Show THE BANKS THE BOND ISSUE the american comments on the and issue as follows at the time of the first bond issue in february the surplus reserve of the new york banks stood at of the paid into the treasury on account of the first issue of COO bonds the new york banks were called upon to cupply the larger portion and as a result the surplus reserve of the new york banks were re dared by the demands 0 their decoit ors for funds with which to subscribe for the new bonds from to the second bond issue caad in november 1691 tho surplus reserve of the york banks then stool at As at the time of the first iesue the for tins second of bonds largely depended for means of payment on heir deposits in the banks which they drew on to secure the funds to tender in payment the result the reserve fell y or to the surplus reserve of the new york banks stands at onla and they are about to bo called upon to provide means of payment tor an issue of bonds they hold in all but of cash against in february 1891 the date of the arst bond issue they are required by law to keep as a reserve in cash twenty anve per cent of their deposits and of their circulation to anable them promptly 0 o meet the ile maNds of their depositors and note holders this requires them to keep on liand at thia time of the if the reserve falls below this taisy to discounter make new bonns of iny kind except necessary lenc nals for they arc forbidden to do so when their falls below the legal twenty five per wilt alien w york banka bave at thia time then but which they are free to use as they like at th time of he arst two bond issues they were in position to supply their depositors with funds with which to subscribe for the bond cissne without infringing on their legal reserve but BOW they leave a surplus of they provide the funds in payment for the new boad issue of |