The Providence news. (Providence [R.I.]) 1891-1906, 1893-08-07
Great Improvement In the Tone Of the
Money Market
VERY HEAVY RECEIPTS OF GOLD
VIII Soon Relieve the Present Scarcity OF
Currency and Everybody Is Hopeful
That tho Worst Has Been Expert
enccd.

New YORK. Aug 7-The financial COM
munity, and, to an extent, the public gen.
orally, has begun to cherish hopes OF re-
lief from present conditions because of
the heavy imports of gold now under way
and the assembling of congress today for
the special purpose of dealing with the
financial situation.
OF the local or speculative factors that
have contributed TO the sharp advance in
prices on the Stock Exchange during the
last few days it is hardly necessary to
speak The short interest appears to
have been shifted from one class of opera
tors TO another rather than materially re-
duced. Evidence that this is so may be
found in the borrowing demand for stocks,
which is so great that practically every
active stock commands a premium for use.
The sharp advance in prices appears to
have affected investment buying unfavor-
ably, and 1t is quite possible that il has
tempted some actual buyers OF securities
to accept
Unexpectedly Quick Profits.
Saturdays market was in harmony with
the events of the week, both in and out of
Wall street. Fluctuations were wide and
the course OF prices crratic. Early depres-
sion was followed by a sudden advance,
which in number of the active stocks ex-
ceeded per cent and few exceeded per
cent.
Then came the bank statement, show
ing changes OF extraordinary magnitude,
all of an unfavorable character. In con-
sequence, the Improvement was in many
cases lost. Stll, only few OF the net de-
clnes were important
On the other hand, a number, including
Western Union, General Electric and
Louisville and Nashville, closed higher.
The statement Of averages of the clear
ing house banks shows loss in lawful
money of Sl2, 100000. In the deposits this
loss is partially offset by an increase of
S:,250,U 100 in the loans The difference be-
tween the two items mentioned is now
S35, 600, 000; that Is, the average loans are
that much larger than the average de-
posits The net result is a deficit OF Sl4,-
100000 in the surplus reserve, of which
$4,000 600 is duo to last weeks operations
The Loss In Cash
is believed to be due principally to the pur-
chase by the banks of government bonds
from the savings banks and the withhold
ing by the last named Of the money SO re-
ceived from banks of deposit. It is obvious
that unless further and unexpected drains
are made upon the banks next week, they
will be able to strengthen their position
by the amount of gold which will arrive
from Europe. and which is now estimated
at Sl4.000,000
AS compared with tho final prices Of
week ago Saturday, the entire list is
higher.
The demand for small bills and coin Is
not lesscned. Ia fact the money brokers
report larger business than ever. They
continue to buy gold and silver and cur
rency ut premiums of l-2 TO "a of per
cent, and send the money so obtained to
banks all over the country, but principally
to Chicago, Philadelphia and Boston
They also report that many Of the New
York banks are among their customers,
being forced into the market by the de-
mands of their depositors.
1t was reported on good authority, al
though Wall street was sceptical as to the
truth Of the story, that such of the gold
now afloat for this country as had not
been secured by the savings banks had
been
Sold to Out-of-Town Banks
at premium of 1-2 per cent The larger