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ANNUAL REPORT OF THE

Comptroller of the Currency
TO THE SECOND SESSION OF THE SIXTY-FOURTH
CONGRESS OF THE UNITED STATES

DECEMBER 4, 1916

(IN TWO VOLUMES)

VOL. 1

WASHINGTON
GOVERNMENT PRINTING OFFICE
1917

TREASURY DEPARTMENT,

Document No. 2789.
Comptroller of the Currency,
II

CONTENTS.
Page.

Decentralization of banking capital
National banks, the backbone and substance of Federal Reserve System
Resources and deposits of national banks exceed all previous records
Enormous increase in number of depositors in national banks
Comparison of resources of our national banks with those of the banks of issue
of foreign nations
Growth of national banks in the West and South
National banks increase in numbers as well as in capital and resources
Wider diffusion of banking wealth
Conditions governing the grantingof new charters
.
Reduction in number ana liabilities of national banks failing since inauguration of the Federal Reserve System
Unprecedented growth of national banks during the past fiscal year
Percentage of principal items of assets and liabilities of national banks
Bank reserves
Desirability of anticipating time when reserves shall all be carried with Federal
reserve banks or in vaults
__
Cash reserves and balances with reserve banks
_
Acceptances aiding our foreign trade
One year's growth of all reporting banks and trust companies in United States..
Abatement of usury
,
To prevent bank failures
Legislation recommended:
To prohibit officers of banks from borrowing from their own banks
To prevent loans to directors except with the approval of the board
To limit direct and indirect loans to one individual, firm, or corporation...
To provide suitable penalty for making excessive loans
To authorize comptroller to bring proceedings against directors for losses
sustained by bank through violation of national-bank act
Authority for removal of directors guilty of persistent violations of nationalbank act
To prevent delays in taking directors' oaths
Establishment of appropriate penalties for violations of law and regulations.
Amendment to provide that suits against usurers be brought by the Department of Justice
To authorize special interest charges for small loans
To prevent or limit overdrafts
To limit interest paid on deposits
Limitation of deposits to eight or ten times capital and surplus. •
Amendment to District laws to prevent "wildcat" banking
To require officers and employees to give surety bonds
To require certificates of deposit to be signed by two officers
To prevent erasures on the books of a bank
Standardization of by-law^
Remove limitation on denomination of national-bank notes
Rechartered banks should be allowed to use bank-note plates of original
bank
Engraved signatures for national-bank notes
To authorize national banks to establish branches in the United States..
To permit branch banks in Alaska and insular possessions
Provision for the consolidation of national banks
Further amendments recommended:
To provide a penalty for making false financial statements for the purpose of
obtaining credit from national banks
To provide punishment for breaking and entering a national bank for the
purpose of theft or robbery
To limit investment in bank building
To authorize United States Treasurer to sell bonds securing circulation 30
days after bank goes into liquidation

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CONTENTS.
Page.

New law authorizing banks in small towns to negotiate real-estate loans and
place insurance
New banks chartered and charters extended and reextended
Extension of charter of the Riggs National Bank of Washington
Fine imposed for bank's refusal to furnish data concerning "dummy" and
other loans to its officers, etc
Court's decision completely sustained comptroller's right to receive every
report demanded
Officers and directors sign letter admitting comptroller's rights and pledging obedience to the law and regulations in future
Bank officers convicted of criminal violations of law during fiscal year
National-bank examinations
Chief examiners
.
Supervising national-bank examiner
'.
Field examiners
Report of examination furnished national banks
The condition of national banks at date of each call during the report year
Loans and discounts
Classification of loans and discounts
Amount and classification of loans by national banks in the central
reserve cities, etc
Loans by national banks in reserve cities, etc
Loans by national banks in New York
Loans maturing in 90 days or less
Overdrafts.
United States bonds
Other bonds, securities, etc
Stocks
%
Investment securities of national banks classified
Banking premises and other real estate owned
Due from banks
Exchanges for clearing houses
Bank circulation
Specie and other lawful money
Liabilities of national banks...-..,
Capital, surplus, and undivided profits
Circulation
.:
,
Due to banks
Individual deposits
Bonds and money borrowed
Reserve
Reserve held in each Federal reserve district
Methods of calculating reserve
Relation of capital to deposits, etc., of national banks
Changes in loans, bonds, cash, and deposits in national banks
Development in national banking
Reserve required and held by national banks together with the excess or
deficiency 1913-16
Productivity of loans and bond investments of national banks
Earnings and dividends of national banks
Organization of national banks
Banks chartered subsequent to the passage of the Federal reserve act
National banks organized and closed, 1863 to October 31, 1916
National banks organized during the last year, and since 1900
State banks converted into national
Changes of title and location of national banks
Foreign branches of national banks
*
Voluntary liquidation of national banks
Failures and suspensions of national banks
Causes of failures of national banks
Interest-bearing debt of the United States, national bank circulation, etc
Monthly range of prices for, and investment value of, United States bonds.
Banks' investments in United States bonds
Federal reserve bank investments in United States bonds
Deposits and withdrawals of United States bonds

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CONTENTS.

National bank circulation
National bank circulation redeemed
Increase or decrease of national bank circulation
Denominations of national bank circulation
Vault account of national bank circulation
Profit on national bank circulation
Taxes on national banks, redemption charges, examiners' fees, and expenses of
the currency bureau
Transactions of clearing-house associations
Rates for money in New York
Discount rates of the Federal reserve banks
Sterling exchange
State, savings, private banks, and loan and trust companies
Summary of reports of condition of banks, other than national
State banks
Mutual savings banks
Stock savings banks
All reporting savings banks
Loan and trust companies
Private banks
Reports of condition of all banks in the United States
Banking power of the United States
Summary of the combined returns from national and other banks
Banking resources and liabilities by States
Statement of all banks
Growth of banking in the United States since 1863
Money in all reporting banks
Distribution of money in the United States
Individual deposits in all reporting banks
State and private bank failures
Banks ana banking in the District of Columbia
Building and loan associations in the District of Columbia
Building and loan associations in the United States
United States Postal Sayings System
Savings banks in the principal countries of the world
Federal reserve banks
Federal Reserve notes
Federal Reserve issues and redemption
Federal Reserve Bank currency
Legislation by the present Congress
Amendments to Federal Reserve Act
Internal revenue acts
Issues of gold certificates
Interlocking directorates, etc
Bills of lading
Federal farm loan act
Decision of Federal Farm Loan Board determining Federal land bank
districts and location of banks
Philippine National Bank
Digest of National Bank Decisions
Authority of liquidating committee of a national bank
Liability of directors for false statements
Salaries of bank officers and clerks
Recommendation to banks to furnish life insurance to employees equal to one
year's salary to each employee
Expenses of operation of currency bureau
Foreign securities owned by our national banks
Conclusion
"To see ourselves as others see u s "
Increased work of the office

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CONTENTS,
EXHIBITS.
Page.

A.—Interlocutory decision in the Riggs Bank case
B.—Decision of Supreme Court of District of Columbia in Riggs Bank case...
C. —Decision of the Comptroller of the Currency on the application for a renewal
of the charter of the Riggs National Bank of Washington, D. C
Violations of law and unlawful practices
Stock brokerage business
Reprehensible practices, including "dummy " speculative accounts
Loans to officers and employees
Borrowing by officers when reserves were deficient
Unlawful stock investments
Failure to maintain reserve
Failure to file dividend reports
Real estate loans
Refusal to furnish special reports and denial of authority of the comptroller's
office.
Decision of court upholding comptroller's authority. *
D.—Number of officers and employees of national banks
E.—Salaries of officers and employees of national banks
F.—Salaries paid president and cashier
G.—Number of banks that pay fees to each member of executive committee
H.—Number of depositors in national banks in 1916 and 1910
I.—Number, capital, and surplus of national banks by groups in central reserve
cities, etc
J.—Outside loans by national banks to nondepositors
K.—Loans secured by warehouse receipts, farm loans, loans made for correspondents
L.—Amount of loans by national banks to national and other banks in the same
and in other Federal Reserve districts
M.—Loans made by national banks to other banks and trust companies.......
N.—Money borrowed by national banks in the same Federal Reserve districts
and also from banks in other Federal Reserve districts
From banks in the same Federal Reserve district
From banks in other Federal Reserve districts
O.—The Federal Farm Loan Act

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REPORT
OF THE

COMPTROLLER OF THE CURRENCY.
TREASURY DEPARTMENT,
OFFICE OF THE COMPTROLLER OF THE CURRENCY,

Washington, D. 0., December 4i 1916.
SIR: I have the honor to submit herewith the Fifty-fourth Annual
Report of the operations of the Currency Bureau for the 12 months
ended October 31, 1916, as required by section 333 of the Revised
Statutes of the United States.
Throughout the twelve months period covered by this report this
country has experienced the greatest prosperity it has ever known.
The activity manifested in virtually every occupation and in every
kind of industry and in all sections has been unprecedented.
This tremendous business expansion, together with advancing prices
for commodities and for labor, has evoked the use of hundreds of
millions of dollars of additional capital and accommodations from
the banks.
In past years, under inadequate and unscientific banking and currency methods an,d systems, a great increase in business activity has
almost invariably produced a money scarcity, has occasioned high
interest rates, and sometimes has precipitated panics; but during
the past 18 months of unexampled prosperity we have enjoyed,
throughout the length and breadth of the land, the lowest money
rates this country has ever seen.
No fair-minded man who h^as studied financial and business conditions for the past two or three years can fail to see in how large a
measure these deeply gratifying results are to be credited to the
operations of our new Federal Reserve System, which was inaugurated with the opening of the 12 Federal reserve banks November 16,
1914, a little over two years ago.
DECENTRALIZATION OF BANKING CAPITAL.

The concentration and congestion of capital in a few great cities
which in the past have so frequently bred panics—sometimes as a
natural result of unnatural conditions, and sometimes produced artificially, but always interfering with the healthy growth of business
and checking legitimate enterprise—have been largely relieved, and
banking capital is to-day more widely and more equitably distributed
over the country than ever before in this generation.
Our bank reserves are now being scientifically utilized. Banks
and business men, even in the midst of a world cataclysm, are conducting business with a greater sense of security and of confidence

REPORT OF THE COMPTROLLER OF THE CURRENCY.

than at any time in our history as a people, and they no longer live in
constant fear of the recurrence of the money flurries and panics which
have, in the past, at such frequent intervals visited us with disastrous
results. Business men, large and small, in the smaller cities and also
in towns and rural districts, as well as in the centers of wealth, are
now enabled to obtain capital for the requirements of business on
terms more favorable than ever experienced in the past; more liberal
than many thought to be possible.
NATIONAL BANKS THE

BACKBONE AND SUBSTANCE
RESERVE SYSTEM.

OF FEDERAL

Although the Federal reserve act provided that State banks (with
the requisite minimum capital) as well as national banks, might become members of the Federal Reserve System, it is the national banks
which, as yet, principally compose the system, and through whose
cooperation these magnificent results, which have meant so much,
not only to business men, but to the people of our country generally,
have been achieved.
On November 17, 1916, just two years after the inauguration of
the system, the membership of the Federal Reserve System was
7,614, with 15,980 million dollars of resources; 7,577 of these members
were national banks, with resources aggregating 15,513 million
dollars.
During the decade preceding the inauguration of the Federal
Reserve System the deposits in State banks and trust companies
had shown a somewhat greater increase than the deposits of the
national banks, but with the beginning of the Federal Reserve System these conditions have been reversed, and the records now show
that from June, 1913, to June, 1916, the deposits of our national
banks increased more than 33^ per cent, while the deposits of State
banks and trust companies for the same period increased only about
29 per cent.
The reports showing the condition of all national banks are compiled six times a year; but a compilation showing the condition of all
State banks and trust companies throughout the country is only
prepared once each year by the Comptroller's office in cooperation
with the banking departments of the several States, and this statement is usually compiled about July 1 of each year.
RESOURCES AND DEPOSITS OF NATIONAL BANKS EXCEED ALL PREVIOUS
RECORDS.

On November 17, 1916, the national banks of the United States
reported the largest resources and the largest deposits ever shown
at anytime in their history. The increase in total deposits reported
by national banks for the year from November 10, 1915, to November 17, 1916, exceeded the greatest increase ever reported for any
previous year and amounted to 2,332 million dollars. For the two
years from October 31, 1914, to November 17, 1916, the resources of
all national banks increased 4,028 million dollars'—over 35 per cent—
or from 11,492 million dollars to 15,520 million dollars. For the 10
years from 1904 to 1914 the resources of the national banks of the
United States had increased only 4,295 million dollars, or from 7,197
million dollars to 11,492 million dollars, an increase for the period of

REPORT OF THE COMPTROLLER OF THE CURRENCY.

about 60 per cent, or an average of 6 per cent a year for the 10 years.
It is thus seen that the increase for the past two years, averaging
about 18 per cent, was about three times as great as the yearly
average for the preceding 10 years.
In April, 1906, the total resources of all the national banks of this
country were 7,670 million dollars. On November 17, 1916, the
resources, as shown above, were 15,520 million dollars, an increase of
more than 100 per cent in the last 10 years.
ENORMOUS INCREASE IN NUMBER OF DEPOSITORS IN NATIONAL BANKS.

On June 30, 1910, the number of depositors in the national banks
of the United States was reported at 7,690,468. On May 1, 1916,
the number had increased to 14,288,059, the increase being 6,597,591,
or 86 per cent.
The resources of the national banks on November 17, 1916, exceeded the total resources of all reporting State banks, savings banks,
private banks, and loan and trust companies throughout the United
States at the time of the beginning of the Federal Reserve System,
about two years ago.
COMPARISON OF RESOURCES OF OUR NATIONAL BANKS WITH THOSE OF
THE BANKS OF ISSUE OF FOREIGN NATIONS.

It is also worthy of note that the aggregate resources of the national
banks of the United States at this time exceed by about a billion
dollars the combined resources of all of the great banks of issue of all
of the principal countries of the world, including the Bank of England,
the Bank of France, the Bank of Russia, the German Reichsbank,
the Bank of Italy, the Bank of Spain, the Bank of the Netherlands,
the Bank of Denmark, the Swiss National Bank, and the Imperial
Bank of Japan, according to the latest reports received from these
foreign banks.
GROWTH OF NATIONAL BANKS IN WEST AND SOUTH.

As an indication of the diffusion and increase of the banking
wealth of the country attention is called to the fact that the resources
en November 17, 1916, of the national banks in the Southern States,>
Middle Western States, Western States, and Pacific States, exclusive
of the Eastern and New England States, were considerably greater
than the total resources of all the national banks througnout the
entire United States as late as 1906. The increase in the resources
of the national banks of this country for the first two years under
the operation of the Federal Reserve System has been more than
twice as great as the total increase shown for the five-year period
preceding the inauguration of the new system; that is to say, from
November 16, 1909, to October 31, 1914.
NATIONAL BANKS INCREASE IN NUMBERS AS WELL AS IN CAPITAL
AND RESOURCES.

From the opening of the Federal reserve banks, November 16,
1914, to November 15, 1916, the Comptroller of the Currency issued
charters to 264 new national banks, with aggregate capital of

REPORT OF THE COMPTROLLER OF THE CURRENCY.

$16,109,500. During the same period 189 national banks increased
their capital to the extent of $27,117,700. The aggregate number
of new charters and banks increasing their capital was, therefore,
453, and the aggregate new capital authorized was $43,227,200.
During the same period 143 banks (other than those consolidating
with other national banks) went into liquidation, their aggregate
capital being $11,873,000. Thirty-four banks reduced their capital
in the same time to the extent of $2,735,000, so that the total number of banks liquidating or reducing their capital (other than those
consolidating with other national banks) was 177, with a capital
reduction of $14,608,000. In addition to the above, during the same
time there were 27 national banks placed in charge of receivers,
representing an aggregate capital of $2,635,000. Of this number, 8,
with aggregate capital of $530,000, have been restored to solvency.
The records thus show that since the opening of the Federal Reserve
System, excluding the banks consolidating with other national banks,
the number of new banks chartered plus the number of existing
national banks which have increased their capital exceeds by 257 the
number of national banks which have gone into liquidation or which
have reduced their capital, and the capital of these newly chartered
banks, plus the increased capital of existing banks, exceeds by
$26,514,200 the capital of all national banks which have gone into
liquidation or have reduced their capital other than those consolidating with other national banks.
In addition to the new banks chartered as set forth above, this
office had on hand at the end of the report year, October 31, 1916, 46
applications for the organization of national banks which had been
approved by the Comptroller, and 87 applications for charters for
new banks which were then under investigation to determine whether
or not approval should be granted.
These facts furnish a conclusive reply to suggestions which have
been occasionally made that there has been any general tendency
toward the withdrawal of banks from the national banking system.
WIDER DIFFUSION OF BANKING WEALTH.

The healthy distribution of the money and banking resources of the
United States which has been brought about under the Federal Reserve System is being manifested in many ways.
Formerly the 100 largest national banks in the United States were
concentrated principally in a comparatively few financial centers.
To-day the big banks are distributed through 22 States and in 33
cities, embracing every section of the country.
The 100 national banks with the largest resources as shown by the
call of November 17, 1916, all have resources in excess of $20,000,000,
with one exception, the exception being one of the Chicago banks.
The States of Oklahoma, Alabama, Louisiana, Virginia, Washington, New Jersey, and Oregon each contain 1 of the 100 largest banks.
Texas, Nebraska, Maryland, Michigan, Indiana, and Wisconsin
each contain 2 of these banks; Colorado has 3; Ohio, Minnesota, and
Massachusetts each have 5; California and Illinois have 7 each;
Missouri has 8; Pennsylvania has 16; and New York State has 25.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Between September 12, 1916, and November 17, 1916, the resources
of the 100 largest banks increased $550,000,000, or nearly 9 per cent.
Outside of the central reserve cities the large banks which showed
increases of as much as $5,000,000 each in deposits in this period were
those located in Dallas, New Orleans, Buffalo, Kansas City, Philadelphia, San Francisco, Cleveland, Pittsburgh, and Boston.
Among the 100 largest national banks there were only 5 which did
not show an increase. Three of these banks showing reductions were
located in New York and 2 in California. The largest reduction
shown by any one of these 5 banks was less than $2,250,000.
The largest percentage of increase was shown by a bank in Texas,
which increased over 33 per cent, or over $6,000,000.
CONDITIONS GOVERNING THE GRANTING OF NEW CHARTERS.

In weighing and passing upon the various applications received
for charters for new national banks, this office endeavors to give full
consideration to all factors entering into each proposition. Among
others are: First, the general character and experience of the promoters and of the proposed officers of the new bank; second, the
adequacy of existing banking facilities and the need of further banking capital; third, the outlook for the growth and development of
the town or city in which the bank is to be located; fourth, the
methods and banking practices of the existing bank or banks, the
interest rates which they charge to customers, and the character of
the service which as quasipublic institutions they are rendering to
their community; fifth, the reasonable prospects for success of the
new bank if faithfully and efficiently managed.
In cases where there seem to be differences of opinion as to whether
the community is actually in need of additional banking facilities, and
when the principal or only opposition to the establishment of the new
bank comes from those interested in the existing bank or banks, and
there is a pronounced desire from responsible citizens for a new bank,
the disposition of this office generally is to resolve the doubt in favor
of the community and grant the charter.
The records, as heretofore stated, show that during the past year
charters were granted for 122 new national banks, while 16 other
applications for charters were refused.
REDUCTION IN NUMBER AND LIABILITIES OP NATIONAL BANKS FAILING
SINCE THE INAUGURATION OF THE FEDERAL RESERVE SYSTEM.

The Federal Reserve Board was organized August 12, 1914, and
the Federal reserve banks opened for business in November of the
same year. During the fiscal year ended June 30, 1914, 19 national
banks failed with liabilities aggregating $39,952,000.
For the next 12 months ended June 30, 1915, including 7£ months
of the operation of the new Federal Reserve System, there were 16
national bank failures with liabilities aggregating $15,972,000.
For the 12 months ended June 30, 1916, the first complete fiscal
year under the new system, there were 15 national-bank failures with
aggregate liabilities of only $3,838,415.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

These figures thus show that for the first fiscal year under the
operation of the new Reserve System the liabilities of the national
banks which failed amounted to less than one-tenth of the liabilities of
the national banks which failed in the year immediately preceding the
inauguration of the system. Furthermore those banks which failed
during the past 12 months were generally small concerns whose
failures were traceable directly to criminal acts of mismanagement,
defalcation, embezzlement, etc., which it is practically impossible to
eliminate entirely under any banking system, although under
improved methods of bank examination these cases are now being
reduced to a minimum.
Of the 15 banks which failed during the 12 months ended June 30,
1916, with liabilities of $3,838,415, two have resumed operation, 5
more already have paid, or are expected to pay, depositors 100 cents
on the dollar, and the remainder are expected to pay from 65 per cent
to 95 per cent of their liabilities.
UNPRECEDENTED GROWTH OF NATIONAL BANKS DURING THE PAST
FISCAL YEAR.

The following comparative statement shows the condition of all
national banks as of November 17, 1916, as compared with November
10,1915:.
Statement showing resources and liabilities of national banks of the United States on
Nov. 17, 1916, as compared with Nov. 10, 1915.
RESOURCES.
[In thousands of dollars.]
Comparison.
Nov. 17,1916. Nov. 10,1915.

Increase.
Loans and discounts1
Overdrafts
.
United States bonds
Other bonds, securities, etc
Stock other than Federal Reserve Bank
stock
Stock of Federal Reserve Banks
Banking house
Furniture and fixtures T
,
Other real estate owned
Due from approved reserve agents
Due from banks and bankers
Exchanges for clearing house
Other checks on banks in the same place
Outside checks and cash items
Notes of other national banks
Federal reserve bank notes and Federal
reserve notes
Lawful reserve In vault and with Federal
reserve bank

.. r

Redemption fund and due from United
States Treasurer
Customers' liability under letters of credit...
Customers' liability account of acceptances..
Other assets
.
Net

Total

. .

8,345,784
9,317
724,473
1,709,956

7,191,041
7 211
777,765
1,343,822

37,838
54,126
261,464
32,068
48,221
1,035,107
983, 659
516,705
28,292
37,233
56,003

39,273
53.518
249 288
31,808
44,113
895,830
707,394
347,418
23,189
33,585
62,446

1,154,743
2,106
366,134
608
12,176
260
4,108
139,277
276,265
169,287
5,103
3,648

Decrease.

53,292
1,435

6,443

13,926

11,160

2,766

1,437,515

1,212,960

224,555

43,024
29,001
101,581
14,912

42,535
74,195
37,435
7,457

64,146
7,455

15,520,205

13,193,443

489

2,433,126
2,326,762

45,194

106,364

i Beginning with report for Sept. 12, 1916, notes and bills rediscounted are not included in loans and*
discounts, as was the previous custom; therefore, the amount of rediscounts has been deducted from Nov.
10, 1915, loans.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Statement showing resources and liabilities of national banks of the United States on
Nov. 17, 1916, as compared with Nov. 10, 1915— Continued.
LIABILITIES.
[In thousands of dollars.]
Comparison.
N o v . 17,1916. N o v . 10,1915.
Increase.

Capital stock paid in
Surplus fund
Undivided profits, less expenses and taxes
paid
Amount reserved for taxes accrued
Amount reserved for all interest accrued
National-bank notes outstanding
Due to Federal Reserve bank
Due to approved reserve agents
Due to banks and bankers
Dividends unpaid
Demand deposits
Time deposits
United States bonds borrowed
Other bonds borrowed
Securities borrowed
Bills payable, including obligations representing money borrowed
State bank circulation outstanding
Cash letters of credit, etc
Acceptances based on imports and exports.
Liabilities other than above stated

1,071,116
739,336

1,068,649
722,877

2,467
16,459

332,458
9,556
9,424
665,259

317,236

15,222
9 556
9,424
48,208
17

9,124
3,339,628
1,390
7,322,688
1,816,446
26,588
3,984
145

713,467
20
7,287
2,702,366
1,624
6,070,219
1,375,956
32,151
4,999
76

25,117
23
31,372
98,231
18,317

60,567
23
75,471
26,808
13,647

71,423
4,670

15,520,205

13,193,443

2,461,348

148,554

42,888

5,666

2,472,622
1,455,969

2,108,790
1,217,043

363,832
238,926

1,016,653

Total
Liabilities for rediscounts, including those
with Federal Reserve bank

Decrease

891,747

124,906

Amount of total reserve held
Amount of total reserve required
Excess reserve

1,837
637,262
234
1,252,469
440,490
5,563
1,015
69
35,450
' 44,' 099

134,586

i Rediscounts not included in total figures.

The following table shows the growth of the national banks as
revealed at five-year intervals at the time of the autumn calls for
the past 20 years:
[In thousands of dollars.)
Num- |
ber of I
banks, i
Oct. 6, 1896
Sept. 30, 1901
Nov. 12, 1906
Sept. 1,1911
Nov. 17, 1916

Date.

Oct. 6, 1896...
Sept. 30, 1901
Nov. 12,1906.
Sept. 1,1911.
Nov. 17, 1916.

1 3,676
4,221
6,199
7,301
7,584
Number of
banks.
3,676
4,221
6,199
7,301
7,584

Total
deposits.
2,029,830
4,233,520
6,031,496
7,628,065
12,489,279

Capital.

648,540
655,342
847,515
1,025,441
1,071,116

Lofens and
discounts.
1,893,269
3,018,616
4,366,045
5,663,411
8,345,784
Surplus and
undivided
profits.
336,343
430,562
687,673
904,435
1,090,774

Reserve.

543,600
1,012,299
1,266,333
1,674,464
2,472,622

Circulation.

209,944
323,864
536,110
696,982
665,259

Excess reserves.
179,200
252,555
270,695
322,646
i 1,016,653

Total resources.
3,263,685
5,695,347
8,213,878
10,379,439
15,520,205

i Reserve requirements changed Nov. 16,1914, under operation of Federal Reserve Act.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

This statement shows that in the past 20 years, or from October 6,
1896, to November 17, 1916, the national banks of the country
grew in number from 3,676 to 7,584, an increase of a little over 100
per cent, while their resources to-day are nearly jive times as great
as they were in 1896, having increased from 3,263 million to 15,520
million dollars. In the same period the capital of the national
banks increased over 65 per cent, or from 648 million to 1,071 million
dollars, but their surplus and undivided profits in the same period
increased from 336 million to 1,090 million dollars. I t is a striking
fact that the reserves which the national banks held on November
17, 1916, in excess of the amount which they were required by law
to hold, were reported at 1,016 million dollars, which is nearly twice as
much as the whole amount of reserves held by all national banks
October 6, 1896.
PERCENTAGE OF PRINCIPAL ITEMS OF ASSETS AND LIABILITIES OF
NATIONAL BANKS.

In view of the fact that on an average approximately 70 per cent
of the banks' assets are represented by loans, United States bonds,
and lawful money, and a like percentage of the liabilities by capital,
surplus and profits, and deposits, the following table is of interest as
indicating the percentage oi each of the items in question, based upon
reports from banks at the date of the fourth call of each year from
1906 to 1916, inclusive.
Items.

Loans and. discounts
United States bonds
Lawful money
Total
Capital
Surplus and profits
Deposits
Total

1906

1907

1908 1909

1910

1911 1912

1913

1914

1915

1916

P.ct. P.ct. P.ct. P.ct. P.ct. P.ct. P.ct. P.ct. P.ct. P.ct. P.ct.
54.0
7.8
7.8

56.1
7.9
8.4

52.9
7.9
9.6

53.5
7.6
9.5

55.6
7.5
8.9

54.5
7.4
8.6

55.1
7.1
8.1

56.9
7.3
8.3

55.7
6.8
7.9

55.0
6.4
6.9

54.5
5.1
5.3

69.6

12 A

70.5

70.6

72.0

70.5

70.3

72.5

70.4

68.3

64.9

10.4
8.4
52.4

10.7
8.8
51.5

10.2
8.5
50.4

9.8
8.4
52.3

10.2
8.9
52.4

9.9
8.7
52.9

9.4
8.7
53.8

9.7
9.1
53.0

9.2
8.9
53.5

8.7
8.3
55.1

7.4
7.3
58.6

71.2

70.9

69.1

70.5

71.5

71.9

71.8

71.6

72.1

73.3

BANK RESERVES.

The total reserves held by the national banks of the United States
at the November 17, 1916, call amounted, as shown above, to
$2,472,622,000, and exceeded by $185,172,000 the reserves held March
7, 1916, which were the largest ever previously reported.
DESIRABILITY OF ANTICIPATING TIME WHEN RESERVES SHALL ALL BE
CARRIED WITH FEDERAL RESERVE BANKS OR IN VAULTS.

Under the provisions of the Federal reserve act until November
16, 1917, country banks have the privilege of carrying two-twelfths
of their reserves with national bank reserve agents, and the reserve
city banks have the privilege of carrying three-fifteenths of their
reserves with their reserve agents in the central reserve cities instead
of with the Federal reserve banks or in their own vaults.

BEPOET OF THE COMPTROLLEB OF THE CURRENCY.

In view of the strong condition of the banks at this time, their
large excess of reserves, the great ease of money, and the uncertainties
of the future, it is believed that it would be a wise move to require
the banks to transfer the residue of their reserves at this time, or
in the immediate future, from their reserve agents to their Federal
reserve banks or their own vaults. This could easily be done now
without disturbance to the money market or inconvenience either to
the banks themselves, who would be called on to transfer their
reserves, or to their reserve agents.
The total reserve held by all banks in their own vaults, or with Federal
Reserve banks, on November 17,1916, was 1,437 million dollars. As
the aggregate reserves which the national banks were required to hold
in their own vaults or with the Federal Reserve banks, or with reserve
agents, amounted to only 1,456 million dollars, it is evident that all
but 19 million dollars of the 1,035 millions of reserve held with approved reserve agents in the reserve and central reserve cities were
merely surplus or excess reserves, the surplus or excess reserve held
November 17, 1916, being 1,016 million dollars over and above the
reserve required.
The excess reserve as distributed by geographical sections November 17, 1916, was as follows:
The New England States held an excess of 59 million dollars, or
59 per cent more than they were required to hold.
The Eastern States held an excess of 272 million dollars, or 41 per
cent more than necessary.
The Southern States 179 million dollars, or 127 per cent more than
required.
The Middle States an excess of 245 million dollars, or 67 per cent
more than needed.
The Western States an excess of 145 million dollars, or 158 per cent
above requirements.
The Pacific States 115 million dollars, or 127 per cent above
requirements.
Alaska and Hawaii one million dollars, or 164 per cent more than
needed.
CASH RESERVES AND BALANCES WITH RESERVE BANKS.
The specie and lawful money held by the national banks on
November 17, 1916, amounted to $788,344,000 as compared with
$846,775,000 November 10, 1915, but this omission of the banks
to show an increase in their holdings of specie and lawful money is
entirely accounted for by the transfer by national banks of a large
portion of their reserves to the Federal Reserve banks after the
opening of these banks November 16, 1914.
The total amount of specie and lawful money held by the national
banks October 31, 1914, was $925,553,000.
A year later, November 10, 1915, after the Federal Reserve banks
had been in operation a year, the amount of specie and lawful money
which the national banks held in their vaults, plus their balances
with their Federal Reserve banks, aggregated $1,212,960,000, an
increase of $287,407,000.
On November 17, 1916, the credit balances which the national
banks held with their Federal Reserve banks, plus the specie and

REPORT OF THE COMPTROLLER OF THE CURRENCY.

lawful money in their own vaults, amounted to $1,437,515,000,
being an increase as compared with October 31, 1914, of $511,962,000,
and an increase as compared with November 10,1915, of $224,555,000.
"ACCEPTANCES" AIDING OXJR FOREIGN TRADE.

Under section 13 of the Federal Reserve Act, any member bank is
given power to accept drafts or bills of exchange drawn upon it and
growing out of transactions involving the importation or exportation
of goods, having not more than six months sight to run; but banks
are limited in making such acceptances to an amount equal to onehalf of the bank's paid-in capital and surplus.
The followingfiguresshow the increase in " acceptances " based on
imports and exports, as reported by the banks at the time of the several calls from September 2, 1915, to September 12, 1916:
Acceptances by national banks, based on imports and exports.
September 2, 1915
November 10, 1915
December 31, 1915
March 7, 1916
May 1, 1916
June 30, 1916
September 12, 1916

$13, 077, 000
26, 808,000
31, 985, 000
42, 677,000
59, 836, 000
69, 303,000
76, 608, 000

Under subsequent amendments to the Federal Reserve Act the
member banks have been also authorized, within prescribed limitations,
to " accept'' drafts and bills of exchange involving the domestic shipment of goods, provided they are secured by proper shipping documents at the time of acceptance, or are secured at the time of acceptance by warehouse receipts or other such documents conveying or
securing title to "readily marketable staples;7' and a further amendment to the act, authorizing member banks to "accept" drafts or
bills of exchange drawn "for the purpose of furnishing dollar exchange
as required by the usages of trade in the respective countries," still
further broadens their powers in this connection.
The national banks nave already developed a substantial foreign
business under the authority thus given, and it is conceded that these
provisions of the Federal Reserve Act have been a material aid in the
development of our foreign commerce at this time.
* In view of the unusual opportunities presented for the extension of
our foreign trade by world conditions, these enlargements of the
powers of the banks seem to have been particularly fortunate.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

ONE YEAR'S GROWTH OF ALL REPORTING BANKS AND TRUST
COMPANIES IN UNITED STATES.
Statement showing total resources of all reporting banks, including national and State
institutions, and also the twelve Federal Reserve banks, on June 30, 1916, and June 23,
1915, with amount of increase or decrease in each.
[In thousands of dollars.]
Total
June 30,
1916.
RESOURCES.
Loans and discounts
Overdrafts
Investments
Real estate, etc
Due from banks
Due from Federal Reserve banks (net)
Exchanges for clearing house, checks, etc.
Cash on hand
Other resources

Total
June 23,
1915.

Increase.

903,888 15,758,815
38,210
36,232
876,370 5,901,041
826,642
793,405
032,125 3,233,943
20,414
8,311
770,425
376,875
911,717 1,760,737
516,403
316,226

2,145,073
1,978
975,329
33,237
798,182
12,103
393,550
150,980
200,177

32,896,194 28,185,585

4,710,609

Capital stock paid in
Surplus and undivided profits
National bank circulation
Federal Reserve notes in circulation (net)
Federal Reserve bank notes (net)
Deposits, individual and bank
Notes and bills rediscounted
Bills payable
Other liabilities

2,249,955 2,217,041
2,414,031 2,372,695
676,116
722,704
9,440
12,617
1,721
26,935,213 22,343,019
53,468
59,452
113,251
166,762
442,999
291,295

32,914
41,336
146,588
13,177
1,721
4,592,194
*6,984
163,511
151,704

Total
Number of banks

32,896,194 28,185,585

4,710,609

Total
LIABILITIES.

27,525

27,074

451

i Decrease.

The above table shows that for the 12-months period ending June
30, 1916, the total resources of all reporting banks in the United States
increased $4,710,609,000.
For the same period their deposits (individual and bank) increased
$4,592,194,000, while the increase inloans amounted to $2,145,073,000.
The banks of the country increased their investments in bonds,
securities, etc., to the extent of $975,329,000, and their real estate
holdings increased $33,237,000.
The cash on hand June 30, 1916, was reported at $1,911,717,000,
an increase during the year of $150,980,000.
It is noteworthy that borrowed money, including bills payable and
notes rediscounted, was reduced from $59,452,000 on June 23, 1915, to
$53,468,000 on June 30, 1916, a reduction of $5,984,000.
The total paid in capital, surplus, and undivided profits of all banks
increased from $4,589,736,000 to $4,663,986,000, an increase of
$74,250,000.
The resources of the national banks of the country November 17,
1916, exceeded by $4,204,106,000 the total resources, as of June 30,
1916 (the latest date for which reports have been compiled), of all
reporting State banks, savings banks, and private banks, and
amounted to more than double the resources of all the loan and
trust companies in the United States.
For the purpose of comparison, the number of reporting banks,
together with their loans, total resources, capital, and individual

63366°—17
2

REPORT OF THE COMPTROLLER OF THE CURRENCY.

deposits for the fiscal years 1908 to 1916, inclusive, are shown in the
following table:
[In millions of dollars.]
Banks.

1908
1909
1910
1911
1912
1913
1914
1915

...

. .

1916
i Includes overdrafts.

Loans. 1

Resources.

21,346
22,491
23,095
24,392
25,195
25,993
26,765
/27,062
\ 2 12
/27,513
\ 2 12

Year.

$10,438.0
11,373.2
12,521.8
13,046.4
13,953.6
14,626.7
15,339.5
15,758.7
»36.4
17,811.6
3 92.3

$19,583.4
21,095.0
22,450.3
23,631.1
24,986.6
25,712.2
26,971.4
27,804.1
381.4
32,271.2
624.9

Federal reserve banks.

Capital.
$1,757.2
1,800.0
1,880.0
1,952.4
2,010.8
2,096.8
2,132.1
2,162.8
54.2
2,195.1
54.8

Individual
deposits.
$12,784.5
14,035.5
15,283.4
15,906.3
17,024.0
17,475.7
18,517.7
19,135.4
22,773.7

Bills discounted and bought.

ABATEMENT OF USURY.

In the last annual report of the Comptroller of the Currency, the
practice of many national banks in some sections of the country, and
of some national banks in nearly all sections, of charging usurious
and unconscionable rates of interest on loans to customers was discussed at length, and numerous illustrations were furnished. I t is
extremely gratifying to be able to report a marked subsidence of this
evil and the evidence of a general desire and effort on the part of
the national banks to adhere to the provisions of the law governing
the matter of interest rates.
The trouble has not, however, been fully rectified, and banks here
and there continue to disregard the law in this respect, and to exact
rates which can not be justified on any ground. These persistent
offenders are being dealt with and it is hoped that in most cases they
may correct their irregular and unlawful practices before it becomes
necessary for this office to take steps for the annulment of their
charters.
The following figures indicate the reduction which has taken place
in the average interest rates charged on loans by national banks in
certain sections of the country, according to the sworn reports of the
banks:
In the State of Georgia, in September, 1915, 23 national banks
reported that they were charging an average of 10 per cent per annum
on all loans. In November, 1916, the number of banks reporting
an average of 10 per cent had been reduced to 7.
In Alabama, in September, 1915, 21 national banks admitted an
average of 10 per cent per annum or more. In November, 1916,
there were only 6 banks in Alabama reporting an average of as
much as 10 per cent.
In Texas, in September, 1915, 317 national banks declared that
they were charging on all loans an average of 10 per cent or more.
In November, 1916, the number had been reduced to 122.
In North Dakota, 90 national banks admitted, in September, 1915,
that average interest rates of 10 per cent were being charged. In
November, 1916, there were only 37 such banks.
In South Dakota, for the same period the national banks averaging
10 per cent or more were reduced from 25 to 10.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

In Nebraska, as against 18 charging 10 per cent or more in September, 1915, there were only 6 in November, 1916.
In Oklahoma, 300 national banks declared, in September, 1915,
that they were charging an average of 10 per cent or more on all
loans. In November, 1916, the number had been reduced to 193.
Throughout the entire country, in September, 1915, 1,022 national
banks admitted average rates of 10 per cent or more. On November
17, 1916, the total number of such banks had been reduced to 558.
In the last annual report attention was called to numerous instances
where national banks were charging customers from 50 per cent to
several hundred per cent per annum—in some cases more than 1,000
per cent—on some loans. These cases of extortion have, as a result
of the work of this office, been greatly abated,'but have not yet been
entirely eliminated. A stringent antiusury law has been passed by
the legislature of one or more States for suppression of usury in the
State banks since this office directed attention to the evil; and it is
exceedingly desirable that the Congress should enact legislation to
enable this office more effectually to deal with offenses of this kind.
The Comptroller in his last annual report recommended the passage
of a law to require national banks to keep a special record of all loans
made by them upon which they charged, as interest or discount, rates
in excess of those permitted by law, and empowering the Department
of Justice to proceed against such offenders upon evidence to be
furnished by the Comptroller of the Currency.
TO PREVENT BANK FAILURES.

The Comptroller of the Currency, in his report for 1915, said:
"The establishment of the Federal reserve banks makes it practically impossible for any national bank operating in accordance, with
the provisions of the national-bank act and managed with ordinary
honesty, intelligence, and efficiency to fail.
" Banks nearly always are broken, not by the failure of customers
to whom they have lent money, not by bank robbers who have come
from the outside, but by the tying up or dissipation of the banks'
funds through loans to their own officers and directors, or to interests
allied with or controlled by those officers and directors, or else by
direct defalcations and embezzlements by trusted officers.
"If these evils are remedied—and they can be remedied if certain
simple and much-needed amendments can be secured to the nationalbank act—failures among national banks can be reduced to a
negligible number, or be absolutely eliminated."
The experience of the past 12 months has manifested in many
ways the importance of the early adoption of amendments to the
National-Bank Act recommended to the Congress a year ago. Had
those amendments been enacted it is believed that nearly all, if not
all, of the bank failures which have taken place in the past 12 months
might have been avoided. Therefore, for the protection and benefit
of the depositors and stockholders of national banks, as well as in
the interest of the customers and the communities dependent upon
these banks for banking facilities necessary for their growth and
prosperity, I again recommend the adoption of the amendments to
which I called attention in my preceding annual report, including
the following:

REPORT OF THE COMPTROLLER OF THE CURRENCY.
LEGISLATION RECOMMENDED.

TO PROHIBIT OFFICERS OF BANKS FROM BORROWING FROM THEIR OWN BANES.

First. That the officers of a national bank be prohibited from borrowing funds of the banks by which they are employed.
TO PREVENT LOANS TO DIRECTORS EXCEPT WITH THE APPROVAL OF THE BOARD.

Second. That no loan be made by any national bank to any of its
directors or to a firm in which a director may be a partner without
formal authority of the board of directors of the bank, expressed by
affirmative vote of at least two-thirds of directors present.
TO LIMIT DIRECT AND INDIRECT LOANS TO ONE INDIVIDUAL, FIRM, OR CORPORATION.

Third. That a conservative and proper limitation be placed upon
the aggregate amount of money any one person, company, corporation, or firm may obtain from a national bank through th,e discounting of commercial paper and bills of exchange. The limitation of
10 per cent of the capital and surplus under section 5200, United
States Revised Statutes, does not apply to " bills of exchange drawn
in good faith against actually existing values and the discount of
commercial or business paper actually owned by the person negotiating the same." It is suggested that the aggregate liability of any
person, company, corporation, or firm on loans on commercial paper
or bills of exchange should in no event exceed 25 per cent of the
capital and surplus of the bank.
It is recommended also that a specific penalty be provided for the
violations of section 5200, enforceable against the officers and
directors of the bank responsible for the violation, in addition to the
statutory penalty for forfeiture of charter for violation of the nationalbank act.
TO PROVIDE SUITABLE PENALTY FOR MAKING OF EXCESSIVE LOANS.

Fourth. That the penalty for an excessive loan be the disqualification of the officer making or granting the loan, or the imposition
of a suitable fine, or both, in addition to the civil liability incurred
by reason of making such loan.
A fruitful source of loss to banks hasr been the making of excessive
loans, and jet the only penalty provided under the present law for
this offense is the forfeiture of the bank's charter, which, if resorted
to, would result in most cases in a hardship to the bank and its shareholders quite out of proportion to the offense.
TO AUTHORIZE THE COMPTROLLER TO BRING PROCEEDINGS AGAINST DIRECTORS FOR
LOSSES SUSTAINED BY BANK THROUGH VIOLATION OF THE NATIONAL-BANK ACT.

Fifth. That the Comptroller of the Currency be authorized to bring
proceedings against directors of a national bank for losses sustained
by the bank through violations of the provisions of the nationalbank act or the Federal reserve act.
Section 5239, United States Revised Statutes, provides as follows:
If the directors of any national banking association shall knowingly violate, or
knowingly permit any of the officers, agents, or servants of the association to violate,
any of the provisions of this title, all the rights, privileges, and franchises of the asso

REPORT OF THE COMPTROLLER OF THE CURRENCY.

ciation shall be thereby forfeited. Such violations shall, however, be determined and
adjudged by a proper circuit, district, or Territorial court of the United States, in a
suit brought for that purpose by the Comptroller of the Currency, in his own name,
before the association shall be declared dissolved. And in cases of such violation
every director who participated in or assented to the same shall be held liable in his
personal and individual capacity for all damages which the association, its shareholders, or any other person shall have sustained in consequence of such violation.

Banks often have sustained large losses as a result of the willful
and persistent disregard by its directors of the clear provisions of the
national-bank act. These losses, resulting from violation of the law
by directors, fall upon the stockholders. The directors who have
occasioned these losses by involving the bank in unlawful transactions to facilitate or promote schemes or enterprises in which the
directors may be concerned, are found sometimes to be holders or
owners of but a few shares of the stock of the bank the affairs of
which they are directing and the funds of which they frequently
have tied up in the promotion of their own private schemes. Very
often stockholders never are informed of the losses the bank has
suffered through these irregular transactions. It is the practice of
some banks to keep their transactions from shareholders, especially
those transactions which have resulted in losses. Thousands of
banks give stockholders, at the close of each fiscal year, little or no
information of the sources of the earnings and the details of the
disbursements and losses.
Even when shareholders have knowledge of the losses incurred
through violations of the law by the officers or directors of the bank,
should they proceed to bring suit against the unfaithful directors for
the benefit of themselves and their fellow shareholders, such action
might precipitate a run upon the bank and result in suspension or
unnecessary loss. Experience has shown that losses occurring from
faults or improprieties of directors sometimes are charged to " profit
and loss" account by the guilty directors themselves, and the stockholders never are apprised of the results of the mismanagement.
The evil effects of the wrongdoing fall upon the innocent stockholders and the wrongdoers escape.
AUTHORITY FOR REMOVAL OP DIRECTORS GUILTY OF PERSISTENT VIOLATIONS OF THE
NATIONAL-BANK ACT.

Sixth. That the Comptroller of the Currency be empowered, with
the approval of the Secretary of the Treasury, to require the removal
of a director or directors or any officer of a bank guilty of the violation of any of the more important provisions of the act, and to
direct that suit be brought in the name of the bank against such director or directors, after they cease to be connected with the bank,
for losses sustained by their malfeasance or misfeasance in office.
PREVENT DELAYS IN TAKING DIRECTORS' OATHS.

Seventh. That the law provide that if a director when elected does
not qualify and forward his oath to the Comptroller within 30 days
after his election a vacancy shall be declared immediately, to be filled
by the remaining directors, as provided by section 5148, United
States Revised Statutes, and the derelict director be ineligible for
reelection as director for that year.

REPORT OF THE COMPTROLLER OF THE CURRENCY.
ESTABLISHMENT OF APPROPRIATE PENALTIES FOR VIOLATIONS OF LAWS AND
REGULATIONS.

Eighth. That the Comptroller's office be empowered to penalize,
by the imposition of appropriate fines, all infractions and violations
oi the law and the regulations of this office made in pursuance of the
provisions of the national-bank act, and that these fines should be
imposed upon the offending officers, as well as upon the bank. Experience has also made it very clear that violations of certain sections of the law should be punishable with imprisonment, as well as
fine, suits to enforce such penalties, of course, to be instituted by
the Department of Justice in the United States courts.
AMENDMENT TO PROVIDE THAT SUITS AGAINST USURERS BE BROUGHT BY DEPARTMENT
OF JUSTICE.

Ninth. That an amendment be adopted authorizing and directing
the Department of Justice to bring suit against national banks guilty
of usury upon information furnished either through the Comptroller of
the Currency or through other sources.
TO AUTHORIZE SPECIAL INTEREST CHARGES FOR SMALL LOANS.

Tenth. That section 5197, United States Revised Statutes, be so
amended as to authorize a national bank to make a charge of 25
cents on any loan, even though that charge might exceed the legal
rate authorized by law. The amendment should be so framed, however, as to make it impracticable for a bank to evade the intent of
the law by requiring customers to make a multitude of small notes
and then charge 25 cents for each note.
Such an evasion of the law against usury might, perhaps, be prevented by providing that if a minimum charge of 25 cents shall have
been madeto a customer on any particular day, and this charge shall
be in excess of the legal rate of interest, no similar minimum charge
shall be made the same day to the same customer on any other note,
if in excess of the legal rate. This would prevent a bank from requiring a customer who might want to borrow $100 for 30 days from
giving 20 notes for $5 each, to be charged 25 cents on each note,
which would amount to $5, or 60 per cent per annum for the accommodation.
TO PREVENT OR LIMIT OVERDRAFTS.

Eleventh. That the laws of the respective States in regard to
overdrafts be made applicable to national banks, and that the individual liability prescribed by section 5239, United States Revised
Statutes, shall be made applicable to any violations of this provision,
and also that the officers of the national bank shall be required to
bring before the directors, in writing, at each directors7 meeting, a
list of all overdrafts made since the previous meeting of the board.
In some States directors, officers, and employees of banks who
knowingly overdraw their accounts are guilty of felony and may be
imprisoned.
TO LIMIT INTEREST PAID ON DEPOSITS.

Twelfth. That the rates of interest which any national bank may
pay on its deposits shall not exceed 4 per cent per annum unless the
highest rate for time paper fixed by the Federal reserve bank of the

REPORT OF THE COMPTROLLER OF THE CURRENCY,

district shall be more than 4 per cent, in which event the rate of
interest that may be paid may equal but not exceed such discount
rate charged at that time by the Federal reserve bank of the district:
Provided, however, That if the laws of a State fix the maximum rate
of interest that may be allowed on bank deposits, the rate so fixed
for State banks be applicable also to national banks in that State.
LIMITATION OF DEPOSITS TO EIGHT OR TEN TIMES CAPITAL AND SURPLUS.

Thirteenth. That the total deposits which a national bank may
receive shall be limited to eight or ten times the unimpaired capital
and surplus of the bank. The experience and observations of this
office during the past year strongly emphasize the importance ofsuch legislation, the reasons for which have been presented in a previous annual report.
AMENDMENT TO DISTRICT LAWS TO PREVENT "WILDCAT" BANKING.

Fourteenth. That the laws of the District of Columbia be amended
to prevent the irregularities and loose methods which arise from
the establishment in the District of savings banks and building and
loan associations organized in different States and whose charters
do not contain the restrictions and provisions which are necessary
for the sound and safe conduct of the banking business.
I t is recommended that an act be passed providing for the incorporation of savings banks in the District, and prohibiting the establishment of any savings bank or building and loan association not
incorporated under the laws of the District for the purpose of carrying on its business in the District of Columbia.
TO REQUIRE OFFICERS AND EMPLOYEES TO GIVE SURETY BONDS.

Fifteenth. That all officers of a national bank having the custody
of its funds, money, or securities, and all officers, tellers, or other
employees of the bank engaged in the handling of its money shall
furnish surety bonds, preferably the bonds of an established surety
company.
TO REQUIRE CERTIFICATES OF DEPOSIT TO BE SIGNED BY TWO OFFICERS.

Sixteenth. That all certificates of deposit must be signed by two
officers of the bank, and a penalty provided for the issue of any such
certificate not signed by two officers. The records of the office show
how heavy and needless losses have been sustained by banks for
failure to observe this safeguard.
TO PREVENT ERASURES ON THE BOOKS OF A BANK.

Seventeenth. That no officer or employee of a national bank
shall erase or cause to be erased or removed, either by acid or abrasion,
any entries on the books of any national bank. Where entries have
been made inadvertently or erroneously and it is desired to correct
them, they should be canceled by having three lines drawn across
them in black or red ink in such a manner as to indicate its cancellation, but not to make it impossible to decipher the original entry0

REPORT OF THE COMPTROLLER OF THE CURRENCY.

National banks have suffered serious losses from erasures and
changed entries by dishonest bookkeepers and officers to conceal or
to falsify transactions.
STANDARDIZATION OF BY-LAWS.

Eighteenth. That authority be given to standardize the by-laws
of national banks and provide, inter alia, for the annual meetings of
stockholders and for the submission to shareholders of definite reports
as to the bank's operations and earnings and general condition.
Stockholders sometimes complain bitterly of the scant information
laid before them by their officers in charge.
REMOVE LIMITATION ON DENOMINATION OF NATIONAL-BANK NOTES.

Nineteenth. That the limitation which restricts the amount of circulating notes in the denomination of $5 to one-third of the total
circulation issued by each national bank be removed. It is recommended that the proportion of notes of each particular denomination
of each bank be left to the individual banks, subject to the approval
of the Comptroller of the Currency.
RECHARTERED BANKS SHOULD BE ALLOWED TO USE BANK-NOTE PLATES OF ORIGINAL
BANK.

Twentieth. That rechartered national banks be authorized to continue the use of the old bank-note plates. The repeal of the act
of July 12, 1882, to that extent is recommended, as its enforcement
merely subjects both the banks and the Government to needless
expense.
The rechartered banks also should be permitted to utilize the notes
of the original bank which may have been prepared by the Bureau of
Engraving and Printing, with the proviso that these notes shall be
given a mark of identification, to distinguish them from the notes
issued prior to the rechartering of the bank, the old plates also to be
given an appropriate mark of identification. Because of the present
provisions of the law $4,335,580 of unissued currency belonging to
banks whose charters were renewed was destroyed during the fiscal
year ending October 31, 1916.
ENGRAVED SIGNATURES FOR NATIONAL-BANK NOTES.

Twenty-first. That the engraving of signatures on national-bank
note plates be authorized.
TO AUTHORIZE NATIONAL BANKS TO ESTABLISH BRANCHES IN THE UNITED STATES.

Twenty-second. That national banks, with the approval of the
Comptroller of the Currency, shall be allowed to establish and maintain branches within certain limits, for example, within city or
county lines, but not without the boundaries of the State in which
the parent bank may be located, and if such State be partly within
one Federal reserve district and partly in another Federal reserve
district such branches shall be established only in that portion of the
State which is in the same Federal reserve district as the parent bank.
No national bank to be permitted, however, in this country, to have
more than 12 branches. The capital of the parent bank to be

REPORT OF THE COMPTROLLER OF THE CURRENCY.

increased, with, the establishment of each branch in the town in
which the bank is located, in an amount equal to not less than 50
per cent of the minimum capital which would be required for the
organization of a national bank in the city wherein the parent bank
is located, and the capital of the parent bank shall be increased with
the establishment of each branch outside the city where the parent
bank is located in an amount equal to the capital now required by
the national-bank act for the organization of a national bank in the
place where the proposed branch is to be located.
TO PERMIT BRANCH BANKS IN ALASKA AND INSULAR POSSESSIONS.

Twenty-third. That national banks be permitted to establish
branches in Alaska and in the insular possessions of the United States.
PROVISION FOR CONSOLIDATION OF NATIONAL BANKS.

Twenty-fourth. That provision be made for actual consolidation
of national banks along lines which would eliminate the embarrassments which arise under the present method of bringing about the
consolidation of banks and which involve the liquidation of one of
the banks.
FURTHER AMENDMENTS RECOMMENDED.

The experience in the past 12 months shows that several further
amendments to the national-bank act ought to be adopted in the
interest of the depositors or shareholders of the banks or of the
general public, and I therefore submit the following further recommendations:
TO PROVIDE A PENALTY FOR MAKING FALSE FINANCIAL STATEMENTS FOR THE PURPOSE
OF OBTAINING CREDIT FROM NATIONAL BANKS.

That the Criminal Code be so amended as to provide that any
person, firm, or corporation obtaining a loan or credit from a national
bank based on a false statement, willfully made, of the financial condition of the borrower, shall be guilty of a felony and that appropriate penalties be provided.
TO PROVIDE PUNISHMENT FOR BREAKING AND ENTERING A NATIONAL BANK FOR THE
PURPOSE OF THEFT OR ROBBERY.

The penalties provided by the Criminal Statutes of the various
States for housebreaking and burglary vary and it frequently happens that criminals guilty of such offenses, if apprehended, are not
adequately punished. It is therefore recommended that the breaking or entering of a national bank or any place or building occupied
by such bank, for the purpose of theft or robbery, shall be made a
Federal crime to be prosecuted in the proper District Court of the
United States.
TO LIMIT INVESTMENT IN BANK BUILDING.

Section 5136, United States Revised Statutes, at present permits a
national bank to invest its funds in a bank building for its own use,
but there is no limitation upon the amount of money which a national
bank may tie up in this manner. The records of this office show
various instances where banks have been brought to grief and where
their creditors have sustained serious losses because of the tying up

REPORT OF THE COMPTROLLER OF THE CURRENCY.

of an excessive proportion of their resources in elaborate, ostentatious,
and unnecessary bank buildings.
It is respectfully recommended that section 5136 be amended to
provide that no national bank shall be permitted to tie up by investment in an office or bank building an amount in excess of the paid-in
capital of the bank. This provision shall also apply to trust companies
and banking institutions doing business in the District of Columbia.
A further limitation based on total resources would also be wise.
TO AUTHORIZE UNITED STATES TREASURER TO SELL BONDS SECURING CIRCULATION
30 DAYS AFTER A BANK GOES INTO LIQUIDATION.

Under section 5222, United States Revised Statutes, a national
bank going into voluntary or involuntary liquidation is given six
months in which to settle its circulation liability before the Treasurer
is authorized to sell the bonds securing the circulation. As there is
no provision in the law by which a bank in liquidation can be forced
to maintain its 5 per cent redemption fund, and as the Treasurer is
required by law to redeem all bank notes as presented, it is respectfully recommended that the Treasurer be authorized to sell the bonds
securing circulation at any time after the expiration of 30 days from
the date on which the bank goes into liquidation.
NEW LAW AUTHORIZING BANKS IN SMALL TOWNS TO NEGOTIATE REAL
ESTATE LOANS AND PLACE INSURANCE.

During the past year the Comptroller of the Currency supplemented the recommendations contained in his last annual report to
the Congress with a special recommendation, submitted in June, 1916,
that national banks in certain small towns and villages be permitted to
transact an insurance business, and also a business for the negotiation of loans on real estate.
A bill in substantial accordance with this recommendation was
passed by Congress, and approved by the President on September 7,
1916.
In the appendix to Volume 2 of this report will be found a copy of
the rules and regulations under which the national banks are. now
permitted to engage in such business.
NEW BANKS CHARTERED AND CHARTERS EXTENDED AND
REEXTENDED.

During the 12 months ending October 31, 1916, a total of 122
original charters were granted national banks.
Charters are granted to national banks for a period of 20 years
from the date of their organization. In the year ended October 31
last 20 associations reached the termination of their existence, and
their charters were extended for an additional period of 20 years
under authority of the act of July 12, 1882. In the same year the
charters of 22 banks which had been extended under the act of 1882
were extended for a further period of 20 years under the act of April
12, 1902. The total number of charters extended under the act of
1882 was 3,364, and under the act of 1902, 1,276.
In the coming year the charters of 36 banks will expire for the first
time and 12 for the second. A list of banks the charters of which
will expire during the year ending October 31, 1917, will be found in
Volume 2.

BEPORT OF THE COMPTROLLER OF THE CURRENCY.

EXTENSION OF CHARTER OF THE RIGGS NATIONAL BANK OF WASHINGTON.

Among the national banks whose original charters expired during
the past 12 months was the Riggs National Bank of Washington,
D. C., whose charter ran out June 27, 1916. On May 23, 1916, this
bank filed an application for an extension of its charter for another
period of 20 years.
Section 3 of the act of July 12, 1882, provides:
That upon the receipt of the application and certificate of the association provided
for in the preceding section, the Comptroller of the Currency shall cause a special
examination to be made, at the expense of the association, to determine its condition;
and if after such examination or otherwise, it appears to him that said association is in
a satisfactory condition, he shall grant his certificate of approval provided for in the
preceding section, or if it appears that the condition of said association is not satisfactory, he shall withhold such certificate si approval.

Previous examinations of this bank had shown that during the
entire period of its existence it had been guilty of persistent violations 01 the national banking act and had been conducting its business
in continuous disregard of regulations and admonitions of the Comptroller's Office. Its violations of the law had begun shortly after its
organization in 1896 and had continued throughout the life of the
bank, up to 1914, when they were checked as the result of the action
of the Comptroller of the Currency.
The bank had attempted by various devices and subterfuges to
conceal its irregular and unlawful practices and had persistently
evaded or answered imperfectly various requests for information and
data which the Comptroller considered it important and necessary
to have in order to be properly informed as to its condition and
operations, so that the Comptroller of the Currency had experienced
much difficulty in ascertaining its true condition.
FINE IMPOSED FOR BANK'S REFUSAL TO FURNISH DATA CONCERNING "DUMMY" AND
OTHER LOANS TO ITS OFFICERS, ETC.

Finally, on February 1, 1915, the bank definitely refused to furnish
to the Comptroller of the Currency certain information asked for as
to the "dummy" loans which the bank had been making through
a period of years to officers arid others, and also as to other loans
which the bank had been making to its president, vice presidents,
cashier, and other officers, and the members of the families of its
officers.
Upon the bank's refusal to furnish this information, it was notified
that it was subject to the imposition of a penalty of $100 per day
under section 5213, United States Revised Statutes.
On March 30 the Comptroller notified the Treasurer of the United
States to withhold from the bank $5,000 of interest clue April 1,
1915, on certain United States bonds held for account of the Riggs
National Bank, in order that the said $5,000 might be collected on
account of the penalty which the bank had incurred for its refusal
to furnish the data demanded by the Comptroller as provided by
statute. The bank thereupon filed an injunction suit in the Supreme
Court of the District of Columbia to restrain the Secretary of the
Treasury, the Comptroller of the Currency, and the Treasurer of
the United States from withholding said $5,000, and, in its bill of
complaint, it alleged conspiracy and persecution on the part of the
Government officers against the bank.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

The court, after a full hearing, in an interlocutory decision on
May 21, 1915, promptly dismissed the complaint so far as it alleged
persecution or malice on the part of the Government officers. The
court indicated that if " malice " was shown it was on the part of the
bank and the bank's officers and not on the part of the Government
officers; declared that the Comptroller was right in refusing, under
the circumstances, to permit the Riggs National Bank to be designated
as a depository for other banks, and said that it would decide later
the question of the validity and the legality of the imposition of the
$5,000 fine.
Subsequently, in May, 1916, the court handed down a lengthy
decision, in which the position taken by the Government officers was
upheld in every respect, but because of a technical omission of the
Comptroller in his letter demanding information, to follow strictly the
language of the statute, by demanding that the bank furnish the data
called for over the signatures of the president and cashier and three
directors, instead, as the law provided, over the signatures of the
president or cashier and not less than three directors, the particular
$5,000 fine imposed for omission to comply with that specific demand
could not be collected. The court declared that the Comptroller of
the Currency was fully within his authority in demanding the information which he had called for, and showed that the fine could be
imposed and collected if the bank should at any time refuse any
demand for the data desired if demanded as the statute provides
to be "verified by the oath or affirmation of the president or cashier,
and attested by the signature of at least three of the directors."
COURT'S DECISION COMPLETELY SUSTAINED COMPTROLLER'S RIGHT TO RECEIVE EVERY
REPORT DEMANDED.

On this point the language of the decision in referring to the
Comptroller's letter to the bank in which the data was demanded,
was as follows:
"The demand was twofold:
"First, for information in regard to all direct loans made by the bank
to certain of its then officers; and
"Second, for information in regard to all indirect or dummy or
concealed loans made since the organization of the bank for the benefit, directly or indirectly, of those officers or any of them, including
all loans for which they or any of them had indorsed or for which
they had furnished the whole or any part of the collateral by which
loans to any of them were secured, and for other information as shown
by the quotation of said paragraph above.
"In the view which the court takes of the power of the Comptroller,
these demands were entirely within his powers.
"* * * I t is perfectly obvious that as to concealed loans made
for the benefit of the officers of the bank no possible limit to the scope
of an inquiry by the Comptroller could be reasonably suggested.
* * *
"The demands made by the Comptroller were that the lank make
certain reports. If the demand had included the production of
books and papers of the plaintiff, the officers of the bank would have
no privilege of refusing to produce them because they might contain
matter which would incriminate the officers or lead to punishment of

REPORT OF THE COMPTROLLER OF THE CURRENCY.

the corporation. (Hale v. Henkel^ 201 XL S., 42; Wilson v. United
States, 221 U. S., 361.) As was stated in the latter case, the State
has visitorial powers over corporations. The fourth amendment of
the Constitution protects a corporation against unreasonable searches
and seizures, but the fifth amendment providing against compelling
a person to be a witness against himself in a criminal case does not
prevent the compulsory production of the books of the corporation
by one of its officers, so here the bank can not excuse the failure to
give a report simply because any of its officers required to furnish it
raise the question of seH-incrimination."
OFFICERS AND DIRECTORS SIGN LETTER ADMITTING COMPTROLLER'S RIGHTS AND
PLEDGING OBEDIENCE TO LAW AND REGULATIONS IN FUTURE.

After the Supreme Court of the District rendered its decision, the
Riggs National Bank, in a letter signed by its president, both vice
presidents, cashier, and assistant cashier, and 14 directors, including
all directors who were officers, acknowledged the full and complete
authority of the Comptroller's Office as confirmed by the court's
decision, and the signers solemnly and severally pledged themselves
to conduct, in the future, the affairs of the bank—
"in strict compliance with the national-bank act and all the laws of
the United States, and in conformity with the lawful rules, regulations, and requirements of the office of the Comptroller of the Currency/'
and in their letter, in referring to the court decision, the bank's
officers and directors said:
"The court sustains the right of the Comptroller to have the reports
and information called for, and the right to imposefinesin accordance
with the provisions of the statute, if the bank should refuse them."
The Comptroller thereupon, having received these explicit and
unequivocal assurances as to the bank's future management, granted
to the Riggs National Bank an extension of its charter for the ensuing 20 years.
Copies of the interlocutory decision of the Supreme Court of the
District of Columbia in the injunction case, and a copy of a digest or
synopsis of the final decision of the Supreme Court of the District as
given out by the Department of Justice when the decision was handed
down in May, 1916, together with a copy of the decision of the Comptroller of the Currency dated June 21, 1916, on the application of the
bank for a renewal of its charter, are published at the end of volume 1
of this report as Exhibits A, B, and C.
There is also published in the appendix to volume 2 of this report
the affidavit and answer of the Comptroller of the Currency in the
injunction suit above referred to.
BANK OFFICERS CONVICTED OF CRIMINAL VIOLATIONS OF LAW DURING
FISCAL YEAR.

The Department of Justice reports the following list of officers
and employees of national banks who have been convicted of criminal
violations of law and sentenced to the penitentiary during the fiscal
year ending October 31, 1916, for the offenses indicated:

REPORT OF THE COMPTROLLER OF THE CURRENCY.

National bank cases in which defendants were convicted or pleaded guilty during year ended
October SI, 1916.

T. W. M. Boone, president, American National Bank, Fort Smith, Ark.1 False entries.
Sentence, 7 years. September, 1916.
W. H. Garanflo, president, State National Bank, Little Rock, Ark.2 Misapplication.
Convicted Aj)ril, 1916. No record of sentence.
J. F. Harragan, vice-president, Dubuque National Bank, Dubuque, Iowa.3 Embezzlement. Sentence, 5 years. December, 1915.
E. M. Dickinson, cashier, American National Bank, Fort Smith, Ark.1 Abstraction,
misapplication, false entries. Sentence, 8 years. September, 1916.
R. D. Duncan, cashier, State National Bank, Little Rock, Ark.2 Misapplication.
Convicted April, 1916. No record of sentence.
MaCalla Fitzgerald, cashier, First National Bank, London, Ky. Misapplication,
false entries. Sentence, 5 years. May, 1916.
Geo. J. Homan, cashier, Dubuque National Bank, Dubuque, Iowa.3 Embezzlement.
Sentence, 5 years. December, 1915.
John Hornung, cashier, Dresden National Bank, Dresden, Ohio. Embezzlement.
Sentence, 13 years. December, 1915.
E. E. Lewis, cashier, National Bank of Commerce, Coweta, Okla. Misapplication,
false entries. Sentence, 5 years. April, 1916.
M. M. Lowrey, cashier, Americus National Bank, Americus, Ga. Misapplication,
false entries. Sentence, 5 years. November, 1915.
W. P. Phillips, cashier, First National Bank, Vinita, Okla. False entries. Sentence,
5 years. February, 1916.
W. M. Roberts, cashier, First National Bank, San Mateo, Cal. Embezzlement. Sentence 5 years. November, 1915.
W. H. Tebbs, cashier, Farmers and Merchants National Bank, Cisco, Tex. Embezzlement. Sentence 5 years. February, 1916.
P. A. Ball, assistant cashier, American National Bank, Fort Smith, Ark.1 Abstraction; misapplication; false entries. Sentence 8 years. September, 1916.
A. J. Biard, assistant cashier, First National Bank, Hugo, Okla. Embezzlement.
Sentence 5 years. November, 1915.
John N. Deglman, assistant cashier, National Citizens Bank, Mankato, Minn. Embezzlement. Sentence 5 years. November, 1915.
A. J. Dowd, assistant cashier, American National Bank, Fort Smith, Ark.1 Abstraction; misapplication; false entries. Sentence 8 years. September, 1916.
Harry A. Jones, assistant cashier, Stoneham National Bank, Stoneham, Mass. Embezzlement. Sentence 5 years and 9 months. September, 1916.
Ernest G. Butler, teller, National City Bank, Indianapolis, Ind. Embezzlement.
Sentence 5 years. May, 1916.
Carlos P. Cole, teller, First National Bank, Ashley, Pa. Abstraction. Sentence 5
years. November, 1915.
W. H. Connell, teller, Citizens National Bank, Meridian, Miss. Embezzlement.
Sentence 5 years. September, 1916.
A. J. Finlayson, teller, First National Bank, Amsterdam, N. Y.4 Embezzlement.
Sentence 5 years. February, 1916.
V. V. Foitik, teller, Livestock National Bank, South Omaha, Nebr. Embezzlement.
Sentence 5 years. April, 1916.
Harry S. Gordon, teller, Union National Bank, Houston, Tex. Embezzlement.
October, 1916.
Charles S. Lawson, teller, Exchange National Bank, Little Rock, Ark.5 Misapplication. Sentence 5 years. April, 1916.
John Oltmann, paying teller, Ridgewood National Bank, Ridge wood, N. Y. Embezzlement. Sentence 5 years. November, 1915.
Charles Seig, teller, Dubuque National Bank, Dubuque, Iowa. Embezzlement.3
Sentence 5 years. December, 1915.
A. H. Anderson, bookkeeper, First National Bank, Sheldon, Iowa. Abstraction and
false entries. Sentence 5 years. June, 1916.
Wm. T. Brice, bookkeeper, First National Bank, Amsterdam, N. Y.4 Conspiracy.
Sentence 2 years. February, 1916.
E. A. Bunker, bookkeeper, National State Capitol Bank, Concord, N. H. Abstraction. Sentence 5 years. March, 1916.
1
2
3

President, cashier, and two assistant cashiers of this bank convicted.
President and cashier of this bank convicted.
Vice president, cashier, and teller of this bank convicted.
*
6 Teller, bookkeeper, andxme other—no title piven—convicted.
Teller and one other—no title given—convicted.

BEPOKT OF THE COMPTROLLER OF THE CURRENCY.

Colbert Cecil, bookkeeper, Catlettsburg National Bank, Catlettsburg, Ky. Embezzlement. Sentence 5 years. April, 1916.
W. D. Cole, bookkeeper, State National Bank, Oklahoma City, Okla. Abstraction.
Sentence 5 years. June, 1916.
John A. Duke, bookkeeper, Clearfield National Bank, Clearfield, Pa. Abstraction.
Sentence 5 years. March, 1916.
*
John Finnegan, bookkeeper, First National Bank, Rome, N. Y. Abstraction; false
entries. Sentence 5 years. May, 1916.
G. C. Merriman, bookkeeper, National Loan & Exchange Bank, Columbia, S. C.
Abstraction. Sentence 5 years. June, 1916.
Paul W. Sperling, bookkeeper, Commercial National Bank, Saginaw, Mich. Abstraction. Sentence 5 years. May, 1916.
Lloyd M. Dean, clerk, Indiana National Bank, Indianapolis, Ind. Abstraction.
Sentence 5 years. May, 1916.
Wm. C. Gannon, clerk, Merchants-Laclede National Bank, St. Louis, Mo. Abstraction. Sentence 5 years. June, 1916.
A. O. Johnson, clerk, Fifth-third National Bank, Cincinnati, Ohio. Embezzlement.
Sentence 5 years. November, 1915.
Earl D. Linnell, clerk, Palmer National Bank, Palmer, Mass. Abstraction. Sentence 5 years. January, 1916.
William Mink, clerk, Union National Bank, Cleveland, Ohio. Embezzlement.
Plea of guilty July, 1916. No record of sentence.
C. W. Kay, messenger, Whitney Central National Bank, New Orleans, La. Embezzlement. Sentence 5 years. April, 1916.
John F. Young, messenger, Commercial National Bank, Kansas City, Mo. Abstraction. Sentence 5 years. January, 1916.
W. H. Cummins, aiding and abetting Lawson, teller, Exchange National Bank,
Little Rock, Ark.5 Convicted April, 1916. No record of sentence.
Henry J. Nichols, aiding and abetting Brice in4 abstracting and misapplying funds of
First National Bank of Amsterdam, N. Y. Sentence 5 years. February, 1916.

NATIONAL-BANK EXAMINATIONS.

Marked progress has been made during the past 12 months toward
improving and perfecting the work of the examination of national
banks by the examining force. Under the provisions of the Federal
reserve act each national bank is subject to at least two examinations
each year and as many more as, in the discretion of the Comptroller of
the Currency, may seem desirable. For the carrying on of this work
the country has been divided into 12 national-bank examining districts, which are coterminous with the Federal reserve districts, and
in each district there is now located a chief national-bank examiner
who, under the supervision of the Comptroller of the Currency, has
the immediate direction of the field examiners in his particular
district.
The list of national-bank examiners as of October 31, 1916, was as
follows:
CHIEF EXAMINERS.

Federal Reserve District—
No. 1—-James D. Brennan, Boston, Mass.
No. 2—Charles F. Richmond (acting), New York City.
No. 3—Edward I. Johnson, Philadelphia, Pa.
No. 4—Silas H. L. Cooper, Cleveland, Ohio.
No. 5—Thomas P. Howard, Richmond, Va.
No. 6—James K. Doughton, Atlanta, Ga.
No. 7—Sherrill Smith, Chicago, 111.
No. 8—Joseph M. Logan (acting), St. Louis, MoB
No. 9—Peter M. Kerst, Minneapolis, Minn.
No. 10—Jay D. Rising, Kansas City, Mo.
No. 11—John C. Chidsey, Dallas, Tex.
No. 12—Claud Gatch, San Francisco, Cal,

REPORT OF THE COMPTROLLER OF THE CURRENCY.
SUPERVISING NATIONAL-BANK EXAMINER.

Stephen L. Newnham, Washington, D. C.
FIELD EXAMINERS.

First District.
N. S. Bean, Manchester, N. H.
George M. Coffin, New York City.
Harry F. Currier, Maiden Mass.

Otis M. Freeman, Providence, R. I.
T. J. Goodwyn, Montpelier, Vt.
D. C. Mulloney, Portland, Me.
Second District.

Harry L. George, Albany, N. Y.
H. G. Hanna, Elizabeth, N. J.
D, V. Harkin, New York City.

Benjamin Marcuse, New York City.
Ebenezer Southall, Buffalo, N. Y.
G. B. Wilkinson, New York City.
Third District.

Daniel C. Borden, Johnstown, Pa.
Charles R. Burrell, Wilkes-Barre, Pa.
Kinzie B. Cecil, Williamsport, Pa.
C. H. Chapman, Philadelphia, Pa.

William W. Paddock, Philadelphia, Pa.
D. F. B. Shepp, Tamaqua, Pa.
Carl M. Sisk, Pottsville, Pa. •
George Stauffer, Lancaster, Pa.

Fourth District
George E. Armstrong, Pittsburgh, Pa.
Philip C. Berg, Hillsboro, Ohio.
A. B. Camp, Toledo, Ohio.
John B. Chenault, Maysville, Ky.
George De Camp, Cincinnati, Ohio.

Robert C. McConaughy, Cleveland, Ohio.
J. Frank Miller, Wilkinsburg, Pa.
William M. Morgan, Louisville, Ky.
George J. Stevens, Pittsburgh, Pa.
\ Thomas C. Thomas, Columbus, Ohio.

Fifth District.
Edward J. Donahue, Washington, D. C.
R. J. C. Dorsey, Washington, D. C.
R. Gordon Finney, Huntington, W. Va.
Claude Gilbert, Cumberland, Md.
Richard L. Hargreaves, Raleigh, N. C.

Robert L. Harris, Richmond, Va.
J. W. Pole, Greenville, S. C.
Morton M. Prentis, Richmond, Va.
J. B. Stringfellow, Roanoke, Va.
James Trimble, Washington, D. C.

Sixth District.
Thomas E. Fletcher, Cordele, Ga.
William T. Marfield, New Orleans, La.
W. C. Roberts, Birmingham, Ala.

William B.' Roper, Atlanta, Ga.
Edgar D. Walter, Chattanooga, Tenn.

Seventh District.
Charles R. Mertens, Shelbyville, 111.
William G. Minor, Cannelton, Ind.
Robert Montgomery, Chicago, 111.
Paul Partridge, Davenport, Iowa.
C. F. Riddell, Indianapolis, Ind.
Ellis D. Robb, Waterloo, Iowa.
Miller Weir, Jacksonville, 111.
William H. White, Paxton, 111.

Claude H. Beatty, Chicago, 111.
H. C. Blackman, Hillsdale, Mich.
N. E. Haugen, Des Moines, Iowa.
E. F. Higgins, Chicago, 111.
Raby L. Hopkins, Milwaukee, Wis.
Robert C. Houston, Laporte, Ind.
E. S. Hubbell, Elgin, 111.
J. L. Kennedy, Sheldon, Iowa.

Eighth District.
E. H. Gough, Boonville, Ind.
William P. Kincheloe, Louisville, Ky.
Harry L. Machen, Little Rock, Ark.
John S. Wood, Centralia, Ill-

John K. Woods, Memphis, Tenn.
Hal Woodside, Hannibal, Mo.
William R. Young, Springfield, Mo.

Ninth District.
Harry E. Albert, Minneapolis, Minn.
Christopher H. Anheier, Fargo, N. Dak.
J. TW. Barton, Minneapolis, Minn.
W ard M. Buckles, Helena, Mont.
Thomas H. Campbell, Huron, S. Dak.

Oscar A. Carlson, Sioux Falls, S. Dak.
Ben Hayes, jr., Fargo, N. Dak.
William J. Schechter, Milwaukee, Wis.
John H. Smith, Minneapolis, Minn.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Tenth District.
Lee R. Buchanan, Lincoln, Nebr.
Sherwook Crocker, Denver, Colo.
William E. Fair, Cheyenne, Wyo.
Thurston P. Farmer, Tulsa, Okla.
Charles H. Filson, Guthrie, Okla.
George W. Goodell, Denver, Colo.
Edward S. Jernegan, Oklahoma City,
Okla.

John D. Mossman, Topeka, Kans.
Luther H. Patton, Enid, Okla.
William H. Reed, Kansas City, Mo.
John Rush, Omaha, Nebr.
Floyd Seybolt, Lincoln, Nebr.
Thomas M. Williams, Hutchinson, Kans.
C. F. Winters, Kansas City, Mo.

Eleventh District.
Richard H. Collier, Sherman, Tex.
Charles W. Foster, Houston, Tex.
Edgar F. Gossett, El Paso, Tex.
William Z. Hayes, Tyler, Tex.

William E. Hutt, Sherman, Tex.
Jesse L. Penix, Austin, Tex.
Allison D. Thompson, Waco, Tex.
Twelfth District.

Fred Brown, Boise, Idaho.
H. R. Gaither, Portland, Oreg.
William M. Gray, San Francisco, Cal.
John A. H. Kerr, Los Angeles, Cal.
Martin McLean, Seattle, Wash.

Charles C. Otto, San Francisco, Cal.
Douglas A. Swan, Salt Lake City, Utah.
Oscar Thompson, Los Angeles, Cal.
Walter E. Wilcox, Oakland, Cal.

REPORT OF EXAMINATION FURNISHED NATIONAL BANKS.

During the past year the Comptroller inaugurated, for the first time,
the plan of furnishing each national bank, after each examination, a
comprehensive copy of the examiner's report, showing in detail the
condition of the bank, with notation of irregularities and matters
criticized. Each examiner, furthermore, after every examination,
also furnishes to the Comptroller's Office a special supplementary
report containing data more or less confidential, with such special
recommendations as the situation seems to call for.
This departure from previous practice has been strongly approved
by the banks generally; and advices received indicate that the plan of
providing banks with copies of the reports of examinations has resulted, in thousands of cases, in giving to the directors of banks, as
well as officers, a clearer insight as to the bank's condition, and a
better comprehension of its management and operations than they
ever had before; and has also effected .a material saving to many
banks by enabling them to dispense with costly examinations, which
some of them have heretofore been receiving periodically from special
accountants.
CONDITION

OF NATIONAL BANKS AT DATE OF EACH CALL
DURING THE REPORT YEAR.

During the 12 months ended October 31, 1916, national banks
have made, as in the preceding 12 months, six reports of condition,
in lieu of the five rendered in preceding years.
The earliest call for the year covered by this report was made
November 10, 1915, and the succeeding five have been made for
December 31,1915, March 7, May 1, June 30, and September 12,1916.
The resources and liabilities of the banks at each of the dates
indicated are shown in the table following.
63366°—17

REPORT OF THE COMPTROLLER OF THE CURRENCY.
[In thousands of dollars.]
Nov. 10,
1915—
7,617
banks.

Dec. 31,
1915—
7,607
banks.

Mar. 7,
1916—
7,586
banks.

Mayl,
1916—
7,578
banks.

June 30,
1916—
7,579
banks.

Sept. 12,
. 1916—
7,589
banks.

7,233,929
7,211
777,765
1,343,822

7,357,732
6,709
774,639
1,375,149

7,490,011
5,493
753,913
1,464,787

7,606,428
6,994
738,830
1,525,567

7,679>167
6,168
731,205
1,527,832

7,859,837
7,839
729,777
1,624,627

39,273
53,518
249,288
31,808
44,113
366,185

40,036
53,689
251,551
31,424
45,122
403,985

39,979
53,628
252,982
31,505
47,320
431,195

40,075
53,701
255,378
31,800
47,787
428,191

39,272
53,651
255,977
31,654
47,736
476^103

39,366
53,923
259,427
31,908
47,627
531,028

895,830
707,394
347,418

834,392
698,921
449,828

1,022,642
772,979
319,430

954,822
766,200
596,895

843,390
694,926
444,033

936,339
780,600
392,684

23,189

38,588

22,874

42,435

36,007

25,570

33,585
62,446

43,809
63,933

30,019
61,908

45,972
59,196

41,884
54,120

32,817
62,238
1,634
13,190

RESOURCES.

Loans and discounts
Overdrafts
United States bonds
Other bonds, securities, etc
Stocks other than Federal reserve bank stock
Stock of Federal reserve banks..
Banking house
Furniture and fixtures
'Other real estate owned
Due from Federal reserve banks
Due from approved reserve
Due from banks and bankers
Exchanges for clearing house
Other checks on banks in the
Outside checks and other cash
items
Notes of other national banks..
Federal reserve bank notes
Federal reserve notes

11,160

10,669

8,940

19,077

17,480

127,118
401,589
59,568
11,473
111,074
20,975

118,416
350,370
83,963
11,778
103,860
21,375

119,897
366,234
87,749
11,897
101,293
21,710

117,114
325,535
78,801
11,737
109,365
21,013

117,199
324,824
66,971
11,812
98,505
21,168

122,079
330,102
77,546
11,762
100,664

Total coin and certificates.

731,797

689,762

708,780

663,565

640,479

663,022

Legal-tender notes
Redemption fund and due from
U.S. Treasurer
Customers' liability under letters
of credit
Customers' liability account of
acceptances
Other assets

114,978

118,117

124,833

113,890

117,524

105,101

42,535

45,939

41,730

40,850

43,851

42,346

74,195

86,212

102,386

100,326

83,761

77,512

37,435
7,457

39,764
7,917

43,829
7,518

66,034
4,614

77,879

13,236,331

13,467,887

13,838,681

59,072
8,544
14,195,595

1,068,649
722,877

1,068,049
725,554

1,067,289
724,664

1,067,481
724,697

1,066,049
731,389

1,067,565
731,409

317,236

294,267

306,614

317,473

305,850

317,050

. Gold coin
Gold Treasury certificates
Clearing house certificates
Silver dollars
Silver Treasury certificates
Silver fractional coin

Total..

15,246
13,926,868 14,411,537
—

•

—

LIABILITIES.

Capital stock paid in
Surplus fund
Undivided profits, less expenses
and taxes paid
Amount reserved for taxes accrued
Amount reserved for all interest
accrued
National-bank notes outstanding
Due to Federal reserve banks..
Due to approved reserve agents
Due to banks and bankers
Dividends unpaid
Individual deposits subject to
check
Certificates of deposit due in less
than 30 days
Certified checks
Cashier's checks outstanding
United States deposits
Postal savings deposits
State, county, or other municipal deposits
Deposits requiring notice, but
less than 30 days
Total demand deposits...

9,274
713,467
20
7,287
2,702,366
1,624

713,314
8
11,256
2,727,168
22,695

695,835
11
7,842
3,066,233
1,300

682,245
2
. 9,383
2,985,959
3,960

,10,184
2,702,756
21,099

7,568
674,115
17
7,134
2,908,512
1 029

5,240,799

5,380,681

5,392,222

5,595,897

5,577,629

5,840,927

403,858
119,550
98,079
41,203
47,935

402,980
103,890
135,186
35,901
48,598

423,953
102,420
101,828
33,273
63,425

401,195
188,253
159,300
35,489
56,088

148,305
125,770
39,457
59,979

408,732
137,183
98,137
34,822
69,168
62,507

676,116

54,581

54,037

59,773

61,877

61,909

64,214

62,569

54,332

51,484

51,432

57,407

fr, 070,219 6,223,842

6,221,226

6,549,583

6,473,361

6,708,883

* Includes Federal reserve bank notes.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

[In thousands of dollars.]
Nov. 10,
1915—
7,617
banks.

Dec. 31,
1915—
7,607
banks.

Mar. 7,
1916—
7,586
banks.

Mayl,
1916—
7,578
banks.

June 30,
1916—
7,579
banks.

Sept. 12,
1916—
7,589
banks.

LIABILITIES—continued.

Time deposits:
Certificates of deposit
State, county, or other municipal deposits
Other time deposits

577,039

594,863

620,119

659,437

690,438

711,587

4,611
794,306

8,094
814,460

6,119
868,915

7,267
919,731

13,464
965,785

10,588
1,014,591

1,375,956

1,417,417

1,495,153

1,586,435

1,669,687

32,151
United States bonds borrowed...
'27,538
27,948
31,775
Other bonds borrowed
4,999
4,437
4,133
4,735
Securities borrowed
76
73
115
178
42,888
Notes and bills rediscounted
42,530
31,083
31 489
Bills payable, including obligations representing money borrowed
60,567
55,886
30,873
32,231
State bank circulation outstanding
23
23
23
23
Cashlettersof credit ortravelers'
75,471
87,859
105,171
102,653
checks outstanding*
Acceptances based on imports
26,808
31,985
42,677
59,836
and exports
Liabilities otherthanthose above
13,647
9,451
10,597
stated
Total
Liabilities for rediscounts, in- 13,236,331 13,467,887 13,838,681 14,195,595
cluding those with Federal reserve bank 2

27,053
4,856
180
33,286

Total time deposits.

1,736,76
26,359
4,513
. 322

38,499
23
81,182
76,608
14,709
14,411,537
53,394

1 Prior to May 1 this item read " Letters of credit."
2
Beginning with report for Sept. 12, 1916, notes and bills rediscounted are not included in loans and
discounts, as was the previous custom.
LOANS

AND

DISCOUNTS.

As was the case during the 12 months ended September 2, 1915,
loans and discounts increased steadily at each report date during the
year ended September 12, 1916. The greatest increase between report
dates is shown on November 10, 1915, when loans were $477,249,000
greater than on September 2, 1915. The proportion of loans to total
assets remained approximately 55 per cent except that on May 1 the
proportion was a little less than 54 per cent.
CLASSIFICATION OF LOANS AND DISCOUNTS.

A new item appears in the classification of loans and discounts on
June 30, 1916, namely, "Acceptances of other banks discounted/7
and as this item represents a new class of business, the aggregate held
on that date added to the loans and discounts the sum of $24,500,000.
Reference to the following table shows that while the aggregate loans
have increased since June 23, 1915, the percentages of the various
classifications remain practically the same with few exceptions. The
percentage of demand paper secured by collateral is greater by about
1.8 per cent, and time paper secured by collateral, other than stocks
and bonds, decreased 1.8 per cent.
The increase in the total loans is distributed among central reserve
cities, other reserve cities, and banks located elsewhere instead of
being confined to the reserve city banks, as was the case in June, 1915.
The table also shows changes in the amounts and percentages of the
various classes of paper held by banks at the time of the June calls
in 1914, 1915, and 1916.

BEPORT OF THE COMPTROLLER OF THE CURRENCY.
[In thousands of dollars.]
June 30, 1914.
Class.

June 23, 1915.

June 30, 1916.

Amount.

Per
cent.

616,911
1,036,976

9.6
16.1

611,698
883,812
184,822

2.8

223,639

2.9

3,403,353

52.9

3,264,347
866,767

49.0
13.0

3,760,225
1,029,612

49.0
13.4

1,372,829 21.4

697,930

10.4

661,338

8.6

150,595

2.3

160,633
24,500

2.1
3

6,659*971 100.0

7,679,167

100.0

A M O U N T A N D CLASSIFICATION O F L O A N S BY N A T I O N A L B A N K S I N
CENTRAL R E S E R V E C I T I E S , E T C .

THE

On demand, paper with one or more individual
or firm names (not secured by collateral)
On demand, secured by stocks and bonds
On demand, secured by other personal securities,
s
including merchandise, warehouse receipts, etc.
On time, paper with one or more individual or
firm names (not secured by collateral)
On time secured by stocks and bonds
On time, secured by other personal securities,
including merchandise, warehouse receipts, etc.
Secured by real estate mortgages or other liens
on realty
Acceptances of other'banks discounted
Total

6,430,069 100.0

Per
cent.

Amount.

9.2
13.3

660,213
1,159,007

Per
cent.

8.6
15.1

In connection with the foregoing general statement, and for purposes of comparison, there is submitted herewith similar information based upon the June 30, 1916, returns from the national banks
in each of the central reserve cities, other reserve cities, elsewhere
in the country, and in the aggregate:
Total loans on June SO, 1916.
New York.
On demand, paper with one or more individual
or firm names (not secured by collateral)
On demand, secured by stocks and bonds
On demand, secured by other personal securities, including merchandise, warehouse receipts, etc
On time, paper with one or more individual or
firm names (not secured by collateral)
On time, secured by stocks and bonds
On time, secured by other personal securities,
including merchandise, warehouse receipts,
etc
Secured by real estate mortgages or other liens
on realty
Acceptances of other banks discounted
Total

Chicago.

$29,233,000
531,580,000

$22,901,000
41,699,000

$59,743,000
585,791,000

46,267,000

17,024,000

4,662,000

67,953,000

250,286,000
48,507,000

61,629,000
12,529,000

886,445,000
389,131,000

61,294,000

36,013,000

10,284,000

107,591,000

874,000
15,783,000

907,000
4,664,000

763,000

2,544,000
20,447,000

1,587,656,000

422,001,000

109,988,000

2,119,645,000

On demand, paper with one or more individual or firm
names (not secured by collateral)
On demand, secured by stocks and bonds
On demand, secured by other personal securities, including merchandise, warehouse receipts, etc
On time, paper with one or more individual or firm
names (not secured by collateral)
On time, secured by stocks and bonds
On time, secured by other personal securities, including
merchandise, warehouse receipts, etc
Secured by real estate mortgages or other liens on realty.
Acceptances of other banks discounted

$7,609,000
12,512,000

Central reserve cities.

574,530,000
328,095,000

Other reserve
cities.

Total

St. Louis.

$195,599,000
308,947,000

Country
banks.

$404,871,000
264,269,000

Total
United States.

$660,213,000
1,159,007,000

76,690,000

78,996,000

223,639,000

1,007,920,000
300,398,000

1,865,860,000
340,083,000

3,760,225,000
1,029,612,000

191,650,000
28,270,000
2,505,000

362,097,000
129,819,000
1,548,000

661,338,000
160,633,000
24,500,000

2,111,979,000 j 3,447,543,000

7,679,167,000

REPORT OF THE COMPTROLLER OF THE CURRENCY.
LOANS BY NATIONAL BANKS IN RESERVE CITIES, ETC.

The amount, distribution, and proportion of loans and discounts
in the banks in the city of New York, in all central reserve cities,
other reserve cities, and in country banks are shown in the accompanying table:
[In thousands of dollars.]
Loans.
Banks in—

June 30, 1914.

June 23, 1915.

June 30,1916.

Amount.

1,061,096

16.5

1,232,566

18.5

1,587,656

1 1,499,520 23.3

1,678,657

25.2

2,119,645

27.6

1,764,775 26.5

2,111,979

27.5

3,197,989 49.7
3,232,080- 50.3

New York
New York
Chicago
St. Loins
Other reserve cities

Per
cent.

3,443,432
3,216,539

4.231,624
3,447,543

55.1
44.9

6,430,069 100.0

6,659,971 100.0

1,698,469

All reserve cities
Country
Total, United States

26.4

Per
cent.

51.7
48.3

Amount.

Per
cent.
20.7

7,679*, 167 100.0

LOANS BY NATIONAL BANKS IN NEW YORK.

As about 21 per cent of the loans of all national banks on June
30, 1916, were made by banks located in the city of New York, an
increase of more than 2 per cent since June 1915, the following
statement is of interest as showing the amount and character of
loans by banks in that city at date of the June calls, 1912 to 1916,
inclusive:
[In thousands of dollars.]

Classification.

June 14, June 4,
June 30,
1914—
1912—
1913—
37 banks. 36 banks. 33 banks.

On demand, paper with one or more individual
or firm names (not secured by collateral)
17,797
On demand, secured by stocks and bonds
On demand, secured by other personal securities, I 326,897
including merchandise, warehouse receipts, etc.
On time, paper with one or more individual or
firm names (not secured by collateral)
390,964
On time, secured by stocks and bonds
On time, secured by other personal securities,
inoluding merchandise, warehouse receipts, etc. 223,410
Secured by real estate mortgages or other liens on
realty ...
Acceptances of other banks discounted
Total

959,068

June 23, June 30,
1915—
1916—
33 banks. 33 banks.

13,487
302,904

12,953
372,092 /
t

30,867
357,146
29,635

29,233
531,580
46,267

367,784

421,383

473,652

574,530

202,792

f
254,668 \
I

248,947
83,600
8,719

328,095
61,294
874

1,232,566

1,587,656

15,783
886,967

1,061,096

LOANS MATURING IN 90 DAYS OR LESS.

The following is a classification of the loans held on June 30, 1916,
by banks in central reserve cities, other reserve cities and outside
of reserve cities, showing separately the amounts in each locality
which mature in 90 days or less and over 90 days.

REPORT OF THE COMPTROLLER OF THE CURRENCY.
90-day loans on June 30, 1916.
[In thousands of dollars.]"
New
York.

Classes.

On demand, paper with one or more
individual or firm names (not secured by collateral)
On demand, secured by stocks and
bonds
On demand, secured by other personal securities, including merchandise, warehouse receipts, etc.
On time, paper with one or more individual or firm names (not secured by collateral)
On time, secured by stocks and
bonds
On time, secured by other personal
securities,including merchandise,
warehouse receipts, etc
Secured by real-estate mortgages or
other liens on realty
Acceptances of other banks discounted
Maturing in 90 days or less
Maturing ta over 90 days
Total loans . -

St.
Chicago. Louis.

Central
reserve
cities.

Other
reserve
cities.

Country.

Total.

18,971

8,024

4,753

31,748

108,084

223,932

363,764

26Q,160

14,794

8,009

282,963

148,162

146,336

577,461

19,510

8,268

3,016

30,794

37,630

49,763

118,187

339,964 150,239

34,245

524,448

661,537 1,347,442

2,533,427

199,835

23,879

7,898

231,612

185,648

242,015

659,275

36,632

13,855

5,278

55,765

113,266

168,612

337,643

391

456

338

1,185

11,249

34,905

47,339

13,853

4,664

18,517

853

696

20,066

889,316 224,179 63,537 1,177,032 1,266,429 2,213,701
698,340 197,822 46,451 942,613 845,550 1,233,842

4,657,162
3,022,005

1,587,656 422,001 109,988 2,119,645 2,111,979 3,447,543

7,B79,167

The aggregate paper maturing in 90 or less days held on June 23,
1915, was $3,906,617,000 and of paper maturing in over 90 days,
$2,753,355,000. The shorter-time paper therefore increased during
the year by $750,545,000, or over 19 per cent, as compared with the
increase in the longer-time paper of $268,650,000, or over 9 per cent.
OVERDRAFTS.

Overdrafts show no great variation in amount during the year, the
largest amount appearing on September 12, 1916, when they were
$7,839,000, or thirteen, one-hundredths of 1 per cent of deposits subject to check. This sum is an increase of $2,778,000 since September 2, 1915, when overdrafts to the amount of $5,061,000, or eleven
one-hundredths of 1 per cent of deposits subject to check, were
reported.
The lowest point for the year was in March, when accommodations
of this character were $5,493,000.
UNITED STATES BONDS.

The aggregate of United States bonds, which was $781,726,000
on September 2, 1915, has steadily decreased at each call date during
the year, reaching the lowest point on September 12, 1916, when
the amount was $729,777,000, a decrease of $51,949,000. This
reduction is occasioned mainly by retirement of national-bank
circulation. The bonds thus disposed of by national banks were
nearly all purchased by the 12 Federal reserve banks, whose holdings
on October 31, 1916, including $11,267,000 one-year 3 per cent notes,
aggregated $51,859,200.

REPORT OF THE COMPTROLLER OF THE CURRENCY.
OTHER BONDS; SECURITIES, ETC.

An increase of more than $405,000,000 is shown in the aggregate
of ^bonds and securities other than United States bonds between
September 2, 1915, and September 12, 1916, the periods of greatest
increase in these investments being between December 31, 1915, and
March 7, 1916, when the aggregate increase was $89,638,000, and
June 30 and September 12, when the increase was $96,795,000.
STOCKS.

The aggregate of stock other than stock of Federal reserve banks
has varied but little, and on September 12, 1916, was only $93,000
more than on November 10, 1915. The amount of stock in the
Federal reserve banks decreased slightly between December 31, 1915,
and March 7, 1916, but on May 1, 1916, it shows an increase of
$183,000 over the amount held on November 10, 1915. It again
decreased by $50,000 on June 30, after which it again increased by
$272,000, and on September 12, 1916, it aggregated $53,923,000.
The net increase since November 10, 1915, is $405,000.
INVESTMENT SECURITIES OF NATIONAL BANKS CLASSIFIED.

The investments of national banks in United States bonds, including premiums, and in other bonds and securities and stocks on June
30, 1916, amounted to $2,351,960,000, an increase in the aggregate
of $283,591,000 since June 23, 1915.
In the following table are shown these various investments in June,
1915 and 1916.
[In thousands of dollars.]
Classification.
State, county, and municipal bonds
Railroad bonds
Other public-service corporation bonds
All other bonds (domestic)
Warrants, claims, judgments, etc
Foreign Government bonds
Other foreign bonds and securities
Stocks, Federal reserve bank
Stocks, all other
Total
United States bonds
Total bonds of all classes

June 23,
1915.
244,473
379,191
220,304
246,630
53,341
33,787
13,402
54,200

June 30,
1916.
278,180
467,629
274,928
301,503
48,521
116,768
40,303
53,651

39,588

39,272

1,284,916
783,453

1,620,755
731,205

2,068,369

2,351,960

A large increase will be noted in the foregoing table in the amount
invested in foreign and other Government securities. The increase
in these investments for the period in question is $109,882,000.
The increase in investments in domestic bonds (exclusive of United
States bonds), as indicated by the first four items of the table, amounts
to $231,643,000, or more than double the amount of increase in
foreign securities.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

The following table shows domestic and foreign securities held in
June of each year since these securities have been separately classified:
[In thousands of dollars.]
June 14,
1912.

June 4,
1913.

June 30,
1914.

State, county, and municipal bonds
Railroad bonds
Other publicservice corporation bonds
All other bonds

17fy 322
354,321
195, 453
223,501

175,345
345,204
197,460
220,121

176,017
341,691
•218,215
227,605

Total
Foreign Government bonds
Other foreign bonds and securities
Total

952,597

938,130

963,528

8,615
4,426

17,961
3,510

10,019
5,609

33,787
13, 402

116, 768
40,303

13,041

21, 471

15,628

47,189

157,071

Classification.

June 23,
1915.
244,473
379,191
220,304
246,630

June 30,
1916.
278,180
467,629
274,928
301,503

1,090,598 | 1,322,240

BANKING PREMISES AND OTHER REAL ESTATE OWNED.

The amount invested in banking house and furniture and fixtures
shows an increase at each report date, the aggregate being $12,943,000
greater on September 12, 1916, than on September 2, 1915.
Other real estate owned increased gradually in amount up to May 1,
when it aggregated $47,787,000 or $3,833,000 more than on September 2, 1915. Since May 1 the amount has decreased at each
report date, so that the increase for the year is but $3,673,000. The
decrease in the amount since May 1 indicates some revival in the
demand for real estate, enabling banks to liquidate property of this
description taken for debt, etc.
DUE FROM BANKS.

The amount due from the Federal reserve banks, which is a part of
the reserve required by law to be maintained by national banks, shows
a material increase at each report date except May 1, 1916, when a
slight reduction occurred. Reference to the computation of reserve
made up from reports of condition on May 1, 1916, however, shows
that balances with Federal reserve banks at the reduced requirement
were $31,825,000 in excess of the amount which the law required to be
so deposited on that date. Under section 19 of the Federal reserve
act the reserve on deposits required to be kept with Federal
reserve banks increased by one-twelfth in the case of country banks
and one-fifteenth in reserve city banks (exclusive of central reserve
cities) on November 16 and May 16.
On December 31, 1915, the first date after the November increase,
deposits with the Federal reserve banks aggregated $403,985,000, an
increase of $37,800,000 over the amount shown November 10, and of
$88,576,000 over September 2, 1915. On June 30, 1916, the first
date after the second increase in the required amount, the aggregate
shows an increase in the amount deposited of $47,912,000 over the
figures appearing on the preceding date, May 1, and of $160,694,000
over September 2, 1915. Between June 30 and September 12, 1916,
however, the largest increase for the year is shown, although no additional amount was required by law to be so deposited. The increase
between these dates amounted to $54,925,000, probably due to the

REPORT OF THE COMPTROLLER OF THE CURRENCY.

fact that the Federal reserve banks began on July 15, 1916, to exer-.
cise the functions of a clearing house for national and other member
banks.
The following table shows increases and decreases of deposits with
the Federal reserve banks since the beginning of the system:
Date.
Dec. 31,1914 (first report)
Mar. 4,1915
May 1,1915
June 23,1915
Sept. 2,1915
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

Due from
Federal reserve banks
$261,460,000
290,678,000
290,413,000
312,658,000
315,409,000
366,185,000
403,985,000
431,195,000
428,191,000
476,103,000
531,028,000

Increase.

$29,218,000

*22*245'666

$265,000

2,751,000
50,776,000
37,800,000
27,210,000
3,004,000

47,912,000
54,925,000
272,837,000
3,269,000

Net increase.

Decrease.

3,269,000

269,568,000

The aggregate amount due from approved reserve agents (national
banks located in reserve cities that have been approved by the
comptroller as reserve agents) on September 2, 1915, $811,380,000,
increased by November 10, 1915, to $895,830,000, and decreased on
December 31 to $834,392,000, the lowest amount for the year. On
March 7, 1916, however, the aggregate had increased by $188,250,000
reaching $1,022,642,000. A decrease is noted at the next date, May
1, and again on June 30, but on September 12 the aggregate had increased to $936,339,000 and shows a net increase for the year of
$124,959,000.
Amounts due from all other banks and bankers show a net increase
of $182,768,000 between September 2, 1915, when they were $597,832,000 and September 12, 1916, when they were $780,600,000. The
lowest point for the year was reached June 30, and the highest
September 12.
The three classes of bank deposits combined aggregated $1,724,621,000 on September 2, 1915, and $2,247,967,000 on September 12,
1916, a net increase of $523,346,000 in bank deposits.
EXCHANGES FOR CLEARING HOUSES.

The volume of exchanges shows an increase on September 12,
1916, over the aggregate on September 2, 1915, of $105,395,000, and
at no time during the year were they as low as on September 2, 1915.
The greatest business as indicated by these exchanges appears on
December 31, 1915, and May 1, 1916. Since the latter date the aggregate has decreased at both report dates. The increases and decreases in this account, however, can not be considered as evidence
of an increase or decrease in the business activity, for since July 15,
1916, a large volume of clearings has been transferred from correspondent banks to the Federal reserve banks, and as this feature
of the Federal reserve system is extended, exchanges for clearing
houses will be proportionately lower.

REPORT OF THE COMPTROLLER OF THE CURRENCY.
BANK CIRCULATION.

For the first time there appears in the abstract as a separate item,
Federal reserve bank notes. These notes issued by the Federal
reserve banks and secured by United States Government bonds were
reported by the banks for the first time on May 1, 1916, but were
included in the abstract for that date with Federal reserve notes.
This was also the case on June 30. The Federal reserve circulating
notes held have increased between September 2, 1915, and September
12, 1916, by $6,410,000.
Bills of other national banks were held in a less amount on June 30,
1916, than on September 2, 1915, although the calls between these
dates show a greater amount held. After June 30, however, the
amount increased and on September 12, 1916, shows $4,619,000 more
than on September 2, 1915, the increase between June 30 and September 2 being $8,118, 000.
SPECIE AND OTHER LAWFUL MONEY.

The aggregate of specie (gold and silver coin and gold and silver
certificates) and legal tender notes have decreased between September 2, 1915, and September 12, 1916, by $56,822,000 and $17,664,000,
respectively. A decrease in the amount of lawful money was also
noted for the year ended September 2, 1915. The only items of
specie showing an increase for the current report year are gold
coin which increased $2,128,000, gold clearing-house certificates
$12,977,000, and fractional silver coin $8,000. This decrease is
wholly due, as explained above, to the transfer of funds from the
banks vaults to the Federal reserve banks.
LIABILITIES OF NATIONAL BANKS,
CAPITAL, SURPLUS, AND UNDIVIDED PROFITS.

While the capital stock of national banks decreased between September 2, 1915, and September 12, 1916, by $1,299,000, owing to the
decrease in the number of banks occasioned by consolidation, etc., as
hereinbefore indicated, the surplus fund increased during the same
period by $8,831,000 and the undivided profits by $33,874,000, so
that while the actual amount invested in capital stock is a trifle less,
the amount of working capital has increased in the sum of $41,406,000,
or nearly 2 per cent since September 2, 1915.
It will be noted that two new items appear in the abstract for September 12, 1916, namely, "Amount reserved for taxes accrued ;; and
"Amount reserved for all interest accrued." Both of these items
prior to that date were included in the total of undivided profits and
are so included in making the comparison between capital, surplus,
and profits.
The usual decrease is noted in profits on December 31 and June 30,
owing to the payment of dividends and also the usual increase in the
surplus fund on the same dates. An increase in the surplus fund
necessarily accompanies the declaration of dividends as section 5199 requires that at least one-tenth of the net earnings of the preceding period
shall be carried to the surplus fund whenever a dividend is declared
by a bank until the surplus fund of that bank equals 20 per cent of its
capital. The aggregate of surplus of all banks on September 12, 1916,

REPORT OF THE COMPTROLLER OF THE CURRENCY.

was over 68 per cent of the capital, showing the extent to which many
of the banks have built up their surplus fund far beyond the requirements of law, thereby strengthening their business by furnishing
working capital and greater protection against loss to the depositors
and other creditors, instead of distributing all available earnings as
dividends.
CIRCULATION.

As was the case during twelve months ended September 2, 1915,
the national-bank notes have shown a reduction at each report date
during the year ended September 12, 1916, the net decrease for the
year being $44,382,000. The decrease in circulation is due to the
advance in the price of the Government bonds by which the circulation is secured, and the sale of bonds by the banks at the advanced
figures.
The volume of circulation outstanding at the date of each call
during the year ended September 12, 1916, issued by national banks
in New York, the three central reserve cities, other reserve cities
and in the country outside of reserve cities is shown in the following
table in millions of dollars:

Dates.

Nov. 10 1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

New
York
banks.

35.2
35.7
35.0
32.2
32.2
31.8

D U E TO

New
York,
Chicago,
and St.
Louis
banks.

Other
reserve
city
banks.

63.6
63.3
55.1
50.9
49.4
48.8

172.1
171.9
165.6
160.6
159.1
159.3

All
reserve
city
banks.

Country
banks.

235.7
235.1
220.7
211.5
208.5
208.1

477.8
478.2
475.1
470.7
467.6
466.0

Total.

713.5
713.3
695.8
682.2
676.1
674.1

BANKS.

The aggregate amounts due on open account to Federal reserve
banks, approved reserve agents and other banks and bankers on
September 2, 1915, $2,466,056,000, had increased on September 12,
1916, to $2,915,663,000 or by $449,607,000.
The amounts due to Federal reserve banks are in all cases exceedingly small, the largest amount since November 10, 1915, being
$17,000 on September 12, 1916. Amounts owing to approved
reserve agents are likewise small and unimportant. In both classes
of banks national banks maintain the reserve required by law and
necessarily are very seldom debtors to them on open account.
INDIVIDUAL DEPOSITS.

The aggregate of time and demand deposits on September 2, 1915,
was $6,762,183,000 as compared with $8,445,649,000 on September
12, 1916, or an increase of $1,683,466,000 for the year. Of this
increase, $1,282,273,000, or 76 per cent is in demand deposits and
$401,193,000 or 24 per cent in time deposits.
BONDS AND MONEY BORROWED.

Liability on account of bonds and other securities borrowed, bills
payable and rediscounts have decreased at each report date during

REPORT OF THE COMPTROLLER OF THE CURRENCY.

the year excepting May 1, and June 30, when only a nominal increase
is noted. The aggregate of these liabilities on September 2, 1915,
was $145,624,000 or less than one-half of the amount in October,
1914, including clearing-house loan certificates then outstanding.
On September 12, 1916, a further noticeable decrease is shown in
the amount borrowed by national banks; the aggregate on that date
was $123,087,000, or $22,537,000 less than was owing on September 2,
1915. On November 17, 1916, the money borrowed, including bills
payable and rediscounts, had been reduced still further to $104,388,000, a reduction as compared with September 12, 1916, of $18,699,000. These figures compare with borrowings of $140,680,000 in
November, 1915; $254,079,000 in October, 1914; $150,487,000 in
October, 1913; $110,656,000 in November, 1912; and $98,614,000 in
December, 1911.
RESERVE.

The following table shows the percentages of reserve held by the
national banks at each report date, and that there has been a large
surplus in the reserve in every section throughout the year:

Date of call.

Amount
Amount
Per
of reserve cent - of excess
reserve
held (in reserve (in thouthousands held. sands of
of dollars).
dollars).

647,996 24.66
605,193 22.74
631,236 22.88
578,424 21.39
553,552 21.32
542,307 20.39

175,098
126,048
134,721
91,771
86,170
63,559

625,303 27.39
576,819 25.10
693,636 27.84
628,305 25.15
596,186 23.80
659,361 24.80

282,905

232,050
319,976
253,661
220,496
260,487

25.93
23.83
25.24
23.20
22.54
22.59

458,003
358,098
454,697
345,432
306,666
324,046

89,077 23.87
84,070 22.83
81,475 22.32
82,622 21.97
82,192 21.57
96,972 23.66

44,289
39,904
37,686
37,491
36,457
47,781

231,915
240,644
253,265
255,660
252,320
274,687

22.57
23.18
23.77
23.40
22.82
23.59

108,598
116,059
125,382
124,562
119,609
134,969

122,336
129,821
150,082
148,962
145,767
157,177

23.97
24.23
27.54
27.31
26.79
26.22

61,090
65,807
84,686
83,498
80,481
85,250

1,273,299
1,182,012
1,324,872
1,206,729
1,149,738
1,201,668

COUNTRY BANKS.

New England States:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12, 1916
Eastern States:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916.....
Sept. 12,1916
Southern States:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30, 1916
Sept. 12, 1916

Amount
of excess
reserve
(in thousands of
dollars).

COUNTRY BANKS—Ctd.

RESERVE CITIES.

Central reserve cities:
Nov. 10,1915
Dec. 31,1915 . . .
Mar. 7,1916
...
May 1,1916
June 30,1916
Sept. 12,1916
Other reserve cities:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916 . . . .
June 30,1916
Sept. 12,1916
Total reserve cities:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

Date of call.

Amount
Per
of reserve cent
held (in reserve
thousands held.
of dollars).

Middle W e s t e r n
States:
Nov. 10,1915
Dec. 31,1915
Mar, 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
Western States:
Nov. 10,1915
Dec. 31, 1915
Mar. 7,1916......
May 1,1916
June 30,1916
Sept. 12, 1916
Pacific States:
Nov. 10,1915
'Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
Nonmember banks
(Alaska and Hawaii):
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30, 1916
Sept. 12,1916
Total States:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
.
Sept. 12,1916
Total United States:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30, 1916
Sept. 12, 1916

217,718 25.53
226,240 26.06
272,073 29.05
259,344 27.74
250,941 26.79
267,486 26.89

115,384
122,071
159,701
147,140
138,556
148,100

105,343 30.19
114,972 31.58
133,843 34.65
133,015 34.29
125,801 32.11
151,227 34.14

63,477
71,279
87,490
86,470
78,785
98,069

66,820 29.12
66,000 28.84
69,617 30.23
72,065 30.18
67,842 28.72
84,103 31.51

39,283
38,538
41,982
43,419
39,496
52,075

2,282 51.93
2,498 53.11
2,223 49.91
2,071 45.98
1,895 40.47
2,170 43.03

1,623
1,793
1,555
1,396
1,193
1,414

24.96
25.38
27.24
26.64
25.75
26.62

433,744
455,451
538,482
523,976
494,577
567,658

2,108,790 25.54
2,046,257 24.46
2,287,450 26.05
2,160,468 24.60
2,076,496 23.86
2,235,490 24.29

891,747
813,549
993,179
869,408
801,243
891,704

835,491
864,245
962,578
953,739
926,758
1,033,822

REPORT OF THE COMPTROLLER OF THE CURRENCY.

RESERVE HELD IN EACH FEDERAL RESERVE DISTRICT.

The following table shows at each report date for the year the legal
reserve and excess in reserve over requirements held by member banks
in each of the Federal reserve districts. State and savings banks and
trust companies which have come into the system are included.
[In thousands of dollars.]
District and date.
District No. 1:

Nov. 10,1915
Dec. 31,1915.
Mar. 7,1916..
May 1,1916..
June 30,1916.
Sept. 12,1916
District No. 2:
Nov. 10,1915.
Dec. 31,1915.
Mar. 7,1916..
May 1,1916..
June 30,1916.
Sept. 12,1916
District No. 3:
Nov. 10,1915.
Dec. 31,1915.
Mar. 7,1916..
May 1,1916..
June 30,1916.
Sept. 12,1916
District No. 4:
Nov. 10,1915.
Dec. 31,1915.
Mar. 7,1916..
May 1,1916..
June 30,1916.
Sept. 12,1916
District No. 5:
Nov. 10,1915.
Dec. 31,1915.
Mar. 7,1916..
May 1, 1916..
June 30,1916.
Sept. 12,1916
District No. 6:
Nov. 10,1915.
Dec. 31,1915.
Mar. 7,1916..
May 1,1916..
June 30,1916.
Sept. 12,1916
District No. 7:
Nov. 10,1915.
Dec. 31,1915.
Mar. 7,1916..

Reserve
held.

Excess
reserve
held.

202,412
172,325
164,270
178,632
154,566
167,858

95,207
69,024
73,156
72,084
48, 717
59,558

684,756
642,891
661,175
614,005
596,181
600,237

226,923
180,252
195,145
149,703
147,072
125,548

165,065
153,367
178,335
165,101
154,458
177,600

70,659
60,496
78,409
64,596
55,417
73,033

182,146
189,993
224,318
215,710
232,217
231,192

83,956
88, 704
115,392
106,135
117,248
109,930

71,026
70,119
72,814
74,166
78,945
85,911

27,412
25,828
27,990
28, 411
31, 773
35,867

45,834
49, 589
59,292
62, 873
60,533
66,781

19,288
21,382
30,345
32,474
30,232
33,124

245,258
241,199
282,003

87, 719
81,227
109,890

Reserve
held.

District and date.
District No. 7—Continued.

May 1,1916
June30,1916
Sept. 12,1916
District No. 8:
Nov. 10,1915..
Dec. 31, 1915
Mar. 7, 1916
May 1,1916
June 30,1916
Sept. 12,1916
District No. 9:
Nov. 10,1915
Dec. 31, 1915
Mar. 7, 1916
May 1,1916
June 30,1916
Sept. 12,1916
District No. 10:
Nov. 10,1915
Dec. 31, 1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
District No. 11:
Nov. 10,1915
Dec. 31, 1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
District No. 12:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
Total banks:
Nov. 10,1915
Dec. 31, 1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

Excess
reserve
held.

277,769
255,062
289,307
59,701
63,459
70,924
72,244
72,187
73,679

j
...J

19.813
22,426
28,306
26,761
26,373
24,609

133,727
135,473
142,425
132,081
115,606
121,063

1
I
1
;

99,535
80,180
104,254

80,039
79,284
82,861
73,016
58,655
60,276

124,821
132,688
177,173
171,519
164,185
212,722

60,547
65,647
104, 080
96,244
87, 883
126,217

66,888
68,284
88,077
81,270
75,812
86,703

33,272
33,264
52,268
46,686
42,279
46.814

167,159
163,360
164,421
162,548
154,042
178,516

97, 795
93,275
94,228
90,008
81,053
97,405

2,148,793
2,082,747
2,285,227
2,207,918
2,113,794
2,291,569

902,630
820,809
992,070
885,653
806, 882
896,635

In connection with the foregoing statistics in relation to reserves,
the following statement is submitted, showing in millions of dollars
the total reserve held, the amount required, and the excess held on
September 12, 1916, by national banks in each of the 12 Federal
reserve districts.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Reserves held by national banks in each Federal reserve district, as of Sept. 12, 1916, the
reserves required, and the reserves held in excess of the amount required.
[In millions of dollars.]

District.

No. 1 (Boston).
No. 2 (New Y o r k ) .
No. 3 Philadelphia).,
No. 4 Cleveland)
No. 5 Richmond)
No. 6 Atlanta)
No. 7 Chicago)
No. 8 St. Louis)
No. 9 Minneapolis)..
^
No. 10 (Kansas C i t y ) .
No. 11 (Dallas)
No. 12 (San Francisco) .
Total.

Reserve Reserve Excess reserve
required.
held.
held.
168
600
178
231
86
67
289
74
121
213
87
178
2,292

108
474
105
121
50
34
185
49
61
87
40
81

60
126
73
110
36
33
104
25
60
126
47
97
897

METHODS OF CALCULATING RESERVE TO CONFORM TO THE PROVISIONS
OF THE FEDERAL RESERVE ACT FOR EACH CLASS OF BANKS.

While the reserve to be held by banks in central reserve cities is
held in the vaults and with the Federal reserve bank in the same
proportions as at the beginning of the system, under section 19 of
the Federal reserve act the proportions of reserve required to be kept
by other reserve city and country banks in Federal reserve banks
and that which may be kept with approved reserve agents have
changed on November 16, 1915, and May 16 and November 16, 1916.
For the 12 months from November 16, 1916, to November 16,1917,
other reserve city banks must keep six-fifteenths with the Federal
reserve bank and may have three-fifteenths with approved reserve
agents, and country banks must maintainfive-twelfthsof the required
reserve with the Federal reserve bank, and two-twelfths may be with
reserve agents. No further change will occur in the proportions
of reserve until November 16, 1917, unless the law is amended in
the meantime, when the final provision goes into effect requiring
all of the reserve to be kept in the vaults of the bank and with
Federal reserve banks, thus discontinuing the use of national banks
as reserve agents.
The Federal Reserve Board, acting under authority granted in
section 11 of the Federal reserve act, as amended September 7, 1916,
has issued a ruling permitting all member banks to carry in the
Federal reserve banks of their respective districts any portion of
their reserves now required by section 19 of the Federal reserve act
to be held in their own vaults.
Forms are submitted herewith indicating the method of calculating
the reserve requirements under the Federal reserve act between
November 16, 1916, and November 16, 1917 (A) for central reserve
city banks, (B) other reserve city banks, and (C) for banks located
elsewhere than in reserve cities.
Reserve is required on all deposits of whatever character and from
whatever source.

REPORT OF THE COMPTROLLER OF THE CURRENCY.
A.

[Bank directors should bear in mind that section 5191, U. S. Revised Statutes, forbids a bank to increase its liabilities by new loans or discounts, or to declare any dividend when its reserve is below
the legal requirement.]
CALCULATION OF THE L A W F U L MONEY R E S E R V E OF NATIONAL B A N K S LOCATED IN
CENTRAL R E S E R V E C I T I E S .

No. of bank

Report of the state of lawful money reserve of the
, State of
, at
o'clock
m.,

, located at
•...,191

Items on which reserve is to be computed.
1. Due to banks other than Federal reserve banks l
Less—
2. Due from banks other than Federal reserve banks l
3. Dividends unpaid..
4. Demand deposits...
5. r\ of time deposits..
6. Gross amount
Deductions allowed:
7. Checks on other banks in the same place.
8 Exchanges for clearing house
9. Net amount
10. Eighteen per cent of this total amount is the necessary legal reserve required, which is
Requirements for net reserve and items composing reserve actually held.
LEGAL RESERVE HELD.

LEGAL RESERVE REQUIRED.

$.
You are requested to note that the Federal Re- 15. Silver dollars
Fractional silver
serve Board, acting under authority granted in secSilver certificates
tion 11 of the Federal reserve act, as amended Sept.
7, 1916, has made a ruling permitting ail member
Legal tender notes
banks to carry in the Federal reserve banks of their
Gold coin
respective districts any portion of their reserves now
Gold certificates
required by section 19 of the Federal reserve act to be
Gold certificates payable
held in their own vauits.
to order
Clearing-house certificates
for coin or legal tender....
11. With Federal reserve bank (not less
than ^ of total required reserve
16. With Federal reserve bank
shown in item 10)
%..
12. In vault
$.
17. * Totalheld
Total, items 11 and 12 (not less than
ff of total required reserve shown
in item 10)
$.
13. Remaining TV to be held in 11 and 12.. %.
14.

$..
$..
$..

Total required.

Excess in vault over amount required
$
Excess with Federal reserve bank over
amount required
$
Excess over total required reserve
$
Percent of item 17to9
%
1
Should the aggregate " Due from" exceed the aggregate "Due to " banks, both items must be omitted
from the calculation.
Deficiency in vault
Deficiency with Federal reserve bank
Deficiency in total required reserve

$.
$.
$.

REPORT OF THE COMPTROLLER OF THE CURRENCY.
B.

[This form for use from Nov. 16,1916, to Nov. 16,1917.]
[Bank directors should bear in mind that section 5191, U. S. Revised Statutes, forbids a bank to increase
its liabilities by new loans or discounts, or to declare any dividend when its reserves is below the legal
requirement.]
CALCULATION OF THE L A W F U L M O N E Y R E S E R V E OF NATIONAL B A N K S LOCATED IN
R E S E R V E CITIES NOT CENTRAL R E S E R V E C I T I E S .

No. of bank

Report of the state of lawful money reserve of the
, State of
, at
o'clock
m

located at
,191

Items on which reserve is to be computed.
1. Due to approved reserve agents i
Due to banks other than Federal reserve banks1|
Less—
2. Due from banks other than legal reserve with Federal reserve
bank and reserve agents* 2
3. Dividends unpaid
4. Demand deposits
5. -jnr of time deposits
6 Gross amount
Deductions allowed:
7. Checks on other banks in the same place
8. Exchanges for clearing house
9. Net amount
10. Fifteen per cent of this total amount is the necessary legal reserve required,
which is

Requirements for net reserve and items composing reserve actually held.
LEGAL RESERVE HELD.

LEGAL RESERVE REQUIRED.

$
You are requested to note that the Federal Re- 15. Silver dollars
Fractional silver
serve Board, acting under authority granted in
sec. 11 of the Federal reserve act, as amended
Silver certificates
Sept. 7,1916, has issued a ruling permitting all memLegal tender notes
ber banks to carry in the Federal reserve banks of
Gold coin
their respective districts any portion of their reserves
Gold certificates
now required by sec. 19 of the Federal reserve
Gold certificates payable
act to be held in their own vaults.
to order
Clearing-house certificates for coin or legal
tender...
16. With Federal reserve
11. With Federal reserve bank (not less
N
than Ty of total required reserve
*
bank
shown m item 10)
$.
17. List net balances with
12. In vault
$.
Total, items 11 arid 12 (not less than
if of total required reserve shown
lrntem 10)
$..
Total
$.
13. With approved reserve agents (not
(If more than8 T3T demore than T3^ of total required reduct excess) .
$.
serve shown in item 10)
%..
14. Total required (must agree with
item 10)
>.
Deficiency in vault
$
Deficiency with Federal reserve bank... $
Deficiency in total required reserve
$
Per cent of item 18 to 9

18.

$.
$.

Total held.

Excess in vault over amount required.. $.
Excess with Federal reserve bank over
amount required
$.
$.
% Excess over total required reserve

1
Should the aggregate " Due from" exceed the aggregate "Due to" banks, both items must be omitted
from the calculation.
2 Excess with reserve agents to be included here.
8
This subtotal must not exceed amount shown in item 13.

KEPORT OF THE COMPTROLLER OF THE CURRENCY.

c.
[This form for use from Nov. 16,1916, to Nov. 16,1917.]
[Bank directors should bear in mind that section 5191, U. S. Revised Statutes, forbids a bank to increase
its liabilities by new loans or discounts, or to declare any dividend when its reserve is below the legal
requirement.]
CALCULATION OF THE L A W F U L M O N E Y R E S E R V E OF NATIONAL B A N K S LOCATED
E L S E W H E R E T H A N I N R E S E R V E CITIES AND CENTRAL R E S E R V E C I T I E S .

No. of bank

Report of the state of lawful money reserve of the
, State of
,at
o'clock ..".. m.,

located at
,191

Items on which reserve is to be computed.
1. Due to approved reserve agentsx
Due to banks other than Federal reserve banksl
Less—
2. Due from banks other than 12 reserve with Federalreserve
legal
bank and reserve agents
3. Dividends unpaid
4. Demand deposits .
5. •& of time deposits
6. Gross amount . . . .
-Deductions allowed:
7. Checks on other banks in the same place
8. Exchanges for clearing house
9. Net amount
10. Twelve per cent of this amount is the necessary legal reserve required, which
is

Requirements for net reserve and items composing reserve actually held.
LEGAL RESERVE REQUIRED.

LEGAL RESERVE HELD.

J
You are requested to note that the Federal Re- 15. Silver dollars
Fractional silver
serve Board, acting under authority granted in secSilver cerrificates
tion 11 of the Federal reserve act, as amended Sept.
7, 1916, has made a ruling permitting all member
Legal tender notes
banks to carry in the Federal reserve banks of their
Gold coin
respective districts any portion of their reserves now
Gold certificates
required by section 19 of the Federal reserve act to
Gold certificates payable
be held in their own vaults.
to order
Clearing-house certificates for coin or legal
11. With Federal reserve bank (not less
tender
than -A of total required reserve
16. With Federal reserve
shown in item 10)
$..
bank
12. In vault
$^
17. List net balances with
agents:
Total, items 11 and 12(not less
than |f of total required reserve shown in item 10)
$..
$.
13. With approved reserve agents (not
Total
$7
more than r\ of total required re(If more than-j^, deduct
serve shown in item 10)
$.
18.
14. Total required (must agree with
. $:
Total held.
item 10)
$..
Deficiency in vault
$
Deficiency with Federal reserve bank.. .$
Deficiency in total required reserve
$
Per cent of item 18 to 9

Excess in vault over amount required... $.
Excess with Federal reserve bank over
amount required
$.
% Excess over total required reserve
$.

1 Should the aggregate "Due from" exceed the aggregate "Due to" banks, both items must be omitted
from the calculation.
2
3 Excess with reserve agents to be included here.
This subtotal must not exceed amount shown in item 13.
RELATION OF CAPITAL TO DEPOSITS, ETC., OF NATIONAL BANKS.

The proportion and variation from year to year of capital to individual deposits in national banks, capital to. loans, capital to aggregate resources, capital and surplus and other profits to individual
deposits, and lawful money held to individual deposits, are shown in
the table following for the years 1912 to 1916, inclusive.

63366°—17
4

REPORT OF THE COMPTROLLER OF THE CURRENCY.

The statement shows that the individual deposits have increased
more rapidly than capital, surplus and profits, taken collectively or
separately. The ratio of deposits to capital is $7.91 to $1. A ybar
ago it was $6.32 to $1, and the ratio to capital, surplus and profits,
is $3.99 to $1, as compared with $3.23 to $1 in September, 1915.
Items.
Capital to individual deposCapital "to loans
Capital to aggregate resources
Capital and surplus and
other profits to individual
deposits
Specie, legal tender, and balances with Federal reserve
bank to individual deposits i

Sept. 4, 1912.

Aug. 9, 1913. Sept. 12,1914. Sept. 2,1915. Sept. 12,1916.

$1.00 to $5.63 $1.00 to $5.45 $1.00 to $5.79 $1.00 to $6.32 $1.00 to 17.01
1.00 to 5.77 1.00 to 5.84 LOOto 6.04 LOOto 6.32 LOOto 7.36
1.00 to 10.48 1.00 to 10.30 LOO to 10.83 1.00 to 11.47 1.00 to 13.50
l.OOto 2.96

LOOto 2.82

LOOto 2.96

LOOto 3.23

LOOto 3.DO

1.00 to 6.58

LOOto 6.41

LOOto 6.80

LOOto 5.84

LOO to 6.50

i At the time of the reports referred to prior to Sept. 2,1915, the Federal reserve banks had not come
into existence, and the figures upon which these computations are based, for the years 1912,1913, and
1914 do not, therefore, include balances with Federal reserve banks.
CHANGES I N L O A N S , B O N D S , CASH, AND D E P O S I T S I N N A T I O N A L B A N K S .

In connection with the general summary of the condition of national
banks, as shown by their returns at date of each call during the year,
there is submitted herewith a statement, by geographical divisions,
based upon the returns for each call during the year, of the volume
of loans, investments in bonds, cash and cash items, and deposits.
Changes in volume of principal assets and in deposits, by geographical divisions, 1915-16.
, fin thousands of dollars.]
Division and dates.

Loans. 1

Cash and
Demand
Bonds, etc. 3 cash items. 3 deposits. 4

New England States:
577,238
Nov. 10,1915
Dec. 31,1915
578,230
Mar. 7,1916
579,811
May 1,1916
605,721
June 30,1916
625,032
Sept. 12,1916
624,568
Eastern States:
2,991,175
Nov. 10,1915
Dec. 31,1915
3,051,414
Mar. 7,1916
3,067,630
May 1,1916
3,085,139
June 30,1916
3,068,114
Sept. 12,1916
3,121,987
Southern States:
876,494
Nov. 10,1915
Dec. 31,1915
889,351
Mar. 7,1916
878,186
May 1,1916
889,600
June 30,1916
896,727
Sept. 12,1916
926,306
Middle Western States:
Nov. 10,1915
,
1,880,715
Dec. 31,1915
1,918,234
Mar. 7,1916
,
2,029,889
May 1,1916....
2,064,549
June 30,1916..
2,088,885
Sept. 12,1916..
2,152,153
i Includes overdrafts.
* Includes United States bonds, other bonds, stocks.
•Includes exchange for clearing house; inside checks;
reserve notes; specie and legal tender notes.
* Bank deposits not included.

Time
deposits.

202,290
203,219
209,660
207,799
206,801
213,961

73,147
76,471
67,099
96,743
73,171
71,344

564,460
551,601
553,568
581,160
572,546
591,743

77,713
80,149
81,915
92,220
104,991
103,760

999,285
1,014,440
1,074,726
1,114,451
1,107,943
1,164,146

802,172
865,020
753,227
935,307
811,011
727,746

2,649,071
2,760,304
2,702,457
2,917,361
2,860,188
2,867,662

416,596
432,958
453,631
485,556
515, 411
544,162

210,122
211,021
206,905
208,336
212,140
218,369

89,605
94,408
87,477
91,118
89,489
95,314

491,666
499,596
509,023
508,800
506,649
522,581

241,656
256,105
248,598
284,959
247,125
266,013

637,709
655,858
670,786 •
669,525
662,019
711,596
, 402,891
L, 429,841
L, 467,941
1,523,515
1,518,499
]1,595,497

163,705
166,489
182,843
195,975
204,832
211,256
473,910
486,240
507,034
529,556
547,860
570,988

outside checks; national bank notes; Federal

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Changes in volume of principal assets and in deposits, by geographical divisions,
1915-16—Continued.
[In thousands of dollars.]
Loans

Division and dates.
Western States:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
Pacific States:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
Nonmember banks (Alaska and Hawaii)
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
Total United States:
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

Cash and
Bonds, etc. cash items.

Demand
deposits.

Time
deposits.

471,025
475,869
483,979
496,292
517,463
530,708

105,023
107,193
107,556
109,016
109,983
113,165

49,331
52,215
51,443
54,754
53,960
59,799

387,091
399,270
418,717
421,295
424,402
460,312

135,594
137,590
148,367
157,885
167,076
172,923

442,338
449,104
453,730
469,710
486,598
509,251

150,997
152,918
149,347
154,544
154,265
160,026

67,684
69,322
68,086
67,018
65,581
74,814

424,898
422,684
403,714
432,791
431,349
477,308

108,126
113,521
120,917
124,644
129,107
133,375

2,155
2,239
2,279
2,411
2,516
2,703

1,476
1,437
1 462
1,526
1,528
1,522

979
1,164
854
1,131
1,190
1,226

4,099
4,284
4,043
4,358
4,765

312
470
446
599
410
302

7,241,140
7,364,441
7,495,504
7,613,422
7,685,335
7,867,676

2,160,859
2,189,824
2,258,679
2,304, 472
2,299,309
2,393,770

1,324,574
1,414,705
1,276,784
1,531,030
1,341,527
1,296,256

6,070,219
6,223,842
6,221,226
6,549,583
6,473,361
6,708,883

1,375,956
1,417,417
1,495,153
1,586,435
1,669,687
1,736,766

DEVELOPMENT IN NATIONAL BANKING.

The following table shows the growth in the aggregate resources
and liabilities and in the various items making up the total since the
Federal reserve system went into effect. The first figures given are
those shown by the Fall report of the year preceding the establishment of the Federal reserve banks, the first figures rendered after
the beginning of the system, the Fall calls for 1915 and four calls
for 1916. It will be noted that through the reduction of reserve
requirements $125,377,000 less lawful money is held than on October
21, 1913, while the combined capital, surplus, and profits have
increased by $49,043,000. During the same period individual
deposits increased from $8,346,011,000 to $11,362,341,000 and loans
and discounts from $6,260,878,000 to $7,859,837,000. Acceptances,
which did not exist in so far as national banks were concerned in
October, 1913, were held to the amount of $76,608,000 on September
12, 1916:
[In thousands of dollars.]

Date.

Central
reserve
city
banks.

Other
reserve
city
banks.

Country
banks.

1,347,891
1, 452,949
2,060,179
2,128, 728
2,180, 515
2,155,577
2,119,645
2,165, 890

1,646,371
1,700,649
1,869,749
1,917,991
1,983,307
2,056,516
2, 111, 979
2,186,478

3,266,616
3,194,039
3,304, 001
3,311,013
3,326,189
3,394,335
3,447,543
3, 507,469

Aggregate.

LOANS AND DISCOUNTS.

Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

6,260,878
6,347,637
7,233,929
7,357,732
7,490,011
7,606,428
7,679,167
7,859,837

REPORT OF THE COMPTROLLER OF THE CURRENCY.
[In thousands of dollars.]

Date.

Central
reserve
city
banks.

Other
reserve
city
banks.

Aggregate.

UNITED STATES BONDS.

85,478
81.802
76,510
76,148
63,931
59, 043
57,867
56,966

187,783
196,955
193,328
190,995
184,414
179,138
176,872
176,836

527,264
516,321
507,927
507,495
505,568
500,649
496,466
495,975

800,525
795,078
777,765
" 774,638
753,913
738,830
731,205
729,777

207,335
230,801
285,736
287,990
320,015
336,650
319,377
348,083

251,802
317,478
324,254
335,080
360,300
373,452
369,518
383,654

647,950
722,164
733,832
752,080
784,472
815,465
839,937
892,890

1,107,087
1,270,443
1,343,822
1,375,150
1,464, 787
1,525,567
1,528,832
1,624,627

3,362
10,178
10,178
10,182
10,197
10,197
10,207

4,747
14,139
14,285
14,246
14,211
14,210
14,390

9,820
29,200
29,226
29,200
29,293
29,244
29,326

17,929
53,517
53,689
53,628
53, 701
53,651
53,923

133,560
211,776
202,050
217, 713
213,438
203,258
216,180

59,992
73,459
94,084
101, 583
99,232
123,441
150,151

67,908
80,951
107,851
111, 899
115,521
149,404
164,697

261,460
366,186
403,985
431,195
428,191
476,103
531, 028

257, 834
185,385
371, 811
305,361
406,357
350,948
298, 892
319, 647

533,837
398,280
524,018
529,031
616,285
603, 874
543,498
616, 692

791,671
583, 665
895, 829
834,392
1,022,642
954, 822
842,390
936,339

242,575
185,319
210,470
216, 682
235,675
240,188
202,266
224,595

Oct. 21,1913...
Dec.31,1914..
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916....
June 30,1916..
Sept. 12,1916..

328, 628
259,015
336,448
318,646
354,011
341, 627
317,528
367, 436

176,997
130,991
160,476
163,593
183,293
184,385
175,132
188,569

748,200
575,325
707,394
698,921
772,979
766,200
694,926
780, 600

176,420
186,872
277,047
352,333
247,607
488, 550
352, 816
307, 803

98,037
127,780
121,167
161,359
117,567
178,202
149,501
133, 779

66,765
84,909
79,584
93,134
77 997
86,823
81,207
86,551

341,222
399, 561
477,798
606, 826
443,171
753,575
583,524
528,133

OTHER BONDS.

Oct. 21,1913...
Dec. 31,1914..
Nov. 10,1915..
Dtfe.31,1915..
Mar. 7,1916...
May 1,1916....
June 30,1916..
Sept. 12,1916..
STOCK IN FEDERAL RESERVE BANKS.

Dec. 31, 19141
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916....
June 30,1916..
Sept. 12,1916..
DUE FROM FEDERAL RESERVE BANKS.

Oct. 21,1913...
Dec. 31,1914..
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916....
June 30,1916..
Sept. 12,1916..
DUE FROM RESERVE AGENTS.

Oct. 21,1913...
Dec. 31,1914..
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916....
June 30,1916..
Sept. 12,1916..
DUE FROM ALL OTHER BANKS.

Oct. 21,1913...
Dec. 31,1914..
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916....
June 30,1916..
Sept. 12,1916..
CASH ITEMS.

[Exchanges, checks, bills of national and Federal reserve banks.]
Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
,
May 1,1916
June 30,1916
Sept. 12,1916

i Dec. 31, 1914,figuresare initial payments or subscriptions to Federal reserve bank stock, computed
upon the paid-in capital and surplus of the national banks; amounts not shown in the abstract.

REPORT OF T H E COMPTROLLER OF T H E CURRENCY.

[In thousands of dollars.]

Date.

Central
reserve
city
banks.

Other
reserve
city
banks.

Country
banks.

Aggregate.

LAWFUL MONEY.

Oct. 21, 1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

377,132
255,696
436.220
403,143
413,523
364,986
350,294
326,127

243,104
179,064
180,033
177,373
185,C96
178,125
173,853
189,563

273,264
228,468
230,522
227,363
234,394
234,344
233,856
252,433

893,500
663,228
846,775
807,879
833,613
777, 455
758,003
768,123

2,485,195
2,599,688
3,684,992
3,802,932
3,831,109
4,022,879
3,758,521
3,812,274

3,102,543
3,154,413
3,644,370
3,685,920
3,885,881
3,953,329
3,917,469
4.103,508

5,713,820
5,602,985
5,906,969
5,979,035
6,121,691
6,219,387
6,250,878
6,495,755

11,301,558
11,357,086
13,236,331
13,467,887
13,838,681
14,195,595
13,926,868
14,411,537

182,650
175 900
177,290
177,330
177,350
177,350
177,350
177, 550

263,018
280,963
283,311
283,211
282,786
282,916
282,118
282,036

613,735
609,088
608,048
607,509
607,153
607,215
606,581
607,979

1,059,403
1,065,951
1,068,649
1,068,050
1,067,289
1,067,481
1,066,049
1,067. 565

225,640
225,359
234,091
230,131
234,940
235,745
237,608
247,524

254,142
262,985
268,115
264,006
267,817
269,523
268,528
275, 732

527, 796
520,517
537,908
525,684
528,521
536,902
531,103
542,045

1,007,578
1,008,861
1,040,114
1,019,821
1,031.278
1,042,170
1,037,239
1,065,301

76,978
87, 844
63,634
63,283
55,123
50,902
49,418
48,829

163,959
222,655
172,078
171, 858
165,586
160,624
159,065
159,278

486,142
538,308
477,754
478,172
475,126
470,719
467,633
466,008

727,079
848, 807
713,466
713,3J3
695,835
682,245
676,116
674,115

965,229
878,377
1,467,834
1,466,397
1,588,436
1,557,164
1,357,199
1, 405.182

918,624
755,368
972,339
987,558
1,160,851
1,122,059
1,051,069
1.165.358

297,183
236,026
269.501
284,477
324, 799
316,121
304,672
345,123

2,181,036
1,869,771
2,709,674
2,738,432
3,074,086
2,995,344
2,712,940
2,915, 663

AGGREGATE ASSETS.

Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
CAPITAL STOCK.

Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
SURPLUS AND UNDIVIDED PROFITS.

Oct. 21, 1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
CIRCULATION OUTSTANDING.

Oct. 21, 1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916
DUE TO BANKS.

[Federal reserve banks, reserve agents, and other bank:
and bankers.]
Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
1
June 30,1916
Sept. 12,1916
DEMAND DEPOSITS.

[Including dividends unpaid.]
Oct. 21,19131.
Dec. 31,1914..
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916...
June 30, 1916..
Sept. 12, 1916..
i Time and demand deposits computed from the total
same proportion as reported Dec. 31,1914.

1,304,136 2,683,682
992,365
4,980,183
1,175,524 1,415,490 2,604,461
5,195,475
1,618,422 1,660,375 2,793,046
6,071,843
1,732,997 1,676,071 2,837, 469
6,246,537
1,628,711 1,689,122 2,904,693
6,222,526
1,836,897 1,774,102 2,942,544
6,553,543
1,763,256 1,792,402 2,938,802
6,494,460
1, 752,132 1,861,526 3,096,254
6,709,912
deposits, reported together, for October, in the

REPORT OF THE COMPTROLLER OF THE CURRENCY.
[In thousands of dollars.]

Date.

Central
reserve
city
banks.

Other
reserve
city

Country
banks.

Aggregate.

TIME DEPOSITS.

15,113
17,922
39,781
45,453
43,494
53,492
70.756
71,670

157,588
171,037
215,739
220,637
233,433
250,065
265,741
270,373

1,012,091
982,263
1,120,436
1,151,327
1,218,226
1,282,878
1,333,190
1,394,723

1,184,792
1,171,222
1,375,956
1,417,417
1,495,153
1,586,435
1,669,687
1,736,766

1,972,707
2,071,823
3,126,037
3,244,847
3,260,641
3,447,553
3,191,211
3,228,984

2,380,348
2,341,895
2,848,453
2,884,266
3,083,406
3,146,226
3,109,212
3,297,257

3,992,956
3,822,750
4,182,983
4,273,273
4,447,718
4,541,543
4,576,664
4,836,100

8,346,011
8,236,468
10,157,473
10,402,386
10,791,765
11,135,322
10,877,087
11,362,341

749
871
1,801
2,761
1,442
377
12,738

2,551
6,732
4,292
4,702
2,996
5,844
5,892
11,108

13,216
20,469
37,725
36,027
25,326
24,203
27,017
27,487

16,516
35,587
42,888
42 530
31,083
31,489
33,286
51,333

7,249
5,860
3,407
2,732
1,615
1,730
1.176
2,538

14,315
15,374
5,424
6,038
2,799
4,295
5,767
4,893

62,380
75,622
51,736
47,116
26,459
26,206
28,389
31.068

83,944
96,856
60,567
55,886
30,873
32,231
35,332
38,499

40,268
46,450
59,623
58,617
41,752
42,651

Oct. 21,19131.
Dec. 31,1914..
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916...
June 30,1916..
Sept. 12,1916..

34,611
40,659
44,097
42,622
42,816
37,316

592
750
1,451
1,414
1,375
1,215

75,471
87,859
105,171
102,653
85,943
81,182

16,634
17,909
22,124
33,437
41, 797
45,870

10,004
13,941
20,343
25,645
26,368
30,110

170
135
210
754
1,138

26,808
31,985
42,677
59,836
69,303
76,608

TOTAL DEPOSITS.

Oct. 21, 1913..
Dec. 31,1914..
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916...
June 30,1916..
Sept. 12,1916.
NOTES AND BILLS REDISCOUNTED.

Oct. 21, 1913..
Dec. 31,1914..
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916...
June 30, 1916..
Sept. 12,1916..
BILLS PAYABLE.

Oct. 21, 1913..
Dec. 31,1914..
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916...
June 30,1916..
Sept. 12, 1916..
LETTERS OF CREDIT.

Oct. 21, 1913..
Dec. 31, 1914..
Nov. 10, 1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916...
June 30,1916..
Sept. 12,1916..
ACCEPTANCES.

Oct. 21, 1913..
Dec. 31, 1914..
Nov. 10,1915..
Dec. 31,1915..
Mar. 7,1916...
May 1,1916...
June 30,1916..
Sept. 12,1916..

i Time and demand deposits computed from the total deposits, reported together, for October, in the
same proportion as reported Dec. 31,1914.

Reserve required and held by national banks, together with the excess or deficiency,

1913-1916.

[In thousands of dollars.]
Reserve held.
Date.

Amount
on which
reserve is
computed.

Reserve
required.
In banks.

With
Federal
reserve
banks.

With
reserve
agents.

Redemption fund.

Total
amount.

B
Per cent.

Excess.

Shortage.

NEW YORK.

Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

1,079,965
1,276,159
2,116,397
2,141,606
2,163,727
2,109,297
2,019,982
2,047,213

269,991
229,709
380,951
385,489
389,471
379,673
363,597
368, 498

271,648
207,530
373,154
339,442
343,797
287,953

101,315
168,423
160,168
169,605
168,781

261,466

161, 468

24,957
34,932
33,858
37,570
35,204
35,083
41,453

2,338

273,986
308,845
541,577
499,610
513,402
456,734
447,906
422,934

25.37
24.20
25.58
23.33
23.73
21.65
22.17
20.66

84,418
63,750
88,532
86,505
96,187
99,908
85,154
95,316

23.53
18.81
21.16
20.37
19.93
20.76
18.34
19.30

2,748
13,203
10,082
9,293
13,301
1,564
6,404

22,350
16,660
17,887
19,078
21,647
21,782
20,492
24,057

21.85
19.49
19.38
19.93
19.33
19.25
18.26
20.29

1,273
1,269
1,845
1,497
1,409
297
2,719

3,995
79,136
160,626
114,121
123,931
77,061
84,309
54,436

tei
Q
O
•d

CHICAGO.

Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

358,750

756

61,002
75,329
76, 423

418,492
424,570
482,742
481,152
464,386
493,956

86,607
83,590
88,912

38,793
53,600
52,647
58,617
64, 704
50,071
53,863

102,303
85,481
92,320
95, 740
111,948
113,182
112,197
118,547

25,576
15,387
16,618
17,233
20,150
20,373
20,195
21,338

21,576
9,372
9,466
11,054
11,109
12,329
11,315
10,798

ST. LOUIS.

Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

774

7,288
8,421
10,538
9,453
9,177
13,259

5,270

o
d
w
w
%
a

Reserve required and held by national banks, together with the excess or

deficiency—Continued.

Beserve held.
Date.

Amount
on which Reserve
reserve is required.
computed.

In banks.

With
Federal
reserve
banks.

With
reserve
agents.

Redemption fund.

Total
amount.

Per cent.

Excess.

Shortage.

o
w

OTHER RESERVE CITIES.

Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

1,915,160
1,875,796
2,282,657
2,298,458
2,491,068
2,497,636
2,504,602
2,659,162

478,790
281,369
342,399
344,769
373,660
374,644
375,690
398,874

242,317
179,064
180,033
177,373
185,696
178,125
173,853
189,563

227,908
185,385
371,811
305,361
406,357
350,948
298,892
319,647

8,190

59,992
73,459
94,084
101,583
99,232
123,441
150,151

3,715,984
3,091,992
3,346,796
3,405,440
3,533,020
3,580,238
3,600,345
3,883,443

557,398
371,157
401,747
408,794
424,096
429,763
432,181
466,164

270,430
228,469
230,522
227,363
234,394
234,344
233,856
252,433

320,138
398,279
524,018
529,031
616,285
603,874
543,498
616,692

23,751

67,908
80,951
107,851
111, 899
115,521
149,404
164,697

7,172,162
6,668,326
8.256,662
8.365.814
8,782,505
8,781,505
8,701,512
9,202,321

1,421,443
958,624
1,217,044
1,232,708
1,294,271
1,291,060
1,275,253
1,343,786

889,633
663,228
846,775
807,879
833,613
777,455
758,003
768,123

35,809

261,460
366,186
403,985
431,195
428,191
476,103
531,028

548,046
583,664
895,829
834,392
1,022,642
954,822
842,390
936,339

478,415
424,441
625,303
576,818
693,636
628,305
596,186
659,361

24.98
22.63
27.39
25.10
27.84
25.15
23.80
24.80

143,072
282,904
232,049
319,976
253,661
220,496
260,487

614,319
694,656
835,491
864,245
962,578
953,739
926,758
1,033,822

16.53
22.46
24.96
25.38
27.24
26.64
25.75
26.62

56,921
323,499
433,744
455,451
538,482
523,976
494,577
567,658

1,473,488
1,508,352
2,108,790
2,046,256
2,287,450
2,160,468
2,076,496
2,235,490

20.54
22.61
25.54
24.46
26.05
24.60
23.86
24.29

52,045
549,728
891,746
813,548
993,179
869,408
801,243
891,704

:::: 3
::::

COUNTRY BANKS.

Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

... i
::: £
o
fee]

ALL NATIONAL BANKS.

Oct. 21,1913
Dec. 31,1914
Nov. 10,1915
Dec. 31,1915
Mar. 7,1916
May 1,1916
June 30,1916
Sept. 12,1916

375

:::

=^
... oi

REPORT OF THE COMPTROLLER OF THE CURRENCY.

In connection with the foregoing statements there will be found in
Volume 2 of this report tables relating to the development of banking
as indicated by the returns from national and other banking institutions on a selected date in each year from 1875 to 1916. In these
tables, the deposits, the loans, and the investments in bonds, etc., are
classified, and the capital, surplus, and other profits, together with
the aggregate amount of assets shown.
PRODUCTIVITY OF LOANS AND BOND INVESTMENTS OF NATIONAL
BANKS.

Loans and discounts and investments in bonds and other securities
by national banks, represent over seven-tenths of their assets and
as the^r are the principal sources from which earnings are derived,
it is of interest to note the productiveness of these investments, compared with gross earnings, by banks in each geographical division of
the country.
The gross assets of the national banks on June 30, 1916, were
$13,926,868,000, and the investments in loans, bonds, and other
securities $9,984,644,000, or 71.69 per cent, while the gross earnings
for the 12 months ending June 30, 1916, were $590,642,051, or 4.24
per cent of the gross assets, or 5.92 per cent on loans and securities.
The lowest percentage of gross earnings to total investments was
for banks in the Eastern States, being 5.35, while the highest, 8.08,
was in the western division. The details for the country, by geographical divisions, are shown in the following table:
[In thousands of dollars.]
Loans (including Bonds, etc.
overdrafts).

Divisions.

New England States
Eastern States
Southern States
Middle States
Western States
Pacific States
Hawaii
Total

. .

Total
investment.

Gross
earnings.

Per cent
of grossearnings
to total
investment.

625,032
3,068,114
896,727
2,088,885
517,463
487,183
1,931

206,801
1,107,943
212,140
506,649
109,983
154,659
1,134

831,833
4,176,057
1,108,867
2,595,534
627,446
641,842
3,065

45,488
223,258
78,309
149,907
50,694
42,792
194

5.47
5.35
7.06
5.78
8.08
6.67
6.33

7,685,335

2,299,309

9,984,644

590,642

5.92

EARNINGS AND DIVIDENDS OF NATIONAL BANKS.

The reports of earnings and dividends of national banks for the
fiscal year ended June 30, 1916, indicate that the gross earnings of
the banks were $590,642,051, as against $528,308,815 for the year
ended June 30, 1915. It appears, however, that the net earnings of
the banks for the same 12 months were $157,543,547 as against
$127,094,700 for 1915, or an increase of about $30,500,000, and that
the dividends paid were $114,724,594, as against $113,707,065 in
1915. The average dividend rate on capital stock increased from
10.64 per cent in 1915 to 10.76 per cent in 1916. For the current
year dividends based upon combined capital and surplus averaged
6.38 per cent, while the net earnings to capital and surplus averaged

BEPORT OF THE COMPTROLLER OF THE CURRENCY.

8.76 per cent. The combined capital and surplus of the banks for
1916 was $1,798,029,240, the percentage of surplus to capital being
68.64.
In Volume 2 of this report will be found the returns for the 12
months ended June 30, 1916, from the banks in each reserve city and
State relating to their earnings and dividends, and also corresponding
data for each year from March, 1870, to June 30, 1916.
In the accompanying statement is shown the number of banks,
their capital, surplus, dividends j>aid, the percentage of surplus to
capital, and the percentage of dividends to capital for each geographical division.
[In thousands of dollars.]

Number
of banks.

Divisions.

Capital
stock.

Surplus.

cent
Per cent of Amount of Per diviof
surplus to dividends dends to
capital.
paid.
capital.

419
1,647
1,579
2,103
1,288
530
5

Total

95,847
332,204
181,595
292,538
73,514
89,876
635

65,327
337,572
95,728
155,059
35,442
42,392
300

68.16
101.62
52.71
53.00
48.21
47.17
47.25

8,148
40,906
15,931
29,915
10,840
8,936
48

8.50
12.31
8.77
10.23
14.74
9.94
7.51

7,571

New England States
Eastern States
Southern States
Middle States
Western States
Pacific States
Hawaii

1,066,209

731,820

68.64

114,724

10.76

ORGANIZATION

OF NATIONAL

BANKS.

In the year ended October 31, 1916, applications for authority to
organize 223 national banks were received, of which 141 were approved, and 16 rejected, the principal reasons for rejection being that
the communities were amply provided with banking facilities; that
there was insufficient business in the localities to make additional banks
profitable; or because the investigations made by this office indicated
that the standing of the applicants was not such as to warrant the
granting of a charter to them. The remaining applications are held
pending the submission of further information, or have been abandoned.
Since December 23, 1913, the date of the passage of the Federal
Reserve Act, 758 applications have been received, 363 being for the
conversion of State banks or for the reorganization of State or private banks as national banks and 395 for primary organization, of
which 155 were received during the 12 months ended October 31,
1916.
BANKS CHARTERED SUBSEQUENT TO THE PASSAGE OF THE FEDERAL RESERVE ACT.

From December 23, 1913, to October 31, 1916, charters were issued
to 449 banks, 297 of which were issued under the act of March 14,
1900, that is, to banks with capital of less than $50,000 each, and 152
under the act of June 3,1864, to banks with capital of $50,000 or over.
While the Federal Reserve Act authorizes the chartering of banks
without the deposit of bonds, 179 of the banks chartered during this
period, and 30 during the past year, have deposited United States
bonds to secure circulation and have become banks of issue.
During the current year charters were issued for 80 banks with
capital of $25,000 each, 11 with capital in excess of $25,000 but less

REPORT OF THE COMPTROLLER OF THE CURRENCY.

than $50,000, and 31 with capital of $50,000 or more. Twenty-five
of the minor banks and 5 of those with capital of $50,000 or more
deposited bonds and became banks of issue.
NATIONAL BANKS ORGANIZED AND CLOSED, 1863 TO OCTOBER 31, 1916.

Of the 10,918 banks chartered during the existence of the national
banking system, 122 were chartered during the current year, with
authorized capital of $6,630,000. There are now in existence, of the
total number chartered, 7,608 banks, 2,767 having gone into voluntary liquidation and 543 placed in charge of receivers. Since 1863
1,906 State banks, with capital at date of change of $352,385,428, have
been converted into national banks.
National banks organized, liquidated, and closed annually from
1863 to October 31, 1916, are shown in the following table:
Number and authorized capital of national banks organized and the number and capital
of banks closed in each year ended October 31 since the establishment of the national banking system, with the yearly increase or decrease.
Closed.
Organized.

Year.

No.
1863
1864
1865
1866
1867
1868.
1869
1870
1871
1872
1873
1874
1875
1876
1877
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904

Capital.

134
453
1,014
62
10
12
9
22
170
175
68
71
107
36
29
28
38
57
86
227
282
191
145
174
225
132
211
307
193
163
119
50
43
28
44
56
78
383
394
470
553
431

$16,378,700
79,366,950
242,542,982
8,515,150
4,260,300
1,210,000
1,500,000
2,736,000
19,519,000
18,988,000
7,602,700
6,745,500
12,104,000
3,189,800
2,589,000
2,775,000
3,595,000
6,374,170
9,651,050
30,038,300
28,654,350
16,042,230
16,938,000
21,358,000
30,546,000
12,053,000
21,240,000
36,250,000
20,700,000
15,285,000
11,230,000
5,285,000
4,890,000
3,245,000
4,420,000
9,665,000
16,470,000
19,960,000
21,554,500
31,130,000
34,333,500
21,019,300

Involuntary
liquidation, including those consolidated with
national and
other banks.
No.

3
6
4
12
18
17
14
11
11
21
20
38
32
26
41
33
9
26
78
40
30
85
25
25
34
41
50
41
53
46
79
49
37
70
69
64
43
39
71
72
65

Capital.

$330,666
650,000
2,160,000
2,445,500
3,372,710
2,550,000
1,450,000
2,180,500
3,524,700
2,795,000
3,820,200
2,565,000
2,539,500
4,237,500
3,750,000
570,000
1,920,000
16,120,000
7,736,000
3,647,250
17,856,590
1,651,100
2,537,450
4,171,000
4,316,000
5,050,000
4,485,000
6,157,500
6,035,000
10,475,000
6,093,100
3,745,000
9,659,000
12,509,000
24,335,000
12,474,950
7,415,000
22,190,000
30,720,000
20,285,000

Insolvent.

No.

1
2
7
3
1
1
6
11
3
5
9
10
14
8
3
3
2
11
4
8
8
8
2
9
25
17
65
21
36
27
38
7
12
6
11
2
12
20

Capital.

Net yearly
increase.

No.

134
450
1,007
$50,000
56
500,000
1,370,000
210,000
50,000
7
250,000
159
158
1,806,100
36
3,825,000
48
250,000
64
1,000,000
965,000
3,344,000
2,612,500
1,230,000
700,000
45
60
146
1,561,300
220
250,000
150
1,285,000
56
600,000
141
650,000
192
1,550,000
90
1,900,000
168
250,000
248
750,000
127
3,622,000
93
2,450,000
8
10,910,000
2,770,000
5,235, 020
3,805,000
5,851,500
1,200,000
850,000
2
1,800,000
334
1,760,000
344
450,000
397
3,480,000
469
1,535,000
346

Capital.
$16,378,700
79,366,950
242,162,982
7,365,150
730,300

Net yearly
decrease.

No. Capital.

9
9 $1,445,500
9 1,922,710
64,000

18,069,000
15,001,400
253,000
3,700,500
7,283,800
5
7
27
3

340,200
3,294,500
4,075,000
1,385,000

5,104,170
7,731,050
12,357,000
20,668,350
11,109,980
1,518,590
19,056,900
26,458,550
5,982,000
16,674,000
30,450,000
12,593,000
6,677,500
5,715,000
50 7,960,000
42 6,338,120
36 4,405,000
65 11,090,500
19 4,044,000
8,715,000
5,685,050
12,379,500
8,490,000
133,500
800,700

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Number and authorized capital of national banks organized and the number and capital
of banks closed in each year ended October 31 since the establishment of the national banking system, with the yearly increase or decrease—Continued.
Closed.

Organized.
Year.

In voluntary
liquidation, including those consolidated with
national and
other banks.

No.

Deduct decrease

No.

Capital.

506
455
516
326
309
311
214
188
172
195
144
" 122

1905
1906
1907
1908
1909
1910
1911
1912
1913
1914
1915
1916

Capital.
$33,532,500
21,413,500
34,967,000
22,823,000
22,830,000
30,760,000
12,840,000
16,080,000
10,175,000
18,675,000
9,689,500
6,630,000

121
81
84
80
149
113
98
83
80
113
82
135

$24,409,500
13,223,000
11,745,000
12,415,000
14,225,850
29,123,500
11,010,000
21,605,250
14,571,010
26,487,000
13,795,000
14,828,000

Insolvent.

No.

Capital.

22 $2,035,000
8
680,000
7
775,000
24 6,560,000
768,500
9
875,000
6
275,000
3
8 1,100,000
6 4,350,000
21 1,810,000
14 1,830,000
805,000
13

Net yearly
increase.

No.

Capital.

363
366
425
222
151
192
113
97
86
61
48

$7,088,000
7,510,500
22,447,000
3,848,000
7,835,650
761,500
1,555,000

10,918 1,122,365,982 2,767 487,962,660 2 579 94,540,920 7,879 642,907,982

Net increase.
A d d for
banks restored to
solvency
Total net
increase.

307

Net yearly
decrease.

No. Capital.

$6,625,250
8,746,010
9,622,000
5,935,500
126 9,003,000
307 103,045,580

103,045,580

7,572 539,862,402

10,485,000

7,608 3 550,347,402

1
The net decrease during the year was 24 banks, with capital of $8,923,000, as 2 insolvent banks with
capital of $80,000 were restored to solvency by their shareholders and permitted to resume.
2 Includes 36 banks restored to solvency.
3 The total authorized capital stock on Oct. 31 was $1,074,853,375; the paid-in capital, $1,074,485,134,
including the capital stock of liquidating and insolvent banks which have not deposited lawful money
for the retirement of their circulating notes.

NATIONAL BANKS ORGANIZED DURING THE LAST YEAR AND SINCE 1900.

In addition to the capital of new banks organized during the 12
months ended October 31, 1916, the banks organized prior thereto
increased their capital during the period $12,255,000, making the gross
increase for the year $18,885,000. Taking into consideration reductions of capital, voluntary liquidations, and failures, the net increase
was $2,027,000, the authorized capital stock of all banks at the close
of the year standing at $1,074,853,375.
Since March 14, 1900, the date of the act authorizing the organization of banks with minimum capital of $25,000, charters have been
granted to 5,654 associations, with authorized capital of $365,932,800,
of which 3,610, with aggregate capital of $94,150,000, were organized
under the act of that date generally with individual capital of $25,000,
although a limited number of banks were organized with capital in
excess of $25,000, but all less than $50,000. The average capital,
however, of banks of this class was slightly in excess of $26,080.
During the same period 2,044 national banks were organized under
the act of 1864, the aggregate capitalization being $271,782,800 and
the individual capital $50,000 or over—the approximate average being
$133,000 each.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

STATE BANKS CONVERTED INTO NATIONAL.
Further classifying these banks, it appears that 987 were conversions of State banks, capital $73,165,300; 1,670 reorganizations of
State or private banks, capital $122,602,000; and 2,997, with capital
of $170,165,500, primary organizations.
In the following table will be found a classification of banks organized from March 14, 1900, to October 31, 1916, based upon capital
stock, together with the number of banks and their reported capital
on September 12, 1916, by States and geographical divisions.
Summary, by State, geographical divisions, and classes, of national banks organized from
Mar. 14, 1900, to Oct. 31, 1916, and the paid-in capital stock of all reporting national
banks on Sept. 12, 1916.
Capital,
$25,000.

Capital over
$25,000 a n d
less $50,000.

Capital, $50,000 Total organizaand over.
tions.

National banks
reporting Sept.
12,1916.

States, etc.
No.

Capital. No.

Capital.

No.

Capital.

No.

Capital.

No.

Capital
paid in.

New England States.
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Total.

$125,000
100,000
125,000
50,000
5

125,000

211

525,000

30,000

$510,000 67
330,000 56
275,000 48
4,500,000 155
' 500,000 17
875,000 71

$385,000
200,000
160,000
4,450,000
500,000
750,000

$30,000

6,435,000

6,990,000

$7,415,000
5,285,000
4,985,000
52,143,000
5,570,000
19,949,000
95,347,000

Eastern States.
New York
New Jersey
,
Pennsylvania
Delaware
Maryland
District of Columbia.
Total

126 3,150,000
62 1,550,000
239 5,975,000
150,000
6
32
800,000
46511,625,000

317,500 108 19,870,000 244 23,337,500 478
240,000 44 3,710,000 114 5,500,000 201
807,000 232 24,790,000 495 31,572,000 834
95,000
9
245,000 24
172,000
1,480,000 50 2,452,000 96
2,175,000
7 2,175.000 14
50 1,631,500

404 52,025,000

919 65,281,500 1,647

501,000
525,000
195,000
102,000
715,000
225,000
379,500
125,000
30,000
2,998,500
95,000
230,000
270,000

51 5,740,000
44 3,565,000
36 3,885,000
43 4,625,000
55 5,250,000
32 5,775,000
41 3,985,000
28 2,565,000
24 4,610,000
164 20,985,000
36 2,730,000
36 5,370,000
42 4,945,000

125 7,741, 000
101 5,140, 000
68 4,730, 000
67 5,252, 000
103 6,640, 000
50 6,275, 000
91 5,314, 500
41 2,915. 000
40 5,015; 000
509 30', 283^ 500
3,575,000
6,975,000
90 6,190,000

167,911,000
22,127,000
117,805,000
1,664,000
15,730,000
7,177,000
332,414,000

Southern States.
Virginia
West Virginia...
North Carolina..
South Carolina..
Georgia
Florida
Alabama
,
Mississippi
Louisiana
Texas
,
Arkansas
Kentucky
,
Tennessee
,
Total.
Middle Western
States.
Ohio
Indiana
Illinois
Michigan
Wisconsin
Minnesota
Iowa
Missouri
Total.

15
252
30
55
39

1,500,000
1,050,000
650,000
525.000
675,0001
2751000]
950,"
225,000|
375,000J
6,300,000
750,000
1,375,000
975,"

62515,625,000 195 6,391,000

111
94
183
20
45
192
125

2,775,000
2,350,000
4,575,000
500,000
1,125,000
4,800,000
3,125,000
950,000

19,037,000
10,067,000
8,946,000
9,217,000
14,543,000
7,260,000
10,595,000
3,925,000
7,810,000
53,795,000
5,521,000
17,051.000
14,200,000

632 74,030,000 1,452 96,046,0001,588

181,967,000

658,000 91 13,075,000
513,000 75 10,950.000
733,500 103 15,100,000
190,000 31 11,065,000
160,000 32 3,650,000
566,000 33 5,250,000
810,000 73 4,470,000
510,000 45 16,710,000

808 20,200,000 125 4,140,500

144
117
81
75
110
55
90
36
32
532
67
137
112

221
185
307
57
82
243
222
99

16,508,000
13,813,000
20,408,500
11,755,000
4,935,000
10,616,000
8,405,000
18,170,000

373
256
471
106
137
283
353
132

62,589,000
28,298,000
76,190,000
17,720,000
18,425,000
29,451,000
24,289,000
36,410,000

483 80,270,0001,416104,610,500 2,111

293,372,000

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Summary, by State, geographical divisions, and classes,^ of national banks organized from
Mar. 14, 1900, to Oct. SI, 1916, and the paid-in capital stock of all reporting national
banks on Sept. 12, 1916—Continued.
Capital,
$25,000.

Capital over Capital, $50,000 Total organiza$25,000 and
and over.
tions.
less $50,000.

National banks
reporting Sept.
12, 1916.

States, etc.
No.

Capital. No. Capital.

No.

Capital.

No.

Capital.

No.

Capital
paid in.

Western States.
North Dakota
South Dakota.
Nebraska
Kansas
Montana
Wyoming
Colorado
New Mexico
Oklahoma

136 $3,400,000
88 2,200,000
104 2,600,000
103 2,575,000
40 1,000,000
15 375,000
57 1,425,000
25 625,000
378 9,450,000

Total

7
6
?0
6
2
13
4
32

11
16
39
34
18
12
38
11
74

$215,000
190,000
715,000
420,000
195,000
70,000
426,000
125,000
1,040,000

946 23,650,000 102 3,396,000

$600,000
1,100,000
3,395,000
2,660,000
1,640,000
675,000
3,310,000
625,000
5,855,000

154
110
163
149
64
29
108
40
484

$4,215,000
3,490,000
6,710,000
5,655,000
2,835,000
1,120,000
5,161,000
1,375,000
16,345,000

156
125
193
221
72
36
121
37
335

$5,775,000
5,276,000
14,445,000
12,977,000
5,788,000
2,040,000
10,455,000
2,315,000
15,005,000

253 19,860,000 1,301 46,906,000 1,296

74,076,000

35 3,795,000
75
27 2,295,000 66
132 28,412,800 264
17 1,210,000 58
6 1,275,000
14
9 1,225,000 12
5
250,000
10
50,000
2
1

11,460,000
10,066,000
58,48^,000
3,600,000
3,355,000
1,435,000
1,225,000
125,000

Pacific States.
Washington
Oregon
California
.
Idaho
Utah
Nevada
Arizona
Alaska

38 950,000
36 900,000
126 3,150,000
35 875,000
7 175,000
3
75,000
4 100,000
25,000
1

Total

6
6
1

70,000
91,000
190,000
200,000
30,000

30,000

250 6,250,000

. .

611,000

232 38,512,800

4,815,000 77
3,286,000 82
31,752,800 263
2,285,000 57
1,480,000 23
1,300,000 10
380,000] 13
75,000
3

501 45,373,800

528

89,754,000

Island possessions.
Hawaii
Porto Rico

Grand total

2
1

550,000
100,000

5
1

625,000
100,000

635,000

Total..-.

75,000
75,000

650,000

725,000

635,000

3,118177,950,000 492 16,200,000 2,044 271,782,800 5,654 365,932,800 7,589 1.067,565,000

The number and capital, by classes, of conversions, reorganizations, and primary organizations, are shown in the following table:
Summary, by classes, of national banks organized from Mar. 14, 1900, to Oct. SI, 1916,
Conversions.

Reorganizations.

Primary
organizations.

Total.

Classification.
Number.
Capital less than $50,000
Capital $50,000 or over
Total

Capital.

Number.

Capital.

Number.

Capital.

Number.

Capital.

580 $15,412,500 1,044 $27,652,000 1,986 $51,085,500 3,610
626 94,950,000 1,011 119,080,000 2,044
407 57,752,800

$94,150,000
271,782,800

73,165,300 1,670 122,602,000 2,997 170,165,500 5,654

365, 932,800

987

REPORT OF THE COMPTROLLER OF THE CURRENCY.
Number of national banks organized in each month from

Mar. 14, 1900y to Oct. 31, 1916.

1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916

36
6
46
66
95
46
44
20
25
21
29

Total.. 398

31
35
30
54
40
41
27
23
27
32
36

28
41
50
50
42
38
42
38
33
36
54

50
56
51
47
58
43
36
31
57
20
32

35
42
46
42
43
22
38
32
43
36
45

39
50
42
49
48
37
44
35
36
23
38

41
41
43
45
42
32
33
31
41
27
41

42
50
46
52
55
40
39
46
38
19
23

36
39
34
33
21
37
20
14
18
21
18

20
22
26
24
44
28
32
24
22
23
27

29
37
26
21
40
19
12
27
22
12
18

13
39
28
20
21
13
15
15
8
11
11

14
19
15
22
14
16
15
20
15
6
14

16
16
25
23
14
12
11
13
6
Q
9

9
10
25
24
21
21
13
23
24
6
14

19
CO CO

January ....
February.
March
April
. .
«
May
June
July
August
September..
October
November...
December...

—'CO

Months.

9
6
15
12
11
10
4

9
9
8
7
16
10
10
16
13
10

412 492 515 460 486 462 490 323 320 291 206 186 167 200 138 108

Number and classification of national banks organized during the year ended Oct.

Conversions.

Reorganizations.

Primary organizations.

81,1916.

Total.

Months.
Number.

Capital.

Number.

$230,000
65,000
130,000
105,000
600,000
75,000
220,000
130,000
150,000
55,000
250,000

November.
December..
January
February..
March
April
May
June
July
August
September.
October
Total.

2,010,000

Capital.

Number.

550,000

"25,* 666"
25,000
625,000
40,000
25,000
150,000
1,565,000

Number.

$50,000
50,000
25,000
325,000
50,000
175,000
250,000
400,000
125,000
900,000
495,000
210,000

$125,000

Capital.

3,055,000

Capital.
$405,000
115,000
705,000
430,000
675,000
250,000
495,000
530,000
900,000
995,000
770,000
360,000

122

6,630,000

CHANGES OF TITLE AND LOCATION OP NATIONAL BANKS.

Under the law any national bank, upon authorization by shareholders representing two-thirds of the stock and with the approval
of the Comptroller of the Currency, may change its corporate title,
or its location to a place not exceeding 30 miles distant, within the
same State. Ten changes of this character occurred during the past
year, a list of the banks concerned being submitted herewith.

REPORT OF THE COMPTROLLER OF THE CURRENCY.
Changes of corporate title and location.

No.

Title and location.

Date.

893

The First National Bank of Saratoga Springs, N. Y., to "Saratoga National Bank of
Saratoga Springs "
The First National Bank of Soldier, Idaho, to " T h e First National Bank of Fairneld,"
Idaho

1915.
Nov. 4

The Peoples National Bank of Gallatin, Tenn., to " F i r s t and Peoples National Bank
ofGallatin"...
The American National Bank of Monrovia, Cal., to " T h e National Bank of Monrovia"..
The Granite National Bank of Augusta, Me., to " F i r s t National Granite Bank of
Augusta"
The First National Bank of Canal Dover, Ohio, to " T h e First National Bank of Dover"..
The Exchange National Bank of Canal Dover, Ohio, to " T h e Exchange National Bank
of Dover"
The New Farley National Bank of Montgomery, Ala., to " T h e Capital National Bank
of Montgomery"
The Woods-Rubey National Bank o£ Golden, Colo., to " T h e Rubey National Bank
of Golden "
The Merchants-Mechanics National Bank of Baltimore, Md., to " T h e MerchantsMechanics First National Bank of Baltimore"

1916.
Jan. 22
Feb. 4

10162
5545
7705
498
4331
4293

6497
1413

Nov. 12

Mar. 27
June 8
June 16
Aug. 25
Sept. 1
Oct. 13

FOREIGN BRANCHES OF NATIONAL BANKS.

Under section 25 of the Federal Reserve Act, as amended, the Board
has authority to approve the application of any national bank
possessing a capital and surplus of $1,000,000 or more to establish
branches in foreign countries or dependencies or insular possessions
of the United States for the furtherance of foreign commerce, and
to act as required to do so asfiscalagents of the United States Government.
The Federal Reserve Board also may approve the application of
any national bank possessing a capital and surplus of $1,000,000 or
more to invest an amount not exceeding in the aggregate 10 per
cent of its paid-in capital and surplus in the stock of any banks or
corporations incorporated under the laws of the United States or any
State thereof and principally engaged in international or foreign banking, or banking in any of the dependencies or insular possessions of
the United States. The business of such international corporations
must be conducted upon conditions and under regulations prescribed
by the Federal Reserve Board.
The Federal Reserve Board has authorized the National City Bank
of New York to establish the following foreign branches and subbranches :
Branch at Buenos Aires, Argentine Republic: Subbranch at Montevideo, Uruguay.
Branch at Valparaiso, Chile: Subbranches at Antofagasta and
Santiago, Chile.
Branch at Rio de Janeiro, Brazil: Subbranches at Santos, Sao
Paulo, Pernambuco, Para, and Bahia, Brazil.
Branch at Habana, Cuba: Subbranches at Santiago, Matanzas,
Cienfuegos, Guantanamo, Camaguey, Cardenas, Manzanillo, Cuba;
Kingston, Jamaica; and Santo Domingo, Santo Domingo.
Branch at Petrograd: Subbranches at Moscow, Odessa, Warsaw,
Riga, Baku, Astrakhan, Vladivostok, Sebastopol, Helsingfors, and
Vilna, Russia.
Branch at Genoa, Italy: Subbranches at Turin, Milan, Venice,
Florence, Rome, Naples, and Palermo, Italy.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Under like authorization the Commercial National Bank of Washington, D. C , has established branches at Panama City and Cristobal.
The principal assets and liabilities of the branches reporting, in
June, 1916, were as follows (in thousands of dollars):
Foreign branches of the National City Bank of New
York, N. Y.

Foreign branches
of the Commercial N a t i o n a l
Bank of Washington, D. C.

West
Indian San- Buenos Monte- Riode
Sao
branch, tiago Aires, video, Janeiro, Santos, Paulo, Cristode
HaArgen- Uru- Brazil.* Brazil. Brazil. bal.
bana, Cuba. tine. guay.
Cuba.

Panama.

ASSETS.

Loans and discounts (including overdrafts) .
Bonds
.
Due from home office
Due from branches
.
Due from other banks
Checks and cash items
Cash
Letters of credit and ac• ceptances
Other assets
Aggregate resources...

1,771
19
1,714

112

317
118
440

12,432

826

6,377

2,040

153

250
50
578
14
176

131

121

72
3,474
181
1,663

1,394
19
272

1,612
60
539

102
2
48

44
19

2
34

232

4
79

486
3

16,892

1,368

11,999

1,924

4,740

314

1,000
39

1,000
282

250
35

740

195
3,200

142

4,658
10,792

480
593

94
1,495
1,392
3,763
4,501

120
12

1
1

80
80

9
1

186
1
4,566

144

3,420
55
922

385

1,106

LIABILITIES.

Capital
Profits
Due to branches
Due to home office
Due to other banks
Individual deposits
Bills payable
Letters of credit and acceptances
Other liabilities

4
233

32
1,416
239

2,575
1,189
486

486

1
Report for June 16,1916.
2 Includes $6,000 furniture and fixtures.
• Includes $13,000 furniture and fixtures.
* Amount to be set aside when required, $100,000.

63366°—17

(4)
41
273

48
1,002
55

REPORT OF THE COMPTROLLER OF THE CURRENCY.
VOLUNTARY LIQUIDATION OF NATIONAL BANKS.

Any national bank may be placed in voluntary liquidation by
shareholders representing at least two-thirds of the stock. (Sec.
5220, R. S.) Meetings of shareholders for this purpose are called in
conformity with the requirements of the articles of association, at
which, in addition to adopting a resolution for the liquidation,
provisions are made where practicable, either for immediate liquidation of the assets, and settlement with creditors and shareholders,
or the appointment of a liquidating agent to settle the affairs of the
bank as speedily as possible in the interest of both creditors and
shareholders.
Liquidations during the past year numbered 135, the capital of
the banks being $14,828,000. Of these banks 25, with capital of
$5,170,000, were absorbed by other national banks; 15, with capital
of $2,315,000, consolidated with other national banks; 23, with capital of $2,458,000, were absorbed by or consolidated with State
banks and trust companies; 62, with capital of $4,120,000, liquidated and reorganized as State banks; and 10, with combined capital of $765,000, liquidated for the purpose of discontinuing business.
It thus appears that 40 banks, with an aggregate capital of
$7,485,000, liquidated for the purpose of consolidating their business
with other national banks, which in many instances increased their
capital stock and otherwise enlarged and strengthened their business
and reduced expenses proportionately.
The principal reasons given for 85 liquidations, carrying with
them an aggregate capital stock of $6,578,000, were to enable the
liquidating banks to reorganize under State charters, in order
that they might devote themselves, to a trust and fiduciary business under State laws, and in some cases take advantage of the
State guaranty laws, the greater latitude in regard to real estate and
other loans, and the permission granted by the laws of some of the
States to operate domestic branches and agencies.
Another reason assigned by some for liquidation was the policy of
the Comptroller's office in enforcing the law, especially as to usurious
interest rates. Ten banks with capita] of $765,000 claimed that the
banking business was not of sufficient volume to be profitable to
shareholders and therefore decided to liquidate.
In the following table is shown the number of national banks in
each State reported in voluntary liquidation during the year ended
October 31, classified according to the principal .reasons given for
liquidating:

REPORT OP THE COMPTROLLER OP THE CURRENCY.

Liquidations reported for the year ended Oct. 31,1916, by States and geographical divisions,
classified according to the principal reasons, where given, for liquidating or leaving the
national system.

States.

Maine
Massachusetts..
Rhode Island
Connecticut
Total New England
States
New York
New Jersey
Pennsylvania
Maryland
Total Eastern States..
West Virginia
North Carolina
South Carolina
Georgia
Florida
Alabama
Louisiana
Texas
Kentucky
Tennessee
.
Total Southern States.
Ohio
Indiana
Illinois
Michigan..
Minnesota
Missouri
Total Middle States....
Nebraska
Montana
Colorado . .
Oklahoma
Total Western States..
Washington
Oregon
California
Idaho
Arizona

Restrictions
Consolof naidated
tional
with
State Wider
bankor abReal
sorbed Trust deposit latitude estate ing and
busi- guar- of State
Federal
by
anty
bank
other ness. laws. laws. loans. reserve
laws
naand
tional
office
banks.
regulations.
1
3

1
5

5
2

2
1

4
3
1

2
1

9
4
5
2

2
3

1
1

1
2
2
6
1
4
1
7
5
5

1
1

1
1
3

1
2
2
1
1
1

1
1
1

1
1

17
1
2
19

2
11
13

3
5

1
4

1
1

7
1
1

Total of United States.

3
13
1
3

Total Pacific States....

Total
Insuffi- No
cient reason voluntary
busi- given. liquiness.
dations.

3
19

135

REPORT OF THE COMPTROLLER OF THE CURRENCY.
FAILURES AND SUSPENSIONS OF NATIONAL BANKS.

Thirteen national banks with aggregate capital of $805,000 were
placed in charge of receivers during the year ended October 31, 1916,
and one of these banks with capital of $50,000, was restored to solvency and authorized to resume business. The combined capital of
the 12 insolvent national banks was $755,000 and their liabilities to
depositors and other creditors at date of failure were $2,772,088.
In the fiscal year 1915 ten banks failed with aggregate capital of
$1/750,000 and liabilities of $11,737,414.
The date that each bank was authorized to commence business,
date of the appointment of the receiver, during the past year, the
capital stock, and the circulation issued, redeemed and outstanding,
are shown in the following table:

Title and location of bank.

Citizens National Bank, Arlington, Tex.,
Merchants and Farmers National Batfk, Cisco, Tex
First National Bank, Bristol,
S.Dak
First National Bank, Toccoa, Ga.
First NationalBank, New Richmond, Ohio
First National Bank, Casselton,
N.Dak.i
First National Bank, Wartrace,
Term
Fourth National Bank, Fayetteville.N.C
Ben Hill National Bank, Fitzgerald, Ga.2.
First National Bank, Como, Tex.
First National Bank, Citronelle,
Ala
American National Bank, Fort
Smith, Ark
First National Bank, Aspinwall,Pa

Circulation.
Date of
Char- authority
Date of
Capital
ter
commence appointment stock.
OutReofreceiver.
No. tobusiness.
Issued. deemed. standing.

5806

May 11,1901

Nov. 6,1915 $50,000 $25,000

$8,360

$16,640

7360

Aug. 13,1904

Nov. 12,1915

50,000 50,000

21,150

28,850

8480
6687

Dec. 21,1906
Mar. 25,1903

Nov. 17,1915
Nov. 22,1915

25,000
75,000

10,910

14,090
35,350

25,000
74,200

38,850
1068

Apr. 27,1865

Nov. 30,1915

80,000

2792

Oct. 11,1882

Dec. 6,1915

50,000

9627

Jan.

Dec. 22,1915

50,000

24,600

49,715
30,285
42,050
7,950

6,1910

15,180
9,420

8682

May 10,1907

Feb. 14,1916 100,000 100,000

8966
9931

Dec. 17,1907
Feb. 11,1911

Mar. 6,1916
Mar. 7,1916

50,000
25,000

35,000
10,000

25,000

24,700

6,400

18,300

1,1916 200,000 195,597

71,035

124,562

6835

June 13,1903

Mar. 25,1916

3634

Feb.

Apr.

8824

Aug. 6,1907

Total (13 banks).
i Restored to solvency.

7,1887

Sept. 7,1916

51,325
48,675
14,695
3,060

20,305
6,940

24,500

2,600

21,900

-|805,000 718,597

273,390

445,207

25,000

2 Second failure; formerly Third National Bank.

The first failure of a national bank was in 1865; from that date
until the close of business on October 31, 1916, the number of such
banks placed in charge of receivers increased to 579. Of this
number, however, 36 were subsequently restored to solvency and
permitted to resume business. The total capital of these failed
banks was $94,540,920, while the book, or nominal, value of the
assets administered by receivers under the supervision of this bureau
aggregated $391,407,860, and the total cash realized from the liquidation of these assets was $195,595,312. In addition to this amount,
however, there has been realized from assessments of $49,605,740
levied against stockholders the sum of $23,468,194, making the total
cash collections from all sources $219,063,506, which have been disbursed as follows:

KEPORT OF THE COMPTROLLER OF THE CURRENCY.

In dividends to creditors on claims proved, amounting to $205,320,819,
the sum of
$153,186,201
In payment of loans and other disbursements discharging liabilities of
the bank other than those of the general creditors
45,196,695
In payment of legal expenses incurred in the administration of such
receiverships
5, 596, 525
In payment of receivers* salaries and other expenses of receiverships
9, 957,368
There has been returned to shareholders in rebates on assessments levied.
3,663,484
Leaving a balance in the hands of the Comptroller and the receivers of..
1,463,233
Total

219,063,506

In addition to the funds thus distributed, there had been returned,
at the close of business on October 31, 1916, to agents for shareholders,
to be liquidated for their benefit, assets having a nominal value of
$14,732,463.
The assets of the 52 national banks that are still in charge of receivers have a book, or nominal, value of $53,807,750. The receivers had
realized from these assets at the close of business on October 31,1916,
the sum of $26,105,443, and had collected from the shareholders on
account of assessments levied against them to cover deficiencies in
assets the further sum of $2,122,075, making the total collections from
all sources in the liquidation of current or active receiverships the
sum of $28,227,518, which amount has been disbursed as follows:
Dividends to creditors...
$19, 693,170
Loans paid and other disbursements discharging liabilities of the bank
other than those of the general creditors
4, 960,159
Legal expenses
..
577,795
Keceivers' salaries and all other expenses of administration
1,049,518
Returned to shareholders on account of rebates on assessments.
525,043
Leaving a balance in the hands of the Comptroller and the receivers of..
1, 421,833
Total....

28, 227, 518

The collections from the assets of the 527 national banks, the
affairs of which have been finally closed, amounted to $169,489,869,
and, together with the collections of $21,346,119 from assessments
levied against the shareholders, pake a total of $190,835,988, from
whichj on claims proved aggregating $175,144,631, dividends amounting to $133,493,031 were paid.
The average rate of dividends paid on claims proved was 76.22 per
cent, but, including offsets allowed, loans paid, and other disbursements with dividends, creditors received on an average 83.06 per cent.
The expenses incident to the administration of these 527 trusts—that
is, receivers7 salaries and legal and other expenses—amounted to
$13,926,580, or 4.13 per cent of the nominal value of the assets and
7.30 per cent of the collections from assets and from shareholders.
The outstanding circulation of these banks at the date of failure was
$26,338,794, which was secured by United States bonds on deposit
in the Treasury of the face value of $28,576,900. The assessments
against shareholders averaged 50.94 per cent of their holdings, while
the collections from the assessments levied was 47.80 per cent of the
amount assessed. The total amount disbursed during the current year
to the creditors of 41 of the insolvent banks, in the 55 dividends
declared, was $3,007,209.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

In the table following is summarized the condition of all insolvent
national banks, the closed and active receiverships being shown
separately:
Closed
Active
receiverships, receiverships,
52.
527.1
$53,807,750

$391,407,860

30,447,156
118,727,468
14,732,463
4,203,154
169,489,869

4,172,711
6,521,639
"i7,"007,"957
26,105,443

34,619,867
125,249,107
14,732,463
21,211,111
195,595,312

337,600,110

53,807,750

391,407,860

169,489,869
21,346,119

26,105,443
2,122,075

195,595,312
23,468,194

190,835,988

28,227,518

219,063,506

40,236,536
133,493,031
5,018,730
8,907,850
41,400
3,138,441

4,960,159
19,693,170
577,795
1,049,518
1,421,833
525,043

45,196,695
153,186,201
5,596,525
9,957,368
1,463,233
3,663,484

190,835,988

28,227,518

219,063,506

2 87,665,920
28,576,900
30,421,575
26,338,794
44.659,290
175,144,631

Total assets taken charge of by receivers

Total, 579.

$337,600,110

Items.

6,875,000
4,854,150
4,302,249
4,823,405
4,946 450
30,176,188

94,540,920
33,431,050
34,723,824
31,162,199
49,605,740
205,320,819

Disposition of assets:
Offsets allowed and settled
Loss on assets compounded or sold under order of court
Nominal value of assets returned to stockholders
Nominal value of remaining assets
Collected from assets
Total
Collected from assets as above
Collected from assessment upon shareholders
Total collections

Disposition of collections:
Loans paid and other disbursements
Dividends paid
Legal expenses
Receivers' salaries and other expenses
Balance in hands of Comptroller or receivers
Amount returned to shareholders in cash
' Total

Capital stock at date of failure
Bonds at failure
Amount realized from sale of bonds
Circulation outstanding at failure
Amount of assessment upon shareholders
Claims proved

1 Includes 36 banks restored to solvency.
2 Includes capital stock of 36 banks restored to solvency.

The affairs of 16 insolvent banks were closed during the year
ended October 31, 1916, and in the accompanying table appears
information relative to the capital, date of appointment of receiver,
and per cent of dividends paid to creditors.
Title.

Chestnut Street National Bank
American Exchange National Bank
Enterprise National Bank
First National Bank
First National Bank
Cosmopolitan National Bank
Washington National Bank
Albion National Bank
First Nationa 1B ank . .
First National Bank
First National Bank
German National Bank.
Silverton National Bank
Wharton National Bank
Citizens National Bank
First National Bank
1
8

And interest in full.
Also rebate to shareholders.

Location.

Philadelphia, Pa
Syracuse, N . Y
Allegheny, Pa
Bisbee, Ariz
East Brady, Pa
Pittsburgh, Pa
Washington, N. J
Albion, Mich
Ambridge, Pa
Rowlesburg, W. Va
Oneonta,N.Y.3
Pittsburgh, Pa.
Silverton, Colo.8
Wharton, Tex.s
Arlington, Tex
Casselton, N. Dak.&
3
4

Date receiver
appointed.

Jan.
Feb.
Oct.
Mar.
May
Sept.
Nov.
Jan.
June
July
Apr.
Mar.
Apr.
July
Nov.
Dec.

Per cent
Capital. dividends
paid to
creditors.

29,1898 $500,000
11,1904 200,000
18,1905 200,000
50,000
24,1908
25,000
1,1908
5,1908 500,000
50,000
17,1911
50,000
4,1912
50,000
5,1912
25,000
31,1912
17,1913 100,000
4,1915 500,000
9,1915
25,000
29,1915
30,000
6,1915
50,000
6,1915
50,000

lUOO.OO
95.00
35.65
59.25
67.50
2 95.90
66.30
33.40
95.50
76.50
1100.00
1100.00
100.00

Formerly in voluntary liquidation.
Creditors paid in full by liquidating agent.
5 Restored to solvency.

EEPOET OF THE COMPTBOLLEE OF THE CURRENCY.
CAUSES OF FAILURES.

Two hundred and fourteen, or over one-third, of the 579 failures of
national banks were attributable to criminal acts. In 43 of the
214 instances defalcation of officers was the cause; in 126 fraudulent
management; and in 45 the banks were wrecked by cashiers or
subordinate officers. Unlawful loans—that is, loans in excess of the
statutory limit—were the principal causes of 113 of the failures. In
61 of the 113 instances excessive loans were made to officers and
directors and in 52 to others than officers and directors. Depreciation
in the value of assets was the ascribed cause of 83 of the failures.
Injudicious or careless banking was the cause of 139, or nearly onefourth of the total number, aiyi the remaining 30 failures were
ascribed to insolvency of large debtors, "runs," nonliquidity of
assets, etc.
In the following tables are shown the number and percentages of
failures from principal causes, together with the number of times the
principal causes figured.
Principal causes offailures of national banks.
Causes.

Per cent.

Involving criminal actions.
Defalcation of officers
Fraudulent management
Wrecked by cashier
Wrecked by defalcation bookkeeper.
Wrecked by assistant cashier
Involving unlawful acts
Excessive loans to officers
Excessive loans to others
Depreciation of assets
Securities
Real estate
General stringency money market...
Failure of large debtors..
Injudicious banking
Closed by run or in anticipation
No record of cause

36.9

19.5
14.3

Total..

100.0

Number of times principal causesfiguredin the failures of national banks.
No.

Involving criminal actions
Defalcation of officers
Fraudulent management.
Involving unlawful acts
Excessive loans to officers
Excessive loans to others
Injudicious banking
Depreciation of securities

265
59
206
137
79
58
404
279

INTEREST-BEARING DEBT OF THE UNITED STATES, NATIONAL
BANK CIRCULATION, ETC.
The interest-bearing debt of the United States on October 31,
1916, was $972,469,290, of which $700,882,130 is at the rate of 2 per
cent, $9,151,800 at 24 per cent, $143,945,460 at 3 per cent, and
$118,489,900 at 4 per cent. It thus appears that the annual interest
charge is $23,304,397.40, or an average of about 2.39+ per cent.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

During the year United States 2 per cent bonds, including Panama
Canal bonds, to the amount of $30,000,000, purchased by the Federal
reserve banks, were converted into bonds and Treasury notes, bearing
interest at the rate of 3 per cent, in conformity with section 18 of the
Federal reserve act. Of the total amount converted, consols of 1930
aggregating $13,871,100 and Panama Canal bonds to the amount of
$1,889,900 were converted into the thirty-year 3 per cent gold bonds;
and consols of 1930 to the amount of $12,252,000 and Panama Canal
bonds aggregating $1,987,000 were converted into one-year gold
notes; hence there was a total issue of $15,761,000 of converted
bonds and $14,239,000 of one-year Treasury notes.
As a result of these conversions the amount of United States bonds
available as security for bank circulation is reduced to $883,317,490
and consists of $620,127,050, consols of 1930 (2 per cent), $80,755,080
Panama Canal bonds (2 per cent), $63,945,460 loan of 1908-1918
(3 per cent), and $118,489,900 loan of 1925 (4per cent). Other than
the conversion of the 2 per cent bonds into the 3 per cent bonds and
notes, hereinbefore referred to, the only change in the interest-bearing debt during the year was in the issuance of the $1,844,700 of 2^
per cent Postal Savings bonds.
The rates of interest and amount of each class of United States
bonds—registered and coupon—outstanding October 31, 1916, are
shown in the following table:
Rate of
interest.

Title of loan.

Consols of 1930
Loan of 1908-1918
Loan of 1925
.Panama Canal loan:
Series of 1906
Series of 1908
Series of 1911
Conversion bonds
One-year Treasury notes
Postal Savings bonds (first to tenth series)
Postal Savings bonds 1916-1936 (eleventh series)
Total

Registered.

Per cent.
2 $617,413,950
3
47,408,080
4
101,380,350
.

2
2
3
3
3
2J

Coupon.

Total.

$2,713,100 $620,127,050
16,537,380 63,945,460
17,109,550 118,489,900

51,844,140
28,697,220
41,542,100
2,492,200
1,660,000
7,444,200

10,340
203,380
8,457,900
13,268,800
12,579,000
800,900
67,720

51,854,480
28,900,600
50,000,000
15,761,000
14,239,000
8,245,100
906,700

900,721,220

71,748,070

972,469,290

MONTHLY RANGE OF PRICES FOR, AND INVESTMENT VALUE OF, UNITED
STATES BONDS.

In the New York market the prices for United States bonds fluctuated but slightly during the year. The 4 per cent, registered, loan
of 1925, ranged irom 109, the opening price in November, 1915,
to 110f, the closing figures in October, 1916; the 3 per cent, 19081918, ranged from par in June and July to 102f in March and April,
closing in October at lOOf-lOlJ; the 2 per cent (consols of 1930),
quoted at 98\ in July and August, were 100i in April and May, the
closing prices in October being 99J to 100. The range for the Panama
Canal 2 per cents was slightly less than for the consols.
The rates of interest realized by investors in United States bonds, at
the average price flat, during the year, were as follows: Four per cent,
from 2.549 in April to 2.747 in January; 2 per cent (consols), from
2.021 in April to 2.590 in October; 2 per cent (Panama Canals),

REPORT OF THE COMPTROLLER OF THE CURRENCY.

from 2.031 in April to 2.121 in January; and 3's (1908-1918), from
2.158 in April to 3.188 in July.
In Volume 2 of this report will be found tables relating in detail
to the monthly range of prices of United States bonds in New York
during the past two years and the investment value of the bonds
during the past year.
BANKS; INVESTMENTS IN UNITED STATES BONDS.

By reference to the last report of condition of national banks,
September 12, 1916, it appears that the associations held or owned
United States bonds to the amount of $729,777,000, of which $687,201,990 were on deposit to secure circulating notes, $27,939,550 to
secure Government deposits, and $14,635,460 deposited to secure
postal savings and held unpledged. The exact amount deposited
as security for postal savings and the amount of free bonds are not
shown in the compiled returns from the banks.
In addition to the bonds held as security for circulation of active
national banks, the Treasurer of the United States holds $756,000 as
security for the outstanding circulation of liquidating and insolvent
national banks.
FEDERAL RESERVE BANK INVESTMENTS IN UNITED STATES BONDS.

Under section 18 of the Federal reserve act, relating in part to the
retirement of national-bank circulation and withdrawal of bonds,
the Federal Reserve Board has authority to direct the Federal
reserve banks to purchase such bonds, when applications to sell are
filed with the Treasurer of the United States, to an amount not
exceeding $25,000,000 in any one year. By reason of the extensive
purchases from national banks direct, and otherwise, by the Federal
reserve banks, the Board has not exercised its authority in this
respect. The November 3 statement of the condition of the 12
Federal reserve banks shows an investment of $51,907,000 in United
States bonds and interest-bearing notes.
From the June, 1916, returns from banks other than national, it
appears that investments of institutions of that character in Government bonds aggregated approximately $7,500,000. Summarizing
the foregoing details, it appears that about $790,000,000, or approximately 80 per cent, of the interest-bearing debt of the United
States is owned by the banks of the country.
DEPOSITS AND WITHDRAWALS OF UNITED STATES BONDS.

Despite the favorable price of 2 per cent consols and Panama
Canal bonds, the additional amount of bonds eligible as security for
circulation (some $186,000,000) and the computed profit on the
issuance of national-bank circulation, there has been a material
reduction in the amount of bonds on deposit with the Treasurer of
the United States as security for circulation, the net decrease for
the year ended October 31, 1916, being $47,017,550. Bonds for
securing circulation were deposited to the amount of $11,341,160.
This sum includes $10,065,910 deposited by banks previously chartered and $1,275,250 by 30 of the 122 banks chartered during the

REPORT OF THE COMPTROLLER OF THE CURRENCY.

year. The withdrawals of bonds aggregated $58,358,710, of which
$46,036,640 were withdrawn by banks reducing v
their circulation,
$8,782,070 by banks liquidating, and $3,540,000 on account of
insolvent banks.
In connection with the foregoing changes in respect of bonds securing national bank circulation it appears that of the investments of
the Federal reserve banks in United States bonds, $12,760,550 were
deposited during the year with the Treasurer of the United States
in trust as security for Federal reserve bank notes. The withdrawals
of bonds by these banks totaled $3,360,550, leaving the net increase
and also the total amount on deposit on October 31, 1916, to the
credit of the Federal reserve banks, on account of Federal reserve
bank notes, $9,400,000.
The details of the bond transactions during the year, in respect
of national banks, are shown in the table following:
United States bonds deposited as security for circulation by banks chartered and by those
increasing their circulation, together with the amount withdrawn by banks reducing
their circulation and by those closed, during each month, year ended Oct. 31, 1916.

Date.

1915.

November
December

1916.

January
February.
March
April
May.
June
July
August
September
October
Total

Bonds deposited by
all banks
Bonds
Bonds
Bonds
chartered withdrawn withdrawn withdrawn
and those by banks by banks by banks
in liquiincreasing reducing
in insolcirculation circulation,. dation.
vency.
during the
year.

$1,434,000
917,200
1,
903,
694,
1,513,
566,
791,
249,
619,

$2,363,000 $1,550,000
50,000
1,026,000
6,176,
9,038,
9,070,
8,986,
6,654,
701,
445,
130,
1,269,
176,

i l l , 341,160 46,036,640
1

1,195,410
1,108,750
797,400
810,250
666,250
415,010
788,000
696,500
287,500
417,000

8,782,070

$1,000,000
1,000,000

150,000
810,000
80,000

500,000
3,540,000

Includes $1,275,250 deposited by banks chartered during the year.

NATIONAL-BANK CIRCULATION.

By reference to the table following, it will be noted that there was
an almost uninterrupted reduction from month to month in the
volume of United States bonds on deposit to secure national bank
circulation, and in consequence a decline in the amount of circulation outstanding. From November 30, 1915, to October 31, 1916,
the amount of bonds held as security for circulation fell from
$731,496,540 to $687,957,990, or $43,538,550. The outstanding circulation declined from $776,365,653 to $726,069,290, a reduction
of $50,296,363. The bond-secured circulation was reduced from
$720,633,061 to $679,650,913; that is, a reduction of $40,982,148.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

When a national bank is closed by voluntary liquidation or otherwise, or its circulation liability reduced, the proceeds of the securing
bonds, or other lawful money to the amount of the circulation to be
retired, is deposited with the Treasurer of the United States to provide for the redemption of the notes when presented. Lawful
money on deposit with the Treasurer of the United States for that
purpose on November 30, 1915, amounted to $55,677,100, increased
to $62,045,070 by May 31, 1916, the amount held on October 31,
last being $46,418,377.
November, 1915, was the last month in which national-bank circulation secured by miscellaneous securities and issued in 1914-15
under authority of the so-called emergency currency act of 1908
was reported. Before the close of the year 1915, however, provision
had been made for the release of the securities and the deposit of
the $55,492 necessary for the redemption of that amount of the
remaining emergency issues outstanding.
Bonds on deposit, circulation secured thereby and by lawful
money at the close of each month, year ended October 31, 1916,
are shown by the following table:
Bonds and circulation.

Date.

Nov. 30.
Dec. 31
Jan. 31
Feb. 29
Mar. 31
Apr. 30
May 31
June 30
July31
Aug.31
Sept. 30
Oct. 31

1915.

Circulation secured by—
Issue value
United States of miscellaneous
bonds on
MiscelLawful
securities United States laneous
deposits
on deposit.
bonds.
money.
securities.

Total
circulation
outstanding.

$731,496,540
730,337,740

$55,492 $720,633,061
719,571,758

$55,492 $55,677,100
51,765,450

$776,365,653
771,337,208

724,194,340
715,256,090
706,454,690
696,750,590
690,044,040
690,440,930
689,774,660
689,739,180
687,931,240
687,957,990

718,923,490
711,129,418
702,730,413
693,132,610
686,634,103
685,583,635
685,996,918
683,786,698
684,409,881
679,650,913

47,468,578
51,866,895
55,706,278
60,622,296
62,045,070
57,591,025
54,324,278
50,707,153
48,900,332
46,418,377

766,392,068
762,996,313
758,436,691
753,754,906
748,679,173
744,174,600
740,321,196
734,493,851
733,310,213
726,069,290

1916.

i Includes bonds held for account of banks in process of liquidation.
NATIONAL-BANK

CIRCULATION

REDEEMED.

In the year ended October 31, 1915, national-bank circulation to
the amount of $800,700,000 was received at the Treasury for redemption, this unusually large amount being due to the extraordinary
issues of emergency currency between August, 1914, and June, 1915.
During the current year the receipts were $492,259,690, but
$80,308,800 of these notes being "fit for use/ 7 were, after redemption,
returned to the banks of issue. This left $411,950,890 of unfit notes
redeemed and delivered to the Comptroller of the Currency for destruction and replacement by new issues, except where there were to be
no further issues by reason of liquidations or reductions of circulation
liability. The receipts, monthly, ranged from $57,627,997 in Janu

REPORT OF THE COMPTROLLER OF THE CURRENCY.

ary to $31,873,306 in September, the monthly average bein^ approximately $41,000,000, or nearly $1,350,000 for each day o the
year.
The law provides that the banks shall reimburse the Treasurer
for transportation charges and cost of assorting national-bank notes
received for redemption. For the fiscal year ended June 30, 1916,
these expenses averaged $0,817+ per $1,000 of notes redeemed.
Including the circulating notes of the Federal reserve banks the receipts by the Treasurer of all bank notes for the year aggregated
$544,074,315. By reference to the second table following it will be
learned that over $383,000,000, nearly 70 per cent, of the bank notes
received for redemption came from five of the principal cities of the
country.
Receipts of each class of bank circulation, by months, together
with the amounts of all classes received from the principal sources,
are shown in the following tables:
Monthly receipts.

1916.

January
February...
March
April
May
June
July
August
September.
October
Total.

Federal
reserve
notes.

$1,936,050
2,688,320

57,627,997
43,014,126
45,283,709
39,215,708
41,943,483
40,945,940
38,796,149
39,092,300
31,873,306
32,170,245

4,196,460
3,165,325
4,516,750
5,216,030
5,313,260
5,897,100
5,364,840
4,492,480
4,318,315
4,532,105

$21,005
28,960
32,770
41,150
53,705

492,259,690

1915.

NovemberDecember.,

Nationalbank
notes.

$39,259,618
43,037,109

Date.

Federal
reserve
bank notes.

51,637,035

177,590

Principal sources of receipts.
New York
Boston
Philadelphia
Baltimore
Chicago
Cincinnati
St. Louis
New Orleans
Other sources

Total
INCREASE OR DECREASE OF NATIONAL-BANK

$199, 207,400
43, 216,000
34, 374, 500
12, 867, 000
75, 540, 500
17,195, 500
31, 566, 000
7, 380, 000
122, 727, 415
544, 074, 315
CIRCULATION.

The amount of increase or decrease of national-bank circulation
issued and retired each year since January 14, 1875, the date of the
act repealing section 5177, United States Revised Statutes, limiting
the aggregate amount of circulating notes of national banking
associations, and the changes, quarterly, during the last year, are
shown in the following table:

BEPORT OF THE COMPTROLLEE OF THE CURRENCY.

Yearly increase or decrease in national-bank circulation from Jan. 14, 1875, to Oct. 31,
1915, and quarterly increase or decrease for the year ended Oct. 31, 1916.
Date.
From
1875
1876
1877
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892.
1893
1894
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904
1905

Issued.

J a n . 14 to J a n . 31, 1875
.
.
. .
.

-.
:.

• . .

1906...

1907
1908
1909
1910
1911
1912
1913
1914
1915

Total..

From Nov. 1, 1915, to Jan. 31, 1916
Apr.30,1916
July 31, 1916
Oct. 31,1916
Total
Surrendered to this office and retired from
Jan. 14,1875, to Oct. 31,1916
Grand total

Retired.

$587,580
12,953,695
7,777,710
19,842,985
12,663,160
27,126,235
8,347,190
34,370,050
21,427,900
12,669,620
8,888,944
17,628,924
8,979,959
16,064,424
15,924,157
5,768,180
9,534,400
18,934,355
12,867,044
41,584,000
10,890,492
20,752,231
31,714,656
7,008,014
34,682,825
19,110,552
101,645,393
123,100,200
42,620,682
68,177,467
69,532,176
90,753,284
84,085,260
56,303,658
141,273,164
82,504,444
57,101,345
49,896,951
38,747,149
37,210,597
387,763,860
27,485,675

$255,600
18,167.436
28,413; 265
16,208,201
9,031,558
6,967,199
6,880,458
15,697,878
20,694,838
24,920,477
30,990,730
26,206,200
32,871,849
42,933,463
52,430,030
40,340,254
28,382,190
21,235,457
11,624,877
8,095,313
13,008,267
12,526,159
9,843,648
14,613,787
17,087,925
15,198,118
16,537,068
15,951,527
21,868,006
28,474,958
31,930,783
22,732,060
25,055,739
27,980,139
80,025,078
48,433,296
33,011,015
35,284,247
27,586,734
26,441,867
20,246,418
342,807,533

1,896,249,587
3,436,770
2,757,400
2,725,620
1,673,910

1,328,991,645
15,564,480
16,629,700
15,723,344
11,109,279

1,104,071,331 536,813,389
12,127,710
13,872,300
12,997,724
9,435,369

1,906,843,287

1,388,018,448

1,104,071,331 585,246,492

Increase.
$281,980
3,634,784
3,631,602
20,159,036
1,466,732
18,672,172
733,062

1,445,385,443

$5,213,741
20,635,555

12,250,857
22,101,786
8,577,276
23,891,890
26,869,039
36,505,873
34,572,074
18,847,790
2,301,102
1,242,167
33,488,687
8,226,072
21,871,008
17,594,900
3,912,434
85,108,325
107,148,673
20,752,676
39,702,509
37,601,393
68,021,224
59,029,521
28,323,519
61,248,086
34,071,148
24,090,330
14,612,704
11,160,415
10,768,730
367,517,442

2,117,775
7,605,773

315,322,858

57,366,995
1,906,843,287

Decrease.

57,366,995
1,104,071,331

642^613,487

NOTE.—Additional Federal reserve bank notes retired, $71,750.

DENOMINATIONS OF NATIONAL-BANK CIRCULATION.

The act of June 3,1864, provided for the issuance of national-bank
circulation in denominations of $1, $2, $5, $10, $20, $50, $100, $500,
and $1,000; that not more than one-sixth part of the notes furnished
to any association should be of a less denomination than $5, and that
after the resumption of specie payments no association should be
furnished with any notes of a less denomination than $5. The act
of March 14,1900, limited the amount of $5 notes issuable to any bank
to one-third of its total issues and authorized banks to receive and
issue circulating notes to the extent of the par value of the bonds
deposited.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Issues of $1 and $2 notes were discontinued in 1879. Of the total
issues of ones, $23,169,677, and of twos, $15,495,038, there are still
outstanding $342,137 of ones and $163,468 of twos. The issuance of
notes of denomination of $500 was discontinued in 1885 and of the
$1,000 denomination in 1884. By reference to the accompanying
table it will be noted that there are still outstanding 176 of the $500
notes and 22 of the $1,000 notes. The total amount of $500 notes
issued was $11,947,000 and of $1,000 notes, $7,379,000.
The amount of each denomination of national-bank circulation
outstanding on March 13, 1900, and on October 31, 1916, is shown
in the following table:
Denominations.
Ones.
Twos

Mar. 13,1900. Oct. 31,1916.

rives

.
. . .

.
. .

Less notes redeemed but not assorted by denominations
Total

$342,137
163,468
112,183 440
309,851,790
237,727,380
29,696,300
37,038,100
88,000
22,000
55,527

254,026,230

727,168,142
1,098,852

254,026,230

Tens
.
Twenties
Fifties . . .
One hundreds
Five hundreds
One thousands..
Unredeemed fractions

$348,275
167,466
79 310,710
79,378,160
58,770,660
11,784,150
24,103,400
104,000
27,000
32,409

726,069,290

VAULT ACCOUNT OF NATIONAL-BANK CIRCULATION.

At the close of business on October 31,1915, national-bank currency
available for shipment to national banks amounted to $545,992,740
and during the year ended October 31, 1916, the amount received
from the Bureau of Engraving and Printing was $239,434,690; hence
a total to be accounted for of $785,427,430.
During the current year the shipments to the banks aggregated
$356,300,750, and the withdrawals from the vault for destruction,
by reason of liquidation and changes of titles of banks, $15,148,820,
thus making total withdrawals $371,449,570 and leaving stock on
han4, November 1, 1916, the beginning of the next report year, of
$413,977,860.
PROFIT ON NATIONAL-BANK CIRCULATION.

National-bank circulating notes are taxed by the Government at
the rate of one-fourth of 1 per cent semiannually, where secured by
bonds bearing interest at the rate of 2 per cent, and at one-half of 1
per cent semiannually in case the securing bonds bear a higher rate of
interest than 2 per cent. In addition to this tax, the banks are required to pay for the plates from which the notes are printed, together with the expenses incident to the redemption of their notes.
An additional item to be considered in connection with the profit on
circulation is the premium paid for the bonds.
In computing the profit, the Government Actuary assumes an
investment in bonds to the amount of $100,000 and that money is

REPORT OF THE COMPTROLLER OF THE CURRENCY.

worth 6 per cent. Banks receive from the Comptroller circulating
notes to the extent of 100 per cent of the face value of the bonds deposited as security therefor, but by reason of the 5 per cent redemption fund requirement they have available to loan but 95 per cent of
their issues; hence the gross receipts are the fixed interest on the
bonds and 6 per cent interest on 95 per cent of the circulation
received. The actuary's computations are based on three classes of
bonds—consols of 1930, Panama Canal bonds, 1916-1936, and the
4 per cents of 1925.
The average net price monthly during the year for the 2 per cent
consols ranged from 98.479 to 99.750; hence the rate of profit on circulation in excess of 6 per cent on investment in bonds, was 1.316 per
cent at a low price of bonds and 1.167 at the high price.
Profit on circulation secured by Panama Canal bonds was a fraction
greater than on the 2 per cent consols of 1930, by reason of the
slightly lower price of the former. The 4 per cent bonds of 1925
averaged 110 in December, 1915, and January, 1916, and reached
111.583 in March. The profit on circulation secured by these bonds
varied from a maximum of 1.111 per cent to a minimum of 0.857 per
cent in excess of 6 per cent on investment in the bonds.
In Volume 2 of this report will be found tables containing the
computation made by the Government Actuary, showing the profit
on circulation at the average net prices monthly for the bonds on
$100,000 consols of 1930, Panama Canal bonds, and the 4 per cent
bonds of 1925.
TAXES ON NATIONAL BANKS, REDEMPTION CHARGES, EXAMINERS'
FEES, AND EXPENSES OF THE CURRENCY BUREAU.

Expenses incident to the issue of national-bank circulation, in the
fiscal year ended June 30, 1915, were extraordinarily heavy, over
$7,418,000, by reason of the issue of about $385,000,000 of emergency
currency under authority of the act of May 30, 1908. The tax on this
class of currency was $2,977,000; the cost of redemption was abnormal and it became necessary to engrave many extra plates.
The retirement of all of that currency having been provided for by
the end of June, 1915, the tax and other expenses this year are confined to the regular issues of United States bond-secured currency
and are reduced to $4,218,322.99, of which $3,744,967.77 was the tax
on the notes, $23,205 cost of plates, and $450,150.22 redemption
charges.
Other expenses to the banks in so far as the Government is concerned, are examiners' salaries and expenses, the income, capital, and
broker taxes. The salaries of examiners for the fixcal year ended
June 30,1916, amounted to $577,762.64; the income tax, 1 per cent on
net earnings, to $1,500,000; and capital tax, $1 per 1,000 on capital,
surplus, and undivided profits, to $2,100,000. The income and capital
tax are computed on data in this office relating to net earnings,
capital, etc., of the banks for the current fiscal year as the returns from
national banks are not segregated by the Internal-Revenue Bureau.
From 1863 to 1916, inclusive, the tax paid on circulating notes by
national banks aggregated $136,857,219.64 and on capital and net

REPORT OF THE COMPTROLLER OF THE CURRENCY.

earnings, under various acts during that period, some $91,000,000,
or an aggregate of over $228,700,000, as follows:
Tax on circulation, 1863 to 1916
Tax on deposits to 1882.
:
Tax on capital to 1882
Tax on capital from 1899 to 1902
Tax on capital from 1914 to 1916
Tax, corporation, and income from 1909 to 1916

$136, 857, 219.64
60, 940, 067.16
7, 855, 887.74
7, 048, 413.00
5, 574, 500.00
10, 514, 700.00

The expenses of the Currency Bureau from 1863 to 1916, exclusive
of contingent expenses paid from the general appropriation for contingent expenses of the department, were $17,595,810, and for the
current year they were $394,613.30, of which the salary item was
$153,333.66, and for special dies, plates, paper, printing, etc.,
$241,279.64.
TRANSACTIONS OF CLEARING-HOUSE ASSOCIATIONS.

Through the courtesy of Hon. William Sherer, manager of the New
York Clearing House Association, a statistical summary has been
obtained relating to the transactions of the clearing houses of the
country for the year ended September 30, 1916, together with a
revised statement of the transactions for the year 1915, the details
of which appear in Volume 2 of this report. The returns show
that there are 173 clearing houses in the country, an increase of 10,
over the prior year, in the .number reporting their transactions.
The aggregate transactions for the current year were $241,407,541,000, while those for 1915 were $163,174,137,000. There were
decreases in only seven associations, amounting in the aggregate to
$42,947,000, the greatest decrease being in Albany, N. Y., and
amounting to $31,355,000, while there were increases in 166 cities,
totaling $78,276,351,000, the net increase being $78,233,404,000.
The exchanges of the 16 associations exceeding one billion each
aggregated $217,414,066,000, approximately 90 per cent of the grand
total of $241,407,541,000. The transactions of these 16 cities show
an increase of $73,191,019,000 over the clearings for thepreceding
year, ranging from $137,894,000 m Minneapolis, Minn., to $56,338,001,000 in New York.
Increases in five principal cities were as follows: New York,
$56,338,001,000; Philadelphia, $4,050,121,000; Chicago, $3,725,285,000; Boston, $2,698,779,000; St. Louis, $1,064,177,000. In the
other 11 of the 16 cities referred to there was an aggregate increase
of $5,314,656,000, while the increases in the other 157 cities totaled
$5,085,332,000.
The clearings for 1916 exceed the average for the years 1907 to
1915 by approximately $81,800,000,000.
The New York Clearing House, established in 1854, has been in
existence 63 years. The number of bank members of the association
is 63, and the aggregate capital represented, $185,550,000, an increase
of 1 in membership and in capital of $7,000,000 during the vear
ended Sept. 30, 1916. The clearings increased during the year from
$90,842,000,000 to $147,180,000,000, hence an increase of $56,338,000,000, or over 60 per cent. The average daily clearings were
$484,147,000, the percentage of balances to exchanges was 5.82, and

REPORT OF THE COMPTROLLER OF THE CURRENCY.

of funds used in settlement of balances 17.40 per cent was in gold
and 82.60 per cent in legal tenders, etc.
The clearing-house transactions of the Assistant Treasurer of the
United States at New York for the year were as follows: Exchanges
received from clearing houses, $399,384,000; balances received from
clearing houses, $249,244,000; exchanges delivered to clearing houses,
$593,353,000; balances paid to clearing houses, $55,275,000. The
transactions of the Assistant Treasurer showed an excess of credit
balances of $193,969,000.
The exchanges for 1916 of the 16 clearing houses of the United
States, with operations in excess of $1,000,000,000 each, and of the
same clearing houses for 1915, and of all other clearing houses for
the two years mentioned, together with the amount of increase or
decrease m each case, are shown in the following table:
Comparative statement of the amount of exchanges of 16 clearing houses with exchanges in
excess of $1,000,000,000 each, and of all others combined, for the years ended Sept. SO,
1916 and 1915.

Clearing house at—

Exchanges for
year ending
Sept. 30,1916.
$147,180,709,000
19,129,452,000
10,180,120,000
12,018,127,000
4,947,429,000
3,216,124,000
4,507,986,000
3,186,602,000
2,192,008,000
1,658,175,000
1,465,000,000
2,020,598,000
2,134,768,000
1,218,906,000
1,180,040,000
1,178,022,000

New York, N . Y . . .
Chicago, 111
Boston, Mass
Philadelphia, P a . . .
St. Louis, Mo
Pittsburgh, Pa
Kansas City, Mo....
San Francisco, Cal..
Baltimore. Ma
Cincinnati, Ohio....
Minneapolis, Minn..
Detroit, Mich
Cleveland, O h i o . . . .
Los Angeles, Cal
New Orleans, L a . . .
Omaha, Nebr
Clearing houses (16).
All others (157)

217,414,066,000
23,993,475,000

Exchanges for
year ending
Sept. 30,1915.

Increase.

$90,842, 708,000 $56,338,001,000
15,404, 167,000
3,725,285,000
7,481,341,000
2,698,779,000
7,968,006,000
4,050,121,000
3,883,252,000
1,064,177,000
2,527,701,000
688,423,000
3,615,490,000
892,496,000
2,583,278,000
603,324,000
1,727,833,000
464,175,000
1,274,149,000
384,026,000
1,327, 106,000
137,894,000
1,358,106,000
662,492,000
1,369,429,000
765,339,000
1,027, 127,000
191,779,000
898, 763,000
281,277,000
934, 591,000
243,431,000
144,223,047,000
18,951,090,000

73,191,019,000
5,085,332,000
78,276,351,000
42,947,000

Total

241,407,541,000

163,174,137,000

78,233,404,000

RATES FOR MONEY IN NEW YORK.

The monthly rates for money in the New York market during the
year ended with October, 1916, as reported to the Comptroller by the
Commercial and Financial Chronicle, ranged, for call loans, from a
minimum of l i to 3, between November, 1915, and the following
May; 2J to 4 in June and 2 to 6 in July. Kates fell 2 to 2f in August,
rose 2 to 3 in September, and in the closing month, October, ranged
from 2 to 4.
Time loans, 60 days, ranged from 2\ to 2 | in November to February;
2\ to 3 from March to May, inclusive; reached 3J to 4} in July, and
ranged from 2f to Z\ in August to October, inclusive.
Time loans, 3 to 6 months, ranged from 2\ in November to 4 in
June. In July the range was from 3 | to 4f; in August, 8 to 4; in
September, 3 to 3f; and in October, 3J to 3J.
63366°—17
6

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Rates for commercial paper, double name, choice 60 to 90 days and
single name, prime 4 to 6 months, corresponded during each month
of the year, ranging from 2f to 3i in November, 1915; 3 to 3f from
December to June, inclusive, rose 3f to 4 | in July, declined 3 | to 4 in
August and 3 J to 3 J in September and October.
Single name, good, 4 to 6 months paper, ranged from 3 i to 3f in
November, 1915, 3J to 3J from December to May, rose to 4 in June,
ruled at 4 to 4J in July and August, stood at 4 in September, and
closed in October at 3f to 4.
The range of rates monthly for each class of paper is shown in the
following table:
Range of rates for money in the New York market, year ended Oct. SI, 1916.
1915
Character of loans.

Call loans, stock exchange:
Range.
Time loans:
60 days
90 days
4 months
5 months
6 months
Commercial paper:
Double names—
Choice, 60 to90 days.
Single n a m e s Prime, 4 to 6 months.
Good, 4 to 6 months..

November.

11 to 2

1916

Decem- January.
ber.

to 3
to 3
to 3

March.

If to 2

1J to 2\
to2i

21 to 3
2|to3
2f to 34

February.

Htoaj

2\ to 2f
2f
2f to 3
3
3

April.

2£ to 3
21 to 3
3 to 34
3
3

21 to 34

3 to 34

3 to 3J

3 to 34

2f to 34
34 to 31

3 to 34
34 to 3*

3 to 34

3 to 3J
3J

3 to 34
3|

3 to 34

1916
Character of loans.
May.
Call loans, stock exchange:
Range..
Time loans:
60 days,
90 days
4 months
5 months
6 months
Commercial paper:
Double names—
Choice, 60 to 90 days
Single namesPrime, 4 to 6 months
Good, 4 to 6 months

June,

2£to3
2| to 3
3 to 34
3 to 34
3 to 34

i
j
I 3 to34

3 to 34
3|

August.

2 to 6

l£to 3

i July.

2 to2|

Septem- October.
ber.

2 to 3

21 to 3
3 to 3^
34 to 31
3Jto4
3 | to 4

2f to 3|
3 to3|
3 to3f
3 to 4
3 to 4
3 J to 3f

3f to 4J

3fc to 31

31 to 44
4 to 4}

3| to 4

2 to 4
3 to 3
34 to 3
34 to 3
3

34 to 3}

34 to 3 |

34 to 3£
4

34 to 3J
31 to 4

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Discount rates of the Federal reserve banks in effect Nov. 27, 1916.

Banks at—

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
,
Atlanta(NewOrleans branch)
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

f
3*

f
4
4

i Rate for bills of exchange in open-market operations.
a Rate for trade acceptances bought in open market without member bank indorsement.
»Rate for commodity paper maturing within 30 days, 3£ per cent; over 30 to 60 days, 4 per cent; over 60
to 90 days, 4£ per cent; over 90 days, 5 per cent.
NOTE.—Rate for bankers' acceptances, 2 to 4 per cent.
STERLING

EXCHANGE.

It is of interest to note in connection with rates for money in New
York the rates during the same year for sterling exchange, also
reported by the Commercial and Financial Chronicle. The actual
rates for 60-day bankers' bills, reported in November, 1915, at 460J
to 468£, reached the maximum for the year, 473J- to 473-^, in the following April, and declined 4 7 1 | to 471^ in October. Sight bills in
the same months were 461J to 471f, 476f to 476J, and 475| to 4 7 5 ^ ,
respectively, while cable transfer rates were 462J to 472J in November, 1915, rose 476yf to 477-^ in April, and closed in October at
476| to 476J. The rates and ranges by months for the year ended
with October, 1916, for these documents are shown in the following
table:
Actual rates—Bankers'
Date.

November
December
January
February
March
April
May
June
July
August
September
October

1915.

1916.

bill.

Sixty-day.

Sight.

4.601 to 4.68J
4.671 to 4.71

4.61£ to 4.71|
4.70£ to4.74|

4.62| to4.72|
4.71 to 4.74|f

4.70£ to 4.73£
4.72 to4.72j
to 4.73]
to 4.73ft
to4.73|
to 4.721to4.72r
•to4.71i

4.73| to 4. 78
4.75 to 4.
4.75H to 4.
4.76a to4.
4.75& to 4.
4.75| to4.
4. 75H to 4.
4.75| to 4.
4.75H to 4. 75:
4.75f to4. 75H

4.74ft to 4.78|
4.76ft to 4.77ft
4.76ft to 4.77$

to 4.71£

Cable transfers.

" to 4.' 76|
r to 4.76ft
i to 4.76*
to 4. 76
r to 4. 76
to 4. 76

BEPORT OF THE COMPTROLLER OF THE CURRENCY.

STATE, SAVINGS, PRIVATE BANKS, AND LOAN AND TRUST
COMPANIES.

Through the cooperation of the banking departments of the several
States this office is enabled to present, as required by section 333 of
the Revised Statutes, statistics showing the condition of all banks
under State supervision in operation in the country as of June 30,
1916. Data from all incorporated banks in the United States, and
from a large percentage of private banking concerns, are included in
the tables which follow. Statistics relating to this class of banks
from 1909 to 1915 were obtained from the individual banks, reports
being made on blank forms prepared by this office. For the current
year the information has been compiled, with a few exceptions, from
the official summaries furnished by the State banking superintendents,
thus resulting in the saving of a large amount of clerical work and
expense both for the banks and for this office.
Summaries of reports of condition received fox' the current year
from banks other than national show the condition on June 30, 1916,
of 19,934 banks, or 477 more than reported in 1915.
The paid-in capital stock of these banks aggregates $1,129,052,115.96
and the resources $18,344,369,696.93. In 1915 banks other than
national reporting numbered 19,457, with an aggregate capital of
$1,094,322,264.93 and resources of $16,008,444,520.68. The increase
in capital is therefore shown to be $34,729,851.03, or 3.17 per cent,
and in resources $2,335,925,176.25, or 14.59 per cent.
A summary of the reports of condition of the banks other than
national is submitted herewith.
Summary of reports of condition of 19,934 reporting banks other than national (State
savings, private banks, and loan and trust companies), in the United States at the close
of business on June SO, 1916.
Loans and discounts:
RESOURCES.
#
Secured by real estate (including mortgages owned)
$3, 265, 242, 357. 71
Secured by collateral other than real
estate
2, 243, 908, 757.12
Loans not classified
4, 623, 287,049. 57
Total
Overdrafts
Investments (including premiums on bonds):
United States bonds
State, county, and municipal b o n d s . . . .
Railroad bonds
Bonds of other public-service corporations (including street and interurban
railway bonds)
Other bonds, stocks, warrants, etc
Total
Banking house (including furniture and
Other real estate owned
Due from banks
Checks and other cash items
Exchanges for clearing house
Cash on hand: 1
Specie
Legal-tender notes and other paper currency
1

$10,132, 438,164. 40
32,042,536.02
7, 462, 323. 65
351, 519, 368. 51
440, 262, 666. 48
174,147, 737.10
3,470, 217, 544. 94
fixtures)

4,443,609,640.68
322,415, 335. 35
168,859,451. 38
2,018,706,378.52
203, 684, 982. 32
44,815, 741. 76

$309,708,001. 50
190,517,213.00

Classification incomplete by reason of the fact that in the returns from many States the various kinds
of currency held are not shown separately.

EEPOKT OF THE COMPTROLLER OP THE CURRENCY.
Cash on hand—Continued.
Nickels and cents
Cash not classified. . . .

$2, 950,285. 01
163, 339, 822. 44
$666, 515, 321. 95
311, 282,144. 55

Total
Other resources .
Total resources

18, 344, 369, 696. 93
LIABILITIES.

Capital stock paid in
Surplus
Undivided profits (less expenses and taxes paid)
Due to banks
Dividends unpaid
•
Deposits:
Individual deposits subject to check
without notice
$6, 354, 938, 742. 24
Demand certificates of deposit
200, 936, 510. 89
Certified checks and cashier's checks
44, 732, 510.10
Savings deposits, or deposits in interest or
savings department
7,171, 546, 327. 32
Time certificates of deposits
869, 564,421. 35
Deposits not classified
88, 383, 563. 08

1,129, 052,115. 96
1,118, 304,074. 48
258, 487, 993. 50
750, 668, 916. 33
7, 591, 888. 81

Total
14, 730,102,074. 98
Postal savings deposits
,
11,108, 526. 37
Notes and bills rediscounted
20,181, 936. 89
Bills payable (including certificates of deposit representing money
borrowed)
<
77, 918, 783. 57
Other liabilities
240, 953, 386. 04
Total liabilities

18, 344, 369, 696. 93

The following table shows the principal items of resources and
liabilities for each class of banks other than national as of June 30,1916.
Resources and liabilities of 19,934 State, savings,-and private banks, and loan and trust
corritpanies, June 30, 1916.
15,450 State
banks 0 ) .

622 mutual savings banks.

1,242 stock savings banks (2).

RESOUECES.

$3,406,981,634.87 $2,221,426,717.93
Loans and discounts (including overdrafts)
693,287,158.98 1,999,131,810.54
Investments (bpnds, securitiesj etc.)
39,811,988.37
Banking house (including furniture and fixtures). 140,944,295.71
19,452,143.50
Other real estate owned
52,304,090.91
210,919,583.66
817,578,090.65
Due from banks
Checks and other cash items (including exchanges
132,262,975.92
for clearing house)
2,753,380.16
271,753,812.34
Cash on hand
26,135,692.28
37,865,094.02
28,310,670.40
All other resources

Total resources.

5,552,977,153.40

$713,987,889.45
131,404,563.61
31,749,087.19
7,429,471.59
111,099,140.62
2,416,714.42
32,821,494.87
2,420,380.85

4,547,941,986.84

1,033,328,742.60

563,497,182.91
268,821,906.55
303,300,757.57
91,152,015.33
51,380,612.85
217,212,186.75
868,536.72
3,081,220.02
4,296,253,030.05 4,186,976,600.64
4,457,263.97
943,593.78
15,495,803.64
136.78
56,893,444.76
84,230.45
36,113,099.42
4,387,518.05

72,870,175.84
30,595,344.20
16,103,770.05
6,405,727.16
349,780.23
901,610,693.88
881,654.11
878,182.11
1,082,769.27
2,550,645.75

LIABILITIES.

Capitalstock paidin
Surplus fund
Undivided profits
• - Due to banks

Dividends unpaid
Individual deposits
Postal savings deposits
Notes and bills rediscounted
Bills payable
Other liabilities
Total liabilities..

j
i

5,552,977,153.40

4,547,941,986.84

1,033,328,742.60

i Includes reports of stock savings banks for Virginia, South Carolina, Tennessee, Michigan (except 4),
Wisconsin, North Dakota, Kansas, Montana, Idaho, and Nevada. Includes trust companies for Virginia,
North Carolina, South Carolina, Tennessee, Idaho, and Nevada. Includes private banks for North Carolina and Idaho.
a Stock savings banks for 10 States included with State banks.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Resources and liabilities of 19,934 State, savings, and private banks, and loan and trust
companies, June 30, 1916—Continued.
1,606 loan and
trust companies
C1)

1,014 private
banks (2).

Total, 19,934
banks.

RESOURCES.

Loans and discounts (including overdrafts)
Investments (bonds, securities, etc.)
Banking house (including furniture and fixtures).
Other real estate owned
Due from banks
Checks and other cash i terns (including exchanges
for clearing house)
Cash on hand
All other resources

,704,368,532.04
,605,392,871.86
105,489,199.69
82,329,933.81
850,499,082.13

$117,715,926.13 $10,164,480,700.42
14,393,235.69 4,443,609,640X68
4,420,764,39
322,415,335.35
7,343,811.57
168,859,451.38
28,610,481.46 2,018,706,378.52

109,990,485.22
329,456,991.49
240,742,665.31

1,077,168.36
6,347,330.97
1,943,333.97

248,500,724.08
666,515,321.95
311,282,144.55

7,028/369,761.55

181,852,052.54

18,344,369,696.93

Capital stock paid in
Surplus fund
Undivided profits
Due to banks
Dividends unpaid
Individual deposits
Postalsavings deposits
Notes and bills rediscounted
Bills payable
Other liabilities

475,832,586.87
508,822,951.65
96,669,859.59
525,008,135.55
4,125,999.91
5,198,496,296.53
4,826,014.51
3,283,010.39
16,127,661.60
195,077,244.95

16,852,170.34
6,763,114.51
3,181,735.68
1,174,330.15
34,888.65
146,765,453.88
524,803.97
3,730,677.49
2,824,877.87

1,129,052,115.96
1,118,304,074.48
258,487,993.50
750,668,916.33
7,591,888.81
14,730,102,074.98
11,108,526.37
20,181,936.89
77,918,783.57
240,953,386.04

Total liabilities

7,028,269,761.55

181,852,052.54

18,344,369,696.93

Total resources
LIABILITIES.

1 Trust companies for 6 States included with State banks.
2 Private banks for 2 States included with State banks.

For the purpose of comparison, a statement giving the principal
items of resources and liabilities for banks other than national from
1912 to 1916, inclusive, is submitted herewith.
Consolidated returns from State, savings, private banks, and loan and trust companies.
Items.
Loans i
Bonds
Cash
Capital
Surplus and
undivided
profits.....
Deposits (individual)..
Resources...

1912

1913

1914

1915

1916

$7,979,852,420.09 $8,464,738,379.36 $8,893,923,049. 95 $9,093,527,548. 72 $10,164,480,700. 42
3,497,602,404.25 3,517,530,597.54 3,670,036,288.42 3,813,562,406.67
4,443,609,640.68
591,607,515.60
599,945,292.32
576,810,655.97
616,655 547.01
666,515,321.95
977,272,830.70 1,039,930,069.75 1,073,881,738.20 1,094,322,264.93
1,129,052,115.96
1,335,850,844.93

1,376,792,067.98

11,198,606,443.53 11,522,302,583.69 12,249,040,449.29 12,614,485,051.89
14,124,878,897.03 14,675,243,842.44 15,489,207,260.36 16,008,444,520.68

1,215,331,634.26

1,261,091,605.55

1,284,994,939.99

14,730,102,074.98
18,344,369,696.93

i Including overdrafts.

STATE BANKS.

Statements received from the State banking departments show
State banks (commercial banks) to the number of 15,450, with
aggregate capital of $563,497,182.91 and aggregate resources of
$5,552,977,153.40. These statistics include stock savings banks for Virginia, South Carolina, Tennessee, Michigan, Wisconsin, North Dakota,
Kansas, Montana, Idaho, and Nevada, and trust companies for Virginia, North Carolina, South Carolina, Tennessee, Idaho, and Nevada,
as the banking department of each of the States mentioned does not

REPORT OF THE COMPTROLLER OF THE CURRENCY.

segregate this class of banks in their summaries of reports but designates all such as commercial banks. The summary of reports, therefore, includes 852 banks more than reported last year, with an increase
in capital of $59,511,863.60 and in resources of $1,153,374,844.49.
The summary of reports submitted by State banks shows loans,
exclusive of overdrafts, classified as follows:
Secured by real estate (including farm-land loans)
Secured by collateral other than real estate
Unclassified loans

$297, 278,571.77
334, 730, 728.04
2, 747, 813, 887.61

Total

3? 379, 823,187.42

In addition to the loans, overdrafts were reported aggregating
$27,158,447.45, as against $24,926,294.51 reported for 1915.
The investments in bonds, securities, etc., are classified as follows:
United States bonds
State, county, and municipal bonds
Railroad bonds.
Bonds of other public-service corporations
Other bonds, stocks, warrants, etc

$1,310, 868.28
31, 440, 464.89
2, 005, 837.83
14, 809,195.99
643, 720, 791.99

Total

693, 287,158.98

The State banks held cash amounting to $271,753,812.34, which
was 6.32 per cent of individual deposits.
Individual deposits are classified as follows :
Subject to check without notice
Demand certificates of deposit
Certified checks and cashier's checks
Savings deposits
Time certificates of deposit
Deposits not classified
Total

$2, 529, 610,155.72
119, 365, 224.71
19, 237,171.84
961, 693, 954.30
664, 731,176.99
1,615,346.49
4, 296, 253, 030.05

In addition to the individual deposits classified as above, dividends
unpaid amounted to $3,081,220.02; postal savings deposits, $4,457,263.97; and amounts due to banks and bankers aggregated $217,212,186.75.
MUTUAL SAVINGS BANKS.

Summaries of reports of condition were received as of June 30,
1916, from 622 mutual savings banks, all being official statements
with the exception of those from Massachusetts, Connecticut, and
Maryland, the returns from these States being compiled in this office.
Deposits in mutual savings banks are the accumulations chiefly of
wage earners and, to a large extent, represent the prosperity of the
wage-earning class. The mutual savings banks are located mainly
in manufacturing centers and towns of the New England and Eastern
States, there being only 21 reporting institutions of this character in
other sections of the country, namely, 1 in West Virginia, 3 in Ohio,
5 in Indiana, 4 in Wisconsin, 7 in Minnesota, and 1 in California.
The resources of this class of banks aggregate $4,547,941,986.84
and their deposits amount to $4,186,976,600.64, credited to 8,592,271
depositors, the average deposit account being $487.30. In 1915, 630
mutual savings banks reported with aggregate resources of $4,319,382,916.93 and deposits of $3,950,666,362.08, credited to 8,307,787
depositors, the average deposit account being $475.53.

REPORT, OF THE COMPTROLLER OF THE CURRENCY.

The increases during the year have been 284,484 depositors,
$236,310,238.56 in deposits, and $11.77 in the average deposit
account. The increase in deposits during the past year is the largest
annual increase ever reported for mutual savings banks.
The following statement shows the number of mutual savings
banks reporting, the number of depositors, the aggregate deposits,
and the average deposit account for each year from 1908 to 1916:
Year.

1908
1909
1910
1911
1912
1913
1914
1915 .
1916.

Banks. Depositors.

. . .

676
642
638
635
630
623
634
630
622

Deposits.

7,137,481 $3,065,686,012
3,144,584,874
7,204,579
3,360,563,842
7,481,649
3,460,575,072
7,690,973
3,608,657,828
7,851,377
8,101,238 3,769,555,330
8,277,359 3,915,626,190
8,307,787 3,950,666,362
8,592,271 4,186,976,600

Average
to each
depositor.
$429.52
i 435.66
449.17
449.95
459.62
465.31
473.05
475.53
487.30

i Only 627 banks reported as to the number of depositors and the average deposit is taken on that basis.

The resources of the mutual savings banks are classified as follows:
Loans, $2,221,426,717.93; investments in bonds, securities, etc.,
$1,999,131,810.54; banking-house furniture and fixtures, $39,811,988.37; other real estate owned, $19,452,143.50; due from banks,
$210,919,583.66; checks and other cash items, $2,753,380.16; cash
in bank, $26,135,692.28; all other resources, $28,310,670.40.
The liabilities are classified as follows: Surplus, $303,300,757.57;
undivided profits, $51,380,612.85; due to banks, $868,536.72; individual deposits, $4,186,976,600.64; postal-savings deposits, $943,593.78; all other liabilities, $4,471,885.28.
The average rate of interest paid on deposits in mutual savings
banks in 1916 was 3.95 per cent against 3.83 per cent in 1915 and 3.86
per cent in 1914.
The following table shows the number of depositors in mutual
savings banks, the aggregate deposits, and the average amount due
to depositors, in the States indicated, on June 23, 1915, and on June
30, 1916.

KEPOET OP THE COMPTEOLLEE OF THE CTJBBENCY.

Number of mutual savings banks, number of depositors, aggregate deposits, and average
deposit account, by States, June 23, 1915, and June 30, 1916.
1915

State.
Banks.

Maine
NewHampshire
Vermont
Massachusetts..
Rhode Island..
Connecticut
Total

Depositors.

48 1238,586
48 2 200,624
20
114,964
196 32,332,369
15
149,804
82 5 632,046

Deposits.

1916

Average to
each Banks. Depositors.
depositor.

$97,423,088.63 $408.33
96,343,985.64 480.22
53,559,421.56 465.87
917,439,289.53 393.35
83,385,142.93 556.62
316,486,518.04 500.73

239,500
48
202,209
47
116,812
20
<195 2,419,914
157,445
15
653,947
<80

Deposits.

Average to
each
depositor.

$99,546,046.12
101,481,017.52
56,071,818.82
975,365,518.29
88,343, 735.47
338,899,894.47

$415.46
501.86
480.01
403.06
561.11
518.24

409 3,668,393 1,564,637,446.33

426.50

405 3,789,827 1,659,708,030.69

437.94

New York
New Jersey
Pennsylvania..
Delaware
Maryland

140~ 3,199,307 1,774,221, 482.67
26
117,396,195.11
305,236
11
223, 725,594.03
500,075
2
12,260,905.56
34,122
19 i 243,950
96, 773,243.18

554.51
384.60
447.38
359.32
396.69

141 3,335,538 1,883,242,203.58
301,943
120,383,076.18
24
515;687
238,502,832.12
11
36,691
13,362,876.51
2
99,537,966.31
< 18 246,162

564.60
398.69
462.49
364.19
404.36

Total
West Virginia..
Ohio
Indiana
Wisconsin
Minnesota
Total
California

198 4,282,690 2,224,377,420.55

519.38

196 4,436,021 2,355,028,954,70

530.89

5,985

1,497,765.34

250.25

115,241
3 33,398
8,124
106,826

62,603,425.98
12,934,308.72
2,043,219.39
26,072,807.75

543.24
387.27
251.50
244.06

263,589

103,653,761.84

87,130

56,499,968.02

630 8,307,787 3,950,666,362.08

475.53

Grand total

1
2 Estimated
3 Estimated

for 1 bank.
for 3 banks.
Estimated for 2 banks.

6,181

1,616,077.91

261.42

3
5
4
7

115,320
33,367
8,784
114,826

64,789,961.25
13,062,412.08
2,306,046.15
28,393,328.47

561.82
391.47
262.50
247.27

393.24

272,297

108,551,747.95

398.65

648.45

87,945

62,071,789.39

705. 79

622 8,592,271 4.186,976,600.64

487.30

* Unofficial.
5 Estimated for 6 banks.
STOCK SAVINGS BANKS.

Many so-called stock savings banks transact chiefly a commercial business and carry very few savings accounts, and the banking
departments of a large number of States include their returns with
commercial banks. As statistics for the current year were furnished by the banking departments in the form of summaries of
official reports made to such departments, it has not been possible
to make as complete a segregation of the reports for stock savings
banks as was done in 1915 and several years prior thereto. In 1915
stock savings banks to the number of 1,529 furnished reports to this
office. For the present year returns from only 1,242 stock savings
banks are separately shown.
Statistics for stock sayings banks of Virginia, South Carolina, Tennessee, Michigan, Wisconsin, North Dakota, Kansas, Montana, Idaho, and
Nevada are included with the statistics for commercial or State
banks as furnished this office by the banking departments of these
States. Many of the State banking departments include all classes
of banks in one official summary while others publish a summary
of the returns from each class of banks under State supervision.
So long as this practice continues it will not be possible for this office
to make comparable summaries for stock savings banks.
In California a large number of the banks are known as departmental banks which make separate reports to the banking depart

REPOKT OF THE COMPTROLLER OF THE CURRENCY.

merit of that State for each class of business, that is, for their commercial, trust, and sayings bank departments. Figures for California,
therefore, include the resources and liabilities of savings banks and
savings departments of other banks.
The 1,242 stock savings banks on June 30, 1916, reported loans
including overdrafts aggregating $713,987,889.45, classified as follows:
Secured by real estate, $357,281,829.14; secured by collateral other
than real estate, $29,011,565.34; unclassified loans, $326,361,578.64;
overdrafts, $1,332,916.33. Investments in bonds, securities, etc.,
aggregated $131,404,563.61, amount due from banks $111,099,140.62,
and cash in bank $32,821,494.87.
On the liability side, capital stock was reported at $72,870,175.84,
surplus at $30,595,344.20, and undivided profit $16,103,770.05.
The amount due to banks was $6,405,727.16. Individual deposits
aggregated $901,610,693.88. Of the individual deposits the sum
of $844,346,877.48 was classified as savings and $9,889,107.20 as
time deposits; the sum of $42,374,916.97 was reported as subject to
check without notice, $2,446,368.57 demand certificates of deposit,
$905,939.88 cashiers' checks and certified checks, and $1,647,483.78
was unclassified. The stock savings banks reported postal savings
deposits held amounting to $881,654.11.
The depositors in the reporting stock savings banks number
2,556,121, of which 2,297,911 are saying depositors and 258,210have
commercial accounts. The rate of interest paid on savings accounts
averaged 3.84 per cent.
The following table shows the number of depositors in stock savings banks, the average deposit, and the aggregate amount due to
depositors, in States indicated, on June 23, 1915, and June 30, 1916.
Number of stock savings banks, number of depositors, aggregate deposits,
o
deposit account, by States, June 23, 1915, and June 30, 1916.
1915

states.

1916
Average to
each de- Banks.
positor.

Deposits. 1

Average to
each depositor.

24,122

$9,051,992.20

$375.26

38,242
45,000

14,938,164.91
13,152,677.00

390.62
292.28

101,452

13,535,000.00

133.41

184,694

41,625,841.91

225.38

\
1
4
(2)
29
4
16
10
12
9
(2)

16,747
40,600

3,768,268.37
7,472,475.61

225.01
184.05

54,424
7,197
229,000
10,300
89,408
19,000

13,824,784.72
1,759,612.08
13,311,009.83
2,265,420.21
22,186,796.03
3,142,776.06

254.02
244.49
58.13
219.94
248.15
165.41

466,676

67,731,142.91

145.14

Banks.

New Hampshire (total
New E n g land States)..
New Jersey
Maryland
District of Columbia

Depositors.

18,911

$7,279,837.20 $384.95

1
32

33,018
42,401

13,809,514.59
12,361,731.66

418.23
291.54

1
28

148.92

Deposits. 1

80,640

12,009,195.68

Total Eastern States..

156,059

38,180,441.93

244.65

Virginia.
West Virginia..
North Carolina.
South Carolina.
Georgia
Florida
Alabama
Mississippi
.
Louisiana
Kentucky
Tennessee

20
6
28
28
22
4
11
13
11
16
33

50,162
21,623
52,697
36,398
43,331
7,197
17,294
10,244
69,085
39,892
78,501

10,556,642.02
3,518,258.72
9, 693,543.00
9,676,647.71
11,015,593.63
1,410,561.46
1,000,665.39
2,236,263.86
17,066,502.95
6,480,379.04
15,448,343.82

210.45
162.70
183.94
265.85
254.22
195.99
57.86
218.29
247.03
162.44
196.79

Total Southern States..

192

426,424

88,103,401.60

206.61

Depositors.

(

Exclusive
of dividends unpaid and postal savings deposits.

and average

100
2

Included with State banks.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Number of stock savings banks, number of depositors, aggregate deposits, and average
deposit account, by States, June 23, 1915, and June 30, 1916—Continued.
1915

1916

States.
Banks.

Illinois i
Michigan
Wisconsin
Minnesota
IowaTotal Middle
Western
States

Depositors.

190
20
2
832

550,802
75,291
23,112
614, 566

1,044 1,263,771

$187,031,772.54 $339.56
24,014,684.84 318.95
7,325,768.71 316.95
224,671,130.34 365.57

Deposits.

Average to
each depositor.

28,918

$7,571,410.38

$261.82

865

25,423
670,000

8,326,277.87
246,172,395.04

327.51
367.42

871

724,341

262,070,083.29

361.80

22,202

3,784,460.21

170.46

7
27

2,709
11,755
14,463

1,162,175.81
2,654,529.55
3,272,818.68

429.01
225.82
226.29

4
(2)
2

443,043,356.43

350.57

911,458.13
3,442,082.70
4,576,339.98
3,448,061.64
1,161,991. 74
2,252,012.58
1,707,655.71

140.22
166.04
211.17
361.12
399.44
226.06
224.27

78,934

17,499,602.48

221.69

51,129

10,873,984.25

212.68

58,327
16,530
896,975
2,113
53,764
1,954
4,206

19,229,020.37
5,198,429.38
411,339,391.21
183,414.19
13,662,372. 72
1,414,016.18
1,906,367.24

329.67
314.48
458.58
86.80
254.11
723.64
453.24

11
3
128

55,760
1,785
985,319

18,400,946.07
529,226.72
474,485,569.90

330.00
296.49
481.56

56,232

14,251,551.68

253.44

6,063

2,590,354.95

427.24

172 1,033,869

452,933,011.29

438.09

155 1,105,159

510,257,649.32

461.71

1,529 2,977,968

1,047,039,650.93

351.60

1,242 2,556,121

901,610,693.88

352. 72

North Dakota..
Nebraska
Kansas
Montana
Wyoming
Colorado
New Mexico

2
21
10
5
4
6
13

Total Western States..

61
16
10
129
1
12
1
3

Total Pacific
States
Total United
States

Washington
Oregon
California
Idaho
Utah
Nevada
Arizona

Average to
Deposieach de- Banks.
tors.
positor.

Deposits.

6,500
20,730
21,671
9,548
2,909
9,962
7,614

1 Savings deposits in savings departments of Illinois State banks and trust companies were reported
officially, on June 23, 1915, at $294,534,096.83, and on June 30, 1916, at $326,156,216.75.
2
Included with State banks.
NOTE.—Returns from the banking departments of 10 States include stock savings banks with commercial
banks. It is estimated that 300 stock savings banks with 815,000 depositors and $250,000,000 deposits are
included with the figures furnished by the State banking departments for State commercial banks.
This estimate includes the so-called stock savings banks of Michigan now combined with commercial
banks except 4, as indicated.
ALL REPORTING SAVINGS BANKS.

The growth of savings banks (mutual and stock) in the United
States from 1820 to 1916, as evidenced by the amount of deposits,
number of depositors, average deposit account, and the average per
capita in census years, from 1890 to 1916, is shown in the following
table :
Number of savings banks in the United States, number of depositors, amount of savings
deposits, average amount due each depositor in the years 1820, 1825, 1830, 1835, 1840,
and 1845 to 1916, and average per capita in the United States in the years given.

Banks. Depositors.

Year.

1820
1825
1830
1835
1840
1845,....

!
1
i
I

10
15
36
52
61
70

8,635
16,931
38,035
60,058
78,701
145,206

Deposits.

$1,138,576
2,537,082
6,973,304
10,613,726
14,051,520
24,506,677

Average Average
due each per capita
in the
deposiUnited
tor.

$131.86
149.84
183.09
176. 72
178.54
168. 77

$0.12
.54

\*82

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Number of savings banks in the United States, number of depositors, amount of savings
deposits, average amount due each depositor in the years 1820, 1825, 1830, 1839, 1840,
and 1745 to 1916, and average per capita in the United States in the years given—Contd.

Year.

1846
1847
1848
1849
1850
1851
1852
1853
1854
1855
1856
1857
1858
1859.
1860
1861
1862....
1863
1864
1865....
1866.......
1867
1868....
1869
1870
1871
1872
1873
1874
1875
1876
1877
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887...
1888
1889
1890
1891
1892
1893
1894
1895
1896
1897
1898
1899
1900
1901
1902.....
1903..
1904
1905
1906
1907
1908
1909
1910
1911
1912
1913
1914
1915
tQ1 ^/Mutual savings banks
mo
\Stock savings banks K

Banks. Depositors.

158,709
187,739
199,764
83
217,318
90
251,354
108
128
277,148
141
308,863
159
365,538
190
396,173
215
431,602
222
487,986
231
490,428
245
538,840
259
622,556
278
693,870
285
694,487
289
787,943
293
887,096
305
976,025
317
980,844
336 1,067,061
371 1,188,202
406 1,310,144
476 1,466,684
517 1,630,846
577 1,902,047
647 1,992,925
2,185,832
2,293,401
771 2,359,864
781 2,368,630
675 2,395,314
663 2,400,785
639 2,268,707
629 2,335,582
629 2,528,749
629 2,710,354
630 2,876,438
636 3,015,151
646 3,071,495
638 3,158,950
684 3,418,013
801 3,838,291
849 4,021,523
921 4,258,893
1,011
4,533,217
1,059
4,781,605
1..030 4,830,599
1,024
4,777,687
1,017
4,875,519
5,065,494
5,201,132
979 5,385,746
987 5,687,818
1,002
6,107,083
1,007
6,358,723
1,036
6,666,672
1,078
7,035,228
1,157
7,305,443
1,237
7,696,229
1,319
8,027,192
1,415
8,588,811
1,453
8,705,848
1,703
8,831,863
1,759
9,142,908
1,884
9,794,647
1,922 10,010,304
1,978 10,766,936
2,100 11,109,499
2,159 11,285,755
622 8,592,271
1,242
2,556,121

Deposits.

$27,374,325
31,627,479
33,087,488
36,073,924
43,431,130
50,457,913
59,467,453
72,313,696
77,823,906
84,290,076
95,598,230
98,512,968
108,438,287
128.657,901
149,277,504
146,729,882
169,434,540
206,235,202
236,280,401
242,619,382
282,455,-794
327,009,452
392,781,813
457,675,050
549,874,358
650,745,442
735,046,805
802,363,609
864.556,902
924,037,304
941,350,255
866,218,306
879,897,425
802,490, 298
819,106,973
891,961,142
966,797,081
1,024,856,787
1,073,294,955
1,095,172., 147
1,141,530., 578
1,235,247,371
1,364,196,550
1,425,230,349
1,524,844,506
1,623,079,749
1,712,769,026
1,785,150,957
1,747,961,280
1,810,597,023
1,907,156,277
1,939,376,035
2,065,631,298
2,230,366,954
2,449,547,885
2,597,094,580
2,750,177,290
2,935,204,845
3,060,178,611
3,261,236,119
3,482,137,198
3,690,078,945
3,660,553,945
3,713,405,710
4,070,486,246
4,212,583,598
4,451,818,522
4,727,403,950
4,936,591,849
4,997,706,013
4,186,976,600
2
90136l0,694

Average Average
due each per capita
in the
deposi- United
tor.
States.
$172.48
168.46
165.63
165.99
172.78
182.06
192.54
197.82
196.44
195.29
195. 90
200.87
201.24
206.66
215.13
211.27
215.03
232. 48
242.08
247.35
264.70
283.63
299.80
312.04
337.17
342.13
368. 82
367. 07
376. 98
391. 56
397.42
361.63
366.50
353. 72
350.71
352. 73
356.70
356.29
355.96
356.56
361.36
361.39
355.41
354.40
358.03
358.04
358.20
369.55
365.86
371.36
376.50
372.88
383.54
392.13
401.10
408.30
412. 53
417.21
418.89
423.74
433.79
429.64
420.47
420.45
445.20
430.09
444.72
439.07
444.35
442.83
487.30
352.72

$1.87

4.75

14.26

16.33

24.35
25.29
26.11
26.63
25.53
25.88
26.68
26.56
27.67
29.24
31.78
33.45
34.89
36.52
37.52
39.17
41.13
42.87
41.84
41.75
45.05
44.82
46.53
48.56
49.85
49.91

1 The relatively small amount of deposits reported for stock savings banks is due to the fact that the
returns from many States include this class of banks with commercial banks.
2 Includes time deposits, $9,889,107, and commercial deposits amounting to $47,374,709.

BEPOBT OF THE COMPTROLLER OF THE CURRENCY.

In the assembling of data in. relation to savings banks, the classification of banks as made by the State banking departments is followed, in consequence of which, in a number of States, banks heretofore treated by this office as savings banks are, for the current
year, regarded as commercial banks and the returns are combined.
In the foregoing table the figures for 1896 to 1908, inclusive, but
not subsequently, include the number of depositors and the amount
of deposits in the State banks of Illinois having savings departments,
but not the number of such banks, by reason of the fact that general
returns from these institutions are incorporated in State banks' returns.
LOAN AND TRUST COMPANIES.
m

Summaries of reports of condition as of June 30, 1916, from 1,606
loan and trust companies show aggregate capital of $475,832,586.87,
and aggregate resources, $7,028,269,761.55.
In June, 1915, reports were received from 1,664 loan and trust
companies with capital of $476,806,240 and aggregate resources
of $5,873,120,341. The difference in the number of companies
reporting is accounted for by the fact that returns from the banking
departments of six States include this class of institutions with their
summaries of reports of commercial banks.
On June 30,1916, loan and trust companies heldloans and discounts
aggregating $3,702,104,485.09, not including overdrafts amounting
to $2,264,046.95.
Investments in bonds, securities, etc., aggregated $1,605,392,871.86,
cash in bank $329,456,991.49, and individual deposits $5,198,496,296.53. Of the individual deposits $1,214,090,179.02 was classified
as saving deposits and $166,846,034.47 as time deposits, the remainder,
$3,817,560,083.04, being demand deposits.
Banking premises and other real estate owned aggregated $187,819,133.50.
The loan and trust companies had an aggregate surplus of $508,822,951.65 and undivided profits of $96,669,859.59. In addition
to individual deposits amounting to $5,198,496,296.53 the sum of
$4,826,014.51 was reported as postal savings deposits, $4,125,999.91
dividends unpaid, and $525,008,135.55 due to banks and bankers.
PRIVATE BANKS.

Reports of condition as of June 30, 1916, were received from 1,014
private banks against 1,036 reporting in 1915. Less than one-half
of the private banking institutions which are not under State supervision can be prevailed upon to furnish reports of condition for
statistical purposes. The banks reporting numbered 115 from the
Eastern States, 51 from the Southern States, 779 from the Middle Western States, 65 from the Western States, and 4 from the Pacific States.
The capital of the 1,014 reporting private banks aggregated
$16,852,170.34 and the resources $181,852,052.54. The loans and
discounts of the reporting private banks aggregated $116,429,240.73;
investments in bonds, securities, etc., $14,393,235.69; amount due
from banks,$28,610,481.46, and cash on hand, $6,347,330.97. The
surplus was $6,763,114.51, and undivided profits, $3,181,735.68.
Of the individual deposits amounting to $146,765,453.88, the
sum of $16,302,104.43 was classified as savings deposits and $27,659,270.15 as time deposits.

EEPORT OF THE COMPTROLLER OF THE CURRENCY.

The returns from private
from Pennsylvania, Texas,
which were received by this
of the comptroller addressed
REPORTS OF CONDITION

banks, were all official except those
Illinois, Michigan, Iowa, and Utah,
office in compliance with the request
to the individual bankers.
OF ALL BANKS IN THE UNITED
STATES.
The consolidated statements of condition of 27,513 reporting
banks in the United States and island possessions for June, 1916,
including National, State, savings, and private banks, and loan and
trust companies, show aggregate capital of $2,195,101,115.96 and
aggregate resources of $32,271,237,696.93, or an increase of 451 in
the mftnber of banks reporting, $32,259,746.03 in capital, and
$4,467,108,019.37 in resources during the year.
In the weekly statement published by the Federal Reserve Board
showing the condition of the Federal reserve-banks as of June 30,
1916, the capital of these banks is stated at $54,854,000 and the
resources at $624,957,000.
By including the reports of the 12 Federal reserve banks with
the statistics of all other reporting banks, it will be noted that the
aggregate resources of the tanks of the country approximate the
sum of $32,896,000,000, with a total capitalization of nearly
$2,250,000,000.
The following statement shows the principal items of resources and
liabilities of 27,513 reporting banks from reports of condition at the
close of business June 30, 1916, together with a summary of reports
of condition of the 12 Federal reserve banks for the same date.
Statement showing the principal items of resources and liabilities of 27,513 reporting
banks in the United States and island possessions together with the 12 Federal reserve
banks as of June 30,1916.
27,513 reporting
banks, June 30,
1916.

12 Federal reserve "banks, Total, 27,525 banks.
June 30,1916.

RESOUBCES.

1.
2.
3.
4.
5.
6.
7.
8.
9.

Loans and discounts
Overdrafts
Investments
Real estate (including banking house, furniture, and fixtures)
Due from banks
Due from Federal reserve banks (net)
Exchanges for clearing house, checks, and
other cash items
Cash on hand
Other resources

$17,811,605,164.40
38,210,536.02
6,796,569,640.68

$92,283,000.00

79," soo," 666." 66"

826,641,786.73
4,032,125,378.52

$17,903,888,164.40
38,210,536.02
6,876,369,640.68
826,641,786.73
4,032,125,378.52
20,414,000.00

770,424,724.08
1,486,118,321.95
509,542,144.55

1425,599,000.00
6,861,000.00

770,424,724.08
1,911,717,321.95
516,403,144.55

32,271,237,696.93

Total resources.

20,414,000.00

624,957,000.00

32,896,194,696.93

2,195,101,115.96
2,414,031,067.98
676,116,000.00

54,854,000.00

287,000.00

2,249,955,115.96
2,414,031,067.98
676,116,000.00
9,440,000.00
1,721,000.00
26,935,213,406.49
53,467,936.89
113,250,783.57
442,999,386.04

624,957,000.00

32,896,194,696.93

LIABILITIES.

1.
2.
3.
4.
5.
6.
7.
8.
9.

Capital stock paid in
Surplus and undivided profits
National-bank circulation
Federal reserve notes in circulation (net)..
Federal reserve bank notes (net)2
Deposits (individual and bank)
Notes and bills rediscounted
Bills payable
Other liabilities
Total liabilities.

9,440,000.00

26,376,558,406.49
53,467,936.89
113,250,783.57
442,712,386.04
32,271,237,696.93

1,721,000.00
3 558,655,000.00

1 Includes $23,182,000 Federal reserve notes (net).
Includes United States and postal savings deposits.

* Includes Government deposits and reserve deposits.

BEPOBT OF THE COMPTROLLER OF THE CURRENCY.

There are about 3,000 private banking concerns in the country
from which no reports can be obtained. A careful estimate based on
the returns received from private banks indicates that the capital of
these nonreporting banks amounts to $60,000,000 and the resources
to $535,000,000. The aggregate banking resources of the country,
actual and estimated, would, therefore, appear to be over $33,431,000,000, an increase of $4,731,000,000 or 16.48 per cent over the
actual and estimated banking resources in 1915.
BANKING POWEB OF THE UNITED STATES.

The banking power of the United States in June, 1916, was
$29,353,500,000, as represented by capital, surplus, and other profits,
circulation and deposits of national and other reporting Thanks,
together with the estimated amount of funds of this character in
nonreporting banks, as of June 30, 1916, as well as the paid-in capital,
net reserve deposits, and Federal reserve notes in circulation as
shown by the statement of the Federal reserve banks.
In June, 1915, the estimated banking power of the United States
was $25,397,100,000. The increase for the year was $3,956,400,000,
or over 15.57 per cent. The details are set forth in the following
table:
Banking power of the United States June 30, 1916.
[Money columns in millions.]
Nationalbank
circulaSurplus
Capital and Deposits.1 tion and
Banks. paid in.
Federal
profits.
reserve
notes.

National banks
Keporting State, etc.,
banks
Nonreporting p r i v a t e
banks 2
Total
Federal reserve banks
Grand total 4

Total.

Total
June,
1915.

Increase
over 1915.

P.ct,

7,579$l,066.0$l ,037.2

$8,164.1

$676.1 $10,943. 4 $9.
•,441 2 $ l , 502. 2 15.91

19,934 1,129.0 1,376.8

14,748.8

17,254. 615,i,065.3 2,189.3 14.53

3,000

60.0

435.0

30,513 2,255.0 2,450.0
12
54.8

23,347.9
3 558.6

676.1
11.1

28,729. 0 25 019.0 3,710.0 14.83
»,
246.4 65.17
378.1
624.5

2,450. 0

23,906.5

687.2

29,353.5 25,397.1 3,956.4 15.57

30,525

531.0

18.5

36.0

512.5

3.61

Includes dividends unpaid, postal savings and United States deposits but not amount due to banks.
2 Estimated.
Reserve deposits (net).
One of the bankers' directories gives the total number of banks at 31,624, but over 1,000 of this number
are merely brokers and not included in these statistics.
3
4

SUMMARY OF THE COMBINED RETURNS FROM NATIONAL AND OTHER
BANKS, AS OF JUNE 30, 1916.

The banks furnishing statements for use in connection with this
report number 27,513, being 451 more than reported in 1915. The
resources aggregate $32,271,237,696.93 against $27,804,129,677.56
reported in 1915, the increase being $4,467,108,019.37, or 16.07 per
cent.
The summary following is based upon reports of condition of 7,579
national banks, and summaries furnished by the State banking
departments and from individual statements of 15,450 State banks,

REPORT OF THE COMPTROLLER OF THE CURRENCY.

622 mutual savings banks, 1,242 stock savings banks, 1,014 private
banks, and 1,606 loan and trust companies.
The reports from these banks are for the close of business June 30,
except that the statistics furnished by the banking department of
Nebraska are for the close of business May 29, those of Indiana for
May 1, and of Georgia and Kentucky for June 1.
Summary of reports of condition of 27,513 banks in the United States and island possessions, including National, State, savings, and private banks, and loan and trust companies, for June SO, 1916.
RESOURCES.

Loans and discounts:
Secured by real estate (including mortgages owned)
$3, 425, 875, 357. 71
Secured by collateral other than real
estate
5, 317, 504, 757.12
Loans not classified
9, 068, 225, 049.57
Total
.Overdrafts....
Investments (including premiums on bonds):
United States bonds
State, county, and municipal bonds
Railroad bonds...:
Bonds of other public-service corporations (including street and interurban
railway bonds)
Other bonds, stocks, warrants, etc
Total
Banking house (including furniture and
Other real estate owned..
Due from banks
Checks and other cash items
Exchanges for clearing house
Cash on hand:
Specie
Paper currency
Nickels and cents
Cash not classified

$17, 811, 605,164.40
38,210,536.02
738, 667, 323. 65
629, 699,368.51
907, 891, 666.48
449, 075, 737.10
4, 071, 235, 544.94
fixtures)

Total

6,796,569,640.68
610, 046, 335.35
216, 595, 451.38
4, 032,125, 378. 52
281, 575, 982.32
488, 848, 741.76

950,187, 001. 50
369, 641, 213.00
2, 950, 285.01
163, 339, 822.44
1,486,118,321.95

Other resources

509, 542,144.55

Total resources

32,271,237,696.93
LIABILITIES.

Capital stock paid in
2,195,101,115.96
Surplus
' 1,849,693,074.48
Undivided profits (less expenses and taxes paid)
564, 337, 993.50
National-bank circulation
...
676,116, 000.00
Due to banks
3, 463, 608, 916.33
Dividends unpaid
28, 690, 888.81
Deposits:
Individual deposits subject to check
without notice
12,045,908,742.24
Demand certificates of deposit
609,816, 510.89
Certified checks and cashiers' checks...
318, 807, 510.10
Savings deposits, or deposits in interest
or savings department
7,171, 546, 327.32
Time certificates of deposit
2, 539, 251, 421.35
Deposits not classified
88, 383, 563.08
Total
22, 773, 714, 074.98

REPORT OF THE COMPTROLLER OF THE CURRENCY.
Postal savings deposits
United States deposits
Notes and bills rediscounted
Bills payable (including certificates of deposit representing
money borrowed)
'.
Other liabilities
Total liabilities

$71,087, 526.37
39,457,000.00
53,467,936.89
113, 250, 783.57
442,712,386.04
32, 271, 237, 696.93

BANKING RESOURCES AND LIABILITIES BY STATES.

The following is a condensed statement of the resources and liabilities of all reporting banks (State and National) in the United States
as of June 30, 1916, arranged by States, together with the population
and the number of banks reporting for each State:
63366°—17

Condensed statement of resources and liabilities of all reporting banks of the United States on June 30, 1916, by States.
Resources (in thousands of dollars).

States, etc.

Maine
New Hampshire.
Vermont
,
Massachusetts
Rhode Island
Connecticut

Population
(estimated
Investby Govern- Banks.*
ments (inment
cluding
Loans and Overactuary).
discounts. drafts. premiums
on
bonds).
770,000
444,000
363,000
3,722,000
599,000
1,248,000

161
126
106
436
48
214

94,506
83,057
108,394
1,444,580
140,636
296,510

Total New England States...; 7,146,000

1,091

2,167,683
4,796,273
405,433

New York
New Jersey
Pennsylvania
Delaware
Maryland
District of Columbia
Total Eastern States
Virginia
West Virginia..
North Carolina.
South Carolina.
Georgia
Florida
Alabama
Mississippi
Louisiana
Texas
Arkansas
Kentucky
Total Southern States

Banking
house
Other
including
real
(furniture estate.
and
owned.
fixtures).
249
837
202
3,255
224
1,191

15,395
8,406
9,304
161,482
22,029
40,031

51,520

5,958

256,647

8,586

84,397
4,507
32,172
283
2,360
1,853

823,014
98,327
391,298
7,831
55,280
16,917

182,197
3,801
16,416
123
2,455
977

4,465
1,529
1,239
30,462
3,419
10,406

465

1,162,403
2,053,970
292,185
1,017,320
24,262
157,099
33,009

334
414
271
4,995
88
2,484

n
O

Cash on
hand.

28,747

58,280
20,693
88,871
1,733
11,001
9,405

141,111
76,489
28,385
518,884
127,757
269,777

66
34
23
182
26
134

ExChecks
Due from and other
for
cash
banks.
clearing
items.
house.

Other

Total.

4,795
2,420
2,271
56,480
10,264
12,465

8,785
239
2,975
39,719
1,611
1,507

269,966
173,425
153,064
2,286,956
306,615
635,514

54,836
567,469
24,209
114,158
1,931
11,293
4,324

236,389
4,735
73
4,715
632

3,825,540

313,085
1,346
29,302
363
8,183
1,323

9,116,184
855,291
3,144,508
65,477
455,903
135,923

260
26,917
561
1,009

! 10,300,000
2,955,000
8,545,000
!
210,000
I 1,370,000
i
375,000

1,361
50
244
40

1,426,018
28,850
67,431

1,110
55
485
28
121
52

I 23,755,000

3,049

6,927,401

1,851

3,577,845

189,983

125,572

1,392,667

205,969

353,602

723,384

275,012

13,773,286

2,198,000
1,383,000
2,407,000
1,612,000
2,837,000
894,000
2,303,000
1,937,000
1,805,000
4,378,000
1,760,000
2,396,000
2,293,000

421
310
507
391
747
255
361
311
240
1,409
454
580
525

200,005
134,708
118,334
97,314
181,855
68,343
86,047
58,307
115,776
345,213
68,811
151,007
141,095

303
374
551
1,421
120
123
1,477
395
877
134
579
155

32,006
27,179
11,507
12,888
22,780
15,914
16,916
10,749
24,086
52,458
6,593
38,378
24,643

8,256
8,554
5,852
4,411
8,844
5,811
4,510
2,459
8,893
18,832
3,866
7,296
8,566

1,605
1,515
705
1,013
3,364
1,157
1,883
1,466
2,853
7,591
1,671
880
1,251

39,491
29,939
20,835
14,324
34,845
27,392
23,149
19,573
40,287
101,055
22,681
36,027
38,084

1,745
865
1,434

1,298
641
82
394.
1,700
279
458
136
4,331
2,320
155
874
841

10,436
8,001
5,462
3,148
8,491
5,649
7,815
3,306
8,456
29,329
4,736
10,866
10,220

1,899
1,042
2,127
1,133
1,667

296,973
212,747
166,712
135,858
265,932
125,785
142,292

28,203,000

6,511

1,766,815

6,741

296,097

96,150

26,954

115,915

34,436

a
o

203,396

447,682 I

821
157
1,685
5,181
639
1,543
2,029
18,374

13,509

492

570
799
2,748
9,216
702
6,125
5,916

209,510
572,072
109,988
253,575
232,800
2,822,673

o
4

5,146,000
2,832,000
6,120,000
3,063,000
2,525,000
2,271,000
2,237,000
3,457,000

1,124
995
1,420
684
857
1,295
1,693
1,506

802,488
338,448
1,304,291
341,275
321,551
455,676
552,888
578,906

891
654
1,052
356
582
762
2,657
1,420

330,586
82,787
273,435
281,748
76,233
78,309
29,001
114,286

Total Middle Western States. 27,651,000

Ohio

. . .

Indiana

Illinois
Michigan
Wisconsin
MiTiTipsftta
Iowa
Missouri

North Dakota
South Dakota
Nebraska
Kansas.
Montana..
Wvominsr
Colorado...
New Mexico
Oklahoma

5,211
2,343
4,411
2,328
1,267
2,836
1,852
3,230

229,175
84,153
344,363
114,983
75,441
99,324
93,474
184,099

2,997
3,280
7,345
2,574
2,550
3,372
1,448
6,730

12,457
1,196
32,107
8,115
2,777
5,397
717
6,144

60,748
24,272
130,657
41,534
18,703
24,463
23,863
43,583

8,130
28,451
13,741
2,006
1,488
5,320
1,429
3,735

1,488,316
580,439
2,144,925
812,435
512,084
689,503
728,222
963,219

Total Western States

Total Pacific States
Hawaii
Porto Rico
Philippines
Total islands
Total United States 2

9,574

4,695,523

8,374

1,266,385

169,042

23,478

1,225,012

30,296

68,910

367,823

64,300

7,919,143

755,000
708,000
1,308,000
1,893,000
465,000
183,000
994,000
431,000
2,240,000

. . .

Washington
Oregon
California
Idaho
Utah . . . .
Nevada
Arizona.....
Alaska

(

35,633
14,855
33,523
17,516
11,492
14,044
20,893
21,086

817
622
1,022
1,198
305
115
340
94
888

109,202
95,843
234,450
210,950
84,781
26,121
110,734
26,536
134,129

352
410
1,100
485
298
122
146
46
316

8,443
6,663
16,805
21,438
13,660
3,337
47,076
2,908
23,247

5,173
4,698
9,059
7,130
4,489
804
3,783
921
5,440

3,059
1,212
1,593
2,257
1,879
243
1,886
571
1,956

26,162
33,308
72,454
63,543
33,780
7,495
47,656
6,730
52,985

817
362
1,419
1,369
561
290
1,467
315
1,401

82
495
1,782
467
166
1,750
1
873

4,773
4,799
14,451
14,435
8,665
1,641
12,435
1,569
10,409

219
2,008
2,778
1,946
557
279
891
95
678

158,282
149,798
355,891
324,020
148,836
40,332
227,823
39,692
231,435

8,972,000

5,401

1,032,746

3,275

143,577

41,497

14,656

344,113

8,001

5,616

73,177

9,451

1,676,109

1,550,000
847,000
3,035,000
455,000
435,000
114,000
263,000
91,000

362
259
816
182
118
31
66
12

151,226
89,756
796,153
39,393
66,464
14,066
26,916
2,517

322
292
764
30
518
88
12
8

42,345
27,267
244,084
7,286
11,465
3,506
5,156
879

9,656
4,426
39,281
2,426
2,617
751
1,712
143

5,383
2,508
9,017
827
1,119
325
236
72

45,800
26,635
216.812
12,901
18,036
5,723
15,641
1,120

1,047
451
4,910
398
611
69
297
101

2,153
932
12,783
132
1,967
22
5
10

14,545
9,233
65,933
3,261
3,996
1,538
3,831
848

3,425
872
60,948
186
371
295
179
40

275,902
162,372
1,450,685
66,840
107,164
26,383
53,985
5,738

6,790,000

1,846

1,186,491

2,034

341,988

61,012

19,487

342,668

7,884

18,004

103,185

66,316

2,149,069

220,000
1,210,000
8,500,000

18
12
11

17,534
9,666
7,746

352
62
15,057

6,298
1,501
476

312
337
193

151
16
324

3,948
5,170
14,218

389
331
1,746

3
458

3,491
5,911
4,537

1,320
83
3,788

33,798
23,535
48,085

M
o

9,930,000

34,946

15,471

8,275

842

491

23,336

2,466

461

13,939

5,191

105,418

112,452,000

27,513

17,811,605

38,211

6,796,570

610,046

216,596

4,032,125

281,576

488,849

1,486,118

509,542

o
o
g
o

32,271,238

1
Federal Reserve Banks not included.
2 Population Continental United States, 102,431,000,

CD
CO

Condensed statement of resources and liabilities of all reporting banks of the United States on June SO, 1916, by States—Continued.
Liabilities (in thousands of dollars).

States, etc.

Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Total New England States

Capital
stock paid
in.

Surplus.

Undivided profits National(less ex- bank cirand taxes culation.
paid.)

Due to
banks.

Dividends
unpaid.

Deposits,

Bills payable (including
certifiNotes
United
Postal- and bills cates of
savings
States
deposit
redisdeposits. deposits. counted. representing
moneyborrowed).

Total Eastern States
Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi
Louisiana
Texas
Arkansas

Total.

11,431
6,941
7,035
82,116
14,108
28,217

12,232
9,791
10,768
116,614
17,561
29,644

6,979
5,020
1,863
57,876
6,434
17,745

5,790
4,875
4,357
23,690
4,308
12,962

2,605
3,257
1,483
124,954
4,887
10,142

218
156
142
1,264
87
600

220,657
142,092
125,067
1,829,805
256,850
531,181

212
230
43
564
361
383

204
398
74
3,570
480
1,672

53
154
89
4,178

149,848

196,610

95,917

55,982

147,328

2,467

3,105,652

1,793

6,398

45
,

294,944
46,900
240,256
5,016
32,430
18,659

579,678
52,179
306,893
5,420
32,310
10,503

81,504
21,121
67,844
2,294
8,832
2,651

72,647
15,179
83,609
1,335
10,492
6,221

1,477,006
26,677
300,840
1,663
41,532
7,420

3,564
1,200
2,665
94
960
169

6,401,278
683,069
2,098,564
49,022
318,016
82,631

1,983
572
2,405
68
1,476
3,220

20,027
2,192
7,369
115
106
302

1,049
588
841
70
547
214

4,071
2,096
6,997
314
3,628
1,230

178,433 9,116,184
855,291
3,518
26,225 3,144,508
66
65,477
5,574
455,903
2,703
135,923

638,205

986,983

184,246

1,855,138

8,652

9,632,580

9,724

30,111

3,309

18,336

216,519 13,773,286

32,214
23,505
20,304
20,803
43,007
14,513
21,704
13,458
21,834
87,900
18,811

21,122
14,952
7,215
7,979
17,744
5,936
10,555
4,605
12,633
35,747
•6,161

7,470
4,069
5,805
4,413
13,671
2,526
3,530
2,628
3,332
17,229
2,599

26,684
6,653
9,702
4,823
13,846
10,693
5,293
3,812
27,188
48,453
8,450

1,075
516
324
491
461
197
350
116
699
1,152
144

184,247
151,378
109,090
77,505
147,801
83,413
86,792
66,930
131,128
322,943
67,815

1,359
429
641
261
546
539
328
158
104
1,396
104

270
205
33
19
93
310
153
139
170
688
230

2,332
806
3,292
3,728
3,390
346
1,186
521
528
5,398
255

1,899
796
3,689
8,395
12,404
842
3,208
2,516
3,427
10,333
2,302

1,070
495
599
2,006
895

115

5,065
r,

New York
New Jersey
Pennsylvania
Delaware
Maryland
District of Columbia

Other
liabilities.

15,034
8,850
6,317
5,970
11,966
5,815
2,947
4,919
37,452
3,031

8,515
16
173,425
1,544
153,064
40,319 2,286,956
306,615
1,539
635,514
1,958
53,891 3,825,540

3,267
588
300
1,471
1,003
655
235
599
3,548
3,381
86

296,973
212,747
166,712
135,858
265,932
125,785
142,292
98,429
209,510
572,072
109,988

Kentucky
Tennessee .
Total Southern States

36,405
28,919
383,377

15,629
11,991

4,400
3,018

15,920
12,104

16,465
15,124

172,269

74,690

139,283

Ohio
Indiana
Illinois

114,022
61,935
167,162
55,495
41,944
53,801
70,422
96,301

69,073
24,185
98,602
31,771
15,530
25,879
24,488
56,065

26,378
11,672
36,507
13,300
8,527
11,018
15,599
18,214

43,713
25,896
28,503
10,254
12,896
12,383
17,811
26,305

661,082

345,593

141,215

15,463
13,296
32,379
34,046
15,698
3,948
17,298
4,390
23,422

5,505
3,861
12,474
15,899
5,315
1,757
8,929
1,471
6,223

1,500
3,254
8,329
6,358
2,683
884
3,107
479
2,817

159,940

61,434

27,247
18,740
122,134
7,198
10,056
3,130
3,960
440

8,936
7,616
58,558
2,433
3,489
658
1,702
167

192,905
3,575
2,216
3,953

Michigan .
Wisconsin
Minnesota
Iowa
Missouri

Total Middle Western States.
North Dakota
South Dakota
Nebraska
Kansas
Montana
Wvominsr
Colorado
New Mexico
Oklahoma
Total Western States
Washington.
Oregon
California

Idaho
Utah
Nevada
Arizona
. .
.
Alaska
Total Pacific States

. -.
. ..

Hawaii
Porto Rico

Philippines
Total islands
Total United States

...

153,221
151,437

1,947
904

352
251

791
2,145

1,136
640

197,186

383
175
6,083

1,733,700

8,716

2,913

24,718

51,587

28,151 2,822,673

116,363
35,756
369,830
44,329
30,639
81, 796
52,120
204,950

908
394
3,353
969
526
720
471
436

1,094,760
388,148
1,410,071
646,921
396,071
493,979
542,762
543,254

2,005
2,234
2,634
875
937
778
596
339

3,671
949
5,363
2,983
1,768
1,678
382
1,022

730
1,652
1,033
490
844
3,219
1,604
363

3,376
1,610
3,941
1,787
1,900
1,967
1,689
9,849

13,317 1,488,316
26,008
580,439
17,926 2,144,925
3,261
812,435
502
512,084
2,285
689,503
278
728,222
963,219
e; 121

177,761

935,783

7,777

5,515,966

10,398

17,816

9,935

26,119

69,698

7,919,143

3,966
3,473
10,014
9,988
3,293
1,649
7,960
1,712
10,037

7,962
13,485
49,021
18, 791
7,712
2,464
24,827
2,052
19,139

40
67
328
336
180
46
226
74
268

122,487
111,031
240,068
232,386
110,748
29,072
160,437
27,351
164,329

199
289
807
793
462
170
1,104
240
979

35
65
393
568
989
110
1,607
86
284

379
433
353
3,417
109
34
248
805
2,169

725
248
515
391
1,398
196
468
934
1,511

21
296
1,210
1,047
249
2
1,612
98
257

158,282
149,798
355,891
324,020
148,836
40,332
227,823
39,692
231,435

29,411

52,092

145,453

1,565

1,197,909

5,043

4,137

7,947

6,386

4,792

1,676,109

4,194
2,368
27,014
717
•1,897
323
1,127
85

6,476
6,062
40,107
2,969
3,186
1,253
930
36

22,814
12,66.7
116,148
2,931
12,164
1,081
2,973
141

324
200
1,116
134
156
16
25
9

198,183
109,944
1,016,924
49,155
73,765
19,330
42,538
4,580

700
623
658
133
524
60
226
266

2,054
1,499
3,631
380
340
388
358
2

1,029
1,182
469
156
102

1,680
1,119
2,028
577
277
40

2,265
275,902
352
162,372
61,898 1,450,685
57
66,840
1,208
107,164
104
26,383
114
53,985
12
5,738

83,559

37,725

61,019

170,919

1,980

1,514,419

3,190

8,652

2,970

5,721

66,010

2,149,069

1,285
615
1,345

448
412
274

496

220
532
11,050

35
18
114

26,346
18,497
28,645

593

38
1,023

761
222
2,668

33,798
23,535
48,085

3,651

105,418

9,744

3,245

1,134

496

11,802

167

73,488

593

1,061

2,195,101

1,849,693

564,338

676,116

3,463,609

28,691

22, 773, 714

39,457

71,088

53,468

113,251

6,926
fi 0Q9.

253,575
232,800

442,712 32,271,238
CO
Or

STATEMENT OF AIL BANKS.
The combined resources and liabilities of national and other reporting banks for the fiscal years 1912 to 1916,
inclusive, are shown in the following table:
Aggregate resources and liabilities of national and other reporting banks, 1912 to 1916.
Classification.

1912 (25,195 banks). 1913 (25,993 banks). 1914 (26,765 banks). 1915 (27,062 banks). 1916 (27,513 banks).

$13,892,150,693.00
61,455,604.59
5,358,883,382.11
2,847,992,843.93
657,299,660.36
430,101,255.82
1,572,953,479.43
165,805,908.94

$15,288,357,283.98
51,120,621.58
5,584,924,886.48
2,872,697,225.26
739,679,598.08
520,995,362.02
1,639,219,162.79
274,403.890.77

$15,722,440,177.20
36,232,421.03
5,881,931,375.37
3,233,942,829.39
793,404,941.00
376,875,161.00
1,457,702,138.31
301,600,634.26

$17,811,605,164.40
38,210,536.02
6,796,569,640.68
4,032,125,378.52
826,641,786.73
770,424,724.08
1,486,118,321.95
509,542,144.55

25,712,163,599.48

26,971,398,030.96

27,804,129,677.56

32,271,237,696.93

2,010,843,505.70
1,584,981,106.44
581,178,042.47
708,690,593.00
3,639,127.75
17,024,067,606.89
58,945,980.66
2,632.635,075.58
381,661,735.69

2,096,849,861.75
1,676,625,895.34
573,213,465.32
722,125,024.00
3,590,839.76
17,475,764,134.81
25,242,015.76
49,725,039.13
2,584,231,078.90
504,796,244.71

2,132,074 073.20
1,714,486! 142.85
562,031 228.82
722,554: 719.00
30,133! 899.35
18,517,732! 879.01
40,245! 588.30
66,654; 582.55
2,705,075. 367.14
480,409! 550.74

2,162,841,369.93
1,732,918,047.19
639,777,329.68
722,703,856.50
4,241,968.34
19,135,380,200.45
59,771,103.54
48,964,257.51
2,783,312,258.52
514,219,285.90

2,195,101,115.96
1,849,693,074.48
564,337,993.50
676,116,000.00
28,690,888.81
22,773,714,074.98
71,087,526.37
39,457,000.00
3,463,608,916.33
609,431,106.50

24,986,642,774.18

Total.

$14,568,240,544.24
58,522,120.08
5,407,219,379.56
2,776,613,692.19
695,507,828.00
426,913,037.63
1,560,709,447.05
218,427,550.73

24,986,642,774.18

Loans and discounts
Overdrafts
Bonds, stocks, and other securities..
Due from other banks and bankers.
Keal estate, furniture, etc.* 2
Checks and other cash items
Cash on hand
Other resources

25,712,163,599.48

26,971,398,030.96 | 27,804,129,677.56

32,271,237,696.93

o
o
g

LIABILITIES.

Capital stock paid in
Surplus fund
Other undivided profits
Circulation (national banks)
Dividends unpaid
Individual deposits
Postal-savings deposits
United States deposits
Due to other banks and bankers
Other liabilities
Total.

g
o

Includes other real estate owned.

a Includes exchanges for clearing house.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

The foregoing statement shows that the aggregate resources of the
banks have increased from $24,986,642,774.18 m 1912 to $32,271,237,696.93 in 1916, a gain of $7,284,594,922.75, or 29.15 per cent.
The increase in bank resources, exclusive of the Federal reserve
banks, during the past year has been 16.07 per cent. The increase
in 1915 over 1914 was 3.09 per cent; 1914 over 1913, 4.90 per cent;
and 1913 over 1912, 2.90 per cent.
GROWTH OF BANKING IN THE UNITED STATES SINCE 1863.

A table, in Volume 2, shows the number of colonial and State banks
in the United States from 1784 to 1833, together with their principal
items of resources and liabilities. A statement of the resources and
liabilities of the banks of the country in detail from 1834 to 1863 will
also be found in the same volume.
The following condensed statement shows the principal items of
resources and liabilities for national, State, savings, and private
banks and loan and trust companies from 1863 to 1916, inclusive.
The table also shows the principal items of resources and liabilities
of the Federal reserve banks as of June 25, 1915, and June 30, 1916:
Principal items of resources and liabilities of national, State, savings, private banks, loan
and trust companies from 1863 to 1916.
[From 1863 to 1872, inclusive, data from various sources; from 1873 compiled from reports obtained by the
Comptroller of the Currency.]
[In millions of dollars.]
Resources.
Year. Banks.

Loans
Overand dis- drafts.
counts.

Banking
house,
Invest- furniture,
ments.
and
fixtures.

Due
from
banks.

Checks
and
other
cash
items.

AggreCash on Other gate rerehand. sources. sources.

1
205.5
96.9
1,466
648.6
180.5
P 1,089
50.7
\ 3 467
93.4
70.7
5.1
47.6
33.3
1.7
3 1,294
41.3
362.5
199.5
406.6
103.0
11.2
3 1,634
550.4
231.9
16.7
96.1
467.6
110.7
31,636
588.5
128.3
19.8
205.8
446.5
102.0
655.7
442.9
123.1
3 1,640
22.7
124.2
200.7
3 1,619
686.4
416.4
23.9
161.6
162.5
107.6
3 1,615
715.9
155.7
27.5
91.6
404.7
109.4
3 1,767
115.2
143.2
831.6
164.0
440.3
30.1
3 1,853
871.5
437.8
31.2
177.6
102.0
144.0
721.1
48.4
4 1,968 1,439.6
0.2
123.9
199.3
182.6
.2
4 1,983 1,565.6
84.8
241.9
732.0
54.0
193.6
.4
3,336
1,747.6
115.2
230.2
801.9
67.9
195.0
.4
3,448
1,726.8
96.2
217.3
818.2
71.5
198.2
.5
3,384
1,720.5
77.8
220.7
851.6
82.0
194.7
.3
3,229
1,560.9
106.4
207.3
874.5
90.9
186.2
,4
3,335
1,506.9
102.2
207.5
1,138. 6
99.7
204.0
.6
3,355
1,661.6
904.2
106.5
248.8
143.5
274.3
1.4
3,427
1,900.6
174.4
278.0
985.3
111.2
346.1
1.4
3,572
2,049.1
197.8
268.7
1,054.9
106.2
307.1
1.5
3,835 2,232.1
137.1
286.1
1,027.8
104.9
323.7
1.6
4,113 2,259.1
109.2
303.3
1,041.1
105.8
294.2
1.5
4,350
2,270.7
188.6
389.8
1,042.0
75.4
355.8
1.2
4,378 2,455.6
1,044.9
109.2
349.8
144.2
304.3
4.4
6,170 2,938.9
1,011.1
127.9
421.6
145.2
432.3
4.3
6,647
3,157.0
1,131.1
134.4
439.1
91.1
459.0
1 Includes figures for 1,400 State banks and 66 national banks.
2
From Roman's Bankers' Almanac.
* National banks.
4 Number of national banks only; but amounts include incomplete returns from
national.

1863..
1864..
1865..
1866..
1867..
1868..
1869..
1870..
1871..
1872..
1873..
1874..
1875..
1876..
1877..
1878..
1879..
1880..
1881..
1882..
1883..
1884..
1885..
1886..
1887..
1888...

60.2

1,191.7

.5
2.4
3.0
3.2
2.9
5.8
5.9
6.2
6.7

252.3
1,126.5
1,476.4
1,494.1
1,572.2
1,564.2
1,510.7
1,730.6
1,770.8
2,731.3
2,892.6
3,204.7
3,183.0
3,204.0
3,080.7
3,312.7
3,398.9
3,869.1
4,031.1
4,208.1
4,221.3
4,426.8
4,521.5
5,193.3
5,470.5

16.2
20.5
46.5
54.4
56.2
54.2
53.4
59.4
72.1
45.9
94.9
107.0
103.0
112.3
111.9
54.5

State banks with

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Principal items of resources and liabilities of national, State, savings, private banks, loan
and trust companies from 1863 to 1916—Continued.
[In millions of dollars.]

Resources.
Year. Banks.

1889...
1890...
1891...
1892...
1893...
1894...
1895...
1896...
1897...
1898...
1899...
1900...
1901...
1902...
1903...
1904...
1905...
1906...
1907...
1908...
1909...
1910...
1911...1912...
1913...
1914...
1915...
1916...

Loans Overand dis- drafts.
counts.

7,203 3,469.6
7,999 3,834.4
8,641
4,024.1
9,338 4,329.5
9,492
4,361.1
9,508 4,078.1
9,818
4,262.0
9,469 4,244.3
9,457
4,208.6
9,485 4; 632.6
9,732 5,152.1
10,382 5,625.2
11,406 6,387.9
12,424
7,145.4
13,684
7,688.0
14,850
7,930.9
16,410 8,971.2
17,905 9,827.6
19,746 10,697.8
21,346 10,380.1
22,491 11,303.5
23,095 12,459.4
24,392 12,982.7
25,195 13,892.1
25,993 14,568.3
26,765 15,288.4
27,062 15,722.5
27,513 17,811.6

5.7
7.9
6.9
7.4
7.6
7.0
6.9
6.9
7.4

19.6
25.4
32.5
37.6
43.7
50.9
51.1
56.0
66.2
66.1
57.9
69.7
62.4
63.7
61.5
58.6
51.1
36.2
38.2

Banking
house,
Invest- furniture,
ments.
and
fixtures.
1, 129.1
1, 172.5

179.4
1 } 283.7
\} 366.1
\ } 445.5
\ t 565.3
\ 674.6
1, 732.4
1, 859.9
2, 179.2
2, 498.4
2, 821.2
3 , 039.4
3 , 400.1
3 654.3
3 , 987.9
4 073.5
4, 377.1
4 445.9
4, 614.4
4; 723.4
5, 051.9
5, 358.9
5 407.2
5, 584.9
5, 881.9
796.6

146.2
159.7
167.7
183.7
195.3
210.5
223.7
242.6
249.8
261.4
275.4
274.2
283.7
295.8
317.6
346.0
380.9
416.9
405.7
495.0
544.0
574.2
616.7
657.3
695.5
739.7
793.4
826.7

Due
from
1
banks.

513.8
531.5
530.4
684.4
549.2
705.9
714.4
644.9
781.4
925.0
1,203.1
1,272.8
1,448.0
1,561.2
1,570.6
1,842.9
1,982.0
2,029.2
2,135. 6
2,236.3
2,562.1
2,393.0
2,788.8
2,848.0
2,776.6
2,872.7
3,233.9
4,032.1

(3hecks

and
other
cash
items.

115.9
102.1
96.4
107.2
124.5
78.4
96.5
119.8
132.1
125.6
300.1
234.7
463.5
320.0
286.0
231.5
373.4
445.2
411.1
350.9
437.9
620.5
422.7
430.1
426.9
521.0
376.9
770.4

AggreCash on Other gate rerehand. sources. sources.

514.0
488.1
497.9
586.4
516.0
689.0
631.1
531.9
628.2
687.8
723.3
749.9
807.5
848.1
857.3
990.6
994.2
1,016.5
1,113.8
1,368.3
1,452.0
1,423.8
1,554.1
1,572.9
1,560.7
1,639.2
1,457.7
1,486.1

46.6
46.8
59.4
63.1
72.5
76.2
109.6
88.9
82.2
97.1
46.4
98.1
108.1
108.3
132.6
151.5
172.6
272.5
437.8
249.0
111.4
193.6
150.5
165.8
218.4
274.4
301.6
509.5

5,940.9
6,343.0
6,562.2
7,245,4
7,192.3
7,290.6
7,609.5
7,553.9
7,822.1
8,609.0
9,905.0
10,785.8
12,357.5
13,363.9
14,303.1
15,198.8
16,918.2
18,147.6
19,645.0
19,583.4
21,095.0
22,450.3
23,631.1
24,986.6
25,712.2
26,971.4
27,804.1
32,271.2

Liabilities.

Year. Capital
stock
paid in.
405.0
311.5
75.2
325.8
414.3
418.6
420.1
422.7
430.4
458.3
470.5
532.9
551.2
592.5
602.4
1877 11
614.4
1878...
587.7
1879...
580.5
565.2
1880*1!
1881...
572.3
1882 .
590.6
625.5
1883...
1884
656.5
1885...
678.0
1886...
686.8
1887...
799.2
1888...
853.8
1889
893 3
968.7
1890...
1 8 9 1 . . . 1,029.6

1863...
1864... /
1
1865
1866...
1867
1868...
1869...
1870 . .
1871...
1872 .
1873...
1874...
18751..
1876...

Surplus
fii-nA
iuna.

Undivided
profits,
less expenses.

Due to

DiviPostal- United
States
dends Deposits. savings
unpaid.
deposits. deposits.

100.5
1.1

31.3
50.2
63.2
75.8
82.2
94.1
101.2
105.2
129.4
141.8
163.4
198.5
181.4
178.0
189.2
194.3
214.8
232.0
245.7
269.8
276.5
303.4
358.6
367.8
406.0
442.7
464. 7

3.1

23.2
29.3
30.7
33.5
43.8
38.6
42.0
50.2
86.2
97.3
90.8
63.1
79.2
59.8
57.0
66.0
77.3
78.0
102.1
109.8
85.4
90.5
101.2
126.0
126.0
141.4
154.6

393. 7

27.4
157.8
122.4
112.5
140.7
129.0
130.0
171.9
172.7
187.4
207.5
205.3
196.6
179.5
172.1
201.0
258.0
333.6
297.3
299.8
254.2
322.9
336.7
383.5
400.7
477.8
469.3
454.5

119.4
398.4
533.3
539.6
575.8
K
74.3
501.4
600.9
618.8
1,421.2
1,521.6
1,787.0
1,778.6
1,813.6
1,717.4
1,694.3
1,951.6
2,296.7
2,460.2
2,568.4
2,566. 4
2,734.3
2,811 9
3,307.9
3,423.3
3,779.3
4,064.1
4,196. 8

2.5
4.5
1.5
1.4
1.6
6.2
6.8
2.1

5.8
1.8
1.8
6.5
7.2
1.9
1.9
6.9
2.3
3.9
8.7
4.7
3.9
5. 5

58.0
39.1
33.3
28.2
12.8
11.4
25.9
12.5
15.2
10.6
10.2
11.1
10.9
25.6
252.1
10.7
12.3
12.7
13.9
14.2
14.0
17.2
23.3
58.4
46.7
30.6
25.9

National Other
bank liabilicircu- ties.
lation.
238.7
163.3
25.8
131.5
267.8
291.8
294.9
292.8
291.8
315.5
327.0
338.8
338.5
318.1
294.4
290.0
299.6
307.3
318.1
312.2
308.9
312.0
295.2
269.2
238.3
166.6
155.3
128.9
126.3
123.9

53.8
.3
.5

20.0
4.4
3.2
6.6

10.5
10.4
12.4
18.8
22.5
31.2
31.5
32.9
34.7
29.5
33.2
43.4
44.2
38.8
53.3
39.6
34.4
49.1
76.5
78.2
96.0
106.7

EEPOET OF THE COMPTEOLLEB OF THE CTJEBENCY.

Principal items of resources and liabilities of national, State, savings, private banks, loan
and trust companies from 1863 to 1916—Continued.
[In millions of dollars.]
Liabilities.
Year.

Capital
stock
paid in.

Surplus
fund.

Undivided
profits,
less expenses.

1892..
1893..
1894..
1895..
1896..
1897..
1898..
1899..
1900..
1901..
1902..
1903..
1904..
1905..
1906..
1907..
1908..
1909..
1910..
1911..
1912..
1913..
1914..
1915..
1916.

1,071.1
1,091.8
1,069.8
1,080.3
1,052.0
1,012.3
992.1
973.6
1,024.7
1,076.1
1,201.6
1,321.9
1,392.5
1,463.2
1,565.3
1,690.9
1,757.2
1,800.0
1,879.9
1,952.4
2,010.8
2,096.9
2,132.1
2,162.8
2,195.1

491.4
516.7
523.5
541.0
534.9
557.6
565.4
581.8
648.4
687.0
781.0
903.7
993.8
1,053.6
1,180.8
1,305.2
1,401.6
1,326.1
1,547.9
1,512.1
1,585.0
1,676.6
1,714.5
1,732.9
1,849.7

158.8
172.6
159.2
158.4
159.6
155.1
167.3
179.3
233.8
268.6
315.9
369.8
367.1
385.9
378.0
339.9
359.9
508.5
404.6
553.5
581.2
573.2
562.0
639.8
564.3

NaDiviPostalOther
Due to dends Deposits. savings United tional liabiliStates
bank
banks. unpaid,
deposits. deposits. circuties.
lation.
613.5
419.9
599.1
600.5
521.7
673.4
809.8
1,046.4
1,172.5
1,333.0
1,393.2
1,476.0
1,752.2
1,904.4
1,899.0
2,075.5
2,198.0
2,484.1
2,225.4
2,621.0
2,632.6
2,584.2
2,705.1
2,783.3
3,463.6

4.8
4.6
3.3
3.7
3.9
2.6
3.4
8.9
2.7
3.4
3.8
2.3
1.8
2.4
2.7
2.4
4.0
3.3
20.9
5.7
3.6
3.6
30.1
4.2
28.7

4,664.9
4,627.2
4,651.2
4,921.2
4,945.1
5,094.7
5,688.1
6,768.7
7,239.0
8,460.7
9,104. 7
9,553.7
10,000.6
11,350.7
12,215.8
13,099.6
12,784.5
14,035.5
15,283.4
15,906.3
17,024.1
17,475.8
18,517.7
19,135.4
22,773.7

25.3
40.2
71.1

14.2
13.7
14.1
13.2
15.4
16.4
52.9
76.3
98.9
99.1
124.0
147.1
110.3
75.3
89.9
180.7
130.3
70.4
54.6
48.5
58.9
49.7
66.7
49.0
39.5

141.0
155.1
171.7
178.8
199.2
196.6
189.9
199.4
265.3
319.0
309.3
359.3
399.6
445.4
510.9
547.9
613.7
636.4
675.6
681.7
708.7
722.1
722.6
722.7
676.1

85.7
190.7
98.7
112.4
122.1
113.4
140.1
70.6
100.5
110.6
130.4
169.3
180.9
237.3
305.2
402.9
334.2
230.7
358.0
, 349.9
381.7
504.8
480.4
514.2
609.4

NOTE.—Since 1873 the comptroller has collected and published statistics of State banks, but complete
data for compiling these statistics for a number of years thereafter were available only for those States in
which the banks were required to report to some State official. For recent years the statistics are practically complete.

100

REPORT OF THE COMPTROLLER OF THE CURRENCY.

MONEY IN ALL REPORTING BANKS.

Cash in National, State, savings, and private banks, and loan and
trust companies of the country, shown by reports of condition as
of June 30, 1916, aggregated $1,486,118,321.95, and the cash held by
Federal reserve banks on the same date amounted to $425,599,000,
making the total cash held by all banks $1,911,717,321.95.
The cash holdings of all reporting banks in June, 1915, were
$1,769,861,138.31, the increase in the cash holdings of all banks
during the year being $141,856,183.64, or 8.02 per cent. Coin and
other money held by all banks and by Federal reserve banks are
shown in the following table:
Classification of cash in banks June SO, 1916.
Classification.*
Specie
Paper currency
Nickels and cents..
Cash not classified.
Total
Cash in Federal reserve banks:
Gold coin and certificates (reserve)
Legal tender notes, silver, etc. (reserve).
Federal reserve notes (net)
Total cash in all banks..

7,579 national
banks.

19,934 State, etc., 27,513 reporting
banks.

$640,479,000.00
179,124,000.00

$309,708,001.50
190,517,213.00
2,950,285.01
163,339,822.44

$950,187,001.50
369,641,213.00
2,950,285.01
163,339,822.44

819,603,000.00

666,515,321.95

1,486,118,321.95
374,969,000.00
27,448,000.00
23,182,000.00
1,911,717,321.95

1 Classification incomplete by reason of the fact that in the returns from banks other than national in many
States the various kinds of currency held are not shown separately.
2 Includes $66,971,000 gold clearing house certificates.

DISTRIBUTION OF MONEY IN THE UNITED STATES.

The general stock of money at the close of the fiscal year ended
June 30, 1916, was $4,482,900,000, or $493,500,000 more than was
reported for 1915.
Of the total stock $458,800,000, or 10.23 per cent, was in the
Treasury as assets. Included in the latter amount is $160,540,000,
held by Federal reserve banks and Federal reserve agents against
Federal reserve notes. Coin and other money in national banks and
other reporting banks, exclusive of those in the island possessions,
amounted to $1,472,200,000, and including $425,600,000 cash in
Federal reserve banks, the sum of $1,897,800,000, or 42.34 per cent
of the total stock of money, was held by banks, the remaining $2,126,300,000, or 42.34 per cent, being outside of the Treasury and banks.
The amount in circulation, exclusive of coin and other money in
the Treasury as assets, is $4,024,100,000, or $39.29 per capita, being
an increase of $454,900,000 and a per capita increase of $3.85 over
the amount reported in 1915.
In the following table is shown the distribution of money in the
United States (island possessions not included), giving the amount
in the Treasury as assets and the amount in reporting banks from
1892 to 1916, inclusive:

101

REPORT OF THE COMPTROLLER OP THE CURRENCY.

Coin and other Coin and
Coin and Coin and other
not in
money in Treas- money in reportother
Year
ing banks.2
banks.
t1
money
ended
in the
June 30— United
Per
Per
Amount. cent. Amount. cent. Amount.
Millions. Millions.
$1,752.2
$150.9
1,738.8
142.1
1,805.5
144.2
1,819.3
217.4
1,799.9
293.5
1,906.7
265.7
2,073.5
235.7
2,190.0
286.0
2,339.7
284.6
2,483.1
307.8
2,563.2
313.9
2,684.7
317.0
2,803.5
284.3
2,883.1
295.2
3,069.9
333.3
3,115.6
342.6
3,378.8
340.8
3,406.3
300.1
3,419.5
317.2
3,555.9
341.9
3,648.8
364.3
3,720.0
356.3
3,738.3
3J36.3
3 420.2
/ 3,989.4

1892
1893
1894
1895
1896
1897
1898,
1899,
1900,
1901
1902,
1903
1904
1905
1906
1907.
1908.
1909.
1910.
1911.
1912.
1913,
1914.
1915.

8.60
8.17
7.99
11.95
16.31
13.93
11.37
13.06
12.16
12.39
12.24
11.80
10.14
10.24
10.86
11.00
10.08
8.81
9.27
9.61
9.98
9.58
8.97
10.53

4,482.9

1916.

3 458. 8

10.23

Millions.
$586.4
515.9
688.9
631.1
531.8
628.2
687.7
723.2
749.9
794.9
837.9
848.0
982.9
987.8
1,010.7
1,106.5
1,362.9
1,444.3
1,414.6
1,545.5
1,563.8
1,552.3
1,630.0
1,447.9
* 312.1
1,472.2
* 425.6

In circulation,
other money exclusive of coin
Treasury or and other money
in Treasury as
assets.
Per
cent.

Per
Per
capita. Amount. capita.

57.92
62.15
53.84
53.36
54.14
53.13
55.46
53.92
55.79
55.59
55.07
56.61
54.80
55.49
56.22
53.49
49.58
48.78
49.36
46.93
47.16
48.69
47.41
45.35

$15.50
16.14
14.21
13.89
13.65
13.87
15.43
15.51
17.11
17.75
17.90
18.88
18.77
19.22
20.39
19.36
19.15
18.68
18.68
17.75
17.98
18.61
17.89

Millions.
$1,601.3
1,596.7
1,661.3
1,601.9
1,506.4
1,641.0
1,837.8
1,904.0
2,055.1
2,175.3
2,249.3
2,367.7
2,519.2
2,587.9
2,736.6
2,773.0
3,038.0
3,106.2
3,102.3
3,214.0
3,284.5
3,363.7
3,402.0

44.12

Millions.
$1,014.9
1,080.8
972.4
970.8
974.6
1,012.8
1,150.1
1,180.8
1,305.2
1,380.4
1,411.4
1,519.7
,536.3
,600.1
,725.9
,666.5
L, 675.1
,661.9
,687.7
L668.5
1,720.7
1,811.4
1,772.0
1,809.2

17.96

3,569.2

35.44

42.34

5,126.3

47.43

20.75 5 4,024.1

39.29

33.48
29.68
38.17
34.96
29.55
32.94
33.17
33.02
32.05
32.02
32.69
31.59
35.06
34.27
32.92
35.51
40.34
42.40
41.37
43.46
42.86
41.73
43.62

$24.60
24.06
24.56
23.24
21.44
22.92
25.19
25.62
26.93
27.98
28.43
29.42
30.77
31.08
32.32
32.22
34.72
34.93
34.33
34.20
34.34
34.56
34.35

1
Public money in national-bank depositaries to the credit of the Treasurer of the United States not
included.
2
Money in banks of island possessions not included.
3
Includes amount held by Federal reserve banks and Federal reserve agents against Federal reserve
notes.
* Money in Federal reserve banks June 25,1915, and June 30,1916.
5
Population estimated at 102,431,000.

INDIVIDUAL DEPOSITS

IN ALL R E P O R T I N G

BANKS.

Individual deposits in all reporting banks on June 30, 1916, aggregated $22,773,714,074.98. In 1915 individual deposits were reported
at $19,135,380,200.45. The increase during the fiscal year was,
therefore, $3,638,333,874.53, or 19.01 per cent. The percentage of
increase in deposits for the fiscal year ended June, 1915, was 3.34.
Individual deposits in each class of banks as of June 30, 1916,
classified as demand, time, savings, and unclassified, are as follows:
Classification of individual deposits in each class of banks, June 30, 1916.
Demand deposits

Banks.

(including de- Time deposits,
Num- mand certificates including time |
ber of of deposit, certicertificates
banks. fied checks, and
of deposit.

Savings
deposits.

Unclassified
deposits.

Total.

cashier's checks).

State banks...
Stock savings
banks
Mutual sav-

15,450 $2,668,212,552.2' $664, 731,176.99 $961,693,954. 30 $1,615,346.49 $4,296,253,030.05
1,242

45, 727,225.42

622

18,304,194.68

438,832.54 4,135,113,212. 0933,120,361.

4,186, 976,600.64

3,774,371,136.47
93,992,654.39

1,188,946.
166,846,034.471,214,090,179. 02 43
27,659,270.15
16,302,104. 43 8,811,424.

5,198, 496,296.53
146, 765,453.88

6,600,607,763.23

869,564,421.35 7,171,546,327.32 88,383,563.0814,730,102,074.98

Loan and trust
companies.. 1,606
Private banks. 1,014
Total... 19,934
Nat i onal
banks
7,579
Grand
total.. 27,513

9,889,107.20

844,346,877.

.78
1,647,483.

6,373,925,000.001
[,669,687,000.00

901 610,693.88

8,043, 612,000.00

12,974,532,763.23 2,539,251,421.35 7,171,546,327.32 88,383,563.08 22,773,714,074.98
1

Exclusive of United States and postal savings deposits.

102

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Summaries of reports of condition from banks other than national
show savings deposits held aggregating $7,171,546,327. Sayings deposits in mutual savingsbanks were $4,135,113,212, or, including time
and demand, they were $4,186,976,600; in stock savings banks, $844,346,877 (including time and demand, $901:610,693); State banks,
$961,693,954; loan and trust companies, $1,214,090,179; and private
banks, $16,302,104.
In view of the fact that under the Federal reserve act deposits
in national banks are classified as demand and time, it is not possible
to state the amount of deposits that might be classed as savings held
by banks of that character.
STATE AND PRIVATE BANK FAILURES.
Statistical information has been obtained through the courtesy
of the Bradstreet Commercial Agency with respect to the number of
banks closed, other than national, together with the assets and liabilities and the date of closing, but no information is submitted in
relation to dividends paid to creditors or to the settlement of the
affairs of insolvent State and private banks.
Included in the list of failures are 23 State banks with assets of
$2,147,768 and liabilities of $2,991,094; 3 savings banks with assets of
$7,750,000 and liabilities of $11,885,000; 3 trust companies with
assets of $256,070 and liabilities of $257,000; and 12 private banks
with assets of $358,000 and liabilities of $877,416.
Since 1896 no statistics have been secured relating to the settlement of the affairs of banks of this character, but there have been
reported from year to year the number of failures, with assets and
liabilities at the date of failure, which is summarized in the table
following:
Number of failures, capital, assets, liabilities, and dividends paid by State and private
banks that failed in each year from 1864 to 1916.
Year.

1864
1865.
1866.
1867.
1868.
1869
1870
1871
1872
1873
1874
1875
1876
1877,
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894

Number
of
failures.
2
5
5
3
7
6
1
7
10
33
40
14
37
63
70
20
10
9
19
27
54
32
13
19
17
15
30
44
27
261
71

Capital.

Nominal
assets.

$125,000.00
275,000.00
260,000.00
276,381.00
100,000.00

$245,401.97
1,206,035.00
222,075.00
183,002.30
77,861.00

220,000.00
470,000.00
907,000.00
770,000.00
2,413,900.00
961,000.00
2,491,250.00
3,250,193.00
1,370,465.00
452,200.00
436,750.00
545,000.00
870,000.00
1,718,596.00
1,099,400.00
254,000.00
. 931,590.00
745,500.00
363,250.00
2,169,568.00
2,071,300.00
578,840.00
16,641,637.00
3,112,447.00

2,314,871.90
2,126,124.18
4,644,889.91
4,125,731.00
9,190,283.98
7,312,218.73
13,137,835.47
26,001,949.67
5,102,691.94
1,629,146.61
585,653.06
2,765,951.10
2,813,915.19
12,900,819.05
2,982,879.51
1,300,536.30
2,865,300.30
2,805,326.52
1,279,900.68
10,692,385.98
7,190,824.69
2,719,410.75
54,828,690.65
7,958,284.18

Liabilities.

$225,662.14
890,112.00
138,821.00
148,886.00
361,961.73
50,000.00
2,654,187.15
3,059,318.06
6,938,653.01
4,562,879.00
12,365,475.25
9,206,429.34
15,222,785.49
27,269,520.51
5,252,307.22
1,311,799.49
1,785,890.45
2,608,489.57
3,193,747.39
15,508,389.70
4,883,454.27
1,140,824.48
3,074,622.29
3,342,336.52
2,147,059.18
11,385,584.64
6,365,198.77
3,227,608.56
46,766,818.80
7,218,319.51

Dividends
paid.

$145,592.25
138,821.00
82,844.74
974,256.96
1,906,573.00
3,420,016.33
2,022,498.51
4,143,941.97
5,178,020.98
7,004,558.27
19,485,717.87
4,235,808.85
288,494.74
851,755.00
1,221,737.29
1,408,047.99
9,671,860.25
2,361,320.01
673,579.10
1,610,527.45
1,924,773.68
1,026,682.73
3,884,577.99
3,090,597.48
803,860.76
17,912,270.45
1,456, 522. 87

REPORT OF THE COMPTROLLER OF THE

103

CURRENCY.

Number of failures, capital, assets, liabilities, and dividends paid by State and private
banks that failed in each year from 1864 to 1916—Continued.
Number
of
failures.

Year.

Capital.

115
78
1,164
70

1896
Total
Not dated
Total
1897
1898
1899
1900
1901
1902
1903
1904
1905
1906
1907
1908
1909
1910
1911
1912
1913
1914
1915
1916

Nominal
assets.

Liabilities.

Dividends
paid.

$9,010,584.93
7,513,837.41

$2,251,708.93
534,363.30

53,187,259.00 212, 725, 771.58 218,833,563. 86
1,586, 419.00
1,796,424.41
445,000. 00

99,711,330.75
377,396.20

$3,906,350.00 $11,276,529.99
3,400,642.00 10,240,244.97

220,629,988.27 100,088,726.95
53,632,259.00 214,312,190.
1,234
17,929,163.
24,090.879. 00
122
4,493,577.
7,080; 190. 00
53
7,790,244.
10,448,159.00
26 !
I
7,675,792.
11,421,028.00
32
6,373,372.
13,334,629.00
56 i
7,323, 737.
10,332,666.00
43 I
2,166, 852.
26
4,005,643.00
24,296,823.
102
31,774,895.00
6,970,345.
10,273,023.00
57 !
6,591,515.
7,187,858.00
37 |
13,037,497.
22,165,448.00
34 !
177,073,348.
209,835,443.00
132 j
15,760,177.
25,190,156.00
60
14,496,610.
18,182,592.00
28 !
13,962,050.
18,546,583.00
56
7,797,401.
12,838,837.00
55 I
6,182,295.
40
7,520,527.00
20,601,228.
96
32,058,706.00
16,495,002.
27,866,847.00
110
10,511,838. 00 i 16,010,510. 00 |
41

Total

601,841,056.58 \ 740,794,607.27 j.

2,440

For the purpose of comparison there is submitted herewith a
statement relating to failures by years and classes of banks:
Number, assets, and liabilities of State banks, savings banks, loan and trust companies,
private banks, and national banks which failed, by years, from June SO, 1892, to June
30, 1916.
[In the amounts 000 omitted.]
State institutions.
State banks.

Year.
No.
1892
1893
1894
1895
1896
1897
1898
1899
1900
1901. . .
1902
1903
1904
1905
1906
1907
1908
1909
1910... .
1911
1912
1913. .
1914
1915
1916
Total

Assets.

Savings banks.

Liabilities.

No.

Loan and trust companies.

Assets.

Liabilities.

No.

$209
15,098
33,420
4,107
1,159
3,436
1,275
5,067
5,243
995
12
371
13,128
2,525
4,636
4,850
110,047
5,342
3,072
140
2,452
3,409
7,948
988
256

$425
24,144
37,977
5,844
936
4,325
1,575
6,701
6,636
1,113
22
561
15,880
3,600
3,990
8,100
126,200
5,412
2,216
230
4,304
3,419
8,752
1,341
257

229,185

273,960

24
172
27
46
55
44
14
5
9
8
12
6
37
16
15
10
42
19
9
28
29
18
53
57
23

$1,892
41,282
1,774
2,555
3,741
6,080
694
919
418
1,003
1,364
645
5,194
1,397
710
2,380
41,035
2,732
8,170
9,865
2,318
1,362
8,947
3,599
2,148

$3,178
36,903
2,010
3,445
4,628
8,083
988
1,240
442
1,440
2,056
965
6,725
2,282
1,006
4,833
43,227
3,286
9,111
12,678
3,129
1,866
11,511
4,820
2,991

6
47
9
8
9
19
4
4
3
3
10
1
7
4
5

$484
17,674
2,646
4,653
662
3,998
800
1,153
328
450
4,622
35
1,457
550
360

$917
16,831
2,678
4,818
902
5,455
956
1,632
410
531
5,730
235
1,704
811
490

12
2
1
4
1
4
7
5
3

7,760
85
52
2,021
40
564
643
•4;255
7,750

7,581
105
63
2,487
66
680
769
4,335
11,885

3
19
8
6
4
12
2
2
4
4
1
2
8
2
4
4
25
6
6
2
4
3
9
9
3

778

152,224

172,843

178

63,042

72,071

152

Assets.

Liabilities.

104

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Number, assets, and liabilities of State banks, savings banks, loan and trust companies,
private banks, and national banks which failed, by years, from June SO, 1892, to June
SO, 1916—Continued.
[In the amounts 000 omitted.]
Total State and private
institutions.

Private banks.

National banks. 1

Year.
No.
1892
1893
1894 .
1895
1896
1897
1898
1899 .
1900
1901 .
1902
1903
1904
1905
1906 .
1907
1908
1909
1910
1911
1912
1913
1914
1915
1916
Total

Assets.

36
176
21
25
42
47
33
15
16
41
20
17
50
35
13
20
53
33
12
22
21
15
27
39
12

$3,540
20,237
1,749
1,389
1,886
4,416
1^25
651
1,687
3,925
1,325
1,116
4,518
2,498
886
5,807
18,231
7,602
3,206
1,935
2,976
846
3,663
7,652
358

841

. .

103,224

No.

$6,125
94,291
39,589
12,704
7,448
17,930
4,494
7,790
7,676
6,373
7,323
2,167
24,297
6,970
6,592
13,037
177,073
15,761
14,496
13,962
" 7,797
6,182
20,601
16,495
10,512

$11,025
97,193
44,901
15,912
9,174
24,091
7,080
10,447
11,421
13,335
10,333
4,006
31,775
10,273
7,188
22,165
209,836
25,190
18,182
18,546
12,838
7,520
32,059
27,866
16,010

17
65
21
36
27
38
7
12
6
11
2
12
20
22
8
7
24
9
6
3
8
6
21
14
13

$16,257
31,135
8,366
14,919
14,203
39,579
5,395
2,725
13,590
9,157
604
7,308
8,734
15,308
2,410
8,048
33,475
4,041
3,160
1,412
5,515
8,049
11,548
16,244
3,617

$12,769
20,356
5,579
9,416
10,066
26,415
3,817
1,810
10,312
7,678
379
5,710
6,379
13,678
1,602
5,461
22,417
3,174
2,898
923
4,484
6,672
9,772
12,211
2,594

547,685

698,366

415

284,799

206,570

No.

Assets.

$6,505
19,315
2,236
1,805
2,708
6,228
3,561
874
3,933
10,251
2,525
2,245
7,466
3,580
1,702
9,232
32,828
16,387
6,792
3,150
5,338
1,554
11,027
17,370
877

69
414
65
85
110
122
53
26
32
56
43
26
102
57
37
34
132
60
28
56
55
40
96
110
41

179,489 1,949
2

i Years ended Oct. 31.

Assets—
nominal Liabilities.*
value.

Liabilities.

Claims proved, offsets allowed, and loans paid.

BANKS AND BANKING IN THE DISTRICT OF COLUMBIA.

There are 59 banking institutions in the District of Columbia,
consisting of 14 national banks, 6 trust companies, 20 savings banks,
and 19 building and loan associations. The aggregate capital of all
these institutions on June 30, 1916, was $18,659,000. The total
individual deposits were $104,821,809, and the aggregate resources,
$157,534,007.
The number, capital, individual deposits, and aggregate resources
of each class offinancialinstitutions doing business in the District of
Columbia on June 30, 1916, are shown in the following table:
Number.

Total

Aggregate
resources.

14 $7,159,000
6 10,000,000
20 1,500,000
19

National
Loan and trust companies .
Savings banks..
"Rililrhng fvncl IO&TI associations

Individual
deposits.
$39,775,000
32,837000
13,541,000
U8,668,809

$68,470,000
51,326,000
16,127,000
21,611,007

18,659,000

104,821,809

157,534,007

59
1

Capital.

Share payments mainly.

BUILDING AND LOAN ASSOCIATIONS IN THE DISTRICT OF
COLUMBIA.

On March 4, 1909, the building and loan associations in operation
in the District of Columbia were placed under the supervision of the
Comptroller of the Currency. Since that date they have shown a
steady increase in business, as indicated by the volume of loans,
installment payments on shares, and aggregate resources, as set
forth in the following table:

105

EEPOET OF THE COMPTKOLLEE OF THE OUEEENCY.
Number
of associations.

Years.
June 30—
1909
1910
1911
1912
1913
1914
1915
1916

22
19
19
20
20
20
20
19

.
.

Loans.

Installments
on shares.

$13,511,587
14,415,832
14,965,220
16,004,760
17,398,010
18,582,156
19,524,065
20,186,662

Aggregate
resources.

$11,996,357
13,213,644
13,324,217
14,529,977
16,453,044
17,113,899
17,866,337
118,668,808

$14,393,927
15,250,731
16,017,465
17,160,293
18,438,294
19,629,260
20,655,614
21,611,007

BUILDING AND LOAN ASSOCIATIONS IN THE UNITED STATES.

This office is indebted to Mr. H. F. Cellarius, secretary of the
United States League of Local Building and Loan Associations, for
statistics relating to building and loan associations of the United
States for the year ended December 31, 1915. These statistics show
that there were in 1915 in the United States 6,806 associations, with
a total membership of 3,334,899 and having assets amounting to
$1,484,205,875. The increase in resources for the year amounted
to $126,497,975, or 9.32 per cent over the figures reported for 1914.
The membership increased 230,964, or 7.44 per cent during the same
period.
The following table shows by States the number of associations,
total membership, and total assets for States in which accurate statistics are compiled by State supervisors. The data for other States
are consolidated under the heading " Other States," and the figures
given are estimated:
Statistics for 1915.
States.
Pennsylvania
Ohio
New Jersey
Massachusetts
Illinois
New York
Indiana
Nebraska
California
Michigan
Louisiana
Kentucky
District of Columbia
Kansas
Missouri
North Carolina
Wisconsin
Iowa
Arkansas
Washington
Minnesota
West Virginia
Maine
Rhode Island
Connecticut
Tennessee
New Hampshire
North Dakota
Oklahoma
New Mexico
Montana
Texas.
Vermont
Other States
Total

Number
of associations.

Total
membership.

Total assets.

Increase
in assets.

Increase
in membership.

568,000
649,126
281,464
217,427
215,150
179,380
190,925
83, 765
38,788
59,365
50,462
61,056
37,044
56,689
43,987
38,945
37, 747
36,200
22,540
30,114
18,500
18,500
13,120
9,263
12,618
5,261
9,424
5,550
8,947
3,810
2,020
3,903
471
325,338

$277,000,000
263,10G, 613
143,903,994
101,543,318
98,390,668
72,419,658
63,679,080
41,660,870
30,441,084
27,696,545
23,362,690
23,176,078
20,959,574
20,797,976
20,509, 725
14,359,449
14,228,401
12,517, 852
10,031,099
10,022,132
7,501,626
7,073,421
5,957,696
5,041,439
3,855,546
3,226,591
2, 734,727
2, 725, 859
2,700,000
1, 578,109
1,462,982
1,247,303
201,437
149,092,333

$21,893,720
22,175, 828
11,298,097
10, 761,848
7,818,325
3,943,159
7,251,531
4,522,457
925,321
l; 956, 710
2,299,898
1,376,143
829,422
2,272,953
2,453,866
1,656,095
1,937,519
5,150,507
403,206
2,144,665
325,154
335,052
399,427
254,693
273,768
118,510
229,642
i 81,616
759,429
i 7,404
130,532
272,451
15,276
10,401,791

22,376
37,659
15,955
13,178
11,481
7,133
26,305
8,411
1697
710
4,970
4,778
879
5,035
6,523
5,570
6,193
9,967
905
5,497
1,871
2,500
1,007
151
5,507
849
255
U50
2,714
U8
57
681
15
22,697

3,334, 899

1,830
657
742
179
632
251
344
71
89
65
66
115
19
65
153
155
74
51
39
24
64
43
37
7
16
14
20
10
35
13
13
19
4

1,484,205, 875

126,497,975

230,964

i Decrease.

106

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Ohio shows the largest increase in assets for the year, gaining
$22,175,828, followed by Pennsylvania, whose increase is $21,893,720.
Other increases for the year are: New Jersey, $11,298,097; Massachusetts, $10,761,848; Illinois, $7,818,325; Indiana, $7,251,531; Iowa,
$5,150,507; Nebraska, $4,522,457; and New York, $3,943,159.
The average amount due each member is $445.05 as against $437.41,
the amount shown last year.
EECEIPTS AND DISBURSEMENTS FOR 1915.

The aggregate receipts for 1915 were $966,913,414, an increase of
$43,255,710 over the previous year. The receipts from weekly dues
were $9,015,120 in excess of 1914, and the mortgage loans made
by the various associations were $10,183,440 in excess of the previous year. The total expense of management for all associations
was $8,640,152, or a little less than nine-tenths of 1 per cent of the
total receipts, which is about the same percentage as last year. In
detail the receipts and disbursements for the year 1915 were as follows:
RECEIPTS.

Cash on hand Jan. 1, 1915
Weekly dues
Paid up stock
Deposits
Loans repaid
Interest
Premium
Fines
Pass books and initiation
Borrowed money
Real estate sold.
Miscellaneous receipts

$37, 008, 676
302, 050, 992
35, 984, 734
82, 510, 726
267,408, 616
84, 568, 554
4,395,030
1,315,102
742, 726
109, 085, 326
6, 595, 952
35, 246, 980

Total receipts

966, 913, 414
DISBURSEMENTS.

Pass-book loans
Mortgage loans
Stock withdrawals
Paid-up stock withdrawals..
Deposit withdrawals
Expenses
1
Borrowed money repaid
Interest
Real estate purchased
Miscellaneous disbursements
Cash on hand Jan. 1, 1916
Total disbursements

$34, 315, 304
351, 820,448
268,185^12
31, 651, 030
78, 967,446
8,640,152
106, 530, 076
2, 964, 090
10, 064, 278
32,162, 080
41, 613, 098
966, 913,414

UNITED STATES POSTAL SAVINGS SYSTEM.

The Third Assistant Postmaster General submits the following
information showing, by States and Territories, the balances to the
credit of depositors on June 30, 1915, deposits and withdrawals during
the fiscal year 1916, the balances to the credit of depositors on June
30,1916, and the balances on deposit on June 30, 1916, in banks which
have qualified to receive postal savings deposits:

REPORT OF THE COMPTROLLER OF THE CURRENCY.

107

Balances to credit of postal-savings depositors on June 80,1915, deposits and withdrawals
duringfiscalyear, and balances to the credit of depositors and on deposit in banks June
80, 1916, by States.
Balance to
credit of
depositors
June 30,1915.

Deposits
during
fiscal year.

Deposits
withdrawn
during
fiscal year.

United States..

$65,684,708

$76,775,868

$56,440,691

$86,019,885

$80,775,586.36

Alabama
Alaska*
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia..
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri...:.
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Porto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia..
Washington
West Virginia
Wisconsin
Wyoming

169,581

212,659
38,492
692,953
177,282
3,387,267
1,291,602
2,120,680
289,520
287,488

160,067
2,512
479,226
141,719
3,221,818
1,002,851
1,296,183
198,613
237,250
344,319
94,333

222,173
35,980
605,635
229,200
3,835,989
1,652,603
1,933,961
172,938
373,386
363,923
121,943
38,452
380,509
5,991,844
1,377,435
527,383
740,925

220,137.30
16,173.00
594,831.84
227,498.21
3,631,198.77
1,603,741.98
1,918,408.89
172,250.85
330,273.00
360,713.19
121,280.65
38,275.30
382,750.84
5,532,235.71
1,358,475.52
521,761.73
727,010.82
423,276.14
269,464.51
293,109.96
163,234.00
3,834,511.21
3,046,208.41
1,886,459.17
139,107.52
1,974,390.80

State.

391,908
193,637
3,670,540
1,363,852
1,109,464
82,031
323,148
306,068
105,709
30,108
365,314
4,932,414
1,173,982
453,794
704,865
401,533
277,302
262,599
149,947
3,004,406
2,241,472
1,744,145
160,585
1,799,356
899,652
398,306
390,403
365,585
1,974, 744
83,605
19,594,877
44,810
36,809
4,419,336
336,547
1,493,935
4,409,746
44,636
540,171
29,007
72,815
264,912
649,914
209,657
85,865
258,013
1,943,832
183,583
1,399,143
137,045

402,174

110,567
64,176
327,489
4,528,680
1,124,259
432,873
465,360
342,060
247,229
250,826
139,141
3,608,587
3,413,453
1,522,558
89,107
1,694,975
1,345,281
337,645
442,550
323,122
2,577,240
140,962
25,435,263
35,670
47,259
4,489,716
261,349
1,369,012
6,187,861
152,178
775,396
26,482
67,390
218,010
824,279
321,622
80,444
481,908
1,778,900
259,998
1,372,675
162,199

312^4

3,469,250
920,806
359,284
429,300
304,708
232,851
219,261
117,679
2,617,805
2,454,778
1,315,574
109,377
1,357,804
306,168
393,433
259,055
1,745,519
112,973
17,422,316
34,733
43,285
3,432,197
275,461
1,305,084
3,489,811
120,838
519,657
29,044
65,049
221,528
704,262
234,264
68,614
377,063
1,603,587
191,302
960,245
131,019

Balance to
Balance on
deposit in
credit of
Banks
depositors
June 30,1916. June 30, 1916.*

291,680
294,164
171,409
3,995,188
3,200,147

1,951,129
140,315
2,136,527
1,306,243

429,783
439,520
429,652
2,806,465
111,594
27,607,824
45,747
40,783
5,476,855
322,435
1,557,863
7,107,796
75,976
795,910
26,445
75,156
261,394
769,931
297,015
97,695
362,858
2,119,145
252,279
1,811,573
168,225

1 230,744.28

414,380.76
421,056.79
429,915.50
2,758,771.98
109,663.97
24,744,056.52
45,472.63
40,881.12
5,187,140.12
319,479.24
1,499,854.07
6,901,181.54
10,000.00

782,177.89
26,181.45
73,972.49
253,573.41
745,773.01
300,772.24
97,644.46
362,076.46
2,049,517.39
249,985.57
1,766,183.19
168,350.96

i Balances are as shown by banks' books. The actual balances to credit of board of trustees was $80,721,982.61. The difference is made up as follows: Add funds in transit to banks, $3,975.60; due from late
qualified banks, $0.46; deduct outstanding checks, $48,929.81; funds in transit to banks, $8,650.
a No post offices designated as depositories until April, 1916.

The number of depositors on June 30, 1915, was 525,414, while
on June 30, 1916, they numbered 602 937, being an increase in the
number of depositors of 77,523.
63366°—17

108

REPORT OF THE COMPTROLLER OF THE CURRENCY.

SAVINGS BANKS IN THE PRINCIPAL COUNTRIES OF THE WORLD.

The Bureau of Foreign and Domestic Commerce, Department of
Commerce, has furnished for publication in this report the latest
available information with reference to savings banks in foreign
countries. The statistics following show the number of depositors,
amount of deposits, average deposit account, and the average deposit per inhabitant of the principal countries of the world. The
statistics presented are divided into two classes; first, those relating
to all sayings banks; and, second, to postal savings banks. To the
information so obtained have been added data relating to mutual
and stock savings banks in operation in the United States together
with postal savings in the United States and the Philippine Islands.
The statistics thus obtained are shown in the table which follows:

Savings banks, including postal savings banks: Number of depositors, amount of^ deposits, average deposits per deposit account and per inhabitant, by
specified countries.
[Compiled by the Bureau of Foreign and Domestic Commerce, Department of Commerce, from official reports of the respective countries.]

Countries.

Population. 1

Date of
report.

(Dec. 31,1912
28,996,000 {Dec. 31,1913
|....do
7,571,000 /Dec.. d 31,1912
.
id. .
4,338,000 Dec. .31,1911
3,597,000 Dec. 31,1914
2,830,000 Mar. 31,1914
12,170,000 Dec. 31,1914
31,1913
39,602,000 /Dec. 31,1914
\Dec.
5,564,000 Dec. 31,1909
1,929,000 Dec. 31,1912
66,715,000 Dec. 31,1913
(Dec. 31,1909
21,030,000 P e c . 31,1912

Form of organization.

Number of
depositors.

Deposits.

Communal and private savings banks
4,404,506 $1,302,465,052
Postal savings banks, savings department..
2,300,407
40,297,296
Postal savings banks, check department...
79,561,438
122,870
Government savings banks
204,147,391
3,013,296
Belgium
Communal and private savings banks
,
49,794
11,854,503
Bulgaria
Postal savings banks
312,462
8,797,965
Chile
Public savings banks
396,488
11,334,804
Denmark 2 .,
Communal and corporate savings banks
198,822,832
1,202,973
Postal savings banks
Egypt
233,744
2,251,803
Private savings banks
774,405,417
8,604,993
France
Postal savings banks
348,858,018
6,555,992
Algeria.
1,309,769
Municipal savings banks
19,427
Tunis..,
Postal savings banks
1,504,443
5,546
Germany 3 ..
4,685,982,000
Public and corporate savings banks
23,871,657
428,023,064
Communal and private savings banks
,
1,149,251
Hungary...
21,983,784
Postal savings banks, savings department.,
836,143
I....do
22,027,751
Postal savings bank, cheek department
24,104
500,799,921
31,1913
2,438,108
corporate savings banks
Italy..
35,598,000 /Dec. 31,1914 Communal andbanks
386,860,167
\Dec.
Postal savings
6,274,133
82,883,367
sayings banks
8,639,296
Japan.
53,597,000 /Dec. 31,1912 Privatesavings banks
100,985,778
\Mar. 31,1915 Postal
12,928,005
172,732
/Dec. 31,1912 Private sayings banks
.•
,
8,065
Formosa...
3,544,000 \Mar. 31,1914 Postal savings banks
1,185,058
141,005
3,167,091
Chosen
16,500,000 Mar. 31,1915
720,167
do
1,726,037
Kwantung.
78,185
522,000 Mar. 31,1913
do
Luxemburg....
12,597,471
268,000 Mar. 31,1914 State savings bank
76,808
52,159,902
/Dec. 31,1913 Private savings banks
509,836
Netherlands
6,340,000
74,203,170
1,671,498
\Dec. 31,1914 Postal savings banks
889,304
do
Private savings banks
5,740
Dutch East Indies 4 .
38,000,000 /
3,829,627
122,429
\.....do
Postal savings banks
Dutch Guiana
323,511
86,000
10,338
do
do
Norway
1,136,262
162,595,349
2,459,000 Dec. 31,1913 Communal and private savings banks
Roumania
11,616,820
6,866,000 July 1,1910 Government savings banks
218,690
1
The figures of population are for the nearest date to which the statistics of savings banks relate.
* Exclusive of 2,198 deposits of $253,885 in savings banks in Faroe Islands, and 188,718 savings deposits of $36,220,888 in ordinary banks.
3
Exclusive of Brunswick.
« Exclusive of data for three large private savings banks in Batavia, Soerabaja and Macassar, and the small banks of Amboina and Menado.
Austria..

Average Average
deposit
deposit
per inaccount. habitant.
$295.71
17.52
647.53
67.75
238.07
28.16
28.59
165.28
9.63
89.96
53.21
67.42
271.27
196.30
372.44
26.29
913.86
205.41
61.66
9.59
7.81
21.42
8.40
4.40
22.08
164.01
102.31
44.39
154.93
31.28
31.29
143.10
53.12

$44.92
1.39
2.74
26.96
1.57
2.03
3.15
70.26
.19
19.55
8.81
.24
.78
70.24
20.35
1.05
1.05
14.07
10.87
1.55
1.88
.05
.33
.19
3.31
47.01
8.23
11.70
.02
.10
3.78
66.12
1.69

i
o
K
Q

O
^

c
o
h;

o
c

^
c

c
*

Savings banks, including postal savings banks: Number of depositors, amount of deposits, average deposits per deposit account and per inhabitant, by
specified countries—Continued.

Countries.

Population.

Date of
report.

Form of organization.

Russia i
Finland
Spain 2
Sweden
Switzerland
United Kingdom 3
British India 4
Australia, Commonwealth of
New Zealand
Canada 5
British South Africa6...
British West Indies....
British colonies, n. e. s.,

175,137,000
3,232,000
20,356,000
5,680,000
3,555,000
46,089,000
244,268,000.
4,932,000
1,103,000

Mar. 14,1916
/Dec. 31,1914
\Dec. 31,1913
Dec. 31,1914
/Dec. 31,1914
\....do
Dec. 31,1908
/Nov. 20,1914
\Dec. 31,1914
Mar. 31,1914
Mar. 31,1916
/Dec. 31,1915
(Mar. 31,1916
/June 30,1915
\....do
1914-15
1913-14
1913-14

State, including postal savings banks..
Private savings banks
Postal savings banks
Private savings banks
Communal and trustee savings banks.
Postal savings banks
Communal and private savings banks.
Trustee savings banks
Postal savings banks
do.
Commonwealth, State, trustee, and joint-stock savings banks.
Postal savings banks
Private sayings banks
Postal savings banks
Dominion Government savings banks
Government and post office savings banks
do
....do

Total, foreign countries.
United States
Philippine Islands
Grand total

8,075,000
7,173,000
1,752,000
25,227,000
904,701,000
102,522,000
9,930,000
1,017,153,000

June 30,1916 -iMutual savings banks.
[Stock savings banks...
Dec. 31,1915 Postal savings banks..

Number of
depositors.

Deposits.

10,257,000 $1,373,350,500
361,662
60,844,408
69,535
1,709,448
781,274
89,006,488
1,755,009
264,432,722
578,271
12,020,007
1,963,417
307,386,431.
1,917,944
262,514,923
13,514,814
927,229,857
75,163,244
1,638,725
2,367,754
450,832,336
509,085
107,872,610
78,024
10,086,318
133,304
39,230,868
13,903,114
32,137
248,542
31,273,170
97,237
6,078,157
15,311,454
263,940

Average Average
deposit deposit
per inaccount. habitant.
$133.89
168.24
24.58
113.92
150.67
20.79

156.56
136.87
68.61
45.87
190.45
211.82
129.27
294.30
432.62
125.83
68.68
58.01

$7.84
18.83
.53
A 27
46.56
2.12
86.47
5.70
20.12
.31
91.41
97.82
9.15
4.86
1.72
4.36
3.81
.61

124,549,890
602,937
8,592,271
2,556,121
54,434

13,588,468,690
80,775,586
4,186,976,600
901,610,693
1,601,794

109.10
133.97
487.30
352.72
29.42

18,759,433,363

137.57

18.44

50.42

136,355,653

15.02

1
2

The total is exclusive of $382,542,000 worth of securities held by the savings banks to the credit of depositors.
The peseta has been converted at the rate of 18.6 cents.
Exclusive of Government stock held for depositors, amounting to $129,336,231 in the postal savings banks and to $13,121,563 in the trustee savings banks.
4
Exclusive of the population of the feudatorv States.
5
Exclusive of savings deposits in chartered banks and special private savings banks.
6
At the end of 1912 the private savings banks held deposits of $4,271,955.

3
o

Ill

BEPOET OF THE COMPTROLLER OF THE CURRENCY.

FEDERAL RESERVE BANKS.
The 12 Federal reserve banks opened for business on November
16, 1914. Statements of their combined assets and liabilities are
issued weekly. The combined statements for November 27, 1914,
November 26, 1915, and November 24, 1916, are as follows:
Nov. 27,1914. Nov. 26,1915. Nov. 24,1916.
RESOUBCES.

$227,840,000
34,630,000
7,383,000

165,000

27,308,000
19,176,000
14,053,000
4,633,000
485,342,000

735,060,000

18,050,000
249,268,000
2,700,000

54,846,000
15,000,000
397,952,000
13,385,000
4,159,000

55,711,000
26,319,000
637,072,000
14,296,000
1,028,000
634,000

270,018,000

. '

$459,935,000
18,444,000
122,593,000
39,427,000
11,167,000
22,166,000
15,414,000
43,263,000
2,651,000

270,018,000

Gold
Other lawful money.
..
Bills discounted and bought
United States bonds
One-year Treasury notes
Municipal warrants
Federal reserve notes—net
Due from Federal reserve banks—net
All other resources.......

485,342,000 j

735,060,000

Total

$321,068,000
37,212,000
48,973,000
12,919,000

LIABILITIES.

Capital paid in
Government deposits
Member bank deposits—net
Federal reserve notes—net
Federal reserve bank notes in circulation..
All other liabilities
Total...

The first purchases of United States bonds and municipal warrants
were reported in the statement for June 18, 1915, and were as follows:
United States bonds, $7,200,000, and municipal warrants, $9,700,000.
In the statement for April 8, 1916, there appear among the assets for
the first time United States Treasury notes issued in exchange for 2
per cent bonds previously acquired by the Federal reserve banks, the
amount being $1,932,000. These notes bear interest at the rate of
3 per cent per annum and are payable one year after date of issue.
The statement for November 24, 1916, shows that the purchase of
United States bonds had increased to $39,427,000, one-year Treasury
notes to $11,167,000, and municipal warrants to $22,166,000.
The development of the business of the Federal reserve banks as
indicated by the weekly statements to November 24, 1916, is shown
in the following table :
Comparative statement of the principal items of resources and liabilities of the Federal
reserve banks from the date of the first report, Nov. 20, 1914, to Nov. 24, 1916.
ASSETS.
[In millions of dollars.]

Date.

1914.
Nov. 20.. .
Nov. 27.. .
Dec. 4 . . . . .
Dec. 11... .
Dec. 18... .
Dec. 24... .
Dec. 31... .

Gold,
Bills
includreceiving 5
Other able dis- United
States
per cent lawful
redemp- money. counted bonds.
and
tion
bought.
fund.

203.4
227.8 .
230.9
232.0
233.2
. 232. 6
229.0

37.3
34.6
32.0
28.2
25.0
25.7
26.6

5.6
7.4
9.8
10.2
9.0
8.5
10.6

Oneyear
Treasury
notes.

Due
from
Munici- Federal Federal
reserve
pal war- notes
reserve
rants.
banks
(net).
(net).

i
i

All
other
assets.

0.1
.2 I
.3
2.0
2.7
4.8
11.6

Aggregate
assets.

246.4
270.0
273.0
272.4
269.9
271.6
277.8

112

REPORT OF THE COMPTROLLER OF THE CURRENCY.-

Comparative statement of the principal items of resources and liabilities of the Federal
reserve banks from the date of the first report, \Nov. 20, 1914, to Nov. 24, 1916—Con.
ASSETS—Continued.
[In millions of dollars.]

Date.

1915.
Jan. 8
Jan 15 . .
Jan. 22
Jan. 2 9 . . . .
Feb. 5
Feb. 12....
Feb. 19
Feb. 26....
Mar. 5
Mar. 12....
Mar. 19....
Mar. 26..
Apr. 2...
Apr. 9... -.
Apr. 16..
Apr. 23..
Apr. 30 .
May 7
May 14 . . .
May 2 1 . . . .
May 2 8 . . . .
June 4
June 11
June 18
June 25..
July 2 . . . . .
July 9
July 16..
July 23.. -July 30..
Aug. 6 .
Aug 13 .
Aug. 20..
Aug. 27..
Sept. 3 . .
Sept. 10
Sept. 17.
Sept. 24.
Oct 1
Oct. 8 . . .
Oct. 15 .
Oct. 22..
Oct. 29..
Nov. 5
Nov. 12.
Nov. 19.
Nov. 26.
Dec. 3 . . .
Dec. 10
Dec. 17..
Dec. 23..
Dec. 30
1916.
Jan. 7
Jan. 14

Jan. 21
Jan. 28

Feb. 4 . . .
Feb. 11....
Feb. 18 . . .
Feb. 25....
Mar. 3
Mar. 10....
Mar. 17....
Mar. 24....
Mar. 31... .
Apr. 7...
Apr. 14.. •Apr. 21..

Gold,
Bills
includreceiving 5
Other able dis- United
States
per cent lawful
redemp- money. counted bonds.
and
tion
bought.
fund.

232.6
236.5
239.7
235.9
256.2
259.2
251.8
248.9
247.3
247.0
245.0
242.1
239.1
239.5
237.2
238.7
238.2
244.0
241.1
243.4
243.6
242.5
246.2
246.5
255.2
264.3
266.2
261.2
263.6
266.2
261.2
264.3
262.0
268.2
268.4
282.0
288.6
290.2
283.6
284.8
286.8
282.9
''281.4
294.7
297.4
316.0
321.0
325.2
321.2
334.9
347.4
345.0

18.0
16.2
18.7
20.9
22.6
22.1
29.9
29.1
23.3
21.6
21.6
23.1
25.6
30.0
29.3
29.1
26.5
34.0
36.5
36.8
32.0
35.3
44.6
48.9
47.8
24.8
22.5
26.5
25.9
22.1
24.9
20.9
27.1
19.9
19.3
20.2
16.0
23.0
16.5
21.3
19.7
34.6
37.0
31.6
31.8
32.2
37.2
32.7
28.4
27.0

354.4
348.0
341.8
349.9
342.1
340.3
338.3
340.4
338.2
338.5
334.5
342.1
335.2
327.3
322.9
316.1

12.9
14.3
14.2
15.5
14.6
15.3
18.2
17.7
13.0
20.0
11.3
12.2
9.9
11.6
11.5

9.7

13.5

9.5

9.9
12.4
13.0
14.0
16.4
17.1
17.8
20.5
25.7
27.8
29.9
31.7
33.7
35.3
35.9
36.5
36.6
35.4
34.7
34.6
34.0
34.7
36.0
35.6
36.4
36.2
36.7
37.6
39.4
40.7
40.9
40.8
41.7
42.8
43.0
43.3
43.7
44.4
44.9
45.4
43.9
43.3
44.1
43.1
43.2
45.1
49.0
51.3
52.7
52.7
54.4
55.4
55.6
55.7
55.8
53.2
51.3
52.7
52.8
51.9
52.5
54.5
57.7
60.6
61.7
64.4
66.3
66.3

Oneyear
Treasury
notes.

Due
from
Munici- Federal Federal
All
reserve
pal war- notes reserve other
rants.
(net). banks assets.
(net).

6.2
76
9.1

7.4
5.4
4.5
2 8
8.0

7.2
7.6
7.6
7.9
7.9
7.9
7.9
8.5

10.4
10.5
10.5
10.5
12.0
12.7
13.0
13.9
14.4
14.5
15.0
15.8

9.7
11.5
12.4
13.9
14.4
15.1
16.1
18.1
18.6
18.5
25.8
24.0
23.7
24.4
24.9
27.4
27.0
26.6
25.4
25.0
22.1
22.8
27.5
27.3
17.8
18.1
13.6
14.1
12.2

7.8
9.1
7.6
8 3
9.9
9.2
11.0
12.6
11 3
12.8
12.5
12.9
13.4
12.5
14.9
15 4
15.5
15.2
15.7
19.8
15.2
19.5
18.8
19.2
18.1
22 3
21.0
21.0
21.9

16.7
17.6
20.2
21.4
24.3
25.3
26.4
29.6
33.1
34.1
39.2
40.2
40.3
45.2
45.0
45.2

17.1
19.4
20.6
20.6
20.9
25.6
25.0
25.4
30.5
32.7
33.0
32.7
33.0
35.2
35.7
35.9

24.2
29.8
34.9
36.5
33.7
28.3
28.6
23.8
25.6
25.0
24.6
24.8
25 1
21.8
22.1
21.7

8.6

8.7
8.8
8.8
8.9
9.0
9.3
9.3
9.5

i.9

3.2
3.8

7.2
5.4
6.5
5.6
10.3
5.7
5.3
8.3
9 5
10.1
13.2
6.7
7.4
7 1
14 9
8.1
8.3
9.8
6.1
5.9
5.2
7.1
5.9
4.0

6.8
7.0
7.8
8.1
11.0
7.7

10 2
12.3
8.5
12 5
16.2
15.8
14 0
19.8
19 7
21.3
25.0
20.8
11.1
13.0

13.1

10 7
15.2
13.0
12 3
13.3
20.6
12 6
16.2
12.6
13 1
11.2
16.8
17.6

20.6
24 3
24.0
24.0
21.6
22.1
24 1
25.2
26.8
29.3
30.1
30.7
30.9
30.2
33.4
34.0
36.8
37.5
40.7
40.9
43.2
37 9
29 5
6.5
5.5
3.7
37
4.4
4.8
5.9
5.3
56
4.8
4.9
4.0
3.8
3.4
3.6
O Q
3.1
3.0

3.1

3.6

3.0
3.3

3.7
4.6
6.5
5.3
4.3
4.2

6.5
7.1
9.8
10.7
10.0
11.9
12.9
8.0

11.4
5.9
5 2
5.0

4.8
5.0
7.6
4.0
3.6

Aggregate
assets.

287.3
297 0
304 5
302.2
322 2
325.0
326 4
331.7
330.3
331.1
333.1
333 2
339.6
340.7
341.1
346.6
347.6
361.0
366.2
362. 4
360.2
357 5
371 2
370.3
381.4
366.4
365.3
367.8
371.1
377.0
377.4
374 1
382.4
389.9
388.2
403.4
406.1
417.7
411.4
414.3
415.8
427.8
429.9
432.7
446.2
471.8
485.3
485.3
482.1
489.3
490.8
491.1
499.1
507.6
511.3
517 8
514.0
513.4
509 6
513.5
519.4
522 6
521 6
530.0
523 3
526.2
527.5
519.7

113

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Comparative statement of the principal items of resources and liabilities of the Federal
reserve banks from the date of the first report, Nov. 20, 1914, to Nov. 24,1916—Con.
ASSETS—Continued.
[In millions of dollars.]

Date.

1916.
Apr. 28....
May 5
May 12....
May 19....
May 26....
June 2
June 9
June 1 6 . . .
June 2 3 . . .
June 3 0 . . .
July 7
July 14....
July 2 1 . . . .
July 2 8 . . . .
Aug. 4 . . . .
Aug. 1 1 . . .
Aug. 1 8 . . .
Aug. 2 5 . . .
Sept. 1 . . . .
Sept. 8 . . . .
Sept. 1 5 . . .
Sept. 2 2 . . .
Sept. 2 9 . . .
Oct.6
Oct. 1 3 . . . .
Oct. 2 0 . . . .
Oct. 2 7 . . . .
Nov. 3 . . . .
Nov. 1 0 . . .
Nov. 1 7 . . .
Nov. 2 4 . . .

Gold,
Bills
includreceiving 5
Other able dis- United
per cent lawful
States
redemp- money. counted bonds.
and
tion
bought.
fund.

311.2
306.6
312.2
326.6
337.1
346.4
360.6
368.0
373.6
376.7
385.9
390.2
363.5
364.8
365.2
366.9
372.9
372.4
351.8
369.7
377.5
378.4
387.2
387.0
394.3
384.3
398.0
407.2
406.8
435.6
460.0

12.0
10.3
7.9
17.7
22.0
13.8
18.5
14.0
14.5
27.8
37.4
10.7
14.3
17.1
12.2
11.6
17.5
12.8
14.1
28.1
8.4
8.1
8.3
14.5
11.7
11.0
10.4
7.3
7.8
17.0
18.4

69.1
68.0
69.2
72.0
73.1
73.4
78.4
85.4
89.7
92.3
92.1
105.1
114.3
111.1
109.9
109.0
106.9
109.2
105.7
107.3
110.3
111.6
106.6
101.1
99.5
104.1
107.2
104.8
110.3
117.5
122.6

Due
Onefrom
year
Munici- Federal, Federal
reserve
Treas- pal war- notes reserve
ury
rants.
banks
(net).
notes.
(net.)

45.8
50,1
51.3
51.8
51.9
52.0
52.2
52.9
52.9
52.9
52.6
52.6
49.7
48.6
48.1
46.7
47.0
46.8
46.8
45.9
46.9
47.6
46.5
44.4
42.6
41.3
40.5
40.5
38.9
39.1
39.4

3.8
3.8
3.8
3.8
3.8
4.2
4.2
4.2
4.2
4.2
4.5
4.5
7.2
7.9
7.9
8.4
7.9
8.2
8.2
9.1
9.0
8.0
6.9
8.8
10.5
11.7
11.4
11.4
11.3
11.2
11.2

36.9
39.2
40.3
44.5
45.0
36.6
23.1
22.1
21.6
22.8
25.2
27.4
27.7
27.2
27.4
28.0
27.8
27.9
21.3
21.2
23.7
24.1
24.1
29.0
31.5
32.5
29.9
24.1
20.7
18.6
22.2

21.6
26.3
26.0
26.5
26.4
24.1
23.9
24.4
23.0
23.2
24.1
20.8
20.0
20.3
20.4
20.1
19.9
21.2
20.9
19.3
20.0
16.1
14.2
14.9
15.3
15.2
16.8
17.7
17.6
14.3
15.4

14.7
17.3
15.8
19.4
16.5
15.3
17.7
21.4
19.3
20.4
20.4
20.0
12.0
12.6
19.9
16.4
21.1
21.6
35.6
28.7
28.9
29.3
31.4
26.2
30.1
30.6
33.2
34.8
35.1
59.8
43.2

All
other
assets.

Aggregate
assets.

4.5
4.1
4.6
6.0
9.5
8.9
5.2
5.5
4.4
4.6
4.1
8.3
4.8
5.5
4.4
3.7
3.2
3.5
3.0
3.3
3.0
8.5
7.5
3.0
2.7
2.6
3.7
3.1
2.4
6.1
2.6

519.6
525.7
531.1
568.3
585.3
574.7
583.8
597.9
603.2
624.9
646.3
639.6
613.5
615.1
615.4
610.8
624.2
623.6
607.4
632.6
627.7
631.7
632.7
628.9
638.2
633.3
651.1
650.9
650.9
719.2
735.0

LIABILITIES.
[In millions of dollars.]

Govern- Member
bank
Capital.
ment
deposits. deposits
(net).

Date.

1914.

18.1
18.0
18.0
18.0
18.0
18.0
18.0

Nov 20
Nov. 27
Dec. 4
Dec. 11
Dec. 18
Dec 24
Dec. 31
Jan. 8 . . .
Jan. 15
Jan. 22.
Jan. 29
Feb.5
Feb.12
Feb.19
Feb.26
Mar. 5
Mar. 12
Mar. 19
Mar. 26

1915.
. .
...

....

Federal
reserve
notes
(net).

227.1
249.3
251.0
251.0
248.0
249.8
256.0

1.2
2.7
4.0
3.4
3.9
3.8
3.8

18.0
18.0
18.4
20.4
35.1
35 8
3fi.O
36.1
36.0
36.1
36.1
36.1

267.4
277.2
284.2
279.5
284.1
285.0
285.5
290.3
287.9
288.0
288 6
288.2

1.9
1.8
1.9
2.3
3.0
4.2
4.9
5.3
6.4
7.0
8.4
8.9

Federal
reserve All other
bank
liabilinotes
ties.
in circulation.

::::::::::

114

REPORT OF THE COMPTROLLER OF THE CURRENCY.

sources and liabilities of the Federal
Comparative statement of the principal items of resources and liabilities of the Feder
20, 1914
reserve banks from the date of the first report, Nov. 201914, tot Nov. 24, 1916—Con.
N
24 1916C
LIABILITIES—Continued.
[In millions of dollars.]

Pate.

Apr. 2...,
Apr. 9...
Apr. 16..
Apr. 23...
Apr. 30..
May 7...,
May 14..
May 21...
May 28...
June 4 . .
June 1 1 . .
June 18..
June 25..
July 2 . . .
July 9...
July 16..
July 23..
July 30..
Aug. 6 . .
Aug. 13.
Aug. 20.
Aug. 27.
Sept. 3 . .
Sept. 10.
Sept.17.
Sept. 24.
Oct.l...
Oct. 8 . . .
Oct. 15..
Oct. 22..
Oct. 29-Nov. 5 . .
Nov. 12.
Nov. 19.
Nov. 26.
Dec. 3 . . .
Dec. 10..
Dec. 17..
Dec. 24..
Dec. 30..
Jan. 7 . . .
Jan. 14..
Jan. 2 1 . .
Jan. 28..
Feb. 4...
Feb. 11...
Feb. 18..
Feb. 25..
Mar. 3 . . .
Mar. 10..
Mar. 17..
Mar. 24..
Mar. 31..
Apr. 7...
Apr. 14..
Apr. 21..
Apr. 28..
MayS...
May 12..
May 19..
May 26..
June 2 . .
June 9 . .
June 16.
June 23.
June 30.
July 7...
July 14..
July 21..

Govern- Member
bank
ment
Capital.
deposits. deposits
(net).

1915.

7
53.4
54.0
54.1
54.2
54.2
54.2
54.2
54.2
54.1
54.1
54.1
54.1
54.2
1.3
54.3
54.3
54.7
54.7
54.7
54.7
54.7
54.7
54.7
54.7
54.8
54.8
54.8
54.8
54.8
54.8
54.8
54.9
54.9
54.9
54.9

15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0

293.9
294.0
294.1
297.2
294.8
293.3
295.5
295.0
292.0
288.3
299.6
299.4
311.3
297.9
295.8
297.6
301.1
306.2
306.0
301.9
310.1
316.9
312.3
328.1
316.9
329.9
324.7
326.8
328.8
340.4
343.6
346.1
359.4
385.0
398.0
393.0
390.3
397.9
398.6
400.0

54.9
54.9
54.9
54.9
54.9
54.9
54.9
54.9
54.9
55.0
54.9
54.9
54.9
54.9
54.9
54.9
54.8
54.9
54.8
54.9
54.9
54.9
54.9
54.9
54.9
54.9
54.9
55.2
55.2

23.8
26.9
28.1
27.8
29.9
26.9
29.0
32.5
36.1
30.6
32.4
35.1
38.4
37.0
34.7
35.3
40.7
40.4
38.2
40.5
44.1
50.0
51. G
55.7
64.5
101.1
114.4
97.5
54.3

407.3
413.7
416.6
424.7
419.1
422.0
416.5
416.6
418.7
426.3
423.3
428.8
420.0
423.5
426.5
417.3
413.0
419.9
427.8
463.0
476.7
460.4
467.8
477.3
472.6
457.5
465.1
474.9
492.0

36.2
36.2
36.7

1916.

Federal
reserve
notes
(net).

9.6
10.5
10.8
10.9
11.0
11.2
11.2
10.9
10.9
11.4
12.1
12.1
12.6
12.8
13.3
14.2
14.5
14.9
15.4
15.7
15.8
16.7
17.7
17.5
16.6
15.4
14.3
15.2
14.8
14.8
13.9
13.7
13.0
13.0
13.4
14.0
14.7
14.5
14.7
13.5
13.0
12.0
11.6
10.3
10.0
9.5
9.1
9.4
9.6
10.2
10.2
10.0
8.9
9.5
9.5
9.6
8.8
8.6
8.4
8.0
7.7
7.5
7.6
8.0
9.2
9.4
10.0
10.1
10.1

Federal
reserve
Allother
bank
liabilinotes
ties.
in circulation.

1.8
2.1
3.1
5.5
2.4
3.1
3.6
5.3
4.6
3.3
1.6
2.1
1.9
1.4
1.7
1.7
2.2
2.2
1.6
3.5
3.1
2.9
2.7
2.7
2.6
2.5
2.8
2.6
3.1
4.0
4.0
4.1
8.5
7.2
7.0
7.6
7.7

0.4
.7
1.1
1.0
1.2
1.4
2.0
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7

KEPOET OF THE COMPTROLLER OF THE CURRENCY.

115

Comparative statement of the principal items of resources and liabilities of the Federal
reserve banks from the date of the first report, Nov. 20, 1914, to Nov. 24, 1916—Cca.
LIABILITIES—Continued.
[In millions of dollars.]

Date.

July 28
Aug. 4
Aug. 11
Aug. 18
Aug. 26
Sept.l
Sept.8
Sept.15
Sept. 22
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Oct. 27
Nov. 3
Nov. 10
Nov.17
Nov.24

1916.

Capital.

55.2
55.2
65.1
55.1
55.4
55.4
55.4
55.4
55.4
55.4
55.7
55.7
55.7
55.7
55.7
55.7
55.7
55.7

Govern- Member
bank
ment
deposits. deposits
(net).

56.5
56.6
53.3
49.7
50.1
50.9
44.3
40.2
39.9
39.0
34.0
24.7
26.1
30.0
28.7
23.3
25.2
26.3

491.3
490.6
489.2
506.1
502.4
484.7
514.2
514.3
518.5
521.7
526.0
544.0
538.1
551.9
552.4
556.5
622.2
637.1

Federal
reserve
notes
(net).

10.1
11.0
11.2
12.3
13.7
14.4
16.1
14.2
14.6
13.2
11.8
12.3
11.9
12.0
12.7
13.9
14.5
14.3

Federal
reserve All other
bank
liabilinotes
ties.
in circulation.

1.7
1.7
1.7
1.7
1.7
1.7
2.3
3.2
2.9
3.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0

0.3
.3
.3
.3
.3
.3
.3
.4
.4
.4
.4
.5
.5
.5
.4
.5

FEDERAL RESERVE NOTES.

In the weekly statements issued by the Federal Keserve Board, in
addition to showing in detail the assets and liabilities of the Federal
reserve banks, the volume of Federal reserve notes issued, the amount
of gold and other lawful money deposited with the Federal reserve
agents to retire outstanding notes, and the net amount of notes outstanding are reported.
NOTE.—It is interesting to note the element of elasticity in the new circulating
medium, and how responding to the demands of business, the volume of Federal
reserve notes outstanding, as shown in the weekly statements, reached its high point
early in the year when on January 21 it was reported as $220,380,000.
The demand for currency being light during the early summer months, the volume
of notes gradually declined through the ordinary process of redemption until on July
28 the amount stood at $174,023,000.
Responding again to business requirements, the amount of Federal reserve notes in
circulation is shown at its highest point on November 24, 1916, the date of the last
report, when it reached $258,081,000.

In the table following are shown the amounts issued, gold and
lawful money deposited, and net amount of notes in circulation at the
close of each week from November 20, 1914, to November 24, 1916.

116

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Federal reserve notes—Weekly statement of Federal reserve notes in circulation (amount
issued by Federal reserve agents to the hanks, less "unfit" notes returned for redemption),
amount of gold and lawful money deposited with Federal reserve agents for retirement of
outstanding notes, and net amount of notes in circulation from Nov. 20, 1914, to Nov.
U, 1916.

Date.

1914.
Nov. 20
27
Dec. 4
11
18
24
31
1915.
Jan. 8
15
22
29
Feb. 5
12
19
26
Mar. 5
12
19
26
Apr. 2
9
16
23
30
21
28
June 4
11
18
25
July 2
9
16
23
30
Aug. 6
13
20
27
Sept. 3
10
17
24
Oct. 1
8
15
22
29
Nov. 5
12
19

Federal reserve notes
in circulation.

Gold and
lawful
money deposited with
Federal reserve agents.

Federal reserve notes
in circulation (net
amount). 1

$1,215,000
2,700,000
5,105,000
6,702,000
8,869,000
12,412,000
16,027,000

$1,135,000
3,210,000
5,013,000
8,565,000
12,252,000

$1,215,000
2,700,000
3,970,000
3,492,000
3,856,000
3,847,000
3,775,000

16,530,000
16,804,000
17,106,000
17,679,000
18,702,000
20,106,000
24,632,000
26,172,000
29,805,000
33,965,000
36,846,000
39,858,000
43,376,000
44,828,000
48,461,000
50,074,000
53,353,000
55,042,000
59,829,000
61,950,000
65,612,000
69,704,000
73,529,000
79,386,000
82,961,000
84,581,000
89,131,000
93,361,000
94,131>000
97,831,000
101,731,000
102,571,000
107,691,000
109,901,000
114,531,000
119,851,000
124,000,000
133,060,000
141,000,000
148,590,000
153,790,000
159,280,000
168,370,000
170,310,000
179,335,000
183,275,000

14,676,000
14,966,000
15,193,000
15,401,000
15,702,000
15,921,000
19,702,000
20,844,000
23,413,000
26,961,000
28,359,000
30,969,000
33,779,000
34,379,000
37,694,000
39,185,000
42,315,000
43,845,000
48,605,000
51,091,000
54,691,000
58,291,000
61,431,000
65,871,000
68,996,000
70,616,000
74,246,000
77,656,000
78,126,000
81,191,000
84,676,000
85,806,000
89,726,000
90,986,000
94,766,000
99,356,000
104,541,000
115,180,000
123,301,000
130,620,000
136,210,000
142,440,000
151,830,000
154,005,000
163,155,000
166,755,000

1,854,000
1,838,000
1,913,000
2,278,000
3,000,000
4,185,000
4,930,000
5,328,000
6,392,000
7,004,000
8,487,000
8,889,000
9,597,000
10,449,000
10,767,000
10,889,000
11,038,000
11,197,000
11,224,000
10,859,000
10,921,000
11,413,000
12,098,000
12,100,000
12,617,000
12,797,000
13,375,000
14,242,000
14,521,000
14,965,000
15,420,000
15,723,000
15,847,000
16,738,000
17,670,000
17,527,000
16,562,000
15,348,000
14,295,000
15,225,000
14,791,000
14,809,000
13,918,000
13,661,000
13,007,000
12,923,000

Date.

Federal reserve notes
in circulation.

Gold and
Federal relawful
money de- serve notes
posited with in circulation (net1
Fe4eral reserve agents. amount).

1915.
Nov. 26 $187,815,000 $171,095,000
Dec. 3 190,985,000
174,147,000
10 200,265,000 182,912,000
17 205,205,000 187,840,000
23 211,735,000 194,400,000
30 214,125,000 197,450,000
1916.
Jan. 7
14
21
28
Feb. 4
11
18
25
Mar. 3
10
17
24
31

Ap, J

21
28
5
12
19
26
June 2
9
16
23
30
July 7
14
21
28
May

Aug. J

18
25
Sept. 1
8
15
22
29
Oct. 6
13
20
27
Nov. 3
10
17
24

215,525,000
219,030,000
220,380,000
218,945,000
217,777,000
211,661,000
206,978,000
196,992,000
191,303,000
191,678,000
191,165,000
190,903,000
190,232,000
190,536,000
186,761,000
186,643,000
185,424,000
187,452,000
187,166,000
186,000,000
187,248,000
184,217,000
179,471,000
179,802,000
176,955,000
176,168,000
179,783,000
179,358,000
175,219,000
174,023,000
175,551,000
175,602,000
176,620,000
179,838,000
194,645,000
199,218,000
202,530,000
209,778,000
213,967,000
220,490,000
225,882,000
230,803,000
234,876,000
240,534,000
247,873,000
255,702,000
258,081,000

199,690,000
204,159,000
206,029,000
205,380,000
205,112,000
199,989,000
195,705,000
185,775,000
179,734,000
179,474,000
179,272,000
178,706,000
179,281,000
180,578,000
176,883,000
176,433,000
175,847,000
178,042,000
177,599,000
176,693,000
178,116,000
175,205,000
170,409,000
170,875,000
166,823,000
165,986,000
168,806,000
168,241,000
163,932,000
162,776,000
162,184,000
162,085,000
162,036,000
163,834,000
177,035,000
181,029,000
185,161,000
193,110,000
197,572,000
204,476,000
210,088,000
215,329,000
219,502,000
225,060,000
231,339,000
238,458,000
241,566,000

$13,385,000
13,969,000
14,686,000
14,461,000
14,670,000
13,486,000
12,982,000
11,948,000
11,571,000
10,313,000
9,966,000
9,557,000
9,089,000
9,386,000
9,635,000
10,178,000
10,203,000
9,977,000
8,903,000
9,500,000
9,511,000
9,617,000
8,851,000
8,573,000
8,402,000
8,018,000
7,706,000
7,512,000
7,593,000
8,003,000
9,228,000
9,440,000
9,992,000
10,098,000
10,120,000
10,122,000
11,029,000
11,212,000
12,295,000
13,733,000
14,416,000
16,076,000
14,223,000
14,605,000
13,216,000
11,782,000
12,316,000
11,896,000
11,966,000
12,627,000
13,886,000
14,468,000
14,296,000

i Net liability on account of Federal reserve notes from June 18, 1915.
F E D E R A L R E S E R V E NOTE ISSUES AND

REDEMPTIONS.

The operations of the Federal Reserve Issue and Redemption
Division of this office show a continued call for Federal reserve notes,
which are issuable upon the deposit with the local Federal reserve
agents of notes, bills, and securities described in the Federal Reserve
act (which have been rediscounted for the member banks). Against

REPORT OF THE COMPTROLLER OF THE CURRENCY.

117

Federal reserve notes so issued there must be a gold reserve of not
less than 40 per cent.
During the months of August, September, and October, 1916,
the volume of Federal reserve notes outstanding increased over
$65,000,000, and on October 31 the total amount in circulation was
$238,496,920 of which $223,523,070 were secured by the deposit with
the Federal reserve agent of a like amount of gold and lawful money
and only $14,973,850 by commercial paper.
Up to October 31, 1916, Federal reserve notes to the amount of
$897,020,000 were printed, $419,200,000 of which were shipped to
Federal reserve agents and United States subtreasuries, and $477,820,000 held in the reserve vault available for shipment as required.
The average life of national currency has been computed to be about
2\ years, but notes begin to be returned for destruction as unfit in
about six months after issue. At the end of the year, or up to October 31, Federal reserve notes to the amount of $81,734,430 had been
returned for destruction as "unfit for circulation."
Detailed information relative to issues and redemptions of Federal
reserve notes, by banks and denominations, is given in the following
tables:
Statement of Federal reserve notes, by denominations, printed, shipped to Federal reserve
agents, and United States subtreasuries, and on hand in reserve vault, Oct. 31,1916.
Bank.
Boston:
Printed
Shipped
On hand
New York:
Printed
Shipped
On hand
Philadelphia:
Printed
Shipped
On hand
Cleveland:
Printed
Shipped
On hand
Richmond:
Printed
Shipped
On hand
Atlanta:
Printed
Shipped
On hand
Chicago:
Printed
Shipped
On hand
St. Louis:
Printed
Shipped
On hand

Fives.

Tens.

Twenties.

Fifties.

Hundreds.

Total.

$18,580,000
9,080,000

$18,000,000
10,440,000

$6,800,000
1,760,000

$2,600,000
1,600,000

$4,400,000
2,000,000

$50,380,000
24,880,000

9,500,000

7,560,000

5,040,000

1,000,000

2,400,000

25,500,000

128,080,000
54,600,000

157,080,000
60,520,000

63,680,000
22,480,000

7,600,000
3,200,000

11,200,000
7,600,000

367,640,000
148,400,000

73,480,000

96,560,000

41,200,000

4,400,000

3,600,000

219,240,000

20,000,000
6,000,000

7,200,000
3,600,000

2,600,000

5,200,000

50,000,000
15,480,000

14,000,000

15,000,000
5,880,000
9,120,000

3,600,000

2,600,000

5,200,000

34,520,000

17,680,000
3,120,000

15,120,000
4,040,000

10,000,000
5,600,000

2,400,000
1,200,000

4,800,000
1,200,000

50,000,000
15,160,000

14,560,000

11,080,000

4,400,000

1,200,000

3,600,000

34,840,000

10,000,000
7,300,000

10,520,000
6,880,000

7,680,000
6,720,000

3,400,000
1,800,000

2,400,000
800,000

34,000,000
23,500,000

2,700,000

3,640,000

960,000

1,600,000

10,500,000

15,800,000
10,000,000

17,000,000
12,200,000

9,600,000
8,000,000

1,800,000
1,200,000

2,000,000
1,200,000

46,200,000
32,600,000

5,800,000

4,800,000

1,600,000

600,000

800,000

• 13,600,000

26,800,000
10,780,000

19,240,000
5,200,000

19,760,000
4,800,000

3,200,000
1,200,000

6,000,000
2,400,000

75,000,000
24,380,000

16,020,000

14,040,000

14,960,000

2,000,000

3,600,000

50,620,000

13,960,000
5,680,000

10,960,000
7,360,000

5,520,000
5,120,000

1,400,000
400,000

3,200,000

35,040,000
18,560,000

8,280,000

3,600,000

400,000

1,000,000

3,200,000

16,480,000

118

BEPOBT OF THE COMPTROLLER OF THE CTJBBENCY.

Statement of Federal reserve notes, by denominations, printed, shipped to Federal reserve
agents, and United States subtreasuries, and on hand in reserve vault, Oct. 31, 1916—
Continued.
Bank.

Fives.

$15,000,000
8,640,000

Minneapolis:
Printed
Shipped

Tens.

$10,760,000
7,080,000

$7,440,000
4,480,000

$800,000
400,000

$2,000,000
400,000

$36,000,000
21,000,000

Twenties.

Fifties.

Hundreds.

Total.

On hand
Kansas City:
Printed
Shipped

6,360,000

3,680,000

2,960,000

400,000

• 1,600,000

15,000,000

20,400,000
12,140,000

17,760,000
7,600,000

7,840,000
5,280,000

2,000,000
800,000

2,000,000
400,000

50,000,000
26,220,000

On hand

8,260,000

10,160,000

2,560,000

1,200,000

1,600,000

23,780,000

11,240,000
9,200,000

12,400,000
11,400,000

12,160,000
9,920,000

2,400,000
2,400,000

40,600,000
35,320,000

Dallas:
Printed
Shipped
On hand

2,040,000

1,000,000

2,240,000

Ban Francisco:
Printed
Shipped

14,160,000
7,340,000

12,760,000
6,760,000

11,840,000
6,800,000

11,000,000
6,000,000

12,400,000
6,800,000

62,160,000
33,700,000

On hand

6,820,000

6,000,000

5,040,000

5,000,000

5,600,000

28,460,000

311,700,000
143,880,000

316,600,000
145,360,000

169,520,000
84,560,000

41,200,000
20,200,000

58,000,000
25,200,000

897,020,000
419,200,000

167,820,000

171,240,000

84,960,000

21,000,000

32,800,000

477,820,000

5,280,000

Vault balance Oct.
SI, 1916:
Total printed
Total shipped
Total
hand

Federal reserve notes issued, by denominations, through the Federal reserve agents to the
banks, also the amounts retired and outstanding Oct. 31,1916.
Bank.
Boston:
Issued
Retired
Outstanding
New York:
Issued
Retired
Outstanding
Philadelphia:
Issued
Retired
Outstanding
Cleveland:
Issued
Retired
Outstanding
Richmond:
Retired
Outstanding
Atlanta:
Issued
Retired
Outstanding

Fives.

Tens.

$6,926,600 $8,045,600
2,815,160 2,850,205

Fifties.

Hundreds.

Total.

$728,200
219,800

$642,000
150,850

$1,082,300
268,000

$17,424,700
6,304,015

Twenties.

4,111,440

5,195,395

508,400

491,150

814,300

11,120,685

52,250,350
22,733,165

53,367,800
19,702,760

18,438,400
4,452,060

2,202,450
234,000

6,014,000
920,200

132,273,000
48,042,185

29,517,185

33,665,040

13,986,340

1,968,450

5,093,800

84,230,815

5,652,700
3,181,855

5,254,800
2,206,305

3 630 200
676,400

14,537,700
6,064,560

2,470,845

3,048,495

2,953,800

8,473,140

2/460,000
1,052,510

3,400,000
1,079,865

4,720,000
922,020

750,000
54,350

530,000
37,400

11,860,000
3,146,145

1,407,490

2,320,135

3,797,980

695,650

492,600

8,713,855

7,619,300
3,149,470

8,107,700
2,930,250

7,584,400
2,418,210

1,837,200
942,100

717,000
367,300

25,865,600
9,807,330

4,469,830

5,177,450

5,166,190

895,100

349,700

16,058,270

10,608,050
4,246,815

11,579,300
3,759,305

8,558,480
2,137,980

1,460,450
517,750

1,640,900
644,600

33,847,180
11,306,450

6,361,235

7,819,995

6,420,500

942,700

996,300

22,540,730

EEPOET OF THE COMPTKOLLEB OF THE CTJEBENCY.

119

Federal reserve notes issued, by denominations, through the Federal reserve agents to the
banks, also the amounts retired and outstanding, Oct. 31,1916—Continued.
Bank.

Fives.

Chicago:

Fifties.

Twenties.

Hundreds.

Total.

. . . . 1,700,905

$3,540,000

$200,000
69,100

$800,000
174,700

$200,000
21,450

$400,000
3,800

$5,140,000
1,969,955

1,839,095

130,900

625,300

178,550

396,200

3,170,045

. . . . . 6,212,950
2,239,605

6,262,940
1,114,855

4,732,160
351,260

200,050
5,650

17,408,100
3,711,370

3,973,345

5,148,085

4,380,900

194,400

13,696,730

. .. 7,742,000

1,600,135

6,575,000
1,110,810

4,415,000
384,010

180,000
51,800

270,000
42,300

19,182,000
3,189,055

227,700

15,992,945

Retired
Outstanding
St. Louis:
Issued
Retired
Outstanding

Tens.

Minneapolis:
Issued
Retired
Outstanding.

6,141,865

5,464,190

4,030,990

128,200

Kansas City:
Issued
Retired
Outstanding.

10,807,000
2,802,040

6,886,000
1,147,600

4,192,000
285,400

895,000
311,000

22,780,000
4,546,040

8,004,960

5,738,400

3,906,600

584,000

18,233,960

Dallas:
Issued
Retired.
Outstanding

8,494,750
3,226,930

13,280,400
4,429,365

11,188,600
2,884,300

1,955,000
767,550

1,845,000
204,100

36,763,750
11,512,245

5,267,820

8,851,035

8,304,300

1,187,450

1,640,900

25,251,505

4,660,000
2, 732,110

3,240,000
1,479,600

3,920,000
175,900

1,200,000
11,150

2,400,000
7,000

15,420,000
4,405,760

1,927,890

1,760,400

3,744,100 ! 1,183,850

2,393,000

11,014,240

11,522,150
3,067,650

14,899,200
2,494,700

352,502,030
114,005,110

57,825,400 j 8,454,500

12,404,500

238,496,920

San Francisco:
Retired
Outstanding
RECAPITULATION.

126,973,700 126,199,540
51,480,700 41,880,020

Total issued
Total retired
Total outstanding.

75,493,000

84,319,520

72,907,440
15,082,040
i

Mutilated Federal reserve notes, by denominations, received for destruction, destroyed, and
on hand in vault Oct. 31, 1916.
Bank.

Fives.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Tens.

Twenties, j

Fifties.

Hundreds.

Total.

$2,583,560 $2,574,605
22,643,175 19,615,440
2,769,155 1,991,505
1,052,510 1,079,865
2,250,170 1, 702,550
1,642, 765 1,126,505
1,060,855
69,100
1,406,655
611,915
220,810
363,135
1,258,040
407,600
1,942,180 1,273,965
932,110
399,600

$191,600
3,613,820
566,200
922,020
1,393,810
520,000
174,100
179,100
99,010
91,400
545,700
175,900

$143,850
231,550

$245,700
906,200

54,350
339,900
42,300
21,200
5,600
1,800
16,000
41,900
11,150

37,400
105,300
62,700
3,700

39,904,310 31,073,460
Total received
39,457,810 30,665,710
Total destroyed
Balance on hand Oct. 31,1916.
446,500
407,750

8,472,660
8,365,560

909,600
881,850

1,374,400
1,330,100

81,734,430
80,701,030

107,100

27,750

44,300

1,033,400

2,300

4,100
7,000

$5,739,315
47,010,185
5,326,860
3,146,145
5,791,730
3,394,270
1,328,955
2,203,270
687,055
1,773,040
3,807,845
1,525, 760

FEDERAL RESERVE BANK CURRENCY.

In addition to Federal reserve notes, the Federal reserve banks
may also7issue what has been designated as "Federal reserve bank
currency. ' This currency is of the same tenor and effect and is

120

REPORT OF THE COMPTROLLER OF THE CURRENCY.

issued under the same terms and conditions as national-bank notes,
except that its volume is not limited to the amount of capital stock
of the issuing bank.
The notes issued to the banks are secured by deposits of Government bonds bearing the circulation privilege, acquired in the open
market or taken over from national banks desiring to reduce their
circulation.
Federal reserve bank currency, by denominations, printed, issued, and on hand in vault
Oct. 31, 1916.
Bank.

Fives.

Tens.

Twenties.

Fifties.

Hundreds.

Total.

Boston:
Printed
Issued
On hand .

. . . .
=

New York:
Printed
Issued
On hand
Philadelphia:
Printed
Issued
On hand
Cleveland:
Printed
Issued
On hand
Richmond:
Printed
Issued
On hand
Atlanta:
Printed
Issued
On hand
Chicago:
Printed
Issued
On hand

$320,000

$440,000

$240,000

$1,000,000

320,000

440,000

240,000

1,000,000

2,000,000

5,000,000

1,000,000

2,000,000

5,000,000

200,000

,400,000

400,000

1,000,000

200,000

400,000

1,000,000

640,000

480,000

$400,000

2,000,000

640,000

480,000

400,000

2,000,000

1,600,000

1,800,000

1,600,000

5,000,000

1,600,000

1,800,000

1,600,000

5,000,000

1,320,000

2,680,000

4,000,000

1,320,000

2,680,000

4,000,000

2,900,000
1,434,900

4,000,000
4,000,000

St. Louis:
Printed
Issued
On hand
Minneapolis:
Printed
Issued
On hand
Kansas City:
Printed..
Issued
On hand
Dallas:
Printed
Issued
On hand

640,000
640,000

1,400,000
1,400,000

9,540,000
8,054,980

19,920

1,465,100

2,640,000
2,620,080

1,485,020

960,000
960,000

3,000,000
3,000,000

EEPOBT OF THE COMPTROLLER OF THE OURREKCY.

121

Federal reserve bank currency, by denominations, printed, issued, and on hand in vault
Oct. SI, 1916—Continued.
Bank.

Fives.

Tens.

Twenties.

Fifties.

Hundreds.

Total.

•

San Francisco:
Printed
Issued
On hand

$1,680,000

$1,960,000

$1,360,000

$5,000,000

1,680,000

1,960,000

1,360,000

5,000,000

10,300,000
2,074,900

15,160,000
5.400,000

9,680,000
3,580,080

$400,000

35,540,000
11,054,980

8,225,100

9,760,000

6,099,920

400,000

24,485,020

EECAPITULATION.

Total printed
Total issued
Total on hand

LEGISLATION BY THE PRESENT CONGRESS.
During the present Congress the Federal laws relating to banks,
banking and the currency, have been materially amended and important new legislation affecting banks written into the statute books.
In addition to the amendments to the Federal reserve and national
bank act, changes have been made in the laws relating to the income
tax on banks; issuance of certificates against gold bullion and foreign
gold coin, and the act of October 15, 1914, supplementing the laws
against unlawful restraints and monopolies in relation to interlocking
directorates.
Under date of July 17, 1916, the act was approved "to provide
capital for agricultural development, to create standard forms of
investment based upon farm mortgage, to equalize rates of interest
upon farm loans, to furnish a market for United States bonds, to
create Government depositaries and financial agents for the United
States and for other purposes.7' There was also approved under date
of August 29, 1916, the act "relating to bills of lading in interstate
and foreign commerce.'7
The Federal reserve act approved December 23, 1913, was amended
on September 7, 1916, as follows (changes and additions to the law
in italics):
AMENDMENTS TO FEDERAL RESERVE ACT.

At the end of section eleven insert a new clause as follows:
"(m) Upon the affirmative vote of not less than Jive of its members the Federal Reserve
Board shall have power, from time to time, by general ruling, covering all districts alike,
to permit member banks to carry in the Federal reserve banks of their respective districts
any portion 1of their reserves now required by section nineteen of this Act to be held in their
own vaults. '
That section thirteen be, and is hereby, amended to read as follows:
"Any Federal reserve bank may receive from any of its member banks, and from the
United States, deposits of current funds in lawful money, national-bank notes, Federal
reserve notes, or checks, and drafts, payable upon presentation, and also, for collection, maturing bills; or solely for purposes of exchange or of collection, may receive
from other Federal reserve banks deposits of current funds in lawful money, nationalbank notes, or checks upon other Federal reserve banks, and checks and drafts, payable upon presentation within its district, and maturing bills payable within its district.
"Upon the indorsement of any of its member banks, which shall be deemed a waiver
of demand, notice and protest by such bank as to its own indorsement exclusively, any
Federal reserve bank may discount notes, drafts, and bills of exchange arising out
of actual commercial transactions; that is, notes, drafts, and bills of exchange issued
or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which
have been used, or are to be used, for such purposes, the Federal .Reserve Board to

122

REPORT OF THE COMPTROLLER OF THE CURRENCY.

have the right to determine or define the character of the paper thus eligible for discount, within the meaning of this Act. Nothing in this Act contained shall be construed to prohibit such notes, drafts, and bills of exchange, secured by staple agricultural products, or other goods, wares, or merchandise from being eligible for such
discount; but such definition shall not include notes, drafts, or bills covering merely
investments or issued or drawn for the purpose of carrying or trading in stocks, bonds,
or other investment securities, except bonds and notes of the Government of the
United States. Notes, drafts, and bills admitted to discount under the terms of this
paragraph must have a maturity at the time of discount of not more than ninety days,
exclusive of days of grace: Provided, That notes, drafts, and bills drawn or issued for
agricultural purposes or based on live stock and having a maturity not exceeding six
months, exclusive of days of grace, may be discounted in an amount to be limited to
a percentage of the assets of the Federal reserve bank, to be ascertained and fixed by
the Federal Reserve Board.
"The aggregate of such notes, drafts, and bills bearing the signature or indorsement
of any one borrower, whether a person, company, firm, or corporation, rediscounted
for any one bank shall at no time exceed ten per centum of the unimpaired capital
and surplus of said bank; but this restriction shall not apply to the discount of bills of
exchange drawn in good faith against actually existing values.
" Any Federal reserve bank may discount acceptances of the hinds hereinafter described, which have a maturity at the time of discount of not more than three months'
sight, exclusive of days oj grace, and which are indorsed by at least one member bank.

"Any member bank may accept drafts or bills of exchange drawn upon it having

not more than six months' sight to run, exclusive of days of grace, which grow out of
transactions involving the importation or exportation of goods; or which grow out of
transactions involving the domestic shipment of goods provided shipping documents
conveying or securing title are attached at the time of acceptance; or which are secured^ at
the time of acceptance by a warehouse receipt or other such document conveying or securing
title covering readily marketable staples. No member bank shall accept, whether in a
foreign or domestic transaction, for any one person, company, firm, or corporation to an
amount equal at any time in the aggregate to more than ten per cent of its paid-up and
unimpaired capital stock and surplus unless the bank is secured either by attached documents or by some other actual security growing out of the same transaction as the accept-

ance and no bank shall accept such bills to an amount equal at any time in the aggregate to more than one-half of its paid-up and unimpaired capital stock and surplus.

"Any Federal reserve bank may make advances to its memberJbanks on their promissory
notes for a'periodnot exceedingfifteendays at rates to be established by such Federal reserve
banks, subject to the review and determination of the Federal Reserve Board, provided such
promissory notes are secured by such notes, drafts, bills of exchange, or bankers1 acceptances
as are eligible for rediscount or for purchase by Federal reserve banks under the provisions
of this Act, or by the deposit or pledge of bonds or notes of the United States."

Section fifty-two hundred and two of the Revised Statutes of the United States
is hereby amended so as to read as follows: "No national banking association shall
at any time be indebted, or in any way liable, to an amount exceeding the amount
of its capital stock at such time actually paid in and remaining undiminished by
losses or otherwise, except on account of demands of the nature following:
"First. Notes of circulation.
"Second. Moneys deposited with or collected by the association.
"Third. Bills of exchange or drafts drawn against money actually on deposit to
the credit of the association, or due thereto.
"Fourth. Liabilities to the stockholders of the association for dividends and reserve
profits.
"Fifth. Liabilities incurred under the provisions of the Federal Reserve Act.
"The discount and rediscount and the purchase and sale by any Federal reserve
bank of any bills receivable and of domestic and foreign bills of exchange, and of
acceptances authorized by this Act, shall be subject to such restrictions, limitations,
and regulations as may be imposed by the Federal Reserve Board.
'' That in addition to the powers now vested by law in national banking associations
organized under the laws of the United States any such association located and doing business in any place the population of which does not exceed five thousand inhabitants, as
shown by the last preceding decennial census, may, under such rules and regulations as
may be prescribed by the Comptroller of the Currency, act as the agent for any fire, life,
or other insurance company authorized by the authorities of the State in which said bank
is located to do business in said State, by soliciting and selling insurance and collecting
premiums on policies issued by such company; and may receive for services so rendered
such fees or commissions as may be agreed upon between the said association and the insurance company for which it may act as agent; and may also act as the broker or agent for

REPORT OF THE COMPTROLLER OF THE CURRENCY.

123

others in making or procuring loans on real estate located within one hundred miles of the
place in which said bank may be located, receiving for such services a reasonable fee or
commission: Provided, however, That no such bank shall in any case guarantee either
the principal or interest of any such loans or assume or guarantee the payment of any
premium on insurance policies issued through its agency by its principal: And provided
further, That the bank shall not guarantee the truth of any statement made by an assured
in filing his application for insurance.
"Any member bank may accept drafts or bills of exchange drawn upon it having not
more than three months' sight to run, exclusive oj days of grace, drawn under regulations
to be prescribed by the Federal Reserve Board by banks or bankers in foreign countries or
dependencies or insular possessions of the United States for the purpose of furnishing
dollar exchange as required by the usages of trade in the respective countries, dependencies,
or insular possessions. Such drafts or bills may be acquired by Federal reserve banks in
such amounts and subject to such regulations, restrictions, and limitations as may be
prescribed by the Federal Reserve Board: Provided, however, That no member bank shall
accept such drafts or bills of exchange referred to in this paragraph for any one bank to an
amount exceeding in the aggregate ten per centum of the paid-up and unimpaired capital
and surplus of the accepting bank unless the draft or bill of exchange is accompanied by
documents conveying or securing title or by some other adequate security: Providedfurther,
That no member bank shall accept such drafts or bills in an amount exceeding at any time
the aggregate of one-half of its paid-up and unimpaired capital and surplus."
That subsection (e) of section fourteen, be, and is hereby, amended to read as
follows:
" (e) To establish accounts with other Federal reserve banks for exchange purposes
and, with the consent of the Federal Reserve Board, to open and maintain accounts
in foreign countries, appoint correspondents, and establish agencies in such countries
wheresoever it may deem best for the purpose of purchasing, selling, and collecting
bills of exchange, and to buy and sell, with or without its indorsement, through such
correspondents or agencies bills of exchange arising out of actual commercial transactions which have not more than ninety days to run, exclusive of days of grace, and
which bear the signature of two or more responsible parties, and, with the consent of
the Federal Reserve Board, to open and maintain banking accounts for such foreign correspondents or agencies."
That the second paragraph of section sixteen be, and is hereby, amended to read
as follows:
"Any Federal reserve bank may make application to the local Federal reserve
agent for such amount of the Federal reserve notes hereinbefore provided for as it may
require. Such application shall be accompanied with a tender to the local Federal
reserve agent of collateral in amount equal to the sum of the Federal reserve notes
thus applied for and issued pursuant to such application. The collateral security
thus offered shall be notes, drafts, bills of exchange, or acceptances rediscounted under
the provisions of section thirteen of this Act, or bills of exchange indorsed by a member
bank of any Federal reserve district and purchased under the provisions of section fourteen of this Act, or bankers' acceptances purchased under the provisions of said section
fourteen. The Federal reserve agent shall each day notify the Federal Reserve
Board of all issues and withdrawals of Federal reserve notes to and by the Federal
reserve bank to which he is accredited. The said Federal Reserve Board may at
any time call upon a Federal reserve bank for additional security to protect the
Federal reserve notes issued to it."
That section twenty-four be, and is hereby, amended to read as follows:
"SEC. 24. Any national banking association not situated in a central reserve city
may make loans secured by improved and unencumbered farm land situated within
its Federal reserve district or within a radius^ of one hundred miles of the place in which
such bank is located, irrespective of district linesx and may also make loans secured by
improved and unencumbered real estate located within one hundred miles of the place in
which such bank is located, irrespective of district lines; but no loan made upon the security of such farm land shall be made for a longer time than five years, and no loan made
upon the security of such real estate as distinguished from farm land shall be made for a
longer time than one year nor shall the amount of any such loan, whether upon such farm
land or upon such real estate, exceedfiftyper centum of the actual value of the property offered as security. Any such bank may make such loans, whether secured by
suchfarm land or such real estate, in an aggregate sum equal to twenty-five per centum
of its capital and surplus or to one-third of its time deposits and such banks may continue hereafter as heretofore to receive time deposits and to pay interest on the same.
"The Federal Reserve Board shall have power from time to time to add to the list
of cities in which national banks shall not be permitted to make loans secured upon
real estate in the manner described in this section."
63366°—17 -9

124

REPOBT OF THE COMPTROLLER OF THE CURRENCY.

That section twenty-five be, and is hereby, amended to read as follows:
"SEC. 25. Any national banking association possessing a capital and surplus of
$1,000,000 or more may file application with the Federal Reserve Board for permission
to exercise, upon such conditions and under such regulations as may be prescribed by
the said board, either or both of the following powers:
" First. To establish branches in foreign countries or dependencies or insular possessions of the United States for the furtherance of the foreign commerce of the United
States, and to act if required to do so as fiscal agents of the United States.
11
Second. To invest an amount not exceeding in the aggregate ten per centum of its
paid-in capital stock and surplus in the stock of one or more banks or corporations chartered
or incorporated under the laws of the United States or of any State thereof, and principally
engaged in international or foreign banking, or banking in a dependency or insular possession of the United States either directly or through the agency, ownership, or control of local
institutions in foreign countries, or in such dependencies or insular possessions.
"Such application shall specify the name and capital of the banking association
filing it, the powers applied for, and the place or places where the banking operations
proposed are to be carried on. The Federal Reserve Board shall have power to approve
or to reject such application in whole or in part if for any reason the granting of such
application is deemed'inexpedient, and shall also have power from time to time to increase
or decrease the number of places where such banking operations may be carried on.
" Every national banking association operating foreign branches shall be required to
furnish information concerning the condition of such branches to the Comptroller of
the Currency upon demand, and every member bank investing in the capital stock of
banks or corporations described under subparagraph two of the first paragraph of this seotion shall be required to furnish information concerning the condition of such banks or
corporations to the Federal Reserve Board upon demand, and the Federal Reserve Board
may order special examinations of the said branches, banks, or corporations at such
time or times as it may deem best.
1
'Before any national bank shall be permitted to purchase stock in any such corporation
the said corporation shall enter into an agreement or undertaking with the Federal Reserve
Board to restrict its operations or conduct its business in such manner or under such limitations and restrictions as the said board may prescribe for the place or places wherein such
business is to be conducted. If at any time the Federal Reserve Board shall ascertain that
the regulations prescribed by it are not being complied with, said board is hereby authorized
and empowered to institute an investigation of the matter and to send for persons and
papers, subpoena witnesses, and administer oaths in order to satisfy itself as to the actual
nature of the transactions referred to. Should such investigation result in establishing
the failure of the corporation in question, or of the national bank or banks which may be
stockholders therein, to comply with the regulations laid down by the said Federal Reserve
Board, such national banks may be required to dispose of stock holdings in the said corporation upon reasonable notice.
"Every such national banking association shall conduct the accounts of each
foreign branch independently of the accounts of other foreign branches established
by it and of its home office, and shall at the end of each fiscal period transfer to its
general ledger the profit or loss accrued at each branch as a separate item.
INTERNAL REVENUE ACTS.

The internal revenue act of October 3, 1913, was amended September 8, 1916, providing for an increase from 1 to 2 per cent in the
tax upon the net income of banks, effective on and after January
1, 1917.
The emergency internal revenue act of October 22, 1914, imposing
a tax of $1 per thousand upon the capital, surplus, and undivided
profits of banks, continue until January 1, 1917, after which, under
the act of September 8, 1916, the tax on capital stock will be reduced from $1 to 50 cents per thousand.
In addition, bankers engaged in the business of negotiating purchases or sales of stocks, bonds, exchange, bullion, coined money,
bank notes, promissory notes, or other securities, for others, are liable
after January 1, 1917, to a special tax of $30 annually as brokers.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

125

ISSUE OF GOLD CERTIFICATES.

The act relating to the issuance of gold certificates was amended
June 12, 1916, to provide that " the amount of gold bullion and foreign
coin so held (against issues of gold certificates) shall not at any time
exceed two-thirds of the total amount of gold certificates ai such
time outstanding." The amendment in question changes the proportion of bullion and coin held from one-third to two-thirds of the
amount of the certificates outstanding.
INTERLOCKING DIRECTORATES, ETC.

The amendment to the law, relating to unlawful restraints and
monopolies, approved September 7, 1916, is as follows:
Any director or other officer, agent, or employee of any member bank may, with the approval of the Federal Reserve Board, be a director or other officer, agent, or employee of
any such bank or corporation above mentioned in the capital stock of which such member
bank shall have invested as hereinbefore provided, without being subject to the provisions
of section eight of the act approved October fifteenth, nineteen hundred and fourteen, entitled "An act to supplement existing laws against unlawful restraints ana monopolies,
and for other purposes"
BILLS OF LADING.

An important measure passed by the last Congress, in which banks
and the commercial world generally are interested, was the act approved August 29, 1916, relating to bills of lading in interstate and
foreign commerce. It is provided:
That bills of lading issued by any common carrier for the transportation of goods in
any territory in the United States or the District of Columbia or from a place in a
State to a place in a foreign country, or from a place in one State to a place in another
State, or from a place in one State to a place in the same State through another State
or foreign country, shall be governed by this act.
FEDERAL FARM LOAN ACT.

The act approved July 17, 1916, provides for the establishment of
the Federal Farm Loan Bureau, the organization of 12 Federal land
banks, in districts to be determined, and also for the organization of
national farm loan associations, joint stock land banks, for the issue
of farm loan bonds, in connection with the provision for capital for
agricultural development, the equalization of rates of interest upon
farm loans, etc. The Federal Farm Loan Bureau, under the general
supervision of the Federal Farm Loan Board, has been established in
the Department of the Treasury.
In view of the general interest in this subject, the Federal Farm
Loan Act is printed as Exhibit O to this report and the Decision of
the Federal Farm Loan Board determining the districts and the location of the Federal land banks is herewith presented.

126

REPORT OF THE COMPTROLLER OF THE CURRENCY.

DECISION OF FEDERAL FARM LOAN BOARD DETERMINING FEDERAL
LAND BANK DISTRICTS AND LOCATION OF BANKS.

On December 27, 1916, the Federal Farm Loan Board announced
its decision determining the Federal land bank districts and the location of the Federal land banks, as follows:
The Federal farm loan act directs the Federal Farm Loan Board
to " divide the continental United States, excluding Alaska, into 12
districts which shall be known as Federal land bank districts, and
may be designated by number." In making this division of the
country, the act provides that said districts shall be apportioned
"with due regard to the farm loan needs of the country, but no such
district shall contain a fractional part of any State."
The act further provides that the Federal Farm Loan Board shall
establish in each of the said districts a Federal land bank "with its
principal office located in such city within the district as said board
shall designate." By the terms of the act each Federal land bank
will include in its title the name of the city in which it is located.
In determining the Federal land bank districts and in designating
the cities within such districts where Federal land banks shall be
severally located, the Federal Farm Loan Board has given careful
consideration to the farm loan needs of the country. The board held
public hearings in nearly every State in the Union and in this manner collected information of great value in determining its decision.
Every reasonable opportunity has been afforded applicant cities to
furnish evidence to support their claims as locations of Federal land
banks. More than 75 cities applied to be designated as the headquarters of a Federal land bank, and were heard through representative committees and individuals.
The 12 Federal land bank districts and the 12 cities selected for
the location of the Federal land banks are as follows:
District No. 1.—The States of Maine, New Hampshire, Vermont,
Massachusetts, Rhode Island, Connecticut, New York, and New
Jersey.
Location of the Federal land bank, Springfield, Mass.
District No. 2.—The States of Pennsylvania, Delaware, Maryland,
Virginia, and West Virginia, and the District of Columbia.
Location of the Federal land bank, Baltimore, Md.
District No. «?.—The States of North Carolina, South Carolina,
Georgia, and Florida.
Location of the Federal land bank, Columbia, S. C.
District No. 4>—The States of Ohioa Indiana, Kentucky, and Tennessee.
Location of the Federal land bank, Louisville, Ky.
District No. 5.—The States of Alabama, Mississippi, and Louisiana.
Location of the Federal land bank, New Orleans, La.
District No. 6.—The States of Illinois, Missouri, and Arkansas.
Location of the Federal land bank, St. Louis, Mo.
District No. 7.—The States of Michigan, Wisconsin, Minnesota, and
North Dakota,
Location of the Federal land bank, St. Paul, Minn.
District No. 8.—The States of Iowa, Nebraska, South Dakota, and
Wyoming.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

127

Location of the Federal land bank, Omaha, Nebr.
District No. 9.—The States of Oklahoma, Kansas, Colorado, and
New Mexico.
Location of the Federal land bank, Wichita, Kans.
District No. 10.—The State of Texas.
Location of the Federal land bank, Houston, Tex.
District No.. 11.—The States of California, Nevada, Utah, and
Arizona.
Location of the Federal land bank, Berkeley, Cal.
District No. 12.—The States of Washington, Oregon, Montana, and
Idaho.
Location of the Federal land bank, Spokane, Wash.
W.

G. MCADOO,

Secretary of the Treasury and Chairman
of the Federal Farm Loan Board.
GEO. W.

NORRIS,

Farm Loan Commissioner.
HERBERT QUICK,
W. S. A. SMITH,
CHARLES E. LOBDELL,
WASHINGTON,

Federal Farm Loan Board.
D. C, December 27, 1916.
THE PHILIPPINE NATIONAL BANK.

At the fourth session of the Third Philippine Legislature there was
enacted, under date of February 4, 1916, an act creating the Philippine National Bank, with Manila as principal domicile and place of
business, with authority to establish branch banks at the provincial
capitals in other municipalities, and not to exceed two branches or
agencies in the United States.
The capital of the bank is 20,000,000 pesos, divided into 200,000
shares of 100 pesos each, 51 per cent of which is to be purchased by
the Government of the Philippine Islands and the remainder by the
public. The bank acquired by authority of the act the business of
the Government Agricultural Bank.
The Philippine National Bank is the official depositary of the insular, provincial, and municipal governments and may receive deposits from the postal savings bank, associations, corporations, and
private persons. Authority is granted to issue circulating notes on
the security of specified assets, to be held inviolable for the purpose, a
reserve of 33J per cent being required. The bank is also authorized
to issue notes against gold coin of the United States, the coin to be
held by the bank and used for no other purpose, except for the
redemption of the notes.
In general, the charter rights of the bank are of a character to
enable it to become an important medium in the development of the
agricultural and other resources of the islands.

128

REPORT OF THE COMPTROLLER OF THE CURRENCY.
DIGEST OF NATIONAL BANK DECISIONS.

In Tolume 2 of this report will be found a digest of decisions relating
to national and other banks, rendered during the last T
year.
The Federal cases are reported in volumes 238-240, Tnited States
Reports, and volumes 225-234, Federal Reporter. Five State cases
are also given: One, Illinois, in 110 Northeastern Reporter; one,
Massachusetts, reported in 112 Northeastern Reporter; one, Michigan,
reported in 159 Northwestern Reporter; one, New York, in 160 N. Y,
Supp.; and one, Oklahoma, reported in 150 Pacific Reporter.
Of particular interest are the following:
AUTHORITY OF LIQUIDATING COMMITTEE OF A NATIONAL BANK.

The national bank act contains no provision giving the specific
manner in which the affairs of a national bank shall be liquidated,
and no reference is made in the law to the appointment of an agent
or trustee in liquidation, except when a national bank has been
placed in the hands of a receiver and the claims of all creditors other
than shareholders have been satisfied. Quite frequently the shareholders in voting to place the bank in liquidation also appoint a
liquidating agent or committee, whose powers are not always clearly
defined.
The United States Circuit Court of Appeals has held (Jewett v.
United States, 100 Fed. Rep., 832) that while no such office as an
agent in liquidation was known to the statutes, yet it was one that
had long been recognized as permitted by law. There has always
been question, however, as to the extent of the powers of the liquidating agent, and whether the shareholders had the power to oust all
of the officers of a bank and substitute in their place a liquidating
agent or committee.
In a decision not reported, Judge Lacombe of the United States
Circuit Court for the Southern District of New York held that the
vote to liquidate and the appointment of a committee by the shareholders to liquidate the bank did not divest the directors of their
general power and control over the management of the bank.
The form of resolution furnished by this office to banks for reporting liquidation provides that the liquidating committee shall exercise
its powers under the general supervision of the board of directors,
and in Planten v. National Nassau Banket al., 160 N. Y., Supp. 297,
the court held that under the laws of New York and in the absence
of Federal statutory authority or any decision of the Federal courts
to the contrary, the authority of a liquidating committee of a national
bank was subject to the supervision and control of the board of
directors.
LIABILITY OF DIRECTORS FOR FALSE STATEMENTS.

The United States Supreme Court has held, in Jones National Bank
v. Yates (240 U. S., 541), that where directors of a national bank
knowingly made false statements as to the condition of the bank of
which they were directors that the plaintiffs were entitled to recover
from the said directors their losses oy reason of their reliance upon
such statements.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

129

SALARIES OF BANK OFFICERS AND CLERKS.

Attention is called to Exhibits D, E, and F, in Volume I of this
report showing the salaries paid by national banks throughout the
country to their chief executive officers, and also to clerks and other
employees. The reports to this office show that the salaries paid to
bank presidents and cashiers, outside of the large cities, are generally
moderate; and that the average compensation of all bank clerks and
other employees is in some cases decidedly low.
The national banks reported on September 12, 1916, the total
number of their officers and employees at 66,394, and the aggregate
annual salaries paid them at $88,428,120—an average of $1,331.88
per annum, or only $110.99 per month per employee.
On March 7, 1916, in the central reserve cities, 28 banks with a
capital of $1,000,000 and upward, but less than $5,000,000, reported that the average salary paid to their presidents was $22,482;
while 10 banks in central reserve cities with capital of $5,000,000
and over reported the average salary paid to their presidents to be
$49,000 per annum.
The average salary paid to presidents of banks having a capital of
less than $50,000, where any salary was paid, was $1,008.41 per
annum. The average salary paid to bank presidents by all banks
with a capital of $5,000,000 or over was $44,421 per annum. The
average salaries of the presidents of banks of intermediate size
varied between $1,008 and $44,421, according to the size and locality
of the bank.
RECOMMENDATION TO BANKS TO FURNISH LIFE INSURANCE TO
EMPLOYEES EQUAL TO ONE YEARNS SALARY OF EACH EMPLOYEE.

In view of the very moderate compensation paid to the average
bank clerk, this office takes the liberty of recommendijig to national
banks that they give special consideration to the question of furnishing their clerks and other employees receiving small salaries, life
insurance policies equal to their salary for one year; so that, in the
event of death, the families of the employees may at least be temporarily provided for. The advantages of such a plan are obvious
and manifold, and proper cognizance may be taken of this slight
extra expense in the adjustment of salaries. It is believed that,
under blanket policies, and with cooperation among the banks,
especially favorable terms may be obtained from standard insurance
companies, and the offsetting advantages to both the bank and
their employees should fully compensate for the slight extra expense
involved in furnishing such insurance.
EXPENSES OF OPERATION OF CURRENCY BUREAU.

On pages 73 and 74 of this report wiR be found a statement in
regard to national bank taxes, redemption charges, examiners' fees,
and the expenses of the Currency Bureau for the 12 months ending
June 30, 1916.
I now submit the following figures as to the cost of maintenance
of the Bureau of the Comptroller of the Currency for the report year

130

REPORT OF THE COMPTROLLER OF THE CURRENCY.

ending October 31, 1916, giving in some detail under appropriate
headings the expenditures made during the year, and showing separately those directly reimbursable by the national banks and Federal
• reserve banks in connection with the issue and redemption of currency,
and those not directly reimbursable; also the aggregate cost of national bank examinations and the revenue derived by the Government
from the taxation of national banks on currency issued and redeemed
through this bureau.
Salaries:
Regular roll
$155, 351. 75
Reimbursable roll (national-bank currency)
42, 873. 77
Division of Federal Reserve Issues and Redemption
(provided by Federal Reserve Board)
8, 279. 62
$206, 505.14
General expenses:
Printing and binding
Stationery
(a) Amount expended by chief clerk and superintendent
(light, heat, telephone, telegraph, furniture, etc.)
Special examination of national banks, repairs to macerator, etc
Contingent expenses for Redemption Division, reimbursable; principal items, heat, light, and furniture
Division of Federal Reserve Issues and Redemptions
(provided by Federal Reserve Board)

34, 511. SO
10, 626.11
7, 052. 96
128. 72
376. 00
200. 00
52, 895. 59

Currency issues:
National bank—
Paper
Plates (reimbursed)
(6) Special dies, rolls, plates, printing, etc
Federal reserve bank—
Paper
Plates (reimbursed)
Special dies, rolls, plates, printing, etc
Federal reserve notes—
Plates, paper, printing, etc. (paid by Federal
reserve banks through Federal Reserve Board)
(estimated)

29, 842. 94
18, 300. 00
222, 535. 27
3, 303. 94
2, 880. 00
23,179.18

223, 023. 04
523,064.37

Examination of national banks:
Expenses on account of national bank examining service—
Total expenses Oct. 31, 1915, to Oct. 31, 1916
Total expenses, period named

691, 293. 56
1, 473, 758. 66

RECAPITULATION.

Total directly reimbursed
Total noi directly reimbursed
Total

$987, 225. 99
486, 532. 67
1, 473, 758. 66

Section 5173, United States Revised Statutes, provides that "all
* * * expenses of the Bureau of the Currency shall be paid out of
the proceeds of the taxes or duties assessed and collected on the circulation of national banking associations'' under the national bank act.
The taxes collected on national bank circulation during the report
year ended October 31, 1916, amounted to $3,744,967.77, and the
expenses of the bureau not directly reimbursed to the Government
aggregated $486,532.67, leaving a net profit to the Government of
$3,258,435.10.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

131

FOREIGN SECURITIES OWNED BY OUR NATIONAL BANKS.

At the outbreak of the European war the current indebtedness of
this country to Europe, practically all of which was due and payable
prior to January 1, 1915, was estimated at $450,000,000. The largest
item of this indebtedness was represented by the short term obligations of the city of New York, about $80,000,000. The remainder was
composed of current trade balances of merchants and bankers and
short-time loans borrowed by business houses which had taken advantage of the easy money conditions in Europe preceding the war
crisis. Besides this current indebtedness our securities held abroad
were estimated at between four and five billion dollars.
Before 12 months had elapsed this country had paid in full this
floating debt, and had begun to make loans to both belligerent and
neutral countries in large sums. The total of foreign loans placed
in the United States for belligerent and neutral countries from August 1, 1914, to November 1, 1916, is estimated at approximately
$2,000,000,000.
These foreign securities have been absorbed largely by the investing
public generally, although great blocks of them have been taken by
the corporations engaged in the business of supplying munitions and
equipment of war to Europe.
To a not inconsiderable extent the securities of these foreign nations,
principally their short term obligations, have been acquired by the
banks of this country, both, National and State, and by our trust companies, which have availed of this outlet for idle funds. No figures
are at hand to show the amount of these securities which have been
purchased by our State banks and trust companies, but the following
table shows the holdings on November 17, 1916, by national banks
of all foreign government bonds and also of other foreign securities,
setting forth separately the amounts held by the national banks in
the central reserve cities, in the reserve cities, and in the outside
country banks.

132

BEPORT OF THE COMPTROLLER OF THE CURRENCY,

Amount of foreign government bonds and other foreign bonds and securities owned by
national banks, as shown by reports of condition of 7,584 banks reporting on November
17, 1916, arranged in geographical sections by central reserve, other reserve cities, and
country banks.
[In thousands of dollars.]

Geographical location.

Other
Foreign
foreign
governbonds
ment
and
bonds. securities.

Total
held.

NEW ENGLAND STATES.

Reserve cities
Country banks
Total

$5,110
16,055

$468
5,991

$5,578
22,046

21,165

6,459

27,624

90,446
22,293
44,742

9,121
6,449
16,837

99,567
28,742
61,579

157,481

32,407

189,888

2,307
5,545
7,852

1,318
795
2,113

11,089
14,482
14,433

444
4,557
6,176

11,533
19,039
20,609

40,004

11,177

51,181

3,222
3,359

763
1,377

3,985
4,736

6,581

2,140

8,721

6,430
2,131

888
408

7,318
2,539

EASTERN STATES.

Central reserve cities...
Other reserve cities
Country banks
Total
SOUTHERN STATES.

Reserve cities
Country banks
Total

3,625
6,340
9,965

MIDDLE STATES.

Central reserve cities...
Other reserve cities
Country banks
Total
WESTERN STATES.

Reserve cities
Country banks
Total
PACIFIC STATES.

Reserve cities
Country banks
Total
Total United States

8,561
241,644

1,29655,592

9,857
297,236

$101,535
53,844
86,265

$9,565
14,443
31,584

$111,100
68,287
117,849

241,644

55,592

297,236

RECAPITULATION.

Central reserve cities...
Country banks
Total United Sta tes . . . .

BEPOET OF THE COMPTROLLER OF THE CURRENCY.

133

The increase in the holdings of our national banks of foreign
government and other foreign securities from June 30, 1914, to
November 17, 1916, is shown in the following table:
Holdings by national banks of bonds of foreign governments and other foreign
at different periods from June SO, 1914, to Nov. 17, 1916.

securities

[In thousands of dollars.]
Foreign
Other
Govern- foreign
ment
bonds,
bonds. securities.
June 30,1914.
June 23,1915.
May 1,1916..
June 30,1916.
Sept. 12,1916
Nov. 17,1916

$10,018
33,787
127,927
116,768
192,272
241,644

$5,609
13,402
30,573
40,303
47,294
55,592

Total.

$15,627
47,189
158,500
157,071
239,566
297,236

The aggregate amount of bonds and securities, other than United
States Government bonds, held by the national banks on November
17, 1916, was reported at $1,709,956,000, which included, as above
shown, $297,236,000 of foreign securities; so that the foreign securities represented at that time were 17.38 per cent of the total securities
held by them other than United States Government bonds.
CONCLUSION.
Since the beginning of the European war, a little over two years ago,
our country has passed swiftly and definitely from the ranks of the
debtor countries and has become the most potential of the creditor
nations. Practically the whole world is in debt to us and steadily
increasing its obligations.
Our financial condition in relation to other peoples and the world
at large becomes stronger from week to week and from month to
month. As the figures show so conclusively, our wealth is piling up
with wonderful rapidity; but to do our proper work in thewoild and to
protect and enlarge our own interests we may before long need every
dollar of these resources, gigantic and inexhaustible as they now seem
to be.
From present indications it is probable that we will be required to
finance not only our own enterprises, our preparations to make ourselves a formidable and therefore a respected power, and the commerce which is unfolding for us on this hemisphere, but also the endless complications and demands of readjustment and reestablishment
that will follow the close of the great war.
1
Since this report was sent to the printer, later statements have been received and compiled showing
that the total amount of foreign government bonds and other foreign securities held by all the national
banks on December 27,1916, as reported by them was $321,993,000.
In addition to these foreign securities held on the date mentioned, the national banks in 100 cities of the
United States, including all reserve cities and all other cities having a population of 75,000 or more (returns
not yet received from about 10 per cent of the banks in these cities) reported that they were lending to merchants and other borrowers in foreign countries, including both belligerent and neutral countries, the
sum of $136,669,000; making the total investment by our national banks on the date mentioned (as far
as reported) in foreign government and other foreign securities, and in loans placed in foreign countries
by national banks in the cities indicated, $458,662,000. This is equal to 42.82 per cent of the capital of the
national banks; 21.22 per cent of their capital, surplus, and undivided profits; or 2.96 per cent of their
total resources as reported by the banks on November 17,1916.
Of the above $136,669,000 of loans made in foreign countries, $100,091,000 were loaned by the national
banks in New York City, and $28,475,000 by those in Chicago, St. Louis, San Francisco, Philadelphia,
and Boston.

134

REPORT OF THE COMPTROLLER OF THE CURRENCY.

To meet these enormous drafts and strains on our resources, the
most tremendous requirements and the widest opportunity that any
nation in the world's history has ever faced, we are now strong and
ready.
We have gained in a year and four months, from June 23, 1915,
to November 17, 1916, over $6,000,000,000 in the resources of our
banks, counting all banks. This means that we have added to the
resources of our banks in this brief space of time an amount exceeding by a billion dollars the entire resources, as recently reported, of
those citadels of financial strength the Bank of'England and the
Bank of France combined. As a further comparison the increase
for this period also represents an amount twice as great as the total
resources of the Reichsbank of Germany, plus the resources of the
Bank of Italy, according to their latest reports.
We have now the Federal Reserve System, which we believe
assures us against panics and fears such as have in the past, at
intervals, disturbed our commerce and paralyzed our industries.
The Rural Credits, or Federal Farm Loan System, will aid in securing
permanent commercial strength and safety based on the sure foundations of prosperous and thriving communities of farmers, held to the
soil by ties of ownership and encouraged and aided to secure constantly increasing results per man, per acre, and per day.
In reviewing our banking and fiscal situation we seem now to be
intrenched financially almost as firmly as it is possible for any human
government to be. We are well prepared for preparedness, and
ready and able to provide for whatever increases of Army and Navy
the Congress may think to be necessary.

Our preponderating power in world finance is fast being recognized
in all countries. As an illustration of the opinions now held abroad
as to this country, it may not be amiss to quote in conclusion the following extract from an editorial entitled "American banks and the
future," which appeared recently in one of the leading English
newspapers, the Manchester Guardian:
" European financiers in general would be well advised to face the fact
that the war has radically transformed the relations between the United
States and Europe. The American Controller of Currency in his latest
report indicates how greatly American banks have developed in recent
years. Their resources on November 17 amounted to 3,104- million
pounds. They have grown by 800 millions since 1913 and doubled since
1906.
" The Federal reserve act and other legislation under Mr. Wilson's
auspices have given them, for the first time in their history, a really sound
organization. The United States has wiped out, or by the end of this
war will have wiped out, most of its debt to foreign investors. It will
have a currency of unimpeachable soundness, fortified by a gold reserve
of unprecedented magnitude.
11
The American bankers will have acquired the experience they have
hitherto lacked in the international money market. And all this
strengthened financial fabric will rest upon an economic fabric which
the war will have much expanded. It can hardly be doubted that under
these circumstances New York will enter the lists for the financial
of the world."
leadership

REPORT OF THE COMPTROLLER OF THE CURRENCY.

135

INCREASED WORK OF THE OFFICE.

The work of this bureau continues to grow. Since the April, 1913,
call, to November 17, 1916, the number of national banks under the
supervision of this office has increased from 7,440 to 7,584, while the
aggregate resources of these banks has increased from 11,081 million
dollars to 15,520 million dollars, a growth in a little over three and a
half years of 4,439 million dollars, or 40 per cent.
The increase in the office force, however, has not kept up with the
increase of work to be performed, necessitating frequently long hours
and much overtime, but this has been accepted uncomplainingly and
cheerfully. I take pleasure in bearing testimony to the earnestness,
fidelity, and ability with which the employees generally of this bureau,
including the force of National Bank Examiners, have performed
their respective duties.
Attention is called to a number of special exhibits relating to the
affairs and operations of our national banks which, in addition to
other exhibits heretofore referred to, are published in the appendix
to volume 1 of this report, including much interesting and valuable
information obtained as a result of special reports which have been
furnished from time to time by the national banks during the past
year.
InTolume 2 of this report will be found, as usual, the detailed
statements of condition of each national bank, together with additional general and special statistical data and the usual digest of
court decisions relating to national banks.
Respectfully submitted.
JOHN SKELTON WILLIAMS,

Comptroller of the Currency.
To

the

SPEAKER OF THE HOUSE OF REPRESENTATIVES.

EXHIBITS TO VOLUME I

137

EXHIBIT A.

INTERLOCUTORY DECISION IN RIGGS BANK CASE.
IN THE SUPREME COURT OF THE DISTRICT OF COLUMBIA.

Injunction suit of the Riggs National Bank of Washington, D. C. v9
William Gibbs McAdoo, Secretary of the Treasury; John Skelton
Williams, Comptroller of the Currency; and John Burke, Treasurer
of the United States.
INTERLOCUTORY DECISION OF MR. JUSTICE M'COY AT THE
CONCLUSION OF THE ARGUMENTS ON PLAINTIFF'S MOTION
FOR TEMPORARY INJUCTION AND ON DEFENDANTS' MOTION
TO DISMISS.

Counsel for plaintiff in asking the court to continue the temporary
restraining order argued that if the order were dissolved and the
money finally covered into the Treasury the jurisdiction of the court
would cease.
Counsel for the defendants argued that the rule was that where
the equities of the bill were overwhelmingly denied, as in the present
case, plaintiff's prayer for temporary injunction should be denied.
Thereupon the court made the following statement (pp. 672 to
679 of stenographic report of court proceedings May 21, 1915):
THE COURT:

Of course, there are two aspects of even that part of the proposition. I granted a temporary restraining order because it involved
only the $5,000, and there was a contention made that if it were
covered into the Treasury it might require an act of Congress to
get it out. It may be that I shall continue it on the same ground
pending a hearing; I do not know. But on the other branch of the
case, in regard to granting any pendents lite relief in regard to these
deposits or in regard to the reserve agency end of the situation, I
say what I said before, that the case, such as it is, made out by the
bill, assuming that any was made out by the bill for the purpose of
an injunction, has been met overwhelmingly, in my opinion, by the
proofs which are here in the form of affidavits, and I shall deny that
relief pending the action.
I was struck when I first read the bill by the allegation on page 14
of the printed bill here which I called attention to the other day:
Plaintiff further avers that prior to December, 1913, the defendants McAdoo and
Williams had, in ways which will be fully detailed in the evidence to be taken in this
suit, openly and publicly manifested their personal malice toward certain of plaintiff's
officers.

I wondered what that meant, and I do not know to this minute
what it means; but of course there is an absence, not of evidence, but
of the statement of any ultimate facts that would sustain that allegation in the bill; and when I came to read this Tribune article which
63366°—17

139

140

REPORT OF THE COMPTROLLER OP THE CURRENCY.

appears there, and the incident which occurred in Mr. McAdoo's
office, whenever it was, coupled with that, if I were obliged to resort
to that I should say that perhaps it was shown that the malice was
the other way. In view of the absence, as I say, of any statement
here as to backing up this general allegation, and coupled with what
is in there, I do not see how anybody can fail reasonably to reach
that conclusion, and that if there were bad blood—I do not know as
to that—if there is anything between the parties, there is nothing
here to show that the two defendants were the aggressors in the
matter.
Then, again, I do not think it is necessary here to decide whether
there has been any arbitrary exercise of power, or exercise of arbitrary power, in regard to this question of the reserve agency, or any
threat of an exercise of arbitrary power. It seems to me, on the
record that is made here before me now, that the Government officials
would have been remiss if they had consented to permit the bank
to act as agent for a new applicant bank, because, I think, for the
purposes of this motion, always—now, I am not passing on the ultimate merits of the case—there -is evidence here of persistent violations of the law, and that they began, not with Mr. Williams's incumbency of the office (and that/ has another bearing, perhaps, on
the question of what animated Mr. Williams), but they began before
he came there, and there is evidence that they are continuing until
this day; and even if the comptroller is wrong about what kind of a
bank ought to have Government deposits (namely, a so-called commercial bank or stock-exchange bank), even if those features were
not in there, the other features of violations of the law are in there;
and I should say that he was quite right in determining to take out
those deposits, or at least to say that there should not be any further
selection of this bank as a reserve agent.
While it may have nothing to do with the law of the case, I suppose
that all judges have some right to consider matters of banking policy
when they are called upon to decide legal questions. I should say
that the policy of not having large deposits in so-called stockexchange banks as compared with the amount of deposits in commercial banks was an absolutely good and sound policy, and the fact that
Congress thinks so is now embodied in the Federal reserve act. This
question about whether or not stocks are good, and whether or not
dealing in stocks is any different from dealing in oats and grain and
steers and hogs and that kind of thing, is an argument that does not
need to be answered.
ATTORNEY FOR DEFENDANT. Will your honor permit me to suggest
The COURT. I will ask you to excuse me a minute; I want to look
through these prayers here.
I have never analyzed these prayers, but the second to the sixth,
inclusive, apply to this $5,000 penalty, and to the other penalties
which the plaintiff says the comptroller is threatening to assess or,
at any rate, on account of which they claim to be in danger. I think
I will take those under advisement on that question, which is the
real question in the case.
No. 7 is a prayer "that the defendant Williams may be enjoined
pendente lite and permanently from calling or attempting to enforce
his call for any special report or reports from the plaintiff when the

REPORT OF THE COMPTROLLER OF THE CURRENCY.

141

same are not bona fide and reasonably necessary in order to a full
and complete knowledge of the plaintiffs condition and are not such
as he is expressly authorized by said section 5211 to call for."
I take it that refers to the future, and I shall deny that relief
pendente lite.
I do not quite take in the scope of the eighth prayer for the minute.
I will have to pass that.
ATTORNEY FOR DEFENDANT. I think that is on the phase of the constitutional law.
The COURT. I say I do not take in the scope of it; I do not know
what the evidence is here that would lead to any assumption that that
was being done; but I will deny that relief pendente lite.
As to enjoining the defendant McAdoo from aiding, assisting, or
abetting, there is absolutely nothing in the case, as it is made here, to
show that he has. They are sued as officials, and if Mr. McAdoo had
a duty to perform he would perform it; if Mr. Williams had a duty
to perform he would perform it; and whether Mr. McAdoo would
be glad to see Mr. Williams do a certain thing, or urge him to do a
certain thing, does not seem to me to make any difference.
No. 10 is a part of the $5,000 transaction, and about that I will not
say anything further.
ATTORNEY FOR DEFENDANT. NO. 9 is denied, your honor ?
The COURT. NO. 9 is denied; yes.
No. 10 is part of the $5,000 transaction.
ATTORNEY FOR DEFENDANT. That your honor takes under advisement?
The COURT. Yes. Without saying anything about No. 13, that is a
part of that $5,000 penalty matter, and I will take it under advisement. I do not quite comprehend what the situation is about that
so far as the allegations are concerned.
No. 14 I will not grant pendente lite.
ATTORNEY FOR PLAINTIFF. It is not included in the rule, if your
honor please.
The COURT. It was not ?
ATTORNEY FOR PLAINTIFF. NO;

nor is No. 15. No. 16 you have
already passed upon.
The COURT. I have passed upon 16; yes.
It may be that in the hurried way I have made some mistake
within tlie lines of what I have endeavored to lay down as my notions
about the case for the time being. If counsel on both sides, upon
reading the record, will point out anything of that sort I will be
obliged.

EXHIBIT B.

DECISION OF SUPREME COURT OF DISTRICT OF COLUMBIA
IN RIGGS BANK CASE.

The following is a review or synopsis of the decision, rendered May
31, 1916, by the Supreme Court of the District of Columbia in the
injunction suit of the Riggs National Bank versus the Comptroller
of the Currency et als., as summarized and given out on May 31, 1916,
by the Department of Justice at Washington, D. C.
This decision is a matter of general interest to the banks, since it
defines very clearly the supervisory authority of the Comptroller's
office:
"THE RIGGS BANK DECISION.

"The decision of Mr. Justice McCoy in the Riggs Bank case, filed
to-day, contains seventy-three typewritten folio pages, and, as the
Department understands it, decides the following points:
" (1) That the court had jurisdiction of the case (pp. 17-30).
"(2) That as 'the bill does not state facts sufficient to constitute a
cause of action against the Secretary of the Treasury as to a conspiracy,
nor as to anything done or threatened by him, it must be dismissed as to
him, unless he is a necessary party in order to give relief by way of
directing a purely ministerial act, namely, the payment of interest7
withheld because of the penalty of $5,000 assessed by the Comptroller
(pp. 32-36).
"(3) That the plaintiff's construction of the nature of 'special
reports/ which the Comptroller was entitled to call for, was wrong,
and that the Comptroller's contention was correct (pp. 37-53); and
that ' the statute thus construed makes lawful any inquiry by the Comptroller for the purpose of obtaining information, not only as to current
items on the books of the bank, but also for the purpose of informing
himself generally as to the management of the bank'; and that it is
certain 'that Congress intended that national banking associations
should be under the strictest supervision by him (the Comptroller) for
the protection of creditors and stockholders and of the public generally'
(p. 47); and 'that the power of the Comptroller under Revised Statutes,
section 5211, is to call for a report on the affairs of a, bank just as fully,
at u
least, as might a bank examiner' (p. 50).
(4) That there was no such arbitrary action on the part of the
comptroller as to amount to total lack of authority (pp. 55-60); but
that 'the action of the comptroller on the basis of which specific charges
are made to the effect that he was acting in excess of his powers, examined
in a light of the views above expressed, must be upheld as lawful' (p. 60).
the
(5) That the plaintiff's contention that the comptroller had no
right to call for reports as to past transactions was wrong, and that
i
valid, reasons for going back over the books of the bank for several years
may be suggested by what is discovered as to recent transactions' (p. 58).
142

REPORT OF THE COMPTROLLER OF THE CURRENCY.

143

"(6) That the information called for by the Comptroller in regard
to list of loans in excess of $5,000 secured by collaterals was rightly
called for by him and should have been furnished (p. 60).
"(7) That the information called for by the Comptroller as to
whether the plaintiff was maintaining a private telegraph wire connected with stock brokerage houses, 'was an eminently proper inquiry''
(p. 60).
"(8) That the Comptroller's call for information as to the ownership of the Flather & Flather account may well have been justified
(p. 60).
"(9) That the Comptroller had the right to specify a longer time
than five days within which to make certain reports, and that there
was no reason for the bank's complaining of the giving of a longer
time (p. 61).
"(10) That the Comptroller's request for information in regard to
loans made by the bank to former United States officials was a proper
one (p. 61).
"(11) That the Comptroller's call for information in regard to commercial paper carried by the plaintiff was clearly proper (p. 61).
"(12) That the Comptroller's call for information as to the expenditure of money for printed copies of the correspondence, etc.,
was rightly made (p. 62).
"(13) That the demand for information in regard to the direct
loans made by the bank to certain of its officers, and for information
in regard to the indirect, or dummy, or concealed, loans, made since
the organization of the bank, for the benefit, directly or indirectly, of
those officers, including all loans which any of the officers had indorsed,
or for which they had furnished the whole or any part of the collateral,
were ientirely within his {the Comptroller's) powers' (p. 62).
"These are the two demands for the failure to comply with which
the penalty of $5,000 was assessed.
"(14) The Comptroller's requirement that certain facts be laid
before the board of directors, even if made for the purpose of discrediting the plaintiff's officers before the board of directors, was
proper (p. 63).
" (15) That the allegation in the bill that the acts of the Comptroller
were done maliciously, is merely a statement of a conclusion of law
(pp. 63-64); Hhe Comptroller was acting within his powers in performance of his duty, so far as calling for the reports is concerned. Therefore,
as no right of the plaintiff was infringed, he was not acting maliciously.1
" (16) That the actions of the Comptroller as treasurer of the Red
Cross funds were 'perfectly proper steps to obtain the largest 'possible
revenue from it while on deposit. The plaintiff was given the same
opportunity that was given to others to have those deposits made in its
lank1 (p. 64).
" (17) That the plaintiff's contention that the bank is not required
to furnish a special report, which by Revised Statutes the Comptroller
is authorized to call for, is incorrect (p. 65).
" (18) The plaintiff's contention that Revised Statutes, section 5213,
does not impose a penalty for failure to make a special report, is incorrect (pp. 65-67).
" (19) The plaintiff's contention that the Comptroller's construction
of the Revised Statutes would necessitate a holding by the court of
their unconstitutionally, is incorrect. i The plaintiff can not object

144

REPORT OF THE COMPTROLLER OF THE CURRENCY.

to giving the information demanded of it by the Comptroller, nor urge any
constitutional ground as a basis for refusing, having accepted its charter
under a statute giving the right to call for special reports' (pp. 68-69).
"(20) As to the merits of the case, the single point on which the
court finds against the defendant is the following: That the Comptroller in making his demand of January 22, 1915, for the special
report called for, required that it should be made under the oath of
the president, cashier, and three named officers and directors, whereas
the statute, section 5211, only required that the report be sworn to
by the president or cashier and attested by the signatures of at least
three of the directors. The court said: ' Therefore, it must be held in
this case that the Comptroller having called for a report not verified and
attested as provided in the statute, did not place himself in a positien
where he could lawfully assess a penalty for a failure to comply with a
demand which he made' (p. 70).
"(21) The plaintiffs7 petition in their bill in equity that the court
should enjoin the Comptroller from revoking any designation of the
plaintiff as a depositary, and from refusing to approve of the plaintifff
bank as such, is refused, and the court states that 'it can not be granted
(pp. 70-72).
"(22) The plaintiffs' petition in their bill that the Comptroller
should be enjoined generally from future violations of the law is
refused: 'The court will not stop an officer vested with powers to be
exercised at Ms discretion from performing his statutory duty for fear
that he should perform it wrongly' (p. 72).
"The result of the whole decision is that the temporary injunction restraining the payment of $5,000 is continued as against the
Treasurer of the United States, but not as to the Comptroller, and
that, except for the purpose of compelling payment of the interest
due the bank and retained, and of enjoining the assessment of penalties because of the failure to comply with the demands (held defective
in form as above stated) for reports, the bill is dismissed as against all
the defendants."

EXHIBIT C

DECISION OF THE COMPTROLLER OF THE CURRENCY O " THE
K
APPLICATION FOR A RENEWAL OF THE CHARTER OF THE
RIGGS NATIONAL BANK OF WASHINGTON, D. C,
TREASURY DEPARTMENT,

Washington, June 21, 1916.
The RIGGS NATIONAL BANK,

Washington, D. 0.
On the 23d of May, 1916, you filed an application for an
amendment to your articles of association so as to continue the life
of your association until June 27, 1936. This application, if granted
in its present form, would extend the life of the corporation for 20
years and 1 day, which the Comptroller of the Currency has no power
to grant, as the law now permits an extension of 20 years only. The
application should be amended so as to provide that the association
shall continue until the close of business on June 26, 1936, instead of
June 27, 1936. The application, to be legal, should also bear a 10-cent
internal-revenue stamp, as required by law. I shall assume, for the
purposes of this decision, that the application has been amended as
thus indicated and that the 10-cent internal-revenue stamp has been
affixed:
Section 3 of the act of July 12, 1882, provides:
That upon the receipt of the application and certificate of the association provided
SIRS:

for in the preceding section, the Comptroller of the Currency shall cause a special
examination to be made, at the expense of the association, to determine its condition; and if after such examination or otherwise, it appears to him that said association is in a satisfactory condition, he shall grant his certificate of approval provided
for in the preceding section, or if it appears that the condition of said association is
not satisfactory, he shall withhold such certificate of approval.

The word " condition/7 as it has been construed by my predecessors and by the Supreme Court of the District of Columbia in the
decision rendered May 31, 1916, in the suit of the Riggs National
Bank v. The Comptroller of the Currency et al., comprehends not
only the solvency of the bank, but as well the character of the business done by the bank and the management and the record of the
bank with respect to observance or violations of law by its officers.
It is the duty of the Comptroller to determine such "condition 7 '
with reference to all of these factors or elements, and this necessitates a consideration of the bank's record as well as of its solvency
and financial resources.
Acting upon this conception of my duty, I find that the present
officers of the association (who, with the exception of Mr. H. H.
Flather, who resigned Oct. 1 last, have been its officers almost since
its organization) hayefconducted the business of the bank during
almost the entire period of its existence in persistent violation of the
national-bank act and in disregard of the regulations and frequent
admonitions of the Comptroller's Office.

145

146

REPORT OF THE COMPTROLLER OF THE CURRENCY.
VIOLATIONS OP LAW AND UNLAWFUL PRACTICES.

Some of its violations and irregular practices have related to—
The making of real estate loans, contrary to law;
Investments in stocks, contrary to law;
The frequent and persistent failure to maintain reserves, as
required by law;
Excessive and unlawful loans;
The carrying on of a stock-brokerage business either directly
or through the agency of a partnership composed of the
chief officers of the bank within the bank itself, under the
firm name latterly of Glover & Flather, or Flather & Flather,
and in earlier years of Glover, Hyde, Johnston, and others;
The maintenance of private telephone and telegraph wires
with stock brokerage offices;
The making of dummy loans for the benefit of officers of the
bank; and
The lending of large sums of money (oftentimes when the bank
was running behind in its reserve requirements) to the president, vice presidents, and cashier of the bank, as well as to
many bookkeepers, tellers, clerks, and other employees of
the bank, contrary to what this office regards as proper and
legitimate methods of carrying on a banking business under
the requirements of the national-bank act;
Refusal to furnish reports as required by the Comptroller's
Office; and
Denial of the authority of the Comptroller to require information about the bank's affairs.
Its violations of law and irregular practices began shortly after the
organization of the bank in 1896 and continued throughout the life
of the bank until the summer or autumn of 1914, when they were discontinued because of the action of the Comptroller's Office. I shall
not attempt to go into great detail in these matters, as they have been
set out quite fully in the answering affidavits filed by the Secretary of
the Treasury and the Comptroller of the Currency in the Supreme
Court of the District of Columbia in the suit brought by the Riggs
National Bank in April, 1915, to test the powers and authority of the
Comptroller of the Currency, but it is necessary that I should advert
to them in a general way. Copies of said affidavits and a synopsis
made by the Department of Justice of the opinion rendered by Mr.
Justice McCoy, as well as the opinion itself, are attached hereto, as
Exhibits Nos. 1, 2, 3, and 4, respectively, and are made a part of this
decision.
STOCK BROKERAGE BUSINESS.

National-bank examiners reported to this office, as a result of their
investigations in May, 1914, that the principal officers of the Riggs
National Bank were conducting an active stock brokerage and real
estate loan business within the bank and were engaged in speculations for their own account, for which they were borrowing large
sums of money from their own bank, from other local banks, and from
the New York correspondents of the Riggs National Bank. It was
established that the cashier of the Riggs National Bank, Mr. H. H.
Flather, who resigned at the time that the indictments for perjury

REPORT OF THE COMPTROLLER OF THE CURRENCY.

147

were returned against him and other officers of the bank, had a private
telephone line from his desk in the bank to the office of the now defunct stock brokerage firm of Lewis Johnson & Co. It was disclosed
that Cashier Flather traded, in some instances, on the orders of customers to his personal advantage, reporting sales to customers at
prices less than those at which their securities had actually been sold,
and converting the difference to his own use. Concerning these
speculative transactions of Mr. H. H. Flather, National Bank Examiners Sherrill Smith, chief examiner of the Chicago district, and James
Trimble, examiner at Washington, as a result of their examinations
of the bank, submitted, under date of October 2, 1915, a report from
which the following extract is taken:
REPREHENSIBLE PRACTICES, INCLUDING "DUMMY" SPECULATIVE ACCOUNTS.

We find that H. H. Flather, from June 24, 1909, to March 7, 1914, had a personal
account with Lewis Johnson & Co. which was speculative in character, in which he
usually carried a debit balance on which interest was charged, and in which for a
long period the securities were inadequate. That from February 29, 1908, to November 20, 1909, he carried an account as "Henry Hepburn," which was speculative to
a lesser degree; and that so far as our investigations went, his transactions through
the bank accounts with Colgate & Co. and Lewis Johnson & Co (see this report) were
most reprehensible, if indeed they are not held in some instances to be criminal.
We find that his entire dealings were conducted in a manner to prevent discovery;
he maintained no balance, claiming he received and paid cash.
He protected himself from discovery of his deals with Lewis Johnson & Co. by
having the advices come to the bank "in care of Cooke," and ran but few of his
transactions through his account.
He sold short through the bank's account.
He advised customers of a credit before the stock was sold, and later sold the stock
and took the profit, or made good the loss.

This report of the examiners showed how H. H. Flather, sometimes
having orders to buy a certain stock, bought the stock ordered by the
customer and then, if it should advance, would sell the stock so purchased and take the profit himself, and would then buy the stock
again, at a higher price, for the customer. Or that, having an order
to sell a certain stock, he would sell on the customer's order; and then,
if the stock should decline, he would buy it in and later sell again at
a lower price than the price at which he originally sold, but accounting to the customer at the reduced price, taking for himself the profit
between the price at which the customer's stock was first sold and
the price at which he bought it in, the customer losing the difference.
The examiners also stated that H. H. Flather sometimes bought
the securities through the Riggs National Bank account with Lewis
Johnson & Co.; but making no deposit against such purchases; and
then sold the securities at an advance, appropriating the profits personally.
Vice president of the Riggs National Bank, W. J. Flather, brother
of. the cashier, H. H. Flather, carried two speculative accounts on the
books of the brokerage firm, Lewis Johnson & Co., one in his own
name and the other in the name of a member of said firm. Orders
for the purchase and sales of securities were given by him to Lewis
Johnson & Co., and then charged to the account of the firm member
as "Agent," Vice President Flather being the real principal. Another
vice president, Mr. Ailes, carried his active speculative account with
a New York stock brokerage house, with which the bank also had

148

REPOBT OF THE COMPTROLLER OF THE CURRENCY.

private wire connection, the wire also connecting with the bank's New
York correspondent.
The practice of officers of a national bank speculating in stocks and
borrowing money from their own bank in order to carry on such
speculations is reprehensible in the highest degree and can not be
condemned too severely. Numerous junior officers, tellers, bookkeepers, and clerks are also shown by the record to have been borrowing large amounts of money from the bank to carry speculative
accounts. Such practices have been the fruitful source of bank failures throughout the country, resulting in grave losses to innocent
depositors and stockholders, bringing disaster to the bank officers
themselves and serious injury to the communities where such bank
failures have occurred.
Aside from the stock operations of said officers of the bank the
records show that the bank itself, in its own name, carried on a brokerage business in stocks, contrary to law. This business was discontinued only recently as a result of the action of the present Comptroller of the Currency. I t was proven in court that the bank, in its
own name and on its own credit, had more than 2,500 transactions in
stocks and bonds with the stock brokerage firm of Lewis Johnson &
Co. alone.
LOANS TO OFFICERS AND EMPLOYEES.

While the law does not forbid the making of loans to officers and
employees of a bank for speculative purposes, nevertheless the making
of such loans has been frequently condemned by Comptrollers of the
Currency as contrary to sound banking practice and the ethics of
ood banking. Many bank failures have resulted from the excessive
orrowing of the bank's funds by officers of banks. Such officers owe
a solemn duty to depositors not to use the funds of the bank to their
personal advantage in such a way as to expose the money of depositors
to undue risks or to prevent the bank from performing its full duty to
the community. The officers have an advantage over every other
person dealing with the bank, and this of itself imposes upon them a
higher duty and a greater responsibility. This practice is particularly
reprehensible when dummy loans are made in the interest of officers
of a bank. There were frequent instances of such dummy loans in
the Riggs National Bank.
The direct and indirect loans reported under oath by the bank as
made to C. C. Glover, president; W. J. Flather, vice president; M. E.
Ailes, vice president; and H. H. Flather, cashier, from July, 1896, to
July, 1914, were:

C O . Glover
W. J. Flather
M. E. Ailes
H. H. Flather

$2,534,377
1,258,010
584,855
1,282,698

From this it appears that there was borrowed from the bank in
18 years by its four principal officers, President Glover, Vice President Flather, Vice President Ailes, and Cashier Flather, a total of
$5,659,850, exclusive of large amounts loaned to wives, brothers, sons,
and daughters of some of these officers. Besides the loans to principal officers, the junior officers, tellers, bookkeepers, and other employees sometimes borrowed heavily. For example, loans made by
the bank in the two years 1904 and 1905 to its ladies' teller, paying

REPORT OF THE COMPTROLLER OF THE CURRENCY.

149

teller, and note teller, and one of its bookkeepers exceeded in the
aggregate $466,000, largely on speculative stocks. The above loans
are all in addition to large loans made during the period to directors
of the bank, other than officers, and to other junior officers and employees. Some of the above loans may have been renewals of other
loans, and may have been carried through the books several times,
and therefore the totals may to some extent be subject to adjustment,
although some of the loans ran several years at a time. But in any
case they exhibit a consistent policy or practice of large and dangerous
proportions, which should be condemned by all who believe in sound
and safe banking. I t is true that after the present Comptroller of the
Currency discovered this condition of affairs, the loans to all officers
in the bank were taken up or transferred to other banks in the summer
of 1914. Since that time the practice has not been resumed, and it
ought not to be resumed at any time in the future.
BORROWING BY OFFICERS WHEN RESERVES WERE DEFICIENT.

The records of the bank show that President Glover borrowed frequently from the bank when the bank was below its reserve requirements or during the 30 days preceding calls for report when the bank
reported that it had during such period averaged short for 30 days in
the legal reserve required. Banks were expressly prohibited by section 5191, United States Revised Statutes, from making any loan
when there was a deficiency in their reserves. The records show that
between August 4, 1906, and March 4, 1'914, Mr. Glover borrowed
24 times from the Riggs National Bank on days when the bank's reserves were short; or, in the 30-day period when the bank had reported
averaging short in reserves. These 24 loans aggregated $412,500.
During the same period and under the same circumstances as to deficient reserves, Vice President Flather borrowed from the bank over
$210,000 on 20 loans; former Cashier Flather borrowed over $50,000
on 6 loans, and Vice President Ailes got 29 loans from the bank on
his own note, or jointly with others, for amounts aggregating over
$200,000. I deem it my duty to bring out the foregoing facts in order
that it may be clear that this office does not approve the practices to
which I have referred and to enjoin upon the directors of the Riggs
National Bank the importance of preventing a repetition of such
practices in the future.
This office has no desire to do injustice to any bank. Its single aim
is to promote sound, honorable, and safe banking and to use the
powers which the law has conferred upon it for the protection of the
legitimate banking interest of the country and for the prevention of
those practices which, throughout banking history, have brought
injury and disaster to innocent depositors and to the business communities where bank failures have occurred.
No national bank need have the slightest fear of any conflict or
trouble with the Comptroller's Office so long as it obeys the law and
observes the rules of sound and safe banking; but no national bank,
however big or little, and no officer or stockholder, however influential
or important, is above the law. The Comptroller must enforce the
law and the rules and regulations of the Comptroller's Office impartially and unswervingly, whether the bank be big or little and whether
or not the officers and directors be important and influential.

150

REPORT OF THE COMPTROLLER OF THE CURRENCY.

The records show that the directors of the Riggs National Bank
have not always been as observant of their duties as the law provides
and their oath of office requires. They have not always shown themselves sufficiently familiar with the transactions of the officers of the
bank. If the directors had been more careful in discharging their
duties, many of the practices of the bank which have aroused the
criticism of *the Comptroller's Office would not have occurred. As an
instance of the negligence to which I refer, one of the directors of the
bank made oath for five successive years, from 1910 to 1914, that he
was the owner in good faith and in his own right of 10 shares of the
stock of the bank standing in his name on the books of the bank, and
that these shares had not been hypothecated or in any way pledged
as security for any loan or debt; and yet, each time that he made this
solemn oath the said 10 shares of stock were pledged for a loan and
continued to be pledged for a loan during the whole of said five years.
I accepted the explanation of this director that he made these oaths
without reading them and without realizing that he was violating the
law, but it is evidence of the serious carelessness of which I speak.
UNLAWFUL STOCK INVESTMENTS.

As far back as 1898 Comptroller Dawes wrote you as follows:
The bank holds a large amount of stocks which were purchased for investment.
You are respectfully advised that the United States Supreme Court decided during
the October, 1896, term, in the case of California National Bank v. Nat Kennedy (167
U. S., 362) that:
"The power to purchase or deal in stock of another corporation is not expressly
conferred upon national banks, nor is it an act which may be exercised as incidental to
the powers expressly conferred. A dealing in stocks is consequently an ultra vires act,
and being such, it is without efficacy."
All shares of stock purchased for investment now owned by the bank are held in
plain violation of law, and must be disposed of without further delay.

Since that date and until very recently you have continued to be a
holder of stocks in violation of law. May 1, 1902, the Comptroller's
Office advised you of a decision of the Supreme Court which declared
that stocks could not be lawfully held as investments and directed
that the stocks held by you should be disposed of. Similar letters,
directing the sale and disposition of your stock investments, continued
to be written after every examination up to June, 1906, but were
ignored. You then transferred the stocks held by you to Joshua
Evans, jr., then a clerk, now cashier in the bank, who gave his notes
representing the market value thereof, and the stocks were, by this
means, carried in loans and discounts until discovered by one of the
bank examiners, whereupon they were put back in " Stocks, securities,
etc.," and subsequently transferred into the Glover and Flather account, where they remained until finally disposed of a few months ago,
or until after the filing of your injunction suit.
FAILURE TO MAINTAIN RESERVES.

Through a period of years the bank has violated section 5191 of
the Revised Statutes of the United States requiring national banks
in reserve cities to carry a reserve of 25 per cent of their deposits.
Out of 64 sworn statements of condition rendered between September, 1902, and March, 1915, 33—a majority—show that the bank
was short in its reserves, either in the cash it was required to carry

REPORT OF THE COMPTROLLER OF THE CURRENCY.

151

in its vault, in the amount which it was required to carry with reserve agents, or in its total reserves. These shortages in its cash
reserve averaged, 1910 to 1914, more than $150,000, and on June 4,
1914, amounted to $500,363. The reports also show that there was
throughout the same period an average shortage in your reserves for
the period of 30 days preceding the filing of each report of the condition of the bank.
The failure to maintain reserves is particularly reprehensible on
the part of a bank which is the reserve agent for otner banks. A
greater responsibility rests upon a reserve agent than upon a nonreserve agent, for the scrupulous maintenance of the reserves required
by law.
FAILURE TO FILE DIVIDEND REPORTS.

You have also been negligent in filing the reports required by
section 5212, United States Revised Statutes, as to the amount of
dividends declared and the amount of net earnings in excess of such
dividends, while from September 11, 1905, to March 8, 1915 (approximately 10 years), you have been from 14 to 54 days late in filing each
report. This is indicative of the careless a,nd indifferent attitude of
the bank toward compliance with the requirements of the law.
REAL ESTATE LOANS.

The practice of the bank in dealing in real estate loans and lending
upon real estate or real estate securities contrary to law and the
regulations of this office has continued throughout its entire existence until recently, and against frequent admonitions of former
Comptrollers of the Currency. As far back as September 14, 1899,
Comptroller Dawes admonished you as follows:
Loans secured by real estate mortgages:
At the time of the examination the bank had loans secured by real estate amounting to $310,338.40, while in your sworn report of condition for June 30, 1899, no amount
appeared in the schedule of loans and discounts secured by real estate mortgages,
although about the same amount was then held.
It appears that the loans are made through the firm of Glover, Hyde & Johnston,
which is comprised of yourself and the two vice presidents of the bank, the cash being
ilirnished temporarily by the bank, and that the notes are sold to customers of the
bank without recourse on this firm. The examiner reports that at least $2,000,000 of
this paper is outstanding and its collection and management is under the supervision
of the collection department of the bank.
The criticism as to the legality or illegality of these loans depends entirely upon
whether they are made wholly or partly upon the security of the real estate mortgages,
and in this connection your attention is called to section 5137, United States Revised
Statutes, which provides that the only purppse for which a national bank may lawfully
acquire a mortgage on or title to real estate is " by way of security for debts previously
contracted."

And again, on March 12, 1900, the Comptroller admonished you
as follows:
The examiner reports 63 loans, amounting to $282,405.65, secured by real estate
mortgages.
It appears that these loans are made upon notes discounted for the makers on the
security of other notes running to such makers, which latter notes are secured by real
estate mortgages, and that the bank accepts these mortgage notes and mortgages as
collateral to the notes discounted.
While it is true, as stated by the bank, in reply to a former letter of this office in
regard to such loans, that none of the collateral notes or mortgages in question run to
the bank, it appears to be likewise true that the only security involved in any of these
transactions is the real estate mortgaged to secure the note taken as collateral to the

152

REPORT OF THE COMPTROLLER OF THE CURRENCY.

note discounted, as it is not assumed that the bank would have discounted any of
these borrowers' notes on the strength of the makers of the collateral notes without
the real estate mortgages behind them.
These loans are therefore made in contravention of section 5137, United States
Revised Statutes, which prohibits a national bank from taking real estate mortgages as
security for loans except "such as shall be mortgaged to it in good faith by way of
security for debts previously contracted," and the practice of making such mortgage
loans should be discontinued.

On October 17, 1900, the Comptroller again admonished you with
respect to real estate loans, and on May 19, 1901, the Comptroller
wrote you as follows:
The examiner states that loans secured by real estate, amounted to about $400,000,
the security for the greater portion running to employees of the bank. * * * Your
attention is again called to the provisions of section 5137, United States Revised
Statutes, in connection with these loans.

On numerous occasions thereafter the Comptroller's Office directed
you to cease making unlawful loans on real estate, but its admonitions and directions were consistently disregarded. I refer you to
Exhibit A, a statement showing the real estate loans held by you
from May, 1898, to November, 1914, as far as discovered and reported
by the bank examiners, contained in the affidavit and answer of the
Comptroller of the Currency filed in the injunction suit.
REFUSAL TO FURNISH SPECIAL REPORTS AND DENIAL OF AUTHORITY OF THE COMPTROLLER'S OFFICE.

The records clearly show that until the recent decision of Mr.
Justice McCoy, to which I have referred, you refused to furnish, and
denied the authority of the Comptroller to call for, the information
and special reports which it was essential that you should furnish
in order that the Comptroller might have full knowledge of the
affairs of the bank. I regret to say that many of such reports as
have been furnished, until quite recently, have been evasive, insufficient, inaccurate, and incomplete. It is a serious question for this
office to give life to a bank or association which defies the Comptroller's authority and challenges his right to such information as
the Comptroller deems necessary to enable him to properly understand the condition of affairs of the bank and enforce the law.
The suit brought by the Kiggs National Bank against the Comptroller of the Currency et al. in the Supreme Court of the District of
Columbia, to which 1 have alluded, grew out of the effort of the
Comptroller's Office to secure special reports and complete information as to the affairs of the bank. Mr. Justice McCoy, m the opinion
to which I have referred, says inter alia concerning the Comptroller's
request for a special report, the refusal to furnish which carried the
imposition of the $5,000 fine:
That demand was twofold:
First, for information in regard to all direct loans made by the bank to certain of its
then officers; and
Second, for information in regard to all indirect or dummy or concealed loans made
since the organization of the bank for the benefit directly or indirectly of those officers
or any of them, including all loans for which they or any of them had indorsed or for
which they had furnished the whole or any part of the collateral by which loans to
any of them were secured, and for other information as shown by the quotation of
said paragraph above.
In the view which the court takes of the power of the Comptroller, these demands
were entirely within his powers.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

153

DECISION OF COURT UPHOLDING COMPTROLLER'S AUTHORITY.

The decision of Mr. Justice McCoy further says:
* * * It is perfectly obvious that as to concealed loans made for the benefit of
the officers of the bank no possible limit to the scope of an inquiry by the Comptroller
could be reasonably suggested. * * *
The demands made by the Comptroller were that the bank make certain reports.
If the demand had included the production of books and papers of the plaintiff, the
officers of the bank would have no privilege of refusing to produce them because they
might contain matter which would incriminate the officers or lead to punishment of the
corporation. (Hale v. Henkel, 201 U. S., 42; Wilson v. United States, 221 IT. S., 361.)
As was stated in the latter case, the State has visitorial powers over corporations. The
fourth amendment of the Constitution protects a corporation against unreasonable
searches and seizures, but the fifth amendment providing against compelling a person
to be a witness against himself in a criminal case does not prevent the compulsory production of the books of the corporation by one of its officers, so here the bank can not
excuse the failure to give a report simply because any of its officers required to furnish
it raise the question of self-incrimination.

It was against the exercise of the very powers which the court has
decided that the Comptroller possesses that the Riggs National
Bank, in its suit, sought to obtain an injunction.
Obviously it would be contrary to the purpose, spirit, and letter
of the national bank act for the Comptroller of the Currency to give
corporate life to an association which is denying the power of the
Comptroller and challenging the very law under which the association
is to be organized.
Obedience to law on the part of a national bank and its officers is
an essential of its existence. The Comptroller has no authority to
permit violations of the national bank act, and it is a serious question as to whether the Comptroller should extend the corporate life
of a bank which, at the time of its application, is challenging the
authority of the Comptroller's Office under the national bank act.
Charters are granted to banks* upon the express condition that they
shall obey the law and the directors of such banks are required to
take an oath that they will obey the law. It is the duty of the
Comptroller to see that the law is obeyed and to proceed for a forfeiture of the charter of any bank which violates the law and refuses
to respect lawful authority.
The Comptroller might be considered derelict in his duty, therefore,
if he extended the corporate life of a national bank in the face of a
challenge by the bank of the very law from which it is to derive its
life, and when the Comptroller apprehended that he would be forced
subsequently to bring an action for forfeiture of the charter of the
bank because of its refusal to obey the organic law of its being.
In view of the record of the Riggs National Bank as thus shown,
the question may well be asked, should its charter be extended if the
present officers, who have been responsible for its management during
the whole, or practically the whole, of the bank's existence, are to be
retained in its management ? If the practices and methods of these
officers, which have been the subject of criticism, had continued
down to the date of the pending application for extension of the
charter, the answer would have to be in the negative; but the record
of the bank shows that during the past 18 months these practices
have been discontinued. During this period the bank's record as to
observance of the national-bank act has been generally satisfactory,
with the exception of the refusal of its officers to furnish the Comptroller with special reports he has called for and the resistance of the

154

REPORT OF THE COMPTROLLER OF THE CURRENCY.

bank to the lawful authority of the Comptroller. As to this phase
of the matter ; the recent decision of Mr. Justice McCoy in the Supreme Court of the District of Columbia, in the case of the Riggs
National Bank v. The Comptroller of the Currency et al., assists to a
solution.
The court has, in the decree of Mr. Justice McCoy, thoroughly vindicated the authority of the Comptroller under the national-bank
act, upholding the contentions of the Comptroller in every particular
except as to the fine of $5,000, which the court held the Comptroller
clearly had the authority to impose, but declared that it could not be
collected in this instance because the Comptroller had demanded
that the special report be verified by the signatures of the " president and cashier and three other officers/7 instead of by the signatures
of the "president or cashier and attested by at least three directors/'
which is the language of the statute.
The directors of the bank have agreed in writing to accept as final
the decision of Mr. Justice McCoy, as shown by the following copy
of a stipulation they have filed with the Comptroller of the Currency:
THE RIGGS NATIONAL BANK OF WASHINGTON, D. C ,

Washington, D. C, June 21, 1916.
The COMPTROLLER OF THE CURRENCY,

Washington, D. C.
SIR: We understand that in addition to other considerations relating to past management and omissions to comply with certain requirements of the law, you also have
doubts as to the propriety of granting an extension of the charter of the Riggs National
Bank because of the Riggs National Bank's resistance of the authority and power
asserted by the Comptroller's Office, culminating in the suit brought by The Riggs
National Bank v. Comptroller of the Currency et al., and which was decided by Mr.
Justice McCoy on the 31st of May, 1916.
The court sustains the right of the Comptroller to have the reports and information called for, and the right to impose fines in accordance with the provisions of the
statute, if the bank should refuse them.
In order that the question as to the powers of the Comptroller's Office heretofore
raised by the bank may not be a factor in your decision of the bank's application for
the extension of its charter, we desire to assure you that, if the charter of the bank is
extended, the judgment of the court, including the upholding of the authority of the
Comptroller's Office and his powers under the national-bank act, will be accepted as
final.
Respectfully,
CHAS. C. GLOVER, President,

MILTON E. AILES, Vice President

WM. J. FLATHER, Vice President.
JOSHUA EVANS, Jr., Cashier.

H. V. HAYNES, Assistant Cashier.
MILTON E. AILES,
WM. J. FLATHER,
CHAS. C. GLOVER, Jr.,
JAMES M. JOHNSTON,
THOS. HYDE,
L. KEMP DUVAL,
CHAS. C. GLOVER,

ROBERT C. WILKINS,
E. V. MURPHY,
STERLING RUFFIN,
JOSEPH PAUL,
H. ROZIER DULANY,
L. E. JEFFRIES,
CHARLES I. CORBY,

Directors.

With this suit thus disposed of, the application of the bank is not
embarrassed by an attitude of resistance to or questioning of the law
and the authority of the Comptroller. The next question is the future
management of the bank. There are several instances where my
predecessors have refused to extend the charters of national banks
because of the unsatisfactory record of the applicant bank and the

REPORT OF THE COMPTROLLER OF THE CURRENCY.

155

conduct of its officers, and have enforced their demand for a change
of officers as a condition of the extension of the charter. In this
case it has been urged upon me that the conduct and management
of the bank under its present officers for the past 18 months is an
earnest that it will be managed in the future in full compliance with
the law. Whatever doubts the Comptroller has entertained in this
particular have been sufficiently satisfied by a written pledge, signed
by all the directors and filed with the Comptroller of the Currency,
that the bank's business and affairs will be conducted in the future
in scrupulous compliance with the law and all lawful rules, regulations, and requirements of the Comptroller of the Currency. The
following is a copy of said pledge:
THE RIGGS NATIONAL BANK OF WASHINGTON, D.

Washington, D. C, June 21, 1916.
The

COMPTROLLER OF THE CURRENCY,

Washington, D. C.
SIR: We, the undersigned directors of the Riggs National Bank, hereby solemnly
and severally pledge ourselves to give special attention in the future to the manner
in which the officers of the Riggs National Bank shall carry on and conduct the business and affairs of the bank, to the end that the business operations and affairs of the
bank in the future shall be conducted in strict compliance with the national-bank act
and all the laws of the United States and in conformity with the lawful rules, regulations, and requirements of the Office of the Comptroller of the Currency, and to take
all such action as shall be necessary to secure that end.
The charter of the Riggs National Bank expires by limitation on the 26th of June,
1916. The stockholders of said bank, including the undersigned directors, have made
application according to law to the Comptroller of the Currency for an extension of
its charter for a further period of 20 years. Because of the controversies and issues
which gave rise to the litigation in the equity suit above referred to, and in order
to remove any doubts of the Comptroller as to the future conduct and management
of the officers of the said the Riggs National Bank, we hereby give him this express
and written assurance, in the hope that his doubts may be allayed, and that the said
application for an extension of the charter of the bank for the future period of 20 years
will be granted.
Respectfully,
CHARLES I. CORBY.
THOS. HYDE.
MILTON E. AILES.
JAMES M. JOHNSTON.
L. KEMP DUVAL.
L. E. JEFFRIES.
E. V. MURPHY.

ROBERT C. WILKINS.
WM. J. FLATHER.
JOSEPH PAUL.
CHAS. C. GLOVER, Jr.
CHAS. C. GLOVER.
H. ROZIER DULANY.
STERLING RUFFIN.

These questions being satisfactorily disposed of, there is but one
other to be considered,.and that is the solvency and financial condition of the bank.
A special examination, as required by the national-bank act, has
been made since the filing of the application for the extension of the
charter, and the report of the examiners as to the financial condition
of the bank is found to be satisfactory.
In view, therefore, of the solemn pledge given by the directors of
the bank that they will give special attention, in the future, to the
manner in which the officers and employees of the Riggs National
Bank shall carry on and conduct the business and affairs of the bank
to the end that the business operations and affairs.of the bank in
the future shall be conducted in strict compliance with the nationalbank act and all the laws of the United States, and in conformity
with the lawful rules, regulations, and requirements of the Office of
the Comptroller of the Currency, and to take all such action as shall
be necessary to secure that end, and in view of the fact that the bank

63366°—17
11

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REPORT OF THE COMPTROLLER OF THE CURRENCY.

is solvent, and when properly conducted will serve a useful purpose
in the community, and that a refusal to approve your application
for an amendment to your charter extending your period of succession might work injustice to innocent stockholders, many of whom
may have no potential influence or voice in the selection of the directors of the bank or its officers since they may be in a minority, I have
concluded to issue a certificate of approval of your application for
an extension of your charter, with the expectation that the officers
and directors of the Riggs National Bank, profiting by the experience
of the past and the decision of the court in the litigation to which I
have referred, will scrupulously conform to the provisions of the
national-bank act and the rules, regulations, and requirements of the
Comptroller's Office in the future. By doing this and confining itself
to the legitimate business of banking, the Riggs National Bank can
serve this community usefully and honorably. So long as it does this
it will have the support and approval of the duly constituted authorities of the Government.
Respectfully,

JNO. SKELTON WILLIAMS,

Comptroller of the Currency.

EXHIBIT D.
Number of officers and employees of national banks on Sept. 12, 1916, with aggregate and
average present monthly salaries.

Southern States:
Reserve cities
Country banks

Total

.
*

295,044
971,179

124.54
107.24

1,266,223

110.83

385,405
536,477
1,125,135

117.86
117.47
94.92

2,047,017

103.96

151,810
685,243

127.04
120.75

837,053

121.84

2,352
2,951

Total
Pacific States:
Reserve cities
Country banks

114.08

6,870

Total
Western States:
Reserve cities
Country banks

2,131,709

1,195
5,675

Other reserve cities
Country banks

130.09
133.16
95.77

19,690

Total
Middle States:

753,987
510,127
867,595

3,270
4,567
11,853

110.23

11,425

487,208

2,369
9,056

Total

$125.68
103.35

18,686

Country banks

$137,456
349,752

5,796
3,831
9,059

Total
Eastern States:
Central reserve cities

Aggregate
monthly
salaries.

4,420

New England States:
Reserve cities
Country banks

Number
employed.

1,036
3,384

Geographical section.

318,568
281,232

135.45
95.30

Average
monthly
salaries.

5,303

599,800

113.11

66,394

7,369,010

110.99

9,066
15,350
41,978

Total United States

1,139,392
1,949,482
4,280,136

125.68
127.00
101.96

66,394

7,369,010

110.99

RECAPITULATION.

Central reserve cities
Other reserve cities
Country banks
Total United States..

157

EXHIBIT E.
OFFICERS AND EMPLOYEES OF NATIONAL BANKS AND THEIR SALARIES (AS SHOWN
BY REPORTS OF CONDITION FOR SEPT. 12, 1916.)

States.

Maine
New Hampshire..
Vermont
Massachusetts
Rhode Island
Connecticut

Number
of officers
and employees.

Aggregate
monthly
salaries.

Average
monthly
salaries.

397
348
252
2,407
166
850

$33,519.00
29,470.00
22,821.00
288,150.00
20,866.00
92,382.00

$84.43
84.68
90.56
119.71
125.69
108.68

4,420

487,208.00

110.23

New York
New Jersey
Pennsylvania
Delaware
Maryland
District of Columbia..

9,585 1,135,793.74
1,965
202,420.00
5,646
647,106.43
125
9,104.00
995
96,277.86
370
41,007.65

118.50
103.01
114.61
72.83
96.75
110.83

Eastern States..

18,686 2,131,709.68

114.08

125,042.96
57,458.00
59,594.00
54,849.14
120,811.60
58,085.00
71,726.51
29,547.00
55,195.05
409,277.57
38,956.00
90,368.21
95,312.03
11,425 1,266,223.07

100.03
88.26
115.49
106.71
144.17
113.23
109.84
103.31
125.44
117.37
100.40
93.94
102.82
103.90
95.93
103.34
108.15
84.74
107.18
102.24
124.13

19,690

360,129.50
176,603.36
545,142.67
130,217.22
131,169.88
264,310.83
202,732.93
236,710.58
2,047,016.97

720
372
1,324
1,247
469
193
926
216
1,403

72,177.00
63,137.00
146,074.95
121,742.35
104,355.00
21,752.00
113,923.09
27,067.00
166,824.48

100.25
169.72
110.33
97.63
222.51
112.70
123.03
125.31
118.91

6,870

837,052.87

121.84

854
736
2,887
341
255
64
160

94,866.20
82,954.82
323,883.73
37,649.00
29,603.50
8,383.00
21,545.00

111.08
112.71
112.19
110.41
116.09
130.98
134.66

5,297

598,885.25

113.06

915.00

152.50

66,394

7,369,010.84

110.99

New England States.

Virginia
West Virginia..
North Carolina.
South Carolina.
Georgia
Florida
Alabama
Mississippi
Louisiana
Texas
Arkansas
Kentucky
Tennessee
Southern States.
Ohio
Indiana...
Illinois
Michigan..
Wisconsin.
Minnesota.
Iowa
Missouri...
Middle States.
North Dakota.
South Dakota.
Nebraska
Kansas
Montana
Colorado
New Mexico...
Oklahoma
Western States.
Washington.
Oregon
California
Idaho
Utah
Nevada
Arizona
Pacific States
Alaska, nonmember banks
Grand total United States.

158

1,250
651
516
514
838
513
653
286
440
3,487
388
962
927
3,466
1,841
5,275
1,204
1,548
2,466
1,983
1,907

110.83

103.96

EXHIBIT

Schedule showing annual salaries paid president and cashier, as shown by reports of condition for Mar. 7, 1916.
[In thousands of dollars.]
Capital of less than
$50,000 and less
than $100,000.
$50,000.
Number
banks. NumAmount. Num- Amount.
ber.
ber.

$100,000 and less
than $250,000.
Num- Amount.
ber.

PRESIDENT.

Central reserve cities:
Salaries paid
No salaries paid
Other reserve cities:

49
1

20,100

302
15

59
6

281,400

No salanes paid
Country banks:
Salaries paid
No salanes paid

4,260
2,950

981
1,521

989,308

1,431
929

1,937,313

1,512 3,500,819
455

Total United States:
Salaries paid
No salaries paid

4,611
2,966

981
1,521

989,308

1,431
929

1,937,313

1,575 3,802,31f
461

7,. 577

2,502

Total
Average salary per bank of those
banks T>avin2 salarv
Average salary per bank of all banks.

2,360
1 354
821

1,008
395

7,577

2,036
2,414
1,868

CASHIER.

Central reserve cities:
Salaries Daid
No salaries paid
Other reserve cities:
Salaries paid
No salaries paid
Country banks:
Salaries paid
No salanes paid

7,126
84

2,461
41

3,494,502

2,339
21

4,170,821

1,946 4,830,517
21

Total United States:
Salaries paid
No salaries paid

7,486
91

2,461
41

3,494,502

2,339
21

4,170,821

2,013 5,058,227
23

7,577

2,502

Total
Average salary per bank of those
banks Davinsr salarv
Average salary per bank of all banks.

50
0

13,750

310
7

63
2

213,960

2,360
1,402
1,397

2,036
1 783
1,767

2,513
2,484

159

100

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Schedule showing annual salaries paid president and cashier, as shown by reports ofcondir
tionfor Mar. 7, 1916—Continued.
[In thousands of dollars.]
$250,000 and less
than $500,000.

$500,000 and less
than $1,000,000.

$1,000,000 and less
than $5,000,000.

$5,000,000 and
over.

Number.

Amount.

Number.

Amount.

Number.

Amount.

36,000

32,000

28
1

629,500

490,000

Num- Amount.
ber.

PRESIDENT.

Central reserve cities:
Salaries paid
Other reserve cities:
Salaries paid
No salanes paid
Country banks:
Salaries paid
No salaries paid

64
5

383,800

73
2

577,440

98
1

1,360,200

8
1

294,000

214
30

905,162

90
15

570,350

31
0

337,000

1
0

60,000

Total United States:
Salaries paid
No salanes paid

282
35

1,324,962

166
17

1,179,790

157
2

2,326,700

19
1

844,000

Total

317

Average salary per bank
of those banks paying
salary
Average salary per bank
of all banks

159

183

4,698

7,107

14,820

44,421

4,179

6,447

14,633

42,200

CASHIER.

•Central reserve cities:
Salaries paid
No salaries paid
Other reserve cities:
Salaries paid
No salanes paid
Country banks:
Salaries paid
No salaries paid
Total United States:
Salaries paid
No salanes paid
Total
Average salary per bank
of those banks paying
salary
Average salary per bank
of all banks

18,700

15,500

251,200

120,500

65
4

269,020

74
1

351,835

636,450

84,200

243
1

851,530

105

450,600

163,250

5,500

312
5

1,139,250

182
1

817,935

159

1,050,900

210,200

317

159

183

3,651

4,494

6,609

10,510

3,594

4,470

6,609

10,510

EXHIBIT

Number of banks that pay fees to each member of executive committee for each meeting.
[As shown by reports of condition for May 1,1915.]
Central
reserve
cities.
Less than $1
SI but less than $2..
$2 but less than $3.
$3 but less than $4..
$4 but less than $5.
$5..
More than $5 but less than $10-.
•10
More than $10
Total..

Other
reserve
cities.

105

Country
banks.

Total
United
States.

11
174
244
97
14
204
19
59
19

12
179
259
105
14
247
19
106
33

841

974

161

EXHIBIT

Number of depositors in national banks as shown by reports of condition for May 1,
1916, compared with June SO, 1910, with number and per cent of increase.
Number
depositors
May 1,
1916.
Maine
New Hampshire...
Vermont
Massachusetts
Rhode Island...
Connecticut

.
.

. .

98,792
39,677
39,461
201,038
16,945
64,823

39,467
42,858
35; 581
187,971
9,194
73,852

Per cent
increase.

39.95
108.02
90.17
93.50
54.26
113.92

Kentucky

Tennessee

Southern States
Ohio

Indiana

Illinois
Michigan
Wisconsin....
Minnesota
Iowa
Missouri
Middle States
North Dakota
South Dakota
Nebraska. .
Kansas .*....
Montana
Wyoming
Colorado..
New Mexico
Oklahoma

Western States
Washington
Oregon
California
Idaho
Utah
Nevada
Arizona
Alaska
Pacific States
Hawaii and Porto Rico
Total United States

162

. . .

2,400,213

1,629,651

67.88

149,306
99,892
59,795
39,217
101,348
62,892
76,297
35,038
38,549
367,613
34,823
134,647
73,329

232,356
146,148
91,031
85,206
109,912
80,436
101,131
37,016
37,559
291,161
50,643
. 94,984
184,179

155.62
146.31
152.24
217.27
108.45
127.86
132.55
105.65
97.44
79.21
145.43
70.54
251.17

1,272,746

1,541,762

121.14

470,684
287,012
470,727
203,308
217,090
233,583
201,156
147,949

321,076
187,205
376,910
101,951
191,783
231,702
252,313
110,430

68.22
65.22
80.07
50.15
88.34
99.19
125.43
74.64

4,004,879

....

79.06
85.84
60.5a
5.30
39.74
118.36

791,760
474,217
847,637
305,259
408,873
465,285
453,469
258,379

r. T

84.42

529,616
244,151
762,738
1,393
49,646
42,107

2,814,508

388,923

669,855
284,419
1,259,140
26,298
124,926
35,575

381,662
246,040
150,826
124,423
211,260
143,328
177,428
72,054
76,108
658,774
85,466
229,631
257,508

....

460,736

1,199,471
528,570
2,021,878
27,691
174,572
77,682
4,029,864

Eastern States
Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida...
Alabama
Mississippi
Louisiana
Texas
Arkansas

138,259
82,535
75,042
389,009
26,139
138,675

Increase.

849,659

New England States
New York
New J e r s e y . . . .
Pennsylvania
Delaware.
Maryland..
District of Columbia

Number
depositors
June 30,
1910.

2,231,509

1,773,370

79.47

132,183
136,747
231,959
283,303
108,398
41,688
194,379
42,327
312,826

63,881
64,295
165,680
185,965
48,490
23,983
129 723
24,801
108,475

68,302
72,452
66,279
97,338
59,908
17,705
64,656
17,526
204,351

106.92
112.69
40.00
52.34
123.55
73.82
49.84
70.67
188.39

1,483,810

815,293

668,517

82.00

202,244
179,741
529,290
83,415
59,209
13,542
29,901
2,709

116,082
71,479
234,561
30,928
26,688
11,448
14,556
1,620

86,162
108,262
294,729
52,487
32,521
2,094
15,345
1,089

74.23
151.46
125.65
169.71
121.86
18.29
105.42
67.22

1,100,051

507,362

592,689

116.82

5,288

2,609

2,679

102.68

14,288,059

7,690,468

6,597,591

85.79

REPORT OF THE COMPTROLLEB OF THE CURRENCY.

163

Number of depositors in national banks as shown by reports of condition for May 1,1916,
compared with June 30, 1910, with number and per cent of increase—Continued.
RECAPITULATION,
Central
reserve
cities.
Number of demand depositors to whom interest is
allowed
Number of demand depositors to whom no interest is
allowed
Number of time depositors to whom interest is allowed..
Number of time depositors to whom no interest is
allowed...
Total

Other
reserve
cities.

Country
banks.

Total.

54,239

151,385

1,293,321

1,498,945

187,068
64,346

1,033,969
581,481

6,774,307
4,015,291

7,995,344
4,661,118

11,974

120,632

132,652

305,699

1,778,809

12,203,551

14,288,059

EXHIBIT I,
Schedule of national hanks arranged according to eight groups, showing number of banks,
capital, and surplus, by central reserve cities, other reserve cities, country banks, and
total United States, according to reports of condition for June 30, 1916.
[In thousands of dollars.}
Central reserve cities^
Banks with capital of—

Number.

Capital.

Surplus.

Number.

1,000
1,100
1,750
61,000
112,500

Less than $50,000
$50,000, but less than $100,000
$100,000 even
Over $100,000, but less than $250,000..
$250,000, but less than $500,000
,
$500,000, but less than $1,000,000
$1,000,000, but less than $5,000,000...,
$5,000,000 and over
,
Total

Other reserve cities.

4S5
440
1,750
66,690
92,500

14
50
67
76
100
8

1,400.0
925.5
9,607.1
6,798.1
20,105.0
15,754.3
42,150.0
28,432.0
156,355.7. 119,540.0
52,500.0
26,100.0

177,350

161,865

315

282,117.8

Country banks.
Banks with capital of—

Less than $50,000
$50,000, but less than $100,000
$100,000 even
Over $100,000, but less than $250,000.
$250,000, but less than $500,000
$500,000, but less than $1,000,000
$1,000,000, but less than $5,000,000..,
$5,000,000 and over
Total

164

Number.

Capital.

Surplus.

Capital.

Surplus.

197,549.9

Total.
Number.

Capital.

Surplus.

2,504
2,366
1,316
647
242
107
31
1

66,312.5
126,745.1
131,600.0
110,184.2
73,988.6
58,800.0
33,950.0
5,000.0

26,788.7
71,535.0
85,433.2
75,562.5
50,804.2
36,860.9
21,025.0
4,000.0

2,504
2,366
1,330
702
313
186
160
18

66.312.5
126,745.1
133,000.0
120,791.3
95.193.6
102,700.0
251,305.7
170,000.0

26,788.7
71,535.0
86,358.7
82,845.6
66,998.5
67,042.9
207,255.0
122,600.0

7,214

606,580.4

372,009.5

7,579

1,066,048.2

731,424.4

EXHIBIT J.

LOANS BY NATIONAL BANKS TO NONDEPOSITOB.S.
Amount of money loaned to borrowers who keep no deposit account with bank, as shown by
reports of conditions of national banks on Dec. SI, 1915.
[In thousands of dollars.]
Not secured
by collateral.

Secured bystocks and
bonds.

Secured by
other personal
property, etc.

Total.

Geographical sections.
NumNumNumNumber of Amount. ber of Amount, ber of Amount. ber of Amount,
loans.
loans.
loans.
loans.
New England States:
Reserve cities
Country banks
Total

1,413
36,734

34,326
65,525

1,185

38,030
29,947

38,147

99,851

8,021

67,977

5,678
6,235
194,000

195,348 6,537
48,121 4,400
125,560 24,324

571,401
72,006
66,331

205,913

369,029 35,261

709,738

6,120
140,063

8,533 2,341
51,717 13,483

8,414 2,236
19,794 61,154

5,467 10,697
22,695 214,700

146,183

60,250 15,824

28,208 63,390

28,162

109,807 1,571
38,070 3,848
141,779 21,446

24,899
390
29,033 2,831
42,831 49,628

8,864
18,333
32,928

289,656 26,865

96,763 52,849

60,1251 399,706

Eastern States:
Central reserve city...
Other reserve cities...
Country banks
Total
Southern States:
Reserve cities
Country banks
Total

Middle States:
Central reserve cities.. 5,079
Other reserve cities.., 7,694
307,219
Country banks
Total
, 319,992
Western States:
2,449
Reserve cities
Country banks
, 72,433
Total
, 74,882
Pacific States:
Reserve cities
\ 4,011
Country banks 1
23,049
Total
27,060
Total United States.

Total
loans
and discounts.

8,227
5,443

2,837
46,317

80,583
100,915

245,029
333,011

13,670

49,154

181,498

578,040

763
666

20,858
14,694
6,614

12,978
11,301
225,207

8,312

42,166

249,486 1,120,933 3,050,704

239
2,747

787,6071,648,440
134,821 524,764
198,505 877,500

22,414
94,206

262,382
625,000

225,397

116,620

887,382

7,040
14,373
378,293

143,570
85,436
217,538

480,288
519,406
916,253

446,544 1,915,947

7,617
32,868

664
4,454

2,951 3,295
5,307 76,241

11,825
33,037

6,408
153,128

22,393
71,212

119,217
355,455

40,485

5,118

8,258 79,536

44,862

159,536

93,605

474,672

25,251
19,557

1,231
2,149

3,736
6,083

5,927
30,338

40,067
32,672

247,193
201,520

44,808

3,380

11,080
7,032

685
5,140

18,112

5,825

9,819

812,177

904,079 94,469

929,056 212,898

198,8041,119,544 2,

10,757
27,922
773,498

305,155 8,108
161,918 13,669
437,006 72,692

596,300 1,153
161,514 9,952
171,242 201
",793

29,722
20,018
62,281
51,543
106,801 1,047,983

812,177

904,079 94,469

929,056 212,898

198,804 1,119,544 2,031,939 7,355,458

.,939 7,

KECAPITULATION.

Central reserve cities
Other reserve cities
Country banks
Total

931. 177 2 ,128,728
385, 7131 ,917,991
715, 049 3!
,308,739

i Does not include Alaska or Hawaii.

165

EXHIBIT

Statement of amount of loans secured by warehouse receipts, amount of farm loans,
and also loans made for correspondents, as shown by reports of condition of national
banks on June 30, 1916.
Loans secured by warehouse receipts.
For
cotton.

Other
than
cotton.

Loans made for correspondents.
Farm loans.
Secured by
collateral.

Not
secured by
collateral.

CENTRAL RESERVE CITIES.

New York City
Chicago . ..
St. Louis

...

Central reserve cities

$5,148,300 $20,087,100
373,000
9,667,500
276,500
1,008,200

$244,561,500
5,335,600
779,400

$11,307,700
502,100

5,797,800

30,762,800

250,676,500

11,809,800

6,082,500

2,944,300

16,225,500

141,700

846,700
9,100
55,100
4,100

423,200
57,900
4,161,700
592,200
2,592,GOO
52,100

6,433,300
1,640,400
3,486,500
118,400

20,000
519,200
555,000
50,000

915,000

7,879,700

10,500

11,678,600

1,144,200

643,000
1,061,400
635,300
336,800
325,500
2,345,000
190,000

494,600
218,600
151,900
48,800
94,300
1,860,300

119,200
86,200
1,000

65,100

98,000

OTHER RESERVE CITIES.

Boston (New England States)
Albany
Brooklyn
Philadelphia
Pittsburgh . . .
Baltimore
Washington
Eastern States
Richmond
Charleston
Atlanta
Savannah
Birmingham
New Orleans
Dallas.
Fort Worth
Galveston
Houston
San Antonio
Waco
Louisville
Chattanooga
Nashville
Southern States
Cincinnati .
Cleveland
Columbus
Indianapolis
Detroit
Milwaukee
Minneapolis
St. Paul
Cedar Rapids
Des Moines
Dubuque
Sioux City
Kansas City, Mo
St. Joseph
Middle Western States
166

218,300
1,592,100
189,300
95,100
140,200

366,500
57,800
15,200
1,715,300
102,800
233,800

$10,500

197,400
37,900
9,000
39,600
155,000
46,400
8,900

5,359,900
1,760,900
619,300
100,500
339,700
541,500
399,800
2,596,800
2,183,100
16,800
139,400
14,800
92,200
814,700
62,900

1,854,200
253,400
268,900
79,400
147,700
184,900
50,500
112,500

9,682,400

3,096,800

26,000

556,900

52,300

407,900

495,500
9,000

11,400

92,800

250,500

2,800
66,500

7,772,000

15,000

613,700

769,900

8,000
16,700
120,600

1,179,500

400,800

4,395,400

105,200

87,900

35,200

175,000

50,000

14,900
42,000

85,000
5,000

4,715,200

280,400

REPOBT OF THE COMPTROLLER OF THE CURRENCY.

167

Other
than
cotton.

Loans made for correspondents.
Farm loans.
Secured by
collateral.

Not
secured by
collateral.

$5,000

$234,700

7,500

15,500

OTHER RESERVE CITIES—continued.

$28,500
1,004,000
52,500

138,900

Lincoln
Omaha
Kansas City, Kans
Topeka
Wichita

1,476,600

526,000

12,500

250,200

456,700
323,600
45,000
661,800
594,100
3,171,100
122,200

2,400
61,700

2,600
241,600
69,000
3,300

322,500
368,400
274,000

83,000

112,900
10,000
1,087,800

151,000
101,700

Pueblo
Muskogee
Oklahoma City

$111,300

Western States
Seattle
Spokane
. .
Tacoma
Portland
Los Angeles
San Francisco
Salt Lake Citv

$14,000
181,000
40,000
5,000
30,000
216,000
7,000
1,000
32,000

...
.

111,300

. . .
1,800
15,700

13,900
166,000
9,000

17,500

5,374,500

253,000

399,500

15,455,200

32,717,400

4,656,200

34,210,800

3,305,7()0

21,253,000

63,480,200

4,656,200

284,887,300

15,114,900

39,800

Pacific States

10,000

Other reserve cities
All reserve cities
COUNTRY BANKS.

5,000
802,200
1,312,800
202,400

1,600
1,375,600
65,600
170,100

118,100
128,200
265,600
32,000
2,200
89,800

2,322,400

1,652,700

635,900

10,000

121,500
42,400
17,700

2,721,400
543,900
650,900
9,200
44,800

609,200
174,200
810,600
42,800
486,300

30,700

70,300

10,000

20,300

181,600

3,970,200

2,123,100

45,700

1,308,400
5,000
1,078,100
1,558,400
10,660,200
105,800
2,341,500
1,012,400
696,800
478,100
603,100
452,600

564,800
4,600
30,500
19,900
363,700
756,300
75,800
50,200
55,000
160,200
182,800
1,090,500
556,100

446,600
115,000
432,200
504,300
266,800
400,100
459,200
306,300
89,300
924,100
301,100
448,300
229,700

20,300,400

3,910,400

4,923,000

8,700
14,800
8,900

845,900
503,400
741,500
314,400
387,400
692,100
163,900
9,900

3,846,400
2,829,300
5,074,500
1,789,800
3,147,500
5,778,600
1,820,000
381,400

3,658,500

24,667,500

Maine
Vermont
Massachusetts
Rhode Island
Connecticut
. . .
New England States
New York
New Jersey
Delaware

...

District of Columbia
Eastern States
Virginia
West Virginia
North Carolina
South Carolina
Florida
Alabama
Texas
Arkansas
Kentucky
Tennessee
Southern States
Ohio
Indiana
Illinois
Michigan
Wisconsin .
Minnesota
Iowa
Missouri
Middle States

6,900
9,500
48,800

5,000
90,600

5,000

4,800

3,000

437,500

327,800

26,300

5,300

473,600

336,100

58,200
5,000
76,000
139,200

31,000
20,700
5,000
175,500
253,000
87,700
572,900

168

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Other
than
cotton.

Loans made for correspondents.
Farmlands.
Not
Secured by secured by
collateral.
collateral.

COUNTRY BANKS—continued.

North D akota
South Dakota
Nebraska

$185,800
235,700
40,200
166,200
87,400

106,300

62,500

$1,093,400
1,233,500
669,700
663,600
731,800
158,700
295,100
154,400
389,900

120,100

787,200

5,390,100

79 900

618,000
532,300
606,400
301,700
7,100
9,500
214,000
1 000

424,500
209,700
2,036,600
150,700
58,900
409,400
41,500

2,290,000

3,331,300

$500

Montana
Wyoming
Colorado
New Mexico
Oklahoma

12,300
1,000

Western States
Washington
Oregon
California
Idaho
Utah
Nevada
Arizona
Alaska

39,800

Pacific States

119,700

9,400

Hawaii (island possessions)
Country banks

Total United States

$31,600

$100,300

3,000

2,000
4,900

42,300
76,900

107,200

16,000

99,600
18,300

4,200
20,200

117,900

10,000
. .

23,093,000

16,269,000

41,080,900

765,600

1,224,700

44,346,000

79,749,200

45,737,100

285,652,900

16,339,600

EXHIBIT L.
Amount loaned by national banks to national banks and State banks and trust companies in same and in other Federal reserve districts on bills payable and rediscounts,
also on certificates of deposits as shown by reports of condition for June 30, 1916.
[In thousands of dollars.]
In same Federal reserve district as
this bank.
To national
banks.

To State banks and
trust companies.

In other Federal reserve districts.
To national
v
banks.

To State banks and
trust companies.

Geographical section.
On
bills
payable
and
rediscount.
New England States:
Reserve cities
Country banks
Total
Eastern States:
Central reserve city
Other reserve cities
Country banks
Total
Southern States:
Reserve cities
Country banks
Total

Total

Total
Pacific States:
Reserve cities
Country banks
Total

On
certificates Total.
of deposit.

On
On
bills
On
bills
On
pay- certifi- pay- certifiable
able
cates
cates Total.
and
of de- and
of deredis- posit. redis- posit.
count.
count.

1,178
75

679
68

595
146

2,780
314

353 1,253

747

741

3,094

1,800
4,373
657

225

4,835
6,714
1,215

328
25

302

328
26

302

354

16,968
1,187
3

604
20
40

26,986
1,063
29

85 44,643
12 2,282
480
408

225 12,764

18,158

664

28,078

505 47,405

2,677
2,341
55

358

5,073

636 6,830

2,709
684

895 9,383
1,353 5,366

346
612

13,333
8,015

293
78

555

415
254

50
172

758
1,059

3,393

2,248 14,749

958 21,348

371

555

669

222

1,817
4,000
5,692
5,246

Middle States:
Central reserve cities... 2,396
Other reserve cities
5,113
Country banks
465

Western States:
Reserve cities
Country banks

On
On
bills
certifi- paycates able
of de- and
posit. rediscount.

7,974

278

164 6,947
743
1,453 9,720 2,976
991 3,982 3,306

10,250
19,262
8,744

1,355
1,472
151

50
68
1,806

2,560
35
4,010
142
368 2,921

2,608 20,649

7,025

38,256

2,978

1,924

6,938

3,098

14,938

544
134

109
284

1,470
1,366

314
1,015

2,437
2,799

55
34

214
46

45
67

324
147

678

393 2,836

1,329

5,236

260

112

471

781
308
1,089

3,750
1,174

114

30
20

144
43

4,924

114

8,788 47,518 11,367

85,622

369
109
478

Total United States.. 17,949

1,193
457
1,650

1,407
300
1,707

187

21,523

3,281

36,361 4,007

65,172

743 15,084
5,012 48,276
5,612 22,261

18,324
2,967
232

654
142
2,485

29,546
6,118
697

85,621

21,523

3,281

36,361 4,007

RECAPITULATION.
Central reserve cities
Other reserve cities
Country banks
Total

5,073
11,404
1,472

521 8,747
4,828 27,032
3,438 11,739

17,949

8,787 47,518 11,367

121 48,645
299 9,526
3,587 7,001
65,172

As reported May 1,1916.
Central reserve cities
Other reserve cities
Country banks
Total
Increase of June30over May 1.

4,025
421 7,444
825 12,715
11,635 5,018 24,691 5,118 46,462
1,442 3,342 10,987 4,952 20,723
17,102 8,781 43,122 10,895
847

6~ 4,396

472

412
14,161
166
2,570
154 2,497

79, 900 16,885
5,721

4,638

56 41,897
27,268
303 8,447
5,408
572 4,083
7,306

3,075 33,248

4,442

57,650

3,113

435

7,522

206

169

170

REPORT OF THE COMPTROLLER OF THE CURRENCY.

Amount loaned by national banks to national banks and State banks and trust companies
in same and in other Federal reserve districts on bills payable and rediscounts, also on
certificates of deposit as shown by reports of condition for June 30, 1916—Continued.
SUMMARY.
Amount loaned
on—
Date.

Bills
payable
and
rediscount.

June 30,1916:
Central reserve cities
Other reserve cities
Country banks
Total
May 1,1916:
Central reserve cities
Other reserve cities
Country banks
Total
Increase of June 30 over May 1

Certificate of
deposit.

Total.

61,690
47,521
14,140
123,351
*

2,039
10,281
15,122

63,729
57,802
29,262

27,442

150,793

52,898
44,304
13,155

1,714
10,605
14,874

54,612
54,909
28,029

110,357

27,193

137,550

12,994

249

13,243

EXHIBIT M.
Loans made by national banhs to other banks and trust companies, as shown by reports of
condition for Sept. 12, 1916.
[In thousands of dollars.]
I n same Federal reserve district as reporting bank.
To national
banks.

To State banks and
trust companies.

In other Federal reserve districts.
To national
banks.

To State banks and
trust companies.

Geographical section.
On bills
payable
and
rediscounts.

New England States:
Reserve cities
Country banks

On On bills
certifi- Payable
cates
and
of de- redisposit. counts.

On
certificates
of deposit.

On bills
Total. able
and
rediscounts.

On On bills
certifi- pavable
cates
of de- and
redisposit.
counts.

84
90

541
58

1,172
233

2,726
421

174

Total
Eastern States:
Central reserve city..
Other reserve cities..
Country banks

929
40
969

599

1,405

3,147

2,697
3,363
367

25
285

5, 555
4,775
1,175

19,233
768
3

2,283
550
1,412
49 ~"*474'

On
certificates Total.
of deposit.

249
76

201

325

775
20
133

29,516
1,298
16

645
62
405

50,169
2,148
557

201

3, 744

1,024

. 6, 427

310

11, 505

20 004

928

30, 830

1,112

52, 874

3, 343
724

993
918

9,983
6,466

758
909

15, 077
9,017

240
85

301

576
163

272

816
821

......

4,067

1,911

16, 449

1,667

24, 094

325

301

739

272

1,637

Middle States:
Central reserve cities.
Other reserve cities..
Country banks

3,225
5,062
478

535
1,518
743

8,460
10, 557
3,827

171
3,969
2,893

12,391
21,106
7,941

1,643
1,456
54

32
83
1,881

2,841
3, 490
476

176
171
4,014

4,692
o. 200
6', 425

8,765

2.796

22, 844

7,033

41,438

3,153

1,996 ! 6.807
7

4,361

16,317

415
113

128
353

1, 003
1,099

288 - 1,834
1, 031
2,596

15
101

25
9

147
103

74
41

261
254

528

481

2,102

1,319

4,430

116

. 34

250

115

297
52

670
427

1,050
509

424
469

2, 441
1,457

158

10
15

168
42

349

1,097

1, 559

893

3,898

158

210

TotalUnited States 17, 627 8,278

49,980

12,627

88, 512

23, 616

3,342

38,985

5,935

71,878

Total
Southern States:
Reserve cities
Country banks
Total

Total
Western States:
Reserve cities
Countr v banks
Total
Pacific States:
Reserve cities
Country banks
Total

...

;

RECAPITULATION.

Central reserve cities
Other reserve cities
Country banks

5,508
10.613
1,506

1,085
4,238
2,955

11,157
26, 497
12,326

196
6,611
5,820

17,946
47,959
22, 607

20,876
2,497
243

807
158
2,377

32,357
5,870
758

821
317
4 797

54,861
8,842

TotalUnited States 17, 627

8,278

49,980

12,627

88, 512

23, 616

3,342

38,985

5,935

71,878

* 17,102 8,781
17,949 8,788
17, 627 8,278

43,123
47,518
49,980

10, 894
11,367

79, 900
85, 622
88,512

16,885
21, 523
23, 616

3,075
3,281
3,342

33,248
36,361
38,985

4,442
4,007
f, 935

57,650
65,172
71, 878

R 17S

COMPARISONS.

May 1,1916
June 30,1916
Sept. 12,1916

63366°—17

12,627

171

EXHIBIT

Money borrowed by national banks in same Federal Reserve district and also from banks
in other Federal Reserve districts, Sept. 12,1916.
FROM BANKS IN SAME FEDERAL RESERVE DISTRICT.
[In thousands of dollars.]
With national banks.
Geographical section.
Bills
payable.

New England States:
Reserve cities
Country banks
Total

With State banks and
trust companies.

CertifiCertifi- Bills
Redis- cates of pay- Redis- cates of
counts. deposit. able. counts. deposit.

Total.

Rediscounts
with
Federal reserve
bank.

Rediscounts,
floating
items.1

418
164

1,587

803

2,517

582

6,320

31,736
305
1,387

300

500

107

2,536
305
2,118

4,387
416
362

7,145
1,065

494
494

345

557

107

4,959

5,165

8,208

3,524

925

60
482

185

• 35

60
5,220

1,311
14,303

3,524

925

542

185

5,280

15,614

855

450
910

450
3,602

1,150
757
3,717

58
26

1,724
1,724

855
—

1,360
—

4,052

5,624

476

Total

803

1,398
1,119

6,320

3,428

Eastern States:
Central reserve cities
Other reserve cities
Country banks

1,398
189 ;

380

187

1,105

3,152

476

380

187

1,105

3 152

144

174

550

923

21
362

Southern States:
Country banks
Total
Middle States:
Central reserve cities
Other reserve cities
Country banks
Total
Western States:
Reserve cities

Country banks
Total

. ...

Pacific States:
Reserve cities
Country banks
Total

144

174

550

Total United S t a t e s . . . 10,883

2,885

3,787

803

300
510
2,977

500

3,787

923

383

272

206

18,836

30,520

14,612

272

206

2,536
2,213
14,087

5,537
2,923
22,060

7,201
7,411

303
803

272

206

18,836

30,520

14,612

EtCAPITULATION.

Central reserve cities
Other reserve cities
Country banks
Total United States...

1,736
1,703
7,444 "2,*885*
10,883

2,885

i Represents items that were abstracted as rediscounts but not shown in Schedule 16.
* Acceptances guaranteed.
• 86,000 bonds sold with agreement to repurchase included.

172

EEPOET OF THE COMPTROLLER OF THE CURRENCY.

173

Money borrowed by national banks in same Federad Reserve district and also from banks
in other Federal Reserve districts, Sept. 12,1916—Continued.
FROM BANKS IN OTHER FEDERAL RESERVE DISTRICTS.
[In thousands of dollars.)
W i t h State banks and trust
companies.

With national banks-

Total.

Geographical sections.
Bills
payable.

New England States:
Reserve cities
Country banks
Total
Eastern States:
Central reserve cities
Other reserve cities
Country banks
Total
...
Southern States:
Reserve cities
Country banks
Total.
Middle States:
Central reserve cities
Other reserve cities
Country banks
Total
Western States:
Reserve cities
Country banks
;
Total.
Pacific States:
Reserve cities
-.
Country banks
Total
Total United States

Rediscounts.

Certificates of
deposit.

Bills
payable.

Rediscounts.

Certificates of
deposit.

275

355

639

275

355

639

2
475
403

152
65

880

217

1,855
8,627

100

2
727
473

100

1,202

1,123
3,167

506

267

50
50

3,028
12,656

10,482

4,290

506

267

100

15,684

200
755

447

320

200
1,597

955

447

320

1,797

990

1,080

990

1,080

51.

13,647

5,066

1,214

397

175

20,538

2
2,530
11,115

1,275
3,791

1,214

100
297

50
125

2
3,955
16,581

16,647

5,066

1,214

397

175

20,538

136
136

RECAPITULATION.

Other reserve cities
Country banks
Total United States

EXHIBIT O.

FEDERAL FARM LOAN ACT.
[PUBLIC—No. 158—64TH CONGRESS.]
[S. 2986.J
An Act To provide capital for agricultural development, to create
standard forme of investment based upon farm mortgage, to equalize rates of interest
upon farm loans, to furnish a market for United States bonds, to create Government
depositaries and financial agents for the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the short title
of this Act shall be "The Federal Farm Loan Act." Its administration shall be under the direction and control of the Federal Farm
Loan Board hereinafter created.
DEFINITIONS.

SEC. 2. That wherever the term "first mortgage" is used in this
Act it shall be held to include such classes of first liens on farm lands
as shall be approved by the Federal Farm Loan Board, and the
credit instruments secured thereby. The term "farm loan bonds"
shall be held to include all bonds secured by collateral deposited with
a farm loan registrar under the terms of this Act; they shall be distinguished by the addition of the words "Federal," or "joint stock/'
as the case may be.
FEDERAL FARM LOAN BOARD.

SEC. 3. That there shall be established at the seat of government
in the Department of the Treasury a bureau charged with the execution of this Act and of all Acts amendatory thereof, to be known as
the Federal Farm Loan Bureau, under the general supervision of a
Federal Farm Loan Board.
Said Federal Farm Loan Board shall consist of five members,
including the Secretary of the Treasury, who shall be a member and
chairman ex officio, and four members to be appointed by the President of the United States, by and with the advice and consent of the
Senate. Of the four members to be appointed by the President, not
more than two shall be appointed from one political party, and all
four of said members shall be citizens of the United States and shall
devote their entire time to the business of the Federal Farm Loan
Board; they shall receive an annual salary of $10,000 payable
monthly, together with actual necessary traveling expenses.
One of the members to be appointed by the President shall be designated by him to serve for two years, one for four years, one for six
years, and one for eight years, and thereafter each member so appointed shall serve for a term of eight years, unless sooner removed
for cause by the President. One of the members shall be designated
by the President as the Farm Loan Commissioner, who shall be the
active executive officer of said board. Each member of the Federal
Farm Loan Board shall within fifteen days after notice of his appointment take and subscribe to the oath of office.
174

REPORT OF THE COMPTROLLER OF THE CURRENCY.

175

The first meeting of the Federal Farm Loan Board shall be held in
Washington as soon as may be after the passage of this Act, at a
date and place to be fixed by the Secretary of the Treasury.
No member of the Federal Farm Loan Board shall, during his continuance in office, be an officer or director of any other institution,
association, or partnership engaged in banking, or in the business of
making land mortgage loans or selling land mortgages. Before entering upon his duties as a member of the Federal Farm Loan Board
each member shall certify under oath to the President that he is
eligible under this section.
The President shall have the power, by and with the advice and
consent of the Senate, to fill any vacancy occurring in the membership of the Federal Farm Loan Board; if such vacancy shall be filled
during the recess of the Senate a commission shall be granted which
shall expire at the end of the next session.
The Federal Farm Loan Board shall appoint a farm loan registrar
in each land bank district to receive applications for issues 01 farm
loan bonds and to perform such other services as are prescribed by
this Act. It shall also appoint one or more land bank appraisers for
each land bank district and as many land bank examiners as it shall
deem necessary. Farm loan registrars, land bank appraisers, and
land bank examiners appointed under this section shall be public
officials and shall, during their continuance in office, have no connection with or interest in any other institution, association, or partnership engaged in banking or in the business of making land mortgage
loans or selling land mortgages: Provided, That this limitation shall
not apply to persons employed by the board temporarily to do special
work.
The salaries and expenses of the Federal Farm Loan Board, and
of farm loan registrars and examiners authorized under this section,
shall be paid by the United States. Land bank appraisers shall
receive such compensation as the Federal Farm Loan Board shall
fix, and shall be paid by the Federal land banks and the joint stock
land banks which they serve, in such proportion and in such manner
as the Federal Farm Loan Board shall order.
The Federal Farm Loan Board shall be authorized and empowered
to employ such attorneys, experts, assistants, clerks, laborers, and
other employees as it may deem necessary to conduct the business of
said board. All salaries and fees authorized in this section and not
otherwise provided for shall be fixed in advance by said board and
shall be paid in the same manner as the salaries of the Federal Farm
Loan Board. All such attorneys, experts, assistants, clerks, laborers,
and other employees, and all registrars, examiners, and appraisers
shall be appointed without regard to the provisions of the Act of
January sixteenth, eighteen hundred and eighty-three (volume
twenty-two, United States Statutes at Large, page four hundred and
three), and amendments thereto, or any rule or regulation made in
pursuance thereof: Provided, That nothing herein shall prevent the
President from placing said employees in the classified service.
Every Federal land bank shall semiannually submit to the Federal
Farm Loan Board a schedule showing the salaries or rates of compensation paid to its officers and employees.
The Federal Farm Loan Board shall annually make a full report of
its operations to the Speaker of the House of Representatives, who
shall cause the same to be printed for the information of the Congress.

176

REPORT OF THE COMPTROLLER OF THE CURRENCY.

The Federal Farm Loan Board shall from time to time require
examinations and reports of condition of all land banks established
under the provisions of this Act and shall publish consolidated statements of the results thereof. It shall cause to be made appraisals of
farm lands as provided by this Act, and shall prepare and publish
amortization tables which shall be used by national farm loan associations and land banks organized under this Act.
The Federal Farm Loan Board shall prescribe a form for the statement of condition of national farm loan associations and land banks
under its supervision, which shall be filled out quarterly by each such
association or bank and transmitted to said board.
It shall be the duty of the Federal Farm Loan Board to prepare from
time to time bulletins setting forth the principal features of this Act
and through the Department of Agriculture or otherwise to distribute
the same, particularly to the press, to agricultural journals, and to
farmers' organizations; to prepare and distribute in the same manner
circulars setting forth the principles and advantages of amortized farm
loans and the protection afforded debtors under this Act, instructing
farmers how to organize and conduct farm loan associations, and
advising investors of the merits and advantages of farm loan bonds;
and to disseminate in its discretion information for the further instruction of farmers regarding the methods and principles of cooperative
credit and organization. Said board is hereby authorized to use a
reasonable portion of the organization fund provided in section thirtythree of this Act for the oojects specified in this paragraph, and is
instructed to lay before the Congress at each session its recommendations for further appropriations to carry out said objects.
FEDERAL LAND BANKS.

SEC. 4. That as soon as practicable the Federal Farm Loan Board
shall divide the continental United States, excluding Alaska, into
twelve districts, which shall be known as Federal land bank districts,
and may be designated by number. Said districts shall be apportioned with due regard to the farm loan needs of the country, but no
such district shall contain a fractional part of any State. The boundaries thereof may be readjusted from time to time in the discretion of
said board.
The Federal Farm Loan Board shall establish in each Federal land
bank district a Federal land bank, with its principal office located in
such city within the district as said board shall designate. Each
Federal land bank shall include in its title the name of the city in
which it is located. Subject to the approval of the Federal Farm
Loan Board, any Federal land bank may establish branches within the
land bank district
Each Federal land bank shall be temporarily managed by five
directors appointed by the Federal Farm Loan Board. Said directors
shall be citizens of the United States and residents of the district.
They shall each give a surety bond, the premium on which shall be
paid from the funds of the bank. They shall receive such compensation as the Federal Farm Loan Board shall fix. They shall choose
from their number, by majority vote, a president, a vice president, a

REPORT OF THE COMPTROLLER OF THE CURRENCY.

177

secretary and a treasurer. They are further authorized and emto
experts, assistants, clerks,
{)owerea and employ such attorneys,may deem necessary, and to fix
aborers,
other employees as they
their compensation, subject to the approval of the Federal Farm Loan
Board.
Said temporary directors shall, under their hands, forthwith make
an organization certificate, which shall specifically state:
First. The name assumed by such bank.
Second. The district within which its operations are to be carried
on, and the particular city in which its principal office is to be located.
Third. The amount of capital stock and the number of shares into
which the same is to be divided: Provided, That every Federal land
bank organized under this Act shall by its articles of association permit
an increase of its capital stock from time to time for the purpose of
providing for the issue of shares to national farm loan associations and
stockholders who may secure loans through agents of Federal land
banks in accordance with the provisions of this Act.
Fourth. The fact that the certificate is made to enable such persons
to avail themselves of the advantages of this Act. The organization
certificate shall be acknowledged before a judge or clerk of some court
of record or notary public, and shall be, together with the acknowledgment thereof, authenticated by the seal of such court or notary,
transmitted to the Farm Loan Commissioner, who shall record and
carefully preserve the same in his office, where it shall be at all times
open to public inspection.
The Federal Farm Loan Board is authorized to direct such changes
in or additions to any such organization certificate, not inconsistent
with this Act, as it may deem necessary or expedient.
Upon duly making and filing such organization certificate the bank
shall become, as from the date of the execution of its organization
certificate, a body corporate, and as such, and in the name designated
in the organization certificate, it shall have power—
First. To adopt and use a corporate seal.
Second. To have succession until it is dissolved by Act of Congress
or under the provisions of this Act.
Third. To make contracts.
Fourth. To sue and be sued, complain, interplead, and defend, in
any court of law or equity, as fully as natural persons.
Fifth. To elect or appoint directors, and by its board of directors
to elect a president and a vice president, appoint a secretary and a
treasurer and other officers and employees, define their duties, require
bonds of them, and fix the penalty thereof; by action of its board of
directors dismiss such officers and employees, or any of them, at pleasure and appoint others to fill their places.
Sixth. To prescribe, by its board of directors, subject to the supervision and regulation of the Federal Farm Loan Board, by-laws not
inconsistent with law, regulating the manner in which its stock shall
be transferred, its directors elected, its officers elected or appointed,
its property transferred, its general business conducted, and the privileges granted to it by law exercised and enjoyed.
Seventh. To exercise, by its board of directors or duly authorized
officers or agents, subject to law, all such incidental powers as shall be
necessary to carry on the business herein described.

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REPORT OF THE COMPTROLLER OF THE CURRENCY.

After the subscriptions to stock in any Federal land bank by
national farm loan associations, hereinafter authorized, shall have
reached the sum of $100,000, the officers and directors of said land
bank shall be chosen as herein provided and shall, upon becoming
duly qualified, take over the management of said land bank from the
temporary officers selected under this section.
The board of directors of every Federal land bank shall be selected
as hereinafter specified and shall consist of nine members, each holding office for three years. Six of said directors shall be known as local
directors, and shall be chosen by and be representative of national
farm loan associations; and the remaining three directors shall be
known as district directors,' and shall be appointed by the Federal
Farm Loan Board and represent the public interest.
At least two months before each election the Farm Loan Commissioner shall notify each national farm loan association in writing that
such election is to be held, giving the number of directors to be elected
for its district, and requesting each association to nominate one candidate for each director to be elected. Within ten days of the receipt
of such notice each association shall forward its nominations to said
Farm Loan Commissioner. Said commissioner shall prepare a list of
candidates for local directors consisting of the twenty persons securing the highest number of votes from national farm loan associations
making such nominations.
At least one month before said election said Farm Loan Commissioner shall mail to each national farm loan association the list of
candidates. The directors of each national farm loan association shall
cast the vote of said association for as many candidates on said list
as there are vacancies to be filled, and shall forward said vote to the
Farm Loan Commissioner within ten days after said list of candidates
is received by them. The candidates receiving the highest number
of votes shall be elected as local directors. In case of a tie the Farm
Loan Commissioner shall determine the choice.
The Federal Farm Loan Board shall designate one of the district
directors to serve for three years and to act as chairman of the board
of directors. It shall designate one of said directors to serve for a
term of two years and one to serve for a term of one year. After the
first appointments each district director shall be appointed for a term
of three years.
At the first regular meeting of the board of directors of each Federal
land bank it shall be the duty of the local directors to designate two
of the local directors whose term of office shall expire in one year from
the date of such meeting, two whose term of office shall expire in two
years from said date, and two whose term of office shall expire in three
years from said date. Thereafter every local director of a Federal
land bank chosen as hereinbefore provided shall hold office for a term
of three years. Vacancies that may occur in the board of directors
shall be filled for the unexpired term in the manner provided for the
original selection of such directors.
Directors of Federal land banks shall have been for at least two
years residents of the district for which they are appointed or elected,
and at least one district director shall be experienced in practical
farming and actually engaged at the time of his appointment in farming operations within the district. No director of a Federal land bank
shall, during his continuance in office, act as an officer, director, or

REPORT OF THE COMPTROLLER OF THE CURRENCY.

179

employee of any other institution, association, or partnership engaged
in banking or in the business of making or selling land mortgage loans.
Directors of Federal land banks shall receive, in addition to any
compensation otherwise provided, a reasonable allowance for necessary expenses in attending meetings of their respective boards, to be
paid by the respective Federal land banks. Any compensation that
may be provided by boards of directors of Federal land banks for
directors, officers, or employees shall be subject to the approval of the
Federal Farm Loan Board.
CAPITAL STOCK OF FEDERAL LAND BANKS.

SEC. 5. That every Federal land bank shall have, before beginning business, a subscribed capital of not less than $750,000. The
Federal Farm Loan Board is authorized to prescribe the times and
conditions of the payment of subscriptions to capital stock, to reject
any subscription in its discretion, and to require subscribers to furnish
adequate security for the payment thereof.
The capital stock of each Federal land bank shaU be divided into
shares of $5 each, and may be subscribed for and held by any individual, firm, or corporation, or by the Government of any State or of
the United States.
Stock held by national farm loan associations shall not be transferred or hypothecated, and the certificates therefor shall so state.
Stock owned by the Government of the United States in Federal
land banks shall receive no dividends, but all other stock shall share
in dividend distributions without preference. Each national farm
loan association and the Government of the United States shall be
entitled to one vote for each share of stock held by it in deciding
all questions at meetings of shareholders, and no other shareholder
shall be permitted to vote. Stock owned by the United States shall
be voted by the Farm Loan Commissioner, as directed by the Federal
Farm Loan Board.
It shall be the duty of the Federal Farm Loan Board, as soon as
practicable after the passage of this Act, to open books of subscription for the capital stock of a Federal land bank in each Federal
land bank district. If within thirty days after the opening of said
books any part of the minimum capitalization of $750,000 herein
prescribed for Federal land banks shall remain unsubscribed, it shall
be the duty of the Secretary of the Treasury to subscribe the balance
thereof on behalf of the United States, said subscription to be subject to call in whole or in part by the board of directors of said land
bank upon thirty days7 notice with the approval of the Federal
Farm Loan Board; and the Secretary of the Treasury is hereby
authorized and directed to take out shares corresponding to the
unsubscribed balance as called, and to pay for the same out of any
moneys in the Treasury not otherwise appropriated. Thereafter no
stock shall be issued except as hereinafter provided.
After the subscriptions to capital stock by national farm loan
associations shall amount to $750,000 in any Federal land bank, said
bank shall apply semiannually to the payment and retirement of the
shares of stock which were issued to represent the subscriptions to the
original capital twenty-five per centum of all sums thereafter sub

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scribed to capital stock until all such original capital stock is retired
at par.
At least twenty-five per centum of that part of the capital of any
Federal land bank for which stock is outstanding in the name of
national farm loan associations shall be held in quick assets, and
may consist of cash in the vaults of said land bank, or in deposits in
member banks of the Federal reserve system, or in readily marketable
securities which are approved under rules and regulations of the
Federal Farm Loan Board: Provided, That not less than five per
centum of such capital shall be invested in United States Government bonds.
GOVERNMENT DEPOSITARIES.

SEC. 6. That all Federal land banks and joint stock land banks
organized under this Act, when designated for that purpose by the
Secretary of the Treasury, shall be depositaries of public money,
except receipts from customs, under such regulations as may be
prescribed by said Secretary; and they may also be employed as
financial agents of the Government; and they shall perform all such
reasonable duties, as depositaries of public money and financial
agents of the Government, as may be required of them. And the
Secretary of the Treasury shall require of the Federal land banks
and joint stock land banks thus designated satisfactory security,
by the deposit of United States bonds or otherwise, for the safekeeping and prompt payment of the public money deposited with
them, and for the faithful performance of their duties as financial
agents of the Government. No Government funds deposited under
the provisions of this section shall be invested in mortgage loans
or farm loan bonds.
NATIONAL FARM LOAN ASSOCIATIONS.

SEC. 7. That corporations, to be known as national farm loan
associations, may be organized by persons desiring to borrow money
on farm mortgage security under the terms of this Act. Such persons shall enter into articles of association which shall specify in
general terms the object for which the association is formed and the
territory within which its operations are to be carried on, and which
may contain any other provision, not inconsistent with law, which
the association may see fit to adopt for the regulation of its business
and the conduct of its affairs. Said articles shall be signed by the
persons uniting to form the association, and a copy thereof shall be
forwarded to the Federal land bank for the district, to be filed and
preserved in its office.
Every national farm loan association shall elect, in the manner
prescribed for the election of directors of national banking associations, a board of not less than five directors, who shall hold office for
the same period as directors of national banking associations. It
shall be the duty of said board of directors to choose in such manner
as they may prefer a secretary-treasurer, who shall receive such
compensation as said board of directors shall determine. The
board of directors shall elect a president, a vice president, and a loan
committee of three members.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

181

The directors and all officers except the secretary-treasurer shall
serve without compensation, unless the payment of salaries to them
shall be approved by the Federal Farm Loan Board. All officers
and directors except the secretary-treasurer shah1, during their term
of office, be bona fide residents of the territory within which the
association is authorized to do business, and shall be shareholders
of the association.
It shall be the duty of the secretary-treasurer of every national
farm loan association to act as custodian of its funds and to deposit
the same in such bank as the board of directors may designate, to pay
over to borrowers all sums received for their account from the Federal
land bank upon first mortgage as in this Act prescribed, and to meet
all other obligations of the association, subject to the orders of the
board of directors and in accordance with the by-laws of the association. It shall be the duty of the secretary-treasurex, acting under
the direction of the national farm loan association, to collect, receipt
for, and transmit to the Federal land bank payments of interest,
amortization installments, or principal arising out of loans made
through the association. He shall be the custodian of the securities,
records, papers, certificates of stock, and all documents relating to or
bearing upon the conduct of the affairs of the association. He shall
furnish a suitable surety bond to be prescribed and approved by the
Federal Farm Loan Board for the proper performance of the duties imposed upon him under this Act, which shall cover prompt collection
and transmission of funds. He shall make a quarterly report to the
Federal Farm Loan Board upon forms to be provided for that purpose.
Upon request from said board said secretary-treasurer shall furnish
information regarding the condition of the national farm loan association for which he is acting, and he shall carry out all duly authorized orders of said board. He shall assure himself from time to time
that the loans made through the national farm loan association of
which he is an officer are applied to the purposes set forth in the
application of the borrower as approved, and shall forthwith report
to the land bank of the district any failure of any borrower to comply
with the terms of his application or mortgage. He shall also ascertain and report to said bank the amount of any delinquent taxes on
land mortgaged to said bank and the name of the delinquent.
The reasonable expenses of the secretary-treasurer, the loan committee, and other officers and agents of national farm loan associations, and the salary of the secretary-treasurer, shall be paid from the
general funds of the association, and the board of directors is authorized to set aside such sums as it shall deem requisite for that purpose
and for other expenses of said association. When no such funds are
available, the board of directors may levy an assessment on members
in proportion to the amount of stock held by each, which may be
repaid as soon as funds are available, or it may secure an advance
from the Federal land bank of the district, to be repaid with interest
at the rate of six per centum per annum, from dividends belonging
to said association. Said Federal land bank is hereby authorized to
make such advance and to deduct such repayment.
Ten or more natural persons who are the owners, or about to
become the owners, of farm land qualified as security for a mortgage
loan under section twelve of this Act, may unite to form a national

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REPORT OF THE COMPTROLLER OF THE CURRENCY.

farm loan association. They shall organize subject to the requirements and the conditions specified in this section and in section four
of this Act, so far as the same may be applicable: Provided, That
the board of directors may consist of five members only, and instead
of a secretary and a treasurer there shall be a secretary-treasurer, who
need not be a shareholder of the association.
When the articles of association are forwarded to the Federal land
bank of the district as provided in this section, they shall be accompanied by the written report of the loan committee as required in
section ten of this Act, and by an affidavit stating that each of the
subscribers is the owner, or is about to become the owner, of farm
land qualified under section twelve of this Act as the basis of a mortgage loan; that the loan desired by each person is not more than
$10,000, nor less than $100, and that the aggregate of the desired
loans is not less than $20,000; that said affidavit is accompanied by
a subscription to stock in the Federal land bank equal to five per
centum of the aggregate sum desired on mortgage loans; and that a
temporary organization of said association has been formed by the
election of a board of directors, a loan committee, and a secretarytreasurer who subscribes to said affidavit, giving his residence and
post office address.
Upon receipt of such articles of association, with the accompanying
affidavit and stock subscription, the directors of said Federal land
bank shall send an appraiser to investigate the solvency and character
of the applicants and the value of theirlands, and shall then determine
whether in their judgment a charter should be granted to such association. They shall forward such articles of association and the
accompanying affidavit to the Federal Farm Loan Board with their
recommendation. If said recommendation is unfavorable, the charter
shall be refused.
If said recommendation is favorable, the Federal Farm Loan Board
shall thereupon grant a charter to the applicants therefor, designating the territory in which such association may make loans, and
shall forward said charter to said applicants through said Federal
land bank: Provided. That said Federal Farm Loan Board may for
good cause shown in any case refuse to grant a charter.
Upon receipt of its charter such national farm loan association
shall be authorized and empowered to receive from the Federal land
bank of the district sums to be loaned to its members under the terms
and conditions of this Act.
Whenever any national farm loan association shall desire to secure
for any member a loan on first mortgage from the Federal land bank
of its district it shall subscribe for capital stock of said land bank
to the amount of five per centum of such loan, such subscription to
be paid in cash upon the granting of the loan by said land bank.
Such capital stock shall be held by said land bank as collateral
security for the payment of said loan, but said association shall be
paid any dividends accruing and payable on said capital stock while
it is outstanding. Such stock may, in the discretion of the directors,
and with the approval of the Federal Farm Loan Board, be paid off
at par and retired, and it shall be so paid off and retired upon full
payment of the mortgage loan. In such case the national farm loan
association shall pay off at par and retire the corresponding shares
of its stock which were issued when said land bank stock was issued.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

183

The capital stock of a Federal land bank shall not be reduced to an
amount less than five per centum of the principal of the outstanding
farm loan bonds issued by it.
CAPITAL STOCK OF NATIONAL FARM LOAN ASSOCIATIONS.

SEC. 8. That the shares in national farm loan associations shall be
of the par value of $5 each.
Every shareholder shall be entitled to one vote on each share of
stock held by him at all elections of directors and in deciding all
questions at meetings of shareholders: Provided, That the maximum
number of votes which may be cast by any one shareholder shall be
twenty.
No persons but borrowers on farm land mortgages shall be members or shareholders of national farm loan associations. Any person
desiring to borrow on farm land mortgage through a national farm
loan association shall make application for membership and shall
subscribe for shares of stock in such farm loan association to an
amount equal to five per centum of the face of the desired loan, said
subscription to be paid in cash upon the granting of the loan. If the
application for membership is accepted and the loan is granted, the
applicant shall, upon full payment therefor, become the owner of
one share of capital stock in said loan association for each $100 of
the face of his loan, or any major fractional part thereof. Said capital
stock shall be paid off at par and retired upon full payment of said
loan. Said capital stock shall be held by said association as collateral
security for the payment of said loan, but said borrower shall be
paid any dividends accruing and payable on said capital stock while
it is outstanding.
Every national farm loan association formed under this Act shall
by its articles of association provide for an increase of its capital
stock from time to time for the purpose of securing additional loans
for its members and providing for the issue of shares to borrowers
in accordance with the provisions of this Act. Such increases shall
be included in the quarterly reports to the Federal Farm Loan Board.
NATIONAL FARM LOAN ASSOCIATIONS.—SPECIAL PROVISIONS.

SEC. 9. That any person whose application for membership is
accepted by a national farm loan association shall be entitled to
borrow money on farm land mortgage upon filing his application in
accordance with section eight and otherwise complying with the
terms of this Act whenever the Federal land bank of the district has
funds available for that purpose, unless said land bank or the Federal
Farm Loan Board, shall, in its discretion, otherwise determine.
Any person desiring to secure a loan through a national farm loan
association under the provisions of this Act may, at his option, borrow
from the Federal land bank through such association the sum necessary to pay for shares of stock subscribed for by him in the national
farm loan association, such sum to be made a part of the face of the
loan and paid off in amortization payments: Provided, however, That
such addition to the loan shall not be permitted to increase said
loan above the limitation imposed in subsection fifth of section
twelve.

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REPORT OF THE COMPTROLLER OF THE CURRENCY.

Subject to rules and regulations prescribed by the Federal Farm
Loan Board, any national farm loan association shall be entitled to
retain as a commission from each interest payment on any loan
indorsed by it an amount to be determined by said board not to
exceed one-eighth of one per centum semiannually upon the unpaid
rincipal of said loan, any amounts so retained as commissions to
e deducted from dividends payable to such farm loan association
by the Federal land bank, and to make application to the land bank
oi the district for loans not exceeding in the aggregate one-fourth of
its total stock holdings in said land bank. The Federal land banks
shall have power to make such loans to associations applying therefor
and to charge interest at a rate not exceeding six per centum per
annum.
Shareholders of every national farm loan association shall be held
individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such association to
the extent of the amount of stock owned by them at the par value
thereof, in addition to the amount paid in and represented by their

After a charter has been granted to a national farm loan association,
any natural person who is the owner, or about to become the owner, of
farm land qualified under section twelve of this Act as the basis of a
mortgage loan, and who desires to borrow on a mortgage of such
farm land, may become a member of the association by a two-thirds
vote of the directors upon subscribing for one share of the capital
stock of such association for each $100 of the face of his proposed
loan or any major fractional part thereof. He shall at the same
time file with the secretary-treasurer his application for a mortgage
loan, giving the particulars required by section twelve of this Act.
APPRAISAL.

SEC. 10. That whenever an application for a mortgage loan is
made to a national farm loan association, it shall be first referred to
the loan committee provided for in section seven of this Act. Said
loan committee shall examine the land which is offered as security for
the desired loan and shall make a detailed written report signed by
all three members, giving the appraisal of said land as determined
by them, and such other information as may be required by rules
and regulations to be prescribed by the Federal Farm Loan Board.
No loan shall be approved by the directors unless said loan committee
agrees upon a favorable report.
The written report of said loan committee shall be submitted to the
Federal land bank, together with the Application for the loan, and the
directors of said land bank shall examine said written report when they
pass upon the loan application which it accompanies, but they shall
not be bound by said appraisal.
Before any mortgage loan is made by any Federal land bank, or
joint stock land bank, it shall refer the application and written report
of the loan committee to one or more oi the land bank appraisers
appointed under the authority of section three of this Act, and such
appraiser or appraisers shall investigate and make a written report
upon the land offered as security for said loan. No such loan shall
be made by said land bank unless said written report is favorable.

REPORT OF THE COMPTROLLER OF THE CURRENCY.

185

Forms for appraisal reports for farm loan associations and land
banks shall be prescribed by the Federal Farm Loan Board.
Land bank appraisers shall make such examinations and appraisals
and conduct such investigations, concerning farm loan bonds and first
mortgages, as the Federal Farm Loan Board shall direct.
No borrower under this Act shall be eligible as an appraiser under
this section, but borrowers may act as members of a loan committee
in any case where they are not personally interested in the loan under
consideration. When any member of a loan committee or of a board
of directors is interested, directly or indirectly, in a loan, a majority
of the board of directors of any national farm loan association shall
appoint a substitute to act in his place in passing upon such loan.
POWERS OF NATIONAL FARM LOAN ASSOCIATIONS.

SEC. 11. That every national farm loan association shall have
power:
First. To indorse, and thereby become liable for the payment of,
mortgages taken from its shareholders by the Federal land bank of
its district.
Second. To receive from the Federal land bank of its district funds
advanced by said land bank, and to deliver said funds to its shareholders on receipt of first mortgages qualified under section twelve of
this Act.
Third. To acquire and dispose of such property, real or personal, as
may be necessary or convenient for the transaction of its business.
Fourth. To issue certificates against deposits of current funds
bearing interest for not longer than one year at not to exceed four per
centum per annum after six days from date, convertible into farm loan
bonds when presented at the Federal land bank of the district in the
amount of $25 or any multiple thereof. Such deposits, when received,
shall be forthwith transmitted to said land bank, and be invested by
it in the purchase of farm loan bonds issued by a Federal land bank or
in first mortgages as defined by this Act.
RESTRICTIONS ON LOANS BASED ON FIRST MORTGAGES.

SEC. 12. That no Federal land bank organized under this Act shall
make loans except upon the following terms and conditions:
First. Said loans shall be secured by duly recorded first mortgages
on farm land within the land bank district in which the bank is
situated.
Second. Every such mortgage shall contain an agreement providing
for the repayment of the loan on an amortization plan by means of a
fixed number of annual or semiannual installments sufficient to cover,
first, a charge on the loan, at a rate not exceeding the interest rate in
the last series of farm loan bonds issued by the land bank making the
loan; second, a charge for administration and profits at a rate not
exceeding one per centum per annum on the unpaid principal, said
two rates combined constituting the interest rate on the mortgage;
and, third, such amounts to be applied on the principal as will extinguish the debt within an agreed period, not less than five years nor
more than forty years: Provided, That after five years from the date
upon which a loan is made additional payments in sums of $25 or any

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REPORT OF THE COMPTROLLER OF THE CURRENCY.

multiple thereof for the reduction of the principal, or the payment of
the entire principal, may be made on any regular installment date
under the rules and regulations of the Federal Farm Loan Board:
And provided further. That before the first issue of farm loan bonds by
any land bank the interest rate on mortgages may be determined in
the discretion of said land bank subject to the provisions and limitations of this Act.
Third. No loan on mortgage shall be made under this Act at a rate
of interest exceeding six per centum per annum, exclusive of amortization payments.
Fourth. Such loans may be made for the following purposes and for
no other:
(a) To provide for the purchase of land for agricultural uses.
(b) To provide for the purchase of equipment, fertilizers and live
stock necessary for the proper and reasonable operation of the mortgaged farm; the term "equipment" to be defined by the Federal
Farm Loan Board.
(c) To provide buildings and for the improvement of farm lands;
the term "improvement" to be defined by the Federal Farm Loan
Board.
(d) To liquidate indebtedness of the owner of the land mortgaged,
existing at the time of the organization of the first national farm loan
association established in or for the county in which the land mortgaged is situated, or indebtedness subsequently incurred for purposes
mentioned in this section.
Fifth. No such loan shall exceed fifty per centum of the value of
the land mortgaged and twenty per centum of the value of the permanent, insured improvements thereon, said value to be ascertained by
appraisal, as provided in section ten of this Act. In making said
appraisal the value of the land for agricultural purposes shall be the
basis of appraisal and the earning power of said land shall be a
principal factor.
A reappraisal may be permitted at any time in the discretion of the
Federal land bank, and such additional loan may be granted as such
reappraisal will warrant under the provisions of this paragraph.
Whenever the amount of the loan applied for exceeds the amount
that may be loaned under the appraisal as herein limited, such loan
may be granted to the amount permitted under the terms of this
paragraph without requiring a new application or appraisal.
Sixth. No such loan shall be made to any person who is not at the
time, or shortly to become, engaged in the cultivation of the farm
mortgaged. In case of the sale of the mortgaged land, the Federal
land bank may permit said mortgage and the stock interests of the
vendor to be assumed by the purchaser. In case of the death of the
mortgagor, his heir or heirs, or his legal representative or representatives, shall have the option, within sixty days of such death, to
assume the mortgage and stock interests of the deceased.
Seventh. The amount of loans to any one borrower shall in no case
exceed a maximum of $10,000, nor shall any loan be for a less sum
than $100.
Eighth. Every applicant for a loan under the terms of this Act shall
make application on a form to be prescribed for that purpose by the
Federal Farm Loan Board, and such applicant shall state the objects

REPORT OF THE COMPTROLLER OF THE CURRENCY.

187

to which the proceeds of said loan are to be applied, and shall afford
such other information as may be required.
Ninth. Every borrower shall pay simple interest on defaulted payments at the rate of eight per centum per annum, and by express
covenant in his mortgage deed shall undertake to pay when due all,
taxes, liens, judgments, or assessments which may be lawfully
assessed against the land mortgaged. Taxes, liens, judgments, or
assessments not paid when due, and paid by the mortgagee, shall
become a part of the mortgage debt and shall bear simple interest at
the rate of eight per centum per annum. Every borrower shall undertake to keep insured to the satisfaction of the Federal Farm Loan
Board all buildings the value of which was a factor in determining
the amount of the loan. Insurance shall be made payable to the
mortgagee as its interest may appear at time of loss, and, at the option
of the mortgagor and subject to general regulations of the Federal
Farm Loan Board, sums so received may be used to pay for reconstruction of the buildings destroyed.
Tenth. Every borrower who shall be granted a loan under the provisions of this Act shall enter into an agreement, in form and under
conditions to be prescribed by the Federal Farm Loan Board, that if
the whole or any portion of his loan shall be expended for purposes
other than those specified in his original application, or if the borrower
shall be in default in respect to any condition or covenant of the
mortgage, the whole of said loan shall, at the option of the mortgagee,
become due and payable forthwith: Provided, That the borrower may
use part of said loan to pay for his stock in the farm loan association,
and the land bank holding such mortgage may permit said loan to be
used for any purpose specified in subsection fourth of this section.
Eleventh. That no loan or the mortgage securing the same shall be
impaired or invalidated by reason of the exercise of any power by any
Federal land bank or national farm loan association in excess of the
powers herein granted or any limitations thereon.
Funds transmitted to farm loan associations by Federal land banks
to be loaned to its members shall be in current funds, or farm loan
bonds, at the option of the borrower.
POWERS OF FEDERAL LAND BANKS.

SEC. 13. That every Federal land bank shall have power, subject
to the limitations and requirements of this Act—
First. To issue, subject to the approval of the Federal Farm Loan
Board, and to sell farm loan bonds of the kinds authorized in this Act,
to buy the same for its own account, and to retire the same at or before
maturity.
Second. To invest such funds as may be in its possession in the
purchase of qualified first mortgages on farm lands situated within
the Federal land bank district within which it is organized or for which
it is acting.
Third. To receive and to deposit in trust with the farm loan registrar for the district, to be by him held as collateral security for farm
loan bonds, first mortgages upon farm land qualified under section
twelve of this Act, and to empower national farm loan associations, or
duly authorized agents, to collect and immediately pay over to said
land banks the dues, interest, amortization installments and other
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sums payable under the terms, conditions, and covenants of the mortgages and of the bonds secured thereby.
Fourth. To acquire and dispose of—
(a) Such property, real or personal, as may be necessary or convenient for the transaction of its business, which, however, may be in
part leased to others for revenue purposes.
(b) Parcels of land acquired in satisfaction of debts or purchased at
sales under judgments, decrees, or mortgages held by it. But no such
bank shall hold title and possession of any real estate purchased or
acquired to secure any deot due to it, for a longer period than five
years, except with the special approval of the Federal Farm Loan
feoard in writing.
Fifth. To deposit its securities, and its current funds subject to
check, with any member bank of the Federal Reserve System, and to
receive interest on the same as may be agreed.
Sixth. To accept deposits of securities or of current funds from
national farm loan associations holding its shares, but to pay no
interest on such deposits.
Seventh. To borrow money, to give security therefor, and to pay
interest thereon.
Eighth. To buy and sell United States bonds.
Ninth. To charge applicants for loans and borrowers, under rules
and regulations promulgated by the Federal Farm Loan Board,
reasonable fees not exceeding the actual cost of appraisal and determination of title. Legal fees and recording charges imposed by
law in the State where the land to be mortgaged is located may also
be included in the preliminary costs of negotiating mortgage loans.
The borrower may pay such fees and charges or he may arrange
with the Federal land bank making the loan to advance the same, in
which case said expenses shall be made a part of the face of the loan
and paid off in amortization payments. Such addition to the loan
shall not be permitted to increase said loan above the limitations
provided in section twelve.
RESTRICTIONS ON FEDERAL LAND BANKS.

SEC. 14. That no Federal land bank shall have power—
First. To accept deposits of current funds payable upon demand
except from its own stockholders, or to transact any banking or
other business not expressly authorized by the provisions of this Act.
Second. To loan on first mortgage except through national farm
loan associations as provided in section seven and section eight of
this Act, or through agents as provided in section fifteen.
Third. To accept any mortgages on real estate except first mortgages created subject to all limitations imposed by section twelve
of this Act, and those taken as additional security for existing loans.
Fourth. To issue or obligate itself for outstanding farm loan bonds
in excess of twenty times the amount of its capital and surplus, or
to receive from any national farm loan association additional mortgages when the principal remaining unpaid upon mortgages already
received from such association shall exceed twenty times the amount
of its capital stock owned by such association.
Fifth. To demand or receive, under any form or pretense, any
commission or charge not specifically authorized in this Act.

EEPOBT OF THE COMPTROLLER OF THE CURRENCY.

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AGENTS OF FEDERAL LAND BANKS.

SEC. 15. That whenever, after this Act shall have been in effect
one year, it shall appear to the Federal Farm Loan Board that
national farm loan associations have not been formed, and are not
likely to be formed, in any locality, because of peculiar local conditions, said board may, in its discretion, authorize Federal land
banks to make loans on farm lands through agents approved by
said board.
Such loans shall be subject to the same conditions and restrictions
as if the same were made through national farm loan associations,
and each borrower shall contribute five per centum of the amount of
his loan to the capital of the Federal land bank, and shall become the
owner of as much capital stock of the land bank as such contribution
shall warrant.
No agent other than a duly incorporated bank, trust company,
mortgage company, or savings institution, chartered by the State
in which it has its principal office, shall be employed under the provisions of this section.
Federal land banks may pay to such agents the actual expense of
appraising the land offered as security for a loan, examining and certifying the title thereof, and making, executing, and recording the
mortgage papers; and in addition may allow said agents not to exceed
one-half of one per centum per annum upon the unpaid principal
of said loan, such commission to be deducted from dividends payable
to the borrower on his stock in the Federal land bank.
Actual expenses paid to agents under the provisions of this section
shall be added to the face of the loan and paid off in amortization
payments subject to the limitations provided in subsection ninth
of section thirteen of this Act.
Said agents, when required by the Federal land banks, shall
collect and forward to such banks without charge all interest and
amortization payments on loans indorsed by them.
Any agent negotiating any such loan shall indorse the same and
become liable for the payment thereof, and for any default by the
mortgagor, on the same terms and under the same penalties as it the
loan had been originally made by said agent as principal and sold
by said agent to said land bank, but the aggregate of the unpaid principal of mortgage* loans received from any such agent shall not
exceed ten times its capital and surplus.
If at any time the district represented by any agent under the
provisions of this section shall, in the judgment of the Federal FarmLoan Board, be adequately served by national farm loan associations,
no further loans shall be negotiated therein by agents under this
section.
JOINT STOCK LAND BANKS.

SEC. 16. That corporations, to be known as joint stock land banks,
for carrying on the business of lending on farm mortgage security
and issuing farm loan bonds, may be formed by any number of natural
persons not less than ten. They shall be organized subject to the
requirements and under the conditions set forth in section four of
this Act, so far as the same may be applicable: Provided, That the

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board of directors of every, joint stock land bank shall consist of
not less than five members.
Shareholders of every joint stock land bank organized under this
Act shall be held individually responsible, equally and ratably, and
not one for another, for all contracts, debts, and engagements of
such bank to the extent of the amount of stock owned by them at
the par value thereof, in addition to the amount paid in and represented by their shares.
Except as otherwise provided, joint stock land banks shall have the
powers of, and be subject to all the restrictions and conditions imposed on, Federal land banks by this Act, so far as such restrictions
and conditions are applicable: Provided, however. That the Government of the United States shall not purchase or subscribe for any of
the capital stock of any such bank; and each shareholder of any such
bank shall have the. same voting privileges as holders of shares in
national banking associations.
No joint stock land bank shall have power to issue or obligate
itself for outstanding farm loan bonds in excess of fifteen times the
amount of its capital and surplus, or to receive deposits or to transact
any banking or other business not expressly authorized by the provisions of this Act.
No joint stock land bank shall be authorized to do business until
capital stock to the amount of at least $250,000 has been subscribed,
one-half thereof paid in cash and the balance subject to call by the
board of directors, and a charter has been issued to it by the Federal
Farm Loan Board.
No joint stock land bank shall issue any bonds until after the
.capital stock is entirely paid up.
Farm loan bonds issued by joint stock land banks shall be so
engraved as to be readily distinguished in form and color from farm
loan bonds issued by Federal land banks, and shall otherwise bear
feuch distinguishing marks as the Federal Farm Loan Board shall
direct.
Joint stock land banks shall not be subject to the provisions of
subsection (b) of section seventeen of this Act as to interest rates on
mortgage loans or farm loan bonds, nor to the provisions of subsections first, fourth, sixth, seventh, and tenth of section twelve as to
restrictions on mortgage loans: Provided, however. That no loans
shall be made which are not secured by first mortgages on farm lands
within the State in which such joint stock land bank has its principal
office, or within some one State contiguous to such State. Such joint
stock land banks shall be subject to all other restrictions on mortgage
loans imposed on Federal land banks in section twelve of this Act.
Joint stock land banks shall in no case charge a rate of interest on
farm loans exceeding by more than one per centum the rate of
interest established for the last series of farm loan bonds issued by
them.
Joint stock land banks shall in no case demand or receive, under
any form or pretense, any commission or charge not specifically
authorized in this Act.
Each joint stock land bank organized under this Act shall have
authority to issue bonds based upon mortgages taken by it in accordance with the terms of this Act. Such bonds shall be in form pre

REPORT OF THE COMPTROLLER OF THE CURRENCY.

191

scribed by the Federal Farm Loan Board, and it shall be stated in
such bonds that such bank is organized under section sixteen of this
Act, is under Federal supervision, and operates under the provisions
of this Act.
POWERS OF FEDERAL FARM LOAN BOARD.

SEC. 17. That the Federal Farm Loan Board shall have power—
(a) To organize and charter Federal land banks, and to charter
national farm loan associations and joint stock land banks subject
to the provisions of this Act, and in its discretion to authorize them
to increase their capital stock.
(b) To review and alter at its discretion the rate of interest to be
charged by Federal land banks for loans made by them under the
provisions of this Act, said rates to be uniform so far as practicable.
(c) To grant or refuse to Federal land banks, or joint stock land
banks, authority to make any specific issue of farm loan bonds.
(d) To make rules and regulations respecting the charges made to
borrowers on loans under this Act for expenses in appraisal, determination of title, and recording.
(e) To require reports and statements of condition and to make
examinations of all banks or associations doing business under the
provisions of this Act.
(f) To prescribe the form and terms of farm loan bonds, and the
form, terms, and penal sums of all surety bonds required under this
Act and of such other surety bonds as they shall deem necessary,
such surety bonds to cover financial loss as well as faithful performance of duty.
(g) To require Federal land banks to pay forthwith to any Federal
land bank their equitable proportion of any sums advanced by said
land bank to pay the coupons of any other land bank, basing said
required payments on the amount of farm loan bonds issued by each
land bank and actually outstanding at the time of such requirement.
(h) To suspend or to remove for cause any district director or any
registrar, appraiser, examiner, or other official appointed by said
board under authority of section three of this Act, the cause of such
suspension or removal to be communicated forthwith in writing by
the Federal Farm Loan Board to the person suspended or removed,
and in case of a district director to the proper Federal land bank.
(i) To exercise general supervisory authority over the Federal
land banks, the national farm loan associations, and the joint stock
land banks herein provided for.
(j) To exercise such incidental powers as shall be necessary or
requisite to fulfill its duties and carry out the purposes of this Act.
APPLICATIONS FOR FARM LOAN BONDS.

SEC. 18. That any Federal land bank, or joint stock land bank,
which shall have voted to issue farm loan bonds under this Act, shall
make written application to the Federal Farm Loan Board, through
the farm loan registrar of the district, for approval of such issue.
With said application said land bank shall tender to said farm loan
registrar as collateral security first mortgages on farm lands qualified
under the provisions of section twelve, section fifteen, or section
sixteen of this Act, or United States Government bonds, not less in

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aggregate amount than the sum of the bonds proposed to be issued.
Said bank shall furnish with such mortgages a schedule containing a
description thereof and such further information as may be prescribed
by the Federal Farm Loan Board.
Upon receipt of such application said farm loan registrar shall
verify said schedule and shall transmit said application and said schedule to the Federal Farm Loan Board, giving such further information
pertaining thereto as he may possess. The Federal Farm Loan Board
shall forthwith cause to be made such investigation and appraisement
of the securities tendered as it shall deem wise, and it shall grant in
whole or in part, or reject entirely, such application.
The Federal Farm Loan Board shall promptly transmit its decision
as to any issue of farm loan bonds to the land bank applying for the
same and to the farm loan registrar of the district. Said registrar
shall furnish, in writing, such information regarding any issue of
farm loan bonds as the Federal Farm Loan Board may at any time
require.
No issue of farm loan bonds shall be authorized unless the Federal
Farm Loan Board shall approve such issue in writing.
ISSUE OF FARM LOAN BONDS.

SEC. 19. That whenever any farm loan registrar shall receive from
the Federal Farm Loan Board notice that it has approved any issue
of farm loan bonds under the provisions of section eighteen he shall
forthwith take such steps as may be necessary, in accordance with
the provisions of this Act, to insure the prompt execution of said
bonds and the delivery of the same to the land bank applying therefor.
Whenever the Federal Farm Loan Board shall reject entirely any
application for an issue of farm loan bonds, the first mortgages and
bonds tendered to the farm loan registrar as collateral security therefor shall be forthwith returned to said land bank by him.
Whenever the Federal Farm Loan Board shall approve an issue
of farm loan bonds, the farm loan registrar having the custody of the
first mortgages and bonds tendered as collateral security for such issue
of bonds shall retain in his custody those first mortgages and bonds
which are to be held as collateral security, and shall return to the bank
owning the same any of said mortgages and bonds which are not to be
held by him as collateral security. The land bank which is to issue
said farm loan bonds shall transfer to said registrar, by assignment,
in trust, all first mortgages and bonds which are to be held by said
registrar as collateral security, said assignment providing for the
right of redemption at any time by payment as provided in this Act
and reserving the right of substitution of other mortgages qualified
under sections twelve, fifteen, and sixteen of this Act. Said mortgages and bonds shall be deposited in such deposit vault or bank as
the Federal Farm Loan Board shall approve, subject to the control
of said registrar and in his name as trustee for the bank issuing the
farm loan bonds and for the prospective holders of said farm loan
bonds.
No mortgage shall be accepted by a farm loan registrar from a land
bank as part of an offering to secure an issue of farm loan bonds, either
originally or by substitution, except first mortgages made subject

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193

to the conditions prescribed in said sections twelve, fifteen, and
sixteen.
It shall be the duty of each farm loan registrar to see that the farm
loan bonds delivered by him and outstanding do not exceed the
amount of collateral security pledged therefor. Such registrar may,
in his discretion, temporarily accept, in place of mortgages withdrawn, United States Government bonds or cash.
The Federal Farm Loan Board may, at any time, call upon any
land bank for additional security to protect the bonds issued by it.
FORM OF FARM LOAN BONDS.

SEC. 20. That bonds provided for in this Act shall be issued in
denominations of $25, $50, $100, $500, and $1,000; they shall run for
specified minimum and maximum periods, subject to payment and
retirement, at the option of the land bank, at any time after five
years from the date of their issue. They shall have interest coupons
attached, payable semiannually, and shall be issued in series of not
less than $50,000, the amount and terms to be fixed by the Federal
Farm Loan Board. They shall bear a rate of interest not to exceed
five per centum per annum.
The Federal Farm Loan Board shall prescribe rules and regulations
concerning the circumstances and manner in which farm loan bonds
shall be paid and retired under the provisions of this Act.
Farm loan bonds shall be delivered through the registrar of the
district to the bank applying for the same.
In order to furnish farm loan bonds for delivery at the Federal
land banks and joint stock land banks, the Secretary of the Treasury
is hereby authorized to prepare suitable bonds in such form, subject
to the provisions of this Act, as the Federal Farm Loan Board may
approve, such bonds when prepared to be held in the Treasury subject
to delivery upon order of the Federal Farm Loan Board. The
engraved plates, dies, bed-pieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the
Treasury. Any expenses incurred in the preparation, custody, and
delivery of such farm loan bonds shall be paid by the Secretary of the
Treasury from any funds in the Treasury not otherwise appropriated: Provided, however, That the Secretary shall be reimbursed for
such expenditures by the Federal Farm Loan Board through assessment upon the farm land banks in proportion to the work executed.
They may be exchanged into registered bonds of any amount, and
reexchanged into coupon bonds, at the option of the holder, under
rules and regulations to be prescribed by the Federal Farm Loan
Board.
SPECIAL PROVISIONS OF FARM LOAN BONDS.

SEC. 21. That each land bank shall be bound in all respects by the
acts of its officers in signing and issuing farm loan bonds, and by the
acts of the Federal Farm Loan Board in authorizing their issue.
Every Federal land bank issuing farm loan bonds shall be primarily liable therefor, and shall also be liable, upon presentation of
farm loan bond coupons, for interest payments due upon any farm
loan bonds issued by other Federal land banks and remaining unpaid
in consequence of the default of such other land banks; and every

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such bank shall likewise be liable for such portion of the principal
of farm loan bonds so issued as shall not be paid after the assets of
any such other land banks shall have been liquidated and distributed:
Provided, That such losses, if any, either 01 interest or of principal,
shall be assessed by the Federal Farm Loan Board against solvent
land banks liable therefor in proportion to the amount of farm loan
bonds which each may have outstanding at the time of such assessment.
Every Federal land bank shall by appropriate action of its board
of directors, duly recorded in its minutes, obligate itself to become
liable on farm loan bonds as provided in this section.
Every farm loan bond issued by a Federal land bank shall be
signed by its president and attested by its secretary, and shall contain
in the face thereof a certificate signed by the Farm Loan Commissioner to the effect that it is issued under the authority of the Federal
Farm Loan Act, has the approval in form and issue of the Federal
Farm Loan Board, and is legal and regular in all respects; that it is
not taxable by National, State, municipal, or local authority; that
it is issued against collateral security of United States Government
bonds, or indorsed first mortgages on farm lands, at least equal in
amount to the bonds issued; and that all Federal land banks are
liable for the payment of each bond.
APPLICATION OF AMORTIZATION AND INTEREST PAYMENTS.

SEC. 22. That whenever any Federal land bank, or joint stock
land bank, shall receive any interest, amortization or other payments
upon any first mortgage or bond pledged as collateral security for
the issue of farm loan bonds, it shall forthwith notify the farm loan
registrar of the items so received. Said registrar shall forthwith
cause such payment to be duly credited upon the mortgage entitled
to such credit. Whenever any such mortgage is paid in full, said
registrar shall cause the same to be canceled and delivered to the
proper land bank, which shall promptly satisfy and discharge the lien
of record and transmit such canceled mortgage to the original maker
thereof, or his heirs, administrators, executors, or assigns.
Upon written application by any Federal land bank, or joint stock
land bank, to the farm loan registrar, it may be permitted, in the
discretion of said registrar, to withdraw any mortgages or bonds
pledged as collateral security under this Act, and to substitute therefor
other similar mortgages or United States Government bonds not less
in amount than the mortgages or bonds desired to be withdrawn.
Whenever any farm loan bonds, or coupons or interest payments of
such bonds, are due under their terms, they shall be payable at the
land bank by which they were issued, in gold or lawful money, and
upon payment shall be duly canceled by said bank. At the discretion
oi the Federal Farm Loan Board, payment of any farm loan bond or
coupon or interest payment may, however, be authorized to be made
at any Federal land bank, any joint stock land bank, or any other
bank, under rules and regulations to be prescribed by the Federal
Farm Loan Board.
When any land bank shall surrender to the proper farm loan
registrar any farm loan bonds of any series, canceled or uncanceled,
said land bank shall be entitled to withdraw first mortgages and bonds

REPORT OF THE COMPTROLLER OF THE CURRENCY.

195

pledged as collateral security for any of said series of farm loan bonds
to an amount equal to the farm loan bonds so surrendered, and it shall
be the duty of said registrar to permit and direct the delivery of such
mortgages and bonds to suchjand bank.
Interest payments on hypothecated first mortgages shall be at the
disposal of the land bank pledging the same, and shall be available
for the payment of coupons and the interest of farm loan bonds as
they become due.
Whenever any bond matures, or the interest on any registered bond
is due, or the coupon on any coupon bond matures, and the same shall
be presented for payment as provided in this Act, the full face value
thereof shall be paid to the holder.
Amortization and other payments on the principal of first mortgages
held by a farm loan registrar as collateral security for the issue of farm
loan bonds shall constitute a trust fund in the hands of the Federal
land bank or joint stock land bank receiving the same, and shall be
applied or employed as follows:
In the case of a Federal land bank—
(a) To pay off farm loan bonds issued by said bank as they mature.
(b) To purchase at or below par farm loan bonds issued by said
bank or by any other Federal land bank.
(c) To loan on first mortgages on farm lands within the land bank
district, qualified under this Act as collateral security for an issue of
farm loan bonds.
(d) To purchase United States Government bonds.
In the case of a joint stock land bank—
(a) To pay off farm loan bonds issued by said bank as theymature.
(b) To purchase at or below par farm loan bonds.
(c) To loan on first mortgages qualified under section sixteen of this
Act.
(d) To purchase United States Government bonds.
The farm loan bonds, first mortgages, United States Government
bonds, or cash constituting the trust fund aforesaid, shall be forthwith deposited with the farm loan registrar as substituted collateral
security in place of the sums paid on the principal of indorsed mortgages held by him in trust.
Every Federal land bank, or joint stock land bank, shall notify the
farm loan registrar of the disposition of all payments made on the
principal of mortgages held as collateral security for an issue of farm
loan bonds, and said registrar is authorized, at his discretion, to order
any of such payments, or the proceeds thereof, wherever deposited or
however invested, to be immediately transferred to his account as
trustee aforesaid.
RESERVES AND DIVIDENDS OF LAND BANKS.

SEC. 23. That every Federal land bank, and every joint stock land
bank, shall semiannual!.}7 carry to reserve account twenty-five per
centum of its net earnings until said reserve account shall show a
credit balance equal to twenty per centum of the outstanding capital
stock of said land bank. Whenever said reserve shall have been
impaired/ said balance of twenty per centum shall be fully restored
before any dividends are paid. After said reserve has reached the
sum of twenty per centum of the outstanding capital stock, five per

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centum of the net earnings shall be annually added thereto. For
the period of two years from the date when any default occurs in the
payment of the interest, amortization installments, or principal on
any first mortgage, by both mortgagor and indorser, the amount so
defaulted shall be carried to a suspense account, and at the end of
the two-year period specified, unless collected, shall be debited to
reserve account.
After deducting the twenty-five per centum or the five per centum
hereinbefore directed to be deducted for credit to reserve account,
any Federal land bank or joint stock land bank may declare a dividend to shareholders of the whole or any part of the balance of its
net earnings. The reserves of land banks shall be invested in accordance with rules and regulations to be prescribed by the Federal Farm
Loan Board.
RESERVE AND DIVIDENDS OF NATIONAL FARM LOAN ASSOCIATIONS.

SEC. 24. That every national farm loan association shall, out of
its net earnings, semiannually carry to reserve account a sum not
less than ten per centum of such net earnings until said reserve
account shall show a credit balance equal to twenty per centum of
the outstanding capital stock of said association.
Whenever said reserve shall have been impaired, said credit balance
of twenty per centum shall be fully restored before any dividends
are paid. After said reserve has reached said sum of twenty per
centum, two per centum of the net earnings shall be annually added
thereto.
After deducting the ten per centum or the two per centum hereinbefore directed to be credited to reserve account, said association
may, at its discretion, declare a dividend to shareholders of the whole
or any part of the balance of said net earnings.
The reserves of farm loan associations shall be invested in accordance with rules and regulations to be prescribed by the Federal Farm
Loan Board.
Whenever any farm loan association shall be voluntarily liquidated ,
a sum equal to its reserve account as herein required shall be paid to
and become the property of the Federal land bank in which such loan
association may be a shareholder.
DEFAULTED LOANS.

SEC. 25. That if there shall be default under the terms of any
indorsed first mortgage held by a Federal land bank under the provisions of this Act, the national farm loan association or agent through
which said mortgage was received by said Federal land bank shall be
notified of said default. Said association or agent may thereupon be
required, within thirty days after such notice, to make good said
default, either by payment of the amount unpaid thereon in cash, or
by the substitution of an equal amount of farm loan bonds issued by
said land bank, with all unmatured coupons attached.

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197

EXEMPTION FROM TAXATION",

SEC. 26. That every Federal land bank and every national farm
loan association, including the capital and reserve or surplus therein
and the income derived therefrom, shall be exempt from Federal,
State, municipal, and local taxation, except taxes upon real estate
held, purchased, or taken by said bank or association under the provisions of section eleven and section thirteen of this Act. First
mortgages executed to Federal land banks, or to joint stock land
banks, and farm loan bonds issued under the provisions of this Act,
shall be deemed and held to be instrumentalities of the Government
of the United States, and as such they and the income derived therefrom shall be exempt from Federal, State, municipal, and local
taxation.
Nothing herein shall prevent the shares in any joint stock land
bank from being included in the valuation of the personal property
of the owner or holder of such shares, in assessing taxes imposed by
authority of the State within which the bank is located; but such
assessment and taxation shall be in manner and subject to the conditions and limitations contained in section fifty-two hundred and
nineteen of the Revised Statutes with reference to the shares of
national banking associations.
Nothing herein shall be construed to exempt the real property of
Federal and joint stock land banks and national farm loan associations from either State, county, or municipal taxes, to the same
extent, according to its value, as other real property is taxed.
INVESTMENT IN FARM LOAN BONDS.

SEC. 27. That farm loan bonds issued under the provisions of this
Act by Federal land banks or joint stock land banks shall be a lawful
investment for all fiduciary and trust funds, and may be accepted as
security for all public deposits.
Any member bank of the Federal Reserve System may buy and
sell farm loan bonds issued under the authority of this Act.
Any Federal reserve bank may buy and sell iarm loan bonds issued
under this Act to the same extent and subject.to the same limitations
placed upon the purchase and sale by said banks of State, county,
district, and municipal bonds under subsection (b) of section fourteen
of the Federal Reserve Act approved December twenty-third,
nineteen hundred and thirteen.
EXAMINATIONS.

SEC. 28. That the Federal Farm Loan Board shall appoint as many
land bank examiners as in its judgment may be required to make
careful examinations of the banks and associations permitted to do
business under this Act.
Said examiners shall be subject to the same requirements, responsibilities and penalties as are applicable to national bank exammers
under the national bank Act, the Federal Reserve Act and other
provisions of law. Whenever directed by the Federal Farm Loan
Board, .said examiners shall examine the condition of any national
farm loan association and report the same to the Farm Loan Com

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REPORT OF THE COMPTROLLER OF THE CURRENCY.

missioner. They shall examine and report the condition of every
Federal land bank and joint stock land bank at least twice each year.
Said examiners shall receive salaries to be fixed by the Federal
Farm Loan Board.
DISSOLUTION AND APPOINTMENT OF RECEIVERS.

SEC. 29. That upon receiving satisfactory evidence that any
national farm loan association has failed to meet its outstanding
obligations of any description the Federal Farm Loan Board may
forthwith declare such association insolvent and appoint,a receiver
and require of him such bond and security as it deems proper: Providedj That no national farm loan association shall be declared
insolvent by said board until the total amount of defaults of current
interest and amortization installments on loans indorsed by national
farm loan associations shall amount to at least $150,000 in the
Federal land bank district, unless such association shall have been in
default for a period of two years. Such receiver, under the direction
of the Federal Farm Loan Board, shall take possession of the books,
records, and assets of every description of such association, collect
all debts, dues, and claims belonging to it, and, with the approval
of the Federal Farm Loan Board, or upon the order of a court of
record of competent jurisdiction, may sell or compound all bad or
doubtful debts, and, on a like approval or order, may sell all the real
and personal property of such association, on such terms as the
Federal Farm Loan Board or said court shall direct.
Such receiver shall pay over all money so collected to the Treasurer
of the United States, subject to the order of the Federal Farm Loan
Board, and also make report to said board of all his acts and proceedings. The Secretary of the Treasury shall have authority to
deposit at interest any money so received.
Upon default of any obligation, Federal land banks and joint
stock land banks may be declared insolvent and placed in the hands
of a receiver by the Federal Farm Loan Board, and proceedings shall
thereupon be had in accordance with the provisions of this section
regarding national farm loan associations.
If any national farm loan association shall be declared insolvent
and a receiver shall be appointed therefor by the Federal Farm Loan
Board, the stock held by it in the Federal land bank of its district
shall be canceled without impairment of its liability and all payments
on such stock, with accrued dividends, if any, since the date of the
last dividend shall be first applied to all debts of the insolvent farm
loan association to the Federal land bank and the balance, if any,
shall be paid to the receiver of said farm loan association: Provided,
That in estimating said debts contingent liabilities incurred by
national farm loan associations under the provisions of this Act on
account of default of principal or interest of indorsed mortgages
shall be estimated and included as a debt, and said contingent liabilities shall be determined by agreement between the receiver and
the Federal land bank of the district, subject to the approval of the
Federal Farm Loan Board, and if said receiver and said land bank
can not agree, then by the decision of the Farm Loan Commissioner,
and the amount thus ascertained shall be deducted in accordance

REPORT OF THE COMPTROLLER OF THE CURRENCY.

199

with the provisions of this section from the amount otherwise due
said national farm loan association for said canceled stock. Whenever the capital stock of a Federal land bank shall be reduced, the
board of directors shall cause to be executed a certificate to the Federal
Farm Loan Board, showing such reduction of capital stock, and, if
said reduction shall be due to the insolvency of a national farm loan
association, the amount repaid to such association.
No national farm loan association, Federal land bank or joint
stock land bank shall go into voluntary liquidation without the written consent of the Federal Farm Loan Board, but national farm
loan associations may consolidate under rules and regulations promulgated by the Federal Farm Loan Board.
STATE LEGISLATION.

SEC. 30. That it shall be the duty of the Farm Loan Commissioner
to make examination of the laws of every State of the United States
and to inform the Federal Farm Loan Board as rapidly as may be
whether in his judgment the laws of each State relating to the conveying and recording of land titles, and the foreclosure of mortgages
or other instruments securing loans, as well as providing homestead
and other exemptions and granting the power to waive such exemptions as respects first mortgages, are such as to assure the holder
thereof adequate safeguards against loss in the event of default on
loans secured by any such mortgages.
Pending the making of such examination in the case of any State,
the Federal Farm Loan Board may declare first mortgages on farm
lands situated within such State ineligible as the basis for an issue of
farm loan bonds; and if said examination shall show that the laws
of any such State afford insufficient protection to the holder of first
mortgages of the kinds provided in this Act, said Federal Farm Loan
Board may declare said first mortgages on land situated in such State
ineligible during the continuance of the laws in question. In making
his examination of the laws of the several States and forming his
conclusions thereon said Farm Loan Commissioner may call upon
the office of the Attorney General of the United States for any needed
legal advice or assistance, or may employ special counsel in any
State where he considers such action necessary.
At the request of the Executive of any State the Federal Farm
Loan Board shall prepare a statement setting forth in what respects
the requirements of said board can not be complied with under the
existing laws of such State.
PENALTIES.

SEC. 31. That any applicant for a loan under this Act who shall
knowingly make any false statement in his application for such loan,
and any member of a loan committee or any appraiser provided for
in this Act who shall willfully overvalue any land offered as security
for loans under this Act, shall be punished by a fine of not exceeding
$5,000, or by imprisonment not exceeding one year, or both. Any
examiner appointed under this Act who shall accept a loan or gratuity from any land bank or national farm loan association examined
by him, or from any person connected with any such bank or asso

200

REPORT OF THE COMPTROLLER OF THE CURRENCY.

ciation in any capacity, shall be punished by a fine of not exceeding
$5,000, or by imprisonment not exceeding one year, or both, and
may be fined a further sum equal to the money so loaned or gratuity
given, and shall forever thereafter be disqualified from holding office
as an examiner under the provisions of this Act. No examiner, while
holding such office, shall perform any other service for compensation
for any bank or banking or loan association, or for any person connected therewith in any capacity.
Any person who shall falsely make, forge, or counterfeit, or cause
or procure to be falsely made, forged, or counterfeited, or willingly
aid OF assist in falsely making, forging, or counterfeiting any bond,
coupon, or paper in imitation of, or purporting to be in imitation of,
the bonds or coupons issued by any land bank or national farm loan
association, now or hereafter authorized and acting under the laws
of the United States; or any person who shall pass, utter, or publish,
or attempt to pass, utter, or publish any false, forged, or counterfeited
bond, coupon, or paper purporting to be issued by any such bank or
association, knowing the same to be falsely made, forged, or counterfeited ; or whoever shall falsely alter, or cause or procure to be falsely
altered, or shall willingly aid or assist in falsely altering any such
bond, coupon, or paper, or shall pass, utter, or publish as true any
falsely altered or spurious bond, coupon, or paper issued, or purporting to have been issued, by any such bank or association, knowing
the same to be falsely altered or spurious, shall be punished by a
fine of not exceeding $5,000 or by imprisonment not exceeding nve
years, or both.
Other than the usual salary or director's fee paid to any officer,
director, or employee of a national farm loan association, a Federal
land bank, or a joint stock land bank, and other than a reasonable
fee paid by such association or bank to any officer, director, attorney,
or employee for services rendered, no officer, director, attorney, or
employee of an association or bank organized under this Act shall be
a beneficiary of or receive, directly or indirectly, any fee, commission,
gift, or other consideration for or in connection with any transaction
or business of such association or bank. No land bank or national
farm loan association organized under this Act shall charge or receive
any fee, commission, bonus, gift, or other consideration not herein
specifically authorized. No examiner, public or private, shall disclose
the names of borrowers to other than the proper officers of a national
farm loan association or land bank without first having obtained express permission in writing from the Farm Loan Commissioner or
from the board of directors of such association or bank, except when
ordered to do so by a court of competent jurisdiction or by direction
of the Congress of the United States, or of either House thereof, or
any committee of Congress or of either House duly authorized. Any
person violating any provision of this paragraph shall be punished
by a fine of not exceeding $5,000 or by imprisonment not exceeding
one year, or both.
Any person connected in any capacity with any national farm loan
association, Federal land bank, or joint stock land bank, who embezzles, abstracts, or willfully misapplies any moneys, funds, or credits
thereof, or who without authority from the directors draws any order,
assigns any note, bond, draft, mortgage, judgment, or decree thereof,
or who makes any false entry in any book, report, or statement of

EEPORT OF THE COMPTROLLER OF THE CURRENCY.

201

such association or land bank with intent in either case to defraud
such institution or any other company, body politic or corporate, or
any individual person, or to deceive any officer of a national farm
loan association or land bank or any agent appointed to examine into
the affairs of any such association or bank, and every person who
with like intent aids or abets any officer, clerk, or agent in any violation of this section, shall be punished by a fine of not exceeding
$5,000 or by imprisonment not exceeding five years, or both.
Any person who shall deceive, defraud, or impose upon, or who
shall attempt to deceive, defraud, or impose upon, any person, firm,
or corporation by making any false pretense or representation regarding the character, issue, security, or terms of any farm loan bond, or
coupon, issued under the terms of this Act; or by falsely pretending
or representing that any farm loan bond, or coupon, issued under the
terms of this Act by one class of land banks is a farm loan bond, or
coupon, issued by another class of banks; or by falsely pretending or
representing that any farm loan bond, or coupon, issued under the
terms of this Act, or anything contained in said farm loan bond, or
coupon, is anything other than, or different from, what it purports
to be on the face of said bond or coupon, shall be fined not exceeding
$500 or imprisoned not exceeding one year, or both.
The Secretary of the Treasury is hereby authorized to direct and
use the Secret Service Division of the Treasury Department to detect,
arrest, and deliver into custody of the United States marshal having
jurisdiction, any person or persons violating any of the provisions of
this section.
GOVERNMENT DEPOSITS.

SEC. 32. That the Secretary of the Treasury is authorized, in his
discretion, upon the request of the Federal Farm Loan Board, to
make deposits for the temporary use of any Federal land bank, out of
any money in the Treasury not otherwise appropriated. Such Federal
land bank shall issue to the Secretary of the Treasury a certificate of
indebtedness for any such deposit, bearing a rate of interest not to
exceed the current rate charged for other Government deposits, to
be secured by farm loan bonds or other collateral, to the satisfaction
of the Secretary of the Treasury. Any such certificate shall be
redeemed and paid by such land bank at the discretion of the Secretary of the Treasury. The aggregate of all sums so deposited by the
Secretary of the Treasury shall not exceed the sum of $6,000,000 at
any one time.
ORGANIZATION EXPENSES.

SEC. 33. That the sum of $100,000, or so much thereof as may be
necessary, is hereby appropriated, out of any money in the Treasury
not otherwise appropriated, to be expended under the direction of
the Federal Farm Loan Board, for the purpose of carrying into effect
the provisions of this Act, including the rent and equipment of necessary offices.

202

REPORT OF THE COMPTROLLER OF THE CURRENCY.
LIMITATION OF COURT DECISIONS.

SEC. 34. That if any clause, sentence, paragraph, or" part of this
Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act, but shall be confined in its operation
to the clause, sentence, paragraph, or part thereof directly involved
in the controversy in which such judgment shall have been rendered.
REPEALING CLAUSE.

SEC. 35. That all Acts or parts of Acts inconsistent with this Act
are hereby repealed, and this Act shall take effect upon its passage.
The right to amend, alter, or repeal this Act is hereby expressly
reserved.
Approved, July 17, 1916.

INDEX.
Page.
ABSTRACT OP REPORTS o r CONDITION O P NATIONAL BANKS.

(See Condition of national banks.)

ACCEPTANCES (see also Condition of national banks; Loans and discounts of national banks):
Nature of, as authorized by Federal Keserve Act

ALASKA AND INSULAR POSSESSIONS:

Amendment recommended permitting national banks to establish branches in
Population of
Resources and liabilities

29
93
93

AMENDMENTS ENACTED DURING YEAR. (See Legislation of Sixty-fourth Congress.)
AMENDMENTS TO NATIONAL-BANK ACT, RECOMMENDED:

Appropriate penalties for violations of laws and regulations
Authority to remove directors guilty of persistent violations of the National-Bank Act
Authorize national banks to establish branches in the United States
Authorize special interest charges for small loans
Authorize the Comptroller t o bring proceedings against directors for losses sustained by bank
through violation of t h e National-Bank Act
,
Authorize United States Treasurer to sell bonds securing circulation 30 days after bank goes into
liquidation
Engraved signatures for national bank notes
Limit deposits received
Limit direct and indirect loans to one individual, firm, or corporation
Limit interest paid on deposits
Limit investment in bank building
Penalty for making false financial statements for the purpose of obtaining credit from national
banks
Permit branch banks in Alaska and insular possessions
,.
Prevent delays in taking directors' oaths
Prevent erasures on the books of a bank
Prevent or limit overdrafts
Prevent ''Wildcat" banking in District of Columbia
Prohibit loans to directors except with approval of board
Prohibit officers from borrowing from their own banks
Provide penalty for breaking and entering a national bank for purpose of theft or robbery
Provide suitable penalty for making excessive loans
Provision for consolidation of national banks
Rechartered banks allowed to use original bank-note plates
Remove limitation on denomination of national-bank notes
Require certificates of deposit to be signed by two officers
Require officers and employees to give surety bonds
Standardization of by-laws
_
.
,.
Suits against usurers brought by Department of Justice
ASSETS AND LIABILITIES OF NATIONAL BANKS (see also Condition of national banks):
Percentage of principal items in each year since 1906
BANKS AND BANKING IN THE DISTRICT OF COLUMBIA.

14
20
18
17
14
16
19
19
19
15
17
16
17
14
14
19
14
19
18
18
17
17
18
16
8

(See District of Columbia.)

BANK FAILURES. (See also State and private bank failures):
Amendments to law to prevent, recommended
Capital and circulation of national banks closed during the year
Causes of failures of national banks
Disbursements of assets of national banks, in dividends, salaries, etc
In connection with growth of system
Number and assets of national, on June 30,1914,1915, and 1916
Number and liabilities of national, reduced under Federal reserve system
Number of national, capital and dividends paid during year
Number of national, resuming operation in year ended June 30,1916
Number of national since beginning of system
State and private bank failures
Statistics relative to closed and active receiverships of national banks

63366°-~17

16
15
18
16

13-19
62
65
63
4
5
5
64
6
62
102
64

203

204

INDEX.

BANKING POWER OF THE UNITED STATES:

Page.

As seen by the Manchester Guardian
Comparison of, in 1915 and 1916
BANKING PREMISES. (See also Condition of national banks; State and private banks):
Amendment to limit investment in

134
89
19

BANKING RESOURCES:

Actual and estimated, of the United States
By States, June 30,1916
BANK RESERVES. (See Reserves of national banks.)

89
91

BANKS OF ALL KINDS IN THE UNITED STATES:

Banking resources and liabilities, June 30,1916, by States
91
Deposits (individual) in each class of banks, June 30,1916
101
Growth of banking in the United States since 1863
97
One year's growth of banking in United States
11
Reports of condition of all reporting banks, June 30,1916...,
88
Resources and liabilities of 27,513 reporting banks, together with 12 Federal reserve banks, June
30,1916
88
Resources and liabilities of all reporting banks in the United States by years, 1863-1916
97
Statement of resources and liabilities, all banks, 1912-1916
96
Summary of combined returns, national and other banks, June 30,1916
89
BILLS PAYABLE (see also Condition of national banks):
Liabilities of national banks on account of
29,37
BONDED DEBT OF THE UNITED STATES (see also United States bonds):

Amount of, and interest on
65,66
Classification of all outstanding bonds
66
BONDS AND OTHER SECURITIES (see also United States bonds):
Changes in, of national banks, at date of each call during the year, by geographical divisions... 44
Classification of investments in
33
Comparative table of domestic and foreign securities
34
Foreign securities
33,34,131,133
Investments in, by national banks
28,32,33
Liabilities on account of, borrowed
29,37
Productivity of, during the year
51
BONDS OF UNITED STATES. (See United States bonds.)

BORROWED BONDS AND MONEY (see also Condition of national banks):
Liabilities of national banks on account of

28,37

BRANCHES OF NATIONAL BANKS:

Amendment recommended authorizing establishment of, by banks in the United States, Alaska,
and insular possessions
18-19
Foreign, authorized
1
58-59
Table of assets and liabilities of foreign branches
59
BUILDING AND LOAN ASSOCIATIONS:

Building and loan associations in the District of Columbia
Building and loan associations in the United States

104
105

BY-LAWS:

Amendment recommended to require standardization

CALCULATING RESERVE.
CAPITAL, GENERAL BANKING:

Congestion of, in cities relieved
Everywhere, obtainable for business
In all reporting banks
'
Increase of, since beginning of Federal Reserve System
Of banks organized and closed, 1863 to October 31, 1916
Wider diffusion of banking wealth

1
2
90
4
53
4

CAPITAL OF NATIONAL BANKS:

Changes in, during the year
Percentage of, to assets, 1906-1916
Relating to failed national banks
Relation of, to deposits, etc., of national banks

28,36
8
62,64
43

CASH. (See Money.)

CHARTERS OF NATIONAL BANKS. (See Organization of national banks; Extension of charters.)
CIRCULATION. (See^National bank circulation; Federal reserve banks.)
CLEARING-HOUSE ASSOCIATIONS (see also Exchanges for clearing houses):
Comparative statement of transactions of, during 1915 and 1916
Summary of transactions during the year

75
74

COMMERCIAL AND FINANCIAL CHRONICLE:

Statement of prices for money in New York and for foreign exchange furnished by

INDEX.

205

COMMERCIAL PAPER. (See Loans and discounts.)
Page.
CONDITION OF NATIONAL BANKS {see also Loans and discounts of national banks; Deposits in national
banks, etc.):
Abstract of, at date of each report from November 10,1915, to September 12,1916
28
Banks with largest resources
4
Changes in volume of principal assets and in deposits, 1915-16
44
Deposits with Federal Reserve banks
34,35
Discussion and analysis of, during the year
27,40
Exceed all previous records
3
v
Exceed amount held by all other banks at beginning of Federal Reserve System
3
Exceed combined resources of all great foreign banks of issue
3
Growth of, in West and South
3
Liabilities and resources, November 17,1916, and November 10,1915, compared
6
Statement as to failed national banks
62-64
Table of assets and liabilities of foreign branches
59
CONSOLIDATION OF NATIONAL BANKS:

Amendment providing for, recommended
CONVERSION OF STATE BANKS. (See also Organization of national banks).

CRIMINAL VIOLATIONS OF LAW:

Department of Justice report concerning
Officers and employees of national banks convicted of

23
23

CURRENCY BUREAU:

Great increase of work in.
Expenses of
DENOMINATION OF NATIONAL-BANK CIRCULATION (see also National-bank circulation):
Amount of each, outstanding in 1900 and 1916
Recommended amendment to remove limitation on
DEPARTMENT OF JUSTICE (see also Solicitor of the Treasury):
Recommendation that suits be brought by, against usurers
Report of, on convictions for violations of law

135
74,129
72
18
16
23

DEPOSITORS:

In all savings banks, 1820-1916
Increase in number in national banks, enormous
In mutual savings banks, 1908-1916 (1915-16)
In stock savings banks, 1915-16
DEPOSITS (see also Deposits in national banks; State and private banks):
Aggregate (individual and bank)
Amount of savings, by States
Demand
Individual, in each class of banks
Postal savings of the United States
Savings, demand and time
Savings banks of the world

85
3
82,83
84,85
11,12
84
28,101
101
107
101
108,109

DEPOSITS IN NATIONAL BANKS:

Abstract of reports of condition of national banks showing, at date of each report during the
year
28
Amendment to limit amount of, received
17
Amendment to limit interest paid on
>
»
16
Amendment to require two officers to sign certificates of deposit
17
Analysis of
37
Changes in, of national banks, demand and time, by geographical divisions
44
Classification of, held by national banks at date of each report during the year
28,37
Exceed all previous records
2
Increase of, in national banks greater than in other banks since beginning of Federal reserve
system
2
Percentage of, to assets, 1906-1916
8
Relation of, to capital, etc
43
DEVELOPMENT IN NATIONAL BANKING:

Represented by capital, deposits, loans, etc., since October 21,1913

45-48

DIGEST OF NATIONAL-BANK DECISIONS:

Authority of liquidating committee of a national bank
Liability of directors for false statement
DIRECTORS AND OFFICERS OF NATIONAL BANKS.

(See Amendments to national-bank act recom-

mended.)
DISCOUNT RATES (see also Rates for money in New York):
Of Federal reserve banks, in effect November 27,1916

128
128

206

INDEX.

DISTRICT OF COLUMBIA:

Page.

Banks and banking in
Building and loan associations in

104
104

DISTRIBUTION OF MONEY IN THE UNITED STATES:

Stock of and amount in Treasury, in reporting banks and elsewhere, annually, since 1892
101
DIVIDENDS (see also Earnings and dividends of national banks):
Comparison of dividends paid by national banks for years ended June 30,1915, and June 30,1916..
51
Paid by national banks
52
Paid to creditors of failed national banks
,
- 63,64
Paid to creditors of failed State and private banks
102
DUE FROM BANKS. (See Condition of national banks; State and private banks.)
DUE TO BANKS. (See Condition of national banks; State and private banks.)
EARNINGS AND DIVIDENDS OF NATIONAL BANKS:

Amount and percentage of, to capital
Comparison of, on June 30,1915, and June 30,1916
Dividends paid
'.
Gross earnings of banks in each geographical division
Ratio of dividends, to capital
EXAMINATIONS. (See National bank examinations.)

52
51
52
51
52

EXAMINERS:

List of chief examiners
•. „
List of other examiners, by Federal reserve districts
Supervising examiner
,
EXCHANGES FOR CLEARING-HOUSE (see also Condition of national banks; State and private banks):
Amount affected b y Federal reserve banks doing clearing-house business
Amounts at call dates during the year
Fluctuations of, during the year

25
26
26
35
28
35

EXHIBITS:

Amount of loans by national banks to all other banks
169
Decision in re Biggs National Bank, A. B. C
139-156
Federal Farm Loan Act
174
Loans made by national banks to nondepositors
165
Loans made by national banks to other banks and trust companies
171
Loans secured b y warehouse receipts, farm loans, and loans made for correspondents
166
Money borrowed b y national banks from banks in same Federal reserve district, and in other
Federal reserve districts
172,173
Number, capital, and surplus of national banks, by groups, in central reserve cities, etc
164
Number of banks that pay fees to each member of executive committee
161
. Number of depositors in national banks in 1916 and 1910
162
Number of officers and employees of national banks
157
Salaries of officers and employees of national banks
157
Salaries paid president and cashier
159
EXPIRATIONS OF CHARTERS.
EXTENSION OF CHARTERS:

(See Extension of charters.)

Amendment recommended relative to continued use of plates and notes on
Exhibit C in appendix r e l a t i v e s Riggs National Bank
Riggs National Bank of Washington
FAILURES AND SUSPENSIONS OF NATIONAL BANKS.
FEDERAL FARM LOAN ACT:

18
145-151
21,22,23

(See Bank Failures.)

Decision of Federal Farm Loan Board determining Federal land bank districts and location of
banks
Exhibit, copy of act
—

126
174

FEDERAL RESERVE BANKS:

Amounts due from national banks
Discount rates, November 27,1916
Federal reserve bank notes appear for first time
Investments in United States bonds
Resources and liabilities, November, 1914,1915,1916
Statistics relating to
FEDERAL RESERVE SYSTEM:

37
77
36
67
88, 111
I l l , 121

Credited with maintaining low interest rates during greatest prosperity known
Healthy distribution of banking resources
National banks are backbone and substance of
Number of failures of national banks reduced under
Percentage of deposits in national banks compared with nonmember banks has increased. Reply to suggestions that banks are withdrawing from Federal Reserve System
Responsible for decrease in specie and other lawful money in vaults of national banks
—

1
4
2
5
2
3,4
9

INDEX.
FOREIGN BRANCHES OF NATIONAL BANKS:

Established under authority of the Federal Reserve Act

207
Page.

FOREIGN EXCHANGE:

Fluctuations during the year

FOREIGN GOVERNMENT SECURITIES:

Bonds in national banks in June, 1915, and June, 1916
Comparative table, domestic and foreign securities
Statements in regard to
FOREIGN LOANS. (See Loans and discounts of national banks.)
GOLD. (See Specie and other lawful money.)

33
34
131-133

GOVERNMENT ACTUARY:

Profit on circulation computed by (tables in Vol. II)

GROWTH OF BANKING IN THE UNITED STATES:

Combined returns from Federal reserve, national, and all reporting State and private banks on
June 23,1915, compared with June 30, 1916
1^12
Growth of banking in the United States since 1863
97
One year's growth of banking in the United States
11,89
GROWTH OF NATIONAL BANKS:

As indicated by figures for five-year intervals, 1896-1916
7,8
As shown by comparison of resources and liabilities on November 17, 1916, and November 10,
1915
6,7
In numbers and capital, under Federal Reserve System
3
In West and South
3
Represented by capital, deposits, loans, etc., since October 21,1913
45,48
Unprecedented during year ended November 17,1916
6
INDIVIDUAL DEPOSITS. (See Deposits; Deposits in national banks; State and private banks.)
INDIVIDUAL DEPOSITS IN ALL REPORTING BANKS. (See Deposits; Deposits in national banks; State
and private banks.)
INSOLVENT NATIONAL BANKS. (See Failures and suspensions of national banks.)
INSURANCE BUSINESS:

National bank may act as agent
20
Rules and regulations. (See Exhibit A, Vol. II.)
INTEREST (see also Usury; Rates for money; Discount rates; Deposits in national banks; Amendments to national-bank act recommended):
Amendment suggested authorizing minimum charge of, on loans
16
Amendment to limit interest paid on deposits
16
Discount rates established by Federal Reserve Board
77
Excessive rates of, on loans
12
Foreign exchange, rates of
77
Rates of, for money in New York
75,76
INVESTMENT SECURITIES. (See United States bonds; Bonds and other securities; Foreign Government securities.)
ISLAND POSSESSIONS:

Amendment to permit branches of national banks
Population of
Resources and liabilities of banks in
LAWFUL MONEY. (See Specie and other lawful money.)
LEGAL-TENDER NOTES. (See Specie and other lawful money.)

19
93
93

LEGISLATION BY SIXTY-FOURTH CONGRESS:

Amendment to Federal Reserve Act
Bills of lading
_
.
Internal revenue acts
^
Interlocking directorates, etc
Issue of gold certificates
T
LIABILITIES OF NATIONAL BANKS. (See Condition of national banks.)
LIQUIDATION. (See Organization of national banks; Voluntary liquidation of National Banks.)
LOANS. (See Loans and discounts of national banks; State and private banks.)

121
125
124
125
125

LOANS AND DISCOUNTS OF NATIONAL BANKS:

Abstracts of reports of condition showing, at date of each report during the year
28
Acceptances aiding foreign trade
10
Amendments fixing limit to direct and indirect liabilities of individuals, firms, and corporations.
14
Amendment fixing penalty for excessive loans
14
Amendments to law in re loans to directors and officers
14
Amendment authorizing minimum charge on
16
Analysis and classification of
29,31
Changes in, of national banks, at date of calls during the year, by geographical divisions
44
Classification of, made by national banks in central and reserve cities as of June 30,1916
30
Classification of, maturing in 90 days or less from June 30,1916
32

Comparative statement of amount of, in national banks in New York in June for five years.*..
31

208

INDEX.

LOANS AND DISCOUNTS OF NATIONAL BANKS—Continued.

Comparative statement of amount of, on June 30, 1914, June 23, 1915, and June 30, 1916
Excessive interest charges on
Increase of, during the year
New York rates on call and time loans and commercial paper
Percentage of, to assets, 1906-1916
Productivity of, during the year
Rates for call, time, and commercial paper
Relation of, to capital

Page.

31
12
29
75
8
51
76
44

LOAN AND TRUST COMPANIES:

Failure of.
Individual deposits in
In the District of Columbia
Resources and liabilities of
Statement relating to

103,104
101
104
80
87

METHODS OF CALCULATING RESERVE:

Forms submitted

41-43

MONEY:

Decreasein amount in national banks
Distribution of money in the United States
In all banks, June 30,1916, by States
Money in all reporting banks
Rates for money in New York
Sterling exchange during year

36
100
92
100
75
77

MUTUAL SAVINGS BANKS:

Comparative statement, depositors and deposits in, 1908-1916
Comparative statement, depositors and deposits in, 1915-1916
Individual deposits
Resources and liabilities of
Statement relating to
NATIONAL-BANK ACT. (See Amendments of national-bank act recommended.)

82,83
83
101
79
81

NATIONAL BANKS:

Backbone of Federal reserve system
Changes of location and title during the year
Comparison of resources with foreign banks of issue
Growth of, in West and South
Number increased since inauguration of Federal reserve system

2
57
3
3
3

NATIONAL-BANK CIRCULATION:

Amendment to remove limitation on denominations of
18
Amendment to permit rechartered national banks to use original bank plates
18
Amount of, failed national banks
62
Amounts of, at call dates during the year
28
Bonds available for
66
Denominations of
72
Deposits and withdrawals of bonds securing
67,68
Engraving of signatures on plates for, recommended
18
First appearance of Federal reserve bank notes
36
Outstanding, issued by national banks that failed during the year
62
Profit on (Tables in Volume II)
72
Receipts and redemption of
69,70
Redemption charges
70,73
Reduction from month to month during past year
68
Reduction of amount outstanding between September 2,1915, and September 12,1916
28,37
Taxes on, in 1916
73
Tax paid on, since 1863
74
United States bonds and other securities on deposit to secure, together with amount of circulation secured by bonds and lawful money at the close of each month since November 30,
1915
69
Vault account of
72
Volume outstanding at each call issued by banks in central reserve, other reserve cities, and
country banks
37
NATIONAL-BANK CIRCULATION REDEEMED:

Amount and average per day for year
Cost of redemptions per thousand dollars
Monthly receipts and sources of receipts for year ended October, 1916
Expenses

69
70
70
73

NATIONAL-BANK EXAMINATIONS:

Marked progress in

Repojt of,
furnished banks

25
27

INDEX.

209

N E W YORK:
Amounts held and required by national banks since October 21,1913
Classification of loans made by banks in, and in other reserve cities
Loans by national banks in
Outstanding circulation at call dates for year
Rates for money
Sterling exchange during year

Page.
49
30,31
31
37
75
77

N E W YORK CLEARING HOUSE. (See Clearinghouse.)
OFFICERS AND EMPLOYEES OF NATIONAL BANKS:

Amendment to prohibit borrowing from their own banks
14
Amendment to prohibit erasures on books
17
Amendment to require surety bonds for
17
Convicted of criminal violations of law during the year
23
Recommendation to banks to furnish life insurance to employees equal to one year's salary of each
employee
129
Salaries of bank officers and clerks
129
ORGANIZATION OF NATIONAL BANKS:

Classification of banks by capital organized since 1900
Conditions governing granting of new charters
Conversion of State banks
Conversions, reorganizations, and primary organizations since 1900
Foreign branches of national banks established
New charters and charters extended and reextended
Number and classification of national banks organized during year
Number of charters granted during year
Number of national banks organized in each month from March, 1900, to October, 1916
Number organized and closed, 1863-October 31,1916
Organized during last year and since 1900.
Since passage of Federal Reserve Act
Statement relative to

55
5
55
55
58
20
57
5
57
53
54
52
52

OVERDRAFTS:

Amendment to prevent or limit
Amounts at each report date for the year
Variation in amount during the year

16
28
32

PANICS:

Danger of, obviated
PENALTIES UNDER NATIONAL-BANK ACT. (See Amendments of national bank act recommended.)

1,2

PHILIPPINE NATIONAL BANK
POPULATION:

127

Principal countries of the world
United States, by States

109
92

POSTAL SAVINGS:

Deposits, by States
In banks, by States, June 30, 1916
Philippine Postal Savings
Postal savings banks in foreign countries
United States Postal Savings System

107
94
110
110
106

POWERS OF NATIONAL BANKS:

Enlarged by acceptances
Enlarged by authority to act as insurance agents
Enlarged by authority to negotiate real estate loans

1
...'.

10
121
121

PRIVATE BANKS:

Estimated number of, now reporting, in the United States
Failures of
Individual deposits in
Resources and liabilities of
Statement relating to

89
102-104
101
80
87

PRODUCTIVITY OF LOANS AND BOND INVESTMENTS:

Percentage of gross earnings on loans, etc., by banks in each geographical division

PROFIT ON NATIONAL-BANK CIRCULATION:

Computation of, by Government Actuary

RATES FOR MONEY IN NEW YORK:

Character of loans, range of rates, monthly, for year
Commercial and Financial Chronicle statement relative to
RECEIVERS. (See Failures and suspensions of national banks.)
RECOMMENDATIONS. (See Amendments of national-bank act recommended.)

76
75

210

INDEX.

REDEMPTION CHARGES. (See National-bank circulation; National-bank circulation redeemed.)
REDEMPTION FUND. (See Condition of national banks.)
REDISCOUNTS (see also Condition of national banks):
Liabilities of national banks on account of

Page.
29,37

REDISCOUNTS WITH THE FEDERAL RESERVE BANKS (see also Federal reserve banks):

For member banks

REPORTS OF CONDITION OF ALL BANKS IN THE UNITED STATES (see also Banks in United States):

Obtained but once each year
Statistics relative to

2
89-101

REPORTS OF CONDITION OF NATIONAL BANKS (see also Condition of national banks):

Obtained six times a year

RESERVES:

Cash reserves and balances with reserve banks
Excess distributed by geographical sections, Nov. 17,1916
Now being scientifically utilized

9
9
1

RESERVES OF NATIONAL BANKS:

Amounts required and held, together with excess or deficiency, 1913-1916
49,50
Classification of, for all national banks, at each report date for year by Federal reserve districts.. 39
Desirability of anticipating time for transferring reserve from agents to Federal reserve banks.. 8,9
Federal reserve banks' holdings of, in November, 1914-15-16
..
Ill
Held by national banks in each Federal reserve district Sept. 12, 1916, and reserve required
40
Increase in, on Nov. 17,1916
8
Methods of calculating
40-43
Now scientifically utilized
1
Percentages of, held by national banks at each report date during the year
38
RESOURCES OF NATIONAL BANKS. (See Condition of national banks.)
RIGGS NATIONAL BANK:

Decision in connection with
Extension of charter

139-156
.. 21-23

SAVINGS BANKS:

All reporting savings banks, 1820-1916
Failures of
Mutual savings banks
T
Philippine Islands
Savings banks in principal countries of the world
Statement relative to
Stock savings banks
SILVER. (See Specie and other lawful money.)

85
103
79,81,82,83,86
110
109-110
...
87
79,83,84,86

SPECIE AND OTHER LAWFUL MONEY. (See also Money.)

Accounting for decrease in, held by national banks
Amounts held at call dates during the year
Changes in, of national banks, at each call date during the year by geographical divisions
Comparative statement of amount held by national and other banks
Decrease, aggregate
Federal reserve bank holdings of
Holdings of, by all reporting banks since 1863
Holdings of, by national banks since 1863
•.
Percentage of lawful money to assets, 1906-1916
Relation of, to deposits
'

9
28
44
100
36
111-112
101
97
8
44

STATE AND PRIVATE BANK FAILURES (see also Bank failures):

Assets and liabilities for the year ended June 30,1916
Assets and liabilities of banks, 1897 to 1916
Capital, assets, liabilities, and dividends paid on account of, from 1864 to 1896
Comparative statement, by classes, 1892 to 1916
Number of, annually, since 1864

102
103
— 102
103
102-103

STATE BANKS:

Converted into national banks
Failures of
Individual deposits in
Resources and liabilities of
Statement relating to

55
102-104
101
79
80

STATE, SAVINGS, PRIVATE BANKS, AND LOAN AND TRUST COMPANIES:

Consolidated returns from
Failures of
Resources and liabilities of, by classes
Summary of reports of condition of banks other than national.
STOCKS. (See Bonds and other securities.)

80
- - - - 103
79
.• 78

INDEX.

211

STOCK SAVINGS BANKS:

Page.

Comparative statement, depositors and deposits, 1915-10
Estimated number of, included with statistics for State banks
Individual deposits in
In the District of Columbia
'.
Resources and liabilities of
Statement relating to

84
85
101
104
79
83

SUMMARY OF THE COMBINED RETURNS FROM NATIONAL BANKS, INCORPORATED STATE BANKS, TRUST
COMPANIES, AND PRIVATE BANKS JUNE 30, 1916:

Amount and classification of assets and liabilities

SURETY BONDS:

Officers and employees of banks to give, recommended

SURPLUS AND UNDIVIDED PROFITS OF NATIONAL BANKS:

Changes in, during the year
Including all banks from 1863
Percentage of, to assets, 1906-1916
Percentage of, to capital. t
TAXES ON NATIONAL BANKS (see also National bank circulation):
Corporation and income tax
Paid on national bank capital and deposits
Paid on national bank circulation

28,36
98
8
52
73
73
73

TITLE OF NATIONAL BANKS:

Changes of, during the year

UNITED STATES BONDS:

Amendment to allow sale of, securing circulation 30 days after liquidation
Amount on deposit and circulation secured thereby
Amounts at each report date for the year
Classification of, outstanding
Analysis of holdings of, by national banks
Banks organizing without depositing, for circulation
Deposits and withdrawals of, by national banks
Investments in, and other securities, by national, State, and private banks
Investments in, and other securities, by State and private banks
Investment in, by Federal reserve banks
Investment in, by national banks
Monthly range of prices and investment value of, for year
Percentage of, to assets, 1906-1916
Table of, to be printed in Volume I I of this report.

20
69
28
60
T
32
68
67-68
92,93,90
78,79,80,81
66,67, 111, 112,113
67
CO
8

UNITED STATES DEPOSITS:

In banks, by States
In banks, by years, 1863-1916
UNITED STATES POSTAL SAVINGS SYSTEM.
USURY:

94,95
97,99
(See Postal savings.)

Abatement of
A marked subsidence in usury this year
Amendment to permit Department of Justice to bring suits against usurers
Amendment to permit special rates for small loans
Comparison between September, 1915, and November, 1916
Legislation by Congress to punish, desirable
Steps to annul charter on account of

12,13
12
16
16
12,13
13
12

VAULT ACCOUNT OF NATIONAL-BANK CIRCULATION:

Receipts, deliveries, and stock on hand year ended October 31,1916

VIOLATIONS OF NATIONAL-BANK ACT:

Amendment
Amendment
Amendment
Amendment

to authorize Comptroller to bring proceedings against directors for losses
to empower Comptroller to remove directors
to establish appropriate penalties for
tofixpenalty for excessive loans

14
15
16
14

VOLUNTARY LIQUIDATION OF NATIONAL BANKS:

Amendment to allow sale of bonds in 30 days
In connection with growth of banks
Number of, during the year and during the existence of the system
Statement as to, during past year

20
4
60-61
60

WORK OF THE CURRENCY BUREAU:

Increase in

135

WORLD:

Population of principal countries of
Statistics relative to postal and other savings banks in principal countries of
Whole world debtor to the United States
'.

109
108,109
133

Full text of Annual Report of the Comptroller of the Currency : 1916, Volume 1

FRASER