Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-08
NEW YORK BANK STATEMENT

NEW YORK, December THE state
ment of clearing house banks for the
week shows that the banks hold $46 21O,
$50 less than the requirements of the q
per cent rule. This is an Improvement OF
Sc, 1905 in the proportionate cash re-
serve as compared with last week. The
statement follows:
Loans, $1,1S6 39O, 600; decrease, $11, $751;.
800.
Deposits, $1,O74,s51 400; decrease, s.. 4S1, >
900.
Circulation, $50, 61s, 100; increase, $S,52s,-
800.
Legal tenders, $4s,G13, 500; increase, ST..
$50, 900.
Specie. S173, SSS, 700; increase, SIS 334, 100
Reserve, $2222, 5O2, 800: increase, $4,671, 100
Reserve required, $26s, 712, $50; decrease
81, 1O1,975.
Deficit, $46,2lO35O decrease, $6779.O75.
EX-u. S. deposits, s27, 500; decrease
81, 647, 100.
Money on call nominal.
Time loans nominal; 20 days, 10 pei
cent and 80 days s to 10; six months, t
to Z.
Close: Prime mercantile paper. 7aS per
cent; sterling exchange weak, with actual
business in bankers bills at 4So. 1Oa4S0. 81
for demand, and at 4SO.75 for 6O-day bills.
Commercial bills; 4sOa4sO14. Bar silver
5619. Mexican dollars, 40. Government
bonds steady. Railroad bonds strong.
The Fnancier will say:
The associated banks of the city of New
York issued an exceptionally favorable
statement under date of December Z. the
increase in the reserve requirement toward
the % per cent minimum having been
S6,7I9.O1o, which brought the deficiency
down to $46,21 $50, as against $53, 666,
gain of over S7,0O0,OO0 represents the re-
Cooperative powers of the banks in the
face of conditions which are not likely to
occur again in a long period.
The banks gained in cash for the week
S4,671 100, or little less than had been
anticipated The known movements in
the last six days indicated a loss of
about $12,OOO,OC0 to the interior, which
was more than counteracted by the gain
of s17,C00,000 Of new gold imported and
from other sources.
One feature of the statement which at
tracted attention was the decrease of
81 ,6S2,900 in loans. and while it may be
true that operations of the previous week
were carried over into the current state
ment it is not to be ignored that the
paying power of borrowers is in evidence
here, and that the reduction represents
real cancellation of maturing obligations,
even in the face of rising stock specu-
lation. In brief, the exhibit confirms the
belief that normal conditions have been
resumed
The reduction in deposits was ss.431 800,
and this lessened reserve requirements
by $2,O0O,0OO and over. The deposits
of the government in New York banks
rose last week s3,474.5OO. to total of
So. 100 200. as an incident to bond pay
ments. ETC.. and If this total Is deducted
from the net deposit item, and the re-
serve figured on the basis of commercial
deposits, as is legal, it can be shown
that the associated banks are very little
below the % per cent requirement.
To put the matter in another way, the
banks are carrying reserve against de-
posts other than those of the govern
ment Of between % and % per cent. The
circulation of the national banks in this
city rose last week s352s, 800, bringing
the total to $65. 65S;1O0 a gain Of $14, Co.,
600 since the middle of October.
With the continued ease in the situa-
ton it Is almost certain that the pres
ent reserve deficiency will be decreased
largely week by week. In this connec-
ton it is interesting to note that the
associated banks were below their reserve
requirement at this time last year and
two years ago.