The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-09-24
FINANCIAL and COMMERCIAL.
WALL STREET,

WALL STREET, I
SATURDAY, Sept 23-6 r. M.
On Change to-day wheat was strong, in response
to favorable advices from Liverpool. The cotton
market was weak and lower.
THE COTTON MOVEMENT.
The receipts Of cotton at all the ports for the week
were ,eO8 bales, against 1851 bales the previous
week. The total receipts since September !, 1871,
are AGA bales, against 6s,46i bales for the cor
responding period Of the previous year, showing
decrease Of 5000 bales in the present crop. the
exports from all the ports tor the week were 1883
bales against 1855 bales for the same week last
year. The total exports for the expired portion OF
the cotton year 29926 bales, against 626 bales
for the same time last year. The stock at all the
ports Is ss3s4 bales, against 72426 bales for the
same time In 1870. '~..~---.ss--"- -
THE BANK STATEMENT.
The weekly statement Of the associated banks
proves very unfavorable. The total loss In reserve
is over six millions, comprising q loss Of five and
half millions of legal tenders and over half million
of specie. Inasmuch as the Treasury operations OF
the week embraced sale OF six millions Of gold and
purchase OF three millions OF bonds the loss In
greenbacks must be attributed in great part to Ship
Of currency to the interior The loss In specie
occasioned, naturally, great deal OF SURPRISE In
view Of the heavy sales OF government gold but &C.
moderately large specie shipments OF the week. More
over the average Is rising one III specie, and does
not, therefore, show the real strength or the banks
in this item. But any calculation of the reserve
based on this consideration should also take into
consideration the fact that the average in green
backs Is FALLING and that the loss OF five and
half millions does not fully represent the decrease
Of legal tenders. Some effort has been made, slight
though 1t be- to curtai the liabilities, and accord
ingly the deposits show not only the loss OF reserve
above specified, but also contraction OF about
three and half millions in loans, Occasionlng re-
auction Of nearly ten millions In the deposits. Des
pe this effort the surplus reserve mas been impaired
to the extent Of about s. 00o and rs the banks
last week had surplus OF only s4,7OO,OoO, they
are left now with o surplus OF only
little over q million dollars This extraordinary
situation of the banks has seldom or never been
paraleled IN their history. When 1t is remembered
that there only about sixty banks in the Clearing
House, and that the uptown and more conserva-
tive institutions are certain to hold surplus reserve
equal TO more than the million dollars OF surplus
shown in the combined statement OF all the banks,
there Is prinsa Jdcte evidence that fully majority
of them have grossly violated the law requiring
them to keep their reserve up to the specined per-
centage; ana In view Of this we think 1t highly I'M
portant that the Comptroller of the Currency should
demand an official statement for to-day and strictly
enforce the penalty prescribed for violation OF the
law. Otherwise what safeguard have the cOmmu-
nifty against q most dangerous bank expansion
With the reserve thus drawn down to the verge Of
its limit and with outstanding loans Of $500 00O
the statement furthermore shows that In order to
sweN accommodation to borrowers the banks have
used not only the $240 900 on deposit with tnem
but about $7O 0oO 900 out of their 600 CAPT.
tal The explanation OF the disparity between the
figures of the surplus reserve given last week and
those above lies in the correction OF mistake made
in the totals Of the Clearing House, by which the
circulation was represented as about 100000 less
than 1t really was. The statement corresponds with