Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-07-03
NATIONAL BANK RESERVES
ARE UNUSUALLY STRONG
Requirements for Handling Crops Can
Be Met Without the Slightest
Pressure-Assoclated Banks
Show Gain

Dun's review of the money market is:
Reports Of the banks of interest at this
time as indicating the strength OF reserves and
the fact that all requirements in connection
with handling the crops be met without
causing any pressure. According to the comp
troller of the currency, the national banks on
May IA reported unprecedented resources Oh 90
Sol, 622, 697, increase S3O6, 3S2 800, as COM
pared with March %, 1907. During the three
months since February IA loans have expanded
sos, 99s, 227, but specie and legal tender hold
ings rose about $73. 600 900. the only important
decrease during the period being the reduction
In government deposits OF SOL, 100000.
The associated banks last Saturday showed a
very large gain in almost every item, partly
because the National Copper banks ngures
were included for the first time, but the net
proportion of cash to liabilities made good
gam and it is evident that the trust COM
panes are not going to withdraw the amount
Of cash needed to comply with the provisions
of the new law early as was supposed, the
amount to be withdrawn being s19, 900. which
IS to be added to their reserves next Wednes-
day.
The associated banks are amply prepared for
the drain, however, and can take over any
loans that it is found must be paid off II the
cash holdings cannot be readily supplemented.
Of course this operation will have no effect on
the general position OF local institutions as a
whcle, and the new method Of presenting both
statements simultaneously Will be OF unusual
value on that account.
treasury officials are still striving to solve
the problem of what to do in regard to the
maturing bonds. II they are retired the et-
feet will be to advance the price of the re-
naming bonds. which might encourage banks
to sell some OF their holdings upon which cir
culation has been issued, while If the bonds
are refunded and another Panama bond issue
made when necessary It would probably tend
to weaken the market value of outstanding OBJ
legations Of the government.
Doubtless the secretary will see that the
operation may influence the issue OF crcula-
tion under the new law in one case and not
in the other. Semi-annual settlements did not
harden the money market here, and the for
eign demand for gold seemed filed in so far
as New York is concerned although Paris
competed vigorously for the weeks offerings
Of new gold at London, advancing the prices
to IT'S 10Nd.
Call money has ranged from t61% per cent,
most new loans and renewals being on the
basis OF IL per cent Time money was dull
and easy, light trading in securities curtailing
demand, while the banks were not endeavoring
to force loans. Rates are almost nominal at
per cent for sixty days. 2@2H for ninety days.
e1k62si for four months, 3G3k for five months,
3H63h for six months, and 3%d4 per cent for
longer terms. Demand for the best quality OF
commercial paper continues TO exceed the sup
ply and prime names are quoted 81 per cent.
There is little business at that rate. however,
less we'll known Endorsements being more
abundant and selling at per cent.