The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-08-09
Of Finance


The money market has been unset
tied throughout July, owing to the
heavy transfers of funds between the
banks and the Treasury, and some
shifting 70 reserve pursuant to the re-
ouirements of the Federal reserve
amendments. The effect appeared IN
sharp changes in call money rates.
wtief6v A9N5eveFSa aff4cted aIcompara-
neutrality-suspicious. o6f Business. The
> banks do not always resort to the FED
eral reserve bank for the purpose OF
keeping the call rate steady. me
Borrower in the call market Is an or
shan, for whom no one has very
4 Keen sense of responsibility. Time
money has been steady with tend
ency to firmer- feeling in the latter
part, of the month. The six months
rate is ga to S per cent $50
The most noteworthy fact of the
situation is the absence of any appreci-
able trace Of the Liberty Loan TRANSACT
ton in the New York bank statement
: 1t was, the biggest piece of financing
ever handled in this country, and II
might be expected that New York
would lend considerable money IN
connection with It, particularly as the
subscriptions of this dictrict were
about IS per cent. paid at once. But
the loans and investments of the
Clearing House banks on June 9Th ag-
xregated $3.50, 2s4,000,. and on July
2Sth aggregated s3.773,538.0o0.
The Federal Reserve banks likewise
show a comparatively small increase
In their loan totals. On June Sth bilis
' discounted for members aggregated
ssS,021. 900 and bills purchased in the
open market, s135,270.0O0. On July
2sth these figures were $1ss,459,ooo
and $1s5, 0s7,000. respectively.
Great interest is manifested in bank
ing circles in the next government
loan, but no official information has
been lvouchsafed upon it.
The Federal reserve amendments
are now in full effect, and nothing
counts as legal reserve for any MEM
Der bank but credit at the reserve
bank of it's district. The terms re
serve city, and central reserve city"
have lost their old meaning under the
national bank act, although the desig-
nations are retained for the purpose of
classifying the banks as to the per-
centage of reserve required. The
New York Clearing House statement
conforms to the legal requirements.
The excess reserve reported is the
excess In the Federal reserve bank,
!. with no account taken of till money.
The transfers of reserves to the
Federal reserve banks have increased
the total gold holdings of the reserve
banks, including those of the reserve
agents from $1,01S.S13, 900 on June
18th to $1,362.26s.o 900 on July 2sth.
The change by which cash in bank
no longer counts as legal reserve will
naturally lead the member banks to
carry as little till money as practi-
cable, and. forks to the disadvantage
of the banks which because Of their
location cor the, specia11orequirement
of their customers are obliged to have
unusual amounts of money near al
hand. For this reason a number OF
y branches will be opened by the re-
serve banks in important cities of the
several district Arrangements have
been completed for branches at Oma-
ha and Spokane and branches have
been practically determined upon al
Ba4ti1nore,-Seattlea nd-Portland. Louis
vflteoznAme0erals nsneut eitiHs<are I'M
der consideration.
The Treasury statement the diff
ferent kinds of money in circulation
in the country ON june I, 1917, and a.
the corresponding date Of 1916 is as
follows:
June /, 1916 June 1, 1917
! Gold Coin s 631.Ooo.oo0 s 712so0o.0ot
Gold certificates,
1.s1s.ooo, 900 1.7se, 900. oot
Silver Dollars
ss,ooo.oOo 71,o0o,o o'
silver certificates
4S0.000,000 $4,000, 00t
Subsidiary Silver
lss.ooo.oo lss.ooo,oo'
United States Currency
342,O0O.000 342, 0Ot
National Bank Notes
733,000,000 III, 900, 90,
Federal Reserve Notes
182.o00,00o $4,000, 90,