The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-02

The F1n2ncfer says: Unusual interest was
manifested on Saturday in the disclosures of the
official statement of the New York Associated
Banks because of the mountaineering with
drawals from those institutions of money,
through subtreasury transfer and by direct
shipments to Chicago. st. Louis and New Or
leans, these amounting. as estimated from the
traceable movements during the week, to $l5.-
663, 900. The statement showed, however, a
decrease Of but 1864. 800 cash, while the esti-
mates indicated a net loss on all movements OF
SIS, $40. 900. The discrepancy between the actual
loss. as 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 was 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. $780, 900 sent to those two
cities. or S.. 400. 000. The movement to New Or
the average would reduce the s.15o, 900 for
warded to that center to about 81, 500. 900. making
The averages aTetase of G SHIPMENTS ter to 'n Other week eein ss'o %o STS;
bring up the total to an amount very closely
S iD tss Ssnh re Misn the The loss soa as officially afnir c s given
by 81. 400, 500, whereas a decided contraction was
looked for. This gain in loans seems to show that
the banks RENTING to the interior were not
generally under the necessity Of contracting
their loans for the purpose of meeting these ex-
of foreign loans which had been paid off within
NESTLE rne PsSt ne sseshasHs, ana rh peSs DEPOSITS ais0 w seme de- de-
creased s4.0ss. 600. which amount is only s1s7, 800
below the sum of the loss of cash less the gain
in loans: therefore the statement shows a good
balance. The required reserve was reduced
81. 024. 500 through the decreased deposits. and de-
Quoting this amount from the loss of cash leaves
$3.50, 800 as the decrease in surplus reserve to
$40, ga. $50. Computed on the basis of deposits,
less those of s37, 156. 500 of public funds, the sur
plus is 49,, 543, 600. 1t is noteworthy that the
loans were in excess OF the deposits by $685.
SOL 900. the highest recorded during the year;
this, however. simply shows that In meeting
the weeks extraordinary demands the banks
drew largely on all their available resources.
which they are clearly permitted TO do.
Whenever, at this season. or In the spring,
exchange declines in response to increased of
ferings OF commercial bills, close observers of
the market are led to look for early gold i'm
ports. Heretofore this year these expectations
have not been realized. because Of the presence
of abnormal conditions. Now. however. there
seems to be a strong probability of such i'm
ports. provided there shall be no important
check to the export movement of cotton and
breadstuffs. and provided. also, that monetary
conditions remain favorable. That such condi-
tions will continue favorable for gold imports
seems probable, and though the Bank of Eng
land may seek to retain the movement of gold
hither. it appears likely that America shall
soon get some OF the metal from France. There
fore even If there shall be a further reduction
of bank reserves through demands for money
for the crops. gold imports will tend to relieve
the situation; a fall in sight exchange of about
q cent per pound sterling undoubtedly will
bring gold from Europe"