The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-22
RESERVES RELEASED
TOTAL $169,416,64O
First Bank Statement Under
New System Shows Record
Surplus.
BIG INCREASE IN DEPOSITS

The first Clearing House bank state
ment issued under the Federal reserve
act showed yesterday the unprecedented
surplus reserve of the member insttu-
lions Of si7s,sSO,5i0. an increase OF
S163. 1860 over the week previous and
the largest ever recorded. The increase
was chiefly due of course to the reduc-
ton In the reserve requirements from
25 to is per cent.
The change In the bank statement was
the first radical change since the found
ing OF the national bank system in 1863
After the panic of 1907 there were some
changes of moderate nature, but nothing
SO sweeping as yesterday. one change
was that the figures for the trust
companies were included in the
statement. The other was that a state
ment of the actual condition OF the banks
on the Friday night preceding the state
ment, as well AS the ststsmon mt OF aver
age condition for IN" week. was added
The increase in excess reserve. AS pre-
,iously pointed out by Albert ". Wiggin.
chairman OF the Clearing House com
mittee. does not mean that this amount
has become aVails bic for loans imne-
dately. The employment OF this released
reserve in actual business will take place
only after bankers In control OF the stu
alton become convinced that the new
low reserve figures provide a sufficiently
safe margin for working basis.
The amount Of excess reserves over
those OF last week corresponded with
moderate Closenees to the estimates OF
the amount of reserves to be released
made by the Comptroller of the Currency
and the State Banking Department. The
Comptroller estimated that SIS. 100000
would be released and the State Bank
ing Department about s77.o0O.o00 OF the
New York city Clearing House institu-
lions, total OF sI65.0O0.ooo.
The largest excess reserve next to
that OF yesterday came az the aftermath
Of the 1923 panic on February 2. 1894.
the surplus reserve had increased to
slll.623.oo0. On June 81. 1905. follow
ing the 1907 panic, the surplus was
$50. 09S. 800. On June -, 1911, the sur
plus. including the trust company mem
bers of the Clearing House. was $50
915,5O0.
For one of tho very few times in its
history the bank statement yesterday
was late. 1t usually appears ut . o'clock
and when later than this the whole hnan-
cisl community becomes nervous Yes.
terday the statement WAS over an hour
late. but allowance was made for the
delay by reason OF the revolutionary
changes made
In the statement loans OF the Clearing
House members are SHOWN 20 have In
creased 1900 900 and circulation de-
creased sl4.000.000.
An item that attracted good deal Of
Interest among bankers was the fact that
net deposits were slo@.00o.o0o greater
than those OF the week previous One
reason advanced to account for this was
that time deposi;s of trust compa MES. pre-
Niously not believed to have been counted
as deposits in the weekly return. are now
being noted under the separate head OF
time deposits.
one item that puzzl.d bankers was the
Increase of ssS.l47oo0 In aggregate cash
reserve this week over last. u Is thought
that tho new reserve requirements or
changed methods OF reporting, account in
large part for this.