St. Paul daily globe., 1893-08-08
OUR DADDIES' DOLLAR.
STEADY FLOW or THE GOLD con-
FROM EUROPE.
CURRENCY AND SPECIE SCARCE

Brokers Paying as High as 3 1-2
Per Cent for 1t In Big Lots
The Chieago-New York Bank
Row Adjusted-A Million More
Certificates Issued. Making the
Total Over $3.50,
New YORK, Aug. 7.-Knaughth. KU0ut
Il Kuhn engaged 9250.0O0 of gOld fol
shipment to New York. The Umbria
brought EGO, 600. of which 9206.0O0 is
consigned TO LaZard FrereS and e100,090
TO Heidel6ach, Ickleheimer & Co.
Aside from the meeting of congress
and its possible action on tine silver
question, together with its probable
effect on business in general and the
stock market IN particular, the prlTI-
cipal subject of discussion to-day was
the continued scarcity of all forms Of
currency notes and specie. In fact,
according to well-informed bankers,
that was in some respects the most Seri-
Gus question of the day, although many
of them were of the opinion that the
dimcuity would right itself in Il few
days. Others said that the scarcity
would not be relieved until confidence
was restored, and that would not be
until congress has repealed the silver
purchase clause of the Sherman law.
Money brokers to-day were paying as
high as = to 2 per cent for currency
and were getting as high as 3>a for it in
big lots. Their Offices were crowded all
day, and they were evidently doing q
big business. These money brokers are
using every eXDedIeut TO get currency
out of the banks and the su0treasury.
They are buying up all drafts Oh the
treasury, such as pension checks, post
Office drafts, mint checks, ETC., as wei:
as big bills. AS far as possible the
treasury is doing all it can to
Prevent The Brokers
getting currency out of the treasury.
One peculiar feature today in con-
nection with this scarcity OF cash. was
that money brokers were bidding from
p to Il of per cent for gold to arrive,
Notwithstanding that the rate of foreign
exchange today, it was said, Tor demand
bills (S4S4i5l did not warrant the in-
portation of gold. Sight sterling was i'll
demand today, in consequence of
the Offering of n premium for gold. The
fourth national bank, today threw out
the account of Zimmerman u ForShay,
Oh account, as stated, of their business
methods, including the Offering OF a
premium for current funds aud exact
ing a still higher premium when the
funds were resold. Zimmerman u
ForshaY are large bullion dealers.
Regarding dispatch from Chicago
that the banks of that city intended to
make mandatory drafts Oh New York
banks, the president of one of the larg-
est financial institutions here said:
"Such talk is absurd. Nothing of the
sort has been or will be done. The OIL
GERS of the Chicago banks are to be
credited with common sense. What
ever threats have been made have come
from the Chicago banks with the small
est balances here. Chicago could not
do business without keeping up bal
aneeS In New YORK. If the New York
banks were othrow out the accounts
Of the Chicago banks, Chicago might as
.
Michigan. When Chicago was in tr0u-
bic, New York sent it millions upon
millions of currency. AS soon as it
thinks it is out OF its dilemma ..r
I .:.t.ir It Becomes Empudent
! "If it finds itself in another emer-
gency it will again ask New York for
aid. y -
L no iS o.
the New York banks have not and Will
not refuse to cash Chicago checks when
presented in the ordinary course OF
business, but they will resist any organ
lzed attempt to draw heavy amounts of
mOuey from here simply for the pur-
pose of strengthening Western institu-
tiOns. Brayton Ives, of the Western
National, this morning received letter
from President Tollman. of the Chicago
Trust and Savings bank, in which the
latter regrets that there was any trouble
over the correspondence which passed
between them last week. 1t will be
remembered that at that time the West
ern National was alleged to have re-
fused to honor a S25, 900 draft on the
Chicago institution.
At the subtreasury today it was said
that there was an abundant supply of
currency on hand which the banks can
have in exchange for its equivalent
There are also about $50, ,0G0, 900 OF
standard silver dollars which can be
obtained in exchange for silver certifi--
Gates of either large or small denomlna-
ton. The subtreasury was debtor at
the clearing house today in the sum Of
50, 100000, which it paid Ill treasury.
notes.
1t is probable that the subtreasury
will continue to be debtor each day at
the clearing house, so that there will be
no longer any necessity for the man
ayers to skirmish around and gather in
enough cash from some of the large
downtown banks in order to pay the
government balance. The subtreas-
ury, of course, only deals in cash
and does not receive clearing house loan
certificates. The clearing house. loan
committee issued Sl,O15,00O more loan
certificates today. making the total
amount now outstanding $50. .065, 600,
which means that the associated banks
have pledged just s50,0OO,O00 of their
bills receivable with the clearing house
loan committee as security for the loan
certificates issued.
COIN TN(1R aSUNC