Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-09-01
CHICAGO VS.. NEW YORK,
A FIGHT ON THE LINE OF Fl.
NANoiAL BUSINESS,
Chicago Bankers Issue a Circular,
Asking the West 10 stand by Them
in the Contest

ST LOUIS. Aug. 30,--severai 81. louis
banks have received letters from tho First
National bank OF Chicago, which Is &C.
cepsed rs declaration OF war between
that Western metropolis and New York.
II comes In the form OF an srlanauon
why Chicago cannot accept drafts gu New
York and other Eastern po'uts and credit
them at par, The NEST eogent reasons
advocated Hre as follows;
Chicago banks are paying currency The
banks in New York and some Of ihe other
larger Eastern cities are practically paying
no currency now, but checks on them,
when presented at their counters are certl.
fed "good through clearing house oniy."
In tho clearing house balances are settled
III 'certiGcatcs,' Money III New York
commands premium over bank checks
OF from IL TO . per cent and az hlsh as 5
per cent has bcen paid. II IS therefore
evident that unless Chicago banks eau and
will sell drafts on New York At dis
count. about equal to the premium paid on
money there, nobody viii buy them On
the contrary, parties here having large re-
mittancos or payments to make there will
draw cash, send It to New York and sell
II at premium for bank checks. which
serve the purpose In New York OF general
payment.
The letter winds mp by asking the GO.
operation OF Western banks generally In
their action, that Chicago and the West
may be kept on cash basis 1t also al.
ludes to the extraordinary EFFORT made by
Chicago TO secure currency, such as the
purchase OF cable transfers on London and
Paris, and the direct importation OF gold.
The letter Is signed by Lyman j. Gage
CHICAGO, Aug so,-Iymnn Gage scouts
the Idea Of financial war being IN progress
between Chlcago and New York. He said
yesterday. the circular sent by he llrsi
National bank Of Chicago TO correspondents
Ia ST. Louis was cv~t FOR No other pur-
pose than TO explain the existing conll.
Tons q the money market 10 such as had
not hitherto understood them
said Mr Gage; "The circular was moth
NE more than q statement OF facts nects.
sary to be made known 20 our corresnnn,
upon the methods pursued hv the New
York bankors II Is not our place 10 criu.
else thelr methods. They are the host
Judge, OF what the circumstances required
and the course they took may hay heun
the wlseHt possible and may have made
things much easier for us w the West.
we have been SO fortunate as TO have
beon able TO dispense with the measures
adopted In New York and that q all to
be said on the subject
In our circular we said we were paying
currency over the counter IN Chicago hut
tho New York banks were pnyiug clearing
house certificates instead. The result was
we could not get currency In New York on
q draft there People who wanted cash
there had to buy II on the street by paying
whetever premium was prevalent, from
10 TO 2 per cent We could moi. ~
course, afford 10 buy drafts on New York
here al par and then pay premium OF
from ! i-2 TO per cent AZ New Norl. 10
get our mOney back
"fhc statement OF the fncte for the in.
formation OF our correspondents was not
declaration Of war on New York nor dld
i Imply censure on New Y0rl, methods
u an no moIT ihau explain the policy i'm.
| posed on VI by the circumstances OF The
tlule. Things are changing now. The
Stringency Is rapidly puSlng away Ia
| 4 short limo the premium FOR cash on New
York drafts Will disappear, and then Of
course Chicago will be pleased to accopt
New YORK paper on The best terms. There
York and Chicago bankers"