St. Paul daily globe., 1893-06-15
Shipments Of Currency Ex-
citing Comment in Goth
am Financial Circles.
Western and Southern Bank
ers Drawing on Their
New York Reserves.
Pension Payments Will Soon
Let Loose a Lot Of
Funds.
The Treasury Gained More
Thar $2.OOO,OOO in Gold
In Three Days.

NEW YORK, June IA The shipment
of currency to the West and South by
New York banks was continued today.
and excited much comment in financial
circles. The amount sent out yeSter-
day was estimated at more than Sl,000,
coo, and another million was ordered to-
day. When asked as to the cause of
this large shipment of currency, which
is mainly to the West (the amount sent
ont within the past ten days is believed
to exceed Sl4,O00,0OO), bankers agreed in
saying that the demand was largely due
TO the distrust prevailing everywhere
in this country, especially in the West,
where there have been great many
failures. both of banks and of CONNER
cial houses.
The StriDgency of the money market
is being experienced at both ends of the
line now. The savings banks. as we'll
as other banks out West, are all fortify-
ing themselves as much as possible, and
that, especially in the case of the cOun-
try savings banks, Is causing boarding
OF money In those places. and
a Consequent Drain
upon the banks of New York city. AS
result OF this many New J ork banks
are being compelled to call in loans in
order to maintain their lawful reserve.
Their lines OF discount and time loans
are practically fixed so that they cannot
be disturbed, and so they have no alter
native but to ask for the payment Of
their call loans in case theil maturities
do not meet their daily needs. The
sending forward of wheat it is believed.
will only account for very small part
Of the demand for currency from the.
West. Last week the United States
treasury took S1,000,000 from the banks
as the result of the weeks operations,
but this week it is expected that the
banks will gain at least Sl,000,000 from
the treasury, and very probably more
next week, as the payment of pensions
has begun and will reach its height
next week.
As an indication of how this none
tary Stringency Is affecting trade in all
its ramificatiOns, it was reported in Wall
street today that three large mercantile
houses In Chicago were endeavoring to
get extensions in this city from whole
sale houses of which they had bought
goods. Another indication of the strin-
gencY is the fact that large mercantile
AlOuSC III Iillo Cllys VI uloL-CldSS iCulG
and
Abundant Assets
had to pay ~ per cent for extension
to tide it over tight place. The lack
OF buying is also reported to be one of
the unfavOra6le conditions noticed by
large wholesale houses in this city, and
it is generally attributed to the curtail-
ments of credits, the bad state of affairs
in the West, and generally to the money
stringency and lack of confidence.
"lf merchants here or elsewhere can
not meet their current obligations" said
one bank officer, they cannot very we'll
buy more goods, except on credit, and
this is precisely the condition existing
all over the country today. The liquida
ton must perforce continue, and, when
confidence is restored, business will look
up again."
Dealers say the transactions in gov
ernment bonds lately have been little
in excess of the usual amount. They
amount to about Sl,500,000 in the last
fortnight. The supply has come chiefly
from the West, and no doubt represents
sales by savings banks and other insti-
tutions. There has been very little sup
ply from nearby institutions. The total
amount sold by Eastern institutions will
probably not amount to more than
100000 or 100000 in the period. There
has been a decline of about l per cent
In the price.