The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-03-06
FUNDS FLOWING AWAY
NEW YORK LOSES HEAVILY IN
CASH TO THE INTERIOR


Weeks Clearly Reflected in the
Bank statment for the Current
Seven Days-LOans of the New
York Institutions Cut Down.
NEW YORK, March 5.-The Com
mercial Advertiser today says: The
weekly statement of the associated
banks issued today is regarded as one
of the most remarkable in recent years
There was a decrease Of S23, 1913, 800 in
the net deposits, and more than $13,-
500, 900 decrease in loans. The decrease
in deposits is the largest on record.
In March, 1881, it was $22000,O00.
All kinds of reports were circulated
regarding the statement. But as to the
decrease in loans, 1T may be stated that
the City bank, the Chase and other
large banks refused during the week
to mark down their rate of interest,
and many of the loans were conse-
uuently paid off These banks will,
therefore. show a reduction in the
amount of loans and discounts and an
increase of cash in hand. large
amount of money was sent to the
country during the week, which ac-
counts for a considerable decline in
deposits.
NEW YORK, March 5-The Finan-
ciated banks of New York reflects In
full the disturbing causes which have
been making for nearly three weeks
past The heavy decreases, however,
cover a period longer than the seven
days which the totals are supposed to
represent. AS was outlined last week,
the averages did not include the losses
which the banks were then sustain
ing through shipments to the interior.
The latest statement reveals very clear
Nv the extent of this drain. The de-
crease of $23, $4,000 in deposits can be
traced through a list of twelve of the
larger banks, ranging from one to four
million dollars in each instance.
The only inference is that this money
has gone to interior institutions, and
this is further borne out in the fact
that New York exchange at all impor-
tant centers has advanced from
heavy discount to par, and in some
cases to a substantial premium. The
amount shipped has been more than
sufficient to meet legitimate trade de-
mands.
At the present time the movements
seem to have ceased. Future develop
ments of a political character must de-
eide whether it is to be resumed or
whether the tide will turn and the
money again flow to New York.
In view of the revelations made pub
lie in the current SldlelheHl, liC hcoNy
gold imports do not appear at all
strange In fact, the wonder is that
the engagements were not larger.
AS might have been expected, there
has been a corresponding reduction in
loans and a decrease of $13. 622, 900 is ac-
counted for by the liquidation in spec
ulative circles and the calls made in
order to strengthen reserves. The heavy
sales of accumulated sterling exchange
at this center are also to be consid-
cred in this connection. But for all
that the banks lost last week, nearly
SIS. OOO. 900 cash, the reserve reduction is
only S2135,S2 and the excess is still
over $40, 600, 600. The gold coming from
Europe will more than make up the
loss in reserves for two weeks
The treasury did not call the usual
Union Pacific transfers from depository
banks last week, and, while Kansas
Pacific payments will require within
the next thirty or forty days nearly
sc, 100000 now in banks, it cannot be
said that the outlook favors anything
more than moderate f1rmness in rat as.
The exchange situation is so sensitive
that sudden advances are bound to
bring additional imports. and thus re-
store the equilibrium. If the develop
ments of the next ten days are such
that peaceable conclusion of our for
eign complications is assured the
money market will probably weaken.
AS it is, rates have gradually declined
from the high point reached early last
week