The sun., 1907-04-14
SURPRISING BANK STATEMENT.
IOtNS INCREASE SS7 ,OOO, 900 AND
DEPOSITS S45, 900, 900.

without waiting for Amy Explanations
Traders Sell stocks All Around the
ROOM Withdrawal OF Trust Cos. From
the Loan Market Caused Change.
II, all its important features yesterdays
h,rt statement was exceptional and IL
Zoo, the Street generally by surprise. The
showing Of loans was probably unprece-
lar'sd. for there was an increase Of $685.
oss 40 Almost as extraordinary was an
,,crsase of Sl4, ,94s.sOO in deposits. An
Increase of S7.84s. 800 in cash and a decrease
~ s3. 4A8. 75S in surplus reserve also ran
counter TO most OF the preliminary fore
casts based on the known movements Of
money.
rbe surplus reserve reported was SIS
g., q25. as against SlS.44l .22S last week
81 ~. 500 last year and 50. .SS2. 400 two years
AGO. The showing Of the surplus was
satisfactory enough, but traders were at a
loss 10 account for the great changes In
m. various items and sold stocks all around
the room. This selling produced the sharp
e-r decline Of the week.
The larger institutions. with the ex-
cantion Of the City, showed close uniformity
in increases in loans. deposits and cash
The City on the other hand showed an
increase Of but 81 $4,000 in loans and a
decrease of sl2,s46,IO in cash Commerce
showed an increase Of t6,S9l 800 in loans
ana Sgi7, 800 in cash; Park, an increase Of
g. $4,000 in loans and e., ,202 900 in cash;
first, an increase Of S., 1897, 900 in loans and
A. 6gl 600 in cash, and Chase. an increase
Of Sili7, 100 in loans and 81 .239. 900 in cash
In most of the other instances a large in
crease in deposits and considerable in
crease IN cash accompanied the increase
The remarkable increases in loans and
deposits were due principally, prominent
bankers said, TO the withdrawal Of trust
companies from the loan market and the
deposit of their funds in the banks. Call
loans averaging but little more than 2 per
cent. throughout the week, trust companies
and interior banks saw little advantage in
securing new loans to replace those paid on
or for the most part in either renewing
call loans or leaving them outstanding. A
rate Of per cent. on their deposits is al
lowed to these institutions by the local
banks.
The trust company and interior bank
loans we're thus shifted on the banks. greatly
increasing the banks loan accounts and
there was a corresponding increase Of de-
posits from the cash secured by the banks
from the trust companies and interior in
sruutons. The increase in deposits
necessitating larger reserves, brought
about an increase in the cash holdings
but did not suffice to bring the surplus re-
serve up to the figures OF the preceding
week.
The payment Of $4,000, 900 on the Great
Northern stock issued also had an influence
on the returns. though 1t was not as great
rs many analysts Of the statement believed
A large part OF the money, as is we'll known,
was paid before this week. In payment
If the remainder loans were In many cases
made, but large part Of the money paid
into the company's treasury was deposited
In the banks and helped to swell the de-
posts. AS in the shifting about Of trust
company accounts, the Great Northern
payment showed in the loans, the deposits
and the cash holdings.
The market had been declining steadily
before the appearance OF the bank state
ment. The downward pace thereafter.
was accelerated and the close showed heavy
net losses In most Of the active speculative
shares. These were some Of the principal
declines: Copper ~: Smelters, 81; st.
Paul. ?; Delaware and Hudson, 81; Erie
first preferred. 21S; Great Northern, ~;
Great Northern ore, 8; Lead. 21S; Northern
Pacisc. 81; Reading, tx; Southern Pacific.
81; Union Pacific. 81; Steel common, "a;
Steel preferred. u.