The Saint Paul globe., 1898-07-17
MONEY CONTINUES A DRUG
COUNTRY MUST HAVE EXPAN-
SION OF SOME SORT
Financier Says There Is Now More
Money Willing to Accept Lower
Terms Than Ever Before in the
History of the COuntry-Loans
Expanding, the Week Showing
n Marked Increase.

NEW YORK, July 16.-The Financier says:
'1The bank statement for the current week
reflects the operations incident to the fnan-
ciering of the new government loan, and the
totals do not differ materially from what mad
been anticipated. The banks lost heavily to
the treasury, although they gained some
thing like $2.000.000 from the interior. The
reusit is shown In net decrease of 81 049, 500
IN cash. and, as deposits remain nearly Sta
tionary. the reserve decreased almost In the
same proportion, or $S, 979,495 to be exact.
Loans are still expanding, the increase for
the week having been $6,17S2OO. In the light
OF known facts as to the slowness of COM
merclai paper. 1t Is needless to say that this
gain has no connection with mercantile af-
Ialrs IT can be traced almost without OK
cepton to the banks which are acting or
are preparing to act as government deposit
tories. or course other banks are doing their
usual share Of business but the rapid fuctu-
atlon In the principal item is due almost en-
tlrely to the causes mentioned.
-, NOW that the bond subscription has closed,
ene real onset on the money market will pe-
come apparent. 1t is known that ninety mil
Mons or more have been paid into the treas
ury for small bonds. This money has, in
re reeamX, been Withdrawn, or Is now in course
OF collection, but the treasury disbursements
are so neaYy that the effect has not been
perceptible. especially as a. large portion Of
II remains in depository banks. During the
next ten days the per cent checks on the
successful bids for the remainder of the loan
VIII go through the banks and then will be-
gin the payment on the principal These in
all probability, will be extended in such a
manner as to prevent heavy accumulation
OF cash in the treasury. and as the daily
deficit in that branch Of the government IS
between one and two Millions 1t will be seen
that the completion of the loan will not dis
turo the money market. The return Of the
unsuccessful bids on the other hand Will
throw on the market for investment large.
sum OF money. This is OF the features
disclosed by the enormous oversubscription
winch Is attracting no little attention.
+ 1t becomes patent that the country has more
money willing to accept lower returns than at
any previous period. This is being shown in
the West, as well as in the East, and IT Is
complicating the banking system in New
York, because outlet which could always
be depended upon is now closed through TIE
accumulation OF capital which is being used
to meet the needs of local communities. In
brief, the country must have expansion Of
some kind or money will continue drug on
the market"
BANK STATEMENT.
NEW YORK. July 16-The weekly bank
statement shows the following changes:
Surplus reserve. decrease .......... SO 979, ATS
Loans, increase ................ 6175, 200
Legal tenders. decrease ............. 317,6OO
Deposits, decrease ..... .. 2S1. 700
The banks now hold s4s ss5 s25 in excess ss0o9 of
the requirements of the 25 per cent rule.
NEW YORK MONEY.
NEW YORK. July 16.-Money on call
paper s&@ per- cent cent mh Sterling %s5shaase sashange
Steauy, win actual business in bankers bills
at s4.e5A@4s6 for demand and at s4s4I51
4.S4% for sixty days. Posted rates, S4S5%
and $4.s7. Commercial bills, s4.s31a Silver
certificates. 59g5914c. Bar silver, 591sc. Mex
lean dollars, 455sc.
BANK CLEARINGS
st. Paul. SSH, ,69O.73
Minneapolis, $685. 727.
Chicago. S1S,1S7597.
Boston, Sic, 1850. .263.
New York S129, ,S25, 573
TREASURY STATEMENT.
WASHINGTON. July 16.-Today's statement
OF the condition of the treasury shows: Avail
able cash balance, $245, ,173, ,954: gold reserve,