Omaha daily bee., 1920-10-31
Financial
Che Nelp pork Gimes.
BY ALEXANDER DANA MOVES
Chicago Tribune Omaha Bee Leased Wire,

Chicago Tribune Omaha Bee Leased Wire,
New York, Oct. 30-Today's
bwcekly statement of the New York
associated banks showed the pre-
vious Saturdays deficit of S23,900,000
under the required reserves, to have
been replaced by surplus OF $751;
100000. This is the usual sequel
under the federal reserve system Of
the four deficits in 1919, occurring
respectively on June 2, August 2l,
September 2l and December 20, and
the six in 1920 to date, occurring on
January 10, March 20, July "a, July
81, October 2 and October Is.
A deficiency has been repeated in
an Immediately subsequent week
only on one occasion. The private
banks are always able to cancel such
a deficit through pledging their mer-
camille collateral at the reserve bank
and leaving the resultant credit as
additional reserve against their own
deposits.
Last week the surplus was restored al
most wholly through addition Of $4,000
600 to such federal reserve credits. So
far as concerned the federal reserve
bank itself, the large deposit liabilities
tial increase In that institutions own re-
serve. 1t gained nearly $4,ooo.0o0 in new
gold presumably the proceeds of pur-
chases on the London market. while re-
$2o,0Oo,OOo more to the banks credit In
the systems central gold fund.
Reserve Ratio Increases.
The reserve ratio of the federal bank,
accordingly increased " Of per cent
despite the icrease in It's liabilities This
private banks and Of the reserve bank,
may foreshadow somewhat easier Wall
street money rates in the coming week;
but there are still heavy requisitions to
be met In the credit market. 1t is
interesting to recall that the New York
banks have already reported more weekly
deficits thus far In 1920 than in any full
past year except 1914. 1907 and 1898.
stock exchange, where advances and de-
clines. mostly fractional. were inter-
mingled without evidence of any uniform
tendency. Business was not large. The
ular. ending with prices for the majority
ular, ending with price sfor the ma ajority
Of bonds slightly lower than week be-
fore.
Bonds Generally Stronger.
Nevertheless y is q striking fact that
no less than 10 separate bond issues.
mostly Of the railways. reached at some
time last week the highest prices Of the
year. 1t Is equally interesting to learn
from the compilations that for the month
OF October the total transactions in bonds
outside Of government issues were the
largest Of any month since the armstice.
running $4,000, 600 beyond, September and
$4s, ,000, 600 beyond October. 1919.
More than the usual Saturday activity
occurred on today's foreign exchange
market and at the expense Of values.
Exchange rates on London, Paris and
Rome, were distinctly lower; all three
were In fact noted at the lowest figures
OF the week. Italian exchange reached
the most unfavorable level of the whole
war period. and the same thing has hap
pened during the week to exchange on
Zurich, Madrid, Amsterdam and Vienna.
The abnormal depreciation in the foreign
exchanges Of European countries which
have cut loose from the gold standard Is
easy enough to comprehend. but the fact
that exchange on two such countries as
Holland and Spain (wnose paper cur
rencies are better fortified with gold to-
day than they were in 1910, should stand
In our market at discount respectively
Of rs and 2s per cent from normal parity:
is one of the extraordinary anomalies OF
the period.