The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-11
Treasury Department Endesvoring to Relieve
the Situation by Printing National Bank
Notes and Coming Half-Eagles.
No Apparent Relief from the Increasing
Inflow of Gold from England.
Three More Banks at Nashville Temporarily
Suspendsd-0Brien Wagon Works of
Lafayette in Receivers Hands.


CChhENCI SCAhCEs
High Premiums Paid for Cash by Money
Brokers-Relief from the Treasury.
NEW YORK. Aug. 10.-The noses of men
and concerns who need hard cash are yet
held hard down on the grindstone of cur
rency premiums. Necessity turns the
crank while thrifty money changers and
mIsers of the circulating medium have
their grip on the neck of the stu alton. The
scarcity of currency was very great again
to-day and the money brokers' offices were
thronged with customers who wero selling
their boards at big premiums. 1t is a mat
ter of surprise to many persons that this
scarcity of currency does not show some
signs OF abatement, in view OF the great
amount of gold now on its way to this
country; but, according TO reports. the
premium. paid for any kind of currency
and for gold is higher now than at any
time since the currency famine set In.
Many brokers were getting 4la per cent
for currency and gold to-day on immediate
delivery, and were paying rs high as per
cent. for it. They were contracting to de-
liver gold at 2la per cent. and foreign ex.
change was pr0pOrtlonately strong IN con-
sequence.
4 weilknown bank president said this
morning: New York has SS5 000. 900 In cash
to-day. against s.. 100000 In 1873. In ten
days we will have s17. 600 coo more. and in
fortnight or three weeks we Will have
money enough to give away. 80 to speak.
loose their hoard. That is where the money
is. know one bank with $4,000 capital
that has s65,O0O in cash boarded in its
vaults. That is why money is scarce"
Assistant Secretary of the Treasury w.
Z. Curtis was at the subtreasury all the
afternoon. He had q conference with the
clearin house committee. whom he told
that the Treasury Department was doing
all in Its power to bring the currency fam
inc TO IN end. The time for delivering na.
tional bank notes after the receipt of ap-
plicatlons for them had been reduced from
twenty to fourteen DAYS. and orders for
them were coming In at the rate of Sl0.00O.-
600 q day. The subtreasury at San Fran
cisco had been ordered to send $4,000. 600 in
gold to the subtreasury in New York. The
mint in Philadelphia had been set at work
coming half eagles, for which there was q
large demand. In consequence of the
seere,ty of currency and the many at
tempts that are being made by country
8.
the subtreasurer has fallen back on his
rights under the law and declined to cause
the presentation by hand direct or checks
received by him on New York banks for
currency to be shipped to the remitters of
the checks. The banks prefer this as it
leaves them free to pay such checks or not,
as they please.
No clearinghouse certificates were issned
In this city. The subtreasury's debit bal
ance OF S136. 195 at the clearing house was
paid chiefly in gold. The subtreasury
cashed checks for over 81, SOC, 600 in gold. 1t
paid out In exchange over the counter
100000 OF this sum S50,000 was In silver
There was q large demand for su bsidiary
silver coin. for the reason that it can be
exchanged for any kind of bills. whereas
received. The Treasury Department has
on hand S11.OOO,0O0 in subsidiary sill
ver
Speaking of the reported threats of
certain Chicago banks to send checks
on New York banks by express to this
city and enforce payments in cash, j.
Edward Simmons, president OF the Fourth
National Bank of tins city. said that he
did not believe there was any such friction
between the New York and Chicago banks
as might be inferred from that report.
"Mr. Gage, the president OF the First
National Bank of Chicago" he said. "for
instance. and Mr.. Blair. president of the
Merchants' National Bank OF Chicago, are
ohuhclS Ol on pcIlcuCo anu mcu VI DTO6Q
views. They understand the situation as
well as we do here and will handle it from
the standpoint of practical common sense
and good business judgment"
The Evening Post says: Upwards of
100000 in gold came in by tO-day's En-
glish steamers and more was taken for I'M
port from the Bank of England. This lat
ter amount was. however, comparately
small. q result due partly to the banks ad-
vance in discount rates and In the selling
price OF American coin, and partly to the
fact that no other steamers sail till Satur-
day. This fnanciering on the part
of the banks directors is plainly gov.
erned by the purpose of shifting the
strain from their own gold supply to that
of the Bank of France. which is much bet.
ter able TO meet it. Paris exchange on
London is. indeed. as yesterdays quota
tions showed. sQuarely at the gold chipping
point. Meantime the relief anticipated
here from the shipments of Englsnd's gold
shows itself very slowly. The time money
market shows. however, gratifying signs
OF willingness to renew local loans.
disposition encouraged by the
premium rate fixed by the city
banks on out-of-town renewals. This meas
ure. in fact. vas one of the most justitia IA BILE
steps yet taken. If outside firms or insti-
tutions need accommo datiou badly enough
to pay their IL per cent il is at their COM
mand; if not. they must do without or seek
rediscount elsewhere. The Bank of Eng
land itself adopted precisely this policy in
the crisis of 1890. when it freely supplied
it's regular customers at per cent. and ex.
acted more-an abnormal charge in