The herald., 1893-06-30
Big Rates for Call Loans in
New York.
a Clearing House Syndicate tC
the Rescue.
Philadelphia Banks Desperately Hard
Up for Cash.
The Pinch Strongly Felt in Boston
Heavy Transactions in Govern
ment Bonds-Savings Banks
Selling Their Holdings.
By the Associated Press.l


New YoRK. July 29.-The rates for
call loans today reached the highest
figures since the present stringency set
in. They rose to SIG per cent per diem
and interest, equal to about 7419 per
cent per snnum. The pinch was par
ticularly severe this morning. Efforts
were made to have the clearing house
banks take out large amounts OF loan
certificates to tide over the drst OF the
month, a critical period, and they
proved successful, as the banks asked
for and ths loan committee issued So
100000 certificates, the largest amount
for MANY days. There are thus far out
standing certificates to the amount of
$13, $3.50. 900. This relieved the market,
and there was a drop in rate to per
cent per annum, and rally to 20 per
cent.
Dealings in time money and mercan-
tile paper were practically at etand-
still. The stringency in money is de.
moralizing tie sterling exchange market,
and selling rates fell below gold import
ing points. Bankers were liberal sellers
in bills in order to take advantage OF the
higher rates for money.
A CLEARINGHOUSE SYNDICATE.
This morning the clearinghouse COM
mittee virtually formed syndicate by
agreeing to take out lot of clearing
house loan certificates for the purpose
of putting a stop to high rates for
money and the panic that has virtually
existed in the money market. Some
banks. the Gallatin and Fourth National
for instance, had never taken ont loan
certificates before, and had no need to
do go now, except for the moral effect.
BY taking out certificates though, it en-
ables them to lend out large sums OF
money without entrenching the cash in
their vaults. As the result OF the COM
mittee's deliberations, an issue of $9,-
600 900 certificates was authorized, and
all the members of the loan committee
ayniled tnNn1se2sss Of the opportunity
IN proportion TO their capital, except
the Chemical and the Importers and
Traders' National banks. II Is thought
they will take out certificates later.
TRADING IN GOVERNMENT BONDS.
Dealers say transactions in govern
ment bonds were done on An enormous
scale recently. One authority estimates
the sales for the past fortnight by saw
ings banks and kindred institutions at
about $4.000,000. National banks were
the purchasers, and full prices were paid
in every instance.
AFFAIRS IN PHILADELPHIA.
The condition in Philadelphia bank
ing circles is becoming more marked.
According to advices received from Phil
adelphia this morning New York ex-
change in that city fs at half cent on
the dollar. Several large banks in this
city have large balances owing them in
Philadelphia banks which the latter are
unable to remit on account of inability
to procure New York exchange or cur
rency. One New York bank has $780,
coo tied up in Philadelphia in that way !;
another 100000 and another $500, GOO,
and the question is becoming serious
one. Unless Philadelphia banks remit
this week, it is probable, according to
some New York bankers. that discount
will be charged on all Philadelphia ex-
change received from dealers here.
THE STRAIN IN BOSTON.
BosroN, June 29.-The strain on the
financial situation today was severer
than ever. Stocks were demoralized at
the start. Liquidation was extremely
heavy, and under the pressure prices
tumbled badly. Banks were calling
loans on all sides, and some of the best
houses on the street had TO pay abnor-
mally high rates to get carried through.