The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1867-01-11

THE CHICAGO NATIONAL 5aSk SrArgsEsrs.-l
The 7ritsae takes occasion 10 eriticise the
quarterly statements OF the National Banks Of
Chicago. something after the following style, and
rather insinuatcs that a cause for the present
striugeney IN the money markets of the country
can be attributed t. the manner in which many Of
she iarg,r National Banks are conducted The
Tribune Of The 9th says:
Their sas an active. and in some quarters an
urgent demand for money to-day from all sources
but more Particular, by provision Ind produce
operator, bat contrary to what nj ght he expected
from casual examination IL the tstatements
the banls ia many Instances ref sed TO grant The
accommodation sought for. The d-eount houses
are unanimous IN reporting tight money market,
hut why Il should he 50, judging from the exhib-
VI published yesterday, Is a question which AL
mits OF unls Two solutions. The banks are run
ming ms close 70 their reserves is prudent, and
consequently have very little money to lend or
elsc having money they not disposed 10 grant
any .avofs. We inclined think that the
first Is the correct solution, ahicA Of Deeessiiy
implies that the 'statements' are not any more
honest than The law allows For some time past,
We have heard good dea! about q marked falling
on in deposits, and the difficulty in making col
lrctians, np"n AL Of which the general s,agnation
ia trade has stamped its seal OF varaeity 1t is
my stery 10 those the outer edge Ut the ring
that the deposits shoald all at once, on quarterly
day. esite. saeh recuperatioa to make them
show an increase of nearly 100000 10 three
months. Fhr cash hand has grown In the
same tine fr,m Ss2ss, 600 to g., 400, Uee--an i'm
prnsemea, q Sil2.oou while AT the same time
the !aans ssi,ibit increase Of little over
$50 200. nh'eh would apparently prove tina, ID.
institute ~ well provided With funds as
they October isi last. The truth is the
cash on hana Is given in the statements is a
IN yth. ari hsd IN existence on paper, Of only du-
| ration enough 10 he sworn to. /; has leaked out
tr-iay Il little but great deal Of swapping
III check perp-trated. aud in some instances
checks re gwen to that they night be included
IN check u. ci.y banks, and cancelled after tie
statements were worn to. The stod,a opcraadi
may he thus ie-ciibed Director 4. of bank b.
knows hi bsnk to be hard up for something to
show ia the statement He goes to peighbor C
snd swaps cheeks with him TO the extent Of
$50. 600. deposits Ca cheek with, bank h, and
deposits As with bank d. Banks b and b
enter up rs resources and As checks which
apparently add $40, GOO each to the amount OF
cash hand OF the deposits are in each
case increased 10 the extent, but the dispru
portion OF cash hand to the deposits is By this
swapping. DECREASED. For instance, bank A has
u line Of deposits amounting 70 S20o, 900, and
| cash on hand Sloh,0oo, which is in the proportion
| of 10 to ). Add $50 600 and you make the pro
/ portion 10 10 &. which is seeming mproy eneut
| OF 20 per cent in the condition of the bank The
only way 10 check this evil is to compel the bar
| to clear with each other immediately before the
| statements are mnie out. They will then be pre-
| vented FIRM swapping and 'doctorng to any
| sxtent, thus giving the statements much more
truthful air than they now possess.
| This 81 stem Of quarterly reports 10 gross al
surdity, productive eli much injury to the business
interests Of the country. Every three months the
brakes are pnt on, causing an exceedingly annoy
| ing stringenes in the money market, for which
| there is nor the slightest necessity, apd for the
time being giving psraytie stroke to all branch
es of trade. The trainers OF the Currency Act sup
posed tina, these statements would give exhibit
of the general average condition, but experience
proves that il IL very uncommon average. The
banking business Of Chicago ought to be done
open and shove board. Give the public a weekly
statement Our merchants have the fullest conf
denee in the banks In this city, and care little be-
yond knowing how the money market 10. Cooked
statements must Of necessity arouse suspicious in
the minds OF those who have enough business
| sagacity TO sraiyrc a set of books. We want no
more quarterly statements, with their legal quib.
| bes and frauds"