The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-10-17

New York. Oct. 16.-Basis OF an abso-
lutely convincing sort was disclosed to-
day for the care with which the leading
bankers OF our city have this fall regard
ed the future OF the money situation for
the remainder Of the year.
Still. Indication OF this had, indeed. al
ready been shown In the past in the
figures OF the weekly bank returns. which
pointed TO the potentialities OF an ex-
tension Of the credit system in our coun-
try, through the means OF private lend
ing of funds by corporations and insti-
tutions not comprised in our local clear
ing house association
Abundance of Money.
Those manifesting this assurance re-
garding the matter have steadfastly con-
tended that the abundance Of money in
the country was such that an advance of
/ to IN per cent in the price Of time
funds, and a rise OF or s per cent in call
money rates. would serve TO bring mon
ey to this center SUFFICIENT for all the
reasonable needs Of Wall street
After to-day's bank returns, It would
seem as II doubt on the subject could
most skeptical.
The statement was. indeed. Of an al
most sensatIonally favorable character.
Under the average figures OF the return
a decrease IN loans was shown Of So, $50.
900, and a decrease OF but A.4O0,50O in
cash. which. along with a decrease in
deposits OF more than 100000. served
20 swell the average" bank surplus in
the sum OF $5.74S.OOO
This in Itself would have been more
than satisfactory. but the actual figures
OF the bank statement. which have now
come 10 be taken in the financial district
as being the true measure OF the exist
ing situation, made an even more crafty
ing exhibit. There was a decrease IN
loans here Of more than 100000, coupled
with an increase in the amount OF cash
on hand % nearly S2.50O.OO0. which along
with a decrease in bank deposits Of 500.
100000. Increased the actual bank surplus
In the sum OF IS. 900. bringing the total
actual surplus az present 20 nearly $16.-
100000, a figure which makes most en-
couraging comparison at the close OF
former years at this date
AS II this were not enough the state
ment OF other banks" that is to say.
mostly the local trust companies. told
OF a decrease in loans there OF over S25.-
0o0,0o0. and an increase in cash OF over
N.Soo,OOO, the deposits OF these institu-
tons also decreasing nearly S42.OOOOO0.
Figures Highly Important.
These last-named figures are highly
important. as they attest that the true
source OF the great financial relief that
has been afforded is, as local bank Off
GERS have all along maintained. the put
ting out of money by corporations and
out-of-town banks that has been induced
by a comparatively slight elevation IN
interest rates.
To-day, following the usual course after
a week in which a considerable advance
IN security prices has been recorded and
before the figures or the bank statement
became known. the tendency of the stock
market was toward irregularity and a
moderate amount Of liquidation
Therefore advances and declines in the
active stocks to-day were again rather
miscellaneously scattered. Profit taking
was most conspicuous in United States
Steel stock. in which rise OF over seven
points in the last three days had oc-
Cured