New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-10-01
THE BlNKS.

THE BANKS
The bank statement Of Saturday was natu-
ally considered very encouraging. During The
week il had become known that S1,7O0.oe0 in
currency had been sent 10 the West by only
two banks, and nearly all to Milwaukee, and
it was inferred that The statement would show
dangerously large decline in the legal-tcnder
reserve. Il was also reported that as much as
$4,000. 600 had been drawn from the banks
for settlements with the Treasury. The state
mcnt shows decline Of only 80, G22 400 in
specie. though the amount held at the close OF
| the week may have been much smaller than
the average reported, hut the decline extends
10 four-ffths OF the banks in the list. As to
lie lepal-tender reserve. the apparent de-
crease is only $47S, Goa sum 50 much
smaller than the anticipated decline that
the announcement caused general surprise
and pleasure. But it would be unwise
to forget that the mode Of reporting
averages only is likely to mislead very greatly,
csDecially when the hanks are constantly scnd
ing out currency. Much more than %l,700,-
600 MIGHT have gone out during the latter
part 81 the week without causing a greater
decline than appears in the average. We DO
not Learn that return Of currency 20 this Guy
has become important, rs yet and II must be
presumed that the statement was based upon
declining averages and that the decline was
mainly during the latter part al tho week.
Even with this explanations however, the
statement shows that the less cannot have
been as large rs was generally expected. The
arpgrCnt excess Of reserves over the legal re-
qui9ement is reduced hy &LG13,075, and is
now only $8,A&5, 900, but this is enough TO
meet demands for some weeks longer if the
outflow should not he greater than it was last
week.
notwithstanding the general loss Of reserve,
an Improvement appears in the condition OF
nearly an the banks which have been weak IN
Chat respect OF twenty banks which held in
lecl-tcnlers under 90 per cent Of deposits,
Jess specie. according to the statement Of the
ODD the Merchants Bank now holds over -
per cent, and the Bank of the state of Now
YoIk. the American Exchange Bank, the First
and Third National Banks. the Hanover Bank,
the Ncw-Y0rk Bank, and the German Amcri-
can Bank now hold over 20 per cent, while
only three of the banks remaining in that
class have failed to improve their po-
si.ion. On the other hand, nearly
all the banks which formerly held
relatively large legal-tendcr reserves lave
declined in proportion Of such reserves TO de-
posts less specie, six of them falling be-
low 20 pcr cent, and only seventeen now re-
mort over % per cent. Bat this more equal
distribution of strength is az evidence Of i'm
proycmcnt, so far rs il indicates that increased
accommodations 10y the banks which are in a
safe position are compromising for the neceS-
sary inconvenience resulting from efforts OF
| the weaker banks TO strengthen thor re-
serves, The decline in deposits is 1892,
! 9OO, and in loans So 1885, 500, nearly all the
! specie withdrawn having doubtless, been held
on special deposit. Only nineteen OF the banks
! show any increase iii deposits, and with most
of these the increase is very small.
The Clearing House year ended on Saturday,
and the official report Of the years transac-
| tions will probably be made this week. The
| exchanges for the year ending September 30
viii be about $40, 500, 100000, an increase of
more than per cent over the transactions
! of lS75-76. notwithstanding decline IN the
! prices Of many important articles. Indeed, The
| exchanges Will slightly exceed those OF
| the year 1894, when the average o.
prices was fu''y 20 per cent higher than
| it is now This indicates a considerable IN
crease in the quantities Of products bought and
sold, and the reduction in prices though il
/ involves more narrow margins of profit ion
dealers. cOnfers Il corresponding benefit upon
consumers, and has enabled the country
materially to extend its foreign trade. Some
part OF the increase in exchanges is due tc
the fact that the number of shares Of stock
sold has been greater by about 5000, 900 than
il Was last year, but the sales have been some
what less than those of the year 1924, and
very much less than those of the year lo74-'75,
so that the increase in exchanges must Dc
attributed to an actual enlargement and I'M
provement of other than speculative business
The signs are ut present less unfavOmblt
than they have been for many weeks. Expe-
rienced and shrewd bankers are still guarding
themselves with care against possible severe
stIingency which the rapid decline Of reserves
foreshadows, and which any unexpected dis
turbance might precptate, but the demands
for currency from Chicago and st. Louis have
been much smaller than usual and the money