St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-08-19
MORE CERTIFICATES.
The Gold Movement Does Not Aid
in Their Retirement.

The Gold Movement Does Not Ala
in Their Retirement.
New York, Aug. 13.-The clearing
house loan committee issued S590,00o
more loan certificates today, making the
total amount now outstanding 3S.Ss0,-
0O0 1t is believed by many that
the strength of the stock market
is largely due to the large amount of
loan certificates outstanding. Thas
opinion was cOrroborated by member
of the clearing house committee this
afternoon. He said today that OF the
securities pledged by the banks for the
loan certificates about 65 per cent cor
sisted of bills receivable and the bali
ance of stocks and bonds.
The iIalf-million dollars of loan GER.
titicates issued today were for an up
town bank which has not heretofore
taken any out. Wall street connected
today's issue with report of assistance
to very large retail dry goods house
which il is known had to be assisted
this week TO the extent of SS00,000 in
order TO prevent its suspension Lie
fact that the loan committee OF the
clearing house has not retired any GER
tilicates, Notwithstanding the
Heavy Imports
of gold, has led to some comment. The
impression prevailed that since round
amounts of the certificates had been
issued for the purpose of assisting the
gold movement that upon the arrival OF
the metal the certificates should be
retired. In answer TO this criticism
member of the loan committee said: II
think it would be unwiSe at present to
cancel any large proportion OF the loan
certificates outstanding. 1t can only
be done eventually in one of two
ways. Either by increasing deposits or
contracting loans. At the present time
q contraction of loans is not advisable.
l regard the clearing house certificates
now outstanding as the very opposite OF
meHance TO the situation. / ne
move has enabled merchants of
this city to carry on business
and has enabled New York banks to fin
ancc large portion of the country. In
seventy or eighty days we have lost
SG0,000,000 of deposits and almost as
much cash, and the certificates out
standing are less than S3S,000,0 ,000. lam
in favor OF extending the issue as much
further rs may be necessary, and L see
no danger therein, but rather-an assdr-
ance of safety al.ia -,.''1i'
The maintenace of the premium
for currency and gold is believed
to be largely due to the neces-
sity for making provision for moving
the cotton crop and the contin,i-
anee of the boarding of money.
not only by individuals of all
classes, but by country bankers,
and especially savings banks. As the
reports of the condition of country
national banks are received the fact is
shown that all of them, as a rule, have
much greater cash reserve than they
are required by law to keep on hand.
Chicago is conspicuous in this respect.
The New York associated banks
are doing business with an average
cash reserve of 20 per cent, but the re-
turns from Chicago show that the
banks OF that city on July had all aver
age cash reserve of more than 81 per
cent, and. judging from the way in
which their customers country D--ks)
nave appealed to New York for aasist-
ance, it is not believed that they have
materially decreased their average per-
centage of reserve in the past month.