FINANCIAL REVIEW OF 1893. 



305 



had already formulated a new bill having the 

 sjinic object, and in tho last week of August de- 

 li.-itc ii|in this measure began. The outlook for 

 it- passage was encouraging until Sept. 20, win n 

 it became evident that a few Senators, notably 

 those from silver-producing States and from Kan- 

 sas, i IK- Dakotas, and Nebraska, were determined 

 to obstruct tho progress of the repeal measure, 

 and it was feared that it might be defeated. This 

 caused an advance in exchange, a policy of ex- 

 treme conservatism by bank officials, a depressed 

 fivliug among manufactyrers and merchants, and 

 a general disposition to wait for the. action of the 

 Senate ; but the month passed without much 

 progress being made, although at the end of 

 September it was hoped that the advocates of re- 



K v al would soon be able to force a vote upon the 

 11. The debate on the measure was continued 

 almost without interruption throughout October, 

 with a resort by Senators from the silver States 

 to filibustering after the 10th, until the 21st, 

 when an agreement for a compromise was made, 

 but this was unsatisfactory to the Administration 

 and it was abandoned. Efforts for unconditional 

 repeal were renewed, and on the 28th voting on 

 the amendments began. The repeal bill was 

 passed Oct. 30 by the Senate and Nov. 1 by the 

 House, and it became a law the same evening. 

 Money on call was easy at 1 to 3 per cent, through- 

 out October. Time loans were in abundant sup- 

 ply after the middle of the month at 4 per cent, 

 for thirty days on good mixed collateral, but the 

 demand was light. Commercial paper of really 

 first class was scarce, but the demand was good, 

 and gradually rates of indorsed bills fell to 5$ 

 per cent, by the close of the month. Early in 

 November the supply of money was so abundant 

 that loans on call were made at an average of If 

 per cent., but after the first week transactions 

 were generally at 1 to l per cent. Time con- 

 tracts were eagerly sought, but commission houses 

 were indisposed to borrow, and rates fell from 3 



to 8^ per cent, for thirty days ; 4 to 4^ for sixty 

 days to four months ; and 4j to 5$ for five to six 

 months: to 2 per cent, for thirty to sixty days: 

 2$ to 3 for ninety days to four months; and :ty 

 to 4 for five to six months by the end of No- 

 vember. Commercial paper of first class was 

 difficult to obtain, and the demand for good 

 names was urgent, resulting in a fall in rates to 

 3$ to 4 per cent, for indorsed names against 5 

 to 5$ early in the month. The surplus reserve 

 of the banks was unprecedentedly large, amount- 

 ing to $70,835.175 by the 25th ; the New York 

 institutions were overburdened with deposits of 

 interior banks upon which they were required to 

 pay interest ; merchants sought to employ their 

 idle capital in loans upon stock collateral and in 

 purchases of long sterling for investment, and 

 many importers anticipated settlements of ob- 

 ligations due abroad at the end of the year. The 

 gold in the banks increased beyond the capacity 

 of the vaults, and a special place of deposit was 

 secured, and Clearing House gold certificates 

 were issued. In December money on call ranged 

 between 1-J- and f of 1 per cent., the lowest since 

 1884, when transactions were recorded at i of 1 per 

 cent. Time money was in abundant supply, with 

 an insignificant demand, by reason of the lim- 

 ited requirements of the commission houses, 

 whose wants were satisfied in the call-loan 

 branch of the market, and quotations were 2 per 

 cent, for thirty to sixty days ; 2^ for ninety 

 days to 4 months, and 3 to 4 for five to six 

 months. There was a good inquiry for the best 

 grades of commercial paper, but offerings were 

 small, and prime short indorsed bills receivable 

 were quoted at 3 to 3? per cent. 



The condition of the New York Clearing 

 House banks, the rates of interest or premium 

 for monev, exchange, and silver, and the prices 

 of United States bonds, on Jan. 6. 1894, com- 

 pared with the same items for the preceding two 

 years, are as follow : 



* Extended 2 per cents. 



The following is the New York Clearing House statement of totals at the beginning of each 

 quarter of 1893 and at the end of the year: 



VOL. xxxiii. A 20 



