The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1893-03-11
High Rates For Money.
NEW YORK. March 6,

loaned in the Stock Exchange at So per
cent, on call, this being the closing
quotation. More than one would be
borrower, it is said, could not get his
wants satisfied even at this high rate.
The banks loaned all they could and then
stopped. The rate, high as it is, is not
unprecedented. There have been times
when much higher figures have ruled,
but not in years has there been SO
remarkable demand for money as there
is now. Out Of town banks having
deposits in New York banks have been
drawing on the latter at thu rate of a
million day. An officer of leading
bank said to day that SO great was the
demand that the banks, in some cases,
had been unable to supply even the
wants of customers over the counter,
and difficulty had been experienced in
making up pay rolls. One large bank in
which the city keeps deposit had been
actually obliged to make up the pay roll
OF the police department in gold coin at
time when the banks are anxious to keep
their stock of gold as large as possible.
In yesterdays letter gave the statistics
showing the heavy decreases in the
cash and surplus reserves of the banks
during the past month. But the situa.
ton was not fully revealed by those
figures. The fact is that while the aggre
gate deposits of the New York banks are
s462. 900, 600 the outstanding loans are
about $452. 900, 000 In other words the
banks are loaning within SO, 100000 of
the entire amount of their deposits.
Usually the difference between the
deposits and the loans is very large. A
year ago the difference was $50 ,000, 900.
1t is fact that rs of the banks are
actually loahing more money than they
have on deposit. In other words, they
are loaniug part of their capital as we'll
as all of their deposits. Twenty nine of
the banks do not hold the reserve re-
CURED by law, the aggregate amount of
their deficiency being 81, $50, 900. Thirty
five of the banks hold more than the
requisite reserve, but their aggregate.
surplus is only 81, 1867 900. The differ
ence, or net surplus reserve, is Sc, 517, 1000
aud two banks, the Hanover and the
City, hold together an amount nearly
equal to this. Their surplus reserve is
in gold, of which they have a more
liberal supply than the other banks. The
Hanover Bank holds So, OPS, 900 of specie
and the City Bank So. 100, 900 of specie.
Together they hold one.seventh of the
entire supply of specie in the banks.
These two banks, it may be said, were
not among those which came to tho aid
of the Treasury with a supply of gold
early last month. Hence their relatively
stronger position now as compared with
other banks.
All these figures are, of course based
on Saturdays bank statement. To day
there continued the same demands for
money from outside the city and the
banks especially those which were COM
PEELED to make good the deficiencies in
their surplus began to call loans and
this in turn created the brisk Stock
Exchange demand and the consequent
high rates. Notwithstanding that
money loaned here from 10 to So cent.
all day, and that rates for sterling
exchange were as a result, weakened,
the expected withdrawal Of gold from
the sub Treasury shipment tomorrow
took place. The shipments will amount
to 50, 300, 600, of which $2,075, 900 was
taken out Of. the Sub Treasury on
Presentation of legal tenders and Treasury
notes. The Treasury gold to day was
$l03, 052, GIG, and these shipments will
reduce this amount to 500, 1867, 6l2, but
it is probable that gold taken in receipt
of customs and in other ways will H.
crease this somewhat. But the net gold
is very close to the one hundred million
dollar mark, and is lower than at any
time since the resumption of specie
payment. Wall streets awaits with in
tense interest the disclosure of Secretary
Carlisle's policy in regard to the issue of
bonds. AS was explained in a letter last
Friday there is no doubt he can sell all
the bonds he desires on three per cent.
basis. The question is where the gold
will come from and how much of it
would be got from Europe. 1t is said
that one concern that bid some time ago
for a part OF the expected issue of bonds
has withdrawn the bid on account of the
coin clause 1t is rather humiliatlng to
read the words of Arnold Weissburger
the Austrian who is now 10 this city in
relation to Worlds Fair matters and who
after telling how Austria is increasing
her stock of gold in order to resume
specie payments January 1894 ex-
presses his wonder that this country
should go on from year to year buying
silver for the sole benefit of the mine
owners. Any other country would have
been ruined by this policy and it, he said
cannot continue here very long. Aus
tria profits by our financial folly and the
gold shipment shipped to day went, it is
understood to that country.