New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-26
MONEY AND BUSINESS.

The remarkable statement published by the
banks on Saturday, at time when the STOCK
market seemed 10 have commenced vigorous
recovery. caused uncertainty OF feeling ano IT.
regular trading for the rest of the day. 1t was
called "inexpicablen by msny, because the de-
crease in resources. sos, 49,. 800, did not COM
mare with the decrease in deposit liabilities,
G2O.G25. 400. But il is not difficult 10 perceive
that the issue of about $8,000,OOO lean certifi-
Gates. not included anywhere in the cash re-
ported and the deduction of a corresponding
amount of securities from tho loan averages Of
the individual banks. might account Tor the dis
crepancy. In itself, the large decrease in cash
held would not have caused much surprise 1t
hal been known for some time that large
amounts had been withdrawn from the banks,
both by other banks in the interior and by say
incs banks and individual dCp0siors, nor did
such demands necessarily imply distrust, at Il
time when many institutions throughout the
country were obliged 10 provide against
the sudden assaults Of unreaSoniDg panic.
The fact appears that, Notwithstanding
this natural drain and the great
sbIiukage in the credits of brokers and
operators, the decrease in amount Of deposits
had been less than one-tcnth since May ), after
allowance for the stOppage of the Marine Bank.
Rightly considered, this shows "a remarkable
confidence in the soundness Of the NcwIork
banks. Exclusive Of the Marine, the aggre
gates of that date and of last Saturday compare
thus:
Lean. 81 a A. &c ss .js1@: S
Ies5 rena.. ssy5S5 3 355o s!5ooSS
Reserve. 80. so9goo sG75s7-O si..27s2oo
Considering how serious has been thc disturb
ance through which the banks have now
passed, and how they are now united for
mutual defence, il is doubtful whether
il would not have been wiser to publish the
usual detailed statement on Saturday. With
holding information might easily cause more
apprehcnsion than full statement under such
circumstances. Ii appears that, Lot including
the loan certificates in any form, the relation of
reserve to liabilities is quito rs favorable US it
WAC in March of last year, and that the reserve
held is actually larger than at that time, or in
April. 1880. Nor does it appear that the banks
have caused trouble by undue contraction of
loans. Assuming that about IS, 600, 900 of col
laterals have been used for loan certificates,
the contraction of loans does not appear to have
been moro than five per cent in three weeks
a rate which hardly justihes current reports
that the banks have been forcing sales
of collaterals in vast amount. 1t would
be much more just criticism TO say that the
banks might have avOideda great part OF the
difficulty, had they refused last year Or last
winter to lend so largely as they did in support
of speculative operations. The closing of tho
West Side Bank Oh Saturday does not appear to
have had any other cause than tho misconduct
of tho runaway official, and there Is much rea-
son to suppose that tho associated banks were
stropeer at tho close of tho week than their
averages indicated.
It appears from Treasury statements that