The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-06-15
Question Of Issuing Certificates in Lieu Of
Cash. TO Tide Over the S,ringency, Discussed
by the Clearing House Committee.
Many Banks Forced 10 Call in Loans
to Maintain Their Lawful Reserve.
Western Saving Institutions FOrtifying
Themselves-Tressury Stock Of Gold In
creaslng-The Daily List of Failures.
MONEY FLOWING WESTWARD.

New York Banks Affected by Heavy Ship
ments of Currency To the Interior.
NEW YORK, June 14.-The shipment Of
currency to the West and South by New
York city banks was continued to-day. aud
excited much comment In financial circles.
The amount sent out yesterday was esti-
mated at more than one million dollars.
and another million was ordered to-day.
When asked as to the cause for this large
shipment of currency, which is manly TO
the West Ithe amount sent out within the
last ten days Is believed to exceed four
teen million dollars) bankers agreed in say
ing that the demand was largely Cue TO the
distrust prevailing everywhere in this
country, especially in the West. where
there have been q great many failures. both
of banks and commercial houses.
The stringency of the money
market is being experienced az
both ends OF the line now. The savings
banks. as well as other banks out West
are all fortifying themselves as much as
possible. and that especially in the case Of
the country savings banks is causing q
boarding of money in those places. and q
consequent drain upon the banks of New
York city. As a result of this many New
York banks are being compelled TO call In
loans In order to maintain their lawful re-
serve. Their lines of discount and time
loans are practically fixed SO that they
cannot be disturbed, and so they have no
alternative but TO ask for payment of their
call loans. in case their maturities do not
meet their daily needs. The sending forth
of wheat. 1t is believed, will only accouns
for a very small part of the demand for
aat ma
Unired States treasury took 81, ,000. 600 from
the banks as the net result of the weeks
operations, but this week it is expected
the banks will gain at least 81. 600. 900 from
the treasury. and very probably more next
week. as the payment OF pensions has be-
gun. and will reach Its height next week.
AS an indication OF how the money striIi-
gency is affecting trade in all its rsmifca-
tions. it was reported in Wall street to-day
that three large mercantile houses IN CHI
'cago were endeavoring to get extensions IN
this city from wholesale houses, of which
they had bought goods. Another indies-
tion of the stSingency IL the fact that
large mercantile house in this city. of first
class credit and abundant assets had 20
pay II per cent for extension TO tide it
over tight place. The lack OF buying is
also reported to be one of the un fav orale
conditions noticed by large wholesale
houses in this city, and it Is generally at
tributed TO the curtailments of credits the
bad state of affairs in the West. aud gen.
confidence.
IF merchants here or elsewhere cannot
meet their current obligations" said one
bank officer, they cannot very well bny
more goods except on credit, and this is
precisely the condition existing all over
the country to-day. The liquidation must
perforce continue. and when confidence is
restored busines will look mp again."
There was q meeting OF the clearing
house committee to-day. The meeting was
q special one and lasted more than two
hours. None Of the members would say
why the meeting was called or what was
done, but later In the day it was stated
from reliable source that the question Of
issuing clearing house certificates as q
makeshift In the absence of ready cash
was the subject of discussion. So far as
can be learned, the committee did not
decide to Issue certificates, the matter
going over TO q second meeting TO be held
tomorrow.
Dealers say the transactions in govern
ment bonds lately, have been little In
excess of the usual amount. They amount
to about one and @ half million in the last
fortnight The supply has come chiefly
from the West. and. no doubt. represents
sales by savings banks and other institu-
ttons. There has been very little supply
from nearby institutions. The total
am cunt sold by Eastern institutions will
pro ooably not amount to moro than $500 900
or S400. 600 for she period noted. There has
been decline of about per cent. In the
price.