Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-08-05
er,,ef At Maso.


NV YosK. Aug. A-The overshsiow-
ing question yesterday In financial circaes
~ the scarcity Of currency. Al MANY
hanks /, was admitted that cash payments
for large checks over the counter nave
tssn sus,,e ussei for some days, except IN
cases. where il WAS known the actual cash
was necessary In other words. II WAS
said the banks used discrimination. and
where i, was thought the demand for &C
,ual cash currency" was made FOR the
purpose Of hoariing. the bank insis'ei
upou a certifi. d check being taken. Inc
clearing hoE>e committee issued
-. oou. aoo More Loan Certificates
In the very general collapse OF the ma
chinery of domestic exchange the coiiee
,ion of draft, on bonds in other towns Anu
cities has been managed on an unusual
system.
Ordinarily. when New York bank de
pastor turns in a check drawn TO hs
order on an out-of-town bank, the New
York bank r,smits to is own correspond
emit in the sane place for collection or else
sends direct To the bs k drawn upon IN
both cases out of town hanks have either
DELAYED in renitting or else have remitteu
In New York exchange. charging up 10 the
New York bank the cost of exchange.
The city banks have therefore resorted. III
unusually large measure OF late, TO oife1'
collection through the express companies
which make specially OF presenting
drafts direct az distant points, drawing
out the money and shipping II TO New
York. The cast of this transaction has
for "a long time been materially belle"
the rate charged for interior EXCHANGE
Incidents Of :, curious character are De
ing rvlat cd by bankers as to the worAihs~
of such collections. some outside panAs
have taken pains to pay such drafts III IN,
Convenient currency, notably stAh"afu
silver dollars. One ease is mentioned oil u
country hanh on which draft OF several
Thousand dollars was
Collected by Express.
In the money returned were several nun
dred dollars iu gold, 500 in standard sill
yer dollars and S5i,1 in subsidiary coin, I'll
most entirely dimes, with liberal sprink
ling of Canadian pieces.
Frederic. D. Happen, president OF tn,
GaliAtin National bank and chairman oil
the clearing house loan committee, said
that the cry about the scarcely OF currency
would tx all over by the end OF the
week. by which time the first of the gold
impurtations would be here. The receipt
If $40, 0OU,O1 of gold. the amount now on
the way, Would, Mr.. Happen said. effect
ually put a stop to it. Mr.. Happen said
he did not know anything about pre-
MUM being offered for currency.
So far a. the Gailaun bank was con
cerned il had
shnveiied Out the Cash
without discrimination.
lie believed one or two banks up town
were little short OF currency, but 1t was
probable that arrangements would at once
be made to relieve their necessities in that
respect
Another prominent bank president, dis
cussing the scarcely of currency, sa,d
The situation now is very different from
what it was in 1873 Then, when cash pay
ments were suspended. all the banks oi
this city on the worst day had only $500 0
of cash all told, and now they hav.
Sl00,o00, 90 in cash, and suspension
of cash payments is impossible. The
present scarcity of currency is due l.
boarding. There are vast sums in thu
vaults Of savings banks throughout the
country"