New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-14
RENEWED SALES OF STOCKS.
GENERAL DEPRESSION WITH ACTIVITY.
FAVORABLE BANK STATEMENT OFFSET by
ruMoes OF FRESH WESTERN TROUBLES.

. r,vop,prr HANK STATEMENT OFFSET by
ruMors OF FRESH WESTERN TROUBLES
There was n fresh outbreak of liquidation In the
sccnrtv morkets at the Stock Exchange yesterday
and the bears showed signs OF renewed hss' sso',.
General depression In values followed ana wan
Street abandoned it, cheerfuness OF FRIDAY ana Iei
into n state OF extraordinary discourase"'h'' INV
markets appeared 10 BE- rejecting 'he u''i"'o''oo
Influences which were ignored on the previous day.
for there was no definite news to provoke ciHihec
In tempcr while a distinctly encouraging element
was introduced in n bank exhibit highly satisfactory
In character
The weekly statement Of averages issued by the
CLEARING Uousc was more consistent with the known
movements OF money and more satisfactory In results
than any statement published In some nine' Inc
hanks in the week contracted loans average OF
81. 900. 800. There an Increase OF Sr01,.OO In
deposits and n gain I'm lawful money OF $5,1S3,4O0.
The surplus reserve increased Si.950.o'o, and
the banks now hold In excess OF legal requirements
ST. 705 O25 against n surplus at this time
last year OF Sl5.772l25 The statement Is an en-
phatic proof Of the sound condition Of the NewYork
associated banks. II considered ample justi-
fcaion the policy Of conservatism adopted by the
banks here when they foresaw a monetary dis
turbance as the probable consequence of a weakening
OF the gold reserve In the United States Treasury.
The scrutiny OF loans and the contraction OF liabll
ties for the purpose Of strengthening the bank re-
serves have produced q surplus reserve ample to
protect the financial institutions Of the city. The
Clearing House Committee has been alert in check
Ing any tendency toward undue extension. and a
thorough spirit Of cooperation exists among all the
banks Their conservatism is demonstrated by the
fact that important losses have fallen upon the
New-lork Clearing House a consequence OF the
bank and commercial failures West. The discipline
OF the Clearing House Is strict and the methods OF
the banks are more free from possible criticism than
in long time. Their foresight and prudence.
bankers say, place them In a position where protcc-
ton can be extended TO the New York mercantile
munity should further monetary strain call for 1t.
The report that investigation OF any New-York
banks has been ordered by the Controller OF the
Currency Is denied by the Clearing House Committee.
which would certainly learn Of the fact II any such
step had been taken.
There was shipment OF $780, 900 gold directly to
London yesterday by the Bank OF British North
America 1t was the first shipment OF the kind in
many months. The specie was taken from the
banks own vaults. The Sub Treasury therefore
did not lose any part Of its store OF the precious
metal; In fact, 100000 In gold was deposited by
Canadian banks and Western account. II Is con-
sidered practically certain, however, that there will
be large exports OF gold this week. Sterling ex-
change yesterday ruled strong at 81 s60s4 30 for
the posted rates and actual quotations permit
considerable profit on shipments to London. 1t is
believed that exports Tuesday may reach g. .0OO.-
600. There Is 81 900 900 gold held by a proml-
nent banking house. watch be sent ut any mo
ment to Continental Europe. Private discounts in
London are reported at 3444 per cent. Cable
advices from that centre reported continuance Of
the unsettled condition OF the London markets and
two small defaults announced at the
Stock Exchange In that city. 1t was also stated
that several shaky" operators had been carried
the settlement by stronger concerns.
A sample Of some OF the banking methods at the
West. which coming TO Night, Is furnished In
q circular letter addressed last April TO moneyed
man BY the United states Loan and Trust Company
OF Chicago, a with intimate relations with
Zimri Dwigginss Columbia National Bank OF that
city. The circular bears In It's heading these words
Capital and assets 81 100, 600" In well-conducted
banking circles capital Is counted liability dis
tinct from "assets.' The circular is AS follows:
UNITED STATES LOAN AND TRUST COMPANY
Capital and Assets 81 900.
No. 513 Tho Kookery.' Chicago.
Chicago April 9. 1898.
Dear Sir We have for sale Time Certificates OF De-
post given by National and State banks throughout the
Central States. These certificates 3d. 20. 90 and
100 days.
According the Controllers report Of 1891 there
has loss only one-twenteth Of one per cent
per depositors of National banks since
1893 According the same report. taking ue average
loss a the banks located In the small cities and country
towns (where deal principally. should person have
had One Million Dollars invested in these Tine Ceruh
IS, 900 In bank (whlch Wouu eNe W" NV
banks) you would have been interested In two failures
I'm the last twenty nine years that is TO you could
gtten the money on all OF those certhcac' az any
time you presented them during the last twcny'hihe
years excepting two, which would aggregate Ten Thou
sand Dollars then within year you could nave re-
ceiyd 90 per cent Of those according u the average loss
There other commercial paper you could buy tna'
you could compel the person. firm or corporation issuing
it to Receiver appointed, pr'vidd inc item was
not paid on presentation at maturity but DahH' ITO
how small its capital compelled 70 pay the
certificates OF deposit issued by that bank ON presentation
at maturity, close It's doors
Ninety per cent OF the business OF the United STATES
IS done uron Certificates OF Deposit Cashiers Checks and
nr,ns issued by the banks and loss is small |
YOU cannot compute 1t. We selling large number
OF these Certificates Banks and Bankers OF all classes
and the records that they are the safest invest
ment that you possibly buy. We can furnish you
limited amount at u fair rate Of interest a list OF |
banks and the amount OF Certificates on each t"hA'
with the rate. will be furnished on application we r.
auire @ detailed statement showing the exact condition
Of the bank before purchase these Ceiticates we
will be pleased to hear from you. Very truly yours
II. NJ. GREENE. Secretary.
The ingenious wording Of the circular transfers the
argument drawn from the Controller OF the Currencys
report OF 1901 showing how tinng is the percentage
OF loss to deposltors in National banks TO the State
and nrivote institutions whose certificates Of de-
posit, are handled by this Chicago Loan ana Trust
Company. OF such parallel exists and |
Eastern banking methods take no cognizancc Of any
such certificates OF Deposit offered in the
circular. They are regarded here simply method
OF securing double loans upon one class OF collateral
alt will be no permanent injury to the country said
well.known banker yesterday, If the present eN |
perlence OF our friends at the West teaches the lesson
that there Is patent way for conducting legitimate
banking business"
The stock market yesterday was unusually active |
for the half holiday session Of two hours. The total
transactions amounted to 217.50G shares. The sell
Ing movement began at the opening OF business and
was only interrupted by the closing OF tho Stock |
Exchange. The discouraging cables from London |
started the declines, but the persistent pressure |
upon the Granger stocks was not explained |
The news OF further failures a; the West was dis |
hcartening and rumors were thick Of Impending |
trouble among Northwestern banks. The depression |
I'm values was general, the net losses differing only
In IAIlrllug0n and Qnncy f.lL from |