The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-03-29
The BANK STATEMENT.

New York. March 2S.-The statement Of
averages Of the clearing house BANKS OF
this city for the week shows:
Loans. S904.599, 200; decrease, ss,9is.2oo
Deposits. 1854. $50 900: decrease. S0.-s1.-fH.
Circulation, Si2900 500; increase, S3i5l0
Legal tenders $50 49,. 400: increase, 81 .6-5,-
800. Specie Sl53, 45l 500; decrease, Sl3l,Uo
Reserve, $229 $3.50; increase. l,4H,OO0
100000. Surplus S52S00.9o0; increase
s., lo0,500. TX. u. s. deposits. Sl6,5a 100; IN
crease. S3.Og0 800.
The Financier Says: The official state
ment OF the New York associated BANKS
continues 10 show a notable gain In sur
hibit, however, resulted chiefly from the
reduction in reserve requirements against
deposits, caused by a further CONF. aeuon
IN loans though cash Unexpectedly m
creased by moderate amount. lhere
was reduction last week of S6.s62 200 IN
loans, making M5.6)9.50O since Feb. II,
when, as previously noted, this item was
AT the maximum record. The specie de-
creased $l3l00o but the legal tenders
were increased 81 62o,300, making the net
gain i'm cash Sli94900, instead of loss of
81. $3.50 600, as estimated from tho traceaDle
movements of money during the week.
Deposits were decreased S6,fZ2, 400 max
ing reduction since Feb. u OF 36oe55.ah.
The reserve requirements caused by the
decreased deposits last week lessened by
81. 605GO0 which sum added TO the net
gain In cash as above, made am increase
I'm the surplus reserve OF &5,l0JoD. rms
item, computed on the basis Of all de
posits is S6.2s0sO9; calculated on the basis
OF deposits less S4019O.0O0 of public funds,
the surplus is Sl6.32S. 900.
The statement appeared 10 have been
made on rising averages Tor cash, anu
therefore the banks we've probably ln a
better condition as regards reserve Lhah
was shown by he return. This week the
100000 appropriation by congress lot
the relief of the Philippines VIII be placed
to the credit of the Philippine govern
and this will help TO Increase the cash
reserves In the banks In which the money
viii be deposited.
One notable feature of the statement 10
which We have previously called alIen l.-
tiOu, is that the banks as whole snow
an excess this week of $lO.55s,200 loans
over deposits, against SlJ, e5o,OJO In the
week ending March 81. The detailed
statement shows that eight of the banks
having the largest capital and surplus
have a totaI of about Si0oO0,OO0 of loans
in excess of deposits. while five banks
equally as strong as regards capital ana
surplus, have about 8zo,vJtUuu IN uepostls
in excess. Of loans. II Is. OF course, dlIil-
cult TO say whether the above noted
banks showing an excess Of loans over
deposits are leaning out or their clrculd-
ton which amounts 10 SZ0.6JOVU; their
capital of &3OJ),O0O, or their surplus OF
tiA.BNOrlNU as Wen as out OF LlAcil Ut i'.i74t9f
all OF which items are embraced m the
general term OF loanable funds. III the
banks do so loan out OF these designated
items and thereby have an excess OF
loans over deposits, there is no reason
why the disclosure Of this fact should
cause any unfayOrable comment That
these banks doFloan out OF one or all
these items appears to be evident All
Of these Institutions usually maintain the
proportion of cash they receive 10 de-
posts required Dy the national banklng
law and III they shall occasionally fan be-
low this percentage, the fact may be re-
garded as not of the least Importance; in
deed, during periods such as the present,
and at other times when reserves are
necessarily low AZ is likely that slisht
deficiency vii hbt cali fer admOniuOn by
the banking deHfftmCIA- So Tar as cleaF-
ing house requirements are. concerned,
there is no rule of that body demanding
that 25 per cent of reserve shall be- MAIN
tanned by au banks bought by the un-
written law of the clearing house such
proportion Of reserve is regarded as de-
sirable.