St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-06-17
FINANCIAL.
New York.

NEW YORK, June 16.-The stock
market was strong during greater part
of the day, with advances from d to
per cent right through the list. The
improvement was attributed chiefly to
the action of the clearinghouse banks
on the question OF issuing loan certifi-
Gates and the further decline in foreign
exchanges. The former, according to
leading bankers. has met with a favor
able reception abroad and has induced
more or less buying of securities IN this
market. The greater advance was in
National Starch second preferred, which
rise of 81 TO "a, the inquiry having
been stimulated by reports that
the opposing factions at the
West had settled their diff
ferenceS. National Cordage was
strengthened by the outline of the pro-
posed plan of reorganization, it being
understood that all the holders of the
cOmpany'S paper have aSSenred 10 the
plan, and that two or three prominent
bankers will enter the directory. The
common stock rose 2, to 16, and pre-
ferred l, to 81. General Electric was
conspicuous, selling up 2, 10 1881. chi
cago Gas advanced ~, to 72. Early in
the Gay speculative interest conferred
largely in the industrials, but subse-
Quently the railway shares developed
marked strength, and improved l to
per cent, the latter tor Missouri Pacific.
After o'clock there was general re-
action of a to l3s per cent, in conse-
quence of the high rates for money,
which started movement to realize
profits, but finally II rally of e to "
ensued, and the market closed steady in
tone.
The Post says: 1.-The issue Of loan
certificates is problem with which out
side observers have no right to inter-
fere. But the free accommodations of
Western spectators by Western banks
at the expense OF New York city is quite
another matter. Irrespective of private
or speculative interests. the restoration
of genaral welfare still hangs very
largely on the making of a market for
our products among the foreign buyers.
At a low price, these buyers will take
wheat. 1t is being freely supplied to-,
day from Duluth and other storage
points at prices which undersell Chi
eago. If the Chicago inanciers i'm
agine that by devotIng all their re-
sources to customers laboring under
load Of speculative wheat, they can
force up prices to figure where the
Cudahy pool can sell with profit, they
have learned little from their expert
ence of panics. Some idle talk has
come from the same quarter of Chi
cago's having drawn upon New York
this week for its own legitimate bal
ahces. This is to ignore most fOollshly
the source of the Western shipments.
BY far the greater bulk of this was
money loaned TO Western banks by
New York institutions ON commercial
paper. Beginning with July, these OBJ
LEGATIONS will mature, and, unless ex-
tended, must be paid by return of
leash. What this will mean to Chicago
and the West, unless its banks pursue
a policy of utmost caution, need hardly
be described"
Bradstreet's weekly Wall street re-
Wall street was encouraged by belief
that the~financlal troubles at Chicago
had ended and that the drain of cash
from this city to the West was practi-
cally over. A sharp rally on the short
interest gave animation to last Satur-
days market, in spite of the fact that
the bank statement for the week made
an uneXceptOnally unfavOrable show
ing. 1t would seem. indeed, that the
street did not Immediately appreciate
the lesson conveyed by the heavy de-
cline of cash holdings and de-
posits and the almost stationary
loans of the associated banks. If
this was the case the error was
soon recognized, the calling of
loans necessitated by the further heavy
demand from the West creating a de-
cidedy stringent condition in money,
rates for call loans advancing to 10@l5
per cent. with occasional quotations as
high as 25 per cent. The extension of
the banking and commercial troubles
throughout the country added to the
general uneasiness. while the discovery
of irregularities in New York savings
institution. which seemed likely to re-