The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-13
A YEAR AGO-AND NOW.
Ante-EIectiOn Promises That Have
Been Fulfilled.
New York Financier.


The pessimists who profess to believe
that the victory achieved last fall has not
yielded the results promised will do well
to recall the events which were agitating
the financial world just one year ago this
month During the week preceding July
u, 1896, the continued exports of gold had
diminished the treasury reserve until 1t
had fallen below the customary limit. Mr..
Bryan had been nominated on a free-silver
platform, and the business world was ex-
hibiting every sign of a panic similar to
that which had paralyzed business in 1893.
At this juncture the associated banks of
New York, together with the foreign bank
ers, entered into an agreement to furnish
the treasury with specie to make up the
deficiency and also to prevent in as far as
was possible the shipping of gold abroad.
Within one week from the time this agree
ment was made, fifty New York banks had
ury, taking legal tenders therefor, and
banks of other cities had pledged addi-
tional amounts from their reserves Dur
ing the next week the contributions We're
materially enlarged, and the treasury was
placed beyond the danger Of raids.
To follows the course of the banks until
the reflex tide set in, and imports relieved
them of the really embarrassing position
they occupied, owing to the withdrawal
the changed conditions which prevail to-
day: on Sept. or only little less
$S,22S,550. Between July 3 and Sept. 26.
loans had fallen nearly S26, OOO, OO0 or to
45Q, al 100; deposits had dropped over SOL
100000, or to $448, 1868, 700. On Aug ! the
banks held only $46 700 specie. This
amount increased subsequently, as the gold
imports began to swell the totals.
The bank statement of Nov. Z, although
issued after the national election, did not
reflect the condition of revived confidence
that prevailed. Loans were then SAP ZOO,
deposits were $43S 437, 500 and the banks held
1924 800 900 cash reserve. Call money pre-
Vious TO election jumped &c SO per cent. and
averaged % per cent. That was only eight
months ago. Contrast the situation with
the report issued by the New York banks
July last Loans were then $532, 107 500 or
an increase of 800 52S 900 since Nov. T. 1896;
deposits were $604 9S3 700, an expansion Of
$166 SAG, 100 and the cash reserve stood at
1872 500 000 as against 1924 100000 election
week The banks now hold $50 400, 500 specie
or nearly double the amount reported dur
ing the panic last fall, and they would
have no trouble in largely increasing their
on call loans at 112 and 2 per cent; COM
mercial paper is discounted at from 3l2 to
4 per cent. and the gold export problem
has not had the slightest effect in banking
circles The treasury reserve is $40 900, 900
above the 800 600 900 limit, and a factor
in financial affairs has been practically
eliminated for the present.
These changes relate only to the banking
world. The business of the country in other
lines shows a similar revival
All this has occurred within a period OF
less than three-quarters Of a calendar year.
Can 1t be said, in the face of such returns
that the effect of the election last fall was
overestimated?
1t pays sometimes to look backward as
we'll as forward.