The Birmingham age-herald., 1903-09-06
IMPORTANT LOSS
 IN NEEDED CASH  New York Bank Reserve Shows
 Decrease of Revenue BOSTON FIRM WAS HARD UP Reduction, However, Was Principally Due to Absorption of Money From
 the Banks In Consequence < of Fiscal Operations.
BOSTON FIRM WAS HARD UP

New York, September 1.-The Flnancier says The notable feature of the official statement of the New York Associated banks last week was the decrease in the surplus reserve, the result of an impor- tant loss in cash caused by large though exceptional movement to Boston for the needs of a local corporation and there were also comparative large shipments Of currency to the south influenced by some activity in the movement in cotton from the plantations. The reduction in cash was principally due, however. to absorp- tons of money from the banks by the b-treasury In consequence of fiscal op- erations, payments through the banks for custom and for transfers of internal rev. enue collections from western deposito- ries through their New York correspond ents being greatly in excess of current disbursements by the treasury The de- crease m specie was S2,261,9 300 and in legal tenders Sl,617,200 making the total loss of cash sS,Si9. 100, which amount it may be observed closely corresponds with the S3, 5S5, 200 loss to the banks as estimated upon the basis of traceable movements of
  reserve was reduced S49S, ,l50, through a decrease of S1, ,992 500 in deposits. Deduct ing this sum of S49S, ,150 from the total loss of cash leaves S3, 3S0,950 as the decrease in surplus reserve which Is now S1I,296,9lo Calculated upon the basis of deposits less those of $37, 234, 400 of public funds, the surplus is S26, ,605075.
 The statement failed to balance by $579, 200, this being the difference between i, f.f fha lArc s.f och lOcc iaoif crease of $1.304.30O in loans and the amount of the decrease in deposits. The above noted expansion in the loan item was most likely due more to the cX- tension of accommodation to mercantile borrowers than to the stock commission houses and therefore it was regarded as unimportant It may be noted that the loans are $6 2S4,500 in excess of the de- posits, against $2,9S7,600 in the previous week.
 Though business on the stock exchange was less in volume than in the week ending August 29, the average daily clear . <ifgs wsre $si;000000 greater, amounting to $162. 100000; the increase was probably largely due to the September settlements which were in progress during the week. Though the decrease in surplus reserve was important as above noted, there does not seem to be any indication that the movement of money for crop purpose s has begun to be large, this being con fined to shipments chiefly 10 the south of mot more than $S00000 so far as could be traced Moreover the fact that the treasury is absorbing considerable sums ought not to cause anxiety for should these absorptions continue to be large, the secretary probably will be induced to extend relief through an increase of de- | posits of public funds in the national | bank Repositories. Comparisons of | changes in loans show that three of the larger banks increased this item by $1,- ~. 900 net Five institutions lost $3, 1oO,- : 000Anet in cash.