Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-08-03
THE FINANCIAL SITUATION.
A Decided Improvement Manifest in the
Past Few Days.
Mere Gold Coming-The Bank Of Eng
lands ActiOn-Proposed Amend
nent to the Banking Law.

There has been a decided Improvement in
the financial situation during the past few
days. due to natural causes aided In no
small measure by the efforts Of the national
banks to increase the volume of the cur
rency. Imports Of gold on a large scale are
now well under way, and 1t is estimated
that 50. 000, 900 In gold will reach these shores
from Europe during the next week. En-
gagements Of specie In London, for ship
ment by today's steamers. aggregate $6, ZOO.
900. in addition to which there is about
$2,O0O.0 900 now in transit. Nearly 100000 of
imported gold was received at the New
York assay office yesterday. and served to
bring the governments gold balance once
more above the $40. 900 reserve limit.
Action of the Bank Of England.
This favorable movement has been factli-
tated by the adoption by the Bank of Eng
land Of fairly liberal policy in the matter
Of supplying current demands at London for
gold particularly American coin for ship
ment to the United States. and also by the
collapse Of speculative movements In bread
stuffs and provisions In this country. 1t La
understood that the Bank of England was
induced to lower its price for eagles and
double eagles by the certainty that 1t would
soon be compelled to part with q considera-
bic portion Of its reserve incidental to a
heavy movement of food products from the
United States. and further by representa-
tons from leading bankers here that a few
millions Of gold released now would help
business generally much more than a larger
amount later on. Foreign bankers are OF
sod % nun 1hss up the to OF
before 1t experiences much Of an Interrupt
ton. In addition to the prospective relief
tions benefit Is also expected from the ne
gotiations now under way. with every pros
pect Of success, for the sale by number
Of the savings banks Of a part Of their hold
ings Of government bonds to certain Of the
national banks that wish to acquire round
amounts at about current quotations as a
basis for taking out new circulation or add
Ing to that which they already have. A
number of the banks have recently In
creased their circulation up to the limits al
In the same direction.
To Increase Bank Circulation.
In order to assist in increasing the cir
culation in this way It is proposed to Sc
cure If possible an amendment to the ma
tional banking law which will permit the
banks to issue notes up to the par value OF
cure circulation. The immediate effect OF
such an amendment would be an increase
of over $4,000. 900 on the circulation now out
standing. As already stated in The Star
the natural increase during July was S. 041,-
900. The increase for this month win prob
ably be greater than that Of last month. A
strong argument in favor OF extending the
issue Of national bank notes Is that the
money thus provided, to a certain extent,
will take the place Of treasury notes. IT,
sued in payment Of silver bullion should
the Sherman silver law be repealed at the
approaching session of Congress.
The Secretary's Order.
An order was issued by the Treasury De
partment late yesterday afternoon. raising
to par Of security the authorized balance OF
the $50 national bank repositories In differ
ent parts Of the country. 1t Is expected
that this action will release to the banks
about $9O0. 900. and IL Intended as far as
practicable to relieve the financial strin.
gency prevailing In the country. Accord
Ing to the former regulations each deposi.
tory bank was permitted to hold govern
ment funds to the extent OF from 30 to 81
per cent Of the United States bonds de-
posted to secure the same. This action OF
the treasury permits them to hold govern.
nent funds to the par value Of government
bonds on deposit, and It Is believed Will
have the effect In a slight degree at least OF
improving the financial situation.
silver Purchases Today.
Acting Director Preston Of the mint bu.
reau today purchased 14s. 900 ounces of sill
yer At $0.70eo. the counter offer made b,
him for the silver offered yesterday at q
higher rate. Cable advices from London
show an Improvement In the silver market
silver being quoted today at $oT17s Mr.
Preston said that II he was buying today
he would pay as high as $o71+o.