New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-21
NEW TUMBLE IN SILVER.
EFFECT OF THE REPORTED ACTION OF
THE INDIA COUNCIL.

EFFECT OF THE REPORTED ACTION OF
THE INDIA COUNCIL
THE FIXED PAR OF INDIAN EXCHANGE TO BE
ABANpoNEp-sILvER MARKETS DEMoRAIIzED
AND QUOTATIONS NoMINAL-AN UNPRECE-
DENIED BANK sTATEMENT-No NEW
YORK GOVERNMENT BOND SUB
sCRIPrIoNs YET DISCOVERED.
The stock market yesterday was active and
strong under the influence Of the telegraphl'
dispatches from Washington asserting that there
had been liberal subscriptions to the proposed
issue Of per cen. Government bonds on basis
netting the investor per cent 1t was runoreo
IN Wall Street that a foreign syndicate was In
process Of formation to take a large part OF the
new issue, but no definite facts could be learned
The report that Harvey Fisk G. Sons were or
ranizng syndicate to subscribe for sS5'OoOOoo
bonds was officially denied. Nothing Is yet
known In Wall Street Of any important sub
scriptions sent from New-York. Some bankers
think that the announcement that the issue Is
heavily over-subscribed may render 1t inadv1sa-
BILE or unnecessary for New-York interests to
forward offers.
William E. Curtis Assistant Treasurer OF the
United States was still in New-York yesterday.
but his movements were not known outside OF
Sub-Treasury officials. At the Sub-Treasury II
was stated that Mr. Curtis had come here on
routine matters and had incidentally discussed
the new bond issue
Considerable discussion was aroused in Wall
Street by the cable advices from Calcutta to the
effect that the India Council would no longer
adhere to tie minimum rate Of led. fixed as
the par of exchange between India and Great
Britain in its sale of drafts. 1t was said by
well-inforrned bullion brokers that In the last
two DAYS the Council had sold its bills as low as
13d Rupee paper in London was demoralized
and bar silver dropped I'D. to Bid. an ounce In
this city the silver market was brought to
practical standstill by the news from India.
Mexican dollars sold at 53i2 cents, against 90
cents on Friday Bar silver was quoted at
CT cents a decline over night OF cents an
ounce but the price was nominal. Brokers
said that it was impossible 10 DO business aIilu
the uncertainty and decentralization developed
At the Stock Exchange there were sales OF
$4,000 ounces in silver bullion certificates at o.
1t was the first transaction in many weeks
After the recovery in the price OF these certif-
Gates from the crash which attended the sus-
dia, speculation gradually died out at the Stock
Exchange. The news from Calcutta VIII PROB
ably revive activity in silver certificates
WHERE SERIOUS RESULTS ARE EXPECTED.
The action of the Indian Government is re-
garded by bullion brokers likely TO be serious
In its results upon the traders between Eng
land and Eastern Asia. 1t may cause severe
embarressments among the merchants Of India.
They have been heavy buyers Of silver bullion
for some time, in expectation that the British
Government would impose duty upon the
import of silver into India. The import duty
has not been imposed. and by discarding its
artificial rate Of Indian exchange the India
Council becomes selling competitor with the
dealers in silver The magnitude Of the specula-
tive purchases of silver for Indian account may
Ea ina mod to
China in the last two months. These are est-
mated by Zimmerman & Forshay, bullion
dealers, at about 2O.OO0,000 ounces. a fall in
silver will be Of serious consequence to the
merchants and bankers in India, who have been
loading up the theory that silver import
duty would be established. The effect on Mex
leo and the silver-using countries of South
America will be important. II is contended and
any further depreciation in the white metal
will be unfortunate for the mining and rail-
road interests in the Western States Of the
American Union.
A revival OF the silver question through the
misfortunes OF Great Britain and her Indian
possessions may. in the opinion Of some financial
men, bring beneficial result in the end to this
country. When the Indian Government. sJs-
pended the free coinage Of silver last June IL was
predicted by silver advocates that the end would
be a panic in India or in the Ango-Inda trade.
The sudden decentralization Of the silver markets
yesterday has recalled these predictions. Since
the United States abandoned its monthly par
chases Of silver the burden Of supporting the
price of the white metal has been thrown upon
Great Britain. 1t Is hoped by some interests that
the development Of an acute silver crisis directly
affecting English affairs may stimulate the
efforts toward International bimetallsm aban-
doned for some time.
UNPRECEDENTED EANK REsEr'r SURPLUS.
The weekly statement Of the New-York banks
showed remarkable accumulation Of cash and
only small expansion in loans. The banks
gained slS,76s.9OO in legal money and deposits in
creased S14. 1872 500 but loans increased only
t1,500.500. The banks hold in cash $23S 33l 900 and
l02,75i.4J0 in surplus reserve, both amounts be-
ing without precedent. The maximum surplus
reserve previous to this about s6j 0O0
900 in 1885. and ii was one Of the after effects Of
the bank panic Of May, 1884. The deposits now
are $542 306 200 within 81 300 900 Of the highest
point ever reached by deposits, which was on
June II, 1892 The banks now hold deposits Of
1882 300 in excess of loans and this repre-
sents the amount Of idle capital which cannot
find employment owing to unsatisfactory rates
or collateral security.
The business failures reported 10 r. G. Dun
& Co. for last week number 474 for the United
States and 81 for Canada, a total of SOL against
$50 in the previous week. and 30S for the CORE
fponding week OF 1893. "Duns Review reports
the output Of pig iron from Al to 43 per cent
than a year ago. with an increase OF unsold
stocks In December OF 19.457 tons. The output
Is reckoned as about the same December
!. Prices Of iron show no recovery, and copper
tin and lead weaker. Sales OF wool for tho
week were 2,7S6.9O0 pounds at the three chief
markets, against 5.805.5 500 pounds last year Bank
clearances 1t is said, indicate that no large gain
has occurred yet IN the volume Of business,
for they are still q per cent under last years
record. "Duns Review" however, bears testi-
mony to the reviving tendency Of business sum-
marking the situation and outlook as follows:
Business has distinctly improved since the
new year came and the gain Is no longer visible
only in speculative markets 1t is the oniy
kind Of improvement that has In 1t possibilities