The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-08-17
What is an "UnfavorabIe'
Report?
Gold Stronger and More Active-The
Course Of Speculation To-Day.
Railroad and Government Securities Firm
and Stocks Dull.
WALL STREET,
SATURDAY, August 1916 p. M. !

y
SATURDAY, August l6-6 p NJ
THE FOREIGN MARKET.
There is no especial feature to be noted in con-
nection with the foreign market. unless it be a re-
lapse from the buoyancy in American securities
which has been reported for several days past. In
the present condition Of the London market we do
not anticipate any long continued depression. Old
fve-wenty bonds Of 1865 declined to OAK, and ten
forties to co. Erie to At. Consols were unchanged.
Illinois Central was quoted at IS a So. In Paris
rentes were steady at ST. Coo.
THE MONEY MARKET
Money was easy. call loans being readily effected
at 3per cent, with considerable business done as
low as 21s per cent. or currency loans there was
generous supply at per cent for 80 days, 9 a per
cent for 60 days, per cent for 80 days and to
per cent for all the year. Discounts ruled from
to per cent, according to drawer and date OF ma
turity. Gold loaned at 7-16 to " per cent for 80
days, q to u for 60 days, and u to per cent for
and months.
THE BANK STATEMENT.
Further loss in the reserve Of our banks Is shown
by the statement published to-day Owing to large
payments into the Treasury on customs account
the decrease in specie amounts to $2,1769Oo. To
the demand that has set in from the country banks
may be partially ascribed loss in legal tenders Of
81, 49, 2OO although other influences have doubt
less also been at work. The sum total Of decrease
in the excess over the legal reserve is the differ
ence between $12 $3.50, reported on the 9th Of
August, and 1884,, 200, reported tO-day-to wit,
$ao71 45O. During this period loans have expanded
300. The percentage Of reserve to liabilities
OF the national banks Is 29.07; that Of the State
banks $685. the average being $3.50. In this con-
nectiOn we take occasion to answer the inquiry OF
correspondent why bank statement is
pronounced '.unfavorable" when 1t shows
an excess of 100000 over and above
the % per cent legal reserve. The word
''unfavorable" is only used comparatively. Last
week, for instance, the excess was $12, 000 on
the I'd of August was $13 100000; on the 18th Of
July it was $14,62o,O Oo and on the 18th Of July
SIG 435, O0O Since the lastnamed date, therefore,
there has been reduction on the excess OF re-
serve of more than six millions of dollars, condi-
ton of affairs which, when it is remembered that
the excess is always a sign OF strength, clearly
ustines the remark that, as compared with that Of
few weeks ago, the statement Of to-day is un.
questionably nhnfavorabe," and will continue to
become more and more so as the figures approach
the minimum fixed by law, which ID the lowest
point tolerated by the government as the basis
upon which they can do a legal business. The fol-
lowing is comparison Of the totals for the past
two weeks-
August Q. august 16. Differences.
Loans $780, 1885, 100 1902 6l4 900 Inc. 81 s55, 900
Specie. ...... 29s2o,OOO 2ze4410o Dec. 2,l75,eoO
Circulation. 500 27,2 700 Dec. 800
Deposits .. 237 1873 100 234, 1857 300 Dec 2265, 800
Legal tenders 49,Oo2,3o0 47,540,10O Dec 1462, 200
The following shows the relation between the
total reserve and the total liabilities:-
August 9. august 16. Differences
Specie $29S 900 $27, ga 100 Dec. 81 175, 900
Legal tenders 49, 0O2 800 A. $40 100 Dec. aga zoo
Tot reserve 1900 SIS. 200 Dec. $685., 100
Circulation. 27,223,6O 27,222, 700 Dec. 800
Deposits go. 237 100 234 1857 800 Dec. 500
Tot liabtess2s4 600 $2e2 900 Dec 81, 600