The sun., 1893-06-30
BANKS COME TO THE RESCUE.
FIVE OF THEM THROW $4,000, 600 INTO
THE CALL LOAN MARKET

Tho Strain Upon Wall Street IL Relaxed.
and Seeuritie. Improve as Money Goes
Down-The Shifting OF Loans Mt the End
orthe Hair Year Largely Responsible for
the stringeney-wheat md Silver Are
Now Mt the Lowest Prices Ever Recorded.
Wall street began business yesterday under
great strain. The money market on Wednes-
day foreshadowed even greater activity. II not
absolute stringency. yesterday. In addition.
one OF the first movements on the Stock Ex-
change was further decline In the price OF
silver bullion certificates. to 82 cents an ounce.
making intrinsic value OF the standard dollar
n shade under 30 cents. Cable advices indi-
Gated that tho London market for securities
was demoralized on account of the further
drop In silver. and from the start foreign ar
bitrage houses here were free sellers Of stocks.
When the money market opened the
most gloomy forebodings were realized
The first rates were 30 to 90 per
cent. and then the method OF quoting was
changed to acommission and interest. good
many loans were made at one eiehth commits.
sion and interest. and then the rate advanced
to three sixteenths Of per cent. commission
and interest, which is equal to about 73 per
cent. per annum. At times there were no Of
ferings OF money. This condition OF affairs
rockingham. well- known money broker and
Messrs. Moore & Schley appeared in the loan
crowd with apparently an unlimited supply Of
money. The 0rst loaned about $1,000 600 and
the last S2.000.OO0. Their operations broke
the rate down to @ por cent.
1t did not take the Street long to ind out
where this money came from. The Clearing
House Loan Committee had. It is understood.
become impressed over night with the gravity
OF the situation. and q number Of its members
were fully determined when they met at IL
o'clock to take q bold and decisivesstep to re-
lieve the strirgency. Their purpose was not
to help the stock market in the sense Of en-
couraging speculation, but to avert a panic in
securities and at the same time bring the rates
for money down to normal figures. Tho call
loan market is really tho index OF the entire
money market. and it was argued that II the
rates in that department could be lowered by
furnishing an adequate supply Of funds all
other branches would reflect tho relief thus
given.
The Loan Committee was not unit upon the
proposition. President G. H. Perkins, Jr.. Of
the Importers and Traders National Bank.
and President G. G. Williams Of the Chemical
National Bank opposed the action suggested.
chiefly it is understood. on the ground that
they had no occasion to take out Clearing
House loan certificates and did not feel called
upon to do so except to accommodate their
regular customers. The other members. 1t is
understood. under the lead Of President F. D.
Tappan OF the Gallatin National Bank. the
Chairman OF the committee. took q
broader view OF the situation. They
asserted that it was not necessary for
them to take out loan certificates in order to
accommodate their regular customers. but ex-
pressed Willingness to DO SO TO prevent busi-
ness generally from coming to an absolute
standstill.
committee authorized an issue OF S9,O0O.OO0
Clearing House loan certificates. and the panks
named below agreed to take s8.Q0o;OO0 Of
tai and surplus. and imme d iatey go into the
loan market with tho funds thus placed at
entered into, this agreement and tn" amounts
taken by each:
Gal,atin National Bank S50OOOO