New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-10-09
TIL INK SETTLEMENT.

THE BdHH SETTLEMENT.
The Bank Statement Of Saturday would be
very encouraging if it were not nearly in
comprehensive. AS the public is forced to
suspect that there is something wrong with
railroads which refuse information as to their
doings and condition, so some tendency to dis
trust has been caused by the fact that nobody
can tell with certainty what the last bank
statement means. 1t shows, compared with
that of the preceding week, decrease OF
1896, 900 in loans, Sl0060 in specie, and
$573,5O in lcgal-tcnders; but against this
decrease of $4,0j1, 900 III resources, the re-
ported decrease in deposits is only S2,917,S 500,
and there is an increase of $26j,SOO IN clrcu-
latiOn. The very unreasonable surmlse that
the discrepancy is due to large receipts OF
bank notes, may be dismissed without notice.
No freak of the "averagen system of report
ing, bad as that is, can account for the state
ment. The notion that currency employed in
the movement of crops has begun to flow back
to this market, is disproyed by the course of
exchanges with interior cities, and moreover.
does not meet the difficulty. Nor is there
anything in the reported transactions of the
sub treasury to explain it. The banks may
have sold United States bonds, previously re-
ported as loans, and, in fact, sales of 100000
five-twenties and of large amounts of new
four per cents, are reported. But this would
only explain the Unexpectedly small decline i'll
specie or legal offenders; the discrepancy be-
tween loss of resources and decline of liabii-
tiles remains TO puzzle observers.
is it not time for the banks to consider
the need of some reforms in their state
ments7 The amount of National bank notes
on hand ought to be reported as regularly as
any other item, and it would materially help
the banks in any time of anticipated strin-
gency to have that part of their resources
known Again, it is stated that some of the
banks do not include at all among their liablli-
ties the sums due TO other banks. If this is
so, il is exceedingly desirable that the Clear
ing House Committee should make an earnest
effort to correct 1t. Finally, the report of aver
ages takes more time and trouble, and is in
cOmparably less useful TO the banks or to the
public than a statement OF the actual cOndi-
ton of the banks on a certain day Of the
week. The evils of the average system
have been often pointed ont, and it is not the
least of them that it gives rise to great dis
trust whenever the statement does not happen
to meet current expectations. 1t is said that
the banks contemplate a change in the mode
of reporting. and they can materially strengthen
their hold upon public confidence, especially in
any time of trouble, by the reforms here men
toned.
The decline in specie and legal-tenders is 80
small. in view of known facts. az to cause
some suspicion. But the high rate of interest
may have drawn to this city considerable sums
from other Eastern banks. The detailed re-
port seems to favor tlis explanation. The
Bank of Commerce, after paying ont 100000
in specie, still has an increase of $4,000 IN
deposits and $505, 900 in lega-tenders, the
increase of loans having been only $270,O0O
The Manhattan Bank with an increase OF
S2S7,O00 in deposits, and 100000 in legal
tenders, reports no considerable change in
loans or specie. The Market Bank has an in
crease of $4,000 in egal-tenders, and
100000 in deposits, without other material
changes. The Tenth National Bank has an
increase of $244,O0O in deposits. and $685.
900 in lcgal-tenders, without other material
changes. The Corn Exchange Bank has an
increase of $4,000 in deposits, aud $685.
600 in legal-tenders without other material
changes. These five banks report an increase
of 81 1853, 900 in legal-tenders which is APP
parently due to an increase of deposits not,
as yet accompanied 10y any increase of loans
The Park Bank also increases its legal tender
average by 100000, but its loans decline
S439, 900; the Chemical Bank increases in
legal-tenders by 100000, without other APP
parent change. except n withdrawal of specie
on deposit: the First National increases in
legal tenders $258,000, in part in tho same
manner, and i'll part by contraction of $l42,-
600 in loans and the Third National increases
in legal-tenders Sl21, 900, with a withdrawal
of $500, 900 in specie and a loss of only Sl23,-
900 in deposits. The other banks increasing
over 100000 each in legal-tenders are the
Chatham, $1O2. 900, aud the Merchants Ex-
change, 100000. As these changes show
that deposits here exceeding 81, 2OO,0 may
well have been made 10y banks or investors
outside the city. in excess of loans yet made,
it appears reasonable to infer that reinforce
ment of about that amount has come TO the
banks within the last week. In fact, we learn
that two banks, not of The largest, received
over 100000 each during the week, from
Baltimore.
Movement of money bither for purchases
of stocks now held in the street, would have
tendency to give relief. 1t is insisted by one
patty in speculation that such movement has
begun, and, on the other hand it is declared
that sales of stock to the street 10y investors
still largely exceed the purchases for invest
mont. Of course. no conclusive information