St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-25
THE BANK SITUATION.
SUB TREASURY PAYS THE CLEARING
HOUSE IN NOTES.
SETTLING IN GOLD UNPOPULAR
Currency Received From the
Country by the New York
Banks and the Shipments Made
Affairs in New England -
Philadelphia Reports.

W SOlllo 6XV6IlG D6It6T, lndSInuCu dS lHc
demands for accommodations were
light. The most notable demands for
assistance today were from Ohio. The
orders tor currency today were light.
The sTbtreasury was debtor at the
clearing house this morning only S11S,-
600, and that sum was paid in notes.
What caused the treasury officials to
pay in notes today instead of gold, as
they have done for the last week. eUuIu
not be ascertained, but it was assu,ned
that the protest of the banks thlvush
the press against the inconvsnIenL
method of settling the clearing house
balances in gold had caused them to see
the absurditv of the practice.
The indications today were that a
considerable amount of currency was
being received from some sections of
the country by the banks IN this "..y,
but that it was being Offset by sup
ments to other places. One leauIng
bank received S125,00O on Saturday,
while its shipments were not nearly so
much, but on the other hand there were
some banks on Saturday that shipped a
great deal of currency without any re-
ceipts TO offset those shipments. From
the demands received today from Ohio
and some other places for rediScountS it
is believed that the shipments of cur
rency to those sections this week will
be heavy. In many instances during
the last few days gold has been shipped
to the country
Il Instead Of Currency.
and more will probably be sent. The
banks asking for the accommodation
are providing themselves against runs
as the wave of distrust sweeps over
their localities. Speaking of the great
number of Western banks which closed
on Saturday, the president of one of the
largest national banks in this city said
today that he believed that in the ma
Jority of cases they were not failures,
but only suspensions: that they were
perfectly solvent, and that they would
resume business again in a few days
stronger than ever.
The situation in New England is at
tracing great deal of attention in this
city now, especially in regard to manu-
factories. At the office of Watson tS
Gibson, No. 80 Broadway. it was said
that their advices from Boston were to-
the effect that money was practically
unlendable in that city at 6 per cent,
and that stocks were being carried at
per cent. II consider" said Mr.. Glib
son, "the situation as regards the New
England factories the most serious fac
tor in this market"
The failure of the Milwaukee Nation
al bank Saturday was very generally
discussed in banking circles in this city
today. The failure was not an entirely
unexpected one by wideawake bankers
i'll this city, some of the most conserva-
tive of whom had been aware of its real
condition for some time. One of these
bankers said today that the report that
the failure of the bank was due to the
failure of the Schlesinger syndicate was
not true. The banks failure, it was
said, was due to having overIoaned to
certain parties to which the Schlesinger
syndicate had nothing to do.
Several Banks
this morning reported their inability to
make collections in Philadelphia, or OBJ
tain payment OF the large balances they
have to their credit with some banks in
that city. One bank here has between
s50O,000 and 100000 in Philadelphia
which it is unable to obtain without re-
course to measures which would prob
ably cause trouble to the banks referred
to in that city. New York banks, as
rule, are now refusing to accept
drafts from their customers on Phila-
delphia banks, except for collection at
the depositor's risk. In some cases
where merchants in this city have had
large drafts on Philadelphia, they have
sent them there by special messenger
for collection over the counter. This
course, however, involves trouble of
Identification, and when It has been
adopted, liberal commission has had
to be paid for New York exchange, cur
rency not being obtaiaable. According
to the reports to the comptroller, the
Philadelphia national banks were as
well supplied with cash OIL July 70 as
were the national banks of this CITY.
Those reports show that on that day the
reserve of the national banks of Phila-
delphia amounted to 3O39 per cent of
the deposits. 1t is a cause of some won
derment, therefore, why the Philadel.
phia banks should be so slow in making
the remittances to this city.