The independent. [volume] (Lincoln, Neb.) 1902-1907, 1903-12-31

Editor Independent: The 36th abb
stract of the condition of. national
banks has been sent out by the
comptroller of the currency. 1t COW
ers the time from the 9th of Septem-
Der to the 18th of November, 1903.
1t shows that in SO days (inclnding
10 Sundays and SO business days.
there has been a decrease of loans and
discounts amounting to $56,36l ,090.7S.
OF this $49,125,186 was in the central
reserve banks (New York, Chicago
and st. Louis). Over $36,000,0O0 of
this decrease was in the New York
banks In the 287 banks in the "a re-
serve cities there was a small in
crease, of about 100000. For the
first time the Alto country banks are
shown to have decreased their loans
and discounts. This decrease, how
ever, is small. 1t is, in the aggregate,
only little over S8,OO0,O00. The ag-
gregate decrease for each business
0ay of the time covered by the ab-
stract is almost 81 ,000,00 This de-
crease is a madked contrast with one
year ago when the banks were in
creasing their credits almost that
amount each business day.
1t is also shown that there has been
an increase of little less than $1G,-
100000 of Individual deposits and al
most $13,000,000 of United States de-
posits The national banks have now
over S153 100000 of government money
besides a disbursing officers account
Of almost $10,000,000. This amounts
to an aggregate loan, by the treasury
department, to these banks, OF about
$163 100000 For this large amount of
public money, of which the banks
have the use, the government does not
receive one cent. This money loaned
to the banks without interest is a
part of their loan fund for which they
receive the rates of bank interest The
worst of it is that this enormous sum
must remain in the hands of the
banks. 1t cannot be taken from them,
nor any considerable per cent OF 1t,
without causing a financial panic that
would ruin thousands of business men
and very probably close up quite a
number of banks. 1t must remain
where it is as a support to the ma
tional bank combination and the peo-
pie must submit to taxation, not only
to pay current expenses and interest
on the public debt, but to furnish
more money to be loaned to these
banks from time to time. Was there
ever a more absurd, outrageous and
preposterous financial situation than
this?
Notwithstanding there has been an
increase, as reported, of almost $685.
900 900 of individual and United States
deposits, during the time covered by
this abstract, it yet appears that the
total deposits on which reserves are
counted have been decreased nearly
SlO5 100000. The whole of this de-
crease is accounted for by the de-
crease of the balance due other ma
tional banks, state banks and trust
companies. Almost the whole of this
decrease In general deposits was in
the central reserves banks and shows
very conclusively that banks and trust
companies have been taking out of
New York, Chicago and st. Louis
considerable per cent of what they
had on deposit on the 9th day of Sep
tember. All the changes shown have
taken place In the central reserve and
the reserve cities: the larger part be-
Ing In the central reserve banks.
There has been almost no change in
the business OF the country banks.
Meme except the rather small decrease
of loans and discounts. The conclu-
sion can hardly be avoided that there
is very intimate relation between
the depression In the stock markets
and the shrInkage In bank credits.
There can be little doubt that the
decrease In loans and discounts has
been almost wholly in speculative
cicdlts. The fact that almost the en-
tifc shrlnkago In bank credits occurred
in New York and that commercial
credits have not been much disturbed
certainly indicates this Tho only ef-
feet upon commercial credits has been
90 prevent any considerable Increase
during the last few months. The ln-
crease Of national bank credits has
been during the last three or four
years about 81 600 600 900 THIS
amounts 10 nm increase of aLout $500
900 per day for every business day