The herald., 1898-07-06
SPANS Financial Inability

Before the Instruction in Cuba, AZ per
cent of the Bank of Spain's total resources
was in government securities; today that
item is 6S per cent. So desperate is the gov
eminent that it is now said to be raising
money at any rate of interest and discount
ing the future heavily in the matter of tax
alton. The inability of the government to
get any further assistance from abroad has
compelled it to draw on the bank, and it is
an interesting question. says the American
Banker. how long the bank can hold out.
1t Is stated that the presentation of notes
for redemption in silver is now regarded as
q hostile act so that specie payments are
now practically suspended.
The New York banks have decided, in
view of the prohibitory effect upon trading
which the payment of the war tax upon call
loan notes would have, to abandon the
practice of requiring such notes, and they
have substituted the following form of
continuing agreement, which is similar to
that adopted on the former occasion when
the stamp tax was in operation:
Know all men by these presents, that
the undersigned, in consideration of
financial accommodations given, or to be
given, or continued to the undersigned by
the - - bank of the city of New
York, hereby agree with the said bank that
whenever the undersigned shall become or
remain, directly or contingently indebted
to the said bank for money lent, or for
money paid for the use or account Of the
undersigned, or for any overdraft, or upon
any Endorsement, draft, guarantee, or in
any manner whatsoever or upon any other
claim, the said bank shall then and there
after have the following rights, in addition
to those created by the circumstances from
which said indebtedness may arise against
the undersigned, or his or their executors
administrators or assigns, namely:
First-All securities deposited by the I'M
dersigned with said bank as collateral to
any such loan or indebtedness of the I'M
dersigned to said bank shall also be held
by said bank as-security for any other liza
bility of the undersigned to said bank
whether then existing or thereafter con-
tracted, and said bank shall also have
lien upon any balance of the deposit ac-
count of the undersigned with said bank
existing from time to time. and upon all
property of the undersigned of every de-
scripHonI left with said bank for safe keep
ing or otherwise, or coming into the hands
Of said bank In any way, as security for
any liability of the undersigned to said bank
now existing or hereafter contracted
Second-Said bank shall at all times have
the right to require from the undersigned
that there shall be lodged with said bank,
as security for all existing liabilities of the
undersigned to said bank, approved collat-
eral securities to an amount satisfactory to
said bank and upon the failure of the un-
derslgned at all times to keep a margin of
securities with said bank for such liabilities
Of the undersigned, satisfactory to said
bank, or upon any failure in business or
making of an insolvent assignment by the
undersigned, then and in either event all
liabilities Of the undersigned to said bank
shall at the option of the bank become i'm
mediately due and payable, notwithstand-
Ing any credit or time allowed to the I'M
derslgned by any instrument evidencing
any Of the said liabilities.
Third-Upon the failure of the under
signed either to pay any indebtedness to
said bank when becoming or made DUE or
to keep up the margin of collateral securi-
ties above provided for, then and in either
event said bank may Immediately, without
advertisement and without notice to the
undersigned, sell any of the securities held
by 1t as against any or all of the liabilities
of the undersigned, at private sale or bro
kers' board or otherwise, and apply the
proceed of such sale as far as needed to-
ward the payment of any or all of such LA
bilities, together with interest and ex-
penses of sale, holding the undersigned re-
eponsible for any deficiency remaining I'm
paid after such application. If any such
sale be at brokers' board or at public auc-
ton. said bank may itself be purchaser
at such sale, free from any right or equity
of redemption OF the undersigned, such
right and equity being hereby expressly
waived and released. Upon default as
aforesaid said bank may also apply toward
the payment of the said liabilities all bal
lnces Of any deposit account of the under
signed with said bank then existing
It Is further agreed that these presents
constitute a continuing agreement apply
Ing to any and all future as we'll as to ex-
listing transactions between the under
signed and said bank.
$685.
Incorporation
Pasadena Deciduous Fruit Exchange