The Washington times., 1910-09-04
LOCAL BANKS SHOW
Loss IN DEPOSITS
Due to Various Causes.
Wisdom in Plan to Guard
Reserve Banks.
By I. 4. FLEMING

Comptroller Of the Currency, Lawrence
o. Murray, surprised the bankers Of
Washington and elsewhere with the call
fer statement Of condition at the close
Of business September Z. just sixty-One
days after the call Of June 50. This call
is just as early as the previous one was
late, moreover, the first of the month
Is the time when the clerical forces of
the banks are very busy with the usual
rush of business.
The statements OF local fiscal fnstitu-
tons all show more or less loss OF
deposits, much more 50 than had he
call beer delayed a few DAYS All
Government repositories lost at least
half OF the tax money 20 the Govern
ment, and the urgent demand for
money IN the last ten days has been
responsible for still further reductions
IN deposits and increases in loans
Vacation periods have made inroads
in deposits, builders have been making
heavy payments. winter residents, alb
sent in the summer nave drawn down
balances, and merchants discOunting
their fan purchases, have added 70 the
drain % the cash vaults. MOTeOver.
but q small amount Of the pay roll 10
Government employees had found its
way into the banks TO figure IN the
statements.
There can be nothing but approval
Of the plan OF the Comptroller Of the
=
Of reserve banks. II IS the habit OF bank
ers to keep their surplus cash. other
than as demanded By law, IN reserve
banks. where the call for funds enables
the payment OF interest generally on a
2 per cent basis
New York is the chief reserve center
Of the nation, but banks IN other cities
are reserve agents. in Washington, IN
Chicago, in Philadelphia, Baltimore,
Boston. etc Because Of the fact that
some Of the largest banks are reserve
thousands Of lesser Institutions. it
would be a serious matter TO all should
one OF the big banks become lnSOfVenL-
It Is but the part Of wisdom that the
condition Of reserve banks should be
vigorously watched. and that this ad-
ded protection be given O. the bankers
who are not IN position 20 know the
true inwardneSs OF condition. financial
~. Of their agents.
Statements lust published I'm response
70 the request OF the Comptroller, snow
that the National CITY Bank. OF New
York has SIS 80. es0 belonging 10 other
national banks on deposit. 1854. co
due 70 state banks and bankers and
SgI- I03. Sd belonging to trust companies,
with grand total OK S574'sil; - o. d ls5o
posts Of all kinds. including S2,5p5.too
foreiEn governments funds ana 81
s49e1J United : -ates Government funds
II Is almost he same thing IN lesser
degree with all the prominent banks OF
the leading cit es-and no stronger eX-
ample could be brought TO the 'front.'
showing the ur-ent need OF sound bank
iug and solvent condition Of banks that
hold such a l1rEe proportion OF the
moneys Of the country
since the publication IN this column
one week ago, &C the plans OF the Gas
fnsi1ars Tor the placing of che stock On
a basis OF s4A OF $50 share regular
annual dividends. but one lot OF ~
shares has changed hanGs- lhis AZ a.
~ above the closing price OF the pre-
y-i0-5s week There are numerous or
ders on the market at TINS price, buI
none offered under f61z- Some Few sales
- While there viii always be an army
OF skeDtfcs holding that the Gas CON-
panv wiz do nothing II IS oeiieVed DE
the weII-informed that the ofnclais VIII
take n further chances with the TEN
per oF Congress before removing any
Cuesffru OF the validity OF the certin-
cate -ssUe- Moreover insiders nave
greatly enlarged their holdings OF actual
stock anG the chances are all favorable
10 the carrying out Of plans before
Congress meets again.
Nesriv = per cent OF the entire sur
ul1ls reserve OF the associated banks OF
New York CITY IS in the hands OF three
banks The figures are decidedly inter
esting- go -ooo
National CITY 49,. 50. 165.OoO s5-i6o.Oee
First National $1,000 9.24S,099 l,s.s,gI9
Manhattan -..---.----- 7,7'o.eO etV'ooo
Three hanks .-. S7.gS3.O 5.3E5. COO
Ofber hanks --.-.---- 12.O76.GG0 1908, 0o9
A17fbautxz -- 50.G5g.O00 i. G3S. 600
The great strength Of the National
CITY Bank might suggest the position
thst the Standard OF crowd has taken
on the market for months past ever
since February OF the current year, and
even before that date-antagonistic to
any upward movement
II is also. possjbl, that this strength
eriny Of resources has been caused BY
an anticipation OF the demands for crop
-,oven7ent Whatever the cause il Is
nor plainly evident. but the market
- = tl,a- annals 70 those WHO have