The Commercial & Financial Chronicle; A Weekly Newspaper Representing the Industrial Interests of the United States Volume 44 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1887 edition. Excerpt: ...In fact, when the month of March opened it was supposed that gold exports could not long be delayed. It will be remembered that sight rates had been as high as 4 89% the last week in February. But ever since then exchange has been weak and variable. While money is so cheap in London, and holders of stocks are able and continue to borrow there, these conditions will remain. A President of a Philadelphia bank in referring to our article of last week with reference to changes in the law as to bank reserves, asks for information on a further point. He states that the reserve cities outside of New- York have heretofore been allowed to act as reserve agents for banks outside of the reserve cities and at the same time keep one-half of their reserve in banks in New York;" and his question is whether if banks in such reserve cities now vote to become reserve cities like New York, can they still keep the same reserve in New York as heretofore." When we wrote last week we said nothing on this point, but assumed for the time being that the question here raised would be answered in the affirmative, although the natural inference from the amendment is that such was not its intention. But the change when interpreted in that way was so radical and the second section of the amendment apparently so uninviting that we accepted the view that these new central reserve cities could keep onehalf of their reserve in New York as heretofore. Since then, having seen it stated that Comptroller Trenholm had sent notice to St. Louis banks deciding that this could not be done, we telegraphed the Comptroller whether such a decision had been made, and he replies that the law seems to preclude...