The New York herald., 1921-01-31
CUT OF TOWN BANK
LOANS TOUCH PEAK
borrowings From Local Insti-
tutions by Correspondents
Break Record.

Loans OF many local banks to their
OFT Of town bank correspondents have
ached recently the highest figures In
taeir experience. according TO the re-
yfsw Of the Reserve Bank of New York
for January. In other words. loans
leuidated In districts outside OF New
-ork have been transferred apparently
T. banks in this district. The extent Of
the liquidation or movement OF commodi-
tis In the borrowing districts is indl-
cited by the Fact that eight reserve
tanlSs which in October were In debt
20 the other four reserve banks to the
I; rount Of $267, 100000 had reduced the
amount by January FL to s73.000,000.
On the subject of credit conditions the
review said:
The changed state Of mind which tho
rev year has brought has coincided with
IN improvement In credit conditions.
Leans Of the seventy-two member banks
ia New York city which report weekly
.'ecreased between December II and
January IA by s174.ooo.oo0. or per
cent.. and the loans of the S2e member
banks In the principal cities throughout
the country, including New York city.
IN the same period decreased $3.50, ,000.-
the Reserve Bank Of New York from De-
cernber 23 to January 81 decreased
s72.000.000. and those OF all reserve
banks. including New York. decreased
$S40. 100000. The reserve percentage of
the reserve system Increased from 45.l
per cent. on December 23 to ass per
cent on January 81. The reserve note
circulation decreased $3.50. 900, OF
about per cent
Whether these reductions of loans
and notes are merely seasonal II Is inn
n afQ n fo xrft
we have no standard with which to COM
pare them. Pre-war experience fs Of lit
tie value because the reserve system was
not then In existence and experience
since the war began Is much confused by
the financial exigencies Of the period. 1t
Is impossible. therefore, to estimate to
what extent these reductions In the vol
ume or credit reflect belated adjust
mcnt or the volume of credit to reduced
commodity prices"
Hubstantiai increases In savings bank
o"'osits arc reported in the banks re-
". W. which said In part: THE aggre-
q deposits OF thirty-scven of the iarg-
sst savings banks In New York State
Increased 10 per cent. between January
~ 1870, and January 10, 1871, according
T. reports received by this bank. The
rae OF increase is slightly greater than
th1 ratio OF gain reported by these same
b AXIS for the year 1s1oNand nearly four
& les ns great as the rate OF increase
d ing 1918 The list of thirty.seven
b ,les represents more than GO per cent.
c the savings bank resources in New
* State. LII past years deposit in
c ascs in these banks have been closely
f. lcative of the rate of increase In
Il the savings institutions OF the State
Tho following table shows tho com
r -ative figures for deposit balances at
( periods
20.
Jan. 10. 1870. Jan. 10, 1921. Inc.
I yer Mani. s342.745.soJ esse.0o2.22s 4b
.ctory dis
City. 'ss.oo2,2zi so2. .o5e. .a7o ia.5
q rldc New
ork City. e7i.2c5,5si 4o2. .osi .ars go
T,,al ... 81 .4eo 1851 .5ss ~ .s52. 1881 Io.i
The Increase In deposits has been
e ecialiy rapid in banks where a con-
ri srable proportion of the depostors
a manual workers. PARTICULARLY note
" THY IS the large gain in the deposits
q important banks located in the manu-
O. curing sections or outiving residential
y lions or the five boroughs of New
4, city Deposit balances In large
T. Of Brooklyn, The Bronx ard
nna increased from l5 to i5 per
u tho year. Deposits of belnks in
q Industrial centres OF Manhattan and
O. ems increased from 10 to over 10 per
cert. A similar tendency TO large in
cieases was noted generally In manu-
a. turing cities throughout the State
where manual workers predominate