The herald., 1897-12-24
Los Angeles. Dec


The progress thus shown in the short
space of two and half months is highly
satisfactory. There is an increase in
total resources of 1896, 30; also a gain
In loans and discounts of $36S, ,7S3. 80, and
In individual deposits of $685., 10S.71. The
surplus as to depositors has likewise
been increased to the extent of s26, 72G.Sl
y 4 4
Peculiar existing conditions in the
money market are illustrated by the
fact that Chicago banks with foreign
connections are loaning large sums of
money in Berlin. The business is being
done by cable, and the Berlin banks to
which the remttances are directed
~ per cent on credit funds, which they
forthwith proceed to loan out on their
own account to local customers. The
profits to the German banks in nloantng
out on local choice collateral the b6r-
rowed Chicago capital is said to be from
" to ~ per cent. In Chicago loans on
similar first-class collateral for short
time can in but few instances now be
placed at for more than or 31a per cent
land such rates here do not mean al
present that the large surplus of loar-
able funds here can all be loaned out at
them. There have been recent state
ments to the effect that Chicago has
loaned money in London. Investiga-
ho fba
truth of such reports. AS time rates in
London have about corresponded with
call rates here, such operations would
appear mprobable-though there has
been considerable hypothecation of bills
on London to hold them back from the
sterling market.
The National City Bank Of New York,
which in May last absorbed the Third
National bank, now has about $50, 900, 900
OF net deposits. On Monday November
~, the gross deposits of this bailsS
amounted to Sill 200, 900 in round NUM-
bers, and the banks credit balance at
New York clearing house was $S, 537, ,S1l.
These figures are surprisingly large even
for Wall street to contemplate. An aG-
gregation of net deposits amounting to
$S0,0000 900 in single bank Is extremely
uncommon. Such sum Of deposits ina
bank Of discount is unprecedented in this
country.
The Chase National Bank of Now
York has decided to increase it's capital
!. stock from 100000 to $1,OOO.OO0. The
step has been taken by the directors and
stockholders because the banks sur
plus is very large. The deposits Of the
bank amount to more than $40, ,000, 900.
= 4 \
"The shares of national banks In
Pittsburg have been for years a favorite
form of investment" says the Pittsburg
Banker. 1.-THE demand for this class of
security has been so large and the cont
petition SO active. that in a majority of
instances quotations compare favorably
with those Of high class mortgage bonds,
and in some instances the latter return
higher rate on the investment than the
former. At the present rate of earnings
the surplus and undivided profits of the
banks should equal their aggregate cap.
1tal by October, 1S9S Ono Of the banks
earned within a fraction Of $250,O00, and
flve Of them earned over 100000 each
during the past year. The aggregate
dividends paid approximate $1,000, 900. or
nearly per cent on the s12, 900 cap
ital. The conservative management Of
the business is seen in the fact that while
gross earnings on capital amounted to
12.14 per cent, only TIA per cent was dis.
bursed In dividends, leaving 4.40 per cent
to be carried to reserve or undivided
profits"
Two New Counterfeits.-The secret
service bureau announces the discovery
OF new counterfeit $40 silver certificate
and also a counterfeit national bank
note. The silver certificate is q photo
graphic production printed on two
oicccs Of paper pasted together. NoAt-