The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-08-28
COMMERCIAL MATTERS. Etc.


The Transfer Of Capital from tho East to tn
West.
The New York Bulletin has an article on tn
decrease OF banking business in New Yorl
rsphvely to the progress of banking in tn
SSener parts of the United States, from which
We reprint the following comparative showing
OF ell the clearing house banks In New York
at the dates specified:
Jnly g. 1875. June IL, 1870. Per cent
Capital ISL ,435 900 ss3. 900 Dec, 0:
S.s dsaao;t .i Y Goo sasSS Dec
Loans. 279, 397, 900 a;6,4lsooo Inc, IOt
While the aggregate capital of the com
mercial banks Of New York city has decreased
$500, 600, the aggregate capital of national
banks alone in the New England States has
increased $11, 600, 900, in the Southern States
it has increased SIG. 600, 900, and in the West.
ern and Pacific States nearly $39, 900 600.
While the deposits in the New York city
banks have increased S25. 900, 900 or about II
per cent, they have increased S31 900, 600 OF
q per cent ia the New England States, $32,-
O0O, 900 or per cent in the Middle States,
and $50, OO0, 600 or SO per cent in the Western
and Pacific States. But even the increase of
$25, 100000 in the deposits in the New York
city banks is to great extent only the reflex
of the increase of deposits in the Western
banks who have sent their money off to New
York in the dull season of summer, in order
to get the per cent interest on deposits
which the banks of that city pay for the use
OF the money in stock speculations.
Another point in addition to those given by
Bulletin is that while the aggregate banking
capital Of the city of New York has decreased
$2,5OO,OOO, the aggregate national banking
capital alone of the State of Illinois (saying
nothing about the State bank capital) has in
creased from SIS, 600, 900 in 1870 to Sl9 OOO,-
600 in 1875, an increase of AZ per cent These
facts are very significant OF the steady transfer
OF the financial supremacy to the West, and
even with the increase of employment for
capital here are sufficient reason for perma-
nence in the decline in the rates Of interest
which has been experienced here in the last
two years Chicago Inter- Ocean.
Losses Of the London Banks.
The foilowinsrfacts give an idea of the
losses of =tde London banks by the recent
f.ilursSfn England: The London and West
minister Bank has appropriated. for the pur-
pose of covering bad debts, e500, 600; the
London Joint Stock Bank ESQ, 600, and the
Union Bank of London e1OOOOO, making q
total for the three banks OF 3,40O,0 900. Large
as these amounts may appear, they are but
trif1ing compared with the enormous sums at
risk Of those institutions The banks make
provision for these contingencies by yearly
contribution to q reserved fund, intended for
the double purpose of securing fixed rate
Of dividend on the paid-up capital and to
meet unusual losses.
The aggregate Of the reserve funds of the
three banks here mentioned was, on the LIST
Of July, 93. 100000, which, after providing
for these extraordinary losses, will be reduced
to gl. All ZOO. Ths Union Bank and the
Joint Stock Bank have made their usual
dividend at the rate Of fifteen per cent per
annum, but had to forego the luxury Of
bonus, and are likely to have to do so for
some future half years until these Withdrawals
from the reserve fund are recouped. The
Westminster, however, has made dividend
at the rate of only ten per cent per annum,
Withholding portion of the dividend to COM
pensate for the depletion of the reserve.
Tie Denomina ion of Our b lis.
It may interest our readers to know the
proportion of bills of different denominations
which compose our circulating medium. From
the report Of the Comptroller of the Currency,
we learn that on the LIST of November, 1874,
the circulation outstanding was as follows:
Tn0a1 National