Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-11-11
Their Condition a Criterion Of the
Country's Prosperity.
IMPORTANT FACTS IN STATEMENTS.
Gradual Increase Of Their Reserve
Since September.
WHAT THE FIGURES SHOW.

Special Dispatch to The Evening Star.
NEW YORK, Nov. 1.-THE weekly state
ments of the banks composing the New
York clearing house association have long
been the recognized criterion Of financial
and commercial prosperity. individuals
and corporations alike consult this author
ity before entering into any enterprise In
volvtng the risk or expenditure OF money
and are governed by existing conditions OF
finance and trade as represented by this
weekly array of figures. During the dark
est hours of the panic from which We have
just emerged it was these statements that
reflected in a great measure the extent
of the strain on the combined resources
of the country and led to the adoption OF
precautionary anu remedial measures. f'ow
that the recuperatWe era Is larry under
way II Is Interesting TO note the varying
fortunes or our nnanclal institutions
through the period OF their greatest dis
tress uown to the present time.
On the 9Th or july the surplus reserve
OF the combined banks fell nve million dol
lars below the legal reserve and the total
amount outstanding in loans was more
than twenty millions in excess OF the de-
posits.
Inc reserve continued to decrease until,
on the 18th of August, it was Slo,o45,315 be-
low legal requirements, and the loans ex-
cceded the deposits by more than 90 per cent
Of the total capitalizati ton of all the banks.
THAT udtc 10 september y d sltduy
improvement was recorded, and on the last
named date the reserve was once more on
the right side OF the account, and has con-
tinued to improve with each succeeding
week, so that today 1t has reached $685.
Us.
Notwithstanding the enormous surplus
row on hand, a glance at the loan account
shows that neither the banks nor individ-
uals have prohted materially by the I'm
provement, and proves the banks guilty of
the Identical fault so severely criticised In
individuals a few weeks ago, namely, hoard
ing their funds. At the present time, how
ever. the supply of money is far in excess
Of the demand, and miscellaneous collateral
is accepted as a pledge for time loans, at
rates ranging from to 6 per cent. Bank
officials proceeded with great caution in the
matter of discounts. and subjected the col
lateral to very close scrutiny, accepting
none but the gilt-edged variety, for which
there was always ready market on the
stock exchange.
AS the policy Of the banks slowly re-
Taxed in favor Of the borrowers, the demand
for assistance diminished, and borrowers
became the more cautious and refused to
extend their operations on borrowed cap
ital until conditions would give reasonable
assurance of the ability to pay on demand.
During the month of September the loan
account was almost at a standstill and II
was not until the middle of October that
an increase in this item was recorded, and
which has improved with each week since
that time.
The increase In deposits is found upon ex-
animation to be largest in the banks hold
ing purely local accounts and not in those
that are repositories for the funds Of out
of-town banks.
The uncertainty Of the character OF tariff
legislation may prevent temporarily the
employment of this available supply Of cur.
rency. but indications point to a practical
demonstration of its usefulness In specula
tive circles In the not far distant future
Below is appended the figures themselves
which sufficiently explain the revolution
prompted by returning confidence and the
belief In renewed business activity and pros.
perity.
Figures in reserve column marked represent q
deficit In that item below the IS per cent limit re-
Qured by law.