The Birmingham age-herald., 1905-12-10
BANK STATEMENT
 SHOWS DECREASE
THE DEFICIT FOR THE MONTH AMOUNTS TO $1,246, ,525-LoANS SHOULD HAVE BEEN MORE CON- REACTED.

New York, December 9.!The weekly bank statement of the clearing house banks for this week shows a deficit of S1. .246,525.
 The statement is as follows:
 Loans. s1,0i682O 800; decrease. s7,561,5O0.
 Deposits s992, ,2S5. TOO; decrease, s1493e.- 800.
 Circulation. s5S,2eS, TOO; decrease, s797SOo.
 Legal tenders, s73, ,2Se, 100; decrease, $1.- 229, GOO.
 Specie, s17s,52s.SoO; decrease, s6.S17,1OO.
 Reserves, s246,S12,4OO; decrease, 7.546.- 1 100.
 Reserve required. $24S SO5S. .s25; decrease, B. .794.2oo.
 The reserve is s1.246.52 less than the required 25 per cent of deposits Last week there was a surplus of s2,565'375, making a decrease for this week of $3,- S11,9O0.
 Exclusive United States deposits there is a surplus of $S95,550. a decrease of $S,- S12,075. as compared with last week.
 The Financier this week says:
 Last weeks official statement of the New York associated banks was again favorable, the institutions for the second time this year showing deficiency in reserve. Such deficit, however, was smaller by $1,7S2,375 than 1t was on No vember Il on which occasion it was S,- 42S 800 In the interval of four weeks the surplus recovered to $9157,100 November 9. but the reduction therein of nearly six and two-thirds millions in the week of December 2--largely because of an in crease in loans, and consequently in de- posits, which latterly affected reserve re- quirements-carried the surplus to so low a point as seeming to foreshadow the I f,, rrhi tc a It would seem that the unmistakable in- dications of deficiency last week that were disclosed by current direct move ment of money out of the banks, and through sub-treasury operations, should have resulted in a more extensive con traction in loans than were effected, thus reducing deposits, and preventing the eX- tinguishment of the surplus.
 There appears, however, to have been only the moderate loan contraction of S,- 561 ,5O0 last week, possibly due to excessive requirements for accommodation for stock speculation. The cash loss was S,546,lOO, which sum was much greater than the highest of the estimates that were based upon the traceable movements of money during the week The heavy loss seems to indicate that if money was attracted to this center from interior cities to the extent that was expected fo~ the purpose of taking advantage of the high rates l for loans at call, 1t arrived too late to De fully reflected In the statement. Deposits decreased $14936,8 800. which amount very nearly agrees with the sum of the reduc- tion in loans, plus the loss of cash; therefore, the bank return showed good balance The required reserve was re- duced through the decrease in deposits by l S3 734 200 which sum deducted from the loss of cash left s3,S11 300 as the reduction In reserve to S1 ,246,525 deficiency. Computed upon the basis of S56s,SO deposits of public funds, there is a sur 1 plus of $S95,555. It is noteworthy that cir culation was decreased by $797,70O making a reduction in this item of $1 .333,900 in the fortnight during which loans have been expanded by s4032.500 net. Moreover, the excess of loans over deposits last week amounted to the important sum of $24,- 1 OS5 100 following an excess of $l6,7O9,SoO in the previous week, indicating that the banks are employing largely their avail able resources.