The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-08-17
WEEKS BUSINESS SF1RLNK.S
u PER CENT. OVER COUNTRY
New ork Hardest Hit Owing Embargo on Foreign FIX
change Troubles, Causing Suspension
of Business.

New York, Aug. 16--An increase
Of almost $1,000. 600 in the reserve
deficit OK the banks and trust COM
pauies composing the New York
Clearing House association WAS shown
in the weekly statement Of averages,
published after the close of business
yesterday. The deficit now stands at
( S47s992. ESQ, comprising with "A sur
plus of a little more than 100000 600
\ just before the beginning OF the
. European war
/ Cash reserve Of the clearing hour
4 institutions held against deposits
shows It reduction of S5.147, o00 since
July %, the loss being due in great
part to heavy gold shipments to
I Europe Just before and Immediately
after the declaration of war. with
, drawais for Canadian account and
transfers of currency to interior
points
Against the present total deposits
the law requies a reserve in cash of
S430+724,250, the difference between
the latter and cash held of s3s2.732.-
000 accounting for the deficit OF al
most 5000, 600
Tremendous Strain Ably Met.
Legal reserve limit is supposed to
be maintained. but as bankers believe
that in times Of emergency n reserve
Is meant for Use rather than for
window dressing purposes, and as the
controller OF the currency realizes the
fa Hing Of a bank below its reserve re-
qUirement in extraordinary times is
not an indication OF insolvency, it is
seldom any institution is actually
threatened with liquidation proceed
inRs because of its deficit in reserve
Local banks have been laborirg
under tremendous strain, which has
been ably met. With clearing house
certificates for use between the banks
in the settlement OF balances and
with emergency currency which can
mot be included In reserves for gen
eral additional circulation, the finan-
cial institutions consider themselves
In a relatively strong position, in view
Of the unprecedented conditions IT
money and business arising from the
war collapse OF the financial markets
Weeks Contraction S37f,5t0.7.9.
Extent Of the influence on money
and business in this country OF wal
developments is found in the report OF
! bank elearings of the country in the
lust week, all cities showing a falling
off in the volume of business through
clearing houses Of a little more thar
q per cent as compared with tht
same week last year. the actual con
Traction from a week ago amounting
Ito S371.5l0, 729.
inns tremendous SHFtUkdEt f"RI Y
sents what has happened 10 finance
and business in consequences of The
closing of all tho leading exchanges
the embargo on shipping and sharply
reduced operations In merchantllt
lines directly affected by the hos
Titles.
By virtue Of its position of chic
financial center In the United States
New York city suffered more las
4., az 1aCtiy1fn0 Nm Gt
, ness. as measured by payments
through the clearing house, than any
other city New York has beer
, especially hard hit by the almost prac
teal cessation of shipping operations
lis clearlngs were 81 per cent under
, those Of the corresponding week II
1913.
War Risks Assumed Abroad,
Bankers are now hoping fol-
definite results from the trade and
exchange conference which was helc
in Washington Friday, and from tbs
, meetings OF the current week. Prob
ably they are praying for relief from
the congested condition of the foreign
/ exchange market and the practica
blockade Of the Countrys foreign
trade because there never has beer
a time In the history Of the natior
, when conditions were so extraordin
I airy and when credit and shipping
facilities we're so completely paralyz
ed.
Representatives of various trad'
! bodies who attended the Washington
z conference said yesterday that tht
7 restoration of the market for foreign
2 bills Of exchange. providing for send
7 Ing grain, cotton and other com
modities abroad, with adequate wa
insurance on shipping would be effect
> ed from the very necessities Of tht
= situation.
q few scattered offerings of Cra!r
r. bills were reported Yesterday and i
? was understood that to n certain ex
tent foreign buyers OF American whea
were assuming the war risk. while
Chicago reported three carEoes o.