The Providence news. (Providence [R.I.]) 1891-1906, 1893-07-29
rnUsr COMPANIES.

'Ex-divldend. +Ex-rlRhts.
SALES.
19 Providence Telephone Co. o....,....,..."".. %
New York Market.
NEW YORK, July 29-The bank state
ment was a vindcaton OF the weeks
financial operations in New York. IL
showed loss In the reserve. IL
showed loss of nearly S3,O0O.0O0
in loans aud loss of ss,OOO,O00
deposits. in short, loss of Sll ,0OO.0 900 In
The AMOUNT OF funus which the
New York banks have as available
for their clients and, therefore,
loss OF so much cash for business
purpose, at time when cash only is
valuable and credits are unobtainable.
II could scarcely have been worse. IL
was worse than was anticipated, which
is saying q good deal.
The gloom which hung over the market
resulted also from the meeting OF the
savings banks representatives and the
discussion OF the question of ayailinu
limit before meeting the demands
OF depositors. Should this proposal
be followed IL would not only indirectly
affect confidence, but It would take
away all of that hopeful feeling that has
recently arisen because OF the purchase
stock for investment. These pur-
chassrs are doubtless many of them
drawing their money from savings banks
and investing in stocks. The closing uf
the banks will deprive them OF the
money which they would other
times their books OF deposit would be
a ailable collateral on which to borrow
money, even this remedy is not
applicable because there Is no money to
borrow. Loans are at q standstill
on all sides. BnKs are decreasing all
loans and issuing clearing house certih-
Gates to rediscount those upon which
they can not realize because OF the un-
STABILITY of collaterals.
The history of the speculative week in
New York reyolves about this one promi-
nent fact-the continually weakening
position of the banks. The time Is rap
idly approaching when most heroic mea-
sures must be adopted.
The redscounting OF loans through
clearing house certificates means one of
two things. Either it means that
the banks are in sight Of returning
confidence, or it means that they fear
their INABILITY to realizs on the
loans II they press for payment. Tue
former is scarcely logical, for no one can
see restoration OF confidence in the In
creasing demands of depositors for their
money, II the latter is true it
would DO interesting to know epou
what classes OF securities these 10 ms have
been made. If these loa S are not call d
because OF fear then the New Y rk banks
are sacrificing themselves for the sake o
their clients aud protecting the Latter
unwarrantably. Manufactures AID
merchants are protecting themselves.
They are paying their lOa ~ as fast as
they become due. They are reducing
expenses and closing their mills They
are not demanding or receiving much
assistance from banks. Who then are
the clients OF the banks who are being
helped Are they sDeculators and bank.
rupt corporations?
1t would be Interesting to know how
ruany banks have money tied up in the
hoatipg debts OF railway corporations.
Within year Erie has paid it's dividend
on it's preferred s ock and within 90 DAYS
over a million dollars interest on it's sec
ond mortgage bonds. Yet IL quietly
passes into tue hands OF receivers With
floa ting debt Of s6000,00O. Reading had
floating debt of about $40, ,000, 600 when
the receivers took charge. Rich noud
Terminal was in debt $4,000, 900
and Cordage IS. .00Q, 900 when receivers ere
appointed. Here are So 100000 of loans
locked up in the vaults OF banks, locked
up and unavailable. Doubtless
there are scores of other corporations
borrowing large sums in the same way;
there is at least common talk TO
that effect. To pay such loans the Sc
curing cola eral must. he sold. Secur-
pay expenses What Is the inevitable
end
No permanent relief can CONS from
clearing house ceriiti ates THe time
viii come wLel securities must be sold
for what they will fetch, regardless
Of, value. 4 ere are. no signs that the
Inherent def cts IL the situation
e IN lpagpfipu Stnnkg n IN ing Gnl1
because credits have failed and
cash must be had. They cannot be
rebought until by the recupera tive
power of the country; by econ
omy aud productive power the
nation has again produced aud jumu-
lated n surplus Of wealth thru Is avail
able for speculative and invest nent pur-
poses.
The York Rolling mill OF + philadelphia
Is closed, the Columbia II Killing mill IS TO
close. Two large blast furnaces in the
Pennsylvania 81 el CO OnpanY have
banked. All the other depi nents are
lu 1uiug
Kuhn, Loeb & &c. have engaged $3.50.
000 gOld Tor port todac. l. LZlri Freres
81 0010O0 for We lHesd "
The city hanks have lost py. interior
movement 81 5s2,0J0; tainai b. sub
trea NY aud imports. $j.5s3 0O).
Chicago anu Great W ~ter. decrease,
third W elk in July, sl2,4 ,4ss.
reduction ot Ir IA ID TO % per cent.
hrs been urstsd 90 he works ~ ths
We t.ughousI Air BraKe Go. 500 men
are ale 3Jcu.
rhe Gel erm Electric coupan has do.
cdtd 20 sell enough OF its se turtles ia
subs diary conpauies 60 py its A,OJD.
600 ilUatiug deDt. A syudcat. has been
formed To nnderwrite tbs curl =.
The Bank oi v i4lanl sold $4,000 %
gold today for export.
Last sales NJ New York
prpourrp NY vtttru A. v.t,ttt,