50 unSctt'i and d"noia f1h
that REGULAR quotations became impossible. lN,hanl"
almost uii-I1h" brrau~H dealer could no. D. H.
luc,G par with tAc lh.y fof the rufp ~ hufhg
,changc when they could Loan 1t at l'a-o pr cent
WIN. unwilling t. bus. banker were r,1if t. accept
Utmost any bids for their own bill. To r'ah'r ihr
.re.t II r1t'- upon our "NchdnG MARKER 81
is but necessary to remember that 10 pr cont per
luuum 20 mOncy nquiya Ont - cirl pr I y week
banker can therefor. anosd o. ORA" a. - ~ Hni with
ne rcrianty ~ having {" luy II ba * In Tn n1V' ~
- IN make a good profit In" natural position {"
xrhance lutrinsi ally strong Grain nnd clth g..
atioulh rather lnrrr ia volume ~ la" nay. = ~
with this We ~ de- Ilnc. Inc i' ilnr J.
iuo simply the money ~rnecncy ms onrc removed,