Quit

For nearly 75 years, ever since its organization, the New York Clearing House* has issued a weekly statement showing the financial condition of New York member banks; showing, among other things, whether their reserves are above or below legal requirements. Last week it quit giving out statements, ostensibly because the Federal Reserve Bank's reports had made them superfluous. But loud was the clamor. Ill-concealed was the suspicion of many a Wall Streeter that the suppression of the Clearing House statements was prompted by a desire to conceal the banks' lack of sufficient reserves and hence to give a false sense of security to the speculative element of the financial community. Indeed a deficit in reserves had been shown in all but two of the first ten weeks of 1928, an altogether unprecedented situation.

*A check drawn on Bank A and deposited in Bank B is sent to the Clearing House.