The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-08-11
BANKS WON'T PAY OUT CASH.
MONET BROKERS GET As MUCH As
4 PER CENT. PREMIUM FOR 1T.

| Crowds Of Sellers Bring Out Their Hoarded
Currency-The Brokers Think that the
Famine WIN Soon he Over-Me antimc
II Cause. n Great Many Inconvenience.
The currency famine practically m onopolizes
attention in Wall street The Offices of every
firm dealing in currency are now crowded
every day. chiefly by people who want to sell
at the highest possible rates the money tncy
have boarded. The buyers, as q rule. do not
make themselves conspicuous in money
brokers' offices. They are bankers. both in
this city and out OF town. corporations and
other largo employers. They give their orders
by letter or by messenger. and do not wait to
have them fillcd The sellars OF currency
however. visit the money brokers in person.
with the Wow of driving the best bargain pos
sible.
The dealings in currency are not as largo as
might BIO inferred from the premiums paid and
the publicity given to the matter. A conscrv-
ntive estimate is that not over 81 900. 900 a day
changes hards through tho medium of bro
kers. This estimate does not include sales Of
gold coin by bankers who are importing It
from Europe. The selling premium yesterday
was to 1 per cent. early In the day but in the
afternoon the supply and demand were more
evenly balanced. and in consequence rates
wero lower.
In buying currency the brokers drove tho
sharpest bargains they could and paid on
an average about two per cent. They en-
deavor to make about ono per cent on their
aggregate transactions. Tho money brokers
agree that the premium on currency is bring
ing out a good deal Of the money that has
been boarded. They base this opinion upon
the appearance OF many OF tho people from
whom they buy and the condition Of tho
money. II In bills, that they receive. The
premium on currency is attracting q large
amount OF money from Canada One broker
age firm stated yesterday that within the last
few days they had received fully S75o.OOO In
United States coin from different points in
Canada. and also n large amount in bills.
The action Of certain OF the banks in de-
Ginning to give their regular customers even
small amounts of currency IS aggravnting the
situation. Any number OF cases were re-
ported in Wall street Yesterday Of banks that
refused to give regular customers even a few
hundred dollars. although the average bal
ances drawn against were large One firm. it
was said. wanted 5000 for the use OF partner
for pocket money. but the money was refused
to the clerk who undertook to cash the check.
personal interview between the member OF
the firm and the cashier OF the bank Was nee
essary before the money could be obtained.
announcer case WAS tIlht OF n Well-knOwn STOCK
for Sl5O.
it is hardly conceivable that the banks that
are refusing to give their customers any cur
rency whatever have no actual cash on hand.
for the last statement Of the Associated Banks
OOOO00 in gold and legal tenders. and they
probably have some national bank notes AS
Yell dna ARMED ih Wal street thSt if the
demands Of those customers who are not ent
upon making profit by withdrawing their
balances balances in cash the situation would be much
Not all OF the banks refuse absolntely TO cash
that refuse to do so is sufficiently large to pro-
yoke comment; and and It may be said without
fenr OF contradicton that the majority Of the
menta They suspended them so far ~ Clear.
Ing House tettlements are concerned some
policy toward their customers. This being tho
case. 1t seems fair to assume that tho worst
that can happen TO the business community
Money brokers say that they dc. not expect
tho premium on currency , to last long They
will foot up about S23. 0OO, 900 when ali OF the
gold in transit has arrived. and the large in
which for the current month will probably OK.
coed $50 100000. will restore the onsy mar
gs to "a sSHG9 Of IF SGh
sus rom Ths om HaSs WAS
S5.25O.00O In gold. and 81 $40. 900 was securei
in London yesterday for shipment to this
country.
With the view. doubtless. Of checking the
outflow Of gold from London. the Bank OF Eng
land raised its minimum rate OF discount yes
terday to four per cent. and also advanced its
to seventy-si shi ings and ten pence. The
action OF the Bank Of England is not only in
tended to check exports of gold from London,
but also to divert the demand OF this country
for gold to the Bank OF France. which Is much
better able to part with a portion OF its stock
Of gold than the ljank OF England.
AS indicating the character OF tho boarding
banks received telegraphic despatch
~ Nebraska suggesting the. sale of sIOO.-
900 Of currency. The bank referred to
has apparently done what many other
country banks have done. namely en-
deavored to secure currency to mn amount suf-
ficent to pay all OF its depositors in ca sh at q
moments notice. Whenever the prem u m on
currency disappears money boarded In this
The general brokerage account Of thinner.
Simmons Of the Fourth National Bank re.
quest ted the firm to take out OF tho bank sew
eral days ago. and which was then accepted
by the American Exchange NntiOnn! Bank.
was discontinued vest erday by the latter bank.
In other words. the American Exchange Ma |
this. account, Vice President ,Dumont Clarke
given the bank good deal OF trouble. because
OF the many certifcations required by tho |
firm He had. therefore. requested the firm to |
II. and Zimmerman 4 ForshRy then |
gave their account to the Bank OF the State OF
New York.