Omaha daily bee., 1893-07-02
Owing to the Action Of the Clearing House
the Situation is Much Easier.
THE SITUATION, is NOW MUCH EASIER
Prominent Financiers of the Opinion that
the Worst la About over-Money Was
Easily Obtained Yesterday-Loan
Certificates Freely Taken.
rrRoM YESTERDAYS SECOND EDITION.

The situation was reported to be much
easier in consequence of the prompt steps
taken by those banks to avert money panic,
and on every hand nothing but praise was
heard for the action of the presidents of
these banks
This morning a we'll known financier, him
self n director of more than one large ma
tional bank, speaking of the action Of those
banks, to reporter, said: "rhe action of
Messrs. Simmons, Tappen, Cannon, Baker
and Nash yesterday in taking out clearing
house certificates fer their respective banks
is highly commendable. These gentlemen
will probably be criticised by some people
for catering to Wall street, but in times
like the present 1t Is of the utmost impor-
tance that the stock market ana money mar
ket should be kept in normal condition.
For, notwithstanding the cry against the
street. it is the life blood of the whole coun-
try and if it is damned up or the stock ex-
change is closed, as was the case in 1878, it
brings untold disaster upon the country.
The free movement of stocks enables the
banks to resort to their call loans and own
ers OF securities are afforded quick market,
which, in these times, is very desirable"
John a. Stewart president of the United
states Trust company, .said 81 think money
next week will be comparatively easy"
LOANED money Freely.
The banks which took out certificates
freely lent the money thus made available
without decreasing the cash in their vaults
as was shown by their debtor balances at
the clearing house this morning, which, of
course, were paid in loan certificates which
had to be taken by the banks having credit
balances. Those debtor balances were as
follows: Gallatin National bank, s527. 900;
Fourth National bank, SS09, 200; First Ma
tional bank, 81, 500, 600; Chase National bank,
s563, 600; Corn Exchange bank, s27S000.
The two banks, the presidents of which
are members OF the clearing house loan
committee, but who did not join with their
conferees in taking out any loan certificates,
are the Importers and Traders National
bank and the Chemical National bank G. G..
Williams, president Of the last named bank,
said this morning. In explanation for not
doing so, that the Chemical bank was not so
closely connected with Wall street as the
banks which have taken out certificates, al
though it lent money in Wall street and had
perhaps done as much as some other banks
to relieve the monetary stringency. "In
fact" said Mr.. Williams, ''our loans at pres
ent are $4,000 ,O0Q, which is more, 1 think,
than the loans Of any other bank, and is
enough to have out. We have S7,000,000 in
cash and really do not need any certificates.
heartily approved, however, of the action
of those banks which took out certificates
yesterday and votod in favor of it. The re-
suit was undoubtedly, very beneficial"
Loan Certificates Issued.
The banks took out S4,475, 600 of loan GER
tifcates today, the balance of the Sc, ,0OO, 600
authorized yesterday, and in addition to
that the Clearing House committee author
lied 81 100000 more at its meeting today,
which will probably be taken this afternoon,
making the total amount issued to date
afternoon prior TO 2 O'clock was 35 per cent
Many loans. however, were renewed until
next Wednesdayat rates varying from 20 to
25 per cent. One of the banks which took
out loan certificates today bought some
first-class paper at from 10 per cent for
bills receivable to Is per cent for single
name paper, according to time and char
acter. 1t was said that there was not much
commercial paper Offering, ana it was argued
from the fact that merchants were in fairly
good shape.
Bank officers reported that the demands of
the country were much lighter in amount,
but the applications were very generally dis
tributed 1t was noticed that only very
short time paper was being received and
that was believed to indicate that the strain
was about to end.
No extraordinary shipments of currency to
the country were reported this afternoon by
the banks, and at the subtreasury it was
said there had been no telegraphic transfers
of money to the country. About $500, 900 in
notes of small denominations had been ex-
changed for gold, Of which only $4,000 were
for the country
Increase of Confidence.
The feeling of confidence here was in
creased by the quotations from London,
where all American securities were higher
Despite this indication Of confidence across
the water in this country's securities Great
Britain seemed determined to hold on to her
gold. Efforts of local firms to secure any
quantity of it have 80 far been unsuccessful
The result of attempts of Kuhn, Loeb & Co.
in this direction are typical of the situation.
There was report that the firm had in
tended taking $1,000, 600 of loan certificates
and investing the amount in British bullion
for transfer to America. In part the report
is correct, but only to the extent of the en-
deavor of the house to get gold abroad.
MIR: Jacobs Schieff of the firm explained it
in this way: 1--WE do want to get gold from
the London market, but we have been trying
to buy on our own account. We have not at
tempted to get any Of the loan certificates
But for some time past we have tried to
purchase gold IN London. or course, we do
not go direct to the Bank of England, but to
our customers. We cannot get American
bar gold, as it is not to be had in the market
to any extent just at present, at least. We
can get English sovereigns but do not care
to take the gold in that form, owing to the
exchange. IL is quito true that we so far
have been unable To buy over there what
gold we w,snt."
Effect of Clevelands Proclamation.
President Cleveland's action In calling an
extra session of congress for August z, next,
thirty days ahead of the time generally
expected, was n decided surprise ia financial
circles. At first the report was not credited
for the reason that ever since the crisis in
silver and the money market there have
been almost hourly rumors about an extra
session. The reports have been denied time
and time again, and Wall street became so
set in it's opinion, that even when it was
definitely announced late in the day that
the call had been issued the correctness of
the advice was questioned. When, finally,
bankers and stockoperators were con vinced,
there was decided feeling of relief, and the
concensus of opinion was that the tendency
OF financial ana commercial affairs would
henceforth be in the direction Of improve
ment. i9h
GA special meeting OF the Chamber of Com
merce las been called for | o'clock next
Thursday to demand the repeal OF the Sher-
man silver purchase law.
A Washington Especial to a news agency
here says: Senator Voorhees, chairman of
the senate finance committee. saw the presi-
dent yesterday and In discussing the silver
situation later said:' II am in favor of the
immediate repeal of the purchase clause of
the Sherman act i do not say anything
about conditions being attached TO the re-
peal, The matter of conditions Is something
to be taken up afterwards. / have not
abandoned my belief in the use OF silver as
money. l never was in favor of the bullion
purchase clause of the Sherman act. con-
slider it fraudulent and deceptive legislation,
which simply reduces silver to q commodity
a T.. l. H. -