The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1880-11-20


The summary of returns Of the condition o
inIi taa na'Innal hank NJ N" United S,o;rs o
/ the 49, OF OctnJri, 1889, icii.~,>, says tnc BIS
: ton idrfrt,s"r ~ q emT~hAh' 'nln"Cr IN,
change that has come over the business world
during the past year. The aggregate of re
sources, the liabilities being OF course the
same, Is mucn thu highest ever reported, be
ing more than $2,l05, 100000. In regard t.
the leading items on both sides of the balance
sheet the same remark is true. The lndivd
ual deposits reach the enormous sum of 1919,
j31 631. "5e highest amount reported before
the panic of 1873, ~ncn the amount of bank.
Ing Capilal Was h. ger inan II is now, was
1856, 1852, Only year ago the deposits
were reported at $7l9,73T $50, which was at
that time the largest aggregate ever reported.
In the item of loans and discounts the total Is
81 037 0G444l, a large increase upon the
amount IN sny former statement. Another
remarkable feature Is the specie item. The
banks hold $l09,000000 in gold, silver and
certificates an increase Of no less than $G7,.
0O0, 600 IN one year.
LOOKING Mt the absolute rather than nj the
IcOiap diauve oiluAi.Ou OF tnc banks, We md
that on the LIST ult the lawful money reserve
required amounted to 5000, 075, 1872, while that
which they held was $322, 9j7 1856 In other
words, while taking all the banks OF the coun.
try, the reserve required was only 20l% per
CGut. Of the ucpo-.r, they actually h.a Il le.
STRIVE OF 33i5 per cent This surplus was due
to the large reserve of banks outside of New
York city. The forty.seven banks in New
York were required 70 hold $G7 ,02l ,S47 as re.
serve, and ,ney had S7O,67O2l5, of which
nearly $50 600, 600 .vas in spec;, Tll!s cx
cess was but S3,UjO000. The other reserve
cities were much stronger. Their deposits
we're $2S042t lS9, on which they IRE to keep a.
reserve Of % per cent, or S72,355 ,047. They
had reserve funds amounting to Sl05 1872 81
an excess OF S5G,UvJ,001; ana the percentageI
OF reserve to deposits was 3ji5. The country
banks are required to keep only 10 per cent
reserve, Dill. tnty really mad l,arly J6 peri
cent, or more than twice rs much As was
seeiod, TLesc isc;s prove the great siren s,n !
of the banks.
II may he interesting to notice how near the
backs GAIA TO hv.dias enough specie IA thar
own vaults to meet the reserve requirements
without taking legal tenders into accOurl at
all. New York lacked but 50 1928 ,532, the
other reserve cities, which like the country
BANKS arn rri-'l"cpd 70 koep onehalf .hci. 20
serve with reserve agents, lacked 1885, 1888
and The country banks lackeo $9,6o3,4ll.
Taken altogether .tcy were dciC eGL only
$2j, Sl1,l 1871 Before another year has passed
this amount will he made up, and IN 1881
rHch hAph MAJ, i II viii, have that p ir' of is
.u!t LEGAL rcserye ahiGn mus be huid Ia It's
own vault in United states com Some of
the reserve cities are in that position already.
Washington, Chicago and san
had eACl more thaI halt the re-
serve required-th is, more than all that is
to be kept At home-in their own
vaults 1t Is interesting to notice that silver
inds no favor at any of the banks Ont of
100, 100000 of specie items only 6,5OO,OO0I
consist Of silver CON certificates That is
more, however, than the banks do we'll to
hold, NJ they will sooner or later discover