| Show ufa mrs president of ol 01 buo tew york city in an interview with a representative of the journal of banking gives tle following very sensible review of the fall business of the country and what would naturally lead to a stringency in the money market he says I 1 have had numerous dispatches from correspondents in the principal cities during the last few weeks in reference to alie situation the banks in this city doing a commercial business hold at the present time an unusual large amount of bills receivable and commercial paper this paper is based upon the cot ton rice and other products or the south wheat and other grains in the hig mills and elevators of the northwest ore which is being cover ted into silver and lead in alie huge smelling smelting sm elting works of the far west and hogs and cattle to be slaughtered later in the year it is also based to a considerable extent upon wool and cutton hides and rubber and other merchandise in store in this city some of hese products are bow being moved on the railroad and much the larger portion will arrive at the seaboard beto rethe beginning of the new year and be sold to liquidate the bills held by alie banks in this city and other eastern cities the difficulty in the fall season of tle year is that owing to the necessity of a large amount of money being required to move the crops and provide for the increased trade of that season banks doing a commercial business find it al most impossible to give all the facilities needed alie fall business of 1890 commenced earlier and lias been muc larger than usual and alie returns from the interior are later than usual in arriving thore have been no failures afim poi tance in commercial circles be has been confided chiefly to the s tock board arising principally from foreign complications there is no cause for alarm BO far as the banks are concerned if there had been any such cause the action of the clearinghouse clearing house recently authorizing alie issee of loan certificates upon stocks and bonds and bills receivable should allay all apprehension this action has rendered the banks impregnable the effective machinery of alie clear ing house has been brought into operation and all of the banks can convert any portion of their good bills receivable into certificates this course had the desired effect in alie fall of 1800 afterward in 1873 and again in and there is doubt it will have a similar effect in quieting all apprehensions among those who may fear a financial crisis some of the banks in order to conform to law in reference to reserve have called in their loans so tha they hold cash in excess of its requirements while other banks equally and conservative have declined to make such calls in order to make up their average because they prefer not to inconvenience bood customers and aliey believe that reserves in a monetary crisis are like the reserves of an army to be used for the common good the action of the clearinghouse clearing house was primarily for the purpose of assisting three small state bank s which had temporarily pora rily suspended their usual routine of business but it was equally for the purpose of giving facilities now as in in and in 1884 to all the banks to extend accommodations to their dealers and correspondents who are pursuing a legitimate business and can give undoubted security |
