The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-11-11
. THE FINANCIAL SKY
IS MUCH CLEARER
BUT SOME CLOUDS STILL HANG
OVER THE HORIZON.
RECORD OF BANK FAILURES
During the Present Crisis Is IN Favor
able Contrast to that Of 1898,
When 566 Suspensions Occur
red in Eight Months.

New York, .Nov. 1.-THE most
eventful week in the financial history
of the present generation came To a
close on Saturday with conditions
much clearer than a week before, but
with some clouds still hanging over
the financial horizon. The previous
week had closed with the disquleting
announcement that the New York
bank reserves had lost S30,0OO,OO0 in
cash in spite OF deposits by the gov.
ernment during the week of a nearly
equal sum, representing a net cash
loss OF $60,000,000.
The bank statement of last Satur-
day changes this situation. While IL
shows a nominal decrease4n required
reserves of $1S.0S5, 800, more than two
thirds OF this decrease is due to the
reserve requirements caused by In
crease in deposits because of the tax
ing over of loans from the trust COM
panies by the banks Moreover, the
actual casff loss of S4,313.000 is due to
the system Of averaging accounts for
the entire week including several
days before the arrival of the new
gold. Unless demands from the coun-
try are very heavy this week. the ar.
rival of additional gold will more than
Offset the loss of cash last week and
make creditable showing for re-
serves on Saturday next.
The demand for gold from Europe
came at favorable time in some re-
spects because of the outward move.
ment Of American products, OF which
the leading ones are cotton and wheat.
The fact that European bankers de-
cliIed during the summer to accept
American finance bills, because they
already scented the storm. made this
demand upon them more sudden than
would have been the case If Ame rican
bankers should find it necessary at
the present time to buy cottC1 and
grain bills to cover previous borrow
ings. Under the actual conditions Eu-
rope must pay in gold for the balance
Of exported products which is being
created I'm favor of this country by
every bale OF cotton and car load OF
wheat placed on shipboard for export
One of the favorable textures of the
situation thus far Is Tie relatively
small number of failures of national
banks as compared with uhe record of
1893. At that time TS national banks
suspended in the month OF July and 63
additional In June and August, while
during the first eight months of 1893
the number of suspensions of state
and private banks was 4l5. In the
present crisis the number Irrational
bank suspensions reported does not
exceed dozen, and some OF these
will reopen.
While October failures were the
largest of any Iaonth for | / years, the
total being swelled by suspension of
several large establishments which
represent the merger of smaller insti-
tutons and the suspensions have been
generally due to curtailment of credit
rather than lack of business, yet the
reports for the first week of Noyem.
Der are distinctly favorable, showing
only 239 failures. as against 262 and
2l3 for the two previous weeks
b The new week opens with the bank.
{ ing situation in New York cleared VI
so far as any danger of further fail
ures IL concerned with the banking
reserves comparatively intact. and
with more than s25,000.000 on the
ocear to strengthen them during the
coming week