The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-06-16
LOAN CERTIFICATES READY.
CLEARING HOUSE RANKS PUT A LOAN
COMMITTEE IN CHARGE.

| COMMITTEE IN CHAhSh'
| They Came within an Ace OF Asking Presi-
| dent Cleveland TO Convene Congress I'm
| mediateiy-Many BANKERS strongly Favor
such n Courre-Phiindeiphin Follows New
| FORKS Lcad-The situation BIT Easier.
At q special meeting o! tho Associated Banks
| OF this city held at noon yesterday, the unani-
nous report OF the Clearing House Committee
agreed upon on wednesday was accepted and
tho following resolution was adopted:
R,.,,r,d. That committee OF i've be appointed by
the Chair with the rresdeni. to receive from banks.
members OF tho association. bills receivable and other
securities to be approved by said committee. who shall
he authorized issu,. therefor, to such dcpositn<
banks loan certificate bearing interest at rer
per annum and svct loan certificates shall not he In
excess 10 per OF tho market value OF the
rites or bills deposited aud such certin
Gates shall be receisi and paid In settlement OF bal
anoes at the Coar AZ House ana ali the rules aud regu.
laons heretofore adopted In the issue of such certn
| Gates shall be in torcs on tho prosent Issue.
The Loan Committee appointed ia "a follows:
+. d. Tarpcr Chairman; l.. II. Perkins, Jr, ].
| Edward Simmons. Ii. W. Cannon, W. A. Nash.
and &. G. Williams.
Tho meeting was unusually well attended.
nearly every bank in the Clearing House being
| Represented by its President. There was no
| special discussion, and. OF course, no oppose
| ton TO tho policy which tho Clearing House
| Commitoc had doomed 10 be eXpcdicnt Tho
| Loan Committee IL identical with tho Clearing
! House Committed but differs in its orgnniza-
| ton in that Mr. Happen is tho Chairman.
| was tho intention Of tho Clearing House
| Committee that it's action on Wednesday
| Should not become public until after tho
Meeting of the Associated Banks yesterday.
Fortunately for them and for the business
community generally. their intentions were
! thwarted: fo- 1t is almost n certainty that 10
the public had obtained It's information OF
what tho banks contem plated doing in II frag
mantarv way during business hours yestcr-
day it would hare become unnecessarily
alarmed. BESIDES, 1t would have been mpos-
sible to convey to tho public Immediately after
Yesterdays meeting the motives and reasons
that lod the banks to resort TO an issue OF loan
certificates.
As it was. the public wns well informed
through The Sun Of the proposed action by
the banks and their reasons for taking it
The situation was presented In way that re-
moved any possible cause for alarm. and even
on tho Stock Exchange. where the bears en-
deavorcd to create the impression that the
course OF the banks was an evidence OF weak
moss. n moro confident feeling was reflected.
Wall street saw at once that tho banks had
tho best interests Of their customers, instead
ofwaiting until they should DO compelled to
tnGe concerted action by n moro trying situa-
ton shan exists at present
The hope was generally Expressed that othor
prominent business centres would Immediately
follow the example set by the banks of this city.
Before tho close Of banking hours word came
from Philadelphia that the Clearing House
there had decided to ISSUE loan certificates.
Adviccs from Boston were. however, that the
banks there did not favor the scheme. This is
hardly credible, since the money market at
Boston is working closer than at this city. Chi
cngo was heard from. commenting tho action
OF tho New York banks. hut it remains to 10
shown whether the vainElorioua Hnancicrs OF
the Windy City will SEQ the dcsirabity of unity
OF action.
Now that the banks have decided to co.
operate. the publication OF n detailed state
ment Of their condition on Saturda7 will DO
discontinued until the last OF the certificates
which may be issued shall have been retired.
The situation generally was an improving one
yesterday. The number OF failures reported
was smaller than fer II number OF days past
and no runs upon savings banks or other IL
nancial institutions were reported. reduc-
ton in the Bank OF England ratio OF discount
to 2h per cent. helped to depress the market
was demornlized under the pressure to sell
bills aud 1t also encouraged some buying OF
stocks here for London account
On the Stock Exchange prices were as rule
well maintained. though the call money mar
ket was active throughout. This activity may
have been due II part to the fact that several
million dollars were called in yesterday to
mako payments on account OF the Long Island
Traction Company's purchase OF the Brooklyn
City Railroad. This money however. will find
its way back to Wall street within n day or
two. Tho amount OF currency taken from the
Suh-Treasury for shipment was much smaller
than on any day OF late. being 100000. There
was also little less pressure upon the banks
from the interior.
The amount OF Clearing House certificates
Issued in 1879 was S26G55. 900. extending
over period from Sept %. 1873. to Jan. II.
1874.
Tho amount issued In 1894 was S249l5.oOo.
extending from May II. 1884. to June g. 1884:
and the failure Of the Metropolitan Bank kept
some OF the certificates out beyond the latter
date. In 1890 the amount o! certificates
issued was SlG.64J oOC, from Nov. l.. 1880. to
Feb. Z. 1891. and tho failure of the North
River Bank kept some OF the certificates out
little beyond that date.