Show NEWYORK NEV YORK BANKS weekly statement shows a heavy increase of loans I bans new york feb C G weekly bank statement reserve decrease uon 00 oo loans increase indrea se specie decrease 11 legal tender decrease deposits increase circulation decrease the banks now flow hold in excess of requirements the new boik financier says this reek the statement of the clearinghouse banks of new york tor for the week ending Febi february uary ath was 0 if unusually favorable character homing as it did an unexpected increase in loans oan after several weeks steady decrease decre itee in that item on january 2nd and the ioan loan 0 f the yew york bankers were which represented a gain ot of abut al 41 from the low point recorded november ath the loan according to the current statement Is the goan for the teck cek therefore re seems all the more t bur the th e only ly reason for the gain seems to be I 1 the on e employment ot of the large illume of money being used tit in the reo reorganization aga niza tion and transfers 0 of several of the northwestern anti and pacific roads these apers eions call ifor treat great sums of money and new york offered lit an advantageous market the other items in the statement reveal the effect of tho the heavy loan expansion the banks increased their deposits de P calls and decreased their cash holdings making a total change in fit these thee 0 to two 0 items of which corr corresponds ponds closely with the loan expansion it Is noticeable that the circulation ot of the banks shrunk shrank sharply bringing the total circulation down to a decrease of nearly since oc october to As this circulation has been retired largely within the past four weeks the decrease in cash holdings may be due in part to the th deposit of legal tenders with the treasury tress u ry to retire tho the hank bank notes tile tho or of currency for the past week have e been small and the decrease i in the e available cash held by bv the new york banks makes the question or of rates for money an interesting one it does not seem probable that the current decrease will have anything like a permanent influence on interest rates the 0 outcome te ome depending largely on the tit disposition Is position of the funds now withdrawn the cash reserve re arve of the banks la Is mill mil 1196 and the excess reserve does not indicate either a pressing demand for money or an incentive to higher rates |