The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-11-08
GOLD COMING TO METROPOLIS.
Increased Their Deposits and the Sit
uatioG on the Whole is Appar-
emily Bright.

week came 10 a close today without
any notable developments. The stock
exchange was comparatively steady
during the lay with ,i'tle activity.
The runs upon banking institutions
seem to be practically at an end and
few important conferences were held
bv fra. .cicrs. Tie ,'er.:n! in the re-
serves Of the New York clearing house
banks WIS !:a:,v:er thai IN any re-
cent ex:,rrclcr. lat VII! be largely
v!f-.: Er tic COX: 4 1:va.: next week.
nc l. - N I'll, r>"'lc was about
$37,O00,000, but $7,000,000 Of this was
due to the requirements Of % per
cent against an increase in the depos-
its Of $2S,000,000. This increase in
deposits in the clearing house banks
apparently represents the transfer OF
funds from the institutions which
have been subjected to runs. The ac-
tual loss in cash, therefore, was about
$3O,000,000, which reduced the reserve
on hand to about$225, 100000. The
gold engagements increased slightly
today by orders from Pitssburg and
other points, making the total engage
ments to date $29,150,000. If all of
this amount should 60 into the reser-
YES of the clearing house banks it
would practically restore their loss OF
cash during the past week. Even the
diversion Of a part Of the amount to
other cities will leave the bulk OF
the gold arriving TO go into New York
banks and probably will result in an
increase Of reserve next week. a
part of the decline in cash, in the
face of heavy deposits Of treasury
funds, has been due to the calls Of the
country banks for currency. 1t is be-
lieved That these have been pretty
largely met and that the amount Will
not be nearly as large during the com
ing week. Reports received from var
ious parts of the country indicate that
the system Of meeting pay-rolls with
checks instead of in currency is being
largely adopted without any essential
inconvenience to wage earnerns.
William 4. Nash. president Of the
Corn Exchange bank. and member
Of the New York clearing house com
mittee, said in explanation of today's
bank statement that the clearing
house banks have been taking over
the loans called by the trust compan-
les. and that this increased the bank
loans. Mr.. Nash said:
''The trust companies have increas-
ed their deposits in the bank. The to-
tai deposits have thus been increased
without any addition to the stock OF
cash and naturally the percentage OF
reserve has fallen. I do not regard
this significant because the interest on
deposits by the trust companies IS
payable. not in cash but in clearing
house funds.
''The changes in loans, deposits and
reserve are so much in the nature Of
bookkeeping that they should not af-
feet the present situation.
1.-THE real matter in the bank state
ment is the supply of cash. The los
ses during the week are not greater
than I expected. The shipments to
the interior and the boarding Of cur
rency account for the loss reported.
II believe that from now OH there
will be an Improvement. The hoard
ed currency will respond, as it always
has, to the premium that is being Of
fered. The gold on the way from
Europe Will begin to in next
week and with it will come a falling
off in the excitement about cash.