New-York tribune., 1913-08-16
DISCUSS SATURDAY CALL
DEPOSITS Shown To Be Smaller
Then than on Other Days.
MANY DlSAPPR0VE ACTION
valueless for Comparison, Say
Bankers, Unless Practice
Is Continued.

The action of the Controller OF the
Currency in issuing call for the condi-
,,or ~ national banks on a Saturday,
to1owed by a report from Chicago that
Leading bankers in that city said their
dsposits had been shown at figure low
~ than normal. led 20 comment yes
,s-day BY the leading institutions Of
mis- citv regarding the possible effect
NJ the Saturday call, in comparison with
a call on another day.
THE effect Of issuing 8 Saturday call
will be much greater in this city than
4, Chicago" was the statement of one
monument banker. "because our clear
,nrs are so much larger Deposits nat
uraIlv are smaller on Saturday than on
snv other day. and the shrinkage will
he more apparent in comparison. owing
70 the larger clearings Of this city"
The Chicago dispatch said that if the
call had been for last Monday instead Of
the previous Saturday the showing OF
deposits would have been several mill
ions larger one bank there had from
a. GOO 600 10 $4,000. 600 less Saturday
than on the first business day of this
week.
Al fully a dozen banks in the fnsn-
clal district varying opinions were held
on the showing from the call The presi-
d.rt of one Of the largest Commercial"
national banks. while admitting that
payroll demands were responsible for
larr. cash disbursements. and that de-
nosits were smaller. pointed out that
the percentage Of reserve would be un-
affected.
II The banks deposits are smaller the
bank will not have to have so much
cash in its vaults 10 meet reserve re-
ouirements and consequently the pay
roll checks will not affect the percentage
OF reserve
While bankers. reticent for fear that
thev might be thought TO be criticising
the administration did not wish to have
their names quoted. several we're free i'm
expressing their disapproval OF a call
on Saturday.
The call. 81 was said. would OF course.
show the true condition OF the banks
on that day according to their books.
The bankers disapproval OF the demand
arose chiefly from the fact that, as they
said. it was valueless for comparison
with previous calls.
The other calls" IL was said. were
FOR days in which a full days business
was done. and not for day OF two
hours duration. For this reason II is
easy 10 see that deposits. loans, specie
reserve and other items in the reports
will not measure up 10 preceding ones.
and that consequently a wrong impress
sion will be obtained Of the banks busi-
ness
The only way in which the last call
will te OF value for comparison Will he
10 issue other calls for Saturday. II
this is done. the business can be COM
pared. but a precedent will be estab-
lishod which will not be a good one, and
in addition an abnormal condition will
be shown"
Banks on Saturday. il was pointed
out are subject to large cash with
drawais. especially at certain seasons Of
the year, while deposits are smaller.
The true gross business OF the banks.
II was said. would not be shown II the
calls were TO be continued for Satur-
davs.
Another banker was OF the opinion
that even the percentage OF reserve
would be affected 10 some extent. Banks.
It was observed. receive large deposits
on Saturday shortly after the close OF
banking hours. These deposits are car
ried over and shown as OF the follow
ing Monday, not only for purposes Of
bookkeeping. but TO save the interest
OF two days. which would otherwise ac-
crue For this reason, IL was thought
the reserve would be shown 10 be higher
than II actually was.