St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-04
MONEY GOING BACK,
New York Bankers Report a
Decidedly Easier Finan-
cial Situation.
Many Large Centers Paying
Cash Borrowed in
Gotham.
More Clearing House Certifi-
Gates Issued, Making $21,-
$4,000 Outstanding.
One Railroad Milo naire Is
Saved by Prompt Action
by Banks.

! NEW YORK, July 8. The Fourth Of
July holiday evidently was begun by
many business men Saturday, and no
| business was transacted down town to-
| day except that which could not be
avoided. Those brokers who were not
short of stocks and who had renewed
their loans Friday over until Wednes-
day evidently remained away today,
| content to let the silver question and
other matters of that character in
which they were interested take care of
themselves. But. although there was
little doing Oil the stock exchange and
many business Offices were closed. the
banks were all very busy, the 1st OF
July payments. in addition to their reg
ular Monday mornings mail. making
plenty of work for them. Among the
banks the situation was reported to be
very easy this morning; the demands
from the country, it is said, were very
light. and many of the large centers.
notably Chicago, were beginning to pay
back the money they borrowed from
New York.
The subtreasurY was quite active to-
day. Besides receiving 100000 in
! gold for telegraphlc transfer TO San
| Francisco. it had paid out 1850, 900 by
| midday OH small notes i'll exchange for
| gold and greenbacks. 1t was thought
that the bulk of these small notes were
| for the
|
Use of the Savings Banks
| there, which are now paying out their
semi-annual dividends. A very small
part of the small notes, it is thought,
were for shipment to the country. Ehe
| transfer of 100000 to San Francisco is
explained as being due to the action of
the savings banks there. They de-
| manded the required sixty days notice
from their depositors. and then sent on
their securities to Eugene Kelly IL Co.
for sale, in readiness for the demand
upon them, If it should be made at the
expiration of the notice. Today trans
| fer is said to be on account of some of
| the securities sod.
The clearing house loan committee
met this morning, and a quorum of
| them, Mr.. Perkins and MIR. Nash, were
| III session until midday. At that hour
they had authorized an additional issue
| of S2.Sl5, 600 loan certificates, making
J the total amount now outstanding $2l,-
| Gl5, 900. From this increasing issue of
certificates, it is believed generally that
| it will be some months before call
money can be obtainable as low as per
| cent.
The subtreasury in this city was again
q creditor at the clearing house today.
/ the balance in its favor being
| 81 an 1 Al n.
urday, for the first time since Aug. Il,
1891. The fact was explained Saturday
/ by the presentation through the sub
treasury of checks in favor of the gov
eminent for interest on Pacific railway
bonds held in thes Pacific railroad
sinking fund.
The Credit Balance
today, however, was said to be due to
the fact that some banks having large
/ checks on the treasury for interests on
! government bonds collected these checks
! over the SubtreaSury counter, instead of
! through the clearing house, and SO get
! the currency for the full amount. The
| banks which did that needed the cur
! rency. Ii they had collected the checks
! through the clearing house, they would
! only have got their proportion of 1t, and
| if they had themselves been debtor to
/ the clearing house they would not have
got any OF the cash. Practically all the
/ clearing house balances are now
| paid in clearing house loan
certificates as between the banks.
| The SubtreaSury, of course, paws, and is
| paid in cash. Friday 20 per cent of the
clearing house balances were pa id in
loan certificates, and Saturday IS per
| cent of the balances were so paid.
! Practically ali the banks in the clearing
! house have now taken out loan certifi-
Gates. Those which haven't have been
creditors to the clearing house, ana
! have received sufficient certificates in
payment of these balances to enable
them to pay any debtor balance against
them for the present. If they run short
of certificates so received, they will take
some themselves rather than deplete
their cash by paying clearing house
balances in currency or gold.
Notwithstanding the fact that two
! banks-tne Central and the Importers
and Traders'-at first refuSed to take out
any certificates, they are
In Complete Accord
with the clearing house committee, and,
| as reporter was Informed today, they
will take out certificates as soon as
| they are needed. In connection with
the large issue of these certificates last
week it became generally known to-
day that but for the prompt action
of some of the. leading members
OF the clearing house committee there
! would have been default in interest
by one well-known railroad company
Saturday. One OF the best known rail
| road milliouaires in this country was
! caught in the squeeze for ready money
! at the last moment. Knowing this con-
dition, and being assured that unless
! there was relief for ii there might come
| actual panic, three OF the strongest
members of the clearing house asSocia-
| ton, through the medium of the certlti-
Gates, provided the necessary assist
! ance.
The total payments of interest due
! July on United States bonds amounted
| today to 81, 80. 1893. 90. About IS. ZOO, OOO
/ will be paid from the SubtreaSury in
| this city out of the entire amount of
s7,500.OO0 disbursed by the government.
| The payments have usually continued
month or more, but the stringency III
! the money market made the applica-
tons unusually prompt. Many bond
holders who have not taken up the
amounts due on the coupons for sew
eral payments back nave drawn all that
was due them up to date. Some pay
mentS were as much as five wears be-
hind. One bondholder presented cou-.
pons dated back eleven years and q
quarter.
RULER OF THE WORLD.