The Birmingham age-herald., 1907-11-03
RESERVE LOSS IS Ey;x55sA|NED
 SS
 ZSo Financiers . 2 Alarmed By Ds... Statement
Ds. 4 Statement
GOLD WILL SOON ARRIVE
William A. Nash, President of the Corn Exchange Bank, Issues Explana- ton of the Bank Situation
 as 1t Now Stands.

New York. November 1.-The financial week came to a close today without any notable developments. The stock exchange was comparatively steady during the day with little activity. The runs upon bank ing institutions seem to be practically at an end and few important conferences were held by financiers. The decline in reserves of the New York clearing house banks was heavier than in ay recent ex- perience, but will be largely offset by the arrivals of gold next week. The ap- parent loss in the reserve was about $S7,- GOO, 600, but $7,0OO000 of this was due to the requirement. of % percentage against an increase in the deposits of $28,0 ,000. This increase in deposits in the clearing house banks apparently represent the transfer of funds from the institutions which have been subject to runs The total loss in cash, therefore, was about $6,00O,00O, which reduced the reserve on hand to about S225, 5,0OO.0O0 The gold en- agreements increased slightly today by orders from Pittsburg and other points, making the total engagements to date $29, 50,O00. If all of this amount should go into the reserves of the clearing house banks, 1t would practically restore their loss of cash during the past week. Even the diversion of 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 de- cline in cash, in the face of heavy de- posits of treasury funds has been due to the calls of the country banks for currency. It is believed that these have been pretty largely met and that the amount will not be nearly as large during the coming week. Reports received from various parts of the country indicate that the system of meeting payrolls in checks instead of in currency, is being largely adopted without any essential in- convenience to wage earners
 William A. Nash president of the Corn Exchange bank, and d member of the New York clearing house committee, said In explanation of todafs bank state- ment that the clearing house banks have been taking over the loans called by the trust companies and that this increased the bank loans Mir. Nash added:
 "The trust companies have increased their deposits in the banks The total de- posits have thus been increased without any addition to the stock of cash and naturally the percentage of reserve has fallen. l do not regard this as signfi- cant, because the increase of deposits by the trust companies is payable. not in cash. but in clearing house funds.
 The changes in loans. deposits and re- serve are so much in the nature of book keeping that they should not affect the present situation.
 'The real matter in the bank statement is the supply of cash. The losses during the week are not greater than I ex- pected. The shipments to- the interior and the hoarding of currency account for the loss reported
 'I believe that from now on there will be an improvement. The hoarded cur rency will respond. as 1t always has. to the tempting premium that is being of- fered. The gold on the way from Europe will begin to flow in next week and with 1t will come a falling off in the excite nent about cashr