Article Text
BUYING AND SELLING CASH. The Fourth National Won't Bank for Zimmermann & Forshay. In these times people who have bank accounts and who show any extraordinaey preference for actual cash are likely to get into trouble. Two weeks age Messrs. A. J. Well & Co. of the Stock Exchange were requested to close their account at the Manhattan Company's bank a day or two after they had endeavored to draw out $50,000 in cash. Yesterday another Stock Exchange firm. Messrs. Zimmerman & Forshay. were requested to withdraw their account from the Fourth National Bank. Their principal business is dealing in money and bullion. They are always active in the silver bullion market. and are one of the principal houses dealing in foreign moneys. Last Friday Messrs. Zimmerman & Forshay advertised in the daily papers that they would pay a premium for bank and legal-tender notes. and silver and gold coin. and announced that they would pay for the same in their certified checks. payable through the Clearing House. They were desirous of securing all the currency they could at a reasonable premium. because of the currency famine which made it impossible for many employers having large pay rolls to secure sufficient cash to meet them. They have also received orders from out-of-town banks to secure currency for them. In fact the demand has become general in its character. One other Wall street firm has also advertised for currency. but in a more modest manner: hence its dealings have not attracted SO much attention. The Street at once began to discuss the effect of Messrs. Zimmerman & Forshay's announcement. some arguing that the business the firm had engaged in Was perfectly legitimate. while others have criticised it as likely to increase the prevailing uneasiness. To what extent their action influenced the Fourth National Bank to decline any longer to keep their account it is impossible to say. President:Simmons of that institution said that he had asked the firm to withdraw it for the reason that he did not like their methods of business: but he declined to go into particulars. The firm at once transferred its account to the American Exchange National Bank. They had nothing to say regarding the transfer. except that they believed they were engaged in legitimate business and by offering a premium on money were simply endeavoring to meet the requirements of their customers. who could not get money from the banks. Exceptional sales of currency were made yesterday as high as three per cent., but the ruling rate was two per cent. Gold coin was sold in large amounts at one per cent., as it is less desirable for use in making up pay rolls and in conducting small transactions. At a premium of one per cent. foreign bankers accepted orders from out-of-town banks and other institutions to import gold for them. and the indications are that a good deal of business will be done on this basis The foreign exchange market promptly reflected this premium on gold. both sight sterling and cable transfers advancing sharply. Some of the gold which will arrive this week from Europe was sold yesterday to the banks at a premium of about one per cent. The greater part of it, however. is consigned to some of the larger banks that furnished the money that facilitated the movement. The first of the gold shipped from London last week came to hand yesterday. The amount was $1,500,000, nearly all of which went into one bank. An interesting episode yesterday was the appearance of it run on the National Bank of the Republic. The receivers of the Erie Railway Company keep one of their accounts in that bank. and on Saturday paid off a large number of employees in checks upon it. They congregated in the bank yesterday morning to the number of 200 or more to get their checks cashed. Fortunately the bears on the stock market did not learn of the fact. or they might have misinterpreted it as a run for the purpose of depressing prices. Shipments of currency to the interior were unusually light yesterday. for the reason that requests for it wereinot generously dealt with by the banks. It was sent only to country correspondents who really needed it, and in many cases only a part of the money asked for was forwarded. Official announcement was made on the Stock Exchange yesterday that the firm of Worden & Fanshawe 9 Wall street. had dissolved. Mr. Daniel T. Worden is the son of Rear Admiral Worden. and has been a member of the Exchange since May 8. 1869. The firm was organized three years ago. "This iss pronitious time to dissolve." said