The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-09
TO RELIEVE MONEY MARKET
TREASURY DEPARTMENT WhTCHING
yHE SITUATION ~ THIS CTR.
Prompt Assistance VIII he Rendered When
It Becomes Nccssary-Ths Banks May
lie Allowed to Retain on Deposit Moneys
Which Nelnnr To tho GnYernnanl.

Prompt Assistance VIII Its Rendered When
II becomes NcceAary--The Banks May
lie Allowed to Retain ON Deposit Moneys
which belong to tho Government.
WAsHINGToN. Sept. S.-Informatlon has been
received by the Secretary OF the Treasury
from private sources that financial stringency
is developing in the New York money market.
and means are under consideration for reiev-
ing the situation. The Treasury Department
has been watching for some time the money
conditions In Now York. as eviGapeed by the
weekly bank statements. and 1t was seen
several weeks ago that situation was
likely to develop which would need the offices
OF the Treasury Department TO relieve. Very
recently it has learned that the expected strin-
gent condition of money in New York banking
circles has actually arrived. and that the bank
statement to be issued tomorrow will show
that the reserves are only S4.O00.O0O or
S5.OOO.000 above the minimum prescribed BIZ
law. Money Is said to be becoming tighter all
the time. and It is predicted that by the middle
OF autumn. unless some relief is afforded. the
situation will be an embarrassing one.
When Secretary Gage was ask oil about the
m attertO day. he said that he did not feel Mt this
time Ike anticipating any action which the
TreasuryDopartment mi light see III to take to re-
lieve the situation in New York. He said further
that he had received no request for relief from
the New York bankers. and that for he present
it was best for the Treasury administration
not to cross the bridge until the bridge was
reached.
There is no doubt. however. that prompt as
sistance will be rendered by the Treasury
when it becomes necessary. The officials
OF the Troasury Department realize that a
cause contributing more or less to the
present situation among the New York banks
Is the payment Of funds to the Government on
account OF revenues anu other obligations. IL
is believed that Secretary Gage will. If the New
York bankers regard it as necessary. decide to
allow these funds currently due the Govern
msnt to 20 on deposit in the banks owing
them. instead Of collecting the money and
placing 1t in the vaults OF the Sub-Treasury.
according to the common practice. 1t has
been intimated that Secretary Gage some time
ago assured one or more Of the New York
bankers that the Treasury Department would
take this action in case a money strngency
should arise. but the Secretary declined to-day
to confirm this statement.
The belief 10 expressed by persons at the
Treasury who are in position to know. that the
action on the part OF Secretary Gage
would perform great service in relieving the
financial situation. 1t is explained that there
could be- no serious obstacle in the way OF such
an action. for il is recalled that the Secretary
decided two or three weeks ago to allow the
National City Bank to retain on deposit in its
own institution the funds. amounting to some
thing moro than $3.OOJ.OOO. due on account OF
the purchase of the present New York Custom
House property. Whether or not there was
any understanding between the National City |
Bank and the Treasury Department prior to |
he sale OF the Custom House that the $1,000 |
300 should be left in the bank. cannot be ascer-
aimed: but it Is known that the Government
made the arrangement with the feeling that in
he present state OF money the bank could be
'eeved from some Inconvenience by not in
listing that the amount OF the purchase be
handed over to the Governmen in cash for de-
Jost in the Sub-Treasury.
Preparation was made at the United States
yesterday for an ther transferto
his city OF Australian gold deposited at San
francisco. Treasury warrant was received
~ virtue OF which 81. 900. 600 was placed to the
,redit Of the Superintendent OF the Mint at San
francisco. who will draw against the amount
n the usual way. The last similar warrant re-
eived called for ST $50 900 and this sum has
nce gone to swell the reserves of the local
banks. The cheeks against the present
warrant are not expected to pass through
he New York CI'aring House for week or
en- days.
Statistical experts figured yesterday that by
eason OF shipments OF money to the interior
II the country and the operations OF the banks
With the New York Sub Treasury. a loss to the
banks during the past week OF $685.. $50 was
Indicated. The banks shipped direct by e1-
'ress 81 .2Sl $50 and received 81 81 400 a loss
n the movement Of So. 100. $50 The New York
gained from the banks S.. $780,
100 The larger proportion Of this la st loss by
he banks was on account OF internal revenue
md customs payments. In view Of these sta
istics Wall Street anticipates an unfavorable
,ank statement to day.