New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-09-17
TO TAKE OUT CANCELLATIONS.
CLEARING HOUSE BANKS PLAN To RE
IIEVE THE SHORTAGE OF MONEY
THE BANK STATEMENT.

The National banks belonging to the New
York Clearing House are preparing % relieve
The deficiency in money by taking out circula-
ton. that Is. they going 70 secure from the
Treasury Department new supplies Of their own
notes They will deposit with the Treasury De
uartlnent United States bonds and will be al
lowed by the Department 10 receive notes bear
ing their own names To the amount OF 9o per
cent Of the bonds deposited. Within the next
two or three weeks il is expected that S'VooOOD
- 100000 In circulation VIII be taken out
by the National banks belonging to the Clear
ing House The circulation of these banks has
been considerably reduced i'm the last two or
three months The reduction I'm the last week
as shown by yesterdays bank statement was
Sl5S 100. The total OF circulation Of the banks.
however is larger than last year. being Sill
So. 700 against Sl4 10000 at the corresponding
time I'm 1898
The banks may provide further relief to the
situation by an issue of Clearing House ccrtA-
Gates although steps in that direction have not
yet been considered necessary. The certificates
would only be good among the banks them
selves They would take the place Of actual
money in the settlement Of the balances ~
banks at the Clearing House. institutions other
than those belonging 10 the Clearing House
cannot use them neither can the general public.
The bank statement yesterday was urfavor-
able. lut not as unfavoraile as had been eX-
pectod The surplus reserve was practically
wiped out being reduced from s.. 1910 10 the
insignificant sum of $275.4Jo \ contraction of
s.. N-4 800 in loans was not more than half as
great as had been looked for \ decrease or
SO 600 700 in deposits was about in accordance
with calculations. \ loss of >J947.40o in cash
was considerably less than had been expected.
However, the bank statement. and particularly
the loss in cash. showed that money vas Aov-
ing from New-York to the Interior and IL is
reasonable to suppose that the next bank state
mcnt VIII disclose a further material shrinkage
i'm cash. together with smaller loans and smaller
deposits. The outlook is for a supply of money
far below the demand. with high rates for
considerable Time % come.
4 transfer Of 5000 600 in currency to Chicago
was made through the Sub-Treasury yesterday.
Gold certificates 10 the amount Of SJuOuOO We're
received at tho Suh-TrCasury from Washington.
The supply Of bills is growing smaller and
larger use Of gold coins is enforced
The bad bank statement was responsible for
another large decline in stocks. There was an
especially severe fan in Metropolitan Street
Railway. The stock dropped 49, points 10
l3ll2. hut il moved up TO 1H4 at the close SO
that the loss for the day was T. per cent Man
haitian Railway closed AZ lu>ii or only Il
above the lowest price. and its loss for he day
was "a per cent While Brooklyn Rapid Tran
sit closed at IS or - above its lowest price It
made a gain for the day Of = per cent
Losses in some of the leading active stocks
We're Colorado Fuel and Iron. "a. Tennessee
Coal and Iron. ~, steel Wire 2', steel Hoop.
81 Federal Steel. / Peoples Gas 23.. Amer-
can Sugar ~; American Tobacco ~; Della
ware and Hudson. L. Lackawanna. =. Reading
Burlington and quincy. IL, ST. Paul Rock
Island, ia; Louisville and Nashville lis