New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-27
4 STREET. or MONEY.
IMMENSE DEPOSITS IN NETWORK BANKS
PRODUCTION OF INTEREST.

IMMENSE DEPOSITS IN NETWORK BANKS
-RFDUCTTON OF INTEREST.
The New-York banka surfeed with money.
The Tribune or Sunday called attention to the re-
markable bank statemen. OF The day before, which
showed that III deposits f. tbs associated banks
aggregated S7l4 1880
II has boon thu custom of most New-York banks
TO allow Pc cent interest OF the balances kept
with them by the out-of-towr banks and GER
tain other accounts The Fourth National Bank
has down lis interest rate on thaso accounts to
- per cent. The action Of tho INK was made
public by notice received from :. yesterday by the
Produce Cotton and Coffee exchanges The notice
WAS signed by Charles A. Patterson the cashier
and read a. follows:
owing to the low rates sill ruling in this
city and TIE uneerta,.ats OF am improvement In
form you that on and after February l.. 1898. and
MS on your daily balances averaging $500 or over
per month viii be ~ per cent per snnum. Beliey,
Linking principles. We trust that Il viii meet with
your approval
The balances referred to the margins held
against contracts In futures" The official report
Of the Produce Exchange issued Saturday
showed the following balances deposit
gins: Corn Exchange Bank s22s 10. Fourth Ma
tional Bank s0.5S9 Mercantile National Bank.
Sleb5O; Produce Exchange Bank. $3.50; Bank OF
New York $4,000 Seaboard Nationa! Bank. S9,95l
and National Union Bank $3.50; Total. 1883. lS9
These figures are unusually sInai, ana Indicate a
limited speculation the Produce Excnapgs. II
IS presumed that tho action Of the Fourth National
Bank Will be followed by other banks. The Chem
ical National Bank and the American Exchange
National Bank have no. allowed interest or any
deposits. The Importers and Traders National
Bank for ak months has been paying only IL per
cent
The balances NJ the Clearing House yesterday
were heavy amounting to Ios7oco The chief
debit balances were the National Park Bank
$3.50 90 and the Chemical National Bank si.he,-
90 The chief credit balances were the National
5. 77isooC 49, ''''''
The banks when are special. depositorie. for
money paid on account Of the debt OF the Union
Sub-Treasury Yesterday the !nstalmen OF lC por
cent called Tor those deposits Tina only bank
holding Union Pacific funds which did not deliver
the money 70 the sub-Treasury was the National
sbou se@6G5 The amount delivered to The he New "
Treasury Tor redemption s7iov0 Of Government,
January l. It's Union Pacific deposits will be re
dIoed hy that amount As soon as the usual yerihcs
lion OF the lonGs can be made BY tho redemption
department Of the Treasury, which Will DE within
Henry clows said Yesterday: The leading banxs
Of Germany are now paying 40 hgh Us ~ per ccns
interest Oh deposit money know. II my own
been made to TWO " the large German banks at
that rate BY chicago banking institution. un-
has also been loaned by Chicago banks to Europe
making Si.o'NF' now standing 10 their credit
abroad. Boston banks and clpitalists loanng
10 Europe S5op. Hsi and New York banks and
bankers over Sp0or'. making 100000 1t is fair
O., assume that Europe owes this country a. the
present t!rao ar least 80 c,l1O) which represents
50 much gold or rs equivalent that bo drawn
from Europe by this country at almost any time.
Au experience 20 such an extent has never pre-
wously existed Il clearly shows the advantage Of
remaining as W. are now. on gold bass II or
alies 'ris country lCar 10 Europ. 500 90 40 Of
money which can oasy no spared. at higher rates
Of interest than Obainablc on this side This
could not bo awaited Of IL our money basis was not
Of the same intrinsic character that OF England
Germany and France whereas. Il on the
e % I rrrc-eilNtr coinage basis. nation Of any
Importance excepting China and Mexico would
take money IN direct money dealings on any
terms whatsoever"