Show The Bank Statement New York Dec 7 The statement of clearing house hoube banks for the week shows that the banks hold less than the requirement of the 25 26 per cent rule This Is an Improvement of In Inthe Inthe inthe the proportionate cash reserve as com compared compared compared pared with last week The statement fol to follows follows lows Loans V decrease Deposits decrease Circulation Increase 00 I Legal Lebal tenders increase 1 V Specie Increase Reserve Resene Increase 46 1100 Reserve required decrease Deficit decrease Ex United States deposits decrease The Financier will say The associated banks of the City of New York issued an exceptionally favorable statement un under under under der date of Dec 7 the increase in the reserve resene requirement toward the 25 per percent percent percent I cent minimum having been which brought the deficiency down to as against reported on Nov 16 last The gain of over represents the recuperative powers of the banks in the face of conditions which are not likely to occur In a long period The banks gained in cash for the week or a little less than had been anticipated The known movements In Inthe inthe the he Jast ast six days indicated a loss of to the interior which was more than counteracted by the gain of of new gold Imported and from other sources One feature of the state statement statement statement ment which attracted attention was the decrease of in loans and while It t may be true that operations of the previous week were carried over Into the current statement it Is not no to be Ignored that hat the pawing power of borrowers is isn In n evidence here and that the reduction represents real cancellation of ot maturing obligations even een In the face of rising stock tock speculation In brief the exhibit confirms the belief that normal condi conditions tons ions have been resumed The reduction i iii i deposits was and this lessened reserve reserve requirements by and over The he deposits of the government in New NewYork NewYork NewYork York banks rose last week wf ek to a total otal of as an incident to bond payments etc and If this total Is de deducted deducted ducted from the net deposit Item and the I reserve figures on the basis of commer commercial commercial cial deposits as Is legal It can be shown i that the associated banks are very Ut Uttie i i tie tle below the 25 23 per cent requirement 1 V To put the matter In another way tha thai th i banks are ar carrying a reserve against de deI deposits e I posits other than those of the govern government government government ment of between 22 i and 23 per cent The j j collection of the national banks In this I city rose last week bringing the I total to a gain of since the middle of October With the contin continued continued I ease in the situation it is almost certain that the present reserve stringency strIngency stringency gency will WI be decreased largely week by week In this connection It is Interesting to note that the associated banks were below their reserve requirement at this time last year ear and two years ears ago aso V |