The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-09-26
WEEKLY BUSINESS REVIEW PAGE :
Eastern Trade ReUiUeS
Faster Than Western

CHICAGO. Sept 25.-whilc the
countrys general financial situation
Is steadily improving and money
rates are easing such progress is
proceeding moro rapidly In the east
than In the west This is shown
la the statements issued by the fed
eral reserve banks. It Is made clear
why the New York institution on
Wednesday and the Boston bank
yesterday reduced their redBcount
rates from 3 IL to per cent. It
also is manifest why the western
reserve instiutions are more roluc-
tant TO take similar action. Dlrcc-
tors Of the Chicago federal reserve
bank Will consider the subject to-
day.
The New York banks have been
greatly benefited by the rise In the
price Of cotton. az they chiefly had
carried the frozen credits" ~ the
south. which now are being liqui-
datecd. As "A result the New York
reSerYq bank this week shows a vast
transfer Of gold to N from other in
stlutions, It's gold reserve crossing
the billion dollar mark for the first
time.
Western Banks Get Setback.
The western reserve banks have
profited much less by the moderate
advance In agricultural products. In
fact. this weeks statement OF the
Chicago institution shows rather
sharp SETBACK from the preceding
week. Western bankers do not be-
lieVe liquidation Of loans has been
carried far enough to Justify further
lowering the Chicago hanks rate,
for example, now is fun point
above the New York and Boston
rates.
The consolidated statement OF the
twelve reserve banks shows gold
md total reserves declined S26,627,-
600 and f2S.59f,0O0 respectively
Loans rcceded S40.g25,000. those on
government obligations and on COM
mcrCiol paper declining sS,521.O00
and S32,4Oi,000, respectively. Bills
bought receded S7,19S,OOO and total
bills on hand declined S4S,123,OOO
Total earning assets dropped $751;
OO3,O0O.
Total Deposits Drop.
Total deposits fell Sl4,22I,OOO,
with government deposits expanding
$24,964,OOO and the member banks
reserve credits dropping $42.829,-
900. Federal reserve note circula-
tion declined $l6,975,0O0. The ratio
of total reserves to net deposits and
federal reserve note Ilabilitis com
bined rose to 6S7 from 67.5 per
cent in the preceding week, while
the ratio Of gold reserves to note
circulation, after setting aside J5
per cent against deposit liabilities.
rose 90 D1.S from S9.S per cent.
The statement of the New York
Reserve bank shows gold and total
reserves increased sos. 5000 and
Sl06,l79,O00, respectively. Loans
declined SS1,O36.OOO. those on sog-
eminent obligation and on CONNER
eial paper receding Sl5.73S,00O and
SOS, 900, respectively. Il Ia
bought reccded $i0,656,00O and tota
bills declined s9S,942,000. Tota
Total deposits expanded s1,546,OO0
with the member banks reserve
credits declining $9.934,000. Fed.
eral reserve not ruculation re-
ceded $4.S05.00O. The ratio OF tota
reserves to net deposits and fedora
reserve note liabilities combined
rose to Sal from f5.7 per cent IN
the preceding week
Conditions In Chicago.
The statement of the Chicago In
stitution illustrates the less favor
able situation OF the western re-
serve banks. Gold reserves dropped
S52.412,0O0 as the result of transfers
through the gold settlement fund
which resulted in New YOrk's grea
Improvement. Total reserves de
clined $5l,7S2,00O, Loans increased
S3O,7Fi,000, those on governmen
obligations and on commercial papei
expanding s5,654,000 and S25,O9O,
600, respectively. Bills bought in
creased si.S2S.0OO and total bill'
expanded s32,57l.OOO. Total earn
ing assets increased S34,ts0, 900.
Total deposits declined SlO,3lS,
600. government deposits expanding
ES,95s. 900. but the member banks
reserve credits dropped Sl49ll, 600
Federal reserve note circulation de
clined S2.6O2,O0O, The ratio of tota
reserves to net deposit and fedora