St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-01
Action Of New York Banks
Having a Very Good
Effect.
Money Freely Lent by Insti-'
tutions Taking Out Loan
Certificates.
Efforts to Obtain Gold in
England Meeting With
Poor Success. 4
White Metal Takes a Further
Drop in the London
Market.

New YORK, June 30.-'rhe money
market today was the center of attrac-
ton in financial circles. rather than the
stock market, as result of the united
action of banks represented in the
clearing house committee. The situa-
ton was reported to be much easier in
consequence of the prompt steps taken
by those banks to avert money panic,
and on every hand nothing but praise
was heard for the presidents OF those
banks. John A. Stewart, president of
the United States Trust company, SAID {:
Il think money next week will be COM
paratlvely easy"
The banks which took out certificates
freely lent the money thus made avail
able without decreasing the cash in
their vaults was shown by their debtor
balances at the clearing house this
morning, which. of course. were paid in
loan certificates, which had to be taken
by the banks having credit balances.
Those debtor balances were as follows:
Gallatin National bank, 1921, 600; Fourth
National bank, $500, 900; First National
bank, $3.50, 900; Chase National bank,
s563,000; Corn Exchange bank, S27S, 600.
The two banks the presidents of which
are members of the clearing house loan
committee. but who did not join with
their cOnfreres in taking out any
loan Certificates
are the Importers and Traders Ma
tional bank. and the Chemical National
bank. q. 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 Walisstreet as the banks
which had taken out certificates, a.
though it lent money in Wall street and
has perhaps done as much as some
other banks to relieve the monetary.
stringency. 80
''ln fact" said Mr.. Williams, "our
loans at present are $4,000, 900, which is
more, think, than the loans of any
other bank, and is enough to have out.
We have 1900, coo in cash and really do
not need any certificates. l heartily ap-
proved, however, of the action of those
terday aand voted in favor of it. The
result was undoubtedly very benei-
cial."
The banks took out s4,475, 900 of loan
certificates today, the balance of the
$4,000 900 authorized yesterday, and III
addition to that the clearing house loan
committee authorized 81, 800, 600 more at
their meeting today, which will prob
ably be taken this afternoon, making
the total amount issued to date SIT, $780,
600. The rate for call money this after
noon prior 10 2 o'clock was 50 per cent.
Many loans, however, were renewed
until next Wednesday at rates varying
from 20 to 20 per cent. One of the banks
which took out loan certificates bought
some irSt-ciass
Commercial Paper
at from 10 per cent for bills receivable,
and at from l5 per cent for single name
paper, according to tine and character.
1t was said that there was not much
commercial paper Offering, and it was
argued from the fact that the merchants
are in fairly good shape. Bank officers
reported that the demands from the
country were much lighter in amount,
but the applications were very gener-
ally distributed. 1t was NOTICED that
only very short time paper was being
received. and that was believed to in
dicatc a belief that the strain was about
to end.
No extraordinary currency shipments
to the country were reported this after
noon by the banks, and at the sub
treasury it was said that there had been
10 telegraphic transfers of money to
the country. About 100000 notes of
small denominations had been eX-
changed for gold, OF which only 500, coo
were Tor the country. The feeling of
quotations from London, where all
American securities were higher.
Despite this indication of confidence
across the water in this cOuntry's securi-
ties. Great Britain seemed determined
to hold onto her gold. Efforts OF
local firms to secure any guam
tity of it had so far been
unsuccessful. The result of recent at
tempts of Kuhn, Loeb & Co. in this
direction are typical of the situation.
There was report on the street that
this firm had intended taking S5,000,0 900
of loan certificates and investing the
amount in British bullion for transfer
to America. In part the report is cor
rect, but only to the extent of the en-
deavOr of the house to get gold abroad.
Jacob Schitf, of the firm, explained it
in this way:
Holding on to Their Gold.
"We do want to get gold from the
London market, but we have been try
ing to buy our own account. We have
not attempted to get any of tie loan
certificates. But for some time past we
have tried to purchase gold in London.
OF course we do not go direct to the
Bank of England, but to our customers.
We cannot get American bar gold, as it
Is not to be had in the market to 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 that we
have so far been unable to buy over
there what gold we want"
Presidents Cleveland's action In call
ing an extra session of congress for
Aug. next, thirty days ahead of the.
time generally expected, was decided
the report was not credited for the rea-
son that ever since the crises in the sill
yer and money markets there have been
almost hourly rumorS about an extra
session. The reports have been
denied time and time again. and
Wall street became SO set in IFS
opinion that even wheh it was def
initely announced late in the day that
the. call had been Issued the correctness
OF the aQyices was questioned. When,
finally, bankers aud stock operators
were convinced, there was q decided
feeling of relief, and the consensus of
opinion Was that the tendency OF fian-