The herald., 1893-11-27
THE RESUMPTION OF LoANING.

The amount of money in the banks of
New York in excess of the legal reserve
is becoming something unprecedented.
By the last report telegraphed at the
close OF business Saturday there was
nearly $71, 900, 900 surplus on hand,
which the banks were free to loan or to
use at their pleasure. This is very
different state OF things from that pre-
sented at the height Of the late panic,
whom these same banks were compelled
to issue $4,000, 900 in clearing house
certificates to prevent their weaker MEM
bers going by the board, and the inaug-
uration of an era of disaster only wit
messed three times in the history of the
United States. The accumulation OF
such an enormous sum above the re-
auirements of sound banking in the city
of New York, and of equivalent sums in
the vaults of the banks of Boston and
Chicago, clearly shows money
plethora which is fatal to any
chance of earning money by the
locking up process. All the indications,
therefore, point to the lending of east
ern money just now on liberal terms.
There is an absolute congestion of cash
in the east, and this fact will undoubt-
edly result in the placing of large
amounts of loanable funds in the west.
There has been paralysis of industries
east of the Rocky Mountains during She
past six months that has not been ex-
ceeded either in 1887, 1857 or 1873. 1t
has been actually phenomenal. The
people of the Pacific coast, however, are
not 80 much interested in the status of
the industries of the east as they are in
the condition OF the money market
there. There are many enterprises in
the country whose water is shed into
the Pacific that will be syitalized by
judiciously applied capital.
The first requisite for the renewal of
prosperity in California is an easy money
market. The signs are multiplying that
we shall ehortly have this. A much i'm
proved feeling exists just now in tinan-
cial circles of San Francisco. and the in
dications are that the savings banks of
that city will shortly resume their
loans.
Sundays Chronicle, in a careful re-
view of the financial situation at the
Golden Gate, in an article headed, "Will
Resume Loaning." says:
From present indications, aided in
some instances by direct statements
from the parties in interest, it will be
but a short time before the savings
banks OF this city will resume making
loans on approved security, as hereto
fore, and will put into circulation
thereby a great deal of money which
they have been keeping locked up in
their vaults. 1t is claimed that their
annual statement, which will be due on
January 1st, will show them to have
nearly or quite twice as much money on
hand as they had on the Let of last
January, and the natural sequence will
be to let it 20.
That an exceedingly cheerful feeling
prevails in San Francisco is further
shown by the following, which we take
from the same article:
The opinion has been expressed re-
Gently by some who have studied the
financial situation in this city that the
1st of January, that is after the savings
banks have made public their state
ments, money will be easier than it has
been here for number of years. Some
optimistic fnancie.s 60 30 far as to say
that the banks will then be looking for
borrowers, instead of borrowers looking
for accommodating banks. This may be
putting the case extremely, but what
with the Influx of new money which the
minW;nter fair visitors will bring ue
aud the desire Of the banks to make up
Tor the loss of earnings which the pres