The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-06-30
MONEY MADE EASY.
Bankers Are Tired of the
Storm.
TOO MUCH OF A STRAIN.
And So They Have Set About REM
edying the Evils at Pres
ent Existing.
90 MUCH OF A STRAIN.
Special to TUE MORNING CALL

NEW YORK, June 29--The rates for call
loans to-day reached the highest figures
since the present strngency set in. They
rose to 3-16 per diem and interest, equal to
about tx per cent per annum. The pinch
was particularly severe this morning.
Efforts were made to have the Clearing
house banks take out large amounts of
loan certificates to tide over the first of the
month, the critical period, and they
proved successful. as the banks asked for
and the loan committee issued 900
certificates, the largest amount for many q
day thus far, leaving outstanding S13, $780,
600. This relieved the market and there
was a drop in the rate to per cent per
annum and a rally to 20 per cent.
The dealings in time money and mer-
camille paper were practically at a stand
still. The strn geney In money demoral-
lied the sterling exchange market and
selling rates fell below gold importing
points. Bankers were liberal sellers of
bills in order to take advantage of higher
rates for money.
This morning the Clearinghouse COM
mittee virtually formed syndicate by
agreeing to take out lot of Clearing
house loan certificates for the purpose OF
q
and the panic that virtually exists in the
money market.
The strain was broken In fact by the
bold and decisive action of the leading
downtown banks, and the way paved for
satisfactory completion of settlements,
dividends and interest usual to July l.
For two hours in the morning the
money market was in a condition where
the most serious consequences were
feared. but by concerted movement sew
eral banks threw flood of funds into the
hands of the borrowers and relieved the
tension, which had been the most acute
that financial circles had felt IN many
years.
Relief was given In the face of further
Generalization in silver values. and it is
believed that its effect will be felt
A severe pinch in money rates may not be
avoided under the circumstances, but the
banks have demonstrated their power TO
control the situation, and they will not
| hesitate to exercise this power again to-
morrow if it is necessary.
The knowledge that solid wall is to he
presented against the pressure of distrust
will, IL i,self. it is con fidenlly expected,
go far to lessen the adverse force. The
results to-day justify the foresight of the
Clearing house Association in voting on
June Is to authorize the issue of clearing
house loan certificates upon sound securi-
ties deposited by solvent institutions.
The monetary relief to-day came from
the pubic-s spirited action of five promi-
nent banks-the Firs: National, Chase
National. Fourth National, Galatin Ma
tional and Coin Exchange. Their ofTicers
held a consultation and decided 10 throw
their resources into the breach.
The banks at once utilized their cash re-
serves to supply the funds needed and
then applied for clearinghouse certifi-
Gates TO cover the debit balance that will
result to them in clearinghouse settle
ments in the morning. Only by this lib
eral use of bank reserves could the strain
be broken.
1t is understood that these banks have
agreed to take out certificates necessary to
release their reserves in the following pro-
portions: First National 81, 100000. Chase
National 81. 800 0O0. Fourth National 81, ,OO0,-
| eco, Galatin National and Corn Exchange
banks each S500,000. None of these banks
is in position to require a resort to certi-
fcaes in conducting its own affairs. The
total amount of the Clearing house certi-
fcates issued was S4.9750 900, making the
total outstanding amounts of S12, ,005, 900.
The condition of affairs in Philadelphia
banking circles is becoming m ore marked
| According to advices received from there
this morning New York exchange in that
city Is at half cent on the dollar. Sew
eral of the large banks in this city have
large balances owing them from Pbiladel-
phia banks, which the latter are unable to
remit on account of their inability TO pro-
cure New York exchange on currency.
One New YORK bank has S750.000 tied up
in Philadelphia in that way another has
100000 and still another $500, 900, and the
question is becoming serious one. Un-
less the Philadelphia banks remit this
week it is probable, according to some
New York bankers. that discount will be
charged on all Philadelphia exchange re-
ceIved from dealers here.
Dealers say that the transactions in
Government bonds have been on an enor-
nous scale recently. One authority esti-
mates the sales for the past fortnight by
savings banks and kindred institutions at
| about 81, 100000 National banks were the
purchasers. and full prices were paid in
every instance.
Boston, June 29.-The strain on the
financial situation to-day is severer than
ever. Stocks were demoralized at the
start. Liqudations were extremely
heavy, and under the pressure prices
tumbled badly. The banks are calling in
loans on all sides. and some of the best
houses on the street had to pay abnor-
mally high rates to get carried through.
The Union Pacific announces that 1t
will to-day anticipate the payment of the
July interest. This includes all compa-
MES of the Union Pacific system. The
payments will amount to S2000.000.
POMONA, CAL, June 29.-Bank Commits
sioners Gerberding and Dunsmoor have
examined the Peoples Bank and found it
good. The assets are 100000 in round
mum bers and S130.000 liabilities. Attor-
ney- General Hart was present and gave
| the bank officials permission to reopen,
which will be done Saturday. or Monday
at the latest.
NAVAL CHANGES.