The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1906-12-09
STATE MENT SHOWS.
CASH SHORTAGE
Largest Deficit for Week
III the New York Reserve
Since Summer of 1898
FAITH IN T.

MEN YORK, Dec. S.--The heaviest
dehcit below legal requirements In the
segai reserve of the Associated Banks
OF this city in thirteen years was dis
closed by today's bank statement The
deficit amounts to s6.702,175,, as against
q surplus of s1,449.300 one week ago
While 1t is not unusual for the bank
statement to show that the banks hold
less than the law requires them to keep
IN reserve, it is quite unusual for the
deficit to be so large.
The largest previous deficit was on
August II. 1898, when the reserves
were $l6,500,000 short of the legal re-
quirement
That Wall street is hopeful that some
action viii be taken by the Secretary
OF the Treasury to relieve the money
market was indicated by the move
nent OF the stock market after the
publication of the bank statement. In
stead of slump in stocks there was
only slight drop, which was checked
in q few minutes.
The scarcity of money is attributed
TO several causes. There has been
steady drain to the West on account of
crop movements. heavy dividends have
been declared this month and unusu-
aily heavy speculation in mining stocks
mas helped to pump the banks dry.
Inc Flnancier says this week: The
official statement of the New York As
sociated Banks last week showed
much greater deficiency in the reserve
than was expected. Though the ex-
tincfion OF the surplus seemed during
the week to be unavoidable because of
the directly traceable losses of cash al
most every day through the treasury. it
was thought likely that there would
be such volume of loan contraction.
and consequently reduction in depos
Its, and hence of reserve requirements,
as to minimize the loss of reserves. 1t
seems, however, that instead of there
being q large contraction there was
only moderate decrease in loans so
that the statement reflected in the re-
serves almost the entire amount of the
loss OF cash, less the decrease In re-
serve requirements. The reduction of
S12.260.000 in the cash item was larger
than that which was generally esti-
mated because of the bringing over
from the previous week of the unre-
corded average resulting from the
transfer to San Francisco on Friday,
November 80, of 1000 900. The de-
posits were decreased 6,45T,200. which
amount very nearly agrees with the
'um of the loss of cash and the con-
raction in loans, and therefore the
tatement made a good proof. The re-
required reserve against general de-
posts was reduced $4,114,3OO, deduct
ing which from the loss of cash as
above, left sS,151.30 as the decrease in
reserve to S6,702,175 deficiency. This.
i may be observed, is the largest def
citSSof the year. exceeding by SPA
$50 that of $6,577,925 recorded on Sep
TENDER s. Computed in the basis of
deposits, less those of s14.27S,500 pub
lie funds. the deficiency is s3,132.450.
Loans We're reduced ss3,9S3,500. This
was probably due to the response by
the banks of the urgent demand during
the week by stock operators for ac-
Communications, the withholding of
which might have been. attended with
serious results, through the develop
ment of greatly unsettling conditions
in the stock market The loans were
s62.491,S00 in excess Of deposits, much
the largest excess for any week during
the year.