The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-11-21

hand amounting to 205s per cent of
deposits; last Saturdays 51,224,-
900 deficit left a reserve ratio of
20A. In other words, the New York
banks are actually not worse off than
they were IA years ago.
The reason why the present def
cheney is so much larger than that of
1893 is that all other items in the
bank statement are today much lar
ger. Last Saturday, the New York
banks held $219,794,O00 in actual
cash, when the deficit of 1903 was
greatest, these same cash holdings
were only $76,505, 900. But, natur-
ally, in the legitimate expansion of
banking business between 1893 and
1907, loans and deposits had in
creased in a similar ratio. Where
deposits, in that earlier panic,
amounted to 100000, they
footed up last Saturday $1,0S6, $685.
900. The conclusion to be drawn
from these facts is, that the New
York banks, being nearly three times
as strong in actual resources as they
were in 1898, can report deficiency
in reserves three times as great and
still retain fully sound a position
as they did that year Within four
weeks of the heaviest deficit of 1898,
surplus over the 25 per cent re-
serve had been restored, and the
same thing is likely to occur this
year. As for the mere fact that re-
serves were so far invaded as to re-
duce their ratio to deposits from 25
per cent to 26A, every one knows
that such use of the stipulated re-
serve, in panic time, is precisely the
reason why that reserve was pre-
scribed by the banking law. The
sound principle of banking, recog-
nized ever since the celebrated "Bul-
lion Report" to parliament in 1910
has been that, in times of panic
banks should discount freely and
fearlessly for all solvent customers
but at high rates, and should use
their reserve fund for that purpose
All of which is good and reassur'
ing reading in these times when sc
much inaccurate speculation il
abroad
1t is not in the least true, either
that the New York banks have re
fused to send currency to the western
banks, as witness this pointed edito
rial paragraph in the Commercial
and Financial Chronicle of that cit!
of date November 8:
"a newspaper contemporary in low;
writes us inquiring as to the &C
curacy of our assertion of last weel
that the city banks had not stopped
shipments of currency to countr!
banks in payment of balances du'
them. The writer refers us to thu
declaration in his own paper, namely
chat the reason there was short
age of currency in the west was be
cause New York bankers refused tt
send out to Chicago, and other west
ern banks the money the latter had
on deposit there" He asks us if this
statement is not true. 1t is decidedly
not true, as we showed last week, and
repeat again the present week. Ac-
cording to the figures collected by us
from the individual banks, the gross
shipments by the New York institu.
tions during the week of the panic
were $21,500,000, last week they
were $22,016,OO0, and the present
week they have been $21,500,00O
more, making for the three weeks al
together SOS, 5000. These figures
furnish the best proof possible that
the New York city banks have moi
stopped shipments to their CORE
spondents either at Chicago or at any
other point"
1t is a manifest and gross erorr tC
claim that the New York banks re.
fuse to send out money to western
banks, when they are sending it Out
at the rate of upward of twenty mil.
lions a week-65, 100000 in three
weeks.-Salt Lake Tribune.