The Indiana State sentinel., 1893-07-05
EASIER SITUATION AT NEW YORK.
bankers Taking Out Clearing House
Certificates-Other News.

market today was the center of attrac-
tion in financial circles, rather than the
stock market, a result of the united
action of some of the banks represented
on the clearing house committee. The
situation is reported TO be much easier
in consequence of the prompt steps
taken by those banks TO avert a money
panic. This morning a well-known
financier, himself a director in more
than one large national bank, speaking
Of the action of those bank presidents
to a reporter, said: "The action of
Messrs. Simmons. Tappen, Cannon,
Baker and Nash yesterday in taking out
clearing house certificates for their re-
spective banks is highly commendable
| These gentlemen will probably be criti-
-cised by some people for catering to
Wall-st., but, in times like the present.
it is OF the utmost Importance that the
stock market and money market should
be kept in a normal condition For not
withstanding the cry against the street
it is the life blood of the whole country,
and If it's damned up OF the stock ex-
| change is closed. as was the case in '73.
it brings untold disaster upon the coun-
| try. The free movement Of stocks en-
/ loans and owners of securities are az
| forded a quick market, which in these
/ times is very desirable"
John Stewart, president Of the United
States trust company, said: Il think
money next week will be comparatively
easy"
! The banks which took out certificates
! freely lent the money thus made avail
able without decreasing the cash In their
vault rs was shown 10y their debtor bal
| anoes the clearing house this morn
! ing, winch of course. were paid I'm loan
| certificates, which had TO be taken by
| the banks having credit balances. These
/ debtor balances were as follows: Cal
latin national bank, $527.O00; Fourth ma
! uonal bank, $S09,000; First national bank,
| 1880 600; Chase national bank, $563, 600;
| Corn exchange bank, S27S, 600.
The two banks. the presidents Of which
/ are members of the Clearing house lCcn
committee, but who did not join with
! their coEferees in taking out any loan
| certificates, are the Importers and
| Traders national bank and the Chemical
| bank. G.. G.. Williams, president of the
| last named bank, said this morning in
| explanation for doing so, that the
! Chemical bank was not so closely CON
| nected with Wall-st. as the banks which
had taken out certificates, although it
| lent money in Wall-st. and had perhaps
as much as some other banks TO relieve
the monetary stringency
| In fact said Mr.. Williams 'our
! loans at present are $23 600 000 which is
| more, l think, than the loans of any
other bank and is enough 10 have out.
| We have $7,000.000 in cash and really do
| not need any certificates. / heartily ap-
l prove, however, of the action of those
| banks which took out certificates yester-
| day and voted in favor Of it, The re-
suit was undoubtedly very beneficial"
| The banks took out 81, AIS. 900 of loan
| certificates today, the balance of the
! S,OOO00O authorized yesterday and in ad-
| dition to that the clearing house loan
committee authorized $1,5OQ 600 more at
| their meeting today, which will probably
| be taken this afternoon, making the total
| amount ISSUED TO date S17 $50 600. The
rate for call money this afternoon prior
| to o'clock was 35 per cent. Many loans,
| however were renewed until next
| Wednesday at rates varying from 20 to
| 25 per cent.
One of the banks which took out loan
! certificates today bought some first-class
| commercial paper at from 10 per cent
| for bills receivable and at from Is for
single name paper, according to time and
| character. 1t was said that there was
not much commercial paper offering and
ii was argued from that fact that mer-
chants are in fairly good shape.
Bank officers reported that the de-
|
! lighter in amount. but the applications
were very generally distributed. 1t was
| noticed that only very short time paper
was being received and that was believed
to indicate a belief that the strain was
about to end. No extraordinary ship
| ments of country currency were reported
up to midday. No extraordinary cur
rency shipments to the country were re
| ported this afternoon by the banks and
at the sub-treasury IL was said that there
! had been no legal transfers of money
| to the country About $500 900 notes of
small denominations had been exchanged
for gold, Of which only $4,000 were for
the country.
Britain's Grip on Gold.
The feeling OF confidence here was in
creased by the quotations from London,
where all American securities were
higher. Despite this indication of con-
idence across the water in this coun-
try's securities, Great Britain seemed
determined to hold on to her gold Eff
forts of local firms to secure any GUAM
tity of it had so far been unsuccessful.
The result of the recent attempts of
Kuhn, Loebe e. Co. in this direction are
typical of the situation. There was a
report on the street that this firm had
intended taking s5,000.000 of loan certif-
| Gates and investing the amount in
British bullion for transfer to America.
In part the report is correct, but only
to the extent of the endeavor Of the
house to get gold abroad.
Mr.. Jacob Schiff of the firm explained
it in this way:
I'VE do not want to get gold from the
| London market, but we have been try.
| ing to buy on our own account. We
have not attempted to get any of the
loan certificates. But for some time past
we have tried to purchase gold in Lon.
| don. OF course we do not go direct tc
the Bank of England. but to our custom.
ers. We cannot get American bar gold
as it is not TO be had in the market tc
any extent just at present, at least. We
can get English sovereigns but do not
care to take the gold in that form owing
to the exchange. 1t is quite true thai
we have so far been unable to buy ovei
there what gold we want"
The Presidents Action Surprise.
President Cleveland's action in call
ing an extra session OF congress for
Aug. next, thirty days ahead or the
time generally expected, was a decided
surprise in financial circles At first The
report was not credited for the reason
that ever since the sri5.s IN TIE Liver