The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-21

NEW 1Ohh, Dec. D.-Ihe statement OF
averages of the clearing house banks for
the week shows the following changes:
Loans, decrease $3.50, 200
deposits, decrease .......-.........-.. s. SO, 200
Circlation, increase. 5000
Legal tenders, increase. 49,
specie, decrease. ..................... l. $50 200
Reserve, decrease. .................... 1,762 100
Reserve required, decrease. .......... l. f6s 500
surplus, decrease. ACKNOWLEDGEMENTS. 293 800
Tx. U. s. deposits. decrease. 2s4,975
The banks now hold S. 093, 500 in excess of
reserve requirements under the Is per cent.
rule; ex- u. s. deposits. sls.14s,loO
The Financier says: According To the
estimates of known money movements in
and out of New York last week the banks
gained over half a million In cash, but the
bank statement of Saturday. compiled on
averages. showed a loss In cash of 81, 762. 100.
This decrease, in so far as it affected sur
plus reserves, was Offset in large part by q
reduction of s5.S75.2oo In deposits. the ex-
cess reserve falling only 1928 800 to s. 90s 500,
which is 100000 above the total OF a year
ago. The decrease OF $3.50, 200 I'm loans il
a belated record of the previous weeks
occurred in the present market TO indicate
much OF change either way so far as
bank loans are concerned. The deposit
decrease comedies with the loss in money
and loan contraction and is thus accounted
for. The total of loans is still I'm excess
of deposits by eight million dollars, but
when 1t is recalled that the national banks
of New York alone have increased their
capital and surplus within the past year
by $l,O0.0O the slight excess OF loans
loses any Importance that otherwise might
attach TO 1t. Speaking in general the bank
position for this season is sound. The
early movement OF money from the inter-
Tor noted in the previous weeks statement
continues. the banks having gained from
this source alone within six days over
$2,W0,O00. There Is every indication that this
movement will be continuous, although the
activity of business at all centers and
the changing conditions in the position OF
country banks may interfere with IL to
some extent IL Is not to be overlooked
that loans of banks outside of reserve
cities have expanded in three years over
SzSo,oO0c0, which is a larger increase than
reported by the reserve centers themselves
and this foreshadows general demand for
funds in what may pc designated as coun-
try districts, and which may retard the
now OF money To this and other important
points. Still the metropolitan banks have
never failed TO gain heavily in cash with
the beginning OF each year, and the same
experience is TO be anticipated now. The
heavy dividend period now approaching
may result in some shifting and disturb
ances in the market for week or two
but these Will be only temporary The
formation OF the bankers pool, the fall in
exchange and the completed LIQUIDATION
In the stock market lead TO the logical con-
clusion that the money market, for few
weeks at least, Will cease to be the Gen.
ter OF absorbing interest in financial circles
With the gradual fall I'm interest rates.
however, the exchange situation possibly
will strengthen To the point where gold
tion Such exports are not regarded as linz
mediate factors I"