The comet. (Johnson City, Tenn.) 1884-1916, 1893-06-22
DRAIN CONTINUED.
THE SOUTH AND WEST WITH
DRAWS $4,000, 900 In
TEN DAYS.
New York Banks Compelled TO Call in
Loans.

New York, June 16--The shipment
Of currency TO TIE West and South by
New York City banks was continued
Wednesday, and excited much COM
ment in financial circles. The
amount sent out Wednesday was es-
timatcd at more than 100000 and
another million was ordered Wednes-
day.
When asked as TO the cause for
this alrge shipment Of currancy, which
is mainly to the West, (the amount
sent out within the last ten days is
believed to exceed Sl40OO,00O)bank.
ers agreed in saying that the demand
= was largely due to the distrust pre-
vailing everywhere in this country,
especially in the West where there
have been great many failures, both
OF banks and Of commercial houses.
The stringency Of the money mar
ket is being experienced at both ends
OF the line now. The savings banks,
as we'll as other banks out West, are
all iortifying themselves az mneh ma
possible, and that, especially in the
case of the country savings banks, is
causing boarding OF money in these
places and consequent drain upon
the banks Of New York City. AS a
result OF this many New York. banks
,are being compelled to call in loans in
order to maintain their lawful reserve.
|Their lines Of discount and time loans
are practically fixed so that they cam
not beNdisturbed, and 50 they have no
alternative but to ask for payment Of
their call leans in case their maturi-
ties do not meet their daily needs.
The spending is ward oil wheat, it is
believed, will only account for very
small part Of the demand for currency
X from the West. Last week the Unit
ed States Treasury took 100000
from the banks as the net result o.
the weeks operations, but this week il
is expected that the banks will gain a
leastS1 100000 from the Treasury, an(
very probably more next week, as thu
payment OF pensions has begun anC
will reach its height next week.
AS an indication OF how the mo
mentary stringency is affecting tred'
in all its ramifcations it was reported
in Wall street Wednesday that the
large sc mercantile houses in Chieag'
were endeayoring to get extensions il
This city from wholesale houses Q
which they had bought goods, Anoth
er indication OF the stringency is th
fact that large mercantile house i
this city, of frst-clsss credit and abur
dant assets had to pay 70 per cent, 70
extension to tide it over a tight place
~ The lack Of business is also reporte
to be one Of unfavorable condition
noticed by large wholesale houses j
this city, and it is generally attribute
10 the curtailments Of credits, the ba
tate Of affairs in the West, and gel
orally to the money stringency an
lack Of confidence.
III merchants here or elsewhel
cannot meet their current obligations
said one bank officer, athey cannt
very we'll buy more goods, except Q
I'M credit, and this is precisely the cond
ton existing all over the country t
day The liqai iation must perfort
y continue, and when confidence is r
stored business will look up again.
Dealers gay the transactions in 60
Iernment bonds lately have been al
tie in excess OF the usual amour
kThey amount to about one and hs
millions in the last fortnight. III
supply has come chiefly from Il
n West, and no doubt represents sal
by savings banks and other instit
tions. There has been very little su
ply from nearby institutions. The
tai amount sold by Eastern instit
tions will probably notamount to mo
than 100000 or 100000 in the /
Rod. There has been a decline
about per cent, in the price.
There was meeting ofthe clcarii
house committee Wednesday. T.
meeting was q special one and last
more than two hours. None Of t
members would say why the meetil
was called or what was done, but lal
nthe day il was stated from reliat
!. ]. J !. ]. !. !. ].
2 source that the question OF issu
clearing house certificates as NAL
rsiftin tho absence Of ready cash "
HE Discussion. So far as can be
contained the committee did not
sire to issue certificates, the matter
ing over to another meeting