The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1893-06-19
THE MONEY GOING WEST
Over $I,25o, 900 Shipped From
New York in One Day.
THE OPERATIONS IN WALL STREET.

Commission Houses Refuse TO Encourage
Speculative Acoounts-A Loss of SEA-
OOO,OOO in Cash Sustained During the
Past Three weels-Now Yorlt's Clearing
House Plan May be Followed.
New York, June 19,-Operations in Wall
street at the present time are contradicted
owing TO the condition of the money mar
ket The commission houses, instead of
encouraging an extension of speculative
accounts, have taken exactly the opposite
course, knowing as they do that their
safety lies in a curtailment of business
just so long as the conditions operating in
favor of tight money remain in force
Their idea is to have matters in such shape
that whatever may befall weak concerns
they will not be at the mercy of lenders
The New York city banks and other finan-
cial institutions have had to stand a most
extraordinary drain of currency. They
have sustained a loss in cash during the
last threee weeks of over S24, 900, 900. The
bulk Of this money has gone west, where
the stain has been greater than in the east
and this being the case there is little won
der that the policy of Chicago banks has
been severely criticised in financial circles
here.
While the out-of-town demands are
largely responsible for the depletion OF
the New York bank reserves, it is well
known that the savings institutions here
have been fortifying themselves as far as
possible in order to be fully prepared for
an emergency should one arise. While
these preparations necessarily entail hard
ships UPON the Clearing House Associa-
ton, they will in the end prove great as
| sistance to the financial and commercial
community as well as to savings bank de-
positors.
The Clearing House committee got to-
gether and after a lengthy discussion de-
cided to put in force the policy adopted in
the panics of $780, 1884 and 1878. This
time, instead Of waiting until such a re
course was their only salvation, they con
cluded that it was the part of wisdom to
ward off possible disaster by giving the
business public ample notice that so far as
the banks are concerned they mean to
stand shoulder TO shoulder Their example
will probably be followed by other clearing
houses, save, perhaps, in Chicago, where
the banks pride themselves upon their
/
ing to the issue of certificates.
The shipments from this point Saturday
were estimated at more than 81 $50, 900
and the calls still continue. 1t will be
seen from this that the immed3 tie future
Of the loan market is surrouk led with
much uncertainty, and that Hjeculators
will have to take back seat until the
commercial world is placed at case.
The rates for call money have jumped
around in lively fashion. Business in time
loans fell to a minimum, those having
funds desiring TO keep them within easy
reach. Moreover, call money pays better
than the other. The only offset to the
stringency is the Generalization of the for
oign exchanges, which have declined stead
lily until they have got within fraction of
the figures at which gold can be imported
from Europe.
The existing business troubles have re-
suited in an enormous shrinkage in inn
ports of merchandise and will probably
leep the arrivals of goods down to very
ow limit for some time to come. Exports
If domestic products on the other hand
nave increasea and still bid fair to grow
arger as prices are exceptionally low and
,e crop prospects in Europe are anything
jut fattering. These conditions may at
ract gold to this side later on, but unless
money rules very close and foreign bank
RS find that they can place funds here to
advantage for a considerable length of
time no important influx of the yellow
.netal need be looked for.
The long list of mercantile failures and
the prevailing distress in business circles
continually lead to rumors about an extra
session of congress in July, but they can
be traced to no trustworthy source The
monetary situation is aggravated at the
moment by the necessities of corporations
having interest and dividend obligations to
meet on the first of the coming month.
When these are provided for and the money
returns to the ordinary channels of circula
ton much of the apprehension now felt
will vanish.
In view of the money pressure it is graf
flying to be able to report progress in the
work of rehabilitating Richmond Term
inal, National Cordage, Distilling and Cat
tie Feeding and other concerns which were
forced to the wall by loose management
In all such cases large sums have to be
raised and the hostility of strong interests
overcome
The outcome of the Reading plan is still
Il matter Of conjecture but doubts upon
this point will soon be set at rest, mas
much as the management will have to
show it's hand in the event of the adoption
or rejection of the plan.
OF the stock market there is little to be
said. As already remarked, the commits
sion houses do not court new speculative
accounts preferring to wait until the
monetary outlook is clearer The Eastern
and Western trunk lines are enjoying a
splendid traffic and some of the smalley
companies like Chicago and Eastern IL
linois, Buffalo, Rochester and PittsburS
and Pittsburg and Western, are making
returns which fully satisfy holders.