The sun., 1916-12-31
FINANCIAL NEWS
AND COMMENT
Year Closes With Excess Re-
serve in Clearing House
Above 800, 900, 600.
BANKS IN STRONG SHAPE
Uncertainties In Stocks Likely
to Hinder Heavy Specula-
ton Just Now.

For the first time In many weeks the
statement Of the Clearing House yester-
day showed a combined excess reserve Of
the member institutions Of more than
800, 0O0, 200. the actual increase from a
week ago Of se7..71,i3o bringing the
total reserve above legal equircmonts TO
Sii5.335. 500. That the weekly return OF
the banks would make a favorable ex-
hibit was fo~reshadowed by the course Of
the money market on Thursday and Fri
day. and by the great influx Of gold. the
latter being reflected by a gain In the
cash holdings Of the associated institu-
tons of almost sS3.000.0 900.
In the week the banks not only gained
on receipts OF gold. but on their opera
tions with tho interior also. out Of town
shipments OF currency TO this centre
showing an excess over shipments from
here Of more thar 50, 500. 900, while " IL
q not been for heavy Federal Reserve
Bank collections the increase In cash
woul have been substantially greater.
Loans decreased to the AMOUNT Of s4.-
$4,000 and net demand deposits In
creased s33.513.000. Resources OF tho
Federal Reserve Bank Increased $751;
(61, with ar increase in reserve Of s13.-
?J6.f4l and an Increase In reserve de-
ppsits Of 81 ,190.S19.
Comfortable conditions prevail In the
money market. and according to the opin-
ion Of u leading bankers there Is moth
Ing in the immediate outlook. at least.
tina; need cause any alarm OH the part Of
borrowers regarding the suggestion heard
IN the last week In poorly informed
quarters that substantially higher rates
for loan accommodation might develop In
the early part Of the new year.
The closing week of 1915 was without
the slightest disturbance In money. not
withdrawing the preparations for the
financing Of the greatest January inter.
est and dividend disbursements In the
history Of the country. As a matter OF
fact rates both for call and time money
were easier than In the preceding week,
tho abundance of funds In the banks and
The quieter speculation In the securities
markets lending greater case to the stu.
alton h generally had been the case In
the final week Of other years.
Banking situation sound.
The fact that the combined reserve
holdings Of the Clearing House banks OF
this city are under those reported n year
ago. Notwithstanding the enormous addi
ton to the country's gold holdings ir
1915. Is not surprising when one view.
the working Of the Federal Reserve sys'
TEN IN the last twelve months. which hat
been effective In bringing about a bette,
distribution of funds throughout tn,
country. with larger increases in h re
sources OF tho banks Of the South ant
West, and when one takes into considera'
ton the expansion In loans Throughout
the year. And yet the increase In loan'
~ compared with the close Of December
1915. has not been excessive, nor does !
suggest the imitation Of which some per
son have been apprelnensive.
Banking In this country in the las
year has been conducted with great con
servatism. Tho banks az IA whole. bot
rational and State institutions. are in
stronger position han at any other tim
In their history. with the outlook for tn
coming year promising added strengtl
and n period free from the disturbing
advances In rates which so often In pre-
cedlng years caused upsets both in bust
ness and speculation.
There has been received In the yea
from all sources more than $3.50. 00o.0 90
in gold. and so great has been the influ
OF the precious metal that more than 4
per cent. OF the worlds stock Of til
metal Is held within the confines Of tn
Inited states. with the total increase |
the supply far beyond the amount hel
nv INC great central plUhN W CSuTOpt j
excess of the total held In the Unite
States at the outbreak OF the Europea
.
stock Market Outlook.
So far as the stock market is cor
cerned present conditions do not sugges
there Is to lie an immediate outbreak c
heavy speculation on either side of III
recount Operations last week were cor
fined In great part to the dealings OF til
professional element. with h tendenc
OF prices at the close In the direction c
higher levels. and with sentiment In Wa
Street mixed regarding the course {
market values in the early part Of 1871
There was much talk Of a Januar
rise, but at the moment 1t would be
rash operator who might go ahead or Il,
assumption that just because the marSs
has been through a period OF llquidat'o
and because IN Many years January In
been a bull month prices are to enjoy u
active upward movement In the next fe'
weeks.
Many uncertainties hayc to he consid
cred In relation 10 stock market move
men,s. Tho railroad labor situation, III
Mexican situation and tho internationa
situation possess possibilities that ma
develop enough uneasiness to attrac
further l~iuuidation and active prOfei