Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-08-12
ROOT OF THE CRISIS
Withdrawal Of Bank Deposits Sole
Cause Of Money Strpesncy.
DUN L CO.'S WEEKLY aruEw
shocks Are ssrsaxrr. and ffope b IL
prsssed that Cenfldcso~ MAJ be RE-
ssssed and Moscy uniocked


Nlsw YoRK. AUG. ll.-R q. Dun 4
Cos Weekly Review az Trade vii say:
The hang desired meeting of eo1grez~. .
presidents message which answered en-
peciations and the arrival q tla2so.ooo
gold from Europe. wiih $4,000. 900 more
on the way. have not brought the i'm
pTosemeut many anticipated Stocks
are stronger. but failures continue and
the closing Of industrial establishments;
idle hands multiply. silent shops and
the disorganixzfion Of domestic ex-
change 10 even greater thsa = week ago.
Yet there u . more hopeful spirit
though the nation looks 70 Washington
with some imp&tisnce. WHARF the senate
seems disposed TO rival the mills in
working short TINA While states.
men consider, merchants and
bankers and unemployed thousands
anxiously wait knowing that the wrecks
Of each passing week nAkcs the task Of
recovery more difficult There has been
no startling crash. but the formal fail
ures OF banks, Including enc IN thia citr
and several In Nashville. number thirty
four. while refusals 30 pay except
through . clearing house or with limi-
tations are becoming moro common
The commercial disastsrs, 50 In num-
Der. include such names - a. II. Cole
man. the "Iron King" J. H. Walker a
Co. Of Chicago Ia dry goods and IL Ia
Hotchkiss in stocls- Whatever relief
congress he's power 70 give may be leas
fruitful for good II long deferred
Exorbitant Exchange
The machinery Of exchanges has al
most stopped. When $50 per $1,000 IL
paid for New York exchange at Chicago
and SIS or Go at other western cities.
settlements between the east and west
which ordinarily amount to "a 100 o0o. 600
in year. become extremely dif1cult
Even the New York Central could not
get currency here on checks OF the Bos-
ton 4 Albany and was Obliged 10 sent TO
Boston for the money. The root OF the
trouble is that. according 10 the reports
OF July II TO the comptroller. over sl3l.-
000.00o Of deposits had been withdraw
national banks. and probably sl71.0oo.-
~
from savings, state and private banks,
and during the month. since July IL, the
withdrawal and boarding must have
been relatively even greater. A
premium OF TO 2 per cent IL paid for
gold. and 3 TO per cent for currency.
The government Is printing sl,250.OOO
bank notes daily. The clearing house
has issued S5.0U0.000 more certificates.
and the hops IL that confidence may be
revived and hoardings unlocked. The
arrest OF industry goes so far that a
third Of the iron production ceased in
the month OF July. and the consumption
Of iron in manufacture diminished AZ
per cent from May ! to July l. Not
even this shrinkage stimulates demand
enough 10 support prices. which remain
the lowest on record, and further stop
pages in August have reduced the weekly
output below 100000 tons. Copper has
declined to 9stc and lead to SIC, with
narrow trade. Shoe shops are looking
in vain for furtherorders, and last week 9
shipments from Boston were 1900
cases, or 20 per cent less than those OF
the same week last year.
Increase OF Currency.
Pork products are cold more largely
for export this week but cotton has
yielded an eighth, stocks Of $50. 900 bales
here and 1.3s5.000 American abroad
being too heavy when many OF the mills
are stopping. Coal Is dull and the out.
put is much restricted by the difficulty
Of getting money for wages The move
ment OF animals is less affected. cattle
receipts at Chicago are fairly maintained
and bog packing for the latter part Of
July has been nearly as large as last
year though for the year thus far. March
|. 10 August /, 100000 hogs less than
last year.
Railroad earnings show a decrease oi
about per cent compared with those oil
last year. but the clearing house re
turns at the principal cities show an in
crease in settlements OF % per cent
Appeals 10 the treasury for some relic
are frequent, but it's cash balance haa
been reduced 30 low that the gold re
serve may have 20 be used in part fol
current expenses. But sl3.oO0.OOO banl
notes will quickly be added 10 the circu
lation through uss of the bonds pur
| chased from savings banks and e23.0o0.
600 in gold from Europe, in spite of th,
advance in the Bank OF England rate I.
per cent and in It's charge for gold Il
7Gs l0d. which. with some speci
notes from Canada. viii make tn
largest addition 10 the monetar,
supply ever experienced in
single month. IL this sufiices 10 Gauss
the release Of boarded money. some re
covery may come without waiting 10
slow footed Law makers at Washingtor
But late adyices give ground to hop
that the wishes Of the business worll
may coon be answered by unconditiona
repeal Of the silver purchasing clause d
the act Of 1890.
Failures during the week numbe
3oi in the United States against leo las
year, and - in Canada. against 10 n
the same week last year. The numbr
for the past week shows decrease fror
the previous week u 90 The west I'll
contributes the largest pumber, f9i. N
the pact week against ~ FOR the Pre-
vious week. In the east there we're Ia
and in the south -