New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-09-18
BANK RESERVES


TCuching the question of the surplus reserves
of the New.Yorll City banks, tint capitals Of
the banks in the Association amount to So, 7G2,-
GOO BY the weekly statement Of The Clearing
House Association Of September : the average
reserve held by all the banks, National and
State, was 2G.Gl per cent-l.0l per cent over
thu rule Of p per cent 10 deposits. II 50 happens
t.It the State banks representing capital OF
$lG.1G200J and net profits OF Sll ,4O2.OOoL
made up theit quarterly statement 10 the State
authorities Oh September l. by that statement
the State banks, with over 20 per cent oil Tie
total capitals in the Clearing House Association
held a total reserve averaging only 49, per cent
of their net deposits. We several times hhve
directed attention 10 this fact, when some
pessnistic writer has discovered that four or
five National banks held an amount Of surplus
nearly equal TO the whole amount held by the
Associated banks, including both National and
State banks. To the ordinary mind it will occur
that if capitals of SlG,0OO,0OO State banks in
thu Association held only Isl per cent reserve,
that an average oil 26.9l Per cent Tor inc whole
500. 900 600 leaves far margin oi average
above - per cent for the other Sl4, 00O,UG0
National capitals, even if four banks hold nearly
MI the surplus" We trust that this exposition
OF the poverty" Of the State banks Will not
cause Il run or some Of the Soundcst institutions
in the world. The next time that some one
wants TO create diStl1st in the monetary stua-
tion IL will be III order 10 designate the National
bar Ks which are under the - per cent reserve
and not print the misleading statement that
four of the banks hold nearly all the surplus
reserve Of the Association.
Touching the railway situation at the West
il is probable chat the real disturbance there
since January !. 1889, has been less than at
any time in thc last ten years. There always
have been lOca! irregularities WhiGH heretofore
have attracted little attention. But this year
the existence of the Interstate Railway ASsOcia-
ron now gives 10 every little rregularity a public
nctiication and permits OF an unima gnabl;
amount of eNaggeration. That these eXagetra-
lions have been pushed 70 the fullest possible
extent for speculative purposes IS beyond qucs-
Ma ft,lf No lf,
Rock Island Company, who is in town, Is credited
with thr following utteranccS:
"'lAlk Of rate cutting rs much as You please,
The fact remains thPt the earnings OF all the roads
in the Northwest are simply monumental, and the
year will prove that the companies doing better,
infinitely, than i even estimated. As parent
should control an unruly child, will the
O. PEOPLE be called on, | think, to take charge
of the c., b d y. This viii be the logical and
natural sequence of present complications. All the
Western roads have heavy business on hand, and
are making enormous earnings. which the cut
ting on few local commodities cannot seriously
interfere with
President Iinghett, Of The Chicago, and North
western. and President Miller Of the Chicago.
and st. Paul railroads, expressed them
selves in about the same strain. he reference 10
the responsibility Of the Chicago, Burlington and
Quincy for the acts Of the Chicago, Burlington and
No.thern Is nothing new 10 the readers OF The
Tribune. But the proper place for the presidents
named 10 give their views or that subject IS al the
meetings of the association, when the president OF
the Burlington and Quincy would be called upon
10 reply or sit convicted of using his Office for
stoclIObbng fluctuations
WHAT WAS DONE IN STOCKS.
The stock market was lower in the first deal
ingS in direct consequence Of the published report
that the Chicago. Burlington and Northern had
induced certain Eastern lines 10 Join ~ III reduced
rates from Ncw.Yorl 10 ST. Paul. The declines
were not in proportion 10 the importance OF the
announcement. presumably because tie Chicago
SPECTATORS who knew its lalsity were also kceniy
alive 10 the necessity Of protecting their short
contracts on every concession. They were free
buyers, but rs prices rallied easily they were able
10 secure probably only small part of the stocks
fcr which they must settle ~ some time.
Fresh rcpeitiOns of Old rumOrs and
enormous eXaggeratons OF all uniayor-
able conditions viii still be- i'm order
until the Chicago short interest has been driven 10
cover In addition TO the buying for this account,
the steady rise in Northern Pacific preferred, after
he first decline helped 10 turn the course OF the
market The result Of the days trading was Il
substantial recovery OF yesterdays losses although
the final prices were a considerable fraction below
the highest points. The volume Of business WAS
even less and At time was the trading active. !
THE DAY IN THE BOND MARKET
The Treasury bought $4,000 OF l-2s M |
o. 81 and $50 900 OF per cents at ~. At |