FINANCIAL REVIEW OF 1886. 



337 



minimum of the year. Thereafter, there was 

 a slight increase to the end of the year. Bank 

 loans on January 2 were reported at $339.- 

 909,800. The maximum of $359,685,300, was 

 reached March 20, and then came a reduction 

 to the minimum of the year, $337,307,600, 

 September 18. Speculative and commercial de- 

 mands then brought about an increase to $352,- 

 413,500 on December 11. The average de- 

 posits were at the maximum, $396,080,800, 

 February 13, and at the minimum, $345,708,- 

 500, September 11. The advance to $360,981,- 

 400, December 4, was largely due to the aug- 

 mented loans, and to the increase in the cash 

 held by the banks. The clearings of the asso- 

 ciated banks of the city showed a daily aver- 

 age at the beginning of the year of $121,617,- 



439. Then followed a fall to $96,728,279, 

 March 13, and recovery to $130,429,617 on the 

 following week, a decline to $80,922,591, Sep- 

 tember 4, and a reaction to $165,589,361 De- 

 cember 18, which was the maximum of the 

 year. 



The Comptroller of the Currency reports the 

 failure of eight national banks, having an ag- 

 gregate capital of $650,000, during the year 

 covered by his communication to Congress, 

 and four of the suspensions were caused by 

 embezzlements. The condition of the New 

 York Clearing-House banks, the rates for 

 money, exchange, and silver, and prices for 

 United States bonds on or about Jan. 1, 1887, 

 compared with the preceding two years, are 

 shown in the following summary : 



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

 1886, and at the end of the year : 



Foreign Exchange. The imports of merchan- 

 dise for the twelve months ending Dec. 31 

 1886, were $75,548,537 above those for the 

 corresponding period in 1885, and the exports 

 of domestic and foreign merchandise for the 

 same time were $25,039,868 more. The excess 

 of merchandise exports over imports for 

 twelve months of the calendar year was $49,- 

 872.456 against $100,381, 125 forthe same time 

 in 1885. There was an excess of exports over 

 imports of specie and bullion of $9,793,257 for 

 twelve months ending Dec. 31, 1886, against 

 $3,279,720 for the same time in 1885. The 

 excess of exports over imports of merchandise 

 and specie amounted for the above-named pe- 

 riod in 1886 to $59,665,71 3, against $ 103,660,845 

 for the corresponding twelve months in 1885. 

 Foreign exchange was firm at the beginning 

 of the year, under the influence of an invest- 

 VOL. xxvi. 22 A 



ment demand for long sterling and a scarcity 

 of commercial bills, and by the middle of 

 January $749,000 gold had been shipped to 

 Europe. Rates were maintained at the gold- 

 exporting point throughout February and until 

 the middle of March, the supply of long ster- 

 ling being steadily absorbed by investors, and 

 the arbitrage houses buying short bills and 

 cable transfers to remit for stocks sold on 

 European account, and making up deficiencies 

 by shipping gold. The inquiry became less 

 urgent after the 15th of March, the shipment 

 of about $9,000,000 up to that time apparently 

 satisfying the demand, and the market began 

 to be more liberally supplied with commercial 

 bills drawn against cotton and breadstuffs. 

 Immediately afterward, however, there was an 

 urgent inquiry for gold for France, prepara- 

 tions there being made for floating the new 



