New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-21
PART II.
JUNE Fl, 1893.
NOW THE ICE Is BROKEN.
THE BANK OF COMMERCE TO GET CLEAR
ING HOUSE CERTIFICATES
TT APPLIES FOR 100000 OF THEM TO EN-
COURAGE INSTITUTIONS WHICH



COURAGE INSTITUTIONS WHICH
REALLY NEED CASH.
Although the shipments OF currency TO the interior
s,ockened somewhat yesterday, the pressure for re-
discounts from the outof-town banks shows no sign
NJ relaxation The local demands were urgent ana
are likely continue. owing 10 the maturing oil
millions OF mercantile paper Iii the next few weeks
Cor which extensions already beug freely re
ouested The city banks are beginning 10
,p,.rpose objections 10 the tremendous drain oil
cash by their country correspondents. Applicants
for accommodation being refused except In cases
Of extreme necessity, and some OF the oanhS are
declining TO ship funds, while being willing 10 eX'
tend credits that may be used through Clearing
House settlements. a wcllknown bank president
said
The trouble with the situation is too deep seated
TO be cured BY carting currency from one point to
another. New. York cannot undertake to nhahce the
affairs OF the whole country ana supply All 'he
currency the Nation needs The banks IN diHereht
parts of the country should act in unison and attempt
10 restore confidence complete necessary hlulaa
tons without recourse to cash from this city. Inc
resolution to issue Clearing House certificates was
not intended to facilitate the outside demand OIL New
York. II designed TO prevent weakness ia the
situation here and allay anxiety. and the banks
in other reserve cities ought to follow the example
and act. each locality Tor itself. in removing or
lessening distrust."
The directors OF the National Bank OF Commerce
yesterday took the same action they did in 1850,
when Clearing House certificates were authorized
A special meeting was held, and J. pierpon Morgan
offered the following resolution. which was mani
Iously adopted:
Resolved. That in order TO encourage a more
general taking of Clearing House certificates, and
with view Of affcrdins facilities solvent borrowers
the officers of the Dank be instructed to apply for
81 100000 Clearing House certificates
The officers OF the National Bank OF Commerce say
that OF necessity exists for this step, which
Is taken only TO encourage smaller banks to avail
themselves OF these certificates If their need
1, be strengthened. 1t is believed that confidence
will be helped by the attitude of the bank The
National Bank of Commerce has capital OF 100000
and a surplus of SO 664,3CO. According 10 the LAST
detailed statement lthat OF June 10 ii held 81 1905
deposits. its average LOANS were Sio3l6lOO and
ii held 81 .525 800 in specie and S'o69C00 in legal
tenders. It's percentage of reserve to liabilities was
o6 Der cent The Board OF Directors includes
j. Perpoa Morgan William Libbey Frederick sturges,
Charles Laner, Charles II. Russell, Alexander +.
Orr, John ;. Kennedy and Woodbury. LancdoD. The
president Is W. ". sherman. and the cashier is William
{. Duvall. This Is the first official Application tht
has been made for the issue OF Clearing House ter
Gates, but II Is believed thdt there VIII De Il hre'i
issue this week.
Tie sub Treasury exchanged 900 small notes
for large but there was abou, s.5Oooo intended for
use over the of the banks. The treasury
also gained $4,000 gold on orders ior iansci OF
currency at Francisco. The total ehpme Is ol
currency TO the interior yesterday were estimated
late 70 be- executed r. the afternoon The demand
from the West has fallen of somewhat, but the
South asked for ronnd lots OF mosS q nn oendh"
Gull loan market AT the stock Exchange was strong
foreign exchanges Continued dcmorallzed and quota
tons fur1h reduced There l. no expectation
of influx OF gold from Europe as 'he condilon
stringency.