Omaha daily bee., 1902-10-05

endanger the situation again and the policy
Of bankers and large financial powers has
been enough to discourage any renewal OF
speculative activity for the present.
The crop movement period brings a large
hand to hand in the payment Of wages and
for small lots Of farm products in cash.
The withdrawal Of cash on deposit with
the banks for these purposes necessitates
a contraction of loans in the proportion OF
s. for every 81 Withdrawn from bank sur
plus reserves. AS the credits Of the banks
available limits this drain upon reserves
left no alternative but the drastic loan
eGntraction which was threatening the sta
bllity of the financial fabric. AS a large
need for additional circulation still remains
to be met there is a disinclinatlon on the
part Of the bankers to put out loans against
the newly available cash. upon which fur
Their calls may yet be made. The easing OF
the local money market has also met with
a prompt response i'm the foreign exchange
market. showing the large extent of the
OU~,atdAdnls obhgaulOns to foreign lenders
and their disposition TO reduce them. Re-
ports from London, Paris and Berlin In
dictate that money lenders at those centers
are not disposed to extend their credits In
New York n further at present and some
dissatisfaction has been expressed with
American collateral for loans. The weekly
exhibits of the banks Of England, of France
that they have lost gold in large amount
and have been called upon for large
amounts of credits. The advance In the
Bank of England discount rate from 3 TO
4 per cent is the index of the Strengthened
condition Of the foreign money market and
the ,unwillingness to part with any Of their
cent installment on the British consol issue
calls for about SIS, 100000 In the Bondon
money market. The proposed Transvasl
pected to be for $3.50 10000. A Japanese
loan, a French loan, q Russian loan and
loans to various small European govern
ments are in the background to prompt to
the conservation OF resources in the Euro
pean centers. Our imports for. September
were OF record proportions, Cotton has
wheat, owing to the September speculation,
and the slow movement Of corn to market
has kept down the exports Of those staples
and the supply of exchange bills to meet
maturing obligations. The probability of
further imports OF gold beyond an expected
arrival of A,OeQ,000 at San Francisco next
week is not counted upon. The careful
outstanding bank resources is believed to
pc imperative to conserve the safety OF
the markets for the present: 1t is very
notable, however, that confidence In the
prosperity of general conditions Is unim-
paired. Stocks wereunot sold willingly, even
when money rates were highest, and only
the exigencies upon the banks themselves
suf1ced to satisfy liquidation. The deter
mlhaton Is sun trongly manifest to keep
all, the resources that can be secured in
holdings Of stocks.
Prices OF bonds were we'll sustained.
United States old Is, coupon. advanced u
per cent and the new as declined y per
cent as compared with last weeks closing
The New York Financier this week says
The New York banks statement of october
I was made according to the long estab-
ltshed rule, which includes United States
deposits as requiring a % per cent reserve.
This was In accordance with a decision
reached by the clearing house Friday. The
official statement Of the New York associ-
ated banks last week showed on the basis
OF circulation of net deposits heretofore
employed In making the analysis or includ-
Ing in such net deposits those of public
funds, a surplus reserve of 81, 1S9, 200. The
government deposits reported to the clear
ing house last week were $40, 1856, 300. De-
Quoting this amount from the net deposits
of $50, 1860 0O, in accordance with the ruling
made Tuesday last by Secretary Shaw
that reserve against such deposits wher
they were secured by pledge of government
bonds would not hereafter be required
tends through a reduction in the require.
ments to raise the surplus reserves of tht
banks to Sl2, Ill OILS. Applying the same
course in Analysing the bank statement OF
september 20 a surplus of SO, l02, 1926 would
be shown instead or a deficiency OF 81, 1872, 05t
and treating in a similar manner the state.
ment Of September % there, would be shown
a surplus of $l3, 42S, 125 instead OF 50 1876 25
The statement Of last week Indicated a de,
since the contraction in this item begar
August 16 in this period the total reduc
tion in loans has been s6,554.3OO. The cast
fell of 1850, 200. against an estimated de-
crease of 81. 975, 200; the loss last week make.
the total since August 16 $27, 1914, 800. The
the total reduction since August is $500
600. The reserve requirements, including
in the net deposits those of public funds
were H,0S5,75 less by reason OF the de
crease above noted on deposits. Deductinl
this item from the loss OF cash leaves
81, 467 las decrease in surplus reserve which
now stands at 1879, 200 against SIS, $50, 025 a
the corresponding date a year ago. Al
above noted. the computation based upor
the release of reserve against public de
posits would make the surplus last weel
81, 011, SIS. The circulation was increased
$3.50, 900. The daily average of bank clear
ings last week was $3.50. 100000, rejecting
October settlements. The most notabl,
changes in loans were shown In gains b.
three banks of 1905 900 and a loss of 1000,
600 by one Institution. Changes in specie
s snS"eI ga tTss of 20 soo 900 bv Da nne OF S0'oVV'VO
The following are the closing prices oil
the New York Stock exchange: