The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-08-20
CURRENCY STILL SCARCE.
Only a Slight Let Up in The Financial
Situation.

Get for Some Tine 70 Come - He
Thinks Congress win Repeal the
Sherman Silver Purchase Law, But
It VIII Be Conditional Upon the
Coinage Of Silver at Some Ratio Not
Yet Decided Upon.
II may be that cotton merchants will
have to buy the currency with which to
handle the crop, and indeed this is being
done now.
Currency was quoted in New York
yesterday at % to 3 per cent. premium,
and it IS now being sold for future deliv-
cry A prominent cotton buyer bought
$4,000 in currency at one of the banks
here yesterday for delivery this week and
next. For this he is 10 pay exchange on
New York, and on the money to be deliv-
cred to him this week he paid premium
of 21l per cent. besides the ex-
change rate, which is a Of 1
per cent. On the amount to be de-
hvered next week he paid premium of
30 per cent. This money he bought with
New York exchange in order to handle
the cotton coming to him from the coun-
try
A prominent banker remarked yester-
day that he was Of the opinion that Tor
some time yet money with which to move
cotton would have to be purchased at
premium.
The question of issuing clearing house
certificates has been finally disposed of,
and the special in yesterdays MORNING
News stating that Controller Eckels
favored issuing the certificates
was a mistake dispatch was received
fpW6aE gnTgpet1nU the mistake nd
saying that Controller Eckels favored the
issuing of certified checks. This ques-
ton will probably come up before the
clearing house Monday, the meeting to
have been held yesterday having been
postponed.
This plan is to use checks against cash
deposited in banks here, which are to be
issued by the merchants handling cotton
who have cash deposits. They are to be
certified to by the banks and issued.
in payment for cotton until the situation
is relieved
CAPT FLANNERY BACK
Capt. John Flannery, president of the
Southern Bank, has returned from New
York where ne spent couple of days last
week on business.
Capt. tlannery said yesterday after
noon that there was slight improvement
noticea BILE in the financial situation. Cred
its are easier, but Cf"rency is as scarce
as ever. The New York banks are only
allowing the withdrawal of currency by
outside parties in very small amounts
Southern banks having exchange to their
credit in New York can get certified
checks of the clearing house association,
but their orders for currency are turned
down.
To secure currency a premium of to
per cent. must be paid This makes it
possible for the southern banks to secure
.lr-.4 3 500, d
selves.
Capt Flannery believes, however. that
the prospects are bright for some inn
prOvement in the situation soon. He is
satisfied that the Sherman silver-purchase
law viii soon be repealed, the effect of
which, he believes will be to cause an
Immediate Improvement in the situation
though it will not relieve it entirely.
WANTS UNCONDITIONAL REPEAL.
The law should be repealed uncondi-
tiOnally,' said Capt. F'lannery, but con-
gress will not do this. There win be
some conditions as to the coinage of sill
yer at some fixed ratio, and the effect of
this viii be to retdrd the improvement in
the financial situation"
Capt. Flannery was asked if ratio of
between 20 and % TO ! was fixed would it
not be satisfactory.
Silver is quoted to-day at 2Sl5 to l."
he replied and this being the case how
could ratio Of 20 TO / or p to be salts
factory"
Capt. Flannery did not seem to want
any silver at all.
The situation is certain to improve
he said. 1T may be two months and it
may be two years before the improve
ment comes When the situation is
changed money will be more plentiful
than before There is going TO be no
sudden improvement, however, and do
not look for any marked improvement be-
lore January. 1t is like sick man get
ting well OF fever. He gets we'll slowly"
Capt. Flannery was asked if the state
OF the money market would have the
effect OF depressing the price of cotton
1T has done so already and will con-
tinue TO do So he said Cotton is
quoted to-day at Ga a considerab BILE fall
within the last week 1t isn't the
question of the amount of production
this time, but it is the scarcity
OF money with which to pay for it. Cot
ton may bring good prices next spring.
but the farmers might starve in the mean
time "
AN INJUSTICE TO CAPT. FLANNERY.
Capt. Flannery has been done a great
injustice by reports published in papers
in the interior 10 the effect that he intro
duced q resolution at the board of trade
meeting week ago to the effect that the
merchants and factors should send as lit
tie money as possible out of the city in
payment Of bills, which was interpreted to
mean that as little money as possible
should be sent to purchase cotton in the
interior.
The facts are that Capt Flannery in
troduced no resolution at the meeting and
only suggested a modification of a resolu-
ton introduced By Mr. j. NJ Dixon. The
resolution had Oapplication to the factor
age business, but was introduced at the
request Of the wholesale merchants on
account OF the action of the western
wholesale houses in demanding that an
orders be accompanied by currency.
Capt Flannery said yesterday his only
reason for supporting the resolution was
IN order that the banks might retain a
larger supply of money with which to
handle the cotton crop. As IL was. num-
Der Of the cotton and naval stores factors
present voted against the resolution, fear
ing that it might be misunderstood by
tner customers The Savannah mer-
chants and bankers are complying with
the resolution as far as possible by paying
tnet western and northwestern bills in
New York exchange. thus keeping as
much money as possible at home with
winch TO handle the cotton crop
AN EARLY MORNING FRAoAs.