The Providence news. (Providence [R.I.]) 1891-1906, 1894-11-19
LOCAL FINANCES.


| by the Government has been looked upon
with favor by local investors. Yet even
| they were not, perhaps, aware oil the
condition Of the treasury at Washington,
nor OF the absolute necessity OF such
an issue by the Governmental
| authorities. Events have occurred within
the past TWO weeks in banking circles
! which have been the result OF the i'm
! paired condition of the gold reserves
| which have shown the nervous state OF
the comptroller, and which, II is safe to
say, have not occurred before, since the
events are, however, past, and 1t ID
| fortunate that they are. i refer
to the attitude which Mr.. Eckels has
adopted toward the redemption OF ma.
tional bank notes, treasury notes and
United States legal tender; the last are
| redeemable in gold, the treasury notes
are redeemable in coin and the national
| bank notes are secured by bonds payable
! in gold and therefore practically
sI payable ,.od in gold .,dm 1t has h, flor fSs
Treasury to accept all notes but silver
certificates sent to Washington for re-
! demption, and issue therefor when re-
| quested. draft on New York or Boston.
This draft is, of course, cashable at either
sub-tressury in gold. Banks have, there,
fore, when overstocked with mutilated
notes, sent them to Washington
and requested that such transfer
| checks be sent TO their correspondents
I IN Nsv York or Besten. Recently. how
ever, the comptroller has refused to issue
| such checks and that too without defin-
late notice to that effect. LegaI tender
notes have been redeemed by further
| Issues of the same, and national bank
notes have been redeemed in silver cer-
| tiicates.
Afraid Of Gold Reserve.
| Such action il of course caused by the
treasury officials fear that the gold reserve
NAV be further reduced by payment OF
these checks. But no fear that they may
have justifies them in refusing to honor
| such requests, for such refusal virtually
| amounts TO n refusal to redeem the
! pledges OF the Government. 1t further
indicates a reputation by them of the
| obligations which the Government as
sumed toward bank,, for no bank can
honor its notes by payment OF
GOLD unless the Government will
| do the same. Few have realized,
| perhaps, the condition To which the
Treasury hes been brought by incom-
| petent financial legislation, but its prac-
tical bearings are being felt by the banks
in way that causes grave apprehension.
Local Sock Sales.
The market for money is about the
same. The market for stocks is mildly
| bullish. During the past week more local
secpgities have changed hands than dur.
ing the preceding two months - more
| than during any single one OF
| the preceding six months. This
| Improvement has been caused indirectly
/ by two circums ances: the recent eiec-
tions and the now general fee z that any
new system of circulating medium cannot
| fail TO benefit banks, aud therefore bank
stock owners. rh.s last fact is
worthy of consideration and in
view of any advantages which
fr.H fA hon, frnV IN
source it would be well for all banks to
| come to some understanding with the
depositors "a regards interest on their nc-
| counts Otherwise, In the scramble for
deposits, it is not unlikely that all in
| creased profits may be given TO the de-
| positor instead of TO the stockholders.
Insurance Stocks.
| The most noteworthy sale OF the week
! was a sart of f1quSte bi- Insurance sloek Ii
| SIS, with more now offered at less than Si7.
| | called attention some weeks ago to this
class OF securities. Their earnings
warrant better prices. Mecha MICS
Bank has sold at S52. Eagle:
national has returned 20 its Old price OF
81 and 81. North Americs has also gained
| 1% points, selling at a33i. There is still
weakness shown in Second National.
which sold Mt 1861 at private sale and
in Screw stock which sold at 209. both in
public aud private sale. Manufacturers
/ OF one point, and Gorham preferred has
been transferred at 107.
Narragansett Electric is also on the
move a. predicted. 1t has. sold at IN
and will 20 higher. Altogether, bank
| stocks have been sold and transferred to
the number OF
Above 200 shares
during the week. II can not be said,
! however, that any real bull market Is in
sight nor cen there be such a market with
money as low as at present quoted.
National Water Works.
hear favorable news for the security
holders OF the National Water Works
| Company Of New York. learn in further
confederation OF my announcement last
week, regarding the legality OF the is-
sue Of bonds by Kansas City, the proceeds
OF which are to be used TO pay for
| the water works, that MIR. ii. w. Blair OF
Blair g. Go. has been advised by MS corn-
sol tha Kansas City hns no legal right TO
issue said bonds. Now IL will be reracrn-
bered the Kanaas City authorities claimed
that Mr.. Blair had agreed to buy all the
bonds. Yet the city council met this
! week and voted to sell the bonds To other
PARTIES IL better terms could be secured.
II the city has positive contract
| wfh 'ff Blair, how can H.
sell the bonds TO other parties :?
L4..e . l. no definite contract with
bic. Blair Of tins n another instance OF an
attsmpt TO violate n contract Tor which
-alrlgsY made itself
famous. SO far as ca De harmed al THIS
WritnI ihs ciy has taken no
ruIi.n ll iHr pVnF deci-
siuu hI ..i.t a. lo be lsgali v oi
.he p ..i O.. .eG bona issue. Failing in such
| g decision, A. IS extremely improbable
that any one will purchase the bonds. AS
there are now only III days In which to Sc
\ cure such action Of the court and BY Dc.