The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-08-24
BUYING SILVER WITH GOLD.
A Savannah Firm Getting Currency
Without a Premium.

Importing Gold and Trading 1t to the
United States Treasury for Silver,
Getting the Latter Shipped Free.
Boston Offering CURRENCY at Auction.
Causes Of the Situation.
The movement of the money market is
watched just now by the financial world
with considerable interest, especially so
as the time draws nearer for marketing
crops, when ready money will be required
in large quantities.
From all reports here, the tendency of
the money market in New York and else
where seemed easier yesterday, though
the premium on gold and currency re-
manned about the same, II per cent. on
both. There was no difference in the
price of exchange.
Exchange is being used just now to do
a large part of the business of the coun-
try, and cash transactions are few. The
naval stores men find it as easy to do
their business in New York exchange, as
they make their contracts for purchases
that way.
BOSTON OFFERS MONEY.
To all appearances, money in Boston is
becoming a drug on the market. Several
offers were received here yesterday from
Boston, asking what the bankers and
merchants would pay for currency. In
other words they were trying to auction
it off to the highest bidder
This accumulation of extra money in
Boston was brought about in a peculiar
way as one of the results of the monetary
stringency When the lack of confidence
in the situation first became apparent,
there5 were instituted a series of gradual
runs on the savings banks in New York.
Boston and other points. People with
drew their money from these banks and
put 1t IN safety deposit boxes.
The result was number
of these savings banks found
themselves temporarily embarrassed and
they had to dispose of some of their most
valuable assets. These consisted in large
part of government bonds, a great many
of which were bought up by the national
banks of Boston, at price below the
market value. These banks then de-
posted these bonds at Washington and
issued their notes against them. The
consequence is they have large amount
Of currency on hand and are Offering it
for sale at different points in the country.
MONEY WITHOUT THE PREMIUM.
1t seems that there is a way to get the
cash when it is needed without paying
the premium.
Awel known firm of cotton factors in
the city has been sharp enough to get
money for use in moving its cotton in this
way. The firm obtained gold
from England which it instructed
its bankers in New York to deposit with
the United States assistant treasurer
there and he shipped silver in exchange
for the gold free Of charge. The United
States treasury will ship silver on these
terms at any time without any charge
whatever. This firm has obtained a
large amount of money in this way. They
received the first shipment of $4,000 in
silver yesterday.
1t seems that the money brokers are
largely responsible for the situation.
They withdrew their money in large
quantities from the banks and put
it IN safety deposit boxes Then
when the situation became urgent they
took their money and sold it to the banks
at premium, taking in return certified
checks, which, of course, will be honored
as soon as money goes to par Now that
most of their money is in the hands of the
banks and they are holding certified
checks against it, they, too, are looking
for and urging change in the situation
in order that they can get hold of their
cash again.