The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-01


manifested on Saturday in the disclosures Of the
official statement OF the New York Associated
Banks because of the record-breaking with
drawals from those institutions Of money.
through subtreasury transfer and by direct
shipments to Chicago st. Louis and New Or
leans. these amounting, estimated from the
traceable movements during the week. to sl5.-
s63, Co., The statement showed. however,
decrease OF but $s.ee4. 500 cash. while the esti-
mates indicated net loss on all movements OF
s15.3loooo The discrepancy between the actual
loss. shown by the statement. and the esti-
mated loss may be explained by the operation
of the average system. The movement OF money
TO ST Louis and to Chicago almost wholly
confined to the early part OF the week. and the
average for the three days would call for but
one-half Of the $40: 100000 sent TO those two
cities. or IS. 10000 The movement to New Or
leans was also largest early in the week. and
the average would reduce the s3.150.000 for
these average outgoes for the week 5000. 900.
The average Of shipments TO other points would
corresponding with the loss as officially given
In the bank return. The loans were expended
looked for This gain in loans seems to show that
the banks remitting to the interior were not
their loans for the purpose OF meeting these ex-
traordinary requirements. Doubtless part OF the
expansion In this item reflected the replacement
OF foreign loans which had been paid on within
the past fortnisht and possibly o also some do
creased saosS 600. which amount is only sis7 800
below the sum OF the loss OF cash less the gain
I'm loans; therefore the statement shows a good
balance. The required reserve reduced
81. 024 500 through the decreased deposits and
Quoting this amount from the loss Of cash leaves
$3.50. 300 the decrease In surplus reserve 70
$40, 2741J0. Computed the basis OF deposits
less those of s37. 15s SEQ OF public funds the sur
plus Is $19 543 COO. IL is noteworthy that the
loans were In excess OF the deposits by se5.-
s91. 800. the highest recorded during the year;
this. however. simply shows that In meeting
the weeks extraordinary demands the banks
drew largely all their available resources.
which they are clearly permitted TO do.
Whenever. at this season. or In the spring,
exchange declines In response increased Of
ferings of commercial bills. close observers OF
the market led 10 look for early gold Inn
ports. Heretofore this year these expectations
have not been realized. because OF the presence
OF abnormal conditions Now however. there
seems 10 be a strong probability of such i'm
ports. provided there shall be important
check TO the export movement OF cotton and
breadstuffs. and provided, also. that monetary
conditions remain favorable That such condi-
tons will continue favorable for gold imports
seems probable. and though the Bank OF Eng
land may seek TO retain the movement Of gold
hther. IL appears likely that America shall
soon get OF the metal from France There
fore even II there shall be further reduction
OF bank reserves through demands for money
the situation; a fall In sight exchange OF about