The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-09
BANK RESERVE 0.S PER CENT.
SNORT So. 5O?, I5J OF WHAT TT
OCGHT TO Re.

,oss or Deposits for the Week 10 III MILL
Fundamentally High Figures Paid
for Time Money ana Promise OF Worse
JnlP,> Relief Comes From the Treasury.
The Clearing Houss hanks reported yes
,araay a deficit Of 80. 7O2, It's in surplus re-
serye The ratio Of reserve to deposits was
p,3 pnr cent. Tn total reserve was $685.
NJ, 2oo as against a required reserve Of
s2G54t375. From the preceding week the
s+,temcnt showed a decrease Of 81, ISL 800 in
sprprIs reserve. a decrease of So. $50. COO in
loan. and a decrease OF SIC. 457. 200 in de-
no.,s The decrease in loans had been in
dicafed by the calling Of loans throughout
the week. hut the decrease in deposits.
much more than offsetting the decrease in
loans, displayed Unexpectedly large with
drawals Of money for current Uses.
on three previous occasions thisy year the
weekly bank statement has shown a deficit,
hut Yesterdays report was poorer than the
others on November 10 there was a
deficit Of 81 ,5li .f25. on September 8 a deficit
of sG.577.g25 and on April 7 a deficit of
g. 500 695. On no one OF these occasions was
the deficit accompanie led by 10 high rates
Tor loans
In the corresponding week of 1905 there
VA a deficit Of s l,2ie,525. In that week
thee wore much heavier transfers of money
to 1.-THE interior than in the week just closed,
and - this. together with large customs
collections. was ascrihed the decrease in
the reserve. Two years ago the statement
shovel a surplus OF 50, 1856 200, so that as
compared with 1904 the banks yesterday
were worse or by sI8 1907 ,375.
In rho pprrpSDOn1 inu week Of Iu05 call
money touched % per cent. as against 70
per cent in the week just closed, but the
great difference in conditions, bankers
sad, was shown in the difference in the
rates for time money. Last year time
funds commanded a premium for the first
time in the year, but the premium applied
10 the shorter maturities alone and was in
no case more than | per cent. Yesterday
and IN two or three previous days time
funds commanded generally the highest
premiums known in many years. On the
very best collateral a commission Of q.
per cent. was charged for sixty days, >
Jer cent for ninety days, I per cent. for
four and five months and one-half Of | per
cent. for six months.
There was nothing said in call money
Yesterday, loans made on Friday carry
ing over to Monday, but there were time
loans made, some of which were made
on more rigorous terms a in many
years. An entirely unprecedented loan.
~ - NN0F 80 hhAAN ~ ~ Wv VI
the largest Wall Street banks. which put
out $4,000 at ninety days at 3 per cent.
on the security OF 4 per cent. bonds of the
City OF New York.
The hest mercantile paper, which in
previous ycars has been placed at 3 m I
PER cent. or les, has gone in the week just
closed at az and 7 per cent, four and five
months loans commanding the higher
and six months loans the lower rate. The
serious character Of the situation, bankers
said, was reflected principally in these re-
markably high rates for time money.
4 ear ago the advance in call mopey
rates in the corresponding week was fol-
lowed by advances in the following weeks.
On December 81 call funds rose to % per
cent. Two days later the maximum rate
was 40 per cent. and the average rate 81
per cent, and at the close OF the year call
money reached 100 per cent. Tn con-
dition shown yesterday, bankers said.
indicated a repetition of the history of
last year unless very substantial relief is
afforded by the Secretary of the Treasury.
The belief is quite general that some
action will be taken by Secretary Shaw
tomorrow.