New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-18
Till Money Shoso,,

be covered by cash reserves.
Till Money ShosUn
The second item in the tabulation
shown above, that of "Cash in Own
Vaults: Members Federal Reserve
Banks" is gratuitous one. 1t is
not called for by law and is not de-
manded by the Clearing House AS
ISOLATION. 1t merely is a contribu-
ton to financial knowledge. What
it represents is "till money" which
is to say, the funds which the men,
Der banks keep on hand to meet the
demands made upon them for cur
rency. Actually, it is sort of Sec
ondary reserve, for most of it is
gold or lawful money" which might
in an emergency, be deposited with
the Federal Reserve Bank to i'm
prove the legal reserve position. In
the old days this was part of the
legal reserve, but the Federal re-
quirement which demands that all
legal reserves be kept on deposit
with the Federal Reserve Bank has
changed it's status.
The other items in this display
are interesting, but it hardly may be
said that they are important.
A bank statement of very great
Importance, but one little under
stood and hardly appreciated at all,
is that issued by the Federal Re-
serve Board each week, showing the
consolidated condition of 812 banks
in leading cities throughout the
country. This statement includes
the returns Of seventy New York
city banks and ffty-one Chicago
banks, and it shows in detail the
loans made by these institutions
secured by government obligations,
secured by stocks and bonds, and
all other loans and discounts. This
statement is especially interesting
IN so far as it gives what may be re-
garded as a very accurate indica-
ton of the assistance which banks
are rendering to the stock market.
Not all of the total advanced
against stocks and bonds may be re-
garded as "stock market loans" but
q very large percentage of it may
be assumed to be. This is practi-
cally the only statement, outside of
the periodic reports by the Con-
troller Of the Currency, which gives
this information, and this one fact
raises the statement to an insportant
position.
The reports which the Comp
troller of the Currency issues,
usually five times year, are vaiu-
able for abstract study and historic
reference, but usually they are so
late in coming out that they show
virtually nothing so far as current
conditions are concerned. 1t is in
teresting, Of course, to note the
changes over the years, and for
those who are concerned with fnan-
cial history these displays are valu-
able. But it is assumed that the
reader OF the financial pages either
has passed beyond the textbook
stage or is not concerned with it,
and for him the Federal Reserve.
statements, the reports issued by the
Clearing House Association and the
weekly summary of the 812 selected
banks are of prime Importance, and
he will do we'll if he concentrates
his attention upon these.
The annual report which is COM
piled by the association of State
Banking Superintendent, usually of
June 80, is another which has con-
siderable value for broad, general
study, but here again the fact that
it requires several months to col
lect and present the figures robs it
II what may be called current value.
IS distinguished from academic