The independent., 1903-04-30
JUGGlED FIGURES
Now York Clearing House Report Fear
fully and Wonderfully Made to
Fool Country Bankers

effort of the eastern financial inter-
ests, by deception and pretense, to
inspire confidence, is manifest in the
report of the New York clearing house
for the week ending April 1S.
Loans and discounts are reported
to have been increased 50, ,427 500 and
deposits $2,459 400. The increase Of
deposits was Immediately Except
$31 5000 absorbed by the increase Of
loans.
The bankers surplus is reported at
$6,007, $50. This is an Increase over
last week of $2,666,350 The press re-
porters (no doubt taking the state
ment from "bull' stock gamblers)
call this a favorable report. Last
week the bankers surplus was re-
ported at $3,741, 800 of which $l,030,-
400 was government money deposited
during the week. This week there
was deposited with the national banks
belonging to the. clearing house 81
1904 while the increase Of surplus
is reported at $2,666,350 or only $685.
875 in excess Of the increase of
United States deposits. During the
two weeks, the government contri-
buted to the bankers surplus by de-
posit loans $3,290,775.
1t is not possible to have accurate
knowledge of just what Is going on
among these clearing house banks,
and between them and the United
States treasury department. 1t Is not
intended by them or the department
hot hn chny,1d EnnW Tf iC
not violent inference to suppose
that what is desired is, that not
enough of the real situation shall be
known to cause the country banks to
withhold from these New York banks
the deposit loans that the banks maxi
ing the deposits are unWisely per-
mitted to count as reserves Under
the order of Secretary Shaw, made
several months ago, the national
banks are relieved from the duty.
imposed upon them by law, to hold
reserve against the United States
deposit loans made by his department.
The report for the week ending
April 18 states that there was, DUR
ing the week as stated above, an in
crease of deposits of $2,459,400 and
that the United States deposits were
increased $2,260,475. The statement
of the report that the increase Of re-
serve required was 614,850-this be-
ing 25 per cent of the S2,459, ,400-the
government deposits were not includ-
ed in the calculation Of deposits by
which the required reserve Is aseer-
tanned.
The total United States deposits
held by these clearing house banks at
the end of the week is reported to
have been $15,321 $50. IL the deposits
had been included in the calculation
to determine the reserve required.
there would not have been dollar OF
surplus in the aggregate in the clear
ing house banks. In other words.
when the banks made the calculation
to determine the required reserve,
they exclude (by permission OF Sec
retary Shaw the government depos-
its; but when they make the caicuia-
tion to determine the bankers surplus
they include government deposits. Ii
the whole of the United States de-
posits held by the New York clearing
house banks on the 18th had been
withdrawn, under this method OF cal
culation, there would have been no
change in the reserve. required, but
the whole of the bankers surplus
would have disappeared, and these
banks in the aggregate would have
been shown to be short in their act
ual reserves held $9,313,700. There
can be no other reasonable conclusion
than that the order of Secretary Shaw
permitting the national banks to thus
violate the law, was intended to en-
able the New York banks to make
this deceptive and misleading showing,
and to make it possible for these
banks to loan what otherwise they
would be compelled to hold in cash as
reserve To call such condition
as this favorable is both ignorant
and wicked.
The whole device is in the aid OF
stock gamblers. If it should be that
any considerable part Of the $685.
207 800 of loans and discounts held by
these banks are secured by deposits
of stocks, it would explain the appar-