278 



FINANCIAL REVIEW OF 1896. 



The price of bar silver in London fluctuated dur- 

 ing the year betweeen 31 \-^d. in March and 29fc?. in 

 October. 



The prices of leading staples on or about Jan. 1, 

 1897, compared with prices at the same date in 1896 

 and 1895, were as follow : 



days, 3 to 4 per cent, for ninety days to four months, 

 and 4 for longer periods. Large amounts were 

 placed on long sterling at 3 to 3 per cent, for 

 sixty days, and later loans were made on such col- 

 lateral at 2J per cent. 



The business in commercial paper was limited in 



Money. Money on call loaned at 1 and at 127 



per cent, at the Stock Exchange during the year. 

 The market was only moderately active until 

 February, when there was a slight flurry, caused by 

 the fear that, influenced by bond payments, the 

 money rate might be disturbed ; but a later modifi- 

 cation of the bond circular allayed apprehension, 

 and there was not the least derangement of the 

 market caused by the bond settlements. Normal 

 conditions prevailed until early in August, when 

 the failure of the Diamond Match deal in Chicago 

 ' and the panicky fall in stocks in the New York 

 market caused an advance in the rate to 15 per 

 cent. ; but later there was 1 a fall to 1|, and money 

 was fairly active in September. The withdrawals 

 of currency from the banks gradually increased 

 during October, and toward the end of the month 

 there was little disposition to lend, owing to the 

 uncertainty regarding the result of the presidential 

 election. On the 30th there was an advance in the 

 rate to 127 per cent., and a syndicate of leading 

 banks was promptly formed for the purpose of 

 turning over to the Clearing House Loan Commit- 

 tee $10,000,000 to be loaned on the Stock Exchange 

 in order to meet the most urgent demands and to 

 avert a crisis. About $5,000,000 of this bank money 

 was loaned at from 6 to 25 per cent, per annum. 

 On the day previous to the election loans were made 

 at 96 per cent., but the day after election the rate 

 fell to 6, and gradually the market grew easier, the 

 rate falling to 1 per cent, by the last week in No- 

 vember, influenced by a large accumulation of capi- 

 tal at this center which was reflected by the bank 

 statements. The average rate in December to the 

 close of the year was about 2 per cent. 



Time money was freely offered in January at 6 per 

 cent, for domestic for five to six months, and 5 to 5-J 

 for foreign for ninety days to four months. Late in 

 February rates were 4 per cent, for thirty to sixty 

 days, 4 for ninety days, 4 to 5 for four to five 

 months, and 5 for six to seven months on good stock 

 collateral. There was no change in this branch of 

 the market until after the middle of April, when 

 rates fell to 3 per cent, for thirty to ninety days, 3-J- 

 for four to five, and 4 for six to seven months, and 

 these quotations ruled until the end of May, when, 

 in consequence of a light demand, there was a de- 

 cline to 2| per cent, for thirty to sixty days, 3 for 

 ninety days to four months, 31 for five to six, and 

 4 for seven to eight months. In June rates were 

 of 1 per cent, higher for these periods, but the in- 

 quiry was small. The offerings were light in July, 

 but the demand was good, and rates were 5 per 

 cent, for short and 5 to 6 for long periods. Early 

 in August the quotation was 6 per cent, bid for all 

 periods, but later a commission of from 1 to 2 per 

 cent, in addition to 6 per cent, interest was de- 

 manded for negotiating the loan, and these rates 

 remained unchanged until after the election in No- 

 vember, when the offerings grew more liberal, and 

 rates gradually fell to 3 per cent, for thirty to sixty 



January to purchasers of four months' names at 7 

 to 8 per cent., and the banks were not in the market 

 as buyers, anticipating a bond issue. In February 

 rates were 6 per cent, for the best indorsements and 

 for first-class single names until toward the end, 

 when the quotations were 5 to 5^ per cent, for 

 sixty- to ninety-day bills receivable and 5- to 6 

 for four months' acceptances and first-class four 

 to six months' single names. More or less impor- 

 tant failures caused close scrutiny of names in 

 March, the banks refrained from buying, and rates 

 were unchanged until early in April, when the quo- 

 tation was 5f to 6 per cent, for indorsements and 

 6 for four months' acceptances and for first-class 

 single names, but toward the close of that month 

 a better demand caused a fall to 4| to 5 per cent, 

 for indorsements, 4f to 5J for acceptances, 5 to 5-J 

 for prime and 51 to 6 for good four to six months' 

 single names. There was a good inquiry for paper 

 in May, and at the end of the month rates were 4 

 to 4-J per cent, for indorsements, 4 to 4f for ac- 

 ceptances, and 4^ to 5 for first-class single names, 

 and the offerings were moderate. In July the paper 

 market was almost stagnant, and after the. middle 

 of the month rates were firm at 5 to 6 per cent, for 

 indorsements and 6 to 7 for other classes of the best 

 paper. In August the market became very firm, 

 and it so continued until after the election, with the 

 exception of a brief interval in September, and rates 

 generally ruled at 7 to 9 per cent, for indorsements 

 and 9 to 12 for choice single names. In November 

 there was a good demand, and rates fell to 4 to 4| 

 per cent, for bills receivable, 4 to 5 for first-class 

 and 5 to 6 for good four to six months' single names. 

 In December the market was dull, and quotations 

 were 3f to 4 per cent, for indorsements and 4 to 4 

 for first-class single names. 



Bank conditions were more or less affected dur- 

 ing the early part of the year by the settlements for 

 the $100,000,000 bonds. " Then followed some de- 

 rangement in July caused by the exchange of gold 

 for legal tenders at the Treasury, and during Sep- 

 tember and October there was disturbance due to 

 the withdrawals of gold and currency for hoarding, 

 and also in response to the demands for money for 

 crop purposes. After the election all the items 

 largely increased by reason of the return of hoarded 

 capital, and during November there was a gain of 

 $21,638,500 in loans, $13,834,900 in specie, $16,740,- 

 000 in legal tenders, $52,696,700 in deposits, and 

 $16,601,225 in surplus reserve. 



The loans of the associated banks fell from $465,- 

 580,700 at the beginning of the year to $447,142,700 

 by February. Then there was a gradual rise to 

 $479,540,900 by July 18, followed by a fall to $442,- 

 179,700, the lowest, Nov. 7. and at the end of the 

 year they were $487,673,300, the highest, Specie 

 was $68.954,700 at the beginning of the year, and 

 at the highest $77,500,900 Feb. 8. Then, in- 

 fluenced by payments for the Government bonds, 

 there was a fall to $58,515,300 by March 21, fol- 



