New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-12-05

Some attention paid in the report to ars m te
whole country 3O3s with total capital OF
S2lI .s45554 in deposits, aud holding as security
TIE loans of the banks October ] were ere
the corresponding date IN last year me oai M
dIvdna and bank deposits, not dedd ing inc amount t
from banks and the Clearing House eXchanges, ndon
creased S225 72j 1886 amounting Othe unprecedented
Of 1851, The rte Of the i9tal o'nr 20
capital surplus aud net deposits was men oo'9 per
in 1850 G73 per cent, In 1873 I13 per cent lne
proportion Of cash to net deposits was DO per ce S
October 1881 and FOR me corresponding da'eS III i0''
and 1879 u was l7.9 ana $50. -
October of the present year the aggregate reserve
held by the N.wYor City banks wa 233 per Gclt on!
falling below the amount required by law, ana t,H ,
deficiencies shown by previous statements OF ~"
Clearing House for the weeks ending October y ara ~
following show contraction " loans ana u Dt
liabilities aud slight excess OF r. serye over ine al
required by law. The reserves ia me 0ther r'SSIn0
ciues, which include the amount held ny AGENTS u diD,,
YORK were considerably Icss tHaI ~ VnS 30 nnf re-
date last year, although -t IN excess Oh the H.
fe toa reserves of the banks in other localities were as
usual, very strong amounting 10 olz per oen' VI ' NV
deposits.
BANKS RAPIDLY EXPANDING.
The loans and deposits for each year since resumption
day. January l. 1879 have increased largely ID each
group banks while the cash reserves in each are being
gradually reduced. II is evident that these depOSls
consist to a much greater extent than usual OF the
avas OF loans placed the credit OF dealers ms eN
h1bit shows that the banks rapidly expanding and
there are many indications that this rapid increase Is
the result of legitimate business but OF NegtuIesoe
speculation, largely consequent upon !Ie @ IanI
notes. The increase IN the amount OF United STATES
bonds held by the banks has been IL millions curing
the last year. but it is Is millions less than at CORES
pOudng date il 1879. This i somewhat surprising
Wien IL ia red that 3lo per cent bonds be pur
chased about par and that the rate o. Interest pa Oh
deposits in New-York City is from TO per cent only.
Tue attention Of Congress has previously been called
to section 5000 OF he revised statutes, which places re
stTctiOns upon loans, and TO the dhcnty O enforcing
its provisions In cities where large amounts Oh PR
received and stored II Is Represented thit
impossible for the banks TO transact TINS CLASS OF pu
ness II restricted 10 loans Tor an AMOUR h9V ~ LIE
in instance One-tcnth OF Jhclr captdL ~ @
that the limitation does not apply TO loans upon pro
duce in transit where the drd Is are drawn Oh SNsms
values; but if produce is stored instead OF beihS
shipped large loans cannot be made except In violation
of law, III which case me Conlroner nus no no itre
enforcing law eXcep by bringing snt Tor forfeiture
cuarer and this course inislt result Ia eiedi tl
barrassnent to business. well loss to many limo
cent stockholders OF the banks.
Is evident that the sw should De so anehueu IN 20
exclude from prUvi legitimate loans upon pro
duce OF warehouse rcceiptsas well az loans upon Uhed
tnualy being made upon other stocks ana oohuS hnU
these loans largely made 10 stockhroEers the result
beng TO assist and promote speculative operations upon
tue STOCK board. the provision Of law mentioned Is val
uaDo, 10 affects DanAs outsd 81 the alSe com
mercial centres, provides for JusI ustrbHll"h Oh
loans, II Is recommended that TIE hlhlt Ice cIcstr
10 10 per uluu the combined capltal ana surplus
ana thai loans upon United states bonds be Included Ia
II Is also recommended the limit for loans upon
stocks aud bonds increased from ten TO Hilccn per
cent upon capital ANA surplus, ana lhai some sdt! nc
tnen imposed the pr vision, when would
make such loans Improbable II the penalty should De
collected Ii Is lupOG ant thaj some Amendment 90 'ha
klnd should be enacted tndt moaHs be provided Tor
enforcing provisions OF Tine section a. II now SduuH
The extraordinary operations oi lne er.ryteTy 81 G
continuing the ana u per cent Dohr "'H
maJurrd during tue year 1881 give thcih heI' ian-
interest. March l. 1851, cr cehi bonus Amounting
44OJ3-O,O1O were nu,stdhuas, I'to1'iiao.' ~ 49,
irtuu o. Government dItrr May !, ISL. ana per
cent bonds Amounting to q2JZZbn,'JO were lhri "ul
similarly rpuccuIdbio alter jury ], l0ol VII
AuriI II, whole amuunt ui u per cent '"Ho WIZ
ciuod for payment ON july l. ISL, DHt To s sns
Aoiuers oil all tie per cent loals except INC
OREGON war debt, amounting to @OSS,-uO' ItiiLl'.
sion was given have their bonds cohllhurd ~ iht
pleasure the Government WIN interest a. ~ pei
bonds sAouid ne received by the treasury Tor tHat
purpose before May IL, ISL, wAich 'me was "a
IcrWaru extended 10 May 20 ~ tae7c bDhi thct "ti
presented continuance the amount OF ~ Iso'' LOO
amounting 10 g2I2lll Ou, Ad7 bAtc
Adrcu l. 1851, either pad from tne surplus Icfch
ues or has ceased bear interest.
On May II IKE privilege was gwen 10 lhe holueIr
of the per bonds continuance at 3i2 per Gem
before Juy l. 1851, anu on the dlltI
date nouce gwen FOR the pawn nj OF the tc-sJcItI
uves nos tlui.cd on October 1, ISL
der tGis arrangement 94Ol ,5O49OO, ana OF per
SlTS,UJJ lJJ ana thc IeiualdcI Amounting
L. ST. O27 100, OF and per cent bonds 0dt5dhahT
March 1, 1881, paid upon presentation or no" re-
main JandInE without Interest,
has also been pad during the year cudlhE 40
yeluber l. 81 3g6J,GjO OF r-tDearlug bonds,
MAKING saving interest Of SG,JJ-,-lO Inc tolai oI
saving of Interest Dy continuance ana pay mont uuiIHh
tue year @IG,SZO,lS@
The amount Of United States bonds held by the
National OCTOBER 1, 1881, Wac Si-bl-O'Joo,
and lie average amount ned the otncr Danh~ aud
bankers cOIHiry during Inc SIX months enuuf
nv All lue psuks ana during the last u" yCtls
tius shown to considerably more thau one-tnlld ol
me whole interest bearing funded dcDt CI inc OhIcu
states, as follows;