The independent., 1903-04-30

the loans anu ulSCOuuIS are TepOItcu
to have been decreased SIS ,S62. 500 and
the deposits $40, ,407, 700. The bankers
surplus was increased 1857 ,025, and
the United States deposits $350,S25.
Turing the week ending March 21,
it is reported that loans and discounts
were decreased $12,953,000 and the
deposits $15,479,600. The bankers
surplus was increased 81, 156, 400, and
; United States deposits $2,167 500.
During the week ending March Is,
the loans and discounts are reported
to have been decreased $6,948, 200 and
deposits $6,422,4 400. The bankers sur
plus was increased $3,100,500, and
United States deposits $3,090,900.
During the week ending April 4. it
is reported that the loans and dis
counts were decreased $614,30O and
the deposits S5,f47 100. The bankers
surplus was decreased $4,150,075, and
United States deposits $4,298, OPS.
slring the week ending April IL,
the loans and discounts were de-
creased $1,030,400 and the deposits
1891 500. The bankers surplus was
increased $1,610,4 ass, and United States
C6pOSlIS 9l,U0U,fUV.
These reports show an increase Of
leans and discounts, and of deposits.
during the first three weeks of Feb
ruary. During the last week of that
month, there was sharp and sud
den decrease of deposits and prac-
tically no increase of loans. During
the first week Of March, there was a
| marked decrease of both loans and
deposits, and there has been con-
! tiaued decrease ever since. The aggre-
gate result is. that between February
l and April II, the New York clearing
house banks decreased their credits
about $25,0O0,O00 and lost over $685.
100000 of their deposits.
On February l, these banks held a
bankers surplus Of about $40, ,000,0 900;
but, on April II, it was down to con-
| siderably less than $4,000,000, and
would have been less than $3,000,000
| if the government had not made an
increase of deposit loans to them DUR
| ing that week. 1t will be seen, from
| the above statements, taken from the
published reports, that the bankers
surplus would often have been COM
pletely wiped out, if the government
had not made deposits Of public funds.
1t appears that about February l
the national banks belonging to the
clearing house held about $4,000, ,Ovu
of government money. During the
time between this and the 18th of
April, the deposit loans to them by
the government were reduced to lit
tie over $13,000,000. Under this state
of facts the condition of the stock
markets is not difficult to understand.
The secretary of the treasury has
reached the limit of his ability to
give large assistance by deposit loans,
and has been compelled to draw out
about $25,000,G0O of the deposit loans
already made. This limit of ability
is also shown by reference to the
public debt statement for February.
Exclusive of the gold reserve and de-
posit loans made to national banks,
the statement shows about SIS 100000
| said by the statement to be available
Of this amount s21, 300, ,621.41 is sill
yer bullion that, of course, is not
available until coined, and reduces the
amount Of really available money 1t
AhaJ pC ooACiy otdICu LuetI LAC dMOuut
Of really available money held by
the secretary of the treasury does not
exceed s5OO00,0 900.
In the face of such facts, it is idle
for New York bankers, or any one
else, to make light of the situation.
Of course, the withdrawal of money
whether government or individual de-
posits, has compelled the banks to
decrease their loans and discounts
but this they were not able to do with
sufficient rapidity to save the bank
ers' surplus. They are now relying
upon a flow of money from the mid.
die west to replenish their reserves
and to give them a surplus.
1t does not require very profound
knowledge to understand that there is
danger in the present condition of the
eastern banks, that under the banking
law are the head of the nationa
banking system.
The banker who talks to a reporter
grandiloquently about this being the
greatest country on EARTH" and about
the tremendous prosperity" we are
enjoying, and tells us not to worry
; is an ignoramus, or worse.
FLAVTIJS + VAN VORHIS