The independent. [volume] (Lincoln, Neb.) 1902-1907, 1903-08-06
The WALL STREET SLUMP
4 Clash Coming Between AaaufhseASoE0
and Basks-A New Scheme sf Robbery
Must be Devised

Must be Devised
Editor Independent: There ~
been so little change In the general
financial condition IN New York 1T
have given you q rest from my -.
ticles. There has been. Of course. =
continuation of the gradual tiehtGn-
ing that has been going ON for several
months, and the depression Of bu1l-
ness among the Wall street gambling
fraternity. by mistaken courtesy called
stock brokers, has reached crisis n
the collapse Of one of the promineGe
houses, and the Gripping Of Gambler
Keene.
One weeks reports may show an in
crease of deposits and loans and an
other decrease, but altogether there
has been, since the first week in
March, a marked decrease OF loans
and large loss of deposits. 1t Is not
worth while to burden you with fig
ures, shown by the last three or four
weeks, of the reports Of clearing house
banks.
The effort OF those interested to ex-
Ilain the situation in every possible
way except the right way would be
amusing, If 1t were not so serious and
SO full of danger to our business In
terests. Some days ago received No
"a of the comptrollers abstract Of the
condition of national banks that con-
tains some interesting facts when
they are considered In connection with
what is going on in New York. No.
33, covering the time between Feb.
and April 8, reported an increase Of
national bank loans and discounts at
Sj2, ,500,0 900. During the same time
there was a decrease of loans In the
New York national banks (part In
and part out of clearing house,. OF
about $2S,000,000. There must have
been, therefore, an increase Of about
$50, 100000 in the national banks out
side of New York city.
No. "a shows the aggregate increase
Of national bank loans to be only
about $11,S00,00O during the time be-
tween April 9 and June g. During
this time the loans were decreased in
the New York national banks SIC, ,70O,-
900. 1t appears, therefore, that in all
banks outside Of New York city there
must have been an increase Of loans
and discounts Of only about $22,5OO,-
GOO or little more than one-fourtn
the increase shown by the previous
abstract.
There was an increase in the New
England, the eastern, the southern
the western and the Pacific states,
while in the middle western states
there was a decrease of almost So
100000. Most Of this decrease was in
ST. Louis and Chicago. This shows
that outside Of the central reserve cit
ies-New York, st. Louis and Chicago
the whole increase of loans amount
ed to less than $32,0O0,000.
1t will be remembered that not
many months ago the abstract showed
a daily increase of loans of from $780,
900 to 81, 100000 Now it is less than
$194,O00 and appears likely to 60 low
er. Most of This increase is by the
country banks.
1t will be remembered also that
only few months ago the United
States deposits were being continual
ly increased, but this abstract shows
a decrease of United States depos Is
of about $1,000,000. This is not
large decrease, but it is enough to
show the situation. The fact that for
several months there has been no in
crease of government deposits in the
national banks is enough to show that
these banks cannot expect any fur
ther assistance from the government
by deposit loans. This is the real
secret of the collapse of the stock
market. To enable the government
to give this assistance one or both OF
two things must occur. There must
be an increase of revenues collected
or decrease of expenses so that
there will be an increase of surplus
that can be loaned to the banks by
making deposits.
The debt statement for May shows
that, exclusive of the money of the
government in the hands of national
banks, there is only about $4,000, 900
of so-called available cash. or this
amount almost $2,000,000 is silver bull
lion and about $15,000,000 gold bull
lion, neither of which is in any real
sense money, and this reduces the
available cash to about 100000.
It begins to look as if there might
be a conflict of some intensity between
the banking interests and the manu-