St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-27


about the street. when asked as to their
truth. pointed for an answer to the
verse for the day on the calendar,
which read as follows: ITO answer an
idle rumor is to confirm it in the mind
of many. Why go into the dock when
you have never been summoned"
Today's Philadelphia Press publishes
the circular letter sent by New
York bank to its dealers, informing
them of the difficulty that now exists in
collecting drafts on Philadelphia, and
declares that ";he statement, so far as it
reflects on any Philadelphia bank, is
false and unjust"
The Press also says that the
New Work Banks
owe Philadelphia banks about s9.000,-
600, while the Philadelphia banks owe
the New York banks S6,0O0,00
Assuming that the latter statement
is true" said New York banker today
to reporter, "that does not alter the
condition of affairs as already described.
The money which New York banks
owe the Philadelphia banks is mainly
on reserve accounts, which cannot be
charged against for drafts sent to Phila-
delphia for collection The money
which the Philadelphia banks owe
the New York banks is for drafts
sent to them for collection, and the
money for which they have received
but not remitted to US. The reason
they give for not remitting us the money
is they cannot get New York exchange
except at high rate or commission, and
they cannot spare the currency. Yet
they boast OF cash reserve Of more
than 3S per cent. That New York
banks do not complain without just
cause is seen by the fact that Philadel-
phia banks have asked that no more
drafts De sent to them for collection"
One Well-knOwn national bank, which
was owed 100000 by one PHILADELPHIA
bank on account collections, received a
check on its rererve account this morn
ing for S50O.000 in part payment or the
debt, thus leaving 100000 still owing.
a dispatch from Philadelphia today
says: The banks here assume the
position that the banks III New York
owe this city far more than Philadel-
phia is indebted to them, and that the
whole question is as to who shall pay
the premium for exchange, and does not
imply any weakness whatever on the
part of Philadelphia banks. The rate
for New York exchange has averaged
50 per $1,000 for several weeks, and i'll
consequence Philadelphia is consider
ably out of pocket"
a president of one of the leading
banks stated that if New York would
Pay This Premium
it could get Immediate settlement for its
collection accounts. Philadelphia banks
are in exceptionally good condition, and
today had over 30 per cent reserve.
The Post, summing up the situation.
tonight says: 'In its violence ana
helplessness of liquidation the market
of the present week has not been
paraileled since 1878. But people will
be wiser if in such comparison they ex-
anime rather the striking points of diff
ference than surface resemblances.
First and foremost, the collapse of
twenty years again followed immedi-
ateIy on the heels OF wide and universal
speculation. There are shifting sands
in the financial groundwork of TODAY.
but the fabrics built upon them went
down for the most part long ago. Lon
don, whose operations were source of
terror TO the markets of 1878. is the fore
most present factor of support. The
storm which Frustrated English credits
and which sent up the London bank
rate in October, 1878. from 8 to 9 per
cent, came, indeed. to this later epoch,
but 1t came and passed over to
the financial horizon of years
since. There are hard. pressed cor
porationS now, as there were then, and
some of them nave already fallen, but
their notes do not carry, as they did in
1878. the Endorsements Of scores of
powerful banking houses. The panic
of 1878, it is shown, caught the two
chief credit nations unprepared. This
year each had its house IN order. There
is all answer, too, in the history of 1873.
to the despondent query now so com
mon-What is to turn the tide? The
tide turned twenty years ago as sudden
ly as the deluge of liquidation had be-
gun. The market first resisted, then
steadied, and at length within a month
returned abruptly to normal conditions
simply because a point at last was
reached when financial reason mastered
financial insanity. Neither a repeal
bill nor sudden renewal of gold I'M
ports served then to mark the change.
but liquidation simply exhausted itself,
hoarders of money suddenly appeared
as buyers, and with as little warning as
that which marked its beginning, the
panic ended"