New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-09
THERE WAS NO CURRENCY.
THE CHEMICAL BANK DID NOT CASH NEW
YORK CFNTRALS PAYROLL

! SCARCITY OF CURRENCY WAS THE CAUsE-SIi1P-
MENTs HAD TO BE MADE FROM BOSTON.
The refusal of the Chemical National Bank TO
make up the amount Of cash needed 1or inc
MONTHLY payrols Of the New-York Central Rail
road illustrates the extreme scarcity OF currency
in Ncw-York. The Chemical Bank has long been
Ccntrals depository and has furnished monthly
70 the road several hundred thousand dollars In
currency to pay its employees. The monthly pay
rolls Of the railroad company amount TO over
81 200. 900. or this sum about $4,000 is paid in
checks the other 100000 being distributed in
cash IL has been the custom of the road to
dcposit checks made in its favor with the Chemi-
cal Bank, making the collections through the
! Chemical and getting currency from 1t for the
company's men. IL became known yesterday that
the bank had informed the road that 1t would
not snpply the whole 500, 900 needed to complete
the amount Of the payroll 1t was understood
that this was wholly due 10 the scarcity OF cur
rcncy Banks have FOR several days had difficulty
i'm getting hold of currency, there Is so little OF
il in circulation.
Chaunccy NJ. Depcw, president Of the New-lork
Central Railroad said to Tribune reporter last
evening: "Of course had the money TO pay
our men, but not the cash. and we neei monthly
a largc sum for our pay-rolls, about SsOOooo III
currency The Chemical Bank has always sup
piled this for us, made our collections on Cheeks
etc But in the present financial conditions,
with currency so scarce as il is, it impos-
sibc for the bank to give us so large sum
in cash and we were informed the other day Of
this fact
But we have arranged the matter through
other banks or course there never was any
doubt that our men would be paid. / do not
IL. a,x1r aN;a i.f-
In these DAYS when there is little cash in crcrl-
lation. il is simply physical impossbity to get
hold Of large quantities of currency. The Chem
zeal Bank is our depository and will so continue
II will give us what currency it can, but the
prcscnt scarcity made it unable TO accommodate
~ as formerly and we had to collect it else
where
Have YOU been able, Mr. Depcw, to get the
necessary amount.
practically the whole amount already, and
we shall be able to complete it, Only a slight
delay has been caused
II is under. TODD that the iailrrr Of the Chemical
pank 10 supply the amount, as usual. was due
to thc difficulty OF mixing Boston collections
in this city When the Central, for instance,
dcpostcd in this city checks for many thousand
dollars drawn in Boston. 1t was impossible to get
cnrrcncy for them. Ts brought about queer
condition Of affairs, taking business men back to
the DAYS when there were no clearing houses
and when bankers transported cash III strong
boxes from one city to another to make payments
II became necessary for the Central road to send
back its checks to Boston, to make cash col
ections on them there, and then to ship the
currency to New-York.
The Ncw-York Central Railroad in completing
the sum needed for it's pay-ros collected yester-
day Sl30,000 in currency.
Bankers and business men say that there has
never before been time when currency was so
scarce in New-York. II is with great difficulty
that change is procured.
William j. Qunan, cashier of the Chemical
National Bank was seen at the bank last night
by a Tribune reporter. lie said 1T is true
that we have refused to furnish the New-fork
Central people with the peculiar classes Of cur
rency which they require for their monthly pa.
rolls. 1t is the first time in thirty years that we
have been unable 10 accommodate them, Dut there
is no cause for alarm in that. 1t simply means that
people have largely withdrawn their money from
the banks and are carrying it around in their
pockets or slowing il away in strong boxes. The
bulk of it certainly is not in circulation. We are
exceedingly sorry to disappont the New-iork
Central people in this particular, especially as we
have been able to accommodate them so many
years without difficulty. But we were compelled
to do il in self-dcfcnce
"E V. W. Rossiter the treasurer Of the com
pany, sent down TO me this afternoon his usuai
monthly requistion for the monthly payroll
which usually amounts to something like Ssoo,o"V'
The reuuisition, you understand. is not a ensoN
or an order for this sum of money III Mr. "os
sitter had sent n check for million do'i'rs w
would have cashed it instantly. Inc requ,'r
ton was merely II request for so many 9oo oii's'
so many $40 bills, so many $40 DIS 8, "a"'
81, so many ~, and 50 many 81 piiis. besiues
this the reputation asks for SO many oo-ceh''
p5cent IO-cent and 5-cent pieces, besides pehnles
Ceutiuued - Fifth Page.