Mexico weekly ledger., 1896-07-23
WILL NOT PAY 0 L
Banks Propose to Hoard the yellow
Boys" Awhile Already at
Premium.
From the Kansas City World.

If6lnluuU,
From the Kansas City World
All banks in Kansas City have
ceased issuing gold either in exchange
for large bills, as payment of checks
or Withdrawals of deposits. Cashier
Rule of the bank of Commerce, who
returned from st. Louis this morning,
says the same is true of the banks in
that city and he believes the same
may be said of banks throughout the
country.
Cashiers of several banks in this
city, who were interviewed this morn
ing on the subject by reporters for the
World, gave the same reason for re-
fusing to pay out gold. They said that
the evident intention of many people
who are nov asking for gold is to
hoard it on the supposition that it will
go to a premium and that this would
put it out of circulation and prove in
furious to trade and the people gem
orally.
"Will not the refusal of the banks to
issue gold in itself force gold to a
premium" Mr.. Rule was asked.
"Gold is now practically at a prem
ium of one-half of / per cent he re-
piled. "That is So on a thousand. A
demand for gold, such as that now be-
ing made, will undoubtedly force it to
a higher premium. 1t will easily go
to 1 per cent in a short time.
"Two or three weeks ago." said MI.
Rule, 1--WE were meeting our clearing
house balances in gold and paying and
taking gold regularly. Since the
Chicago convention there was a steady
withdrawal of gold until the banks had
to call a halt in order to keep the
proper reserves. This morning we
had half a dozen requests for gold from
country banks that have usually pre-
ferred currency. With the movement
of grain there is ademand for currency
to pay farmers labor and for similar
purposes. We get orders of that kind
now; also orders for gold. The orders
for gold mean but one thing-that it is
to be boarded. Some of these orders
come from the strongest free silver
communities.
'The bankers must act in a safe,
conservative way and they intend to
keep as much back of them in their
reserve funds as possible. The amount
re rnJd in Rapcoa H;ty 10 uaO1 oan.
pared with that of other reserve cities,
though it is somewhat lighter than it
should be. We do not find much gold
in the deposits now being received; it
is evidently being boarded away. I
vas asked this morning if we would
wish to accept a special deposit of
$1,000 to be paid in gold and l replied
that l would not favor it. We would
only have to store the gold away and
could not use it."
"Mr. Rule was asked if he would
sell gold at present at what he claimed
to be its practical premium, and re-
piled in the negative. "Rather than
sell it," he said, 1--WE would more fav-
or our customers by giving it to them
at par, if we were going to give it out
under any circumstances" D..
r. d. Covington, cashier of the Mis-
souri, National bank, said: "We are
now issuing no gold whatever. We
have had four or five requests for it
from small depositors who want on an
average about $500 each. We know
they expect to hoard it for specula-
tive purposes, and hence refuse to
issue it. We would not give gold
now in exchange for a 500 bill unless
we knew the applicant and that he in
tended to Use the gold. In fact, we
are not issuing gold under any circum-
stances. / think the Kansas City sup
ply of gold is good. Our supply is not
at all limited, but we are confiding
outputs to silver currency, and re-
tanning our gold as a reserve
Cashier Strain of the Metropolitan
National bank, said he believed the
gold reserve in Kansas City wa in
good shape. "Bank reports soon to
be Used will show it, 1 believe" he
said. The Metropolitan, like the 9TH
er banks, was not issuing gold.
Calls have been made by the comp
troller of the currency on all the
banks for a statement of their finances
up to the close of business July IA,
and these will be published in a few
days. Such calls are made five times
a year.