New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-24
CALIFORNIA MONEY NEEDS
ONE MILLION MORE SENT AWAY.

IMPROVEMENT. IN SOME DIRECTIoNs-wEsTERM
LOANS BEING REPArD-sTIFTER RATES
FOR MONEY. BUT EASIER
FOREIGN EXCHANGE
The unhappy banking situation in California was
the principal topic Of interest In financial circles
yesterday. II almost caused Indifference to the bank
failures reported from widely separated parts Of
the country as ew-York, the State OF Washington.
Indiana and Minnesota. The reason for this was
not only the magnitude of the troubles the
Pacific Slope. but the fact that the falling of In ship
mens Of currency TO other places was again marked
The interior demand has net altogether ceased
however, and II was estimated that from 100000
to 100000 sent 10 points outside OF California.
But bankers encouraged by the advancing price
OF NTW-fOrk exchange at Chicago. indicating re-
taxation I'm the tension at that centre. Another
source OF congratuation the fact that the West
appears to have recovered sufficiently to be able to
pay on OF the loans made by the
New-York banks in the monetary stress Of a week
| two weeks ago The Western banks. however.
not parting with their cash. They sending
collections and drafts other points to the New.
York institutions, thereby restoring credit balances
when the funds duly collected This movement
OF repayment has assumed considerable proportions
when compared with the heavy drain the other way
a short time ago. Every sign of Improvement -
II most minute. Is welcomed here.
The demand for currency from California. however.
was extremely heavy. although II fell below the
requirements OF Thursday. The Sub-Treasury re.
cctvc1 %jCOCoO gold certificates for telegnphie
transfer at the San Francisco sub.Treasury, and
again, by consent OF the Washington authorities, the
credits were instantly transferred instead OF following
tho usual method, which required two days for
making the funds available at thu Golden Gate.
There $5O0,OO0 coin shipped by express also,
making 81, OO00 sent to relieve the strain on the
California banks against 81 6j 900 sent Thursday.
1t Is believed that the heavy accessons OF cash In
California will soon begin to effect a return OF con-
fdence. Since June the shipments OF money u
California have aggregated 81 323,o0O.
Ire failure Of the Pacific Bank Of San Francisco
Is not regarded as. In certain sense. being serious.
Although the Institution Is large one and for many
years had been regarded one Of the soundest on
the Pacific Coast In the last two years 1t has been
looked at askance by some Of the New-iOrk banks.
Its operations believed to have leaned toward
speculative ventures, and 1t is not thought that its
| suspension will involve any other San Francisco
banks. The Pacific Bank has credits with Its tive
New York spondent banks. IL Its failure In
wolves serious consequences in California they will be
/ confined to country banks. many OF them on the
| Pacific slope Its correspondents.
By the transfers OF credits to san Francisco the
Treasury gained $500 900 in free gold yes'er'
day 1t also received $So0000 gold over the counter
for currency needed here but it paid out 1000.
The net gain In gold to the SubTreasury was
| ST 900 900.
The local money market developed fresh stringency
In consequence Of the withdrawal Of cash by CALI
fornIa banks. The rates for call bans at the stock
Exchange ranged from 10 per cent to 20 per cent.
Time money j. almost impossible TO obtain in con-
siderable amounts, and such loans usually commana
a commission In addition to per cent interest Inc
supply Is limited largely to foreign funds. ana these
are not loaned except on gold n6tes. CommerclA
paper Is still virtually unstable, and rates OF an
count are so high. frst-cass notes. that
tn uofp -
few purchases they make. The foreign exchange
market was Influenced by the advance in money. and
sterling quotations were reduced IL cent 10 tne
:. The weakness Is due solely 10 the sale OF loan
bills. the proceeds OF which are used In the money
| market. Consequently there Is more talk OF the
! prospect of gold imports. The Bank OF England has
raised Its nominal buying price for American gold
| eagles from 76s 4 I'd. to 76s. I'D. an ounce. The
selling picc remains at 7bs. Cd. The advance n
the buying rate is intended 20 reard the demand for
| gold In the open London market from the Continent
OF Europe.
There were only 100000 Clearing House loan
certificates Issued yesterday. This raises the toal
! amount outstanding to $1,000 600 The weekly
bank statement is awaited with keen interest but IL
Is expected that the showing will be uniavorabie'
owing to the monetary movements III the "eeK'
rlc banks ha,. lost over Sl.7OOOOo TO the sub
! Treasury. and the currency movement since friday
week ago represents a decrease III cash OF iro"
ID u
tcresti,e from the fact that the Clearing House
certificates will be Incorporated In the figures for
the first time.
The stock speculation remains dull, owing to the
excessive strngcncy In money, but the Dear Traders
met with less resistance IN their operations y"st."ay'
In some Instances the bears revealed Their thcucs
by opcning prices as low possible For Instance,
thc first sales Of General E,oric stock Were made at
20 when there were many orders 10 buy al heher
prices. The result was II quick recovery from the
first transaction and the stock rose To al l2a'i lo'
against II IL Thursday night. chicago, buhhston
and Quincy also opened down l." per cent az
- but II did lot rally than Ia per cent. and
suhsou.utIv sold al s6 3-sao7. The weakest OF the
leading trngcr shares WIS Chicago. Rock Island and
Pacific. which sold down to 81 y, against T. az
against 80 Is Thursday. and ST. Paul ana umana t,
icli IL per cent on night transactions. u. LoaIVi,s n
shore i IL per cent to l23 -. and pelaTare.
ha,an EIeyad ' sold a" i3oa a5 - against '?o 3.
Thursday. American sugar Reii Ing fell from - on
Thursday to slo II ~. Chicago Eas from ~" ~ 80
To- a., and National Coruuse from iio l3 A TO L. 4:
The market generally closed lower ana at "o"u'
II" inlur, ) reported to Il. e. qua Go. for the
week number .,:i for the United states and -
for Canada total OF PSI compared with "a! in me
rr.vons week ami 100 in the corresponding week Of
is0l The advices the business situation are nos
ns han,H"s .wn mo "Iieciions are said 10 be unusually
slow the banks are extremely CAUTION, III lemms,
feature of the reports l. the ssmeness OF their char
actcr no matter from what part ol the country thry
urc received The weeks developments ana the OUT
look are summarized as follows;
The improvement expected from the Issue o GEAR.
ing Ionse certificates thus utilizing credits Instead OF
cash I'm local dealings. has rot yet been realized.
nincr cities specially AZ tile West have not taken
similar measure TO relieve thc pressure ana lhe 1e-
nm, nd fer money the interior continues unabated.
The failurr OF banks NJ san Francisco has leo 10 Q
heavy demand from that quarter $lonooo having
was avoided bv the application Of the Bank of Com
merrc q 900 900 certificates. and x23oOOOO were
issued Thurs ay but the pressure for reiisconnts for
Interior banks Is beyond the ability of New York 70
! mnrt Imports OF u million gold gave quick increas -
Of confidence time. but. with actual issue Of cer-
tIfcars foreign exchange rose cent chilHng hopes
| Of "A further movement this way. The secretary Of
the Treasury has given notice that he will anticipate
noyment OF interest July I. amounting To $500 600
iui only 500 900 IL bonds held bv banks which
! viii be- imms datey disb,rsed. The volume Of
trrdc is considerably reduced by monetary
strIugcncy. Bank clenrings outside New York de-
| inin matcrinlly In comnarison with last In