The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-11-12
THE WEEKLY STATEMENT
DECREASE MUCH WORSE THAN
WAS EXPECTED.
The New York Institutions Are Now
Nearly 100000 Below the
Legal OBSERVATION-DISCLOSURES Gave
Way All Around On the Stock
Exchange-Money Market.

The loss in the cash reserves ran up TO
$5,217 400, whereas the EXTREMIST esti-
mate had been for only S4,50O,000. Some
sanguine persons had hoped the cash
losses would be Offset by a loan con-
traction as high as 81, 100000. Instead
of that the decrease in loans reached
only 81, 900. AS this only reduced
the reserve requirements to tine extent
of 81, 766, 800. the cash losses have re-
suited in increasing the deficit below
the legal requirements of 81, lsS,95O.
1t was not to be expected that so for
midable an encroachment on the al
ready depleted reserves of the banks
should be without effect and prices
gave way all around. The losses in the
railroad list are strikingly small in spite
of a large volume of dealings This
department offered a stubborn resist
ance TO the pressure and there We're
evidently heavy buying orders to be ex-
ecuted- In the specialties, especially
those recently active in speculation, the
losses were more severe In sugar the
coalers. the local traction stocks, es-
pecially Manhattan, Tobacco and Ten
nessee Coal there were wide breaches
in prices. Even in these the bears were
eager to cover at the decline and some
sharp rallies were achieved
AS loans made on Friday on the
stock exchange carry over until Mon
day, the days money market was NOM
inai. Liquidation was in anticipation
of Mondays money market and was not
forced by actual calling of loans. Yes
terday's large calling of loans is prob
ably not fully reflected in the statement
so that the actual condition of the
banks may be slightly better than indi-
Gated, but the course of the money
movement makes the necessity of fur
Their loan contraction a practical cer-
tainty. The foreign exchange market
like the money market is almost wholly
nominal on Saturday, but the nominal
rates for sterling were marked down
an additional half cent
Traders in stocks generally seek TO
anticipate a certain amount of outside
souying which comes into the market
after an election, owing TO the relief
from the unsettling influences on bust
ness OF a political campaign. There was
professional buying of stocks on Mon
day with this object and a resulting
advance in prices. There was also some
outside demand on Wednesday as was
expected. But il proved insufficient to
absorb the offerings. The large buy
ing by the bear element during the pre-
vious week had resulted in elimination
OF much of the short interest from the
market and its technical position was
thereby weakened. The course of events
in the money market demonstrated that
the hopes of a relaxation during--the
previous week had been Elusive. New
York exchange which had hardened at
various points and at Chicago had risen
to 10 cents premium per 1000, eased off
again in the latter instance to a dis
count.
The activity Of trade is making ex-
traordinary uses of money in all the
countries of Europe and in England
this need is aggravated by the war eX-
penditures and the cutting off of the
Transvaai gold supply, so that a with
dFawal of this country's credits would
have widely unsettling effect on for
eign financial markets with an effect on
our own market For this reason the
calling home of credits is considered
undesirable.
But il is the conviction that-fn the
event OF any actual distress for money
in the country the world would have
TO pay it's debt to US. The active and
profitable use of money in trade even
to the exclusion of speculation on
credit is not felt to constitute a threat
to real values. even of stocks and Sc
curities. but so long as expansion con-
tinues in the country'S use for money
and the sub-treasury continues to make
demands on the New York banks, il is
evident the banks must continue to call
loans to meet the encroac hments on
:inue near the border of the legal re-
quirements. Stocks held with borrowed
money are thus forced to sale and fall
into the hands of those who have
money in hand without the need to
borrow.
Bonds have moved slightly in SYM
pathy with stocks. but changes have
been narrower. United States old as
reg. advanced Il; United States coupon
new Is and 5s. Il and the IS, q in the
bid price The IS declined u.
New Y ork. Nov. 1.-THE weekly bank
statement shows the following changes:
Surplus reserve, decrease, s., 500;
loans. decrease. S7,151. 100; specie. de-
crease, Sc, $50. 500; legal tenders, de-
81. 607, 200: circulation. increase, 1854, 700.
The bank now hold s., 7SS,950 less than |
the legal requirements.
New York. Nov. 1.-THE associated |
banks of New York City are now 81 |
1SS. $50 below the required % per cent |
The weeks operations, as |
disclosed by the statement of Nov. II. /
show taht the decrease of cash Was |
s.. 217, 400. of which loss $3.50. 300 was in |
the form of specie and $3.50, 500 in le |
gal tenders. Deposit contraction low |
cred reserve requirements only about |
s., 40. 600, so that half the cash loss |
came out+of the reserve on hand.
The statement does not differ much |
from what had been expected. The |
banks in their weeks operations with /
he treasury, were debtors to an amount /
approximating IS. GOO coo. and the inter !
or took nearly. or quite. s., 600. 600 adj !
1itional. In the face of a temporary
squirt in the stock market transac- |
lions the decrease of ST. Isl 100 in loans /
Is interesting. The loan item has shrunk
since the opening of July about $685.
200. 900, and now stands at about the
same point reached at this time last
year.
in other words, the banks have lost
N loans all that they had previously
gained as the result of twelve months
active business. They are. on the other
hand. getting 4 higher rate on their
present commitments. 1t is difficult to
forecast future operations, but the very
ack of money in New York now must
bring relief from some source soon.
The interior has been looked to to
supply the usual fall replenishment. but
rs yet there are no signs of aid in this
quarter. Specie imports are not i'm
probable with exchange falling. The
bird alternative is assistance from the
reasury, which has been absorbing
from the banks all Summer,
Washington officials say that they have
1t present no intenetion to furnish 1
,unds to banks through public bond
purchases. and the only remaining form
# relief, il indeed relief be needed. is to
allow internal revenue funds to remain
IN deposit with the bank repositories.
The situation. however. is nto to be
as critical. for the simple rea-
ION that the present conditions are due
more TO condition of prosperity than 1
'nything else The demands OF bust