The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-09-07
The Bank Statement.

New York. Sept 6.-The statement
OF the associated banks for the week,
tive days. ending today, shows:
Loans, SSO6.374S6O; decrease. 1866. =
Deposits. ssas.ssS,2OO; decrease. sls.-
Circulation, sss.5s5oOO; increase, $685.
Legal tenders. $685., 500; decrease,
s., 962. 600.
Specie. slsl. $685. decrease. 5, sss,-
Reserve, 1924. s4s.sOO; decrease, $685.
Reserve required. $2s0.s4s.550; de-
crease. S5.645,725.
The Financier says: The noteWor-
thy feature of the official statement of
the New York associated banks this
week was the reduction of S5,645, 725
in the surplus reserve, carrying this
item to S4.097 .050, the lowest since
March 10. when the surplus was 49,
1880. The loans were decreased $3.-
665,200, making So, 773, 200 in three
weeks. The specie fell off s., S33, 200 and
the legal tenders $685., 500, a total re-
duction of IS. 795.S00 in cash. making
the loss in this item since Aug. 8, in
elusive. of 1929. 100. The statement of
Aug. so failed to reflect the loss OF
cash. as estimated from the traceable
movement of money. $2.ss9. 200. Last
weeks statement showed a greater de-
crease of cash by $1,017. POO than was
estimated on the basis of these move
ments. The average for the two
weeks, therefore. seems TO show that
the estimates were very nearly correct,
the official statement showing an
average loss of $685.. 100. while the es-
Inmates show an average loss of So
3lS, 100.
The deposits were reduced by $12-
6oO.3oo. which is only S1S9.300 greater
than the amount called for by the to-
tai decrease in loans and the loss in
cash: hence the statement is not far
from proving. The required reserve
was decreased $3.150.0T5. which sum,
deducted from the loss of cash, leaves
S4,0s1,050 as the surplus reserve. The
circulation was increased by S629, 800.
making a total gain since Aug. 16 Of
$l.O54, 800. which was distributed among
eight of the largest banks.
The bank clearings for the week
averaged $27s. 100000, or $50. 0O0, 900 more
than in the previous week -Four of
the Wall street institutions show a
decrease of s., goo, 0e0; the increases by
other large banks were only moderate.
There does not appear to have been
important contractions of loans by any
institution. The net loss in specie by
seven banks was s3500.000, and tive
Institutions show a decrease of 81, SOC, =
600. Though the statement appears
quite unfavorable. chiefly because OF
the important reduction In surplus re-
serve. the condition of the banks was
probably better as regards cash than
was indicated.
The contraction in loans which has
been in progress during the past three
weeks has probably reached the MAJ
mum, and there will most likely be
comparatively small changes in this
item in the near future. II the low
condition of the bank reserves shall
have the effect of restraining specula-
tfon II Will serve a good purpose.
Should money grow more active in the
current week as the result OF these
low reserves. exchange will most likely
decline, thus giving some assurance OF
imports OF gold from Europe, and the
higher rates for money will probably
induce the liberal negotiation of ster-
ling loans. Taking a conservative view
OF the situation, there seems to be
nothing in 1t which need give borrow
ers- having good security any concern.