The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-11-12

The banks now hold s., 7SS, $50 less than the
legal requirements.
The Financier says: 1.-THE associated
banks OF New York city are now $2.7SS.9JO
below the required % per cent. reserve. The
weeks operations, as disclosed by the state
ment of Nov. IL, show that the decrease of
cash was $5,217 400. OF this amount, 49,
$500 were in the form of specie and ST.,
sSe.500 in legal tenders. Deposit contraction
lowered reserve requirements only about
two and three-quarters millions. 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
treasury, We're debtors to amount APPROX
tmating S3,Oo00o0, and the interior took near
ly or quite two millions additional In the
face OF a temporary squirt in the stock
market transactions, the decrease of ST.
151 900 In loans is interesting. The loan item
has shrunk since the opening OF July about
$l06.00O,O0o. and now stands at or about the
point reached at this time last year. In
other words the banks have lost in loans
all they had previously gained as the re-
suit of twelve months business. They are,
on the other hand. getting a higher rate
on their present commitments. 1t is diff
cult to forecast future operations, but the
very lack of money in New York must
bring relief from some source soon.
NO AID FROM THE INTERIOR.
THE interior has been looked to TO sup
ply the usual fall replenishment. but as yet
there are no signs Of aid in this quarter.
Specie imports are not improbable. with
exchange falling. The third alternative is
assistance from the treasury. which has
been absorbing heavily from the banks, all
summer. Washington officials say they have
at present TO intention TO furnish funds
10 banks through public bond purchases and
the only remaining form of relief, If in
deed relief be needed Is to allow internal
revenue funds to remain on deposit with
bank repositories. The situation, however,
is not TO be regarded as critical, for the
simple reason that present conditions are
due 10 an excess Of prosperity, more than
anything else. The demands of business in
all quarters. have brought TO bear on New
York a pressure for money that is UMPIRE
cedented- This money, aside from what the
II IS In active use somewhere, and in
course OF time will return TO its logical cen.
ter. Just now It's absence Is severely felt.
Were II not for excess treasury payments
at New York IL is not probable there
would be much Of a stringency at any
Saturdays bank statement proved rather
worse than the extreme estimate had fore
told. The loss In the cash reserves ran up
10 VII. 100 whereas the extreme estimate
had been for only si.5ooO00. Some sanguine
person had hoped that the cash losses would
be offset by loan contraction as high as
sl2.0oo.ooo. Instead OF that the decrease
in loans reached only s7.I51.0lO As
this only reduced the reserve re-
quirements TO the extent OF 81 49, ia the
cash losses have resulted i'm Increasing the
deficit below the legal requirements TO
s.. 7ss. 95e. IL was not TO be expected that so
formidable an ncroachment on the already
depicted reserves OF the banks should be
without effect. and prices gave way all
around. The losses In the railroad list are
st-tdngly small. In spite OF a large volume
Of dealings This department offered a stub
born resistance 10 the pressure. and there
were evidently heavy buying orders 10 be
executed. N the specialties especially those
recently active In speculation, the losses
were more severe. In Sugar. the coalers.
the local traction stocks especially Man
haitian, Tobacco and Tennessee Coal
there were wide breaches I'm prices
Even In these the bears were
eager 10 cover at the decline. and
some sharp rallies were achieved As loans
made on Friday on the Stock Exchange