The Montgomery advertiser., 1905-10-04
BIG INCREASE SHOWN
BALANCES OF NEW YORK CLEAR
 ING HOUSES.
Large Amount of Surplus Reserve HelA by One Bank and Charges Made That Weekly statts-
 ties Are Farcical.

New York, Oct. 3.--Balances of the clearing house banks today were great iy in excess of all previous records, amounting to $42,331,709 as against ess.ss5.7s3 on Saturday last, which was the previous high record.
 The debit balance of the National Bank of Commerce, today amounted to ss7.ss1.Ooo. which is a new high record for any individual institution either on these debt or credit sides. The Nation al City Bank reported a credit of $10,- 545,000 which about represents the amount deposited there by the city yes- terday in tax payments.
 The large figures of the last few days are further reflection of recent financial operations. These include heavy Octo- Der disbursements for interest and div idends; payments for Pennsylvania and Atchison syndicate undertakings and other operations not yet disclosed.
 The bank community Is still at a loss to account for ;ast weeks illogical bank statement. A careful analysis of the statement made today showed that a large amount of the entire surplus re- serve was held by one hank.
 Charges that the statement of the condition of the New York banks as issued weekly has become a farce and that the action of the trust companies in extending large credits without maintaining adequate cash reserves constitutes a great danger were made before the Clearing House Association today by the President of the Corn Ex- change Bank, W. A. Nash. The Corn Exchange Bank Is one of the most sound financial institutions of the city. having average deposits of about $4O,- 900, ,000.
 Mir. Nash denounced the existing state of affairs by which trust companies. op- erating outside of the clearing house and not subject to it's rules are not obliged to maintain the cash reserve of one-fourth of the sum of the depos- its which reserve Is required of nation al banks by the rules of that institu' tion. MT. Nash urged that measures be taken to bring the trust companies under regulations of the clearing house.
 After much discussion a resolution was unanimously adopted directing the clearing house committee to take the matter under consideration with view to eft scting the results advocated by Mir Nash. The committee consists of w. H. Porter, President of tho Cher1i- cal National Bank. Chairman; H. r. Synder, President of the National Bank of Comerce; James Stillman. President of the National City Bank; J. Edward simmons of the Fourth National Bank and Richard Delaheld, President of the Park National Bank.
 Criticism of the bank statement 1s- sued at the close of every business week which had been in progress foi some time became general in the finan- cial district last Saturday when the market was caught entirely of its guard by the figures contained in tho statement issued that day. All of Fri days compilations for the bank move | ments of the week agreed that at leas' | $7, 7,000, ,000 had gone out of the cash re- serves and traders had carried on theil | operations on the basis of a bank state ment showing this condition. Wher | the report was issued, however, instead of a decrease of more than seven mil lions 1t reportedfan increase of s1,S52, | 600.
 | The statement also reported a reduc l tion of $S10.000 in loans while unof | ficial compilations had shown the loar | account to have been increased during the week. The methods employed il reaching the totals given in the state
 ment have not been explained, but 1 has been suggested that gold engaged | in London and also that in transi from Europe to America may have beel
 credited to the banks by which 1t hal
 been engaged. The reduction of loans | 1t was suggested had been brough
 about by transferring large borrowing from clearing house banks to the trus companies,