The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-06-24
New York Bankers Say the Worst Is
Over So Far as They Are Concerned.
Despite the Failures on the Pacific Coast and
Elsew here This Week the Situation Has
Improved and Money Is Less Stringent
Money Telegraphed to San Francisco TO
Aid the Banks OF That City.
Two Big Institutions with Ample Assets Forced
to Suspend for Lack of Ready Cash-0lh-
or 1roubles in the Business World.
THE FINANCIAL SITUATION.

THE FINANCIAL SITUATION
New York Bankers View the Outlook with
More Hopefuiness than q Week Ago.
NEW YORK. June 23.-Banks reported an
easier feeling this morning In the West and
said that the demands for accommodation.
rediscounts and currency were much less.
The attention of bankers to-day W rs most
ly concentrated In the situation on the Pa
cifio coast. AT the subtreasury it was said
that 100000 In currency was exchanged to-
day for transfer to San Francisco. Besides
the gold thus transferred, shipments Of
currency were made direct to-day to that
city by express. which made the aggregate
amount of money forwarded to-day about
81, ,0O0 OO0 and more will be sent tomorrow
in the same way. 1t is believed that the
help sent TO San Francisco from this city
has relieved the strngency there. so that
beyond the bank failure announced to-day
no further trouble Is expected.
DR.. X. II. Mcdonald. president of the
Pacific Bank. Who is stopping ct the Astor
House. was shocked when he heard to-day
that the bank had closed. lie said: Though
presidents of tne bank. have not been
active in its management for some time.
am sufficiently familiar with the affairs Of
the institution, however, TO feel confident
that there is no chance for any OF the de-
positors TO lose anything. i thinkit will
liquidate for almost the amount OF its cap-
ital and surplus. Sl.000.0 600 and S6O0.0O0. re-
spectively. The bank had gone into no
speculative enterprises mp to the time OF
my departure. Or the local business We
had q fair percentage. with an extraordi.
nary numbe OF correspondents ts In the couus
try. 1t was the heavy drafts made by the
country banks. presume. which torced the
suspension"
The subtreasury began the payment to.
day Of interest on United States coupon
bonds. due July 1. The number of coupona
presented for payment to-day. however.
was not large. Holders of registered bonds
will probably get their checks tomorrow.
They will be paid as soon as presented.
| The total amount OF interest TO be paid out
| by the government in this city is about
| $6,0O0.O00. The disbursement of this sum
l is expected to aid very largely In the re-
| lief of the money market. as il will TO some
| extent relieve the pressure for money "a
| pay railway and other dividends July j.
| The presidents of some of the leading ma
| tional banks were asked this afternoon
| what they thought OF the financial situa-
| tion. They agreed in the statement that.
| Notwithstanding the number OF banks
| which were being compelled TO close their
| doors in san Francisco and elsewhere. the
| situation was QeclOeOlY lmprONoo. cOlu-
| pared to what it was this day a week.
| "rhe situation Is much easier" said bank
| president. land feel at liberty 20 discouno
| fox my dealers much more freely to-day
than 1 did this day last week. The atmos-
| pbere is cleared. and think tAe worst is
over so far as the ban ks are concerned"
| number of other bank presidents concurred
| in this statement. and said it correctly rep
eented their views of the situation.
By request of Mn. Parsons. manager foA
Wells. Fargo 81 Co., who do very large
II banking business in San Francisco. the
/! transfer of money through the subtreasury
| was made entirely by telegraph. Usually
| it takes from two to three days to transfer
money from this oity through the subtreas-
ury TO San Francisco. the transfer being
made by telegraph from Washington upon
the receipt of certificate of deposit from
| the subtreasureT here. Yesterday. how
| ever Mr.. Morgan, the United states Treas
urer at w Washington. was prevailed upon Co
| accept telegraph advice from Assistants
Treasurer Jordan of the deposit of gold IN
| this city, 80 that the San Francisco banks
were enabled to receive. yesterday. the
money deposited to their credit with the
| subtreasurer here. The same course will be
| followed to-day. The difference In time
between this city and san Francisco makes
| 10 possible for money deposited at the SUBJ
treasury here. mp TO 2 o'clock. for telegraph
| transfer to be paid 20 the banks IN san
Francisco before they begin business on
the same day-that is. before 10 pollock.
Two Bank Suspensions at San Francisco.
SAN Francisco. June 23.-The Pacific
| Bank dld not open to-day. The direct
| cause was q note from the Clearing House
| Association that the banks paper would
| not be accepted. IL has been known for
| some time that the bank was laboring un-
| der financial difficulties The Pacific Bank
was organized in 1868 by X. III. Mcdonald,
| and its present manager is X. III. McDon-
| aid, jr. 1t has paid up capital stock OF S1,-
| 900, 600, nominal reserve Of about 100000
| and deposits OF about 81. 500. 900. according
| TO late OIL cal report The loans and dis
| counts are aid TO be about g. 5OOOO0. Tho
| failure seem TO be due to recent monetary
troubles 1t is expected that depositors
| will lose nothing.
| The Peoples Home Savings Bank also
| failed 20 open its doors this morning. On
| the door was the following notice: Bank
closed temporarily In order to protect de-
| positors and give time 10 collect on securi'
| ties We have sufficient assets-more than
| our liabilities" The president, Columbus
| Watchouse. last night decided all his prop
erty TO the Peoples Bank that It might
| raise money TO tide over the crisis. Ihis
| property ia far in excess of all Liabilities
| of the bank. Failure 20 realize on the Sc
curitles was the immediate cause of the
temporary suspension. The directors OF
the bank have ordered the regular divi-
| dend TO be paid July l.
| There was a little furry around the San
! Francisco Savings Union when 1t opened.
| but this soon subsidized. The feeling Is
| that all the commercial banks are on a Sc
| cure footing. The presidents OF many OF
them OK press themselves as glad that the
crisis has arrived that they may show
! their strength.
| SAN BERSARDINo. Cal. juno 2a-The
| First National Bank closed its doors to-
day. after undergoing run for tho past
| five days.
| Banker Day Missing.
MILWAUKEE, Wis. June 23.-F. I. Day.
formerly president of the Plankington
Bank. has mysteriously disappeared.
While the grand jury was investigating
the failure of the PlankiDgton Bank Mr..
Day went TO Indiana. ostensibly for his
/ health, and since that time he has not been
heard from. HIS assets were Sj4i. 900 and
| liabilities about $780, 900.
| An Indiana Bank suspends.
| Special TO the Indianapolis Journal
f'oRT WAYNE. Ind. June 22-The First
National Bank of Kendallville. the oldest in
Noble county. closed it's doors at noon to-
day. The suspension is said to have been
caused by the bank carrying o large
amount OF paper of the Flint & Walling
Manufacturing Company Of that place.