Waterbury evening Democrat., 1907-11-02
BIG BONUS FOR MONEY
In Battle For Coin s100,0o0 Bring
 $1O3,OO0 In Bank Funds.
EXCITING DAY IN WALL STREET
Financial District Sees Unusual Spec tacIe of Men Bidding Two and Threa Per Cent For Currency-Sequel to the Hoardne.

tacIe of Men Bidding Two and Threa
 Per Cent For Currency-SequeI to the Hoarding.
 New York, Nov. 2.-There was a wild scramble for currency in banking circles throughout the eastern cities of the United States. In New York the demands could not be fully met and early in the day premium for coin oi bank notes was paid. The spectacle of | men bidding per cent and later peI cent for currency was witnessed fol the first time since the memorable de preSSion of 1893.
 Probably the end of the month re- quirements as well as the Saturday demands for pay roll purposes caused the demand for currency to pay work men who do not have bank accounts, but whatever the causes the facts were l that $100,000 in currency was worth $103,000 in bank funds at the close oi another exciting day.
 Sequel to the Hoarding. The premium paid for currency changed the par of foreign exchange, and one of the most spectacular occur. rences ever witnessed in the foreign exchange market took place. Cable transfers on London sold up to a point where ordinary gold would be export. ed from this country. Notwithstanding this the buying of cables was for the purpose of bringing gold here imme' diately. About $2,500O00 gold was bought in London at gold export prices simply because the great banking in stitutions of the city wished to provide their patrons with coin and currency. Paying money to obtain currency came as a sequence to the shock to confidence followed by the boarding of money first by individuals and later by institutions and firms which wished te | strengthen their position to meet what ever extraordinary strains might come. Premium For Currency. Demands on New York banks for currency were very large, and when great corporations employing thou sands of men applied to their banks for the regular amount of currency they were told their needs could not ba supplied in full. AS an instance the directors of the International Harvest. CT company decided to pay their 20,00G workmen in the proportion of so per s,, .1c-N nI, per cent in cash. The United States | Steel corporation is now considering q similar plan. The New York Central paid it's monthly pay roll in checks, az of currency required. Other cOrpOra' tions which have to pay in cash be. cause their employees could do nOth' ing with bank checks were compelled to seek currency and in addition pay q | premium for it.
 When it became known that a pre- mium was being paid for currency the | effect was electrical in the foreign eX- change market. Cable bills, which were in great demand. shot up nearly 400 points, or f cents to 4.90. Demand checks sold at 4.S7A, a similarly sen sational advance. The news took Lon don by surprise. and the engagements of gold, amounting to S2.500O00 addi- tional, sent the discount rate for mon- ey in London up to 6A per cent. Bankers Give Assistance. Droi-arc nnr, ,,orp iao tino Inv ca hla with London said the report was current that the Bank of England would take immediate steps to protect the London market from further withdrawals of gold. The step is likely to take the form of a further advance in the dis count rate. The banks rate is now 51a per cent or even higher to meet the changed conditions in New York.
 While funds were being bought at a | high premium abroad, local bankers continued their efforts to strength the currency situation. Frank A. Wander lip stated that the National City bank had bought $1.OO0G00 government bonds during the day. which will be used as a basis for additional circula- tiOn. In all the National City bank has bought S2.3O0.0OO of government bonds and will take out bank notes under Comptroller Ridgely's offer. The National City bank has also arranged to buy S1.O0O.0O0 in American curren- cy. which is now being employed in Havana. A premium of three-quarters per cent was paid for this amount. and it is now on its way to New York. These activities will result in the ad- dition of S3.3OO.OOO to the supply of currency.