326 



FINANCIAL REVIEW OF 1884. 



This stood at $62,877,000 at the opening of 

 the year, rose to $77,866,200 by February 23, 

 and fell to $55,997,100 by May 3. The ex- 

 ports of gold to Europe during the three 

 months ending with the close of April amount- 

 ed to about $32,000,000, indicating the ab- 

 sorption of the $21,869,100 drawn from the 

 banks, besides part of the supply that came 

 from the Treasury in this interval. On the 8d 

 of May the bank return showed an average of 

 $341,990,500 loans, $55,997,100 specie, $28,- 

 112,800 legal tenders, $333,215,600 deposits, 

 and $14,417,500 circulation. On May 24 it 

 indicated a loss of $28,812,500 loans, $10,- 

 487,100 specie, $6,086,100 legal tenders, 

 $36,640,300 deposits, $100,700 circulation, 

 and $7,413,125 surplus reserve. From this 

 point of extreme depression the recovery was 

 gradual, and by December 6 the statement 

 showed an average of $288,044,800 loans, 

 $86,494,600 specie, $38,270,400 legal tend- 

 ers, $329,870,200 deposits, $11,587,200 cir- 

 culation, and the unprecedented sum of $42,- 

 297,450 surplus reserve. The restoration of 

 confidence, so far as the associated banks were 

 concerned, was speedy, as is indicated by the 

 return of cash and deposits after the 24th of 

 May. This was materially if not wholly aided 

 by the action of the banks in the crisis. On 

 the announcement of the suspension of the Met- 

 ropolitan National Bank, May 14, the Clearing- 

 House Association was convened and arrange- 

 ments were made to issue loan certificates for 

 Clearing-House purposes, on the basis of 75 

 per cent, of the assets of the banks, the object 

 being to unite all the institutions so as to pre- 



vent runs upon individual bank's, and to enable 

 them to settle their balances with these cer- 

 tificates instead of with cash. The total issue 

 between May 15 and June 6 was $24,915,000, 

 and all, except $5,290,000, which were held by 

 the Metropolitan National Bank, were retired 

 by October 3. The issue of certificates and 

 the united action of all the banks accomplished 

 the desired object, and the excitement incident 

 to the panic rapidly subsided. The collaterals 

 turned over by the Metropolitan Bank as se- 

 curity for its certificates consisted in part of 

 real estate, which was eventually sold, and in 

 part railroad mortgages and chattels belonging 

 to the president of the institution. The latter 

 have not been entirely converted, and some 

 time may elapse before all the certificates issued 

 to this bank can be retired. It should be stated 

 that of the eighty-two Clearing-House banks 

 only twenty took out certificates, and several 

 did so solely as a precautionary measure. 



The discount rates for prime commercial 

 paper were 6 to 4 per cent, in January ; 5 to 

 4 until the middle of May ; 6^ to 5 to the end 

 of July; 6 to 5 for the ensuing three months, 

 and 6 to 4 for the remainder of the year. 

 Single-name paper was more freely accepted 

 during the autumn and early in the winter, 

 but banks gave preference to that made solely 

 in the way of trade. 



The condition of the New York Clearing- 

 House banks, the rates for money and exchange, 

 and prices for United States bonds on or about 

 Jan. 1, 1885, as compared with the preceding 

 two years, are shown in the following sum- 

 mary : 



Appended is the Clearing-House statement of totals at the beginning of each quarter of 

 1884, and at the end of the year: 



