The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1895-02-01
Money and Banks,

MONEY RATEs.-The steady acct
mutation money in New York through
shipments from the interior constitutes
IN important factor in the money
market at present. Currency is being
received in large packages from the
West, and banks with important
Southern connections report that the
practical completion of the movement
of cotton to market is bringing adj
vices of intended shipments from that
section. The outflow of currency is
of small proportions, being confined
practically to the provision of pack
ages of small notes required for mer-
chants in neighboring cities for pay
rolls. 1t is impossible for them to
place all their available balances at
the rate of 1 per cent, which has
been current all this week for call
loans at the Stock Exchange. In the
outside market the rate has declined
to the same basis, except for an oc-
casional contract on securities with a
slow market at II per cent. About
the only hope for more active mar
ket held out by the banks is the pos
sibility of the withdrawal of a large
amount of money through a new issue
of Government bonds, but this pros
pect is not viewed with unmixed sat
isfaction. The banks appreciate that
if an issue of much more than $50
600, 900 were to be made, and pay
ment arranged in New York, it would
be necessary to call a good many
loans now carried on active stocks,
and that the effect upon the market
for securities might be important
through forcing much liquidation.
Many Of the loans being carried by
Wall Street houses on call are regard
ed substantially as time loans, as they
have run for a long time at I per
cent, with no indication of any de
sire on the part of the banks to ter
inmate the arrangement. There is at
present very little evidence of dis
elimination as to the character of the
securities accepted among lenders,
largely because the amount of new
business is comparatively light.
In time loans the market has con-
tinued narrow and very featureless.
The demand has been very light, be-
cause Of the limited amount of new
commission business in stocks and
the ease of the call loan market but
at the same time there has been no
evidence of pressure of funds among
lenders. All appear to be awaiting
the outcome of the currency discus
sions, with the object of being pre-
pared for a possible bond issue. For
eign bankers are not an important
factor in the market, both because
their European connections decline
to place balances for definite terms
at ruling rates, and because few bor-
rowers will consent to sign gold notes.
Rates are Il per cent. for 80 days, 2
@ a for 60 days to four months, and
3 for longer dates but these quota
tons are largely nominal. Banks and
brokers agree that there is no impor-
tant amount of new paper coming in
to the market from any quarter, and
it is difficult for brokers to accumu-
late important lines to offer for dis
count Importing houses appear to
be the only sellers. Rates are "a %
8 per cent. for best indorsed receiv-
ables; 8 q 81 for best single names,
with most business at 3 and 4 90 6t
for singles not so we'll known"
The above, which we extracted
from Dun's Review, fully exemplfes
the financial condition among bank
ers, brokers and spectators. The
sum of it is interest far too low
to suit them, and their principal hope
is to effect such Strengthened condi-
tons with the Government that it
must issue bonds whether it wants to
or not. These conditions are now
very promising to holders of idle cash.