The St. Mary banner. (Franklin, Parish of St. Mary, La.) 1889-1931, 1891-03-28
How 1t Is Made I'd.
MANNER OF PREFARING TIE B.NK STAT

|
MANNER OF PREFARING TIE Il INK STATE
MENT.
! The weekly statement of the condition
Of the banks composing the New Yorl
Clearing House association IS justly re
| gsrded as one of the most important item
| Of financial news. in fact, it bears til,
same relstton to the American money mar
ket and if as Indicative of it's tendencie
and as nhuentialoin shaping those zen.
dences MS the weekly staten snt of til,
Bank OF England IS with respect to th,
s-t.ondon money market This Statement
and il particular the items which re pre-
sent the comparative condition Of the re-
serves held bv the great Gnancsl insntu-
tions of New York, as, one of the 1sctor.
| which potenty influence the course OF
speculation and govern the rates of in
| tefest in the money market. Its appear
aDce every week is awaited with. interest,
aot only in Wall street itself, but through
out the country at large In fact it is
sometimes asserted that the Importance at
tached to the bank statement is. in some
respects, exaggerated. 1t has often been
pointed out in these columns that as the
figures themselves are the averages for q
week of the items of loans, deposits,
specie, legal tenders and circulation, there
is constantly room for deviation from the
exact condition of the banks, and tnat the
trua statistical value of die exhibition is
to bs found in the general direction of the
items represented for series of weeks, or
A., -. y, f--..N ---N>- D-eo-> ~ &c
n 1thtrA II IN u. as fac
tor in the general financial and speculative
situation, is apt to forget some OF tie mos
;mnortant points in connection with IL
In the first place the bank statement, as
baa often been explained in the Columns
If Rrad street's, is purely voluntary ex
bh;tion presented by the banks, through
,ha clesriny house, for the information OF
.he. nublic There is no law, either
national or State, requiring its publication,
The natiansl banks, are of cour-e required
hv the laws of the United States to Inakt
renorts of their condition when calico
mon bv the colu ptroler Of the currency
| The State banks likewise furnished slmi :
lar exhibitions through the agency OF th'
| Snperiptendent Of banking OF the S1ase o.
| Naw York. The bank statement whlcl
annears every Saturday is provided 10
salslv by session 6 of the constitution o
the New York Clearing House association
This section reads: "Every bank, membe
If the Clearing House association, sinai
furnish a weekly statement of its conaitio
TO the manager for publication, SHOWN
fthe average amount of-hrst. loans au
d,scou ats: second, specie; third, legal tel
der notes; fourth, circ iiahon; n,to, ue
nosits.' This section was adopted IN I'll
rssr 1857. Immediately after the gre'
nanic of that year. and was the result
,he desire on the part of the banks 70 gi'
the public an assurance as to the cohdiu,
If the insti utions on whose soundness u
prosperity and safety OF the Duslne
world depended.
At the outset the statement mace !ts a
! pearancei the early par OF the week. La
on the time Of its appearnce was transie
red to Saturday, and the figures theinseiv
close With the transactions OF each frlos
1'he process of preparing the bank sta
ment is simple enaugb. Each OF the slS
odd .n.ks. member. of the clearing hou
nr.pare in readiness for Saturday morni
. statement of the average for SIX woik'
dsys ending with Friday night OF the l'e
standing on their books, as called tor
the clearing house association. foI
stance. the aggregate Of the items OF lo
At the close of basiDess tor each day
: r;np the week is divided bv the number
- workim DAYS, and the result, the aver
for the week, furnishes the tgul es Wh
an Saturday morning are forwarded 70
manager of the clearing house. II
figures from each hank usually reach
clearing house about, or soon after,
o'clock on Saturdas morning. They
Immediately entered, by the expert
coun,ants in the service Of the clea'
house. upon the sheets containing
hanks title, and long columns arc &C
ma mn for the aggregates. The calruia.io
which the most importance. is attache
ies naturally that referring to the relation
the average cash holdings to whae
termed the reserve requirements
obtained bv adding together the Item
"A. snecie and legal tenders. the average
holdings for the week. Under the nat
hankmp act the Sati onal banks, as Is
known. are I. qu:red to retain Gasp, tn
gold or legal tenders, to the amount &c
Der cant Of their aggregate deposits. !
iv.fve per cent, or one-fourth OF the
arspe deposits shown by the ssa'e'
,h.1ef IRE. constitute the reserve rec
wants and The exunt to which the
average holdings Of gold and legai 'e
r rico above or fall be- low tits require
serve constitutes the surplus or oshe
in re- -erve upon which Wall street oa
many Of its calculations; " Is
needless to reiterate what mas SO oile
"a fo,a been said that the surplus res
men. applies only - the nst'ona
y of and not 70 the ? !. A.I s1smeut | Il the cl
bs,nse. their reserve being within tn
etc. erstion cuaiei ed Of the stats banking depar
,west It is often tue cas- INA Ma a. : smouns !
: in excess of the legal reserve reauif'