St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1901-02-27
New York Bank Deposits.

lNOW va IN ONPNSASO'
The fact that tor the first time on Sat
urdav, Feb 16, he caring house banks
of New York reported aggregate de-
posts in excess OF ST. 900 900 900. indi-
Gates, in a measure, the great prosperity
which the country has been ENJOYING. 1t
is true that when business throughout
the country is qulescent, the deposits oil
interior banks tend to gravltate to that
city. hut The present increase in deposits
is due to vsriety of causes, only one OF
VIII ch is that the business OF the country
is ust now between seasons OF activity.
Oily the clearing house banks are in
cluded in this report. 1t the deposits OF
non member banks, trust companies and
savings banks be taken into account,
doubtless the total OF such deposits
would approximate So 600 900 900.
No other city in the U. s approaches
New York IN the vastness of its bankir G
resources 1t is doubtful it the banks IN
Ill the clearing house citi,s Of the coun
try put together could equal the deposits
OF the local banks.
Until four years ago the average de-
posts Of the clearing hou>e institutions
amounted to only about half their pres
INT sum- In 1897, when deposits were
$500 900 900, an improvement began
hich has continued with slight reactions
until the pre- sent time. On December 81,
1898, the highest figure up to that time
IN &c ri was reached. with 1923 037,
700 On March 4 1899. the record was
broken with 1914 $40 800. In 1900
this record was not reached, but on an.
nary 10 last it was exceeded with 1921,
| 1877 200. and has been increasing every
week since.
1t is necessary to go to London to find
any analogy to the great banks Of this
country. No one American bank APP
proaches the total OF deposits OF the
Bank Of England The latest deposits
epnrted last season by that great gov
INN NJ al institutions were. on October
8, Sc 3l2 900 publ c and e+3, 575, 900
other funds Two hundred aud fifty
million dollars in American money would
he a large estimate, therefore, for its
! present deposits.
Several causes contribute to the enor-
nous hulir g OF the city banks. The
money supply o. the country resulting
| from the new currency law is now la g
err than ever before. The business of the
county is temporarily less active than
1t was up to the holidays, and will be
during the sping season. Cons quently
interior institutions have been forward
ing the money to that city, where 1T will
draw interest. In sending cash htther
hey have preferred to remit treasury
NOES, greenbacks and silver certificates,
keeping their own bank no. s in clrcua-
ion in their own neighbo1hood as much
as possible.
Interior merchants have also been re.
hitting to wholesale me chants and
manufacturers in that city, who have
not yet begun to pay out money for ext
seasons goods. Therefore their deposits
remain in banks.
The trust companies and savings
banks are not tempted by the present low
interest rates to invest their money tn
any considerable extent, and while
waiting advantageous forms of invest
ment they also permit it to lie unused IN
The banks.
The loans have been increased enor.
mously by the operations of the grta
financial syndicates which are consolidat
ing raiIroa propertlts and steel and
iron mills and these are also deposittd
IN the banks for a time pending the com
petion of the various tr tnsacipns.
The tact that there is still a surpIu:
cash reserve Of more than $12 800 900
IN addition to the % per cent required By
he federal laws and the rues of tht
CLEARING house, shows that the expan
SION OF ere hts has be, II kept within con
servative limits