Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1893-06-30
CLEARING HOUSE CERTIFICATES
}Taken Dat by New YORK Banks TO Help
Out OF the Money Panic.

Out OF the Money Panic.
New YORK, June 29.-The rates for
money which mounted skyward this
S morning, as much as rs per cent being
duoted In the forenoon, broke In che
1oSt unexpected manner ah0ut midday
g the result OF the action OF the clear
ng house loan committee.
This morning the committee, or rath-
r a majority Of them, in conjunction
with Geo. F. Baker, President OF the
4 First National Bank, virtually formed
syndicate by agreeing to take out
ot OF clearing house loan certificates
lor the purpose OF putting stop TO the
Ugh rates for money and the panic that
Virtually existed in the money market
Some Of the banks, the Gallatin and
Ahe Fourth National for instance, had
bever taken out loan certificates before,
Ind they had no need 10 do so now, ex
sept for the moral effect 20 be produced
/therebY BY taking out certificates,
.khough, 1t enables them to lend large
sums of money without intrenching up
on the cash in their vaults. All Of them
have their required lawful reserve of 25
per cent. Of their deposits.
As result of the committees delib-
Grafton this morning an issue Of S9,000,-
600 OF certificates was authorized, and
all the members of the loan committee
availed themselves Of the opportunity
in proportion to their capital, except
the Chemical and Importers and Trad
ers' National banks.
The amounts thus taken were as fol-
lows: Gallatin National bank, $500, coo;
Fourth National bank, 81, 600, 900; Chase
National bank, $1,000, 600; Corn Ex-
change bank, $500, 900; First National
bank. $500, 600; total, 5000, 900,
Immediately after the issue of certif-
Gates was authorized, II. p. Frothing
ham. representing some Of the banks,
lent SO, 0OO, 900 on the stock exchange
at one-eighth Of one per cent. and in
tsrest, and the rate Immediately fell to
6 per cent, afterwards increasing to 10
per cent, and then falling at ? o'clock
TO per cent.
Mr.. Tappen, President Of the Gala
tin Bank, frankly admitted that his
bank had taken out million dollars of
n certificates, but declined to state
b names of the other banks which had
ne so. Ia accordance with the rule of
s b committee. however, he said the
mmittee had to-day authorized the
sue OF $4,000, 600 certificates, which
ade about SIS. .OO0 600 issued altoGeth-
20. In explanation Of to-day's action,
r. Tappen said:
s'No money was TO be obtained this
morning at any price, and the commit
tee thought it was time something
should be done, This bank took out
$500, 600 Of certificates, not because We.
needed them, but to break up the high
rate for money. Other banks took out
large amount, but you must get the
names from them"
Mr.. Simmons, President Of the Fourth
National Bank, said: This bank did
not need the Certificates nor money, but
Il seemed to me necessary that some
action should be taken to give relief to
the pressing demands OF the merchants
and to stop this unreasonable money
panic. This morning our cash on hand
and our call loans exceedd GO per cent.
OF our deposits"
The stock market enjoyed boom in
prices as result of the Clearing House
committees action and the relief was
general.
4 The condition of affairs In Philadel-
,his banking circles, in connection
with their accounts with banks in this
city, to which attention was called in
these dispatches q couple Of days ago,
rs becoming more marked. According
TO advices received from PhlladeIphis
this morning New York exchange in
Nat city is at q premium Of IS for 81, 600
81 u half cent on the dollar. Several
arge banks In this city have large
balances owing to them in Phila-
kphla banks. whilaMah8Alatfer are
& pc q - sir ~.