The St. Louis Republic., 1905-10-08

portions Of controversy. Las, weeks bank
statement furnished the tex. for much
ot the cECussion. owing 10 II. inCong-uity
% II. showing With the known facts Of
the situation
~ f-I":'I:s an increase in cash on hard
and r reduction In he loan account, witt.
! Resulting benefit TO tl... Ela:y... OF ;hA
surplus. ses.;Ee. the banks were at tlir-c;
variance Win the known movements OF
money :or the week and viii? the heavy
loan Operations known to have been con-
Guct"d The crSic.sm Of the bank state
're!t cu'nl,Eate3 in ,he annual meeting
ot the clearing house on Wednesday. VIII,
the president u a leading bank G.i.ounc, !
The bank statement as a farce IN pUryort
ing =, o:fc' anv reliable. index q. th.. act
"a! financial Situation
III The sa:ne connection was sounded a
note or warning ~ the yne-acc o! dams: T
.f ne 'se-'fy'n OF Ia. trust companies
rom a!y caSi; :csa-vc :..utrern.r,f in
contraction With the heavy loan operation. !.
BY tfss.. institutions. tn. pro:es. az the
banks has rs motive ~ seIs-intercs;.
which IS easily sxpli.=.b!~.
az rtr cent ali, I.'i hy hanks CT trust
'ptI?; any deposits gives tie banks :,. Use
o: ih"sr funds only whllc interest rates
ii.S. a. al Present. tn. trust compa. .i.-
Ira" an th" ls'nks 50 plaC. lri;:S ~. ~. ;r
account Z" practically the full amoUn. ~
their resources.
II is the general surpcsitior tina. TIE
t'tSy lean contraction b. III. hanks dur
inS IN: last few weeks has been taken
over almost entirely by frus: companies
Certainly ih.:. has been r.o eviG-r.c.. OF
Yea! liquidation IN the securities markets
1h. cons'IC.nrs wouid b. that no real re-
dGcti"p "f d.posi; liabilities has occurred
10 keep Da".. with IL. drain on bank -
serves during that period.
All hu' a sna. p.!ce:.ta2s Of 'rus: COM
Iany cash Is nn aspos!i Gi:h the clearing
house bank. ard figures in their r..-rL-
which therefor. constitute. almo., ,i.
o1I" r.sery" against hct;, b.rk ard .rr:S:
c"tnriry deposits. The Ncw Eo-k S-a;.
~" SUu.r:n'"rd"nt II FaGkIuz on S.p-
t"mb.r deposits sui t"r. ro withdrawal! on
demand -: ss,..s-;.!3 che item q: loans ~.
cnl!s'era! al iha; DAT. standing d: $..s.Ssg-
TT" cash IN their vaults Was then r.
ported at lsss than So sStss which WIS
i.Ss than ;: r-r cent Of depos:; liabilities
will! banks other cash resource, az s!5.-
5ia.s.S. which. of course. .!ii .:n.hl. .!-i-y
As reserve: The large Aoans placed in the
Companies would modify materially tho
loan item IN This st.t.'n.Ht. rcmra-.sug
with N" items n. this weeks bark state
men, mem MI rey-al now large a Par, OF a..
r.Ir' scented Lv -h's" figure.
Last year mos; OF the trust co,npari.s
Withdrew from Clearinghouse. privileges
rather tsan submit 10 requirement. ~
maintain IL I.r cont a. "a .il..,!-,l.:r.. #
cash reserve against deposits. 20 =. In
crease: 10 il i"T cent at The discretion II
=
":Nt great loan sNn.Isiun has grown ~,
on 3c"rrr: or III. existing .Nrsli.rr STATE,
OF credit. and the quick CoEvc-tIhiI!..- a..
IN" largo Portion Of /; pace! Ia call lna.s
leaves she leaders UTIis;urb.I IN ~. =
sense Of ..curi;y
Hut abGr!,rt exr.-.s-Cc prove. that
siis security Goes not .NgsI. 10 borrowers
".o employ FUNDS ~ hold securities p-
i;..rstn- The iI-T"s- avrw.i by IN.
president "t :hg Imperial Bank ~ G,.-
many "a .,cvsn-:E-. 'hN discount rate TO
ICs q s.:sh. 0H speculation OF! ~. Beers.
w@s rot w..tou; eT.-C, OF sentiment l.,
New YORK.. The r-r=-cs= Of -hs l"cis..-
tive Investigation. - ,if.-;rSu.arc. meth
DDS IS oS some s-'l'. n. ntai in.,u.nC. j.!
the stock rrar.". l'.s -lO=i:.rs Of .ha ar
r"Sat.cr -: discretion - iec.i. questions
~ proTr'eIv ana OF compliance with tho
letter Of III" law ~ tn. part or men
powerful! and influential IN ..e financial
world had i.s part In ne sk,.rs!c.sni felt
'cHiT! last w"eNs tank statement
Tho :o.i..;Ia-C- o. the money situation
has kept stocf-marxnr operations al:
rIcvsrl.rts within ? narrow .anes az.
has kept other considerations Il. :;ir bacS-
ground, Fcr's H'-e we'll sus'a:rc! on a
small js,ns-:
I. = :"w ~ declined =. the - coupon
-. the s. r.c!s;---. a. and sh- oI! -
coupon pe: c-,t OF c.,.l or iii. week