The Montgomery advertiser., 1903-05-24
The Financier's Statement.

NEW YORK, May 23-The Financier savs; Ihe official statement of the New York As sociated Banks last week showed a net de- crease of S ,326, 900 in cash instead of an increase of SI.7o2, 200 which was estimated on the basis of the traceable movements of money during the week. The discrepancy was doubtless largely due to the average system of the clearing house which brought into last week more than s 900 900 of the loss of cash resulting from the withdrawal of May I5 of Si ,250. 900 of gold for export to South America and probably some portion of the S2 - ooO 900 which will be shipped to that desti- nation on Monday was withdrawn at the end of the bank week. The difference between the actual loss of cash as shown by tn" state ment and the estimated gain may possibly a so have been caused by the withdrawals by seced- ing trust companies well by those who will remain in the clearing house. which have not already made provisions for the required cash reserve against deposits The loans con traTy to general expectations were decreased instead of increased, the reduction being S5,- 476' 100 This was most likely the result of the extensive liquidation in the stock market during tha the U week The deposits were reduced amount called for by the decrease in loans and the net loss of cash: therefore the statement did not harmonize The required reserve was lessened by Sl.556, 100 and deducting from this sum the net loss of cash leaves S23o. | % increase in surplus reserve to So. 222, 725
 hose off of pabe Gf nds tse 9s plus is sis,535. o75. Circulation was de creased. though, by only the small amount of for the week was S23I ooo. coo. against S2 i3.- 900, 900 in the previous week. probably re- fecting the business incident to the gamble in cotton the cearings Saturday were S247, | 3.S45 or SI 6. GOO 900 greater than the daily average. Comparisons of loans show that five banks reduced this item by the net amount of S2, 500, 900 and the only important increase was S3.4oo. 900 by one of these ln- stitutlons. Three banks show net loss of S 600 900 in cash. The secession of the nine trust companies which have thus far an- nounced their intention of withdrawing from the clearing house have already withdrawn therefrom leaves seven trust companies in this city and ten in Brooklyn which may remain in the enjoyment of the privileges of the organization, though compliance with the re- quirement that they shall maintain a minimum cash reserve of per cent. against deposits
 The seventeen trust companies which will continue to clear through the banks had as appears by the statement to the banking de- partment on Dec. 3I general deposits amount ing to SI46 565, eioo and, upon this basis the cash reserve which will be required to be held by them will be S7.329, 295. Therefore Instead of about s 1000 GOO cash reserve (Which would have been needed had all the trust companies complied with the rule. the secession of the nine companies reduces the amount by little more than half. 1nas- much as the companies which may remain fin the clearing house have less of cash reserve on hand the sum which will be with drawn by them from the banks during the cur
 rent week will doubtless be compar atively small and possibly even this amount may have already withdrawn otherwise obtained.