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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 HI 1 2 2 3 3 3 3 4 5 5 6 8 8 8 9 10 11 12 13 14 14 14 14 14 15 15 16 16 16 16 16 17 17 17 17 17 18 18 18 18 18 19 19 19 19 19 20 IV 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 20 20 21 21 22 23 23 25 25 26 26 27 27 29 29 30 31 31 31 32 32 33 33 33 34 34 35 36 36 36 36 37 37 37 37 38 39 40 43 44 45 49 51 51 52 52 53 54 55 57 58 60 62 65 65 66 67 67 67 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 V Page. 68 69 70 71 72 72 73 74 75 77 77 78 78 80 81 83 85 87 87 88 89 89 91 96 97 100 100 101 102 104 104 105 106 108 Ill 115 116 119 121 121 124 125 125 125 125 126 127 128 128 128 129 129 129 131 133 134 135 VI 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 139 142 145 146 146 147 1 148 149 150 150 151 151 152 153 157 158 159 161 162 164 165 166 169 171 172 172 173 174 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 1 2 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. 3 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 4 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. 5 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. 6 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 - .. 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. 7 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. 8 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 71.5 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. 9 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 10 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. 11 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 12 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. 2 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. 3 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. 13 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: 14 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. 15 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. 16 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, 17 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 18 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. 19 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 20 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. 21 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. 22 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. 23 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: 24 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. 25 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, 26 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. 27 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 3 28 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. 29 [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. 30 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. 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 31 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. 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. 32 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. 33 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. 34 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. 35 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. 36 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. 37 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 38 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. 39 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. 40 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. 41 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 $. $. $. 42 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. 43 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 44 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. 45 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 46 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. 47 [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 48 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. 3 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 w 3,995 79,136 160,626 114,121 123,931 77,061 84,309 54,436 tei Q O •d 3 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 o 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 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 g ... 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 j 375 Q ::: a =^ ... oi REPORT OF THE COMPTROLLER OF THE CURRENCY. 51 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 52 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 53 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 54 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 36 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. 55 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 37 6,435,000 59 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 56 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 3 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 1 30,000 250 6,250,000 . . 19 611,000 232 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 3 Grand total 2 1 550,000 100,000 5 1 625,000 100,000 5 635,000 3 Total..-. 75,000 75,000 3 650,000 6 725,000 5 635,000 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 57 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 40 34 36 45 45 40 32 28 28 12 16 16 10 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. 43 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 15 Capital. 64 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. 58 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. 59 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 2 12,432 826 6,377 25 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 29 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 14 30 186 1 4,566 144 3,420 55 922 385 3 38 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 4 486 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 5 (4) 41 273 48 1,002 55 60 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: 61 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 1 2 5 2 2 2 1 8 2 3 4 3 1 1 1 8 1 2 1 2 1 1 1 1 1 1 20 1 9 4 5 2 1 20 2 3 1 1 1 2 2 2 1 1 2 2 6 1 4 1 7 5 5 2 5 9 2 34 1 1 1 1 1 1 1 1 3 2 2 1 8 3 4 1 4 i 1 2 1 1 2 2 1 1 1 1 1 1 1 1 1 1 1 2 2 1 1 8 1 1 1 13 6 1 17 1 2 19 13 2 8 2 39 2 11 13 1 2 1 1 3 5 1 4 1 1 1 1 7 1 1 1 8 Total of United States. 40 3 13 1 3 1 1 5 Total Pacific States.... Total Insuffi- No cient reason voluntary busi- given. liquiness. dations. 3 19 16 1 1 9 11 23 14 1 11 6 135 62 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 80,000 2792 Oct. 11,1882 Dec. 6,1915 50,000 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. 63 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. 64 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 i 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. 65 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. 66 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. 67 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 68 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. 69 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 70 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. 71 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. 72 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. 73 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 74 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. 75 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 76 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 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. 77 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. I 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 78 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. . . . 79 $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. 80 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. 81 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. 82 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. 83 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 1 5,985 1,497,765.34 250.25 i 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 21 263,589 103,653,761.84 1 87,130 56,499,968.02 630 8,307,787 3,950,666,362.08 475.53 Grand total 8 1 2 Estimated 3 Estimated for 1 bank. for 3 banks. Estimated for 2 banks. 1 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 19 272,297 108,551,747.95 398.65 648.45 1 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 84 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 20 101,452 13,535,000.00 133.41 49 184,694 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. 9 18,911 $7,279,837.20 $384.95 10 1 32 33,018 42,401 13,809,514.59 12,361,731.66 418.23 291.54 1 28 148.92 Deposits. 1 18 80,640 12,009,195.68 Total Eastern States.. 51 156,059 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. 1 and average 100 2 Included with State banks. REPORT OF THE COMPTROLLER OF THE CURRENCY. 85 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 21 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 57 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 10 56,232 14,251,551.68 253.44 3 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 86 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. 87 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. 88 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. 2 * Includes Government deposits and reserve deposits. 89 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 1 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, 90 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 91 $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 7 CD 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 W 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 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 t 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 41 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, o 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 CO 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 1 761 222 2,668 33,798 23,535 48,085 3,651 105,418 32 36 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 37 53,468 113,251 6,926 fi 0Q9. 253,575 232,800 442,712 32,271,238 CO Or CO c 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. 1 g o Includes other real estate owned. a Includes exchanges for clearing house. j REPORT OF THE COMPTROLLER OF THE CURRENCY. 97 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 98 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. 99 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 1 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. 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 8 108 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 W i o K Q O ^ c o h; fe 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 a © g 50.42 136,355,653 W 15.02 H W o 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 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. i :::::::::: 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 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 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 on 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 1,000,000 2,000,000 2,000,000 5,000,000 1,000,000 2,000,000 2,000,000 5,000,000 200,000 ,400,000 400,000 1,000,000 200,000 400,000 400,000 1,000,000 640,000 480,000 480,000 $400,000 2,000,000 640,000 480,000 480,000 400,000 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 10 139 140 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: f 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. C, 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 11 156 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 6 915.00 152.50 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 F. 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 4 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 4 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. 4 36,000 3 32,000 28 1 629,500 10 490,000 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 20 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 4 18,700 3 15,500 29 251,200 10 120,500 65 4 269,020 74 1 351,835 99 636,450 9 84,200 243 1 851,530 105 450,600 31 163,250 1 5,500 312 5 1,139,250 182 1 817,935 159 1,050,900 20 210,200 317 159 183 20 3,651 4,494 6,609 10,510 3,594 4,470 6,609 10,510 EXHIBIT G. 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. 40 28 105 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 H. 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 T .... 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 46 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. , 50 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 K. 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 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—Continued. Loans secured by warehouse receipts For cotton. 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 J 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. 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—Continued. Loans secured by warehouse receipts. For cotton 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 6 353 1,253 747 741 3,094 6 1,800 4,373 657 225 4,835 6,714 1,215 328 25 302 20 328 26 26 302 20 354 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 26 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 10 55 34 214 46 45 67 324 147 678 393 2,836 1,329 5,236 10 89 260 112 471 781 308 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 23 50 187 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 23 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. 30 84 90 541 58 1,172 233 2,726 421 18 174 Total Eastern States: Central reserve city.. Other reserve cities.. Country banks 929 40 969 599 1,405 3,147 18 56 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. 50 249 76 201 50 325 775 20 133 29,516 1,298 16 645 62 405 50,169 2,148 557 201 26 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 MS 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 27 158 25 210 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 ... 27 ; 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 12,627 171 EXHIBIT N. 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 2 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 70 418 164 1,587 57 803 70 2,517 582 6,320 31,736 305 1,387 300 500 45 57 107 28 2,536 305 2,118 4,387 416 362 7,145 1,065 494 494 345 557 107 28 4,959 5,165 8,208 3,524 925 60 482 185 69 • 35 60 5,220 1,311 14,303 3,524 925 542 185 69 35 5,280 15,614 855 450 910 26 57 30 450 3,602 1,150 757 3,717 58 26 1,724 1,724 855 — 1,360 — 26 57 30 4,052 5,624 84 476 Total 803 1,398 1,119 6,320 57 3,428 Eastern States: Central reserve cities Other reserve cities Country banks 1,398 189 ; 380 187 10 39 13 1,105 3,152 476 380 187 10 39 13 1,105 3 152 144 174 550 25 30 923 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 25 Total United S t a t e s . . . 10,883 2,885 3,787 803 300 510 2,977 500 3,787 30 923 383 272 206 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 9 355 639 275 9 355 639 2 475 403 152 65 5 880 217 1,855 8,627 100 2 727 473 5 100 1,202 1,123 3,167 506 267 39 50 50 3,028 12,656 10,482 4,290 506 267 39 100 15,684 200 755 447 320 75 200 1,597 955 447 320 75 1,797 990 52 8 30 1,080 990 52 8 30 1,080 65 51. 20 65 51 20 13,647 5,066 1,214 397 39 175 20,538 2 2,530 11,115 1,275 3,791 1,214 100 297 39 50 125 2 3,955 16,581 16,647 5,066 1,214 397 39 175 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. 178 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 180 REPORT OF THE COMPTROLLER OF THE CURRENCY. 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 182 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. 184 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 E 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 186 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 03366°—17-—13 188 BEPOBT OF THE COMPTROLLER OF THE CURRENCY. 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. 189 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 190 REPORT OF THE COMPTROLLER OF THE CURRENCY. 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 192 REPORT OF THE COMPTROLLER OF THE CURRENCY. 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 BEPORT OF THE COMPTROLLER OF THE CURRENCY. 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 194 BEFOBT OF THE COMPTROLLER OF THE CURRENCY. 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 196 REPORT OF THE COMPTROLLER OF THE CURRENCY. 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. REPORT OF THE COMPTROLLER OF THE CURRENCY. 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 198 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 10 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 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 18 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 77 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). 19 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 77 206 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. 59 FOREIGN EXCHANGE: Fluctuations during the year 77 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) 72 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 51 PROFIT ON NATIONAL-BANK CIRCULATION: Computation of, by Government Actuary 72 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 29 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 2 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.) r 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 90 SURETY BONDS: Officers and employees of banks to give, recommended 17 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 57 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 72 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 '. O 109 108,109 133