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Calendar No. 107.
63d C o n g re s s , j
1st Session.
SEN ATE.
I R e f t . 133,
P a rt 2.
\
|
BA N K IN G AN D CURREN CY.
November 22, 1913.—Ordered to be printed, with the individual views of mem*
bers of the committee.
Mr.
(for himself, Messrs. O 'G o r m a n , R e e d , P o m e r e n e , S h a f and H o l l i s ) , from the Committee on Banking and Currency,
submitted the following
O w en
roth ,
V IE W S .
[To accompany.H. R. 7837.]
The chairman (Mr. Owen), on behalf of himself and his colleagues,
Messrs. O ’Gorman, Reed, Pomerene, Shafroth, and Hollis, submit,
the following memorandum:
The Committee on Banking and Currency, to which was referred
the bill (H . R. 7837) to provide for the establishment o f Federal re
serve banks, etc., received the bill on September 18, 1913, and the
members thereof, having been unable after two months to agree upon
a report, the committee having divided into two sections, were com
pelled, finally, to agree to report the bill back to the Senate without
recommendation from the committee acting as a committee, but
submitting separately the respective views of the two sections of the
committee.
The views of the Democratic section of the committee are embraced
in the House bill, with certain interlined amendments submitted
herewith (Exhibit A ), and the following observations are made to
explain the origin and principles o f the measure, give a general out
line o f the changes which have been proposed in the House bill, the
reasons therefor, etc.
AN OUTLINE OF THE INVESTIGATION MADE AFFECTING THE PRINCIPI^ES
AND CONSTRUCTION OF THE PENDING MEASURE.
So many persons have been under the impression that Congress
was inclined to act without sufficient consideration of the pending
measure and the principles involved in it, that attention is called to
the work which has been done preliminary to the drafting o f the pres
ent bill.
3
4
B A N K IN G
AND C U R R E N C Y .
It has been long understood that the American banking system
was seriously defective in having no adequate safeguard against
financial panic, against financial stringencies, and violent fluctua
tions o f interest rates, so that immediately after the panic of 1907
a temporary measure providing against panic was passed by Con
gress in the Vreeland-Aldrich Act, approved May 30, 1908. This
Bill established the National Monetary Commission. The act gave
authority and instruction to the commission as follows:
It shall be the duty of this commissi m to inquire into and rei>ort to Con
gress, at the earliest date practicable, what changes are necessary or desirable
in the monetary system of the United States or in the laws relating to banking
and currency, and for this purpose they are authorized to sit during the ses
sion or recess of Congress ;it such times and places m s they may deem desirable;
to send for persons and papers; to administer oaths, to summon and compel
the attendance of witnesses. * * * The commission shall have the power,
through subcommittee or otherwise, to examine witnesses, and to make such
investigations and examinations, in this or other countries, of the subjects com
mitted to their charge as they shall deem necessary.
Under this instruction the National Monetary Commission con
ducted the most extensive and far-reaching investigation of the
banking systems of the entire world, and published a series of re
ports including over 30 volumes and a vast compilation of literature
involving over 2,500 volumes, and finally resulting in the recom
mendation of a central bank, privately controlled, which was sub
mitted to the Senate of the United States under the title of UA bill
to incorporate the National Reserve Association of the United
States, and for other purposes.” (Vol. I, p. 43.) This bill was intro
duced during the preceding Congress and was not considered. It
was, however, reintroduced in the present Congress (63d Cong., 1st
sess, S. 7) on April 13, 1913, and has been commonly referred to as
“ the Aldrich bill.”
This bill provided substantially that the national reserve associa
tion should be established for 50 years with an authorized capital
equal to 20 per cent o f the capital of all banks eligible for member
ship with one-half paid in. It was provided that the Secretary o f
the Treasury, the Secretary of Agriculture, the Secretary o f Com
merce and Labor, and the Comptroller o f the Currency, snould be a
committee to organize the national reserve association. It was to
have a capital of $200,000,000 and 15 branches in 15 districts o f the
United States. Each branch was to be controlled by a board o f di
rectors chosen by the member banks, with power to make by-laws,
etc., and the central national reserve association was to have 39 direc
tors elected by the directors of the 15 branches, and 7 additional ex
officio members o f the board of directors, to wit, a governor o f the
national reserve association, 2 deputy directors, the Secretary o f the
Treasury, the Secretary o f Agriculture, the Secretary o f Commerce
and Labor, and the Comptroller o f the Currency, so that the Gov
ernment had 4 representatives out of 46 members o f the board of
directors of the national reserve association. An executive com
mittee of 9 members was provided with 1 representative o f the
Government, the Comptroller o f the Currency, ex officio a member.
Each branch bank was to have a manager and a deputy manager,
appointed by the governor of the association.
B A N K IN G AN D C U R R E N C Y .
5
The earnings o f the association were to be 4 per cent annual divi
dend, cumulative, a 20 per cent surplus provided, and a division of
the remainder between the United States and the shareholders.
The Veserve association was made the principal fiscal agent o f the
United States. Provision was made for rediscounting notes and
bills o f exchange drawn for agricultural, industrial, and commercial
purposes, having a maturity of not more than 28 days. The reserve
association was given various powers to deal in gold coin or bullion,
to purchase from subscribing banks bills of exchange, open foreign
banking accounts, transfer deposit balances from one bank to
another, etc.
It was required to keep 50 per cent reserve against demand liabili
ties, including deposit and circulating notes, with a tax upon any
reserve deficiency.
It was authorized to purchase for a limited time the 2 per cent
bonds of national banks, assume the redemption of the notes of such
banks, and issue its own notes in lieu of such national-bank notes.
It was authorized to have a cover for such note issues, either of 50 per
cent of cold or other money of the United States, or bills of exchange
arising out of commercial transactions, as defined by the act. These
notes could be issued up to nine hundred millions without a gold
cover under a special tax of l.\ per cent, and any notes in excess of
$1,200,0(X),000 not covered by gold or lawful money could be taxed
at 5 per cent, provided that the outstanding national-bank notes
should be computed as a part of such issue. Its circulating notes
,wcre to be redeemed in lawful money and maintained at a parity.
The circulating notes of this association were to be received at
par in payment of all taxes, excises, and other dues to the United
States, and of alTsalaries and other debts and demands due by the
United States, except obligations specifically payable in gold, and for
all debts due from or by one bank or trust company to another, and
for all obligations due to any bank or trust company.
The 2 per cent bonds purchased were to l>e exchanged for 3 per
cent bonds payable in 50 years, and the association was to hold
such bonds during its corporate existence, with the right, at the option
of the Secretary of the Treasury, to sell fifty millions of such bonds
annually after five years. It provided for the establishment of
branches of banks to do a foreign banking business.
The Government of the United States was required absolutely to
deposit all of its general funds with the national reserve association
and i t s branches, a f t e r Ib e organization of the association, and there
after a l l receipts of the Government except its trust funds.
Tips hill was made a matter of general debate throughout the
United States, was vigorously pressed by the friends of the meas
ure. and discussed in all of the large cities of the Nation. It was
indorsed by the American Hanking Association, but. after abundant
discussion, was condemned by the Democratic national convention at
Baltimore on July 3, 1912, in the following language:
W e oppose (lie so-called A ld rich hill or the establishment o f a central h a n k :
and w e believe the people o f the co untry will he largely freed from panic mid
subsequent unemploym ent and business depression by such a syste m atic re
vision o f ou r bankin g la w s as will render temjMirary relief in localities w here
such re lief is needed with protection from con trol or dom in atio n by w hat is
kn own as the Money Trust.
2 ( ) 36 (*> 0 — 58 ---------- 12
6
BANKING AND CURRENCY.
T h e obviou s reason fo r p u blic d isa p p rova l o f this b ill was that the
com p a ra tiv e independence o f the variou s districts o f the cou n try was
ign ored , the con centration o f b an k in g p ow er was very extrem e, and
fin ally it placed the n ational cred it system in the con trol o f private
persons, w ithout any adequate supervision o r con trol b y the G o v
ernm ent o f the U nited States, and p rop osed to a llow these banks to
issue the curren cy o f the cou n try as private corp oration s.
THE PUJO INVESTIGATION.
U n d e r H ouse resolutions 439 and 504. S ix ty -S e co n d C ongress, second
session, the so-called 44M oney T ru st in v e stig a tio n ” was con du cted b y
th e H ouse o f Representatives, b eg in n in g M a y 16, 1912. T hese hear
in gs were published in 29 parts, con sistin g o f thousands o f pages,
a n d w ith a m ost illu m in a tin g report sh ow in g the existence, sub
s ta n tia lly, o f a vast concen tration o f p ow er in the hands o f a few
m en over the cred it system o f the U nited States.
THE GLASS INVESTIGATION.
These investigations were further continued by a subcommittee o f
the Committee on Hanking and Currency o f the House o f Represen
tatives, beginning on Tuesday, January 7, 1918, and directed by Hon.
Carter Glass, chairman, according to the leading bankers and
finencial experts o f the country extended hearings, comprising a
volume o f 745 pages of printed testimony.
In addition to these extensive examinations by the National Mone
tary Commission, the Pujo investigation, and the Glass investiga
tion various representatives o f the American Banking Association
were in frequent consultation with Chairman Glass o f the House
Committee on Banking and Currency, with the chairman o f the
Senate Committee on Banking and Currency, with the Secretary o f
the Treasury, and others who were concerned in the primary framing
o f the pending measure, so that the plea of some o f the interests
opposing the bill that the matter had not l>een properly investigated
had no just foundation o f fact. But in addition to these investiga
tions and discussions the bill, when finally introduced in the House
o f Representatives, was discussed for many weeks in the Committee
on Banking and Currency o f the House, in the Democratic con
ference. and for .many days in the House o f Representatives, finally
passing September 17, 1913.
THE SENATE INVESTIGATION.
Anticipating the action o f the House o f Representatives upon this
bill, the Committee on Banking and Currency o f the United States
Senate l>egan hearings on the bili September 2, 1913, holding their
sessions from 10 o'clock in the morning until 5 and 6 in the even
ing and listening to various representatives o f the American Bank
ing Association, o f credit associations, o f business men, and o f
financial experts. These hearings when concluded and presented^ to
the Senate in Senate Document Xo. 232. Sixtv-third Congress, first
session, on Xovemlwr 0, 1913, in three volumes, with index, make
BANKING AND CURRENCY.
7
3,259 pages. It is therefore obvious that great pains have been taken
by the authorities o f the United States and by the committees in
(Congress to proceed with the greatest caution and upon the fullest
information in the adjustment o f this very important measure.
When the hearings before the Senate Committee on Banking and
Currency were concluded, the members o f the committee discussed
the bill for over two weeks, finally agreeing to submit their separate
views in the form o f the House bill, H. R. 7837, with certain amend
ments thereto, representing the respective views o f the two sections
o f the committee.
Both sections o f the committee, however, agreed on the great
fundamentals o f the bill—that is :
First. On the necessity for greater concentration o f tlie banking re
serves o f the country.
Second. The volume o f such reserves.
T h ird . T h e volum e o f the capital o f the proposed banks.
Fourth. The mobilization o f such reserves.
Fifth. The promotion o f an open discount market
J Sixth. The provision for elastic currency; the issuance o f Federal
reserve notes.
Seventh.. That the Federal reserve notes should be the obligations
o f the United States.
Eighth. That the system should be the regional Federal reserve
bank system instead o f a central bank; and
Ninth. The control o f the system itself by the Government.
The two sections o f the committee disagree upon the number
o f the Federal reserve banks, the method o f subscribing for the stock
o f such banks, the method o f electing the directors o f such banks, the
method o f administering the regional reserve banks, and these d if
ferences arise, in the main, because o f two schools o f thought, one part
o f the committee believing in a central batik administered by a central
board and the other part o f the committee proposing Jo establish a
number o f comparatively independent district banks administered
by boards o f directors chosen from and representing the several
districts, but under the strict supervisory control of the Government.
The interests or the public are thus protected by Government super
vision, and the vast and intricate technical detail o f bank adminis
tration being placed in the hands o f the bankers whose funds and
whose business is involved.
T IIK PURPOSES o r T IIE B A N K IN G AN1> CI KHKNCY B IL L.
The chief purposes o f the banking and currency bill is to give
stability to the commerce and industry o f the United States, prevent
financial panics or financial stringencies; make available effective
commercial credit for individuals engaged in manufacturing, in com
merce. in finance, and in business to the extent o f their just deserts;
put an end to the pyramiding o f the bank reserves o f the country
and the use o f such reserves for gambling purposes on the stock ex
change.
8
B A N K IN G AND C U R R E N C Y .
In ord er to accom plish these results there are certain great fu n d a
m entals recognized by all experts as essential and necessary, to w it:
First. T h e p rop er concentration o f the bank reserves o f the cou n try
under the con trol o f the banks themselves, safegu arded by g o v e rn
m ental supervision.
Second. A suitable bankin g capital as a m argin o f safety.
T h ird . P la cin g the larger part o f the G overnm ent fu n d s w ith such
banks, where they m ay be used in the service o f the national com
merce.
Fou rth . A u th orizin g the issuance o f elastic currency against liquid
com m ercial bills under proper safeguards.
F ifth . E stablish in g an open market fo r liquid com m ercial bills, b y
p ro v id in g through the reserve banks a constant and u n fa ilin g m arket
fo r such bills at a steady rate o f interest.
Sixth . F in a lly , protectin g the gold reserve o f the U nited States
b y the same m ethods adopted in E urope, to w it, raisin g the rate o f
interest th rou gh the Federal reserve banks and authorizin g such
banks to acquire foreign bills when g old shipm ents are anticipated
and takin g other precautionary measures.
T H E M E C H A N IS M OF T H E FEDERAL RESERVE B A N K SY ST E M .
These im portant national ends are proposed to be obtained by
the m echanism o f eight Federal reserve Danks organized w ith a
capital equal to 0 per cent o f the capital and surplus o f the N ational
and State banks in the several districts.
T h e eight districts are proposed to be laid off by an organization
com m ittee, w ho shall organize a Federal reserve bank w ith head
quarters in a central city o f each district, each bank to establish as
m any branches in its district as may be fou n d expedient.
I t is proposed that each Federal reserve bank shall have nine
directors, six elected by the banks and three chosen by the F ederal
reserve board.
T h e onUr<iLJ$ystein is proposed to be under the supervisory co n
trol o f the F ed eral reserve board, consisting o f the Secretary o f the
Treasu ry and six other members o f such ooard appoin ted b y the
President and confirm ed by the Senate.
T h e Federal reserve board is given very broad pow ers o l.s u p e r
vision and'TsTassisted"by a Federal advisory council, consisting o f
one representative from each o f the Federal reserve banks.
T h e details o f the organization and the p rin cip les o f the bill w ill
be hereinafter m ore fu lly set forth .
FEDERAL RESERVE DISTRICTS.
T h e Federal reserve districts are proposed to be organ ized by the
Secretary o f the Treasury and not less than tw o members o f the
Federal reserve board (sec. 2 ) , w ho shall sum m on expert aid and
take testim ony and lay out such Federal reserve districts, eight in
num ber, a ccord in g to the convenience and custom ary course o f busi
ness, design atin g the city in which the d istrict Federal reserve bank
shall be located (p . 2 ).
W h en the districts shall have been laid out and the city deter
m ined in w hich such Federal reserve, banks shall be located, five
BANKING AND CURRENCY.
9
o f the subscribing banks in such district are authorized to take out
a charter in the same manner and with similar powers as a national
bank (pp. 11 to 14), except that the business o f the Federal reserve
bank is confined to member banks and other Federal reserve banks
and to the United States except its open market operations, which
may be with any responsible concern.
These banks are given, as a part o f the charter rights, the right
to issue Federal reserve bank notes against United States bonds in
the same manner as a national bank, the purpose being to' permit
said banks to absorb as much o f the 2 per cent bonds as the national
banks may care to dispose of.
STOCK SUBSCRIPTION.
The amount o f possible stock is placed at a sum equal to 6 per
cent o f the capital and surplus of national banks and State banks
and trust companies, exclusive o f savings banks, a possible total of
about $150,000,000, one-half o f which will be required to be paid
in during a period of six months after the organization of said
banks and one-half subject to call, with a double liability resting
upon the subscribers against the amount subscribed.
The reasons for requiring the banks to subscribe to this stock with
a double liability are—
First. To protect the large deposits of general funds which the
United States will probably place with such banks.
Second. T o protect the United States against the extension of
credit through the Federal reserve notes, the obligations of the United
States, loaned to the Federal reserve banks against commercial bills.
Third. To safeguard the system itself, to protect the large volume
of reserves placed with such banks, and give to such banks the confi
dence o f the world.
Fourth. To justify the Government in putting on the banks the
prime responsibility o f administering these banks and safeguarding
their own reserves and their owTn capital stock, and making them
responsible to the country for safeguarding the welfare of the na
tional banking system, protecting the national gold supply under the
safeguard of governmental supervision.
Every national bank located in a given district is required within
60 days after the passage o f the act to signify its acceptance of the
terms o f the act, and every State bank eligible for membership is
permitted to signify its assent in like manner.
Anv national bank within such district failing to signify its assent
may be discontinued as a reserve agent upon 30 days’ notice by the
organization committee or the Federal reserve board. And should
any national bank within one year after the passage of the act fail
to become a member bank o f the system, it is required to cease to act
as a national bank.
In the contingency that the capital stock is not fully subscribed
by the banks o i a given district, provision is made (p. 7) to offer
such stock to public subscription, and on the contingency that such
stock is not subscribed by the public the balance o f the necessary
capital may be allotted to the United States and sold by the Govern
ment at proper times and places.
BANKING AND CURRENCY.
10
A ll stock held by the public or by the Government will be voted by
the directors o f the Federal reserve bank o f class C, representing the
Government.
CONTROL OF THE FEDERAL RESERVE BANKS.
Each Federal reserve bank will be controlled by a board o f nine
directors—three o f class A, elected by the banks; three o f class B —
business men— elected by the banks; and three o f class C, appointed
by the Federal reserve board to represent the United States.
One director o f class C will be a Federal reserve agent and chair
man of the board, and one a deputy Federal reserve agent and dep
uty chairman, representing expressly the interests o f the United
States at such bank and issuing Federal reserve notes to the reserve
bank, holding the security therefor, and receiving such notes for
safe-keeping when returned by the bank.
PROBABLE RESOURCES OF FEDERAL RESERVE* BANKS.
The capital stock o f 25,195 banks in the United States, including
savings banks, amounts to $2,010,000,000; surplus, $1,585,000,000. Six
per cent o f this sum would be something over $200,000,000, and the
total liability would make over $400,000,000. Assuming that one-half
o f these concerns enter the system, it would give a capital of
$100,000,000, witli over $50,000,000 paid in.
The total reserves which would be paid into the Federal reserve
banks by 7,120 national banks, outside o f reserve or central reserve
cities, would be $166,000,000 (Exhibit B, p. 1) ; from 315 reserve
city banks, $110,000,000; and from 52 central reserve city banks,*
$96,000,000, which, including an estimated deposit o f $150,000,000
from the Government, would make an amount equal to $672,00,000.
I f the State banks and trust companies come m, omitting the sav
ings banks, it would add $279,000,000 o f reserves and $21,000,000 o f
capital stock (Exhibit B, p. 6 ), making a total o f $972,000,000.
These funds would not include any optional deposits that might be
voluntarily placed with the Federal reserve bank by member banks.
DIVISION OF EARNINGS.
It is proposed in the pending bill to give the stockholders $ per
cent dividends, lay up a surplus o f 20 per cent, and give the United
States the additional earnings. The policy of limiting the dividends
to 6 per cent is based upon the theory that these great public utility
banks are not intended to be merely money-making banks, but that
they are guardians o f the public welfare, primarily safeguarding the
member banks, protecting their reserves, safeguarding their credit,
protecting them from panic or financial stringency, and being always
prepared to furnish them with accommodation at a reasonable rate of
interest. But these Federal reserve banks will also be charged with
the duty o f protecting the national gold reserve, protecting the
national commerce, and in this way give stability to the manufactur
in g , industrial, commercial, and transportation enterprises o f the
United States. For this reason these banks ought to have no other
B A N K IN G AND C U R R E N C Y .
11
motive than the public welfare, and the moving policy of the banks
^ o u ld noTBe to earn as mucK~<lividends as the commerce of the coun
try could endure, but to protect our national commerce and our
national-banking system at a fair profit.
STATE B A N K S AXI> TR U ST C O M PA N IE S.
The bill (pp. 5 and 27) invites the State banks to become members
where the capital stock, sound condition, subscription, and com
pliance with the rules of the system justifies. The State banks and
trust companies, however, will be subjected to the same rules govern
ing the national banks in regard to the limitation o f liability which
may be incurred by any one person to such banks, the prohibition o f
maxing purchase o f or loans upon the stock of such banks, or with
drawal or impairment of capital, the payment o f unearned dividends,
the making o f reports to the comptroller, and the right o f examina
tion o f such banks, as if they were national banks, with the right,
however, to accept the State examinations in lieu o f the comptroller’s
examination where such examinations are satisfactorily made.
B A N K E X A M IN A T IO N S .
Under the proposed svstem the bank examinations are made much
more carefully, the bank examiners put on salaries (p. 60). Loans,
gratuities, or commissions are forbidden to either bank examiners
or to officers or directors of member banks.
B A N K RESERVES.
Very important changes are made in the matter of bank reserves
(p. 59) by requiring the withdrawal o f the legal reserves from other
national banks after a period of three years, making the change that
the country banks are required to keep 12 per cent o f their demand
liabilities and 5 per cent of their time deposits as reserves—twotwelfths in the Federal reserve bank for 14 months, and thereafter
five-twelfths— leaving seven-twelfths after three years to be optionally
kept either in the bank's own vaults or in the Federal reserve bank
(p. 62). The reserve city banks are required to keep 18 per cent of
their demand liabilities and 5 per cent o f time deposits: threeeighteenths o f such reserve for the first 14 months being kept in the
Federal reserve bank, and thereafter six-eighteenths of said reserve,
leaving twelve-eighteenths of such reserve to be kept after three
years either in the bank's own vaults or in the Federal reserve bank,
at its option (p. 63).
The central reserve city banks are required to maintain a reserve
equal to 18 per cent o f their demand liabilities and 5 per cent of their
time deposits; for 14 months three-eighteenths of such reserves and
thereafter six-eighteenths of such reserves with the Federal reserve
bank, leaving twelve-eighteenths optional to be kept in the bank’s
own vaults or with the Federal reserve bank.
The State banks are permitted to keep their surplus legal reserves
for three years with other State banks if the State law requires.
12
B A N K IN G AND C U R R E N C Y .
It is proposed that the reserves of the Federal reserve banks shall
be not less than 35 per cent o f gold or lawful money against their de
mand liabilities or Federal reserve notes in circulation (pp. 48 and
65.)
Some o f the banks have objected that they would lose 2 per cent
interest on so much of the deposits as they keep with the Federal re
serve bank, and they seem to think they would not be sufficiently com
pensated by the obvious benefits o f the Federal reserve banking
system.
The answer to such objections is that the compensations in a
financial
will far more than outweigh the loss o f the 2 per cent
interest, while the stability o f the business o f the bank, and tne peace
o f mind it will give to the bankers in having freedom from constant
anxiety, would more than compensate them, even if the financial ad
vantages did not do so. The financial advantages are obvious—
First. The capital stock put into the system will be merely a trans
fer o f funds obtained by taking a certain, portion o f the present de
posits (however invested) into the form of this capital stock, earning
G per cent net, free from tax, making the earning on such stock be
tween 7 and 8 per cent, which is a higher return than any bank can
possibly average upon its deposits.
Second. The reserves placed with the Federal reserve banks would
not bear interest under the present bill (although this may possibly
be found expedient at some future time when the system is estab
lished), but an average bank with a hundred thousand dollars
($100,000) capital and $550,000 average individual deposits, if it car
ried 5 per cent of its deposits as reserves with the Federal reserve
bank, would carry only $27,500 with the Federal reserve bank, which
it might use, if it saw fit, as a checking account for exchange purposes
if it kept the account up to the required standard.
The earning power on $27,500 at 2 per cent would only be $550,
and since the bank could borrow back an equal sum, at probably 4
per cent and lend it at G or 8 per cent, it could earn as much or more
out o f such rediscount as the interest at 2 per cent amounts to.
But it has a far larger earning power, because, under the old sys
tem, where every bank had to protect itself by keeping a high in
dividual reserve, the country banks have carried on an average o f
over 21 per cent, and under this system they would have available the
difference between 12 per cent legal reserves and 21 per cent actual re
serves, which, on the deposits of an average bank of $550,000, would
amount to $49,000, and which they could lend at G per cent instead of
2 per cent, as at present, giving such bank an additional earning
power of $1,980 above its present earning power, if it saw fit to use
these surplus reserves which they now carry, because of the fear o f
panic and financial stringency.
A very important consideration, however, would result from this
impro\ed system in giving an increased public confidence in the banks
and which would attract a considerable amount of money which is
not now deposited in banks at all and would thus enlarge the deposits
o f the bank and enlarge substantially their money-earning power.
Another important financial advantage to the bank would be that
the larger use o f their reserves would also result in an enlargement
o f deposits, entirely justified and on- a safe basis, which would give
them increased earning power. It is extremely short-sighted for a
13
BANKING AND CURRENCY.
bank to imagine that its financial earnings would be in any wise
harmed by the proposals o f this measure. A very great psycholog
ical advantage is in giving peace o f mind to the entire banking world,
so long as business is conducted upon an honest, sensible basis.
PROBABLE READJUSTMENT OF CASH UNDER REQUIREMENT OF THE FEDERAL
RESERVE ACT.
If all national banks enter the system and subscribe at the rate of
6 percent of their capital ($1,056,345,786) and surplus ($725,333,629),
or $106,900,764.90, paying one-sixth in cash, one-sixtK in three
months, and one-sixth in six months, the Federal reserve banks will
have in six months a paid-up capital of $53,450,382, to which should
be added about $150,000,000 of Government funds, which will be
deposited with the Federal reserve, banks, making a total of $203,450,382 cash, of which two-thirds could be used for discounting.
The relative proportion of subscription to the Federal reserve bank
is as follows: Country banks, 55 per cent; reserve city banks, 26
per cent; and central reserve cities, 19 per cent.
Assuming that the banks will immediately avail themselves of the
discounting privilege to the extent of one-third of this fund in the
Federal reserve banks, the country‘ banks will be entitled to 55 per
cent of (one-third of $203,450,382) $67,816,794 = $37,299,236; the
reserve city banks 26 per cent, or $17,632,366; and the central reserve
cities 19 per cent, or $12,SS5,190.
Should the banks avail themselves of this privilege to the extent
of one-half of this fund, the country banks will be entitled to 55 per
cent of (one-half of $203,450,382) $101,725,191 =$55,948,855; the
reserve city banks 26 per cent, or $26,448,549, and the central reserve
city banks 19 per cent, or $19,327,787.
In the event the banks should avail themselves of the discount
rivilege to the extent of two-thirds of the fund in the Federal reserve
anks, the country banks would be entitled.to 55 per cent of (twothirds of $203,450,382) $ 135,033,588 -$74,598,472; the reserve city
banks 26 per cent, or $35,264,732, and the central reseivc city banks
19 per cent, or $25,770,380.
rl he reserve requirement and the probable .readjustment of cash
in the several classes, respectively, under the Federal reserve act are
as follows:
K
7,120 banks not in a reserve or central reserve city.
UKSKKVKS.
12 per cent of demand liabilities (*3,1*6,329,730.27)................................................................. ^ZS'iSS’ SE’ K
5 per eent of time deposits ($459,377,757.19).............................................................................
22,968,887,80
Total.............................................
.........................................
Optional, in own
vault, in Federal
^
('ash in the Itanks’ Cash in the Federal
reserve bank.
own vault.
oank.
|
j ^
I
first 14 months__
Hetween 14 and
months...............
After 36 months__
4/12—$133,109,485
2/12- «66,554,742
4/12- 133,109,485
V12-» 106,3*0,855
5/12-166,386,<855
399,328,455.49
reserve
city bank.
6/12—1199,664,228
7/12—9232,941,597
3/12- 99,832,114
14
BANKING AND CUBRENCY.
PROBABLE R E A D JU S T M E N T OF C A S H . C O U N T R Y B A N K S .
(First 14 months.)
Cash oil hand (Aug. 9, 1913) specie and legal tender..............................................*250,702,980
Cash available by discount of commercial paper i one-third i*as.s»....................... 37,299,236
Cash required for stock subscription to Federal reserve banks............................................
C'ash reserve required in own vault ( four-t welft hs •...............................................................
Cash reserve required in Federal reserve banks itwo-twelfths)...........................................
Cash surplus..............................................................................................................................
$29,397,710
133,109,485
66,554,742
1 58,940,279
2**, 002,216
288,002,216
One-third bads.— Between 14 and 36 months, amount reserve re
quired in the Federal reserve banks is increased three-twelfths, or
$99,832,114, making a deficit of $40,891,835, and after 36 months,
three-twelfths additional, or $99,832,114. must be kept either in
Federal reserve banks or in banks* own vaults, making the total
deficit after 36 months $140,723,949.
One-half basis — Should the banks discount to the extent of onehalf of the available fund in the Federal reserve banks (i. e., capital
stock and United States funds) this deficit will be reduced by the
difference between $37,299,236 (one-third basis) and $55,948,855 (onehalf basis), or $18,649,619, leaving a deficit of $122,074,330.
Two-thirds basis.— If the banks discount to the extent of twothirds of the fund in the Federal reserve banks, the deficit will be
reduced by the difference between $37,299,236 (one-third basis) and
$74,598,472 (two-thirds basis) or $37,299,236, leaving a deficit of
$103,424,713.
315 reserve city banks.
RKSKRVKS.
18 per cent of demand liabilities ($1,821,413,780.14)...................................................................$327,854,480.43
5 per cant of tinto deposit s (WO,233,520.52).................................................................................
3,011,676.03
Total....................................................................................................................................
330,866,156.46
| Optional, in own
Cash in the banks' Cash in the Federal
own vaults.
reserve l*aiiK.
First 14 months............. 6/18-$110,288,719
Betw^n 14 and 30
months....................... 6/18- 110,288,719
After 36 months...............................................
DanK*
r 1 reserve bank, re! serve city bank, or
j in central reserve
I
city bank.
3/18-$55,144,359 ................................. | 9/18-$165,433,078
I
6/18-110,28*.71<» .................................! 6/18- 110,288,719
6/18-110,28K 719 12,18-$220,577,438 .................................
PKOHAIILK RKADJCSTMKNT OF CAS1I.
(First 14 momt,*.)
Cash on hand (Aug. 9,1913) specie and lecal tender..............................................$240,947,005
Cash available by discount of commercial paper (one-third basis)......................
17,632,366
( ‘ash required for -stock subscription to * ederal reserve banks............................................
< ash reserve required in own vault (six-eighteent hs •...........................................................
< ish reserve required in Federal reserve bajiks (three-eighteenths.*...................................
< ash surplus...............................................................................................................................
$13, 897,099
1 io, 288,719
55,144,359
79,249,194
258,579,371
258,579,371
One-third basis.— Between 14 and 36 months, amount of reserve
required in Federal reserve banks is increased three-eighteenths, or
$55,144,359, leaving still a surplus of $24,104,835, and after 36 months
» The above table does uot include cash from possible rediscounts of reserve put in Federal reserve banks.
BANKING AND CURRENCY.
15
an additional six-eighteenths, or $110,288,719, must be kept either
in banks’ own vaults or in Federal reserve banks, causing a deficit of
$86,183,884.
One-half basis.— Should the banks discount to the extent of onehalf of the available fund in the Federal reserve banks, this deficit
will be reduced by the difference between $17,632,366 (one-third
basis) and $26,448,549, or $8,816,183, leaving a deficit of $77,367,701.
Two-thirds basis.— If the banks discount to the extent of two-thirds
of the funds in the Federal reserve banks, the deficit will be reduced
by the difference between $17,632,366 (one-third basis) and $35,264,732, or $17,632,366, leaving a deficit of $59,735,355.
52 central reserve city banks.
RESERVES.
$289,004,394.65
687,765.53
18 per cent of demand liabilities ($1,605,579,970.29)
5 per cent of time deposits ($13,755,310.58)___
Total...............................................................
I
289,692,160.18
I
!
Optional, in own
. i
1Cash in the banks* ICash in the Federal
j
own vaults.
i reserve bank.
6/18-196,564,053
First 14 months............
Between 14 and 36
months....................... 6/18— 96,564,053
After 36 months............j................................. '
8= $48,282,027
h in t
DanK*
serve city bank, or
central reserve
city bank.
9/18= $144,846,080
o/i**=» w>,d04,ud3 ■
6/18= 96,564,053 112/18* 193,128,107
PROBABLE READJUSTMENT OF CASH.
(First 14 months.)
Cash on hand (Aug. 9, 1913) specie and legal tender.............................................
Cash available by discount of commercial paper (one-third basis)......................
Cash required for stock subscription in Federal reserve banks.....................
('ash reserve required in own vaults (six-e&hteenths)..................................
Cash reserve required in Federal reserve banks (three-eighteenths).............
Cash reserve required in own vault or Federal reserve banks (nine-eight
eenths).............................................................. ...............................................
Cash surplus.......................................................................................................
1407,519,3S9
12,885,190
110,155,572
90,54>4,053
-IS,282,026
144,840,080
120,556,848
420,404,579
420,404,579
Although the percent ages of cash reserve required in the banks’ own
vaults and in the Federal reserve banks change after 14 months and
after 36 months, inasmuch as at all times the full reserve requirement
must be either in tho banks’ own vaults or in the Federal reserve
banks, the surplus cash remains the same.
One-half basis.— Should the banks discount to the extent of one-half
of the available fund in the Federal reserve banks, this surplus would
be increased by the difference between $12,885,190. (one-tnird basis)
and $19,327,787 (one-half basis), or $6,442,597, making a surplus of
$126,999,445.
Two-thirds basis.— If the banks discount to the extent of twothirds of the funds in the Federal reseive banks, the surplus will be
increased by the difference between $12,885,190 (one-third basis)
and $25,770,380 (two-thirds basis), or $12,885,190, making a surplus
of $133,442,038.
16
BANKING AND CUBBENCY.
In addition to the paid-up capital of the Federal reserve banks
($53,450,382) and the deposit o f Government funds ($150,000,000)
the Federal reserve banks will have available for discount purposes
the funds held by them as reserves of the member banks to within
33J per cent, viz:
Reserves deposited—Available for loans to member banks.
FIRST 14 MONTHS.
Amount of reserve deposited with Federal reserve banks first 14 months:
Country banks (two-twelfths of reserve requirement).................................. ........................... 166,554,742
Reserve city banks (three-eighteenths of reserve requirement)................... ........................... 55,144,359
Central reserve city Danks (three-eighteenths of required reserve)......................................... 48,282,027
Total................................... .................................................................................................... 169,981,12g
If one-third of this fund is used for rediscounting purposes, the
additional cash would amount to $56,660,376; if one-nall is used,
$84,940,564; and if two-thirds, $113,320,752.
BETW EEN 14 AND 36 MONTHS.
Amount of reserves deposited with Federal reserve banks 14 to 36 months:
Country banks (five-twelfths of reserve requirement)............................................................ $166,386,855
Reserve city banks (six-eighteenths of reserve requirement)................................................ 110,288,719
'Central reserve city banks (six-eighteenths of reserve requirement).....................................
96, 564,053
Total.........................................................................................................................................
373,239,627
Additional available cash as follows: One-third basis, $124,413,209;
one-half basis, $186,619,814; and two-thirds basis, $248,826,418.
AFTE R 36 MONTHS.
Country banks (live-cwelfths of reserve requirement)................. ..................................................$166,386,855
Reserve city banks (six-eighteenths of reserve requirement)........................................................ 110,288,719
Central reserve city banks (six-eighteenths of reserve requirement)............................................
96,504,053
373,239,627
Additional available cash hs follows: One-third basis, $124,413,209;
one-half basis, $186,619,814; and two-thirds^basis, $248,826,418.
SUMMARY.
Condition of all national banks with respect'to cash after probable redistribution under
Federal reserve act.
FIRST 14 MONTHS.
jThls table does nbt include cash obtained from rediscounting reserve money in Federal reserve banks.]
National bank system.
When one-third of Fed
eral reserve bank funds
are discounted.
Surplus.
Deficit.
When one-half of Fed
eral reserve bank funds
are discounted.
Surplus.
Deficit,
When two-thirds of Fed
eral reserve bank funds
are discounted.
j Surplus.
Deficit.
country banc*................ $58,940,279
Reserve city banks.......... 79,249,194
Central reserve city banks 120,556,848
*77,589,898
88.065,377
126,999,445
S96.239.515
96,881,560 i
133.442,038
tturp a s................. 2$8,746,321
Additional cash available
if reserves (9160,081,128)
of member banks are
50,660,376
used for rediscount—
292,654,720
. 326,563,113 '
84.040.564
• 113,320,753 I
Total sui plus......... 316.406,697
j
377,595,284 ...................430.883,865 J.
!
i
BAJTXXNa AND OUBSBNOY.
17
Condition of all national banks with respect to cash qfter probable redistribution under
Federal reserse act—
Continued.
BETW EEN 14 AND 30 MONTHS.
National bank system.
When one-third of Fed
eral rejerre bank funds
are discounted.
Surplus.
When one-half of Fed
eral reserve bank funds
are discounted.
Deficit.
Country banks_________
Reserve city banks.......... $24,104,835
Central reserve city banks 120,556,848
Surplus, including all
banks .. ,. ..........
$40,891,885
144,661,683
144,661,883
Surplus.
Deficit.
137,678,247
159,920,463
$3,568,599
i n , 586,640
159,990,463
175,179,239
137,678,247
171,586,640
186,619,814
248,896,418
j 324,298,061
420,413,058
All banks: Additional
cash available if re
serves ($373,239,627) of
member banks are used
for rediscount................ 124,413,209 i
Deficit.
$41,737,901
133,442,088
103,770,048
228,183,257
Surplus.
$22,242,216
$32,921,018
126,999,445
103,770,048
Total surplus.........
When two-thirds of Fed
eral reserve bank hinds
are discounted.
175,179,939
= = = = =
A F TE R 36 MONTHS.
$103,424,711
Country banks.................
$122,074,330
$140,723,949
Reserve
banks______ i_______
86,183,884
77,367,701
59,735,345
Central reserve citv hanks 1120.
$133,442,038
$126,999,445
Deficit of all banks, to
29,718,018
72,442,586
balance..............
. . 106,350,985
226,107,833
Deficit, to balance, ex
cluding cash from re
serve discounts..............
Additional cash available i
If reserves ($373,239,627) i
of member banks are !
used for rediscount i 1124.413.000
Total surplus....................
124,413,209
Total deficit or surplus
for system where cash
is obtained from re
discounting r e s e r v e s
as well as capital and
United States deposits . *18,062,224
226,907,833
199,442,031
163,160,056
199,442,081
163,160,066
i
72,442,586
106,350,985
29,718,018
!
18,062,224
124,413,209
|186,619,814
j
; 186,619,814
114,177,228
186,619,814
248,896,418
|219,108,400
248,826,418 j 248,826,418
|
i
i
•114,177,228 .................... <219,108,400 j....................
i
1
1 The total reserve deposits are $373,239,627; one-third equals $124,413,209; one-half equals $186,619,814;
two-thirds equal $248,826,418.
* $18,062,224 surplus is on theory of discounting one-third of capital, United States funds, and reserv es.
• $114,177,228 surplus is on theory of discounting one-half of capital, United States funds, and reserves.
4 $219,108,400 surplus is on theory of discounting two-thirds of capital, United States funds, and reserves.
All the capital could be loaned out, but only two-thirds of United
States funds and of reserves.
These figures above relate only to the national banks. The State
banks and trust companies must be provided with reserve money in
sufficient quantity to enable them to enter the system without con
tracting loans.
18
BANKING AND CUBBBNOY.
Memorandum prepared by Robert L. Oven, thawing amount of reterve money available
by ttatment of Aug. 9 ,191S.
Demand liabili
ties.
Time deposits.
Cash on hand, j
7,488 $6,563,335,480.70
14,011 2,444,100,836.73
1,615 2,600,505,985.19
$533,364,588.29
*636,910,746.06
• 970,855,018.71
* $899,169,374.00
» 246,247,125.00
« 285,384,815.00
Number.
i
National banks.....................
Stats banks...........................
Trust oompanies..................
Aug. 9,1913
June 4,1913
Do.
* National banks have^also. not included in thesefigures, $42,637,771 national-bank notes and 93,650,042.38
minor ooins; total, 146,287,813.38. which can not be counted as reserves under present laws.
* Represent savings deposits, time deposits not given.
* Includes 835,521,522 national-bank notes arid minor ooins.
« Includes $26,732,028 national-bank notes and minor coins.
Total reserve money, 246+ 285- 5 3 1 -6 2 - 459 millions
i,Tn,atat12%-1292
8tate banks............. $2,444,
...............
636,
at 5 % -. 31
Total, $323
Trust companies... 2,600,at 1 8 % - 468
970, at 5 % - 48
------- Total, 516
Total requirements........................................... 839
Aotual reserve cash..................................................... 459
Own vaults..................................................... $216
In Federal reserve banks.............................. 107
Own vaults..................... ...............................
In Federal reserve banks..............................
344
172
r»l6
Gross deficit....................................................... 378
Credit oash from rediscounts one-half $279, on de
posit Federal reserve banks ($172+107)............. 139
Total net deficit................................................ 239
The capital stock of State banks and trust companies excluding
savings banks equals $459,000,000 with a surplus fund of $271,000,000,
making a total of $730,000,000, which upon a 6 per cent basis would
’ve an addition to the capital stock of the Federal reserve banks, if
e State banks and trust companies entered it, of $43,000,000, which,
if one-half were paid in cash, would add to the initial capital stock
in cash $21,000,000 above the capital stock heretofore considered, and
would therefore add a further deficit of $21,000,000 to the total net
deficit of $239,000,000, making a total deficit of $260,000,000, as far
as the State banks and trust companies are concerned.
It is insisted, however, that this contingency is not likely to arise,
as many of the small State banks will not enter the system, and if
it did arise, it could be taken care of—
First, by discounting of the funds of the Federal reserve banks.
Second, by an additional deposit of United jBtates funds above the
$150,000,000 heretofore estimated.
Third, or finally, by the issuance of Federal reserve notes, which
should be counted as reserves for member banks if the Federal re
serve board find it necessary.
Moreover, it might further be provided for by making the nationalbank notes available for reserve money, since they are based on Gov
ernment bonds and are already used by State banks under the present
State laws as reserves. This contingency has been provided for by a
proposed amendment giving the Federal reserve board (p. 38, line
15) the right to authorize the use as reserves of member banks Fed
eral reserve notes or bank notes based on United States bonds.
S
BANKING AND CTJBBHNOY.
19
FEDERAL RESERVE BOARD— ITS POWEH8.
The Federal reserve board, consisting of the Secretary of the
Treasury and six members appointed by the President of the United
States and confirmed by the Senate for terms of six years (p. 31),
are given the following powers:
POWERS OF THE FEDERAL RESERVE BOARD.
To readjust districts created by the organization committee and create new
ones.
To regulate the establishment of branches o f Federal reserve banks within
Federal reserve district in which bank is located.
To designate three (class C) o f the nine members of the board of directors o f
each Federal reserve bank, one of these to be chairman o f the board with the
title o f “ Federal reserve agent,” and one “ deputy Federal reserve agent.**
The Federal reserve agent to maintain a local office of the Federal reserve
board on the premises of the Federal reserve bank. He shall make regular
reports to Federal reserve board and be its official representative.
To remove any director or officer o f a Federal reserve bank for cause stated.
To remove chairman o f Federal reserve bank without notice.
To establish by-laws governing applications from State banks and trust
companies.
“ Of the six persons * * * appointed (by the President), one shall be
designated governor and one vice governor o f the Federal reserve board.**
The governor, subject to supervision of the Secretary of the Treasury and
board, shall be the acting managing officer o f the Federal reserve board.
To levy a semiannual assessment upon the Federal reserve banks for esti
mated expenses for succeeding six months, together with deficit carried forward.
To examine at its discretion the accounts, books, and affairs of each Federal
reserve bank or member bank and to require such statements and reports as
it may deem necessary.
To require, or on application to permit, a Federal reserve bank to rediscount
the paper pf any other Federal reserve bank.
To suspend for a period not exceeding 30 days (and to renew such suspen
sion for j>eriods not to exceed 15 days), any and every reserve requirement
specified in this act.
To supervise and regulate the issue and retirement of Treasury notes to
Federal reserve banks.
To add to the number of cities classified as reserve and central reserve cities
under existing law in which national banking associations are subject to the
reserve requirements set forth in section 21 of this act, or to reclassify existing
reserve or central reserve cities and to designate the banks therein situated as
country banks, at its discretion.
To require the removal o f officials of Federal reserve banks.
To require the writing off o f doubtful or worthless assets upon the books
and balance sheets o f Federal reserve banks.
To susi>end the further operations of any Federal reserve bank and appoint a
receiver therefor.
To perform the duties, functions, or services specified or implied in this act.
To determine or define (subject to stipulations) the character of paper eligible
for discount for member banks.
To prescribe regulations for purchase and sale by Federal reserve banks o f
bankers' bills, etci
To review and determine the minimum rate o f discount for member banka
established by Federal reserve banks and fix weekly the discount rate reserve
banks may discount for each other.
To authorize establishment o f correspondents and agencies of Federal re
serve banks in foreign countries.
To authorize the issue o f Federal reserve Treasury notes.
BANKING AND CUBXM G Y.
(2 0
To receive, through the local Federal reserve agent, applications from Federal
reserve banks for notes, such applications to be accompanied by rediscounted
notes for deposit as collateral security.
To require Federal reserve banks to maintain deposits in Treasury o f United
States in gold o f 5 per cent o f notes issued.
To grant in whole or in part or to reject entirely the application from Federal
reserve banks for notes.
To establish rate o f interest on notes issued.
To prescribe regulations for substitution o f collateral.
To make and promulgate regulations governing the transfer o f funds among
Federal reserve banks.
To act, if desired, ns clearing house for Federal reserve banks.
To require, in its discretion, Federal reserve banks to act as clearing houses
for shareholding banks.
To require extra examinations o f national banks when deemed necessary.
To determine and report annually to Congress fixed salaries o f all bank ex
aminers.
To assess upon banks in proportion to assets or resources the expenses of ex
aminations.
To fix
date for such assessment.
To arrauge for special or periodical examinations of member banks for ac
count o f Federal reserve banks.
To receive from Federal reserve banks information concerning the condition
e f any national bank in its district.
To order examinations o f national banks in reserve cities as often as neces
sary.
To add to the list o f cities in which national banks shall not be i>ermitted to
loan on real estate as described.
To receive applications from national banks haviug $1,000,000 or more capital
for the establishment o f branches in foreign countries, to reject or accept «ucli
applications, and to prescribe conditions under which such branches may be
opened.
To require examinations o f foreign branches as it may deem best.
(Pp. 31-38, 40, 45.)
a
FEDERAL ADVISORY COUNCIL.
In ord er to keep the Federal reserve board in intim ate touch with
the ban k in g business o f the cou n try, the Federal a dvisory council Is
established, con sistin g o f one representative fro m each Federal re
serve bank w ith p ow er to con fer d irectly w ith the Federal reserve
'board, make p rop er representations and recom m endations, call fo r
in form ation , etc. (p . 39). M any o f the b ig banks quite u rgently in
sisted that the bankers should have representation upon the Federal
reserve board. T h is was denied fo r the obvious reason that the fu n c
tion o f the Federal reserve board in supervising the b an k in g system
is a governm ental fun ction in w hich private persons o r p rivate in
terests have no right to representation except th rou gh the G ov ern
m ent itself. T h e precedents o f all civilized governm ents is against
.such a contention. It was believed that the F ederal reserve board
itself, consistin g entirely o f officers o f the G overnm ent, m igh t be
m ade m ere efficient i f it had the advice freely available o f the F e d
eral advisory council. M oreover, the operations o f the Federal re
serve b oard w ould in this way be subject to greater p u b licity and
enable the banks o f the country to have a greater measure o f "confi
dence in all o f the operations of the Federal' reserve board.
It was furth er believed that the banks o f the country, w hich are in
vited o r required to contribute a very large sum to the Federal reserve
banks, w ou ld be m ore content by h av in g an easy and convenient
means p rovid ed by law o f frequent conferences w ith the F ederal
BANKING AND CUBBENCY.
21
reserve board and the opportunity to advise the board with regard
to the financial, commercial, and industrial needs of the country.
CONCENTRATION OF RESERVES.
The reserves o f the banks of the United States are now scattered
without any system among over 25,000 individual banks. The
present law permits the national banks in the country to keep ninefifteenths o f their reserves in the banks of reserve cities and permits
banks o f the reserve cities to keep one-half of their reserves in the
central reserve cities, and permits the banks in the central reserve
cities to keep only one-fourth of these reserves of the reserves of the
reserves in cash. The effect o f this system—the necessary effect o f this
system— is to concentrate in the hands of a few banks in the central
reserve cities (who have diligently sought the reserves of other banks)
to such an extent that the Nation's bank reserves are pyramided in a
dangerous fashion in the hands of a few banks in the three central re
serve cities and chiefly in certain banks in New York City. These
central reserve city banks have been accustomed to pay 2 per cent on
the deposit o f these bank reserves placed with them, and having no
place to which they themselves might go for rediscount they have
fallen into the habit o f placing very large sums out o f these reserves,
amounting to hundreds of millions, upon call on the New York Stock
Exchange, for the simple reason that under the law of the stock ex
change they can sell the stock collateral immediately on any day when
money is actually needed. It may be ruinous to the borrower—it
may wipe-out his margin— it may cause him a disastrous loss; it may
upset the interest rates o f the country, excite alarm, and result in
finaj. panic; but it does furnish the money when needed.
We are advised bv representative bankers in New York that the
great banks there would be glad to improve the system by the estab
lishment o f Federal reserve banks strong enough to furnish money
quickly on demand against good commercial bills, and thus enable
the New York banks to withdraw their funds from the stock ex
change (which has become the most gigantic gambling establishment
in the world) and place such funds in the service o f legitimate
industry and commerce. This will be one o f the great benefits o f the
pending measure—that is, that it will withdraw from gambling
enterprises on the stock exchange the bank reserves of the country
and enable such reserves to be used for the commerce of the Nation.
Attention is respectfully called to the fact that while in 1890 the
shares sold on the New York Stock Exchange amounted to only a
little over $3,000,000,000, in 1905 it was $21,000,000,000, in 1906 it
was $23,000,000,000, in 1907—the year o f the panic—the amount fell
to $14,000,000,000, increasing in 1908 to $15,000,000,000, and in 1909
to $19,000,000,000. (National Monetary Commission Reports, vol.
21, p. 9.)
MAKING 8TABLE THE INTEREST RATES.
The extremely injurious character o f this gambling on the stock
market with the reserves o f the country is shown by Table 29, Na
tional Monetary Commission Reports (vol. 21, p. 136),'where during
20366 0 — 58-------l'A
22
BANKING AND CURRENCY.
the year 1907 the range o f interest for money was from 2 to 45 per
cent in January, from 3 to 25 per cent for March, from 5 to 125 per
cent in October, from 3 to 75 per cent in November, and from 2 to 25
per cent in December, with currency bringing a premium from 1 to
4 per cent during November and December. The blighting effect of
these violent fluctuations o f the interest rates is demonstrated by
the rate charged for 90-day time loans, which during November and
December, 1907, were running as high as 12 to 16 per cent, with no
business done in time loans of a longer period during the entire
month o f November and no business being done at times on prime
commercial bills during the same months, (Ibid.)
These violent fluctuations are the more astounding when compared
with the extremely stable rates of interest which have long prevailed
in Europe, as shown by the rates of discount for 50 years in England,
France, Germany, Holland, and Belgium, where the rate has been
steadily around 3 to 4 per cent. (See Senate hearings before Banking
and Currency Committee, pp. 538-542, an abstract o f which is sub
mitted.)
Moreover, in Europe manufacturers, merchants, and business men
could a l w a y s get money, while in the United States they have been
absolutely ruined bv thousands because o f the denial" o f merited
credit. This act will put an end to this deadly peril to American
business.
T a b le
III. — Rat* ~nf discount, 1844-1909— The number of days at each rate arranged
from the lowest rate to the highest.
Bank 0
England.!
Bank o'
Franco.*
Imperial Bank
01 Germany.
Bank of the
Netherlands.4
1
•lato.
Num
ber of
days.
2 per cent..................
24 per cent.............. ..
2$ per cent................
3 percent..................
3£ per ccnt................
4 per cent..................
44 percent................ 1
6 per ccnt..................1l
6| percent................
6 per cent..................
64 per cent.......... •
7 per r§ it ..................
74 per 0 *nt
8 per cent
•
9 per cent
J1
10 per cent
•
Total...............
Num
ber of
day*
percent
ol total
(total 1,000).
3,409
28
3,590
5,859
1,921
3,772
608
2,195
263
975
91
<>33
143
1
151
246
8(1
15*
26
92
11
41
2ftH
95
141
11
4
(i
23,857
4
26
1,000
National Bank
of Belgium.*
!
j
Num
Num- l
Num
Num
ber of
ber of
ber of
ber of
Num
day; i Num
Num- 1 days
Num
days
days
ber of iper cent ber 0; per cent ber 01 per cent ber of percent
days. 10 tota ! day;. ot total day3. of total days. of total
1Itotal—
(total—,
(total—
(total1,000). :
1,000).
1,000).
1,000).
j
2,735
2,579
7,828
2,060
4,579
353
2,061
120
1.170
8
286
21
41
16
23,857
1,328 1
56
5,058 !
i29 i 8,013 ;
27
3,737 |
2,167
511
68
811
172
1,823
30
375
260
41
150
3
11
135
5
1
212
336
157
91
34
76
16
U
6
5
115
....... 1
108 '
329 ; 3,073
86
644
192 12,192
1,626
15
|
4,094
;
86
!
707
5
49
970
:
_______
72
269
12
1
110
2
37
63
j
1
:
1,000
23,857
1,000
23,857
3,169
9,412
2,965
3,416
698
944
378
540
27
1,000
21,549
1
* I*owest
» Lowest
* Lowest
*Lowest
* Lowest
rate 2 per cent; nighest rate 10 per cent.
rate 2 per cent; highest rate 9 per cent.
rate 3 per cent; highest rate 9 per cent.
rate 2 per cent; highest rate 7 per cent.
rate 2) per cent; highest rate 6 per cent.
147
437
138
159
32
44
18
25
1,000
23
BANKING AND CURRENCY.
T a b le
I V .— Rate o f discount, 1844-1909— The number o f days at each rate, arranged from
the highest number o f days to the lowest.
Bank of England.
1 Bank of France.
Imperial Hank of
Germany.
Bank of the Neth
erlands.
Bank of Belgium.
|
£3
o il
£
63
a
5,859
3,772
3,559
3,409
2,195
1,921
975
633
608
268
263
141
95
91
28
a
G
3
4
2*
2
5
3)
6
7
4i
8
54
10
9
61
A
23,857 i........
I
r
Si
a
{£
<
246
158
151
143
92
80
41
26
26
11
11
t>
4
4
1
c
g
c
7,828
4,579
2,735
12,579
2,061
2,060
1,170
1 353
286
120
41
21
16
8
1,000 23,857
S.
* 8^1«J
X
2
ea
3
4
2
2*
5
3}
6
4*
7
5*
s
"4
9
64
2
or
>.
a
c.
329 12,192
192 4,091
115 3,073
108 1,626
86
970
86
707
49
644
15
269
12
110
5
72
2
63
1
37
2a
4
5
3
6
H
3*
7
6}
9
8
1
m
m
/
rr.
>.
C3
o
511 8,013
172 5,058
129 3,737
68 2,167
41 1,823
30 1,328
27
811
11
375
5 1 260
3 '
150
2
135
1
.
■o S S
of da
t of toi
1,000).
c
o>
■S Sg
S 3 -S
1
ug |
4> '
e3
C£ : A
3
3
1
4
5 ;
2
r
6
6J
* !§
I
I
1
336 9,412
3
212 3,416
4
157 3,169
91 2,965
3
944 I 5
76
698 !1 H
56
34
540
6
16 I 378 1 54
27
7
11
6
5
1
!& !
£
437
150
147
138
44
32
25
18
1............
1,000 23,857
1.000 23,857
1,000 21,549
1,000
It w ill thus be seen that these great banks holding tho national reserves have been
able to furnish com m erce w ith a very low rate of discount tor nearly all the tim e and
on ly occasionally have been com pelfed to raise the rate to a high point.
These low rates illustrate the enormous value of these great banks to European com
m erce and the urgent necessity for action by the United States along similar lines.
The stabilizing o f the rate of interest in the United States will be
one o f the very important functions of the proposed Federal reserve
system. The right o f the Federal reserve board to fix the rate o f
interest which may be charged member banks by the Federal reserve
banks and which the Federal reserve banks may charge each other
would have a steadying effect upon the interest rate throughout the
United States, and will enable the banks of the country to extend
accommodation at a comparatively stable rate of interest upon a
lower basis than heretofore, because the element o f hazard o f panic
and o f financial stringency will be removed by the proposed system.
MOBILIZATION OF RESERVE8.
In addition to concentrating in the Federal reserve banks a sub
stantial part o f the reserves o f the National and State banks and
trust companies o f the country and placing in such banks a re
spectable capital by stock subscriptions and a considerable volume
o f Government funds— approximately a total o f about $700,000,000—
it is proposed to make them perfectly mobile. In order to have
these funds meet the purpose for which they were intended they
must be kept in a liquid condition and made instantly mobile by
keeping the investments o f such banks either in actual gold and law
ful money or in short-time commercial bills drawn against actual
commercial transactions which are readily converted into money on
short notice. (Sec. 14, p. 40, and sec. 15, p. 44.)
24
BANKING AND CURRENCY,
ollowed the experience o f the
The European systems con0
0___ .he public utility banks to cash
and liquid bills o f very short maturities, the average length o f time
o f the bills o f the Bank o f France not exceeding 28 days and the
Reichsbank o f Germany having no paper of longer maturity than
90 days, and a large part o f its paper very short time paper. The
Bank o f England handles quite a large volume of paper, running
7 to 14 days. These public utility banks carefully avoid putting the
funds in their custody in the form of investments which are not
instantly convertible into money. This consideration is o f the high
est importance, because the Federal reserve banks holding the re
serves o f the reserves must be in a position to extend instant accom
modation to any member bank requiring cash.
With a view to enlarging the volume of liquid paper based on
actual shipments o f goods, the reserve bank is authorized to discount
acceptances and the member banks are authorized to accept bills o f
exchange against actual shipments o f goods.
ELASTIC CURRENCY--- FEDERAL RESERVE NOTES.
In order to render still more mobile and liquid the reserves held by
the Federal reserve banks, elastic currency has been provided (sec. 17,
p. 47) in the form of Federal reserve notes issued as obligations o f
the United States, redeemable in gold at the Treasury, or in gold or
lawful money at the reserve banks, and receivable for all taxes and
public dues, except customs. The exception of customs was intended
to enable the Federal Government to command a supply o f gold
through the customhouses, if it should prove to be necessary, by com
pelling the customs to be paid in gold by foreign shippers.
These Federal reserve notes, while tne obligations of the United
States, and made redeemable in gold or lawful money at the Federal
reserve banks and in gold only at the Treasury o f the United States,
are carefully surrounded by very numerous safeguards to make
assurance doubly sure that they shall not at any time in reality tax
the credit o f the United States itself. The securities behind these
notes are:
First. Commercial bills drawn against actual commercial trans
actions which have goods and merchandise behind the notes.
Second. Such notes have the credit o f the maker o f the commercial
bill deemed good by the member banks.
Third. The indorsement by the member bank o f such commercial
bills.
Fourth. The double liability o f the stockholders o f the member
bank so indorsing.
Fifth. Thirty-three and a third per cent o f gold reserve in the Fed
eral reserve bank.
Sixth. A first lien on all the assets o f the Federal reserve bank.
Seventh. The stock o f the indorsing member bank in the Federal
reserve bank.
Eighth. The reserve balance o f the indorsing member bank in the
Federal reserve bank.
Ninth. A double liability o f the member banks o f the Federal
reserve bank.
BANKING AND CURRENCY.
25
Tenth. The double liability of the stockholders of the member
banks of the Federal reserve bank.
Eleventh. The surplus of the Federal reserve bank.
Twelfth. The earning power of such reserve bank, and finally
the United States. There has never been issued a note with such
safepards surrounding it by any banking system of the world.
The commercial bills alone would never fail, because of their
liquid character and short maturity. No apprehension whatever need
be felt with regard to these notes ever taxing the Federal Treasury.
Since each bank is required to keep a gold reserve with the Treas
ury of the United States against such note issues, it is necessary to
keep a record o f the outstanding circulation emitted through each
Federal reserve bank, and for tnis reason a descriptive number is
placed upon the notes emitted through any Federal reserve bank
so as to keep the record o f notes outstanding issued through such
banks. The effect o f issuing Federal reserve notes against com
mercial bills is to make intensely mobile the assets o f the Federal
reserve bank and enable such bank at all times to respond instantly
to the needs o f national commerce. The emission o f these notes iV
controlled by the Federal reserve board, which is authorized to
control the volume o f these notes and the terms upon which they
shall be advanced to the Federal reserve bank and the conditions of
retirement.
The Federal reserve board is authorized to tax the issue o f the
notes and also to fix the rate o f interest on the discounts of the
Federal reserve banks, and in this way keep a double check on the
issuance of the Federal reserve notes.
While the Federal reserve notes are extremely well secured, it is
made easy for member banks needing currency for seasonal demands
or for any extraordinary emergency to obtain Federal reserve notes
from the Federal reserve banks. Tne Federal reserve bank has only
to deposit liquid commercial bills o f a qualified class with the Federal
reserve agent and obtain from him such Federal reserve notes, keep
ing. however, a minimum deposit of 33 per cent of gold against such
Federal reserve notes as may be put in actual circulation. It is be
lieved that in actual practice the gold reserves against such notes in
circulation will be very large, much larger than the minimum re
quirement, especially if our proposed amendment is placed in the
House bill, permitting the reserves against deposits .and against the
notes to be kept as a common fund. It is obvious that if a minimum
requirement o f 33 per cent against deposits and 33 per cent against
notes in circulation is held as a common fund, anyone observing the
statement merely from the standpoint of a depositor, if the deposits
and the notes in circulation happened to be equal, would perceive
that the reserves against deposits would appear as 66 per cent, and
anyone looking at the reserves against the notes from that point of
view would observe a reserve equal to 66 per cent of the notes in
circulation.
It also is obvious that when there is a surplus reserve against the
deposits far above 33 per cent there is no reason why the bank should
not have the credit o f this surplus appearing also in its favor as a
reserve against notes in circulation, and it was upon the best advice
obtainable that an amendment was proposed to section 17 permitting
26
BAXKIHG AND CUBBBNOY.
these reserves to be carried as a common fund, but in no contingency
less than a 33 per cent gold reserve against the notes, as required
in the House bill.
The retirement of these Federal reserve notes would, of course,
be accomplished whenever the commercial bills were withdrawn by
the member bank or by the Federal reserve bank from the hands of
the Federal reserve a^ent, the Federal reserve agent in such con
tingency either receiving the notes back or a like volume of lawful
money.
OFEN-MARKET OPERATIONS.
One of the most important features of this bill is the establishment
of what is called an open market for bills of exchange and bankers’
acceptances such as has long prevailed in Europe, but which has not
existed to any great extent in the United States. In Europe the
various banks and private bankers carry on a very large scale com
mercial bills of exchange and acceptances based on actual commer
cial ^transactions of short maturities and which are regarded as selfliquidating. Such bills have behind thepi actual merchandise for
which a purchaser has been found, and these bills are held in their
portfolios as almost the exact equivalent of cash, for the reason that
the security of such bills is regarded as substantially perfect, their
uniform and certain payment constant, and therefore there is an
u open market ” for such bills maintained by the great public banks,
sucn as the Bank of France, the Reichsbank, the Bank of Belgium,
the Bank of Netherlands, the Bank of England, etc., at a very low
rate of interest.
It is now proposed that a constant market at a fairly uniform rate
o f interest be established in this country by establishing the Federal
reserve bank with a large capital and large reserves and with the
«xpress power to discount for member banks commercial bills and
acceptances of the qualified liquid class, and also to buy and sell in
the open market such bills and bankers’ acceptances as have been
found merchantable and liquid by the experience of European bank
ing systems. It is anticipated that the effect of this method will
be to encourage banking houses to buy commercial bills of the quali
fied class, ana in this way that we may greatly enlarge the market
for the bills of manufacturers, merchants, and business men who
are handling the actual commerce of the country. (Secs. 14 and 15,
j>p. 40-44.)
GOVERNM ENT DEPOSITS W ITH FEDERAL RESERVE BA N K S.
It has been deemed of the highest importance to maintain the in
dependent Treasury of the United States and not compel the Secre
tary of the Treasury to deposit every dollar of the public funds in
the Federal reserve banks, Dut to provide that he may do so. The
argument in favor of maintaining the independence of the Federal
Treasury is overwhelmingly in favor of an independent Treasury
and need not be recounted here.
The Government of the United States can advantageously to the
banks and to itself place with the Federal reserve banks $150,000,000,
BANKING AND CURRENCY.
27
or even a larger sum, but the process of collecting the revenue through
revenue collectors scattered throughout the Nation, making local
deposits, and the right of the Treasury Department to make dis
bursements in every part of the country through its numerous dis
bursing officers, makes it highly necessary to maintain the independ
ence o f the Treasury. We have, therefore, thought it proper to change
the provision of section 16 in such a way as to accomplish this
object (p. 46).
REFUNDING BOND8.
The House measure (sec. 19, p. 56) provided for retiring 5 per
cent o f the outstanding 2 per cent bonds held for national-bank
circulation by the exchange o f 3 per cent bonds without circulation
privilege for such 2 per cent bonds, justly assumes that the Govern
ment will be compensated by the interest earned upon a like amount
o f Federal reserve notes.
We have preferred to absorb such of these bonds as would be
offered on the market by permitting the Federal reserve banks to
buy such 2 per cent bonds and issue Federal reserve bank notes
against them just as the national banks do (p. 14), and have further
permitted such Federal reserve banks, in section 19, to assume the
redemption of not exceeding $36,000,000 of national-bank notes issued
against such bonds and to take over such bonds and issue Federal
reserve notes against such bonds, leaving the bonds with the Treas
urer of the United States in trust in the form of 3 per cent bonds or
3 per cent annual notes, in this way assuring to the Government the
earning power upon the circulation taking the place of the retired
national.-Dank circulation (p. 58).
CLEARING CHECKS AND DRAFTS.
The House bill proposed to clear checks and drafts at par, but we
propose an amendment providing that checks and drafts sent to the
Federal reserve banks by member banks may be cleared, allowing the
Federal reserve board to fix the charge which may be imposed for the
service o f clearing or collection rendered either by the Federal re
serve bank or by the member banks, and with a provision that the act
should not be construed to prohibit member banks from making
reasonable charges for checks and drafts debited to their account,
or for collecting and remitting drafts, or for exchange sold to its
patrons. In this way the reserve banks are not put in competition
with the country banks, but can serve them and their customers at a
fair price. This amendment should remove the very serious objection
o f many o f the country banks to the House provision, which they
thought would interfere with their right to charge for exchange in
making remittances (p. 55).
SAVINGS-BANK SECTION.
Your committee has struck out entirely the savings-bank section
No. 27, for the reason that the national banks now, through the system
o f time deposits, carry on a savings-bank business very economically
28
BANKING AND CUBBENCY.
and at the same time use the funds in promoting the local enterprises.
It was the practical judgment of all the small banks of the country
that this section should not remain in the bill.
CHANGES IN THE NATIONAL-BANK ACT.
Several changes of importance in the national-bank act have been
made, to which attention should be called:
First. Section 21 (p. 65) provides that the 5 per cent fund placed
with the Secretary of the Treasury for the redemption o f nationalbank notes shall no longer be construed to be a part o f the bank’s
reserves. This is justified because the reserves of the national banks
have been made decidedly lower than they have been in the past.
Second. The law requiring bonds o f national banks to be deposited
before any national bank association shall be authorized to commence
the banking business, as provided in section 5150 o f the Revised Stat
utes, etc., is repealed by section 18 (p. 56). The obvious purpose o f
♦his section is to ultimately do away with the bond-secured circula
tion, which is inelastic and unscientific. The way to establish an im
proved system is thus made open.
Third. The bank examinations are more thoroughly provided for in
section 23 (p. 66).
Fourth. The loans, gratuities, and commissions to bank officers or
bank examiners are penalized by section 24 (p. 69).
Fifth. The stockholders’ liabilities of national banks and o f mem
ber banks is modified to establish the double liability and to prevent
its evasion. (Sec. 25, p. 71.)
Sixth. Loans on farm lands are permitted to the extent of 25 per
cent o f the capital and surplus of a national bank and for a period of
five years. This would make available possibly $400,000,000, but in
actual practice it would not be likely to exceed a hundred million dol
lars under the terms of the bill, for the reason that the city banks do
not make such loans, and where the banks have the authority they will
probably not exercise it with any uniformity.
f >i I
Seventh. The change of the reserves in the rtfifional banking law
is a very important change, heretofore described, and which will be
found set forth in section 20 (p. 59).
The House provision was changed so as to make the language more
compact and to simplify it.
Eighth. Foreign branches were also provided for national banks
having a capital and surplus of a million dollars or more, with the
approval o f the Federal reserve board. (Sec. 28, p. 77.)
This is a very important amendment and one of far-reaching im
portance to the foreign commerce of the United States, the purpose
of which is so obvious as to need no explanation.
Many other amendments are needed in the national-bank act which
this bill does not undertake to deal with, for the reason that it was
of great importance that this bill should not be embarrassed by the
consideration of questions which were not necessarily germane to
the bill itself in establishing the Federal reserve system.
The National Monetary Commission did a very large amount of
work looking toward the codification of the national-bank act, and
BANKING AND CURRENCY.
29
this work has so far progressed that it may be easily submitted to the
Senate during the next regular session, in such a form as to enable
the matter to be disposed of and to make any other amendments
which are necessary to the national-bank act, without embarrassing
the present measure by considerations which are not necessarily a
part o f the Federal reserve system.
The proposed changes recommended by the undersigned are best
set forth by submitting a print of the House bill with the parts struck
out being placed in brackets and the amendments proposed being in
serted in italics. (See Exhibit .A.) The other exhibits are necessary
to justify the amendments recommended.
Very respectfully submitted.
R o b e r t L. O w e n , Chairman.
J a m e s A. O ’G o r m a n .
J a m e s A. R e e d .
A tlee P o m e r e n e .
J o h n F. S h a f r o t i i .
H e n r y F. H o i /l i s .
APPENDIX (WITH EXHIBITS).
EXH IBIT A.
31
H . B . 7887.
IOmit (lie part inclosed in brackets and insert the part printed in italic.]
AN ACT To provide for the establishment of Federal reserve bunks, to furuisli
an elastic currency, to afford means o f rediscounting commercial paper, to
establish a more effective supervision o f banking in the United States, and
for other purposes.
Be it enacted by the Senate ami House of Representatives of the
United States of America in Congress assembled, That the short
title o f this act shall be the “ Federal reserve act.”
Wherever the word “ bank” is used in this act, the word shall
be held to include State bank, banking association, and trust com
pany, except where national banks or Federal reserve banks are
specifically referred to.
FEDERAL RESERVE DISTR ICTS.
S ec . 2. [T hat within ninety days after the passage o f this act, or
as] As soon [thereafter] as practicable, the Secretary o f the Treas
ury, [the Secretary o f Agriculture, and the Comptroller o f the Cur
rency,] and not less than two members of the Federal reserve board,
acting as “ The reserve bank organization committee,'’ shall desig
nate [from among the reserve and central reserve cities now author
ized by law a number o f such] eight cities to be known as Federal
reserve cities, and shall divide the continental United States, inclvding Alaska^ into districts, each district to contain one, and only one,
o f such Federal reserve cities. The determination of said organiza
tion committee shall not be subject to review except by the Federal
reserve board when organized: Provided, That the districts shall
be apportioned with due regard to the convenience and customary
course of business Eof the community] and shall not necessarily
[coincide with the area o f such] be coterminous with any State or
States [as may be wholly or in part included in any given district].
The districts thus created may be readjusted and new districts may
from time to time be created by the Federal reserve board [here
inafter established, acting upon a joint application made by not less
than ten member banks desiring to be organized into a new district].
The districts thus constituted shall be known as Federal reserve dis
tricts and [sh a ll] may l>e designated by number [according to the
pleasure o f the organization committee, and no Federal reserve dis
trict shall be abolished, nor the location of a Federal re**erve bank
changed, except upon the application of three-fourths of the mem
ber banks o f such district]. A majority of the organization <om-
m.it tee shall constitute a tfuorum -with authority to art.
[T h e organization committee shall, in accordance with regula
tions to be established by itself, proceed to organize in each o f the
reserve cities designated as hereinl>efore specified a Federal reserve
83
34
BANKING AND CURRENCY.
bank. Each such Federal reserve bank shall include in its title the
name o f the city in which it is situated, as 44 Federal Reserve Bank
o f Chicago,” and so forth. The total number o f reserve cities desig
nated by the organization committee shall be not less than twelve,
and the organization committee shall be authorized to employ coun
sel and expert aid, to take testimony, to send for persons and papers,
to administer oaths, and to make such investigations as may be
deemed necessary by the said committee for the purpose o f determin
ing the reserve cities to be designated and organizing the reserve
districts hereinbefore provided.
Every national bank located within a given district shall be
required to subscribe to the capital stock o f tne Federal reserve bank
o f that district a sum equal to twenty per centum o f the capital stock
o f such national bank fully paid in and unimpaired, one-fourth o f
such subscription to be paid in cash and one-fourth within sixty days
after said subscription is made. The remainder o f the subscription
or any part thereof shall become a liability o f the member bank,
subject to call and payment thereof whenever necessary to meet the
obligations o f the Federal reserve bank under such terms and in
accordance with such regulations as the board o f directors o f said
Federal reserve bank may prescribe: Provided , That n o j
Said organization committee shall be authorized to employ counsel
and expert aid\ to take testimony, to send for persons and papers, to
administer oaths, and to make such investigation as may be deemed
necessary by the said committee in determining the reserve districts
and in determining the cities within such districts where such Federal
reserve banks shall be severally located. The said committee shall
supervise the organization, in each of the cities designated, of a Fed
eral reserve bank, which shall include in its title the name of the city
in which it is situated, as “ Federal Iieseme Bank of Chicago,” and
so forth .
Under regulations to be prescribed by the organization committee,
every national banking association is hereby required and every
eligible bank is hereby authorized to signify in writing, within sixty
days after /the passage of this act, its acceptance of the terms and
provisions hereof. When such Federal reserve bank shall have been
organized^ every national banking association within that district
shall be required and every eligible bank may be permitted to sub
scribe to the capital stock thereof in a sum equal to six per centum of
the paid-up capital stock and surplus of such bank, one-sixth of such
subscription to be payable on call of the organization committee or of
the Federal reserve board, one-sixth within three months and onesixth within six months thereafter. and the remainder of the sub
scription, or any part thereof, shall be subject to call when deemed
necessary by the Federal reserve board, said payments to be in gold
or gold certificates.
The shareholders of every Federal reserve bank 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 their subscriptions to such stock at the par value
thereof in addition to the amount subscribed, whether such subscrip
tions have been paid up in whole or in part, under the provisions of
this act.
BANKING AND CURRENCY.
35
Any national bank 'failing to signify its acceptance of the tei'ms of
this act within the sixty days aforesaid sfudl cease to act as a reserve
agent, upon thirty days' notice, to be given within the discretion of
the said organization committee or of the Federal reserve board.
Should any national banking association now organized fail>
within one year after the passage of this act, to become a member
bank under the provisions hereinbefore stated, or fail to comply with
any of the provisions of this act applicable thereto, all of the rights,
privileges, and franchises of such association granted to it under the
national-bank act, or under the provisions of this act, shall be thereby
forfeited. Any noncompliance with or violation of this act shall,
however, he 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 he declared dissolved, and in cases of such viola
tion, other than the failure to become a member bank under the pro
visions of this act, every director who participated in or assented to
the same shall be held liable in his personal or individual capacity
for all damages which said bank, its shareholders, or any other
person, shall have sustained in consequence of such violation.
Such dissolution shall not take away or impair any remedy against
such corporation, its stockholders or officers, for any liability or penalty v'hirh shall have been previously incurred.
Should the subscriptions by banks to the stock of said Federal re
serve banks or any one or more of them be, in the judgment of the
organization committee, insuffirient to provide the amount of capital
required therefor, then and in that event the said organization com
mittee may, under conditions and regulations to he prescribed by it,
offer to public subscription at par such an amount of stock in said
federal reserve banks, or any one or more of them, as said committee
shall determine, subject to tne same conditions as to payment in and
stock liability as provided for member banks.
No individual, copartnership, or corporation other than a member
bank of its district shall be permitted to subscribe for or to hold at
any time more than Si0,000 par value of stock in any Federal reserve
bank. Such stock shall be renown as public stock and may be trans
ferred on the books of the Federal reserve hank by the chairman of
the hoard of directors of such bank.
Should the total subscriptions by banks and the public to the stock
of said, Federal reserve banks, or any one or more of them, be\ in the
judgment of the organization committee, insufficient to provide the
amount of capital required therefor, then and in that event the said
organization committee shall allot to the United States such an
amount of said stock as said committee shall determine. Said
United States stock shall be paid for at par out of any money in
the Treasury not otherwise appropriated, and shqlt be held, by the
Secretary of the Treasury a/nd disposed of for the benefit of -the
United States in such manner, at such times, and at such price, not
less than par, as the Secretary of the Treasury shall determine.
Stock not held by 'member hanks shall not be entitled to voting
power in the hands of its holders, hut the voting power thereon shall
he vested in and be exercised solely by the class (' directors of the
Federal reserve bank in which said stock may be held, and who shall
36
BANKING AND CURRENCY.
be designated as “ voting trustees.” The voting power on said pub
lic stock shall be limited to one vote for each $15,000 par value thereof,
fractional amounts not to be considered. The voting trustees shall
•exercise the same powers as member banks in voting for class A and
class B directors.
The Federal reserve board is hereby empowerd to adopt and pro
mulgate rules and regulations governing the transfers o f said stock
and the exercise of the voting power thereon.
Xo Federal reserve bank shall commence business with a [paid-up
and unimpaired] subscribed capital less in amount than [$5,000,000]
$3fi00JD00. The organization of reserve districts and Federal reserve
cities shall not be construed as changing the present status of reserve
cities and central reserve cities %except in so far as this act changes
the amount of reserves that may be carried with approved reserve
agents located therein. The organization committee shall have power
to appoint such assistants and incur such expenses in carrying out
the provisions o f this act as it shall deem necessary, and such ex
penses shall be payable bv the Treasurer o f the United States upon
voucher approved by the Secretary o f the Treasury, and the sum o f
$100,000. or so much thereof as may be necessary, is hereby appropri
ated, out o f any moneys in the Treasury not otherwise appropriated,
for the payment o f such expenses.
jSTOt’K ISSUES1
nitAX CH
O V F iC E S .
S ec. tt. [That the capital stock of each Federal reserve bank shall
be divided into shares o f $100 each. The outstanding capital stock
shall be increased from time to time as member banks increase their
capital Stock or as additional banks l>ecome members, and may be
decreased as meml>er banks reduce their capital stock or cease to be
members.] Each Federal reserve bank [m a y ] shall establish branch
offices [under regulations o f the Federal reserve board at points
within the Federal reserve district in which it is located: Provided,
That the total number o f such branches shall not exceed one for each
$500,000 o f the capital stock o f said Federal reserve bank] within
the Federal reserve district in v'hich it is located and also in th<> dis
trict of any. Federal reserve bank which may have been *usvended,
such branches to be established ami conducted at places and under
regulations approved by the Federal reserve board.
FEDERAL RESERVE BAN KS.
[ S ec. 4. T h e national banks in each Federal reserve district u n itin g
to form the Federal reserve bank therein, h ereinbefore p rovid ed fo r ,
shall under their seals, m ake an organ ization certificate, w h ich shall
specifically state the name o f such F ederal reserve bank so organ ized,
tne territorial extent o f the d istrict ov er w hich athe operation s o f said
Federal reserve bank are to be carried on , the city and State in w h ich
said bank is to be located, the am ount o f capital stock and the num
ber o f shares into w hich the same is d ivid ed , the names and places
o f d o in g business o f each o f the makers o f said certificate and the
num ber o f shares held b y each o f them , and the fa ct that the ce r
tificate is m ade to enable such banks to avail them selves o f the ad
vantages o f this act. T h e said organization certificates shall be
BANKING AND OUBBENOY.
37
acknowledged before a judge o f some court o f record or notary
public; ana shall be, together with the acknowledgment thereof, au
thenticated by the seal o f such court, or notary, transmitted to the
Comptroller o f the Currency, who shall file, record, and carefully pre
serve the same in his office. Upon the filing o f such certificate with
the Comptroller o f the Currency as aforesaid, the said Federal
reserve bank so formed shall become a body corporate, and ub such,
and in the name designated in such organization certificate, shall have
power to perform all those acts and to enjoy all those privileges and
to exercise all those powers described in section fifty-one hundred and
thirty-six, Revised Statutes, save in so far us the same shall be
limited by the provisions o f this act. The Federal reserve bank so
incorporated shall have succession for a period o f twenty years from
its organization, unless sooner dissolved by act o f Congress. J
Sec. j>. When the organization committee shall have established
Federal reserve districts as provided in section two of this act, a
certificate shall be fled with the Comptroller of the Currency show
ing the geographical limits of such districts and the Federal reserve
city designated in each of such districts. The Comptroller of the
Currency shall thereupon cause to be forwarded to each national
bank located in each district, and to such other banks declared to be
eligible by the organization committee which may apply therefor, an
application blank in form to be approved by the organization com
mittee, which blank shall contain a resolution to be adopted by the
board of directors of each bank executing such application, authoriz
ing a subscription to the capital stock of the Federal reserve bank
organizing in that district in accordance with the provisions of this
act.
When the minimum amount of capital stock prescribed by this act
for the organization of any Federal reserve bank shall haw been sub
scribed and allotted the organization committee shall designate any
five banks of those whose applications have been received, to execute
a certificate of organization, and thereupon the banks so designated
6 hall, under their seals, make an organization certificate which shall
specifically state the name of such Federal reserve banlc so organized,
the territorial extent of the district over which the operations of
such Federal reserve bank are to be canned on, the city and State
in which said bank is to be located, the amount of capital stock and
the number of shares into which the same is divided, the name and
place of doing business of each bank executing such certificate, and
of all banks which have subscribed to the capital stock of such Fed
eral reserve bank and the number of shares subscribed by each, and
the fact that the certificate is made to enable those banks executing
same, and all banks which have subscribed or may thereafter sub
scribe to the capital stock of such Federal reserve bank, to avail
themselves of the advantages of this act.
The said organization certificate shall be acknowledged before a
judge of some court of record or notary public; and shall be, to
gether with the acknowledgment thereof, authenticated b y the seal
of such court or notary, transmitted to the Comptroller of the Cur
rency, who snail file, record and carefully preserve the same in his
office.
Upon the filing of such certificate with the Comptroller of the
Currency as aforesaid, the said Federal reserve bank so formed shall
o
:>,s..— i4
38
BANKING AND CUBBENCY.
heroine a body corporate and m such, and in the name designated in
such organization <<rtifirate, Khali have power—
First. To adopt and use a corporate seal.
Second. To hart xurecssion for a period of twenty years from its
organisation unless it is sooner dissolved by an act of Congress, or
unless its franchise heroines forfeited hy some violation of lav\
Third. t o make contracts.
J Fourth. To sac and he sued, complain ami defend\ in any court of
* la tv and equity as fully as natural person*.
Fifth. To appoint hy its hoard of director*, elected as hereinafter
provided\ such officer* as are not otherwise provided for in this
act, to define their duties%require bonds of them and fix the penalty
thereof%to dismiss surh officers or any of them as tnay be appointed
hy them at pleasure, and to appoint others to fill their places.
Sh'th. To prescribe by its board of directors by-laws not incon
sistent with lau\ regulating the manner ip which its general business
may be conducted, and the privileges granted to it by law may be
exercised and enjoyed.
Seventh. To exercise by its board of directors%or duly authorized
officers or agents. all powers specifically granted hy the provisions of
this act and such incidental powers as shall be necessary to carry on
the business of hanking within the limitations prescribed by this act.
Eighth. Upon deposit with the Treasurer of the United States
of any bonds of the United, States in the manner provided by existing
law relating to national banks, to receive from the Comptroller of
the Currency circulating notes in blank, registered and countersigned,
as provided by Jaw. equal in amount to the par value of the bonds so
deposited* suck notes to be issued under the same conditions and
provisions of late which relate to the issue of circulating notes of
national bank* secured by bonds of the United, States bearing the
circulating privilege.
But no Federal reserve bank shall transact any business except
such as is incidental and necessarily preliminary to its organisation
until it has been authorised by the (Jomptroller of the Currency to
commence business under the provisions of this act.
Every Federal reserve bank shall be conducted under the [over
sigh t! supervision and control o f a board of directors [ . whose powers
shall l>e the same as those conferred upon the boards o f directors
o f national banking associations under existing law, not inconsistent
with the provisions o f this actj.
The board of directors shall perform the duties usually appertain
ing to the office of directors of banking associations and all such
duties as are prescribed by law.
Said hoard shall administer the affairs of said bank fairly and
impartially and without discrimination in favor of or against any
member hank or hanks and shall. subject to the provisions of law and
the orders of the Federal reserve board, extend to each member bank
swh advancements and accommodations as may he safely and rea
sonably made with due rcgar£ for the claims and demands of other
member hanks.
Such board o f directors shall l>e [constituted and electedj selected
as hereinafter specified and shall consist o f nine members, holding
office for three years, and divided into three classes, designated as
classes A, B, ana C
BANKING AND CUBBENCT.
39
Class A shall consist o f three members, who shall be chosen by and
be representative o f the stock-holding banks.
Class B shall consist o f three members, who shall be representative
o f the general public interests o f the reserve district.
Class C shall consist o f three members, who shall be designated by
the Federal reserve board.
No director of class R or of class C shall be an officer, director,
stockholder of a member bank.
Directors o f class A and class R shall be chosen in the following
manner:
[ I t shall be the duty o f th e! The chairman o f the board o f direc
tors o f the Federal reserve bank o f the district in which [each such]
the bank is situated [ t o ] shall classify the member banks o f the
[s a id ] district into three general groups or divisions. Each [su ch ]
group shall contain as nearly as may be one-third o f the aggregate
number o f [s a id ] the memlier banks*of the [s a id ] district and shall
consist, as nearly as luav be, of banks o f similar capitalization. The
[s a id ] groups shall be designated by number [a t the pleasure o f ] by
the chairman [ o f the board o f directors o f the Federal reserve bankj.
At a regularly called [directors’] meeting of the board of directors
o f each member bank iti the |Fe3 eral reserve] district [aforesaid,
the board o f directors of such member bank] it shall elect by ballot
one o f its own meml>ers as a district reserve elector and shall •certify
his name to the chairman o f the board o f directors o f the Federal
reserve bank o f the district. The [s a id ] chairman shall establish
lists o f the district reserve electors[, class A .] thus named by banks
in each o f the aforesaid three groups and shall transmit one list to
each [sue
elector in each group. [E very elector shall, within
fifteen days o f the receipt o f the said list, select and certify to the said
chairman from among the names on the list pertaining to his group,
transmitted to him by the chairman, one name, not lus own, as rep
resenting his choice for Federal reserve director, class A. The name
receiving the greatest number o f votes, not less than a majority, shall
be designated by said chairman as Federal reserve director for the
group to which he Indongs. In ease no candidate shall receive a ma
jority o f all votes east in any group, the chairman aforesaid shall
establish an eligible list, consisting o f the three names receiving the
greatest number o f votes on the first ballot, and shall transmit said
list to the electors in each o f the groups o f banks established bv him.
Each elector shall at once select and certify to the said chairman
from among the three persons submitted to him his choice for Fed
eral reserve director, class A. and the name receiving the greatest
number o f such votes shall l>e declared by the chairman as Federal
reserve director, class A. In case o f a tie vote the balloting shall
continue in the manner hereinliefore prescribed until one candidate
receives more votes than either o f the others.
Directors o f elas> B shall Ih* chosen by the electors o f the respective
groups at the same time and in the same manner prescribed for di
rectors o f class A. except that they must I k? selected from a list o f
names furnished, one by each meml>er bank, and such names shall in
110 ease be those o f officers or directors o f any bank or banking asso
ciation.]
Eeery elector shall, within fifteen days after the receipt of the said
list, certify to the chairman hi* first, second, and other choices upon
40
BANKING AND CURRENCY.
the list, anon ft preferential ballot, on a form furnished by the chair
man of the board of directors of the Federal reserve bank of the dis
trict. Each rh etor shall make a cross opposite the name o f the first,
second, and other choices for a director of class A and for a director
o f class Rmbut shall not rote more than one choice for any one candi
date.
Any candidate ha ring a majority o f all votes cast in the column of
first choice shall be declared elected. I f no candidate have a majority
of all the votes in the first column,, then there shall be added together
the votes cast by the electors for such candidates in the second column
to t/te votes cast for the several candidates in the first column. I f any
candidate then have a majority of the electors voting, by adding together the first and second choices, he shall be declared elected. I f no
candidate have a majority o f electors voting when the first and second
choices shall have been added, then the votes cast in the third column
for other choices shall be added together in like manner, and the can
didate then having the highest number of votes shall be declared
elected. -In immediate report of election shall he declared.
[T h ey shall not accept office as such during the term o f their
service as directors o f the Federal reserve banks. T h ey] Directors of
elass R shall be fairly representative o f the commercial, agricultural,
or industrial interests o f their respective districts. [T h e Federal
reserve board shall have power at its discretion to remove any director
o f class B in any Federal reserve bank, if it should appear at any time
that such director does not fairly represent the commercial, agricul
tural, or industrial interests o f his district.]
Three directors belonging to class C shall be [chosen] appointed
directly by the Federal reserve board, and shall [ b e ] Aa w been for
at least two years residents o f the district for which tlicv are
[selected] appointed, one o f whom shall be designated by said board
as chairman o f the board o f directors o f the Federal reserve bank
o f the district to which he is appointed and shall be designated by
%tid board as “ Federal reserve agent.” He shall be a person o f
tested banking experience; and in addition to his duties as chair
man o f the board o f directors o f the Federal reserve bank of the
district to which he is appointed, he shall be required to maintain
under regulations to be established bv the Federal reserve board a
local office o f said board, which shall be situated on the premises o f
the Federal reserve bank o f the district, Tie shall make regular
reports to the Federal reserve board, and shall act as its official repre
sentative for the performance o f the functions conferred upon it by
this act. He shall receive an annual compensation to be fixed by the
Federal reserve board and paid monthly by the Federal reserve bank
to which he is designated. One of the directors of class C shall he
appointed by the Federal reserve hoard as deputy chairman and
deputy Federal reserve agent to exercise the powers of the chair
man of the hoard and Federal reserve agent in case of the absence
or disability of his principal.
Directors o f Federal reserve banks shall receive, in addition to any
compensation otherwise provided, a reasonable allowance for neces
sary expenses in attending meetings o f their respective boards, which
amount shall be paid by the respective Federal reserve banks. Any
compensation that may oe provided by boards o f directors o f Federal
reserve banks for members o f such boards shall be subject to review
BANKING AND CURRENCY.
41
and subsequent readjustment at any time by the Federal reserve
board.
The reserve hank organization committee may, in organizing Fed
eral reserve banks for the first time, call such meetings o f bank
directors in the several districts as mav be necessary to carry out
the purposes o f this act. and may exercise the functions herein con
ferred upon the chairman o f the board o f directors o f each Federal
reserve bank pending the complete organization o f such bank.
At the first meeting o f the full board of directors o f each Federal
reserve bank after organization it shall be the duty o f the directors
of classes A and B and C, respectively, to designate one o f the mem*
l>ers o f each class whose term o f office shall expire in one year from
the first o f January nearest to date of such meeting, one whose term
o f office shal1 expire at the end o f two years from said date, and one
whose term ot office shall expire at the end o f three years from said
date. Thereafter every director o f a Federal reserve bank chosen
as hereinbefore provided shall hold office for a term o f three years
[ ; but the chairman o f the board o f directors of each Federal
reserve bank designated bv the Federal reserve board, as hereinbefore
described, shall be removable at tjie pleasure o f the said board, with
out notice, and his successor shall hold office during the unexpired
term o f the director in whose* place he was appointed.] Vacancies
that may occiir in the several classes o f directors of Federal reserve
banks mav be filled in the manner provided for the original selection
o f such directors, such appointees to hold office for the unexpired
terms of their predecessors.
ST O CK ItfSL 'K S; IN VRKASK
\M > DKCRKASK OF C A P IT A L .
S e c . 5. [T h at shares] The capital stock of each Federal reserve
bank shall be divided into shit res of $l()0 each. The outstanding
capital stock shall be increased from time to time as member banks
increase their capital stock and surplus or as additional banks become
members* and may be decreased as member banks reduce their capital
stock or surplus or cease to be members. Shares of the capital stock
o f Federal reserve banks owned by member banks shall not be trans
ferable, nor be [hypothecated] hypothecate . In case a member
bank [increased] increase its capital stock or surplus, it shall there
upon subscribe for an additional amount of capital stock o f the
Federal reserve bank of its district equal to [tw en ty] sir per centum
o f the [bank's ow n] said increase [ o f capital,] one-half of said sub
scription to be paid |m cash] in tne manner hereinbefore provided
for original subscription, and one-half [to become a liability of the
member bank according to the terms of the original subscription]
subject to call of the Federal reserve board. A bank applying for
stock in a Federal reserve bank at any time after the [form ation of
the latter] organization thereof must subscribe for an amount of the
capital stock of [s a id ] the Federal reserve bank equal to [tw en ty]
six per centum o f the paid-up capital stock and surplus of said [sub
scribing] applicant bank, paying therefor its par value Tin accord
ance with the terms prescribed by section two o f this act] plus one-
half of one per cent a month from the period of the last dividend.
When the capital stock of any Federal reserve bank [Im s] »hal1 have
been increased either on account o f tin* increase of capital stock o f
42
BANKING AND CURRENCY.
member banks or on account o f the increase in the number o f mem
ber banks, the board o f directors shall [make and execute] cause to
be executed a certificate to the Comptroller of the Currency showing
[s a id ] the increase in capital stock , the amount paixi in, and bv
whom paid. In case a member bank reduces its capital stock it shall
surrender a proportionate amount o f its holdings in the capital o f
said Federal reserve bank, and in case a member bank goes into vol
untary liquidation it shall surrender all of its holdings o f the capital
stock o f said Federal reserve bank and be released from its stock sub
scription not previously called. In either case the shares surren
dered shall be canceled and such member bank shall receive in pay
ment therefor, under regulations to be prescribed by the Federal re
serve board, a sum equal to its cash paid subscriptions on the shares
surrendered and one-half of one per rent a month from the period of
the last dividends not to exceed the book value thereof, less any lia
bility of such member bank to the Federal reserve bank.
S e c . 6. [T h at if any member bank shall become insolvent and a
receiver be appointed, the stock held by it in said Federal reserve
bank shall be canceled and the balance, after deducting from the
amount o f its cash-paid subscriptions all debts due by such insolvent
bank to said Federal reserve bank, shall be paid to the receiver o f the
insolvent bank] I f any member bank shall be declared insol rent and a
receiver appointed the re for , the stock held by it in said Federal reserve
bank shall be canceled* and all cash-paid subscriptions on said stock,
with one-half of one per centum per?nonth from the period of last divi
dend\ not to exceed the book value thereof * shall be first applied to
all debts of the insolvent member bank to the Fcderal reserve bank%and
the balance. if any, shall be paid to the receiver of the insolvent bank.
Whenever the capital stock o f a Federal reserve bank is reduced,
either 011 'account of a reduction in capital stock o f any member bank
or o f the liquidation or insolvency o f [any such member] such bank,
the board o f directors shall [make and execute] cause to be executed,
a certificate to the Comptroller o f the Currency showing such reduc
tion o f capital stock and the amount repaid to such bank.
D IV ISIO N OF E A K N IN < ;S .
Sk< . 7. [That after the payment o f ] After all necessary expenses
[and taxes] o f a Federal reserve bank have been paid or provided
for* the meinl>er banks shall be entitledto receive an annual dividend
o f [fiv e ] six per centum 011 the paid-in capital stock, which dividend
shall be cumulative. [O ne-half of the net earnings, after the afore
said dividend claims have been fully met, shall be paid into a surplus
fund until such fund shall amount to twenty per (entiun o f the
paid-in capital stock of such bank, and of the remaining one-half
sixty per centum shall l>e paid to the Tinted States and forty per
centum to the member banks in the ratio of their average balances
with the Federal reserve bank for the preceding year. Whenever
and so long as the surplus fund of a Federal reserve bank amounts
to twenty per centum of the paid-in capital stock and the member
banks shall have received the dividends at the rate o f five per
centum per annum hereinbefore provided for. sixty per centum o f
all excess earnings shall be paid to the Tinted States and forty per
BANKING AND CUBBENCY.
43
centum to the member banks in proportion to their annual average
balances with such Federal reserve bank; a ll] After the aforesaid
dividend claims have been fully met, all the net earnings shall be
paid to the United States as a franchise tax, excepting, however, that
one-half of such earnings shall be first applied to the creation and
maintenance of a surplus fund equal to twenty per centum of the
capital stock of said bank. All net earnings derived by the United
States from Federal reserve banks shall [constitute a sinking fund
to be held fo r ] be applied to the reduction o f the outstanding bonded
indebtedness o f the United States[, said reduction to be accom
plished] under regulations to be prescribed by the Secretary of the
Treasury. Should a Federal reserve bank be dissolved or go into
liquidation, [the surplus fund of said bank] any surplus remaining,
after the payment o f all debts and dividend requirements as here
inbefore provided for, shall be paid to and become the property o f
the United States and shall be similarly apvlied.
Every Federal reserve bank incorporated under the terms o f this
act [a n d ], the capital stock therein [held by member banks], and the
ineomA> denied therefrom shall be exempt from Federal, State, and
local taxation, except in respect to taxes upon real estate.
S e c . 8. [T hat any national banking association heretofore organ
ized may upon application at any time within one year after the
passage o f this act, and with the approval of the Comptroller of
the Currency, be granted, as herein provided, all the rights, and be
subject to all the liabilities, o f national banking associations organ
ized subsequent to the passage of this act: Provided , That such appli
cation on the part o f such associations shall be authorized by the
consent in writing o f stockholders owning not less than a majority
o f the capital stock o f the association. Any national banking asso
ciation now organized which shall not, within one year after the
passage o f this act. become a national banking association under the
provisions hereinbefore stated, or which shall fail to complv with
any o f the provisions o f this act applicable thereto, shall l>e dis
solved: but such dissolution shall not take away or impair any
remedy against such corporation, its stockholders or officers, for any
liability or penalty which shall have previously been incurred.]
S e c . 0. [That any] Any bank [o r banking association] incorpo
rated by special law of arty State or of the United States, or organ
ized under the general laws of anv State or of the United States, and
having an unimpaired capital sufficient to entitle it to become a na
tional banking association under the provisions o f existing laws, may,
by [the consent in w riting] rote o f the shareholders owning not less
than fifty-one per centum of the capital stock o f such bank or bank
ing association, [a n d ] with the approval o f the Comptroller o f the
Currency [become a ] and acting through a committee* organize a
national banking axxoclaiion9-with any name approved by the said
comptroller, and transfer its business to such national banking asso
ciation [under its former name or by any: name approved by the
comptroller] ; Prodded . however, That said arts are not in contra
vention of the State or local law. The directors thereof may con
tinue to be the directors o f the association so organized until others
are elected or appointed in accordance with the provisions of the law.
When the comptroller has given to such bank or banking association
44
BANKING AND OUBMKOY.
a certificate that the provisions of this act have been complied with,
such bank or banking association, and all its stockholders, officers,
and employees, shall nave the same powers and privileges, and shall
be subject to the same duties, liabilities, and regulations, in all re
spects, as shall have been prescribed by this act [or| and by the na
tional banking act for associations originally organized as national
banking asssociations.
STATE BA N K S AS MEMBERS.
S ec. 10. -{That from and after the passage o f this act any] Any
bank [o r banking association or trust com pany] incorporated by
special law o f any State, or organized under the general laws o f any
State or of the ITnited States, may make application to the reserve
bank organization committee, pending organization, and thereafter to
the Federal reserve board [hereinafter created] for the right to sub
scribe to the stock o f the Federal reserve bank organized or to be
organized within the Federal reserve district where the applicant is
located. The organization committee or the Federal reserve board,
under such rules and regulations as it may prescribe, subject to the
rovisions o f this section, [sh a ll] may permit [su ch ] the applying
ank to become a stockholder in the Federal reserve bank o f the dis
trict in which [su ch ] the applying bank is located. Whenever the
organization committee or the Federal reserve board shall permit
[su ch ] the applying bank to become a stockholder in the Federal
reserve bank o f the district [in which the applying bank is located],
stock shall be issued and paid for under the rules and regulations in
this act provided for national banks which become stockholders in
Federal reserve banks.
[ I t shall be the duty o f the] The organization committee or the
Federal reserve board [ t o ]
establish by-laws for the general gov
ernment o f its conduct in acting upon applications made by the State
hanks and banking associations and trust companies [hereinbefore re
ferred to ] for stock ownership in Federal reserve banks. Such by
laws shall require applying banks not organized under Federal law
to comply with the reserve and capital requirements and to submit
to the [inspection] examination and [regulation provided for in
this and other laws relating to national banks] regulations pre
E
scribed by the organization committee or by the Federal reserve
board. Xo [su ch ] applying bank shall be admitted to membership
in a Federal reserve bank unless it possesses a paid-up unimpaired
capital sufficient to entitle it to become a national banking asso
ciation in the place where it is situated, under the provisions o f the
national banking act [ , and conforms to the provisions herein pre
scribed for national banking associations of similar capitalization
and to the regulations of the Federal reserve board].
Any bank becoming a member of a Federal reserve bank under the
provisions of this section shall, in addition to the regulations and
restrictions hereinbefore provided, be required to conform to the
provisions of law imposed on the national banks and to such rules and
regulations as the Federal reserve board may, in pursuance thereof,
prescribe respecting the limitation of liability which may be incurred
by any person, firm-, or corporation to such banks, the prohibition
against making purchase of or loans on stock of such banks, and the
BANKING AND CURRENCY.
45
withdrawal or impairment of capital, or the payment of unearned
dividends.
Such banks, and the officers, agents, am/ employees thereof, shall
also be subject to the provisions of and to the penalties prescribed by
sections fifty-one hundred and ninety-eight* fifty-two hundred and
eight, fifty-two hundred, fifty-two hundred and one,
fifty-two
hundred and eight and fifty-two hundred and nine of the Revised
Statutes. The member banks shall also be required to make reports
of the conditions and of the payments of dividends to the comp
troller, as provided in sections fifty-two hundred and eleven and fiftytwo hundred ami twelve of the Revised Statutes, and shall be subject
to the penalties prescribed by section fifty-two hundred and thirteen
for the failure to make such report.
I f at any time it shall appear to the Federal reserve board that a
hanking association or trust company organized under the laws o f
any State or o f the United States and having become a member bank
has failed to comply with the provisions of this section or the regu
lations o f the Federal reserve board, it shall be within the power of
the said board, .after hearing, to require such banking association
^ trust company to surrender its stoc k in the Federal reserve bank;
[in w hich it holds stoc
upon [receiving from ] such surrender the
Federal reserve bank shall pay the cash-paid subscriptions to the said
stock [in current- fu n d s] trith interest at the rate of one-half of one
per centum per month
computed from the last dividend, if
earned, not to exceed f*he book value thereof, less any liability to said
Federal reserve bank, c.vcept the subscription liability not previously
(ailed, which shall he canceled* and said Federal reserve bank shall,
upon notice from the Federal reserve board, be required to suspend
said banking association or trust company from further privileges
o f membership, and shall within thirty days of such notice cancel
and retire its stock and make payment therefor in the manner herein
provided. The Federal reserve board, may restore membership upon
due proof of compliance frith the conditions imposed by this section.
FEDERAL RESERVE HOARD.
S et.
11. [ T hat there shall l>e created a ] .1 Federal reserve b oa rd [J
is hereby created which shall consist of seven members, including the
Secretary o f the Treasury, [the Secretary of Agriculture, and the
Comptroller of the Currency,] who shall l>e [members] a member
ex officio, and [f o u r ] si.r members appointed by the President of the
United States, bv and with the advice and consent of the Senate.
In selecting the [fo u r ] si.r appointive meml>ers of the Federal reserve
board, [not more than one of whom shall be selected from any one
Federal reserve district.] the President shall have due regard to a
fair representation of [different] the financial, commercial* and
geographical divisions of the country. The [fo u r ] si.r members of
the Federal reserve board appointed by the President and confirmed
as aforesaid shall devote their entire time to the business of the
Federal reserve board and shall each receive an annual salary of
$10,000. together with an allowance for actual necessary traveling
expenses [ , and the Comptroller o f the Currency, as ex officuwnember o f said Federal reserve board, shall, in addition to the salary now
46
BANKING AND CUBBENCY.
paid him as comptroller, receive the sum o f $5,000 annually for his
services as a member o f said boa rd ], O f the [f o u r ] six members
thus appointed by the President [n ot more than two shall be of the
same political party, and] at least [one o f whom] two shall be [a
person] person* experienced in banking or finance. One shall be
designated bv the President to serve for [t w o ] one, one for [f o u r ]
two, one for [s ix ] three. [a m i] one for [eight years] four, one for
fire, and one for sir years, respectively, and thereafter each member
so appointed shall serve for a term o f [e ig h t] six years unless sooner
removed for cause by the President. O f the [f o u r ] six persons thus
appointed, one shall be designated by the President as [m anager]
governor and one as vice [m anager] governor of the Federal reserve
board. The [m anager] governor o f the Federal reserve board, sub
ject to the supervision o f the [Secretary of the Treasury and] Fed
eral reserve board, shall be the active executive officer of the Federal
reserve board. In ease of vacancies,, temporary appointments on the
Federal reserve hoard may he made hy the President when the
Senate is not in session, to he immediately submitted to the Senate
when it convenes. The Secretary of the Treasury may assign offices
in the Department of the Treasury for the use of the Federal reserve
board. TLaeh member of the Federal reserve hoard shall within
fifteen days after notice of appointment make and subscribe to the
o(ith of office.
The Federal reserve board shall have power to levy semiannually
upon the Federal reserve banks, in proportion to their capital stock
and surplus. $n assessment sufficient to pay its estimated expenses
and salaries of its members and employees for the half year succeed
ing the levying o f such assessment, together with any deficit carried
forward from the preceding half year.
The first meeting o f the Federal reserve board shall Im» held in
Washington, District o f Columbia, as soon as may be after the
passage o f this act, at a date to be fixed by the reserve bank organi
zation committee. The Secretary o f the Treasury shall be ex officio
chairman o f the Federal reserve board. No member o f the Federal
reserve lx>ard shall be an officer or director o f any bank, [ o r ] bank
ing institution, trust company, or Federal reserve bank nor hold
stock in any bank, [ o r ] banking institution, or trust company,
and before entering upon his duties as a member o f the Federal
reserve board lie shall certify under oath to the Secretary o f the
Treasury that he has complied with this requirement. Whenever a
vacanov shall occur, other than bv expiration o f term, among the
[ f o u r ] six members o f the Federal reserve board appointed by th«j
President, as above provided, a successor shall be appointed by the
President, with the advice and consent of the Senate, to fill such
vacancy, and when appointed he shall hold office for the unexpired
term o f the member whose place he is selected to fill.
Nothing in this act contained sh/ill he construed as taking away
any powers heretofore vested by law in the Secretary of the Treasury
which relate to the supervision, management, and control of the
Treasury Department and bureaus under such department\ and, wher
ever any power rested hy this act in the Federal reserve hoard or the
Federal reserve agent appears to conflict with the powers of the Sec
retary/ of the Treasury, such powers shall be exercised subject to the
supervision and control of the Secretary.
BANKING AND CURRENCY.
47
The Federal reserve board shall annually make a full report of
its [fiscal] operations to the Speaker of the House of Representa
tives, who shall cause the same to be printed for the information of
the Congress.
Section three hundred and twenty-four of the Revised Statutes of
the United States shall be amended so as to read as follows: " [There
shall be in the Department o f the Treasury a bureau charged, except
as in this act otherwise provided, with the execution o f all laws
passed bv Congress relating to the issue and regulation of currency
issued by or through banking associations, the chief officer of which
bureau shall be called the Comptroller o f the Currency, and shall
perform his duties under the general direction of the Secretary of
the Treasury, acting as the chairman of the Federal reserve b oa rd :”
Provided, hou'cver, That nothing herein contained shall be construed
to affect any power now vested by law in the Comptroller of the
Currency or the Secretary of the Treasury]j There shall be in the
Department of the Treasury a bureau charged with the execution of
all laws passed by Congress relating to the issue and regulation of
national currency secured by United States bonds and\ under the
general supervision of the Federal reserve board, of all Federal
reserve notes, the chief officer of which bureau shall be called the
Comptroller of the Currency and shall perform his duties under
the general directions of the Secretary of the Treasury ”
S e c . 12. [T hat the] The Federal reserve board [hereinbefore
established] shall be authorized and empowered:
(a) To examine at its discretion the accounts, books, and affairs
of each Federal reserve bank and of each member bank and to require
such statements and reports as it may deem necessary. The said
board shall publish once each week a statement showing the condi
tion of each Federal reserve bank and a consolidated statement for all
Federal reserve banks. Such statements shall show in detail the
assets and liabilities of [su ch ] the Federal reserve banks, single and
combined, and shall furnish full information regarding the character
o f the [la w fu l] money held as reserve and the amount, nature, and
maturities of the paper and other investments owned or held by
Federal reserve banks.
(b) To permit or require[. in time of emergency,] Federal reserve
banks to rediscount the discounted [p rim e] paper of other Federal
reserve banks[, at least five members of the Federal reserve board
being present when such action is taken and all present consenting to
the requirement. The exercise o f this compulsory rediscount power
by the Federal reserve board shall be subject to an interest charge to
the accommodated bank of not less than one nor greater than three
per centum above the higher o f the rates prevailing in the districts
immediately affected] at rates of interest to fixed each week by the
Federal reserve board.
(c) To suspend for a period not exceeding thirty days, [ ( ] and
from time to time to renew such suspension for periods not [to exceed]
exceeding fifteen d a y s [)]. any [and every] reserve requirement
specified in this act: Prodded , That it shail establish a graduated
tax upon the amounts bv which the reserve requirements of this act
may be permitted to fall below the level hereinafter specified, such
tax to be uniform in its application to all Federal reserve banks and
to member banks, required to keep the same reserves^ but said board
48
BANKING AND CURRKNCY.
shall not suspend the reserve requirements with reference to Federal
reserve notes].
(d ) [ T o supervise and regulate the issue and retirement o f Federal
reserve notes and to prescribe the form and tenor o f such notes.]
To supervise and regulate thi'ough the bureau under the charge of
the Comptroller of the Currency the issue and retirement of Federal
voter re notes, and to prescribe rules and regulations under which such
notes may be delivered by the comptroller of the Federal reserve
agents applying therefor.
(e) To add to the-number o f cities classified as reserve and central
reserve cities under existing law in which national banking asso
ciations are subject to the reserve requirements set forth in section
twenty o f this act; or to reclassify existing reserve and central re
serve cities [and to designate the banks therein situated as country
banks at its discretion] or to terminate tluir designation as such.
(f ) [T o suspend tne officials o f Federal reserve banks and, for
cause stated in writing with opportunity o f hearing, require the
removal o f said officials for incompetency, dereliction of duty, fraud,
or deceit, such removal to be subject to approval bv the President o f
the United States] To suspend or remove any officer or director of
any Federal reserve bank* the cause of such removal to be forthwith
communicated in writing by the Federal reserve boat'd to the removed
officer or director and to said bank.
(g ) To require the writing off o f doubtful or worthless assets
upon the books and balance sneets o f Federal reserve banks.
(h) To suspend, for cause relating to violation of any o f thjtpro
visions o f this act, the operations o f any Federal reserve bank and
[appoint a receiver therefor] take possession, thereof and administer
the same during the period of suspension.
(i) To require bonds of Federal reserve agents, perform the duties,
functions, or services specified or implied in this act, and to make all
rules and regulations necessary to enable said board effectively to
pcrfo-rm the same.
(j) To exercise general supervision over said Federal resa w banks.
(k) To authorize the use, as reserves of member banks* Federal
reserve notes, or bank notes based on United States bonds* to the
extent that said board may find necessary.
(I) To grant by special permit to national banks applying there
for the right to act as trustee, c#eeutor%or to exercise general trust
powers under such rides and regulations as the said board may
prescribe.
F ED ER AL ADVISOR Y
COVNC1L.
S ec.
There is hereby created a Federal advisory council, which
shall consist o f as many members as there are Federal reserve dis
tricts. Each Federal reserve bank by its board o f directors shall an
nually select from its own Federal reserve district one member o f said
council, who shall receive [n o compensation for his services, but may
be reimbursed for actual necessary expenses] such compensation and
allowances as may be fixed by his board of directors subject to the
approval of the Federal reserve board. The meetings o f said advisory
council shall l>e held at Washington, District o f Columbia, at least
four times each year, and oftener if called by the Federal reserve
BANKING AND CURRENCY.
49
board. T h e cou n cil m ay select^ its ow n officers and a d op t its ow n
m ethods o f procedure, and a m a jority o f its members shall constitute
a quorum fo r the transaction o f business. V acancies in the cou n cil
shall be filled b y the respective reserve banks, and m em bers selected
to fill vacancies shall serve f o r the unexpired term.
T h e Federal a d visory council shall have pow er, by itself or through
Us officers* (1 ) to [m e e t a n d ] co n fe r directly w ith the F ederal reserve
board on general business con d ition s; (2 ) to m ake oral o r written
representations con cern in g m atters w ithin the ju risd iction o f said'
b o a r d ; (3 ) to call f o r [ c o m p le t e ] inform ation and to m ake recom
m endations in regard to d iscou nt rates, rediscount business, note
issues, reserve con d ition s in the various districts, the* purchase and
sale o f g o ld o r securities b y reserve banks, o|>en-market operations b y
said banks, and the general affairs o f the reserve b an k in g system.
POWERS OF FEDERAL RESERVE BANKS.
S ec . 14. [T h a t a n y ] Any F ederal reserve bank m ay receive fro m
any of its m em ber [ b a n k ] banks* and from the United States, d epos
its o f current fu n d s in la w fu l m oney, national-bank notes, F ed eral
reserve notes, o r checks and d ra fts upon solvent banks o f the Federal
reserve system, payable upon presen tation ; or, solely f o r exchange
purposes, m ay receive from other Federal reserve banks deposits o f
current fun ds in law fu l m oney, national-bank notes, o r checks and
d ra fts upon solvent member or other Federal reserve banks, payable
u pon presentation.
U p on the indorsem ent o f any of its m em ber [ b a n k ] hanks, any
Federal reserve bank m ay discount notes, draft** and b ills o f ex
change arisin g out o f actual com m ercial transactions; that is, notes,
drafts, and bills o f exchange issued o r draw n f o r agricultural, indus
tria l, o r com m ercial purposes, o r the proceeds o f which have been
used, o r [ m a y ] arc to be used, f o r such purposes, the Federal reserve
board to have the righ t to determ ine o r define the character o f the
p a p er thus eligib le f o r discount, w ithin the m eaning o f this act [ ;
n o th in g h erein ]. Nothing in this act contained shall be construed to
p roh ib it such notes, drafts, and bills o f exchange, secured b y staple
agricultural p roducts, o r oth er good s, wares, o r m erchandise from
bein g eligible f o r such d iscou n t; but such definition shall not include
notes, drafts, o r b ills covering merely investments or issued o r draw n
f o r the purpose o f ca rry in g o r tra d in g in stocks, bonds, o r other
investm ent securities, except bonds and nates of the Government of
the I nitcd States. N otes, drafts, and b ills adm itted to discount
under the terms o f this paragrap h must have a m aturity at the tim<e
o f d i s c o u n t o f not m ore than ninety days.
[ U p o n the indorsem ent o f any m em ber bank any Federal reserve
bank m ay d iscou n t the paper o f the classes hereinbefore described
h a v in g a*m aturity o f m ore than ninety and not m ore than one hun
dred and tw en ty days, when its ow n cash reserve exceeds th irty-three
and one-third per centum o f its total ou tstan din g dem and liabilities
exclu sive o f its ou tstan d in g F ederal reserve notes b y an am ount to
be fixed by the Federal reserve b o a r d : but not m ore than fifty per
centum o f the total p aper so discounted fo r any m em ber bank shall
have a m aturity o f m ore than ninety days.
50
BANKING AND 'CURRENCY.
U pon the indorsem ent o f anv member bank a n y ] Any F ed eral
reserve bank m ay discount acceptances o f [ s u c h ] member banks
w hich are based on the exp ortation or im portation or domestic ship
ments o f good s and w hich [m a tu re i n ] have a maturity at time of dis
count of not m ore than [ s i x ] three m onths, and bear the signature o f
at least one m em ber bank in addition to that o f the acceptor. T h e
am ount of acceptances so discounted shall at no tim e exceed on e -h a lf
the capital stock and surplus o f the bank fo r w hich the rediscounts
are made.
T h e aggregate o f such notes and bills bearin g the signature o r in
dorsem ent o f .any one person, com pan y, firm , or co rp ora tion red is
counted f o r any one bank shall at no tim e exceed ten per centum o f
the unim paired capital and surplus o f said b a n k ; but this restriction
shall not a p p ly to the discount o f bills o f exchange d raw n in g o o d
fa ith against actually existin g values.
A n y national bank m ay [ . at its d iscretion ,] accept d ra fts or b ills
o f exchange draw n upon it [h a v in g n ot m ore than six m onths sight
to r u n ] and g row in g out o f transactions in v o lv in g the im p ortation ,
[ o r ] exp ortation , or domestic shipment o f go o d s having not more
than six months sight to m n; but no bank shall accept such b ills to
an am ount equal at any tim e in the aggregate to m ore than o n e -h a lf
[t h e face value o f ] its p aid -u p [a n d u n im p a ire d ] ca p ital stock and
surplus.
[S e c tio n fifty -tw o hundred and tw o o f the R evised Statutes o f the
U n ited States is hereby amended so as to read as fo llo w s : N o asso
ciation shall at any tim e be indebted, or in any w ay liable, to an
am ount exceedin g the amount o f its capital stock at such tim e a c
tually p aid in and rem ainin g undim inished b y losses o r otherw ise,
except on account o f dem ands o f the nature f o llo w in g :
First. N otes o f circulation.
S econd. M oneys deposited w ith o r collected b y the association.
T h ird . B ills o f exchange or d ra fts draw n against m oney actually
on deposit to the credit o f the association, o r due thereto.
F ou rth . L iabilities to the stockholders o f the association f o r d iv i
dends and reserve profits.
F ifth . L iabilities incurred under the p rovision s o f sections tw o ,
five, and fourteen o f the Federal reserve a c t.]
The Federal reserve board may authorize the reserve bank of the
district to discount the direct obligations of member banks, secured
by the pledge and deposit of satisfactory securities; but in no case
shall the amount so loaned by a Federal reserve bank exceed threefourths of the actual value of the securities so pledged.
The rediscount by any Federal reserve bank of any bills receivable
and of domestic and foreign bills of exchange and acceptances shall
be subject to such restrictions* limitations, and regulations as may be
imposed by the Federal reserve board.
OPEN-MARKET <»PERATIONS.
Sec. 15. [T h a t a n y ] Any Federal reserve bank m ay. under rules
and regulations prescribed by the Federal reserve b oard, purchase
and sell in the open m arket, at home or abroad, either fro m o r to
dom estic or foreign banks, firms, corp oration s, or individu als,
[ P r im e ] cable transfers an'1 bankers' [ b i l l s ] acceptances and b ills
BANKING AND CURRENCY,
51
of exchange of the kinds and maturities by this act made eligible for
rediscount [ , and cable transfers].
Every Federal reserve bank shall have power:
(a) to deal in gold coin and bullion [both] at home [and] or
abroad, to make loans thereon, exchange Federal reserve notes for
Ifold, (fold coin* or gold certificates, and to contract for loans of gold
coin or bullion, giving therefor, when necessary, acceptable security,
including the hypothecation of United States bonds or other securi
ties which Federal reserve banks are authorized to hold;
(b) to [invest in] buy and sell, at home or abroad, bonds and notes
of the United States [bonds], and [bonds issue*) by any State,
county, district, or municipality] bills, notes* revenue bonds, ana
warrants with a maturity from date of purchase of not exceeding six
months, issued in anticipation of the collection of taxes or in antici
pation of the receipt of assured revenues by any State, county, dis
trict, or municipality of the United States, such purchases to he made
in accordance with rules and regulations prescribed by the Federal
reserve board;
(e) to purchase from member banks and to sell, with or without its
indorsement, bills of exchange arising out of commercial transactions,
as hereinbefore defined [ , payable in foreign countries; but such bills
of exchange must have not exceeding ninety days to run and must
bear the signature of two or more responsible parties, of which the
last shall be that of a member bank];
(d) to establish [each week, or as much oftener as required] from
time to time, subject to review and determination of the Federal
reserve board, [a rate] rates of discount to be charged by [such]
the Federal reserve bank for each class of paper, which shall be
fixed with a view of accommodating [th e] commerce [o f the coun
try] and^business ; [and]
(e) to establish .accounts with other Federal riser re banks for
exchange purposes and, with the consent of the Federal reserve board,
to open and maintain banking accounts in foreign countries, appoint
correspondents, and establish agencies in such countries wheresoever
it may deem l>est for the purpose* of purchasing, selling, and collecting [foreign] bills of exchange, and to buy and sell with or without
its indorsement, through such correspondents or agencies, [prime foreign] bill of exchange arising out of actual commercial transac
tions which have not [exceeding] more than ninety days to run and
which bear the signature of two or more responsible parties.
OOVKRNMKNT DEPOSITS
S k<*. 10. [That all] The moneys [now ] held in the general fund
of the Treasury, except the five per centum fund for the redemption
of outstanding national-bank notes and the funds provided in this
act for the redemption of Federal reserve mtes [snail] may, upon
the direction of the .Secretary of the Treasury, [witnin twelve months
after the passage of this act,] be deposited in Federal reserve banks,
which banks [shall,] when require^ by the Secretary of th< Treasury,
shall act as fiscal agents of the United States: and [thereafter] the
revenues of the Government or any part thereof [sh all] may l>e
[regularly] deposited in such banks, and disbursement [shall] may
be made bv checks drawn against such deposits.
52
BANKING AND CURRENCY.
No public funds of the Philippine Islands, or of the postal savings,
or any Government funds, shall be deposited in the continental
United States in any bank not belonging to the system established by
this act: Provided, however, That nothing in this act shall be con
strued to deny the right of the Secretary of the Treasury to use
member banks as depositaries.
[T h e Secretary of the Treasury shall, subject to the approval o f
the Federal reserve board, from time to time, apportion the funds
o f the Government among the said Federal reserve banks, distribut
ing them, as far as practicable, equitably between different sections,
and may, at their joint discretion, charge interest thereon and fix,
from month to month, a rate which shall be regularly paid by the
banks holding such deposits: Provided, That no Federal reserve
bank shall pay interest upon any deposits except those o f the United
States.
No Federal reserve bank shall receive or credit deposits except
from the Government o f the United States, its own member banks,
and. to the extent permitted bv this act, from other Federal reserve
banks. All domestic transactions o f the Federal reserve banks in
volving loans* made by such banks, rediscount operations or the cre
ation o f deposit accounts shall be confined to the Government and
the depositing and Federal reserve banks, with the exception o f the
purchase or sale of Government or State securities or o f gold coin
or bull ion. J
NOTE
ISSU E S.
S e c . 17. Federal reserve notes, to be issued at the discretion of the
Federal reserve board for the purpose o f making advances to Fed
eral reserve banks through the Federal reserve agents as hereinafter
set forth and for no other purpose, are hereby authorized. The said
notes shall be obligations o f the United States and shall be receivable
for all taxes [ , customs,] and other public dues, except customs. They
shall be redeemed in gold [o r lawful money] on demand at the
Treasury Department o f the United States, in the city o f Wash
ington, District o f Columbia, or in gold or lawful money at any
Federal reserve bank.
Any Federal reserve bank may [ , upon vote o f its directors,] make
application to the local Federal reserve agent for such amount o f the
Federal reserve notes hereinbefore provided for as it may [deem
best] require. Such application shall be accompanied with a tender
to the local Federal reserve agent o f collateral in amount equal to
the sum o f the Federal reserve notes thus applied for and issued
pursuant to such application. The collateral security thus offered
shall be notes and bills accepted for rediscount under the provisions
o f section 14 o f this act, and the Federal reserve agent shall each
day notify the Federal reserve board o f all issues and withdrawals
o f Federal reserve notes to and by the Federal reserve bank to which
he is accredited. The said Federal reserve board shall be authorized
at any time to call upon a Federal reserve bank for additional secur
ity to protect the Federal reserve notes issued to it.
[W henever any Federal reserve bank shall pay out or disburse Fed
eral reserve notes issued to it as hereinbefore provided, it shall segre
gate in its own vaults and shall carry to a special reserve account on
BANKING AND CURRENCY.
53
its books gold or lawful money equal in amount to thirty-three and
one-third per centum of the rfeserve notes so paid out by it, such re
serve to be used for the redemption of said reserve notes as presented;
but any Federal reserve bank so using any part of such reserve to
redeem notes shall immediately carry to said reserve account an
amount of gold or lawful money sufficient to make said reserve equal
to thirty-three and one-third' per centum of its outstanding Federal
reserve notes.J
Every Federal reserve bank shall maintain reserves in gold or law
ful money of not less than thirty-jive per centum against its deposits
and its Federal reserve notes in actual circulation, but the amount of
gold in the Federal reserve bank, together with the amount deposited
by it with the Treasury, shall be at least equal to thirty-three and onethird per centum of the Federal reserve notes issued to said bank and
in actual circulation and not offset by aold or lawful money depos
ited with the Federal reserve agent. Notes so yaid out shall near
upon their faces a distinctive letter and serial number, which shall be
assigned by the Federal reserve board to each Federal reserve bank.
Whenever Federal reserve notes issued through one Federal Toserve
bank shall l>e received by another Federal reserve bank they shall be
[immediatelyJ ipromptly returned for credit oi' redemption to the
Federal reserve Dank through which they were originally issued [,o r
shall be charged off aga list Government deposits and returned to the
Treasury of the United States, or shall he presented to the said
Treasury for redemptionJ. No Federal reserve bank shall pay out
notes issued through another under penalty of a tax of ten per
centum upon the face value of notes so paid out. Notes presented for
redemption at the Treasury* of the United States shall be paid out of
the redemption fund, and, if fit for circulation, returned to the Fed
eral reserve banks through wnich they were originally issued. Fed
eral reserve notes received by the Treasury, otherwise than for re
demption, [shallJ may be exchanged for [lawful money] gold out
of the [five per centum] redemption fund hereinafter provided and
returned [as hereinbefore provided] to the reserve bank through
which they were originally issued, or they may be returned to such
bank for the credit of the United States. Federal reserve notes unfit
for circulation shall he retui'ned by the Federal reserve agents to the
Comptroller of the Currency for cancellation and destruction.
The Federal reserve board snail [have power, in its discretion, to]
require each Federal reserve [banxs] bank to maintain on deposit
in the Treasury of the United States a sum in gold [equal to five
per centum o f] mfficient in the judgment of the Secretary of the
Treasury for the redemption of [such amount o f] the Federal re
serve notes [as may be] issued to [them under the provisions of this
act] such bank but in no event less than five per centum; but such
[five per centum] deposit of gold shall be counted and included as
part of the thirty-three and one-third per centum reserve hereinbe
fore required. The [said] board shall [also] have the right, acting
through the Federal reserve agent, to grant in whole or in part
or to reject entirely the application of any Federal reserve
bank for Federal reserve notes; but to the extent [and in the
amount] that such application may be granted the Federal re
serve board shall, through its local Federal reserve agent [deposit]
supply Federal reserve notes [w ith] to the [banks] bank so apply
20306 0 — 58------ 15
64
BANKING AND CURRENCY.
ing, and such bank shall be charged with the amount of such notes
and shall pay such rate of interest on said amount as may be estab
lished by the Federal reserve board, [w hich rate shall not be less
than one-half o f one per centum per annum',] and the amount of such
Federal reserve notes so issued to any such bank shall, upon delivery,
become a first and paramount lien on all the assets o f such bank.
Any Federal reserve bank may at any time reduce its liability for
outstanding Federal reserve notes by [the deposit o f ] depositing,
with its Federal reserve agent, Federal reserve notes, [whether issued
to such bank or to some other reserve bank, or lawful money of the
United States,] gold certificates, or gold [bullion, with any Federal
reserve agent, or with the Treasurer o f the United States, and such
reduction shall be accompanied by a corresponding reduction in the
required reserve fund of lawful money set apart for the redemption
o f said notes and by the release of a corresponding amount o f the
collateral security deposited with the local Federal reserve agent].
The Federal reserve agent shall hold such gold certificates and
gold available for exchange for the outstanding Federal reserve notes
when offered by the reserve bank of which he is a director. Upon
the request of the Secretary of the Treasury the Federal reserve
board shall require the Federal reserve agent to transmit said gold
to the Treasury of th£ United States for the redemption of such
notes.
Any Federal reserve bank may at its discretion withdraw collateral
deposited with the local Federal reserve agent for the protection of
its Federal reserve notes deposited with it and shall at the same time
substitute therefor other like collateral of equal [va lu e] amount
approved by the Federal reserve agent under regulations to be pre
scribed by the Federal reserve board.
In order to furnish suitable notes for circulation as Federal re
serve notes, the Comptroller of the Currency shall, under the direc
tion of the Secretary of the Treasury, cause plates and dies to be
engraved in the best manner t• guard, against counterfeits and fraud
ulent alterations, and shall have printed therefrom and numbered
such quantities of such notes in blank of the denominations of $1. $2,
$6, $10, $20, $50, $100, as may be required to supply the Federal re
serve banks. Such notes shall be in form and tenor as directed by
the Secretaty of the Treasury under the provisions of this act and
shall bear the distinctive numbers of the several Federal reserve
banks through which they are issued.
When such notes have been prepared, they shall be d< posited in the
Treasury, or in the subtreasury or mint of the United States nearest
the place of business of each Federal reserve bank, a/nd shall be held
for the use of such bank subject to the order of the Comptroller of
the Currency for their delivery, as provided by this a r t .
The plates and dies to be procured by the Comptroller of the Cur
rency for the printing of such circulating notes shall remain under
his control and direction, and the expenses necessarily incurred in
executing the laws relating to the procuring of such notes, and all
other expenses incidental to their issue and, retirement, shall be paid
by the Federal reserve banks, and the Federal reserve board shall
include in its estimate of expenses levied against the Federal reserve
banks a sufficient amount to cover the expenses herein provided for.
BANKING AND CURRENCY.
55
The examination of plates, dies, bed pieces, and so forth , anrf
regulations relating to such examination of plates, die*, and so
forth , 0/ national-bank notes provided for in section fifty-one hun
dred arid seventy-four, Revised Statutes, is hereby extended to in
clude Federal reserve notes herein provided for .
Any appropriation heretofore made out of the general funds of
the Treasury for engraving plates and dies, the purchase of dis
tinctive paper, or to cover any other expense in connection with
the printing of national-bank notes or notes provided for by the
act o f May thirtieth, nineteen hundred and eight, and any distinctive
aper that may be on hand at the time of the passage of this act may
e used in the discretion of the Secretary for the purposes of this
act, and should the appropriations heretofore made be insufficient
to meet the requirements of this act in addition to circulating^ notes
provided, for by existing law, the Secretary is hereby authorized to
use so much of any funds in the Treasury not otherwise appropriated
for the purpose of furnishing the notes aforesaid: Provided, how
ever, That nothing in this section contained shall be construed as
exempting national banks or Federal reserve banks from their liabil
ity to reimburse the United States for any expenses incurred in print
ing and issuing circulating notes.
f
[ I t shall be the duty o f every Federal reserve bank to receive on
deposit, at par and without charge for exchange or collection, checks
and drafts drawn upon any o f its depositors or bv any of its depositors
upon any other depositor and checks and drafts drawn by any de
positor in any other Federal reserve bank upon funds to the credit
o f said depositor in said reserve bank last mentioned, nothing herein
contained to be construed as prohibiting member banks from mak
ing reasonable charges to cover actual expenses incurred in collecting
and remitting funds for their patrons.] .
Every Federal reserve bank shall receive on deposit from member
banks or from Federal reserve banks checks and drafts drawn upon
any of its depositors, and when remitted by a Federal reserve bank,
checks and drafts drawn by any depositor in any other Federal
reserve bank or number bank upon fluids to the credit of said de
positor in'said reserve bank or member bank. Nothing herein con
tained shall be constmcd as prohibiting a member bank from making
reasonable charges for checks and drafts so debited to its account, or
for collecting and remitting funds, or for exchange sold to its patrons.
The Federal reserve board may, by rule, fix the charges to be col
lected by the member banks from its patrons whose checks are
cleared through the Federal reserve bank and the charge rvhich may
be imposed for the service of clearing or collection rendered by the
Federal reserve bank.
The Federal reserve board shall make and promulgate from time
to time regulations governing the transfer o f funds [a t par] and
charges therefor among Federal reserve banks and their branches, and
may at its discretion exercise the functions o f a clearing house for
such Federal reserve banks, or may designate a Federal reserve bank
to exercise such functions, and may also require each such bank to
exercise the functions o f a clearing house for its member banks.
S e c . 18. That so much o f the provisions o f section liftv-one hun
dred and fifty-nine o f the Revised Statutes of the United States, and
section four of the act o f June twentieth, eighteen hundred and
56
BANKING AND CUBBENCY.
seven ty-four, and section eight o f the act o f J u ly tw elfth , eighteen
hundred and eigh ty-tw o, and o f any other provision s o f existin g stat
utes, as require that b efore any national banking association shall be
authorized to com m ence ban k in g business it shall tran sfer and de
liver to the Treasurer o f the U nited States a stated am ount o f U nited
States registered bonds be, and the same is hereby, repealed.
R E F U N D IN G
BO NDS.
[ S e c . 19. That upon application the Secretary o f the Treasury
shall exchange the two per centum bonds of the United States bear
ing the circulation privilege deposited by any national banking asso
ciation with the Treasurer of the United States as security for cir
culating notes for three per centum bonds o f the United States
without the circulation privilege, payable after twenty years from
date of issue, and exempt from Federal, State, and municipal taxation
both as to income and principal. No national bank shall, in any one
year, present two per centum bonds for exchange in the manner here
inbefore provided to an amount exceeding five per centum o f the total
amount of bonds on deposit with the Treasurer by said bank for cir
culation purposes. Should any national bank fail in any one year to
so exchange its full quota of two per centum bonds under the terms
of this act. the Secretary of the Treasury may permit any other
national bank or banks to exchange bonds in excess of the five per
centum aforesaid in an amount equal to the deficiency caused by the
failure of any one or more banks to make exchange in any one year,
allotment to be made to applying banks in proportion to their hold
ings of bonds. At the expiration of twenty years from the passage
of this act every holder of United States two per centunl bonds then
outstanding shall receive payment at par and accrued interest. After
twenty years from the date o f the passage of this act national bank
notes ill remaining outstanding shall be recalled and redeemed by
the national banking associations issuing the same within a period
and under regulations to be prescribed by the Federal reserve board,
and notes still remaining in circulation at the end of such period shall
be secured by an equal amount o f lawful money to be deposited in the
Treasury of the United States by the banking associations originally
issuing such notes. Meanwhile every national bank may continue to
apply for and receive circulating notes from the Comptroller o f the
Currency based up*n the deposit of two per centum bonds or o f any
other bonds hearing the circulation privilege; but no national bank
shall be permitted to issue other circulating notes except such as are
secured as in this section provided or to issue or to make use o f any
substitute for such circulating notes in the form of clearing-house
loan certificates, cashier's checks, or other obligation.]
Sec. 10. Upon application by a Federal reserve bank the Secretary
of the rTr< usury shall, for the account of such bank, assume the rederupt ion of circulating notes of any national bank requesting the
same and surrendering in writing the two per centum bonds held in
trust by the Treasurer of the United States as security for its circula
tion. Such two per centum bonds shall, at the ovtion of such Federal
reserve bank, be reissued by the Secretary of tne Treasury as bonds
bearing three per centum interest, due July first, nineteen hundred
and thirty-three, or as one-year notes renewable from year to year
BANKING AND CURRENCY.
57
until July first, nineteen hundred and thirty-three, and bearing in
terest at the rate of three per centum per annum. The amount o f
the redemption of such notes shall not exceed $36,000,000 per annum
and shall be apportioned pro rata among the national banks apply
ing fo r such redemption at the end of ewch quarterly period of any
fiscal year. The circxdating notes of any national bank, the redemp
tion of which is so. assumed, shall%when delivered to the Treasury
for redemption, be canceled and redeemed out of funds to be furnished
the Secretary of the Treasury by the Federal reserve bank making
the application aforesaid; and the Federal reserve board shall there
upon deliver to the Federal reserve bank an equal amount of Federal
reserve notes without interest or penalty of any kind, and the two per
Centura bonds aforesaid, oi%the three per centum bonds or notes issued
in lieu thereof, shall be held in trust for such Federal reserve bank
by the Treasurer of the United States as security for the redemption
of such notes.
BANK RESERVES.
[ S e c . 2 0 . T h a t from and a fter the date when the Secretary o f the
Treasury shall have officially announced, in such manner as he m ay
elect, the fact that a Federal reserve bank has been established in any
designated district, every banking association within said district
w hich shall have subscribed fo r stock in such Federal reserve bank
shall be required to establish and maintain reserves as fo llo w s :
(a ) I f a country bank as defined by existing law, it shall hold and
maintain a reserve equal to twelve per centum o f the vaggregate
amount o f its deposits, not including savings deposits h erein after
provided for. F ive-tw elfth s o f such reserve shall consist o f m oney
w hich national banks may under existing law count as legal reserve,
held actually in the bank’s own vaults; and fo r a p e rio d o f fourteen
months from the date aforesaid at least three-tw eliths and thereafter
at least five-tw elfths o f such reserve shall consist o f a credit balance
with the Federal reserve bank o f its district. T h e rem ainder o f the
twelve per centum reserve hereinbefore required may, fo r a period o f
thirty-six months from^and after, the date fixed bv the Secretary o f
the Treasury as hereinbefore p rovid ed, consist o f balances due irom
national banks in reserve or central reserve cities as now defined b y
law. F rom and a fter a date th irty-six months subsequent to the date
fixed by the Secretary o f the Treasury as hereinbefore provided the
said rem ainder o f the twelve per centum reserve required o f each
country bank shall consist either in w hole or in part o f reserve m oney
in the bank’s ow n vaults or o f credit balance with the Federal reserve
bank o f its district.
(b ) I f a reserve city bank as defined by existing lawT, it shall h old
and m aintain, fo r a period o f sixty days from the date fixed by the
Secretary o f the Treasury as hereinbefore p rovided, a reserve equal
to twenty per centum o f the aggregate amount o f its deposits, n ot
inclu din g sayings deposits hereinafter provid ed fo r , and perm anently
thereafter eighteen per centum. A t least on e-h a lf o f such reserve
shall consist o f m oney which national banks m ay under existin g law
count as legal reserve, held actually in the bank’s ow n vaults. A ft e r
sixty days from the date aforesaid, and fo r a period o f one year, at
least three-eighteenths and perm anently thereafter at least five-
58
BANKING AND CUBRENCY.
eighteenths o f such reserve shall consist o f a cred it balance w ith the
F ederal reserve bank o f its district. T h e rem ainder o f the reserve
in this paragraph required m ay, f o r a period o f th irty-six m onths
fro m and a fter the date fixed by the Secretary o f the T reasu ry as
herein before p rovid ed , consist o f balances due fro m national banks
in central reserve cities as now defined by law. F rom and a fter a
date th irty-six months subsequent to the date fixed by the Secre
tary o f the T reasury as h erein oefore p rovid ed, the said rem ainder o f
the eighteen p er centum reserve required o f each reserve city bank
shall consist either in w hole o r in p art o f reserve m oney in the ban k ’s
ow n vaults or o f credit balance with the F ederal reserve bank o f its
district.
(c)
I f a central reserve city bank as defined by existin g law , it
shall h old and m aintain fo r a period o f sixty days fro m the date
fixed b y the Secretary o f the Treasury as hereinbefore p rov id ed a
reserve equal to twenty per centum o f the aggregate am ount o f its
deposits, n ot in clu d in g savings deposits hereinafter p rovid ed fo r, and
perm anently thereafter eighteen per centum. A t least on e -h a lf o f
such reserve shall consist o f m oney w hich national banks m ay under
existin g law count as legal reserve, held actually in the bank’s ow n
vaults. A ft e r sixty days from the date aforesaid, and th ereafter f o r
a p eriod o f one year, at least three-eighteenths and perm anently
thereafter at least five-eighteenths o f such reserve shall consist o f a
credit balance with the Federal reserve bank o f its district. T h e
rem ainder o f the eighteen per centum reserve required o f each cen
tral reserve city bank shall consist either in w hole or in p art o f
reserve m oney actually held in its ow n vaults o r o f cre d it balance
with the Federal reserve bank o f its district.J
Sec. 20. Demand liabilities within the meaning of this act shall
comprise all liabilities maturing within thirty days, and time depos
its shall comprise all deposits payable after thirty days.
When the Secretary of the Treasury shall hare officially an
nounced* in such manner as he may elect, the establishment of a Fed
eral reserve bank in any district\ every subscribing member bank shall
establish and, maintain reserves as follou's:
(а) A bank not in a reserve or central reserve city as now or here
after defined shall hold and maintain reserves equal, to twelve per
centum of the aggregate amount of its demand liabilities and five per
centum, of its time deposits, as follows:
In its vaults for a period of thirty-six months after said date fourtwelfths thereof.
In the Federal reserve bank for a period of fourteen months after
said date two-twelfths, and permanently thereafter five-twelfths.
For a period of thirty-six months after said date the balance of
the reserves may be held in its own vaults, or in the Federal reserve
bank, or in banks in reserve or control reserve city banks as now
defined by law.
After said thirty-six months’ period said reserves, other than those
hereinbefore required to be held in the reserve bank, shall be held, in
the vaults of the member bank or in the Federal reserve bank, or in
both%at Us option.
(б ) A bank in a reserve city , as now or hereafter defined, shall hold
and maintain reserves equal to eighteen per centum of the aggregate
BANKING
a
ND
CUBBBNOY.
59
amount of its demand liabilities and five per centum of its time depos
its, as follows:
In its vaults six-eighteenths thereof.
In the Federal^ reserve bank for a period of fourteen months after
the date aforesaid at least three-eighteenths and permanently there
after six-eighteenths of said reserve.
For a period of thirty-six months after said date the balance of
said reserves shall be held in its vaults, in the Federal reserve bank,
or in central reserve city banks as now defined by law.
After said thirty-six months’ period all of said reserves, except
those hereinbefore required to be held permanently in the Federal
reserve bank, shall be held in its vaults or in the Federal reserve bank,
or in both, at its option.
(<?) A bank in a central reserve city as now or hereafter defined
shall hold and maintain a reserve equal to eighteen per centum of the
aggregate amount of its demand liabilities and five per centum of its
time deposits, as follows:
In its vaults six-eighteenths thereof.
In the Federal reserve bank for a period of fourteen months after
the date aforesaid at least three-eighteenths, and permanently there
after six-eighteenths.
For a period of thirty-six months after said date the balance of
said reserves shall be held in its own vaults or in the Federal reserve
bank at its option.
After said thirty-six months’ period all of said reserves, except
those herein permanently required to be held in the Federal reserve
bank, shall be held in its own vaults or in the Federal reserve bank,
or both, at its option.
Any Federal reserve bank may receive from the member banks as
reserves, not exceeding one-half of said installment thereof, eligible
discounted paper properly indorsed and acceptable to the said reserve
bank.
If a State bank or trust company is required by the laws of its
State to keep its reserves either in its own vaults or with another
State bank or trust company, such reserve deposits so kept in such
State bank or trust company shall be construed, within the meaning
of this section, as if they were reserve deposits in a national bank
in a reserve or central reserve city for a period of three years after
the Secretary of tJie Treasury shall have officially announced the
establishment of a Federal reserve bank in the district in which such
Stale bank or trust company is situate. Except as thus provided
no member bank shall keep on deposit with any nonmember bank a
sum in excess of ten per centum of its own paid-up capital and sur
plus. No member bank shall extend directly or indirectly the benefits
of this system to a nonmember bank, except upon written permis
sion of the Feder'al reserve board, under penalty of suspension.
The reserve carried by a member bank with a Federal reserve bank
may, under the regulations and subject to such penalties as may be
prescribed by the Federal reserve board, be checked against and
withdrawn by such member bank for the purpose of meeting existing
liabilities: Provided, however, That no bank shall at any time make
new loans or shall pay any dividends unless and until the total reserve
required by law is fully restored.
60
BANKING AND CURRENCY.
S ec . 21. [ T h a t s o ] So m uch o f sections tw o and three o f th e act
o f J u n e tw entieth, eighteen hundred and seven ty-fou r, en titled “ A n
act fix in g the am ount o f U nited States notes, p ro v id in g f o r a redis
trib u tion o f the national bank cu rren cy, and f o r oth er purposes,”
as p rovid es that the fu n d deposited by any n ational b a n k in g asso
ciation w ith the Treasurer o f the U nited States f o r the redem ption
o f its notes shall be counted as a part o f its la w fu l reserve as p r o
vided in the act a foresa id , be, and the same is hereby, repealed.
A n d fro m and a fte r the passage o f this act such fu n d " o f five p er
centum shall in n o case be counted b y any n ation al b an k in g asso
cia tion as a part o f its la w fu l reserve.
S ec . 2 2 . [ T h a t every F ederal reserve b a n k ] In addition to the
reserve required against the Federal reserve notes emitted by a
Federal reserve bank\ it shall (Tat all times have on h a n d ] maintain
in its ow n vaults, in g o ld , o r la w fu l m oney other than Federal re
serve notes, a sum [e q u a l t o ] not less than th irty-th ree and o n e-th ird
per centum o f its outstandin g dem and liabilities other than its Federal riser re notes.
T h e Federal reserve board m ay n o tify any F ederal reserve bank
whose la w fu l reserve shall be below the am ount required to be [ k e p t
on h a n d ] maintained, to make g o o d .s u ch reserve; and i f such l>ank
shall fa il f o r th irty days th ereafter so' to m ake g o o d its la w fu l re
serve, the Federal reserve board m ay [a p p o in t a receiver to w in d u p
the business o f said b a n k ] suspend and take possession of such re
serve bank and administer the same during the period of suspension.
BANK EXAMINATIONS.
S ec . 2 3 . [ T h a t the exam ination o f the affairs o f every nation al
ban k in g association authorized b y existin g la w ] Every member
bank shall [ta k e p la c e ] be examined by the Comptroller of the Cur
rency at least tw ice in each calendar year and as m uch often er as the
F ed eral reserve board shall con sider necessary [ , in ord er to fu rn ish
a fjull and com plete know ledge o f its co n d it io n ], [ T h e S ecretary o f
the T r e a s u r y ] The Federal reserve board may authorize examina
tions by the State authorities to be accepted in the case of State banks
and trust companies and m ay [ , h o w e v e r ,] at any tim e d irect the
h o ld in g o f a special exam ination. T h e person
assigned to t h e ]
m a k in g [ o f s u c n ] the exam ination [ o f the affairs o f any [n a tio n a l
b an k in g a ss o cia tio n ] member bank shall have p o w e r to ca ll together
a quorum o f the d irectors o f such [a s s o c ia tio n ] bank, w h o shall,
u n aer oath , state to such exam iner the ch aracter and circum stances,
o f such o f its loans or discounts as he m ay 'designate [ ; and fro m
and a fte r the passage o f this act all bank exam iners shall receive
fixed salaries, the am ount w h ereof shall be determ ined b y th e ].
The F ed era l reserve board shall fix the salaries of all bank examiners
and [a n n u a lly r e p o r te d ] make report thereof to C ongress. [ B u t
t h e ] The expense o f the exam inations herein p ro v id e d f o r shall be
assessed b v authority of the F ederal reserve board u pon the [a s s o
c ia tio n s ] banks exam ined in p rop ortion to assets o r resources held
b y such [a s s o c ia tio n s ] banks upon [ a date d u rin g the yea r in w h ich
such exam inations are held to be established b y the F ed era l reserve
board. T h e C om p troller o f the C u rrency shall so arrange the duties
J
BANKING AND CURRENCY.
61
o f national-bank examiners that no two successive examinations o f
any association shall be made by the same examiner] the dates when
the various banks are examined.
In addition to the examinations made and conducted by the Comp
troller of the Currency, every Federal reserve bank may, with the
approval o f the Federal reserve agent or of the Federal reserve
board, [arrange] provide for special [o r periodical] examination of
[t h e ] member banks within its district. Such examination shall be
so conducted as to inform the Federal reserve bank under whose
auspices it is carried on of the condition of its member banks and of
the lines o f credit which are being extended by them. Every Federal
reserve bank shall at all times furnish to the Federal reserve board
such information as may be demanded bv the latter concerning the
condition o f any [national bank located] member bank within the
district o f the said Federal reserve bank.
No association shall be subject to any visitor!al powers other than
such as are authorized by lair, or vested in the courts of justice, or
such as shall be or shall hare been exercised or directed by Congress,
or either House thereof, or any committee thereof.
[T h e Federal reserve board shall as often as it deems best, and in
any case not less frequently than four times each year, order an ex
amination of national banking associations in reserve cities. Such
examinations shall show in detail the total amount of loans made by
each bank on demand, on time, and the different classes of collateral
held to protect the various loans, and the lines of credit which are
being extended by them.] The Federal reserve board shall, at least
once each year, order an examination of each Federal reserve bank,
4jnd upon joint application of ten member banks the Federal re
serve boaixl shall order a special examination and report of the con
dition o f any Federal reserve bank.
S ec. 24. [T hat no national] No inember bank or any officer, di
rector , or employee thereof shall hereafter make any loan or grant
any gratuity to any examiner of such bank. Anv bank officer. director, or employee thereof [offending against] violating this provision
shall be deemed guilty of a misdemeanor and shall be imprisoned not
exceeding one year or fined not more than $5,000, or both; and fined
a further sum equal to the money so loaned or gratuity given [ ; and
the officer or officers of a bank making such loan or granting such
gratuity shall be likewise deemed guilty of a misdemeanor and each
shall be fined not to exceed $5,000]: Any examiner accepting a loan
or gratuity from any bank examined by liim or from an officer, direc
tor *or employee thereof shall be deemed guilty of a misdemeanor and
shall be imprisoned not c,receding one year or fined not more than
$5,000, or both; and fined a further sum equal to the money so loaned
or gratuity given; and shall forever thereafter be disqualified from
holding office as a national-bank examiner. No national-bank ex
aminer shall perform, any other service for compensation [w hile
holding such office] for any bank or officer, director,
employee
thereof.
[N o officer or director of a national bank shall receive or be bene
ficiary, either directly or indirectly, o f any fee (other than a legiti
mate fee paid an attorney at law for legal services), commission, gift,
or other consideration for or on account o f any loan, purchase, sale*
62
iiANKING AND CURRENCY.
payment, exchange, or transaction with respect to stocks, bonds, or
other investment securities or notes, bills o f exchange, acceptances,
bankers' bills, cable transfers or mortgages made by or 011 behalf o f
a national bank o f which he is such officer or director.] Other then
the usual salary or directors fee paid to any officer, director. or em
ployee of a member bank and other than a reasonable fee paid to such
officer, director, or employee acting as an attorney at law for legal
services rendered to such banlc, no officer, director, employee, or
attorney of a member bank shall be a beneficiary of or receive,
directly or indirectly, any fee , commission, gift, or other considera
tion for or in connection with any transaction or business of the
bank. No examiner, public or private, shall disclose the names of
bori'owers or the collateral for loans of a member bank to other than
the proper officers of such bank without first having obtained the ex
press permission in writing from the Comptroller of the Currency,
except when ordered to do so by a court of competent jurisdiction, or
by direction of the Congress of the Untied States, or either House
thereof, or any committee thereof. Any person violating any pro
v ision o f this section shall be punished bv a fine o f not exceeding
$5,000 or by imprisonment not exceeding [five years] one year, or
both [such fine and imprisonment, in the discretion o f the court hav
ing jurisdiction].
ISxcept so fa r as already provid ed in existin g law s this p ro v isio n
shall not take effect until [ * ix m o n th s ] sixty days a fte r the passage
o f this net.
S ec. !>.*>. [That from and after the passage o f this act th e] The
stockholders o f every [national banking association] member bank
shall be held individually responsible for all contracts, debts, and en
gagements o f such [association] bank, each to the amount o f his
stock therein, at the par value thereof in addition to the amount in
vested in such stock. The stockholders in any [national banking
association] member bank who shall have transferred their shares or
registered the transfer thereof within sixty days next before the
date o f the failure o f such [association] bank to meet its obligations,
or with knowledge of such impending failure. shall be liable to the
same extent as if they had made no such transfer, to the extent that
the subsctfttf nt transferee fails to meet such liability ; but this pro
vision shall not be construed to affect in any way any recourse which
such shareholders might otherwise* have against those in whose names
such shares are registered at the time o f such failure. [Section fiftyone hundred and fifty-one. Revised Statutes of the United States, is
hereby reenacted except in so far as modified by this section.]
LOANS ON FARM LANDS.
S ec. 2<l. CThat a n y ] Any national b an k in g association not situ
ated in a reserve rity o r central reserve citv m ay m ake loans secured
by im proved and unencum bered fa rm land, situated within its Fed
eral reserve district, but no such loan shall be m ade f o r a lo n g e r tim e
than [twelve m o n th s ] five years, n or f o r an am ount exceed in g fifty
centum o f the actual value o f the property offered as security
1>er
", and such property shall be situated within the Federal reserve dis
trict in which the bank is located].
Any such bank may make such
BANKING AND CURRENCY.
63
loans in an aggregate sum equal to twenty-five per centum o f its
capital and surplus.
The Federal reserve board shall have power from time to time to
add to the list o f cities in which national banks shall not be permit
ted to make loans secured upon real estate in the manner described
in this section.
[SAVINGS DEPARTMENT.]
[ S e c . 27. That any national banking association may, subsequent
to a date one year after the organization of the Federal reserve board,
make application to the Comptroller of the Currency for permission
to open a savings department. Such application shall set forth that
the directors o f said national bank have by a majority vote appor
tioned a specified percentage o f their paid-in capital and surplus to
said savings department, and to that end have segregated specified
assets for the uses of said department, or that cash capital for the
said sayings department has been,obtained by subscription to addi
tional issues o f the capital stock o f said national bank: Provided,
That the capital thus set apart for the uses o f the proposed savings
department aforesaid shall in no case be less than $15,000, or than a
sum equal to twenty per centum o f the paid-up capital and surplus
o f the said national bank.
In m aking the application aforesaid any national banking associ
ation may further apply fo r power to act as trustee for mortgage
loans subject to the conditions and limitations herein prescribed or
to be established as hereinafter provided.
Whenever the Comptroller o f the Currency shall have approved
any such application as hereinbefore provided, he shall so inform
the applying bank, and thereafter it shall be authorized to receive
savings deposits as so defined, and the organization and business con
ducted or possessed bv said bank at the time o f making said applica
tion. except such as has been specifically segregated for the savings
department, and subsequent expansions thereof shall be known as
the commercial department o f the said bank. The said departments
shall, to all intents and purposes, be separate and distinct institu
tions save and except as hereinafter expressly provided. The capital,
surplus, deposits, securities, investments, and other property, effects,
and assets o f each o f said departments shall, in no event, be mingled
with those o f the other department, or used, either in whole or in
part, to pay any o f the deposits o f the other department until all
o f the deposits o f its own department have been fully paid and satis
fied. National banks may increase or diminish their capital stock in
the manner now provided by law, but whenever such general increase
or reduction o f the capital stock o f any national bank operating upon
the provisions o f this section shall be made such increase or reduc
tion shall be apportioned between the commercial and savings de
partments o f the said bank as its board o f directors shall prescribe,
notice o f such increase or reduction, and o f the apportionment
thereof, being forthwith given to the Com ptroller o f the Currency;
and any such national bank may increase or diminish the capital
already apportioned to either its savings or commercial department
to an extent not inconsistent with the provisions o f this section,
64
BANKING AND CUBBBNOY.
notifying the Comptroller o f the Currency as hereinbefore provided.
The savings department for which authority has been solicited and
granted shall have control o f the cash or assets apportioned to it
as hereinbefore provided, and shall be organized under rules and
regulations to be prescribed by the Comptroller o f the Currency.
Iioth the savings and commercial departments so created shall,
however, be under the control and direction o f a single board o f
directors and o f the general officers o f said bank.
All business transacted by the commercial department o f any such
national bank shall be in every respect subject to the limitations and
requirements provided in the national banking act as modified by
this act. and such business shall henceforward be known as commer
cial business.
The savings department o f each such national bank shall be author
ized to accumulate and loan the funds o f its depositors, to receive
deposits o f current funds, to purchase securities authorized by the
Federal reserve board, to loan any funds in its possession upon real
estate or other authorized security, and to collect the same with
interest, and to declare and pay dividends or interest upon its de
posits. The Federal reserve board is hereby authorized to exempt
the savings departments o f national banking associations from any
and every restriction upon classes or kinds o f business laid down in
the national banking act, and it shall be the duty o f the said board
within one vear after its organization to prepare and publish rules
and regulations for the conduct o f business by such savings depart
ments. The said regulations shall require every national bank which
shall conduct a savings department and a commercial department to
segregate in its owA vaults the cash and assets belonging to such
departments, respectively, and shall prescribe the general forms o f
separate books o f account to be used by each such department for its
exclusive and individual u*e. The regulations aforesaid shall further
specify the period o f notice for the withdrawal o f deposits made in
tne said savings department and shall forbid the acceptance o f de
posits by one department o f such national bank from the other de
partment o f such bank. The Federal reserve board shall make and
publish at its discretion lists o f securities, paper, bonds, and other
forms o f investment, which the saving departments of national banks
shall be authorized to buy or loan upon: and said lists need not be
uniform throughout the United States, but shall be adapted to the
conditions of business in different sections o f the country.
It shall be the duty of every national bank to maintain, with re
spect to all deposit liabilities of its savings department, a reserve in
money which may under existing law be counted as reserve, equal
to not less than five |>er centum of the total deposit liabilities o f
such department, and every national bank authorized to maintain
a savings department i* hereby exempted from the reserve require
ments o f the national banking act and o f this act in respect to the
said deposit liabilities o f its savings department, except as in this
section provided. Every regulation made in pursuance o f this sec
tion shall be duly publi>hed. and also posted in every member bank
having a savings department.
Every officer, director, or employee of any member bank who shall
knowingly or willfully violate any o f the provisions o f this section.
BANKING AND CURRENCY.
65
or any of the regulations o f the Federal reserve board, or of the
Comptroller o f the Currency, made under and by virtue of the pro
visions of this section, shall be guilty o f a felony, and on conviction
thereof shall be punished by a fine not exceeding $5,000 or by im
prisonment not exceeding two years, or both, in the discretion of the
court.]
FOREIGN BRANCHES.
Sec. 28. That any national banking association possessing a capi
tal and surplus o f $1,000,000 or more may file application with the
Federal reserve board, upon such conditions and under such cir
cumstances as may be prescribed by the said board, for the purpose
o f securing authority to establish branches in foreign countries or
dependencies of the United States for the furtherance of the foreign
commerce o f tne United States and to act, if required to do so, as
fiscal agents o f the United States. Such application shall specify,
in addition to the name and capital o f the banking association filing
it, the [foreign country or countries or the dependencies of the
United States] place or places where the banking operations pro
posed are to be carried.on and the amount o f capital set aside by the
said banking association filing such application for the conduct o f
its foreign business at the branches proposed by it to be established
in [foreign countries] such place or places. The Federal reserve
board shall have power to approve or to reject such application if, in
its judgment, the amount 0 1 capital proposed to be set aside for the
conduct o f foreign business is inadequate or if for other reasons the
granting o f such application is deemed inexpedient.
Every national banking association which shall receive authority
to establish foreign branches [in foreign countries] shall be required
at all times to furnish information concerning the condition of such
branches as the Comptroller of the Currency upon demand, and the
Federal reserve board may order special examinations of the said
foreign branches at such time or times as it may deem best. 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 o f its home office, and shall at the end
o f each fiscal period transfer to its general ledger the profit or loss
accruing at each [su ch ] branch as a separate item.
Sec. 29. rThat a ll] All provisions of law inconsistent with or
superseded by any of the provisions o f this act [be, and the same are]
are to that extent and to that extent only hereby[,] repealed[: Pro
vided, That nothing]. Nothing in this act contained shall be con
strued to repeal the parity provision or provisions contained in an
act approved March fourteenth, nineteen hundred, entitled 44An act
to define and fix the standard o f value, to maintain the parity of all
forms o f money issued or coined by the United States, to refund the
public debt, and for other purposes,” and the Secretary of the Treas
ury may for such purposes, or to strengthen the gold reserve, borrow
gold on the security of United States bonds or for one-year notes
bearing interest at a rate of not to exceed three ver centum per an
num, or sell the same if necessary to obtain gold. When the funds
66
BANKING AND CURBENCY.
of the Treasury on hand justify, he may purchase and retire such
outstanding bonds and notes.
Sec. S9a. The provisions of the act of May thirtieth, nineteen hun
dred and eight, authorizing national currency associations, the issue
of additional national-bank circulation, and creating a National
Monetary Commission, which expires by limitation under the terms
of such act on the thirtieth day of June, nineteen hundred and four
teen, are hereby extended to December thirty-first, nineteen hundred
and fourteen, and sections fifty-one hundred and fifty-three, fifty-one
hundred and seventy-two fifty-one hundred and ninety-one, and
fifty-two hundred and fourteen of the Revised Statutes of the united
States, which were amended by the act of May twentieth, nineteen
hundred and eight, are hereby reenacted to read as such sections read
prior to May twentieth, nineteen hundred and eight subject to such
amendments or modifications as are prescribed in this act.
,
,
Sbo. 80. That the right to amend, alter, or repeal this act is hereby
expressly reserved.
Aggregate resources and liabilities of national banks, 1908 to 1912.
1906 (July 15).
I
1909 (Apr. 28). j 1910 (June 30).
1911 (June 7).
1912 (June 14).
7,277 banks.
7,372 banks.
Classification.
6,824 banks.
6,893 banks.
7,145 banks.
RESOURCES.
1 oana on real es
tate.......................
$67,070,962.46......................
$65,112,003.29
$74,831,997.2$
Loans on other col
lateral security. . i $1,990,152,632.00 1,939,431,702.85 $2,050,590,293.00 2,004,993,992.88 2,135,767,904.3#
Other loans and
discounts.............
2,625,522,899.59 2,966,608,204.24^3,379,568,893.75 3,540,732,790.84 3,743,304,530.1$
Overdrafts..............
24,705,023.68
23,397,257.78
19,849,391.66
24,584,065.22
25,743,314.27
U n i t e d St at es
bonds...................
732,599,187.16; 740,167,972.67 748,797,808.97
754,744,891.34
783,497,976.72
State, oountv, and
municipal Donds.
* 179,384,137.05, 156,012,965.93 * 161,998,193.97
176,284,278.64
210,426,073.3$
Railroad b o n d s
and stocks...........
* 507,425,613.60 351,371,063.96 298,692,105.00
384,321,275.41
361,221,071.31
Bank stocks...........
Bonds of other
public-service
corporations.......
148,643,966.78 153,025,132.00
196,707,106.26
182.297.622.00
O th er stocks,
bonds, etc...........
153,305,600.23 208,165,517.21 249,447,101.58
287,328,644.09
287.840.448.00
Due from other
b anks and
1,104,458,684.94 1,232,556,106.45 1,201,606,823.38 1,376,785,821.33 1,424,091,680.31
bankers...............
Real estate, furni
ture, e t c ...........
198,279,190.33 216,966,786.14 236,463,370.67
266,626,008.79
263,009,304.09
Checks and other
cash items.........
296,215,400.39
271,464,243.39 338,333,768.51 482,805,231.42
317.477.121.00
996,142,823.46
Cash on hand.......
889,213,394.43 926,776,902.82 866,462,856.21
998,061,441.06
44,664,163.0$
Other resources___
62,593,847.89
41,090,650.76
37,553,793.69
42,433,572.51
Total...........
8,714,064,400.00 9,368,883,843.13|9,896,624,696.73110,383,048,694.31 10,861,763,877.16
LIABILITIES.
Capital stock
919,100,850.00 933,979,903. CO 989,567,114.00 1,019,633,152.25 1,033,570,675.00
693,990,419.06
671,946,796.68
564,045,022.80 587,132,286.31 644,857,482.82
Surplus fund..........
Other undivided
256,837,096.57
241,554,106.09
184,656,57& 85 207,944,821.08 216,546,125.10
profits..................
1,622,660.16
1,851,823.47
2,849,822.39
1,130,750.07j
15,144,463.48
Dividends unpaid.
I n d i v i d u a l de
4,374,551,208.33 4,826,060,384.38|5,287,216,312.20 5,477,991,156.45 5,825,461,163.36
posits...................
United States de
58,945,980.66
48,455,641.64
130,266,023.63
70,401,818.99!
54,541,349.41
posits «................. I
Due to other banks
and bankers........ j 1,822,853,669.00 2,036,753,287. 4711,900,135,622.01 2,147,440,999.04 2,178,163,418.11
813,172,666.21
774,175,018.79
715,741,227.09 705,480,591.83! 788,616,227.71
Other liabilities___
Total,...........
8,714,064,400.09 9,368,883,843.1319,896,624,696.73 10,383,048,694.31 10,861,763,877.16
i Classification as of September call.
* Includes State, etc., and railway bonds held by Treasurer of United States to secure public deposits.
> Includes bonds of other corporations.
« Includes deposits of United States disbursing officers.
Note.—For consolidated statement of all banks, see text of this report.
67
68
BANKING AND CUBRENCY.
Aggregate resources and liabilities of State banks from 1908 to 191M.
1906
1909
11,MO banks.
11,319 banks.
1910
1911
1912
12,664 banks.
13,361 banks.
CiaBttottlon.
12,166 banks.
BStOUBGBS.
Loins on m l estate........ 1188,358,186 $414,620,660.12 $472,428,486.63 $469,660,662.27 $672,934,870.29
L oom on otter collateral
security......................
137,270,669 669,690,467.10 694,419,426.26 606,377,469.16 663,942,284.11
Other loons anddisoounts. 2,090,944,681 1,112,841,061.34 1,306,646,666.62 1,311,064,107.63 1,379,686,928.04
Ovwdnfts.....................
29,447,901
34,316,874.»
30,972.194.67
32,860,006.94
32,322,218.37
United 8totes bonds.......
2,888,614
2,050,780.00
6,221,710.94
4,330,639.47
2,846,777.60
Bto^ooungr, oad munio»
3,729,479
66,682,211.21
81,967,470.66
63,952,194.59
66,096,142.18
Railroad bonds and stock
2,698,260 76,0)6,949.01
69,343,006.36 75,763,869.86
71,649,647.21
Bonk stocks...... ............
184,386
Bonds of other public
60,977,866.08 44,484,912.86
service corporations.....
63,609,977.26
62,742,067.88
96,892,443.89 123.793.906.69 129,109,896.01 130,339,491.96
Other stocks, bonds, etc.. 492,936,633
Due from other bonks and
bonkers....................... 649,297,601 491,961,366.43 486,361,866.14 525,822,785.89 630,161,901.29
Reel estate, furniture, etc. 136,146,988 119,702,242.64 130,641,382.91 136,115,689.73 138,428,767.36
Gheoks and other cash
76,096,440.72 106,187,734.96
71.261,438
77,865,345.68
77,762,380.62
Hems..........................
308,736,342 227,039,134.90 240,680,836.12 236,662,497.38 241,766,724.46
Cash on hand.................
10,180,096.61
Other resources..............
28,764,607
22.892.480.69
17,364,546.x 18,550,760.18
Total.................... 4,032,638,485 3,338,669,134.19 3,604,968,766.81 3,747,786,296.35 3,897,770,826.71
LIABILITIES.
Capital stock.................. 602,613,303 416,069,900.00 436.822.833.68 452,944,684.44 459,067,206.61
Surplus fund.................. 217,112,086 162,639,306.36 187,571,006.45 170,566,937.42 271,373,944.18
66,678,941.67
86,603,972 91,213,767.67
Other undivided profits..
92,786,739.26
1,039,492.86
2 441,796.41
682,749
1,236,652.15 ........829,045*46
Dividends unpaid...........
Individual deposits........ 2,937,129,698 2,466,968,666.76 2,727,826,966.08 2,777,566,836.81 2,919,977,897.99
Due to other banks and
207,432,967 168,968,649.87 129,768,627.00i| 144,578,103.41 142,644,643.99
bankers......................
61,799,462.77 146.748.676.68lj 108,106,343.86 103,878,088.34
81,263,791
Other liabilities..............
Total................... 4,032,636,485|3,338,669,134.19 3,694,968,766.81 j3,747,786,296.3fi 3,897,770,826.71
Aggregate resources and liabilities of savings banks (mutual and stock savings)
from 1907-8 to 1912.
ClaHifloation.
1907-8
1909
1910
1911
1912
1,453 banks.
1,703 banks.
1,759 banks.
1,884 banks.
1,922 banks.
mxsouacxs.
Loans on real estate........... $1,440,061,603 $1,620,131,445.62 $1,832,097,713.03 $1,963,906,841.51 $2,067,677,677.90
Loons on other ooUateral
security
66,624,786 232,893,152.82 226,704,806.91 205,912,380.77 240,472,906.77
Other loons and disoounts. 364,362,059 177,977,483.04 233,707,955.82 243,857,140.37 259,374,577.22
Overdrafts............................
1,050,343
1,906,951.03
2,266,509.26
1,978,070.99
1,595,816.33
United 8tatee bonds.........
13,860,645
43,566,428.18 32,082,745.00 13,226,534.10
29,031,138.46
State, oounty, and munic
ipal bonds........................ 587,156,390 710,159,643.86 743,463,260.89 779,927,236.80 776,431,140.75
618,193,416 769,980,508.90 783,704,137.70 792,998,933.33 794,083,006.66
Railroad bonds and stocks
Bank stocks.........................
24,266,271
Bonds of other publio
96,554,513.65 120,134,242.69 101,139,974.97 143,565,265.60
service corporations.......
93,009,919.88 117,727,439.77 161,976,217.67 179,809,612.84
343,466,167
Other stocks, bonds, etc. .
Due from other banks and
163,616,708 218,477,832.87 214,327,121.92 242,389,433.46 258,280,430.86
bonkers.............................
57,010,988
Real estate, furniture, e tc .
68,123,675.81
75,866,650.82
73,955,091.77
80,830,846.66
Checks and other eash
3,944,728.46
779,228
5,39!', 201.49
4,552,812.46
4,594,881.48
items..................................
43,483,533
32,697,021.94
50,880,340.23
42,408,336.78
45,452,063.85
Cash on hand....... ..............
85,604,217
2,927,330.95
22,554,993.25
Other resources...................
45,782,436.65
21,141,671.69
Total.......................... 3,809,533,152 4,072,710,105.34|4,481,871,444.90 4,652,313,302.62 4,922,723,290.63
LIABILITIES.
59,506.420.00
68,320,822.30 72,177,899.09
Capita) stock.......................
36,013,4^5
76,871,811.79
244,711,801 224,424,711.93 276,229,027.77 261,834,083.46 280,036,025.43
Surplus fund.......................
53,814,779.06
Other undivided profits..
39,412,250 62,160,100.11
77,264,792.69
89,595,370.89
92,707.96
364,639.25
51,294.48
Dividends unpaid..............
262,835.16
Individual deposits........... 3,479,192.891 3,713,405,709.80 4,070,486,246.70 4,212,583,598.53 4,451,555,687.72
Due to other banks and
8,234,513.44
3,187,417
6,690,451.96
8,084,294.10
10,181,417.50
bankers.............................
4,885,942.10
7,015,338
5,965,477.86
20,317,340.27
14,220,142.14
Other liabilities..................
Total.......................... 3,809.533.152 4.072, HO, 105.34 4,481,871,444.90 4,652,313,302.62 4,922,723,290.63
69
BANKING AND CUBKSNCY.
Aggregate resource* and Habilitie* of private bankt from 1908 to lilt.
1908
1909
1010
1911
1913
1,007 banks.
1,407 banks.
934 banks.
1,116 banks.
1,110 banks.
Classification.
RESOURCES.
Loans on real estate..................... 919,610,740 •36,636,702.07 $22,746,018.18 $37,536,422.83
Loans on other collateral se
curity...........................................
7,521,009 21,096,873.66 13,832,195.89 16,316,121.33
Other loans and discounts.......... 80,226,810 103,569,194.24 70,224,281.77 71,559,680.31
Overdrafts......................................
4,616,218.90
1,646,968.46
1,796,144
3,633,647.85
United States bonds....................
609,219.30
389,190.00
297,157
410,383.47
State, county, and municipal
bonds...........................................
3,228,802.32
2,336,285.00
3,466,506.73
1,100,443
Railroad bonds and stocks.........
1,213,577.66
584,460.18
448,547.38
500,901
Bank stocks....................................
205,348
Bonds of other public service
1,760,406.73
corporations................................
1,418,865.04
1,106,865.55
Other stocks, bonds, etc.............
5,135,443.71
6,187,297.87
5,992,780.67
5,821,870
Due from other Danks and
bankers........................................ 27,298,378 40,832,801.79 24,069,188.01 36,168,941.51
7,482,500.61
9,631,350.43
Real estate, furniture, etc...........
6,448,497 13,026,388.49
1,039,496.54
704,623.55
1,387,731.95
Checks ana other cash items___
1,529,589
7,189,337.84
Cash on hand................................
6,764,890.90
8,497,540 11,053,706.52
889,584.93
Other resources..............................
1,037,343.91
2,135,304.04
636,340
01,611.77
19,775,746.64
18,108,577.60
3,370,427.64
433,117.74
3,486,189.30
1,413,833.37
1,906,671.33
7,667,677.00
39,633,664.53
14,314,049.3$
800,306.87
7,450,404.38
1,083,330.04
Total..................................... 161,541,480 246,256,355.41 160,015,552.81 182,824,220.68 196,940,397.43
LIABILITIES.
|
Capital stock.................................. 21,122,836 27.726.922.00 18,809,561.74 21,872,416.34 22,348,040.33
9,333,680.83
7,329,974.38
6,541,431.06
Surplus fund.................................. 5,556,230 10.195.237.01
4i 250,634.46
3,421,956.92
5,533,006.44
3,160,559.55
Other undivided profits..............{ 3,475,238
74,638.22
189,643.09
Dividends unpaia. ......................
62,003.43
62,448.49
35,160
Individual deposits...................... 126,673,158 193,263,224.31 124,644,003.22 ;143,377,224.21 152,404,618.90
1,707,139.16
3,404,236.54
1,644,318.25 | 1,583,296.84
Due to other banks and bankers. 1,561,453
6,731,645.53
Other Liabilities............................. 3,117,396
5,063,230.50 | 6,149,708.90
6,071,725.68
Total..................................... 161,541,480 246,256,355.41 160,015,552.81 182,824,220.68 196,940,397.43
Aggregate resources and liabilities of loan and trust companies from J908 to
1912.
Classification.
1908
1909
1910
1911
1912
842 compa
nies.
1,079 compa
nies:
1,091 compa
nies.
1,251 compa
nies.
1,410 compa
nies.
BESOUBCE8.
Loans on real estate.......... $153,727,485 $377,318,280.19 $369,161,435.56 $467,531,456.44 $526,509,702.60
Loans on other collateral
821,341,681 1,222,881,129.16 1,230,282,986.02 1,289,452,721.54 1,279,983,539.16
security............................
Other loans and discounts. 404,412,308 460,550,850.39! 655,016,724.24 668.650.649.78 900,350,885.96
860,744
3,786,253.54
3,916,235.40
Overdrafts...........................
2,111,764.82
4,397,620.37
555,303
3,222,380.20 l
2,224,692.43
United States bonds..........
1,271,940.00
5,985,004.50
State, county, and munic
89,639,659 155,647,931.87 144,495,162.24 187,123,910.87 202,293,176.75
ipal bonds........................
29,576,312 362,404,241.30 312,518,321.28 371.707.846.78 380,190,967.79
Railroad bonds and stocks
4,805,843
Bank stocks........................
Bonds of other publio168,589,933.84 i 159,294,782.36 212,593,716.76 208,673,579.15
service corporations.......
Other stocks, bonds, e tc .. 651,298,154 / 468,914,756.87 541,978,126.32 341.128.520.22 421.996.627.13
\ 300,324,823.03 382,683,343.96
Due from other banks and
bankers............................. 391,573,223 578,243,506.14 467,643,271.31 617,605,590.281 606.669.507.26
97,112,461 127,216,448.81 125,486,325.05 143,081,102.71 157,188,150.08
Real estate, furniture, etc.
i
Checks and other cash
5,878,676
items.................................
19,129,908.471
26,374,390.56
21,763,736.38
51,677,976.00
Cash on hand...................... 118,398,874 254,447,910.16' 260,129,890.91 269.825.566.23 282.151.463.26
96,452,153
Other resources..................
34,641,394.691
80,379,723.21
68,635,104.75
80.375.993.13
T o t a l ................... . 2,865,632,876 4,068,534,982.65 4,216,850,061.52 4,665,110,868.71,5,107,444,382.27
LIABILITIES.
Capital stock............„......... 278,408,750 362,763,223.09 367,333,556.37 385,782,933.44 418,985,771.77
Surplus fund....................... 370,145,308 351,699,101.89 432,718,233.98 400,406,067.99 424,313,939.08
Other undivided profits...
45,894,591 141,683,091.23
65,448,601.52 138,464,384.81 136,428,039.39
Dividends unpaia.............
467,115
985,990.44
2,842,956.53
2,360,771.04
850,048.81
Individual deposits........... 1,866,964,314 2,835,835,180.79 3,073,122,706.20 3,295,855,805.27 3,674,578,238.92
Due to other banks and
bankers............................. 163,014,678 276,753,308.05 187,141,876.31 319,368,254.43 299,938,456.82
Other liabilities..................
98,815,087.25
140,738,111
88,242,130.61 122,872,561.73 152,349,887.48
Total.......................... 2,865,632,876 4,068,534,982.65 4,216,850,061.52 4,665,110,868.71 5,107,444,382.27
208t><*> 0 — 5*-------1(5
70
BANKING AND CUBBBNCY.
Aggregate resources and liabilities of national and other reporting banks on or
about June SO, 1908 to 1912.
1108
1000
mo
1011
1012
81,146 banks.
23,401 banks.
28,006 banks.
34,802 banks.
36,106 bonks.
Cfcsstfieatlon.
USOUBCES.
Loans on m l to
tal#.................
loans on other
oollattrral
security...........
Other kions and
dJsoounts........
Overdrafts..........
United 8 1 a t o s
bonds..............
Stato^ountr, and
mnnloipal
bonds.. . . . . . . . .
Railroad bonds
and stooks.......
Bonds of other,
publfc • ssrvice
corporations
Bank stooks.......
Other s t o o k s ,
hand#, etc
......
Bue from other
b a n k s and
bankers..
61,801,751,013.00 *82,505,077,070.46
■t** ftQA 747 A7A 5U *83,801,486,760.08
------- j -------------------
8.013.011.466.00 8,075,008,315.00 4,115,820,707.06| 4,123,052,706.66 4,380,043,88a 07
5,565,468,763.50 4,821,546,812.26 5,647,164,421.40 5,886,854,860.06 6,850,733,400.00
ftt M l IQft
M
61,455,604.60
67,800,155.68
60,600,502.96
750,300,706.10
702,787,711.20
784,502,468.07
773,455,177.84
838,366,86a 07
*861,000,108.05 1,001,541,455.10 1,116,245,006.60 1,200,806,075.21 1,278,554,05a 84
1.158.444.501.00 1,560,006,8M. 83 1,464,842,082.51 1,602,180,858.08 1,631,544,470.36
30,460,847.00
1,646,836,833.38
608,543,601.50
466,526,687.08
478,045, 035.46
550,102,206.65
708,580,001.88
070,644,571.67
025,180,526.51 1,026,075,888.46
3,336,344,506.04 2,562,071,702.68 2,893,008,26a 76 2,788,772,577.47 3,847,002,848.08
Beal estate,'fur-*
niture, e t c . . . . . .
404,006,134.88 644,035,541.80
574,231,671.01
616,603,007.78 657,300,66a 86
Checks and other
350,003,174.30 437,892,578.11
620,460,182.00 422,688,514.06 430,101,355.82
cash Items..........
Gash on hand...... 1,868,330,683.43 1,452,014,676.34 1,423,808,814.37 1,554,147,160.28 1,573,053,470.48
111,880,014.05
340,001,010.60
103,623,517.10
150,534,870.80
Other reeouroes...
165,805,006.04
Total......... 10,583,410,396.00 21,005,054,420.72 22,450,820,522.77 23,631,083,382.67 34,086,643,774.18
LIABILITIES.
Capital stock........ 1,757,150,303.00 1,800,036,368.00 1,879,043,887.09 1,052,411,065.56 2,010,843,505.70
Surplus fund........ 1,401,570,455.80 1,326,000,642.50 1,547,917,181.06 1,512,083,850.93 1,584,081,10a 44
Other undivided
404.649.006.00 553,400,970.77
581,178,042.47
profits.................
506,534,786.43
350,042,627.85
Circulation
613,668,063.00 636,367,526.00 675.632.565.00 681,740,513.00
708,600,503.00
(national banks),
04,034,846.30
3,310,044.76
20,856,304.16
3,630,127.76
5,680,184.23
Dividends unpaid
Individual 1
deposits............. 12,784,511,160.33 14,035,523,165.04 15,283,396,254.35 15,906,274,7ia 27 17, 024,067, eoa 80
United S t a t e s '
70,401.818.99
54,541,349.41
130,266,023.63
58,045,080.66
48,455,641.54
deposits..............
Due
to other
ba n k s and;
bankers........... I 2,198,050,204.00 2,484,103,805.37 2,225,380,705.62 2,621,054,047.82 2,632,635,075.68
358,003,178.26 340,882,46a 55
381,661,735.60
344,211,000.00 230,685,273.63
Other liabilities...
Total........... 10,583,410,303.00|21,005,054,420.72 22,450,320,522.77 23,631,083,382.67 24,086,642,774.18
i Includes mortgages owned.
* Includes bonds of other corporations for national banks.
Summary of reports of condition from 25,195 banks in the United States and
island possessions (including National, State, savings, and private banks and
loan and trust companies), showing their condition at the close of business
June U, 1912.
BF.80UBCES.
Loans and discounts:
Secured by real estate (including
mortgages o w n e d )______________ $3,301,486,759.93
Secured by collateral other than
real estate------------ ---------------------- 4, 239,942,380.07
All other loans_____________________ 6,350, 722,499.00
O verd ra fts____________________________
61, 455,604.59
-----------------------------$13,953,600. 243. 59
71
BANKING AND CURRENCY.
Bonds, securities, etc., including pre
miums thereon:
United States bonds_______________
State, county, and municipal bonds.
Railroad bonds___________________
Bonds of other public-service cor
porations (including street and interurban railways bonds)________
Other bonds, stocks, warrants, etc_,
$823, 266, 866.97
1, 273, 554,050. 84
1, 631, 544,479. 26
003, 542,601. 59
1,026,975,383.45
-----------------------------$5,358,883,382.31
Banking house, furniture, and fixtures____________________
550,326, 884. 44
Other real estate owned__________________________________
106,972, 775. 92
Due from banks----------------------------------------------------------------2, 847,992, 843. 93
Checks and other cash items______________________________
55, 236, 223.74
Exchanges for clearing house_____________________________
374, 865,032. 08
Actual cash on hand:
Gold coin __________________________
238, 389, 386. 74
Gold certificates___________________
1643, 547, 000. 00
Silver dollars_____________________
22,957, 395.00
Silver certificates_________________
194, 374,169.00
Subsidiary and minor coins________
37,738,008.29
Legal-tender n otes________________
253,122,053. 00
National-bank notes_______________
108, 281,687.00
Cash not classified________________
74, 543, 690. 40
---------------------------1, 572,953,479.43
Other resources___________________________________________
165, 805,908.94
Total resources____________________________________
24,986,642,774.18
L IA B I L IT I E S .
Capital stock paid in_____________________________________
S u rplu s__________________________________________________
Undivided profits_________________________________________
National-bank circulation_________________________________
Due to banks_____________________________________________
Dividends unpaid________________________________________
Individual deposits subject to check
Without notice______________________ $8,323,485,623.53
Saving deposits or dei>osits in interest
or savings department_______________ 6,496,192, 707. 60
Certificates of deposit__________________ 1,952, 784, 093. 94
Certified checks_______________________
135, 241, 263. 20
Cashier’s checks outstanding___________
116,363,918.62
---------------------------United States deposits___________________________________
Notes and bills rediscounted______________________________
Bills payable, including certificates of deposit representing
money borrowed_______________________________________
Other liabilities___________________________________________
Total liabilities____________________________________
$2,010, 843, 505. 70
1,584,981,106.44
581,178,042.47
708,690,593.00
2,632,635,075.58
3, 639,127. 75
17,024,067,606.89
58, 945,980. 66
21,836,346.24
127, 778, 722. 66
232,046,66(5. 79
24, 986, 642, 774.18
Aggregate loans, resources, capital, and deposits for the fiscal years 1908 to
1912, inclusive, of banks reporting to Comptroller of the Currency.
[In millions of dollars.)
Year.
Num
ber of
banks.
Loans.
Resources.
1908...
........................
1909............................................................................
1910............
.....................................
1911..............
......................................
1912............................................................................
21,346
22,491
23,095
24,392
25,195
110,437.9
11,393.1
12,521.7
13,046.4
13,953.6
119,583.4
21,096.0
22,450.3
23,631.0
24,986.6
1 Includes $80,4 7 9 ,0 0 0 clearing-house certificates.
Capital.
$1,757.1
1,800.0
1,879.9
1,952.4
2,010.8
Individual
deposits.
$12,784.6
14,035.5
15,283.3
15,906.3
17,034.0
11,191.7
11
^OOOCCOrtOaCNiOO®®^ N^aO-H’t^WONh-HUSOOOWNWHhi
1393.7
Individ
United
States
ual de
deposits.* posits.
'T X ^ U 5^0iO 'fN (C iO N M -t»O J® N O N O O »H rt(O M t>.0® H «5N ^
n m im m m m m m m m m m i
—
N rtrH «J*®0)N X ‘0-'NN-<X^.fN'«1'iONINrONOOCiOOiOON^OCaCNO
N iO ^O »^O N «^«aN O tO N ^N O -H O O <D O aO W N »O N M W ^M ^N
:
«
«¥ 0>© h .U 5N O © N N N 'f>fli0W «5O -H O N M i0iX l-H i-'n ^^® »^»N
§
• 0«U 5»0® H «
Paper
cur
rency.1
Total
cash in
bank.
Capital.
On,jN O a o » ^ 'N h .N © a r t ® « N N ^ f i w ® « 'J 'O N a o s « N N ^ « « c < ;o w
• • • •' . • • I •' .' • • • 1 'NtO^1*C^O>OX CIO
•Ii m * * * * * ! j j
m
n i n n n ; ^ 5 §h ^
H f.
and
bankers.
Specie.
i* ***********
iO I^rtN ->0«^»N N NM W N a3J<00>>H N ^O ^O ><H O lO »C^*N «N ^M
t im im m m m iim m m m M im
•• :
~
~
~
-r
Loans
and dis
counts
(includ
ing over
drafts).
Bonds,
stocks,
etc.
Due
from
iOc.2^-«r^C^'X3C»CSO^C^-^>I^cOasCNt^^-»CS>«»»'^
jgtftftfddssM S&SS&^S&sM^
Surplus
and
profits.
Circula
tion.*
mmmmmm&immmmmm
<0 Ir»'<r^r*or»coe>o^»'ioo»»o-<^o>W'<*'^o»PO«e^c<ot>.o»^HCs^o>50?c©«)^0
Number
of banks
report
ing.
(Amounts in millions of dollars.]
1863 to 1872, inclusive, data from various souroos; from 1873 compiled from reports obtained by the Comptroller of the Currency.]
Due to
banks.
Total
assets.
BANKING AND CURRENCY.
88$8& & 82§£8SS$3S983§g8S3g5S8S388S3$5
•
*» ••
[From
Principal items of resource* and liabilities of State, savings, and private banks, loan and trust companies, and national banks, from 1863 to 1912.
72
s
i i
im iim M m iM im tm iir n
BANKING AND CUBBENCY.
u m m m u m
»»22SS22222VaSS
06^«JO N »N M O ^O h «
h
O
im m m m m
m m m u m u
»-®-r.-«r« •g a « 2 «*s 3 » s'
lj
“1
mmmmm
i!
mmmmm in
HI
O J e o a H O f O r t e n a N c O ' f ic o a
SSSSSg2R$§gS3SSS
0> ^P 50^N «^0»0>N «® N N
P I
*1
NHN«0»i<0><0 0>Oi0®®tCH
O «N H ® 0 »«5 N e 0 00 N O O ^ »
mmmmm
fljl
»W»«OHM®H^NfOOOON 0»
§ g s iis § iis is ^ s
CCCSC^O—•0'^<C)C«J'C^OC'^, C^'^05
N H N O O N IN «O *0 i0 ® e i'O
iiiis s s g is iiis s
i-lli
165
III
0>H«ON®0>0)N®NOOOOO
m m m m m
is is iis g g g s s s ii
II
N®K5NOO>ONNO>ONOO't®
m
m
m
r n s m
r--r--t.-o.-ofg 2- 5- a- 2 2
3 g H ;i 8 1 3 S i S § l 3
»»2= s2sss2 n a?fsa
J!
SiI!
§ | i!» l|
Ifti! S
|
®
Ǥ
»
iiiiiiiiiiiiiig
I
74
BANKING AND CUBBBNOY.
National banks in the United States (7,488) :
Capital____________________________________________________ $1,056,345,786
Surplus___________________________________________________
725, 333,629
Undivided profits_________________________________________
259,549,156
Circulation_______________________________________________
724, 459, 849
Individual deposits________________________________________
5, 761,338, 731
Total resources___________________________________________ 10, 876, 852,343
State banks (13,381*) :
Capital____________________________________________________
459,067,206
Surplus____________________________________________________
177,307,042
Undivided profits__________________________________________
94,066,902
Individual deposits________________________________________
2,919,977, 897
Total resources____________________________________________
3, 897,770, 826
Mutual savings banks (630‘ ) :
Surplus___________________________________________________
248, 983, 429
Undivided profits---------------------------------------------------------------66,440,676
Individual deposits________________________________________
3,608,657,828
Total resources----------------------------------------------------------------3,929,091,986
Stock savings banks (1,292 ‘ ) :
Capital........................ ...................................................... ...............
76,871,811
Surplus_______________________ ___________________________
31,052,596
Undivided profits..................................................................... .....
23,154,694
Individual deposits.______________________________________
842, 897,859
Total resources----------------------------------------------------------------993,631,303
Loan and trust companies (1,410*) :
Capital___________________ _____ ____________ _____________
418,985,771
Surplus----------------------------------------------------------------------------424,313,939
Undivided profits______________________ _________ _________
136,428,039
Individual deposits_______________________________________
3,674,578,238
Total resources___________________________________________
5,107,444,382
Private banks (1,110 l)
Capital___________________________ _________ ________ ______
22,348,040
Surplus----------------------------------------------------------------------------9,338,680
Undivided profits_________________________________________
4,250,634
Individual deposits-----------------------------------------------------------152,494,618
Total resources___________________________________________
196,940,397
State, savings, and private banks, loan and trust companies
(17,823 *) :
Capital____________________________________________________
977,272,830
Surplus__________________________________________________
890,990,687
Undivided profits_____________ ___________________________
324,340,946
Individual deposits_______________ ________________________ 11,198,606,443
Total resources___________________________________________ 14,124,878,897
All banks (25,309*) :
Capital______________ ________ ____ _____ ___________________
2,033,618,616
Surplus___________________________________ ______________
1,616,324,316
Undivided profits_________________ ______ __________________
583,890,102
Individual deposits________________________________________ 17,959,945,174
Total resources------------ ---------------------------------------------------- 25,001,731,240
1Comptroller’s report, 1912.
*No dates given.
75
BANKING AND CURRENCY.
C lassifica tion o f d ep osits in ea ch class o f banks as o f J u n e 14, 1912.
Number
of banks.
Classification.
Individual de
Savings deposits
or deposits in
Certificates of
posits subject to
deposit,
check without interest or savings'
notice.
department.
|
state banks.................................
Mutual savings banks.............
Stock savings banks.................
Loan and trust companies____
Private banks............................
13,381 SI, G09,117,009.91
(>30
15,907,801. 72
ITS, 127,748. 36
1,292
1,410 2,319,055,959.95
78,339,000. 91
1,110
Total, State, etc., banks
National banks..........................
17,823
7,372
4,200,548,180. 85
4,122,937,442. ti8
5,702,548,771. 49 | 1,140,038,702.08
733, <>43,936.11 j
812,745,391.86
Grand total.......................
25,195
8,323,485,623.53
6, 496,192,707.60 j 1,952,784,093.94
Certified
checks.
Classification.
State banks............................
Mutual savings banks.........
Stock savings banks.............
Loan and trust companies..
Private banks........................
Cashiers’ checks
outstanding.
$32,254,762.10
Total, State, etc., banks.
National banks.............................
Orand total.
1610,207,548.25
96,528.65
87,099,928.02
395,983,407.02
46,651,290.14
$657,477,220.31
3,592,530,070.33
574,822,459.57
910,850,167.60
20,84>8,853.68
Total.
795, 385. 48
16,658,017. 77
304,237.00
$10,921,297. 42
123,427.41
2,052,338.18
32,030,686.58
330,637.17
$2,919, 977,897.99
3,608, 657,828.11
842, 897,859.61
3,674, 578,238.92
152, 494,618.90
50,012,402. 35
85,228,860. 85
45,458,386. 76
70,905,531.86
11,198, 606,443. 53
» 5,825, 461,163.36
135,241,263. 20
116,363,918. 62
17,024,067,606. 89
1 United States deposits hot included.
MEMORANDUM
R E L A T I V E TO TA B L E S NO.
1 AN D NO. 2.
As to the New Y ork C ity figures of O ctober 21, showing losses in loans of
$2t>,272,715, and in cash of $29,059,727, w hile a gain of $79,102,171 in in d ivid u a l
deposits is reported, attached T able No. 1 shown that this loss in cash was offset b y
an increase in exch anges for clearing house an increase since August 9 of $94,038,0001.
B y reference to T a b le No. 2 it w ill be noted that the colu m n of cash reported b y
New Y ork City banks shows this to be at an e b b in the fall of the year.
R ela tive to the item of loans and discou nts and in divid u al deposits com parisons
for the past three years have been m ade (see T able No. 2) showing the am ounts
reported each date- also the amounts shown b y all the reporting banks for co m
parison.
T a b l e N o. 1.
Statem ent o f N ew
York C ity Banks for Oct. 21 compared nith last call A u g . 9 avrf a
year ago. N o r . 26, 1912.
R E SO U R C E S.
.................
Hond Investment..................................................
Due from banks.................................................... ..........................
...............
Kxchange for clearing house..............................
Law ful monev.......................................................
.. .
Aggregate....................................................
......................
I
, Oct. 21. 1913.
Aug. 9. 1913.
Nov. 26, 1912.
225,398,000
122,536,000
149,811,000
273,986,000
$936,908,000
233,893,000
85,133,000
55,773,000
300,707,000
$874,616,000
232,580,000
93,503,000
178,700,000
257,690,000
1,722.68 4,000
1,655,642,000 ! 1,682,275,000
LI A B I L I T I E S.
National bank circulation...............................................................
Due to banks.....................................................................................
Individual deposits..........................................................................
I nited States deposits.....................................................................
lUmds borrowed................................................................................
Bills payable and rediscounted....................................................
Per cent reserve.....................................................................
$45,847,000,
641,256,000 715, t>40,000
3,506,000!
S. 247,000 I
7.873.000:
25.37
$47, 018,000
656,385,000
»’»36,544.000
2,835,000
<,221,000
2.977.000
$48,382,000
586,043,000
742,932,000
1,737,000
7,819,000
500.000
26.42
24.69
76
BANKING AND CUBBENCY.
T a b l e No. 2.
Table thawing loans, cash, and individual deposits held by New York City and total
United States at each call for pcLst three years.
Loans and discounts.
Cash.
Individual deposits.
Date of report.
New York
City.
Total banks.
New York
City.
Total banks.
New York
City.
Total banks.
1913.
Oct. 21.
Aug. 9.
1910,635,729
936,908,444
886,966,803
910,727,161
953,792,810
Apr. 4..
Feb. 4..
1912.
Nov. » ...........................
Sept. 4
June 4 ..
Apr. 18.
Feb. 90.
874,616,719
950,893,024
959,068,755
939,218,163
971,498,585
6,058,982,029
6,040,841,270
5,953,904,431
5,882,166,597
5,810,433,940
257,690,470
286,158,326
321,478,638
303,486,295
333,471,111
859,098,737
895,951,094
945,202,895
931,689,162
950,497,398
742,932,490
767,845,606
805,383,121
742,693,664
734,506,849
5,744,561,069
5,891,670,007
5,825,461,163
5,712,051,088
5,630,559,231
838,672,447
885,628,747
903,566,432
915,917,556
808,646,569
5,659,109,826
5,663,411,073
5,610,838,787
5,558,039,050
5,402,642,351
265,388,742
304,359,507
329,815,391
319,263,311
259,659,227
862,794,196
$95,475,406
946,330,109
908,036,627
836,267,359
686,417,818
766,024,815
776,964,554
692,763,534
562,020,067
5,536,042,281
5,489,995,011
5,477,991,156
5,304,624,091
5,113,221,817
1911.
Dec. S..
Sept. 1.
June 7..
Mar. 7..
Jan. 7 ..
$6,260,877,853 $271,647,803 $889,632,454 $715,646,351 $6,051,689,087
6,168,555,525 300,707,530 899,169,371 636,544,180 5,761,338,731
6,143,028,132 292,517,948 913,982,640 701,998,318 5,953,461,551
6,178,096,379 279,655,691 888,283,735 717,610,317 5,968,787,045
6,125,029,165 304,643,384 933,417,231 754,284,535 5,985,432,295
Comparative statement showing the amount of loans and discounts, cash, and individual deposits held by national hanks in reserve cities and country banks according to the geographical sections as shown
by the reports of condition on Oct. 21, 1913, Aug. 9, 1913, and Nov. 26, 1912.
Loans and disoounts.
Cash.
Individual deposits.
Lo cation.
Aug. 9, 1913.
Oct. 21,1913.
Reserve d ty (Boston).........................
Country banks......................................
$205,136,237.15
312,527,699.40
$189,872,991.74
306,266,615.18
Excess.
Nov. 26, 1912.
$15,263,245.41
6,261,084.22
$199,745,658.06
316,632,261.35
Excess.
Oct. 21,1913.
Aug. 9, 1913.
Excess.
Nov. 26,1912.
Excess.
$5,390,579.09
-4,104,561.95
$31,529,566.94
25,128,955.62
$30,835,728.90
22,148,520.49
$693,838.04
2,980,435.13
$28,330,982.90
24,116,564.86
$3,198,584.04
1,012,390.76
$189,658,386.31
329,710,641.68
Oct. 21,1913.
Aug. 0, 1013.
Excess.
Nov. 26, 1012.
$171,327,303.04
316,293,285.31
$18,330,002.37
13,417,356.37
$182,867,600.35
324,076,637.28
$6,700,786.06
4,734,004.40
507,844,237.63
11,524,700.36
New England States.................
517,663,936.55
496,139,606.92
21,524,329.63
516,377,919.41
1,286,017.14
56,658,522.56
52,984,249.39
3,674,273.17
52,447,547.76
4,210,974.80
510 360,027.90
487,620,670.25
31,748,348.74
New York City......................................
Other reserve cities..............................
Country banks.................................... .
910,635,729.74
494,899,316.99
874,833,692.00
936,908,444.96
480,035,966.08
859,979,495.86
-26,272,715.22
14,863,350.91
14,854,196.14
874,616,719.65
486,798,720.39
839,552,426.03
36,019,010.09
8,100,596.60
35,281,265.97
271,347,803.12
76,229,542.10
78,765,243.36
300,707,530. 79
73,067,182.81
71,943,066.99
-29,059,727.67
3,162,359.29
6,822,176.37
257,690,470.67
74,784,780.03
73,137,302.59
13,957,332.45
1,444,762.07
5,627,940.77
715,646,351.77
410,121,734.38
1,121,704,090.15
636,644,180.46
382,364,158.05
1,001,704,030.16
70,102,171.31
36,757,576.33
20,000,150.09
Eastern States.................... .......
2,280,368,738.73
2,276,923,906.90
3,444,831.83
2,200,967,866.07
79,400,872.66
426,642,588.58
445,717,780.59
-19,075,192.01
405,612,553.29
21,030,035.29
2,256,472,176.30
2,110,708,277.67
146,768,898.63
146,666,408.26
661,944,162.09
-4,851,952.98
39,952,851.02
16,087,878.16
47,809,667.59
16,036,642.04
41,950,202.75
51,236.12
5,850,464.84
18,261,383.50 -2,173,505.34
45,322,748.71
2,486,918.88
116,329,640.84
610,295,506.58
114,385,060.67
564,063,074.26
1,043,680.17
55,232,422.32
122,414,380.05 - 6,084,730.21
614,602,162.53
4,603,344.06
63,584,132.21
57,176,121.40
737,016,542.58 -
Reserve cities....................................
Country banks.......... ....................
141,814,455.28
701,897,013.11
135,828,629.34
676,516,603.83
5,985,82594
25,380,409.28
843,711,468.39
812,345,233.17
31,366,235.22
808,610,570.35
35,100,898.04
63,897,545.75
57,995,844.79
5,901,700.96
Chicago....................... .........................
St. Louis........ ........... .......................
Other reserve cities.................
Country banks......................................
330.122.983.81
107.132.567.81
456,236,681.96
872,859,621.34
329,024,370.83
109,161,973.15
447,140,265.47
860,383,178.40
1,098,612.98
- 2,029,405.34
9,096,416.49
12,476,442.94
312,601,824. 74
110,952,331.16
438,271,155.67
835,701,993.41
17,521,159.07
-3,819,763.35
17,965,526.29
37,157,627.93
83,662,072.25
21,576,157.79
62,033,701.68
72,076,410.82
82,446,563.40
24,365,294.99
64,452,236.35
60,653,160.29
1,215,508.85
-2,789,137.20
-2,418,534.67
2,423,250.53
Middle Western States. . . . . . .
1,766,351,854.92
1,745,709,787.85
20,642,067.07
1,697,527,304.98
68,824, M9.94
239,348,342.54
246,917,255.03
-1,568,912.49
Reserve cities.................... ...................
Country banks.....................................
104,127,255.11
1,822,337.49
9,619,844.03
106,734,391.38
293,863,652.62
-2,607,136.27
19,877,798.39
18,369,377.75
26,580,816.32
18,992,148.11
25,814,258.64
-622,770.36
766,557.70
Southern States........
742,032,400.21 -27,286,138.44
421,847,005.08 - 2,725,361.60
1,060,885,601.72
60,818,308.43
2,225,665,277.01
30,806,808.30
313,413.54
735,625,156.42
678,440,084.93
80,566,974.75
3,095,097.50
28,901,585.42 -7,325,427.63
2,978,483.00
59,055,218.69
67,707,300.98
4,369,109.84
215,663,806.29
358,493,976.04
986,772,876.06
202,335,910.84
61,380,096.04
350,813,434.02
080,324,536.82
236,231,079.83
3,117,262.71
1,623,249,172.01
1,608,803,970.62
10,306,102.30
18,121,982.50
25,733,931.54
247,395.25
846,884.80
106,506,210.55
350,744,202.63
101,740,168.74
337,568,482.00
4,747,050.81
13,175,800.64
107,811,240.70 - 1,215,021.15
333,002,898.60
17,741,304.03
62,318,513.60
1,301,386.16
13,327,805 45 ~~ 2127451,301.14 ~ 3,212,505715
938,415.56
66,140,508.22 - 3,830,004.62
7,680,541.12
340.426.405.21
0,067,480.83
-2,551,659.74
044.068.072.21
42,703,003.87
1,572,006,276.78
51,152,805.23
313,741,451.01
102,304,917.62
304,121,606.98
Western States.______. . . . ____
417,868,706.12 j
406,426,524.60
11,442,181.52
400,598,044.00
17,270,662.12
44,950,194.07
44,806,406. 75
143,787.34
43,855,914.04
1,094,280.05
457,340,512.18
430,317,651.73
18,022,860.45
440,814,130.30
Reserve cities............................. .........
Country banks......................................
2447i 567733^21 1
189,083,069.30 |
242,464,891.17
186,767,969.78
” 1^6917842.04
2,315,099.52
251,048,414^08
182,303,054.13
87
6,780,015.17
38,066,699. 76
19,323,656.49
37,563,067.10
18,605,728.04
503,632.66
717,928.45
37,013,550.17
19,681,860.16
1,053,149.50
-358,203.67
226,083,046.63
231,658,953.09
220,106,044.93
210,371,538.90
5,077,001.70
12,287,414.10
228,240,810.56 - 2,165,863.03
776,007.27
230,882,045.82
433,239,802.51 j
429,232,860.95
4,006,941.56
433,351,4€8.21
—111,6€5. 70
57,390,356.25
56,168,795.14
1,221,561.11
56,695,410.33
694,945.92
457,742,809.72
430,478,488.83
18,264,415.80
450,131,856.38 - 1,388,056.66
104,258.48
1,548,856.28
124,490.15
744,904.65
579,042.80 |
165,861.85
672,100.25
72,804.40
1,890,143.07
1,015,624.74
92,322,328.35
6,058,982,029.30
201,895,824.15
880,632,454.40
899,169,374.49 1
1
-9,536,920.09
850,098,737.71
30,533,716.69
Pacific States.. . . .
Hawaii (islands)....... ..........................
Total United States. . . . . . ___
1,673,346.43 |
6,260,877,853- 05 | 6,168,555,525.30
20 3 6 6 O— 58h-8. Rept. 133, 63-1, pt 2.
1,777,604.91
(To faoe page 76.)
-
6,051,689,087.60 6,761,338,731.77
—
25,481.67
290,350,355.02
1,002,730.33 5,044,561,060.01
16,526,372.88
102,506.26
107,128,017.78
77
BANKING AND CURRENCY.
Bank balances reported Apr. 14, 19IS.
j New York. '
Chicago.
1153,987,595
16,314,119
137,673,476
Net......................................................................................................... I1137,673,476
Due to country banks___
Due from country banks..
. St, Louis.
1
$85,035,506 $36,406,146
7,691,507
3,630,529
77,343,999
32,775,617
124,839,276
&3,416,397
4,321,843 j
586,549
21,691,7X0
295,932
120,517,433
Net.........................................................................................................j 120,517,433
62,829,848
21,395,848
278,826,871 j 148,451,904
Due from all banks....................................................................................... I 20,635,962
58,097,926
Net.........................................................................................................
258,190,909 - 140,173,848
54,171,464
Respectfully,
W. J.
F o w le r ,
Deputy Comptroller.
The amount and class of loans of all national banks on approximate dates in
1902 to 1910 and 1911 and 1912 are shown in the following table:
Date.
On time,
On de
On de
On time,
single
mand, pa mand, se paper with name paper
cured by
per with
Num
two or
stocks,
(one
person
one or
ber of
or nrm),
and more indi
banks. more indi bonds,
vidual or
other
per
without
*
vidual or
firm names. other secu
firm names. sonal secu
rity.
rities.
Millions.
Sept. 15, 1902
Sept. 9, 1903.
Sept. 6,1904.
Aug. 25, 1905.
Sept. 4, 1906.
Aug. 22, 1907.
Sept. 23, 1908
Sept. 1, 1909.
Sept. 1, 1910.
June 7, 1911.
June 14,1912.
4,601
5,042
5,412
5,757
6,137
6,544
6,853
6,977
7,173
7,277
7,372
$237.3
2*3.1
279.8
320.1
374.7
428.2
395.9
441.5
524.3
529.7
571.3
Millions.
*706.9
717.3
818.9
854.1
828.0
832.9
922.7
957.3
939.1
953.8
985.4
Millions.
*1,176.4
1,267.5
1.316.7
1,382.2
1.502.0
1.648.7
1.582.4
1.698.4
1.842.5
1.885.1
1,973.4
Millions.
$517.1
558.1
611.0
689.1
776.1
899.5
852.1
971.5
1,068.3
1,124.7
1,198.5
On time,
secured by
stocks,
bonds, and
other per
sonal secu
rities, or on
mortgages
or other
real estate
security.
Total.
Millions.
<642.4
655.4
699.7
753.0
818.1
869.2
997.5
1,060.1
1,093.0
1,117.5
1,225.3
Millions.
13,280.1
3.481.4
3.726.2
3.998.5
4,299.0
4.678.5
4.750.6
5.128.8
5.467.2
5.610.8
5.953.9
78
BANKING AND CURRENCY.
DISTRIBUTION OF MONEY IN THE UNITED STATES.
In the following table is shown the distribution o f money in the United States,
giving the amount in the Treasury as assets, amount in reporting banks, and
elsewhere, from 1892 to 1912. inclusive:
Year
ended
June 30—
Coin and other Coin and
Coin and other
not in
Coin and money in Treas money in report
ing banks.*
banks.
ury as assets.1
other
money
in the
United
Per
Per
States.
Amount. cent. Amount. cent. Amount.
Millions. Millions.
1 8 9 2 ...........
1883.............
1804.............
1805.............
1806.............
1807.............
1808..............
1800.............
1000.............
1001.............
1002..............
1003.............
1004.............
1005.............
1006.............
1007.............
1008.............
1000.............
1010.............
1011.............
1012.............
11,752.2
1,738.8
1,806.5
1,810.3
1,700.0
1,006.7
2,073.5
2,100.0
2,339.7
2,482.1
2,663.2
2,684.7
2,803.5
2,883.1
3,060.0
3,115.6
3,378.8
3,406.3
3,410.5
3,555.0
3,648.8
$1$O.0
142.1
144.2
217.4
203.5
265.7
235.7
286.0
284.6
307.8
313.0
317.0
284.3
295.2
333.3
342.6
340.8
300.1
317.2
341.0
364.3
Millions.
8.60
8.17
7.00
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
$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
other money
Treasury or
Per
cent.
Per
capita.
57.02
62.15
53.84
53.36
54.14
53.13
55.46
53.02
55.70
55.50
55.07
56.61
54.80
55.40
66.22
53.49
40.58
48.78
40.36
46.08
47.16
$15.50
16.14
14.21
13.89
13.65
13.87
15.43
15.51
17.11
17.75
17.00
18.88
18.77
10.22
20.30
10.36
10.15
18.68
18.68
17.75
17.08
Millions.
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
$1,014.9
1,080.8
972.4
070.8
074.6
1,012.8
1,150.1
1,180.8
1,306.2
1,380.4
1,411.4
1,510.7
1,536.3
1,600.1
1,725.0
1,666.5
1,675.1
1,661.0
1,687.7
1,668.5
1,720.7
In circulation,
exclusive of coin
and other money
in Treasury as
assets.
Amount.
Per
capita.
Millions.
$1,601.3
1,506.7
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
$24.60
24.06
24.56
23.24
21.44
22.92
25.10
25.62
26.03
27.08
28.43
20.42
30.77
31.08
32.32
32.22
34.72
34.03
34.33
34.20
34.34
1 Public money in national-bank depositaries to the credit of the Treasurer of the United States not
included.
* Money in banks of island possessions not included.
79
BANKING AND CURRENCY.
Cash on hand in banks reporting to the Comptroller of the Currency Juno
14, 1912.
Number
of banks.
Classification.
National banks.......................
State banks.............................
Mutual savings banks...........
Stock savings banks..............
Loan and trust companies..
Private banks.........................
Total..............................
Classification.
Gold coin.
7,372 $149,294,41J. 78 $437,081,380.00
43.475.473.23
13,381
55,832,110.00
630
3.040.620.00
2,613,101.74
1,292
3.292.340.00
13,099,102.11
1,410
28.720.390.23 143,797,940.00
1,110
502,700.00
1,186,901.65
25,195
Minor coins.
238,389,386. 74
643,547,090.00
Legal tender.
National
bank notes.
National banks............... $22, 555, 692. 68 $188,440,207.00
9, NN4, 263. 50
35,374,475.00
State banks......................
1,378,566. 00
Mutual sa v mgs ban ks...
245,994.27
Stock savings banks___
828, 452. 46
2,579,310.00
24,
336.00
Iakui and trust companies .{,932,351. S3
291,251. 53
766,159.00
Private banks.................
Total....................... 37,738,00N. 29
Gold
certificates.
253, 122,053.00
Silver
dollars.
$12,637,221.00
7.483.824.00
21,575.00
809.660.00
1.571.391.00
433.724.00
$138,569,628.00
28.669.217.00
1.522.101.00
1.445.841.00
23.694.632.00
482,750.00
22,957,395.00
194,374,169.00
Cash not
classified.
$47,564,277.00
24.568.164.00 $36,479,195.75
3.370.411.00
3,993,692.28
3.400.118.00
3,811,178.99
28.347.109.00 27,504,313. 18
2,755,310.20
1.031.608.00
108,281,687.00
Silver
certificates.
$996,142,823.46
241,756,724.48
16, 186,061.29
29,266,002.56
282,151,463. 26
7,450,404.38
74,543,690.40 1,572,953,479.43
BANKING AND CUBBENCY.
80
Schedule of loans running 90 days or less from Aug. 9, as shown by the reports
of condition of 7,096 national banks.
St. Louis
New York Chicago
(36 banks). (9 banks). (7 banks).
A . On demand
(one or more
names)........
B. On demand,
secured by
stocks,
bonds, e tc ...
C. On time (two
or
more
names).........
D. On
time,
single name,
v thou t
other secur
ity.................
£ . On time, se
cured
by
stocks,
bonds, e tc ...
F. Secured by
real estate
mortgages,
etc.................
$7,004,969 $6,196,249 $2,412,125
Central
reserve
cities
(52 banks).
Other
reserve
cities
(308 banks).
Country
banks
(6,736).
Total banks
in United
States
(7,096).
$15,613,363
$79,186,557 $157,344,961 $252,144,881
5,276,533
153,397,816
107,692,020
123,493,347
125,527,742 73,754,071 23,814,102
223,095,915
305,571,196
766,028,358 1,294,695,469
116,680,948 52,386,018 11,096,501
180,163,467
243,326,078
350,301,629
773,791,174
121,086,821 44,740,103 20,025,680
185,852,604
194,391,557
321,164,876
701,409,037
3,647,050
17,258,736
21,431,413
128,361,990 19,759,293
208,864
384,583,183
12,951
525,627
90 days or
less........ 498,966,302 197,044,598 62,637,892
Over 90
days___ 437,942,142 131,979,772 46,524,081
758,648,792
933,814,458 1,735,591,907 3,428,055,157
616,445,995
639,924,756 1,337,980,689 2,594,351,440
303,812
Total, all
loans... 936,908,444 329,024,370 109,161,973 1,375 '**4.787 1,573,739,214 3,073,572,596 6,022,406,597
Sept. 25,1913, Office Comptroller of Currency.
The following table shows amount of cash, loans, individual deposits, and banks
deposits held by national banks:
81
BANKING AND CURRENCY.
Capital, specie, circulation, etc., of the great European single banks of issue on or about
June SO, 1906.
[Amounts are expressed in millions.)
Capital.
Imperial Hank of Germany. .
Bank of Austria-Hungary___
National Bank of Belgium...
National Hank of Bulgaria...
National Hank of Denmark..
Bank of Spain..........................
Bank of Finland......................
Bank of France........................
National Hank of Greece........
Bank of Italy............................
Bank of Naples........................
Bank of Sicily..........................
Bank of Norway......................
Bank of Netherlands..............
Bank of Portugal.....................
National Hank of Roumania.
Imperial Hank of Russia.......
Bank of Kngland......................
National Hank of Servia........
Royal Hank of Sweden..........
$28.9
41.9
9.0
Total (20banks).
l.H
6.8
28.9
1.9
35.2
3.9
28.9
11.6
3.5
5.0
Circula
tion.
$412.0
376.5
136.5
S. 6
34.9
305. 7
18.2
908.8
23.1
213.3
66.6
14.8
21.4
113.0
74.5
43.1
591.0
146.8
Deposits.
$149.9
31.6
16.3
17.0
.8
134.2
4.2
189.1
23.4
90.6
16.1
10.6
1.9
2.5
29.3
Total
specie.
$211.1
299.2
24.1
7.6
27.2
200.2
5.2
803.4
.4
152. 7
32.8
9.1
8.0
6.6
109.8
280.3
.6
57.1
13.7
15.0
455.9
1S7.8
4.5
11.9
52.2
340.5
3,567.6
1,120.4
2,525.6
14.6
2.9
28.3
70.8
1.1
12.2
20.6
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 and Labor, from the official reports of the respective countries.]
Countries.
Austria.......................................................
Belgium...............
Bulgaria..............
t hile.....................
Denmark *..........
Egypt.................
Franco.................
Algeria.........
Tunis............
Germany ..........
Luxemburg.
Hungary «...........
Italy.....................
Japan..................
Formosa___
China and Korea.
Netherlands.................
Dutch East Indies.
Dutch Guiana........
Norway............................
Roumanian.....................
Russia 6............................
F inland....................
Spain •.............................
Sweden............................
Switzerland....................
Popula
tion.1
Date of
report.
Dec. 31,1909
Dec. 31,191;)
— do............
7,501, J) Dec. 31,1911
Dec. 31,1910
4,285, OJ) ____do.............
3,415,00J June 30,191J
2,757,00) Afar. 31,1910
11,629, JO) Dec. 31,1911
31,1911
29, G02,003 /Dec.
\Dec. 31,191)
5,232, JO Dec. 31,1908
1.923.0 M Dec. 31,1910
64.432.00) ....... do.............
246, JO) ___ do.............
do............
20.886.0),) — .do............
/
June
30,1911
34.657.000
\June 30,1910
I/Dec. 31,1910
51.547.000 \Mar. 31,1912
/Dec. 31,1910
3.341.000 \Mar. 31,1911
28,572, X)J
;........ dO..............
{/Dec. 31,1909
5.945.000 \Dec. 31,1910
___ do............
37.717.000 /\Dec.
31,1911
86,000 Dec. 31,1910
2.393.000 ....... do............
6.866.000 July 1,1910
Hi3,779,000 June 30,1912
31,1910
ii, 120,000 \(Dec.
....d o ............
19.588.000 Dec. 31,1910
5,522,000 /Dec. 31,1910
\Dec. 31,1911
3,047,00) Dec. 31.190S
Form of organization.
Communal *and private savings banks.........
Postal savings banks, savings department..
Postal savings banks, check department. . .
Government savings hanks.............................
Communal and private savings banks.........
Postal savings banks........................................
Caja de ahorros. . . / ..........................................
Communal and corporate savings banks___
Government savings banks.............................
Private savings banks......................................
Postal savings banks........................................
Municipal savings banks.................................
Postal savings banks........................................
Public and corporate savings banks.............
State savings toank............................................
Postal savings banks, savings department..
Postal savings banks, check department.. .
Communal and- corporate savings
„ banks.
Postal savings banks....................................................................
Private savings banks.
Postal savings banks.......................................
Private savings banks....................................
Postal savings banks.......................................
....... do..................................................................
Private savings banks....................................
Postal savings banks.......................................
Private savings banks....................................
Postal savings banks.......................................
....... do..................................................................
Communal and private savings banks........
Government savings banks...........................
State, including postal savings banks.........
Private savings banks....................................
Postal savings banks.......................................
Private savings banks....................................
Communal and trustees savings banks----Postal savings banks........... v.........................
Communal and private savings banks........
Number o«
depositors.
Deposits.
4,119,295
2,305,703
102,574
2,901,753
46,997
180,775
268,731
1,166,007
104,095
8,411,791
5,786,035
19,301
5,701
21,534,034
69,202
775,970
20,716
2,294,063
5,100,006
7,500,470
11,950,158
6,779
100,819
307,195
433,309
1,510,033
13,238
91,896
9,478
1,001,310
218,690
8,189,734
291,003
59,733
495,772
1,500,317
565,759
1,899,332
$1,161,149,241
46,623,889
79,682,452
194,534,158
11,679,721
9,129,423
10,543,275
174,182,302
2,255,464
754,255,333
329,974,970
934,380
1,288,268
3 ,993,775,184
11.863.592
21,894,118
20,075,888
472,879,910
324,279,617
73,106,674
91,896,942
121,327
955,592
3,086,571
41,718,485
66.039.592
2,887,566
3,616,685
337,925
135,886,457
11,616,820
784,117,885
44,068,779
1,396,856
46,931,094
216,755,326
12,645,957
303,196,216
Average
deposit
•ooount.
$381.88
21.14
776.83
67.04
248.53
32.53
39.23
149.28
21.67
*9.67
.R7.03
48.41
225.97
185.46
171.43
28.22
T69.10
306.13
63.84
9.75
7.69
17.90
9.48
14.95
96.30
43.73
218.39
39.36 ;
35.65
135.71 j
53.13
95.74
151.13
33.39
94.66
138.93
23.35
159.63
Average
deposit
per in*
habitant.
$40 64
3.63
2.79
25.93
1.56
2.13
3.09
63.18
.19
9.0>
8.33
.18
.67
61.98
48.23
1.05
.96
13.63
9.35
1.42
1.78
.04
.28
7.02
11.11
.08
.10
3.86
56.78
1.09
4.79
14.12
.45
2.40
39.25
2.29
*3.11
/N ov. 20,1911 Trustee savings banks.......................................................
\I>ec. 31,1911 Postal savings banks.........................................................
!
Mar. 31,1910 ....... do....................................................................................
British India*................................. i 244.127,000
Government, trustee, and joint-stock savings banks.
Australia, Commonwealth........... I 4,425,000 ,
_1910-11
.
Postal savings banks.........................................................
New Zealand................................... j l.oos.ooa ! { ^ * d 031,19IU Private savings banks.......................................................
Postal savings banks.........................................................
7.205.000 I/June 30,1912 Dominion
Canada *•..............................
Government savings hanks..........................
-do..........
I ♦1,745,000 !V 1909-10
British South Africa..
Government, post-office, and private savings banks.
1.679.000
1909-1(1
Government and post-office savings banks..................
British West Indies..
20.427,000 '
British colonies, n. e. s
1909-10
....... do....................................................................................
tinted Kingdom •.................................
45,2»9,tH)0
Total, foreign countries............. I 859,620,000
I nited States..........................................! 95,411,000
\June 14,1912
Philippine Islands..........................
\ 460,000 June 30,1912
Postal savings banks1
1.................
Mutual and stock savings banks..
Postal savings banks....................
1,849,043 i
12,370,646 i
1,378,916 !
1,600,112
3X0,714
51,508
146,310
35,031
222; 772
91,881
219,967
*258,083,128
859,027,319
51,478,416
289,039,353
68,641,934
7,375,302
42,6*3,232
14,171,966
25,103,835
6,301,465
12,921,863
109,725,758
11,096,223,947
300,000
28,000,000
10,010,304 j1 4,451,818,523
35,802 |
1,177,435
139.58
69.44 1
37.33 !
180.64 1
180.30
143.19
291.73
404.55
112.69
68.58
58.74
5.70
18.97
.21
65.32
68.10
7.32
5.92
1.97
3.72
3.75
.63
101.13
93.33
444.72
32.89
46.66
.14
12.91
AND
C l ’ R R EN CY,
BANKING
1The figures of population are for the nearest date to which the statistics of savings banks relate.
* Exclusive of 1,909 deposits of $173,0! 1 in savings banks in Faroe Islands, and of data for savings
vines departments
d<
of ordinary banks, which comprised 155,160 accounts, credited with
$*1,370,748 on Mar. 31.1910.
* Exclusive of Brunswick
« No separate data available lor private and communal savings banks in 1910. The ordinary banks savings banks, and land-credit banks of Hungary held 1,768,455 savings
.ici'ounts credited with 9699.288,107 on Dec. 31,1910.
* Figures for the Casa d'Economie.
* Includes 38,95* depositors in school savings depositories, credited with $105,060. The above total is exclusive ol $162,1^5,345 worth of securities held by the savings banks to the
credit of depositors.
7 The peseta has been converted at the rate of 18 cents. Data taken from “ Espafia EconOmica y Financiera,*' Oct. 21,1911. Exclusive of data for savings departments of com
mercial bulks, which comprised 124,657 accounts credited with 128,588,964 on Dec. 31,1910.
9 Exclusive of Government stock held for depositors, which, at the end of the year, amounted to $120,776,096 in the postal savings banks and to $12,934,743 in the trustee savings
banks.
* Exclusive of the population of the feudatory States.
*• Exclusive of data for special private savings banks, which on June30,1912, held deposits amounting to $40,828,420. The above total does not include the savings deposits in
(‘bartered hanks (“ Deposits payable after notice or on a tixed day” ), which on June 30,1912, amounted to $631,317,687.
m Number of offices, 12,823.
00
OO
84
BANKING AND CURRENCY.
Bank of England.
Issue Department.
liabilities .
ASSETS.
Notes Issued............................................... £51.241,210
Government debt.....................................£11,015,100
Other securities.........................................
7,434,900
32,791,210
Gold coin and bullion.............................
51,241,210
51,241.210
Hanking Department.
Proprietors’ capital..................................£14,553,000 •
Rest.............................................................
3 ,3tj0,154
Public deposits (including exchequer,
savings
banks,, commissioners
commissioi
_____.._______
of na
tional debt, and dividend accounts).
9,930,777
Other deposits........................................... 49,139,180
7-day ana other bills................................
18,040
Government securities.............................. £17,507,945
'Other
------------*
---------— _
securities.........................................
30,211,0_
N o te s ........................................................ 22,375.490
Gold and silver coin................................
912,633
77.007,157
77,007,157
Dated January 6,1910.
The above
>ve is the statement as it api>cars in the weekly returns.
I. G. Nairne, Chitf Catkin.
Balance Sheet, Jan. 6 , 1910.
(Arranged so that it corresponds in form with the balance sheets of the other banks given here.|
LIABILITIES.
|
ASSETS.
Capital and rest.........................................£17.913,154 j ('old coin and bullion and silver coin.. £33,703,843
Notes in circulation.................................. 2s.s«5,720 !
Government securities in both depart*
28,523,045
7-day and other bills................................
Ix.WO
inents......................................................
Public deposit*.........................................
9,<ttt>,777 ' Other securities......................................... 43,654,989
Other deposits........................................... 49,139. iso j
105, S72.877 !
105,872,877
[N
. ote.—All per contra entries, as those
we of the notes of the banks held by themselves, etc., are omitted
so as
to show
the real
real ii>osition
of the
-------"ow the
--------*- accounts.)
It will thus 1m* observed that the note issues are covered by #2.7 per cent cold.
The public and private deposits are covered in the banking department by 38.3 per
cent of notes am! coin, nearly all such reserve being in notes, which, measured by
actual «roM, would make a irold reserve of only about 25 per cent against the deposits.
It will be observed under the tables of interest rates that this narrow margin has
been supplemented bv frequent changes of the rate of interest to attract sold from
other countries when fcnirHsh commerce requires gold, and it would also appear that
in 1847, 1S.YT, and 1KI>7 the Hank of England was permitted to issue legal-tender
notes against commercial paper in times of panic in order to extend needed loans,
restore confidence, ami *iU‘eiruard the commerce and industry of Kngfaud.
BANKING AND CUBBENCY.
85
Imperial Bank qf Qtrwumy
Balamcb S u i t , D ec. SI, IOOb.
[ Marks converted at 2 0 -£ l .l
UABIUTKBa.
Capital and
•................................... £12,458.581
Notes in elrculatfcra..................................
96,771,474
Amount due on clearing and current
accounts...................................................
89,944,901
Deposits (not bearing interest)..............
25,167
Sundry liabilities and reserve for doubt*
ful debts...................................................
720,072
1,587,287
Net profits for 1007....................................
Gold in bars.........................£16,702,076
German gold coin...............
806
Divisional money......................................
40,007,010
Notes of imperial treasury (Hafchakassenacheinen)......................................
Notes of other banks................................
2,876,248
Bills held:
Doe within 16 days.................. .........
Due at later dates............................ .
22,660.990
28,960,520
Bills on foreign places..............................
61,600,110
6,457.406
......................................................
Securities.....................................................
Value of real property belonging to the
bank___ . . . . . .\T.. . .TTT^T.T?............
Sundry assets.............................................
146,756,872
£36,412,073
10,504,046
66,067,612
6,706,468
10,724,627
2,840,450
4,010,848
146,766,872
[ N ote .—A ll per contra entries, as those of the notes of the banks held by themselves, etc.. are omitted
so as to show the real position of the accounts.)
It will be observed that the Bank of Germany carries 50 per cent of sold against
its notes and 37.1 per cent of gold against its notes and deposits, but tne Bank of
Germany can also issue legal-tender notes against commercial paper of a qualified class.
It will be observed that the Bank of Germany also carries a large volume of quick
assets. Thus (he Bank of Germany, like the Bank of England and the Bank of
France, holds its reserves liquid and always available for loaning for commercial
and industrial needs.
20366 O— 5 8 -
BANKING AND CURRENCY.
86
Bank of France.
Balance Sheet, Dec. 31,1908.
[Francsconverted as 25—£1.1
LiABILITIES.
ASSETS.
Capital of the bank............................... £7,300,000 Coin and bullion at Paris and at the
branches................................................ £175,401,607
Reserve and profits in addition to cap
1,700,774 Bills due yesterday to be received
ital.......................................................
1,757
this day................................................
Notes payable to bearer in circulation
(bead office and branches)................ 197,972,408 Amount of bills:
Paris............................. £9,920,192
914,397
Drafts.....................................................
Branches..................... 18,886,626
Current account with the treasury___
7,199,491
28,806,818
Current accounts and deposit ac
Advances on securities:
counts:
Paris.............................
6,332,341
Paris............................. £22,780,727
2, ?21,524
Branches..................... 14,478,603
Branches...................
Dividends unpaid, etc..........................
25,502,251
l,S76,386
20,810,944
Advances to Government (laws of
June 9, 1857; June 13, 1878; Nov.
17, 1897)................................................
Government stock reserve fund..........
Disposable funds, Government stock.
Immovable funds, Government stock
(law of June 9,1857)...........................
Amount appropriated to special re
serve......................................................
Office and furniture of the bank and
buildings at the branches, etc..........
7,200,000
519,230
3,9*5,234
4,000,000
336,298
1,403,814
242,465,702
242,465,702
[Note.—All per contra entries, as those of the notes of the banks held by themselves, etc. , are omitted
so as to show tne real position of the accounts.)
This table shows that the Bank of France c arries 88 per cent in coin against notes,
the coin including both gold and silver, however, and carries 75 per cent of coin
against notes and deposits. Its authorized issue of notes is 5,800.000,000 francs, or
£232,000,000, which leaves a margin of over <£35,000,000 sterling, or $175,000,000
maigin of notes, besides the quick assets which it constantly carries, just as the Bank
of England does.
The need for large cash reserves in France is due to the fact that the check system
(currency) against deposits is not developed in France as in England and in the Cnited
States
Bank'of the Xethcrlands.
Balance Sheet, Mar. 31,1909.
[Guilders converted as 12=£1.]
ASSETS.
LIABILITIES.
Capital.......................................................... £l,tititi,667
l oin, bullion, etc..................................... £13,605,502
435,955 | Inland bills.
lulls................................................
3,514,247
Reserve.
!, 79K, 200 ■ Foreign bills.................................
bills..............................................
1,550,309
Notes in circulation............
Loan accounts.............................
173,200
accounts..........................................
4,144,240
Transfers................................
Advances
on
current
accounts.
539,
M9
accounts..............
1. ss2,021
Current accounts.................
Investments:
Discount oil—
10,521
332,662
Capital................................
Inland bills....................
3,060
Reserve..................................
432,708
Foreign bills..................
59,59S Sundry assets, buildings...........
255,721
Sundry liabilities................
90,360
Net profit for distribution.
777,41*»
25,777,416
|Note .— All per contra entries, as those of the notes of the banks held by themselves, etc., are omitted
so as to show the reol position of the accounts.)
This bank carries gold against its notes of 58 per cent and gold against notes and
deposits of 57 per cent, its deposits being very small.
87
BANKING AND CURRENCY.
National Bank of Belgium.
B alakcx Si i k
t
, D sc. 31,1908.
IFranc* converted as 25—£ 1 .1
LIABILITIES.
Capital paid up........................................... £2,000,000
1,444,899
Reserve fund..................... .......................
Notes in circulation................................... 32,275,122
Current accounts........................................
4,028,662
titamp duty, share of profits due to the
Government, employees’ superannua
tion, provident funds, dividends due,
1,029,776
etc..............................................................
£6,326,529
Specie and bullion
lelfiiturn,
Bills discounted (bills in Bel
CU
£ 19,738,332; IV*
foreign
bills, £7 ,421 ,l,639;
27,189,971
------------- 71)..
total, £27,150,971)
191,849
Securities due for collection.
2,066,765
Advances on Government securities.. .
Government and reserve fund securities 3,418,343
1,623,002
Securities for current accounts, etc........
40,778,469
40,778,469
[ N o n .—All per contra entries, as those of tbs notes of the banks held by tbemasives, etc., art omitted
to as to show tne real position of the accounts.)
The Bank of the Netherlands carries 58 per cent of gold against its notes and 57
per cent of gold against its notes and deposits. Thia bank only carries very small
line of deposits.
The National Bank of Belgium carries 19 per cent of gold against its notes and 17
per cent of cold against its notes and deposits.
The three great banks of England, France, and Germany, as above mentioned,
practically provide the gold accommodation needed by western European commerce,
the two latter banks, however, serving a useful local purpose.
a
Reserve of actual gold versus notes only, versus notes and deposits against deposits only.
Ratio of gold reserves against notes and deposits.
Versus
notes
only.
Percent.
Bank of England...................................... ................................................................
Relchsbank.............................................. ................................... ............................
Bank of France..........................................................................................................
Netherlands................................................................................................................
Belgium......................................................................................................................
1 Banking department.
62.7
6a o
88.0
68.0
19.0
Venus
Versus
both
notes and
s S "
deposits.
Pm csat. Pm 9—t.
28.3
27.1
76.0
67.9
17.9
126
E U R O PE A N
T able
00
oo
INTEK EH T KATEH.
I.—Rate of discount—Number of changes in each year at the Banks of England, France, Germany, Holland {1844-1909), and Belgium (18511909.)
Bank of England.
Bank of Germany
iany
Bank of France.
Bank of Holland.
Bank of Belgium.
Year
Per ct.
Perct
(*)
(')
Total
Fall.
Rise.
Total.
10
1
14
24
13
12
5
10
5
2
6
2
(»)
1
1
2
2
I
i
1
1
1
2
i
l
2
1
4
2
(>) I
1
1
2
2
2
Rise.
Fall.
Total.
Rise.
Fall.
Total.
Per ct. Perct. Perct. Perct. Perct. Per ct. Per ci.
<*)
1
(*)
(*)
(' )
(■)
0)
5
5
2
(*)
(*)
(2)
(*>
2
2
<*>
2
(*)
1
1
1
(* )
(*)
(*)
4
1
3
2
(*)
<*)
(*)
1
1
(2)
(*)
1
<*)
1
1
(2)
(l )
C)
(*)
(>)
0)
0)
(*)
(*)
0)
C)
1
1
(«)
0)
C)
0)
2
1
2
(*)
C)
C1)
1
C)
C)
(')
C)
(>;
(*)
2
2
1
(l)
0)
(l)
1
4
3
1
3
4
3
1
8
3
6
5
4
5
4
6
6
2
1
1
2
O
0)
C)
2
1
1
C)
<*)
O
0)
2
2
5
2
3
V)
3
4
2
2
1
2
(l)
3
6
4
2
1
3
6
9
5
4
4
4
2
6
5
11
6
3
3
5
6
4
11
4
7
2
8
1
6
1
2
4
(*)
2
2
0)
(*)
0)
0)
1
5
5
(»)
(*)
(*)
5
3
2
5
4
8
12
11
6
5
2
2
2
9
3
1
6
1
6
5
17
8
5
4
9
7
9
9
3
3
3
6
4
9
1
1
3
6
5
2
6
2
(*)
(*)
0)
1
2
1
7
(l)
(!)
0)
3
1
2
2
2
3
2
4
1
3
2
5
2
1
1
5
(*)
(‘ )
(*)
3
7
3
3
4
3
CURRENCY,
Perct. Perct. Perct. Perct. Per ct. Per ct.
1
1
(‘ )
0)
<»)
2 0)
1
0)
1
1
C1)
(>)
(>)
i
1
9
3
1
0)
(')
(') '
1
(' )
0)
C)
(')
1
I1) 1 O
C)
C»
0)
(')
(')
(!)
O
C)
1
1
2
(*)
C)
6
1
1
1
1
2
1
2
1
8
2
2
1
2
3
7
1
4
4
8
9
4
4
4
1
6
1
2
5
1
1
11
(')
0)
3
11
4
7
(')
(»>
3
5
1
4
(')
0)
1
12
5
3
8
3
15
7
11
4
4
16
3
2
6
14
1
2
5
7
3
2
2
0)
0)
2 ( l)
(>)
(l)
0)
0)
1
7
0)
(*)
I1)
2
4
4
10
Total.
AND
Fall.
BANKING
1844..
1845..
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.
Rise.
(’ )
3
2
3
4
1
2
1
1
2
4
4
4
202
i No change.
3
5
3
5
3
4
5
4
7
7
3
6
2
(')
4
3
2
5
4
2
2
2
1
2
3
6
2
241 |
6
6
7
7
7
6
9
8
11
12
4
12
2
(*)
3
6
6
6
6
6
3
3
2
3
6
7
6
6
443
3
1
3
1
(')
0)
0)
(»)
0)
0)
(')
2
0)
(>)
0)
0)
0)
(*)
0)
(»)
0)
(0
( ,) 2
2
<*>
(1)1
0)
(')
0)
1
2
1
2
(»)
50
2
0)
(*)
<»)
(i)
(1)1
0)
(>)
0)
(*)
(*>
(*)
0)
(»)
(*>
0)
0)
0)
(l)
0)
2
(')
65
1
1
1
2
4
2
2
0)
115
1
3
2
2
2
1
1
2
4
2
3
(•)
(*)
0)
(1)
0)
0)
(»)
!
I
1
1
2
2
4
4
1
1
1
1
4
3
2
2
91 1
1
2
1
(>>
2
2
2
3
2
2
6
1
3
5
2
2
4
3
4
2
3
2
1
3
5
6
7
3
4
3
2
1
7
5
4
f>
3
105
196
2
1
3
1
1
2
1
3
2
3
3
3
2
1
3
4
1
1
5
4
1
0)
(>)
(i)
0)
(0
4
<*>
0)
(>)
(>)
2
0)
0)
0)
0)
3
1
2
2
4
(*)
8
4
1
1
<>)
(>)
1
1
4
3
1
0)
1
0)
0)
4
3
1
6
2
2
1
1
4
3
1
1
2
3
I
1
1
2
3
3
3
2
94
94
188
1
3
1
* Operations commenced in 1851.
1
1
4 .
1
1
1
6
1
1
3
4
4
1
2
3
2
<■>
(*)
1
(>)
1
(>)
1
10
1
2
6
4
2
6
4
2
0)
0)
1
(>)
1
4
2
2
2
(*)
(»)
0)
(*)
1
3
0)
(l)
2
2
5
1
86 1
(>)
(*)
106
1
1
1
1
1
6
2
2
3
1
3
3
5
1
192
CURRENCY.
3
1
4
2
4
2
4
4
4
5
1
6
AND
1882 ...............................................................................
1383 .............................................................................
1884 ...............................................................................
______ _____________ __________
1*K
. _________
______________
_____ _
..............................
.
1888.................................................................................
1889 .............................................................................
1800 ...............................................................................
1801.................................................................................
1892 .............................................................................
1893 .............................. ; ...............................................
1894 ..............................................................................
1 8 9 5 ........................................... .................................
1896.................................................................................
1897.................................................................................
1898.................................................................................
1899...............................................................................
1900.................................................................................
1901.................................................................................
1902.............. .................................................................
1903.................................................................................
1904.................................................................................
1905.................................................................................
1900.................................................... .............................
1907.................................................................................
1908...............................................................................
1909.................................................................................
00
<o
T a b le
I I —Lowest and highest rates charged and extent of fluctuation during each year, Banks of England, France, Germany, Holland (1844-1909),
and Belgium (1861*1909)v
(»)
(l)
(*)
(»)
2
1
<*>
(')
4
(l)
(')
*
(')
(»)
1
(*)
4
3
3
3
3
4
3
3
3
3
3
3
3
3
4
5
0)
(')
(*>
(')
<*>
(>)
4
0)
(‘ )
(*)
(! )
(*)
(')
(>)
0)
3$
3
3*
4
3
4
4
4i
$
4
3*
Si
6
5
I'K5
5
5
44
5
5*
4
5
5
4
5
0
«
*7
7
4*
4
4
5
t>
7
4
5
1*
2
1
(l).1
2
2
H
2r
H
2J
1
2
2
1
2
2
3
9
2
1
1
4
1
3
2*
2
1?
* Operations commenced in 1*51.
1
2
2
4
4
44
4
3}
3
24
(l)
(l)
(')
(')
2J
3
24
2}
(«)
2J
3
24
2|
3*
3
(*)
3
3
2}
3
5
3
24
$
54
34
3
0)
(')
(l)
(*)
44
44
3
5
34
(*)
31
34
3
5
5
34
(l)
34
34
3
5
6
5
3
(»)
(*)
(*)
(')
2
14
4
24
l
(')
l
2
1
(*)
4
4
2
1
2
ik
2}
3
3
0)
24
24
(>)
24
(*)
3
34
4
3
(l)
3
(>)
3
34
4
3
3
2
4
t
*
1
4
l
24
2
1
•H
6
4
4
4
4
34
5
5
4
4
34
3
3
24
0)
3
3
(l)
3
3
0)
4
5
(‘ >
4
1
(‘ )
*
4
(l)
4
(‘ )
4
44
6
6
3*
4
4
(l)
0)
(‘ )
l
14
l
l
l
l
l
2
3
4
CURRENCY,
1 No change.
4
4
4
u
H
i
AND
5
5
3*
(>)
(l)
(»)
(»)
44
4
0)
(*)
3
(l)
(»)
24
(l)
0)
3
44
<0
92
BANKIHQ AND CUBBENCY.
T abls
I I I .—Rate of discount, 1844-1909— The number of days at sack rate, arranged
from the lowest rate to the highest.
Bank of
England.'
Rate.
2 per oent...................
2 f per oent...........
2$ per oent. . . .
3 per oent...................
3$ per oent___
4 per oent...................
4J per oent................
5 per oent...................
5§ p ercent.. . . _____
• per oent......... ........
6} per oent. .
7 per cent. . .
7} per oent
8 percent
9 percent
10 per oent
Imperial Bank
of Germany.*
Bank of
France.*
Bank of the
Netherlands.*
National Bank
of Belgium*
Num
Num
Num
Num
Num
ber of
ber of
ber of
ber of
ber of
Num
Num
Num
days
Num
days
days
days
Num
days
ber of per cent ber of perttttt ber of percept ber of
ber 9* percent
days. of total days. of total days. of total days. W
days. of total
(total(total—
(to ta l(total(total1,000).
1,000).
1,000).
1,000).
1,000).
3,409
28
3,599
5,8fi9
1,981
3,772
008
2,195
263
975
91
633
143
1
151
246
80
158
26
98
11
41
4
26
268
95
141
ii
4
e
Total................ 23,857
1,000
2,735
116
1,328
56
2,579
7,828
2,060
4,579
353
2,061
120
1,170
8
21*6
21
41
16
108
S29
86
192
15
86
5
49
5,058
8,013
3,737
2,167
811
1,823
375
260
150
135
212
336
157
91
34
76
16
11
6
5
23,857
1,000
12
1
2
3,073
644
12,192
1,626
4,094
707
970
72
269
no
37
63
129
27
511
68
172
30
41
3
11
5
1
2
23,857
1,000
3,169
9,412
2,966
3,416
698
944
378
540
147
437
138
159
32
44
18
25
27
*
23,857
1 Lowest rate 2 per cent; highest rate 10 per cent.
* Lowest rate 2 per oent; highest rate 9 per cent.
* Lowest rate 3 per cent; highest rate 9 per cent.
* Lowest rate 2 per cent; highest rate 7 per cent.
» Lowest rate 2} per oent; highest rate 7 per oent.
1,000
21,549
1,000
BANKING AND CURRENCY.
93
T a b l e I V .— R a t e o f d i s c o u n t , 1 8 4 4 - 1 9 0 9 — T h e n u m b e r o f d a y s a t e a ch r a t e , a r r a n g e d f r o m
th e h ig h e s t n u m b e r o f d a y s t o th e l o w e s t .
Bank of England.
Bank of Belgium.
1,000
It will thus be seen that these great banks holding the national reserves have been
able to furnish commerce with a very low rate of discount for nearly all the time and
only occasionally have been compelled to raise the rate to a high point.
These low rates illustrate the enormous value of these great banks to European com
merce and the urgent necessity for ad ion by the United States along similar line'*.
94
BAXKIXG AND CURRENCY.
AMERICAN INTERE8T RATES.
ItMMt'
Jan. 29.
Cash (in thousands)............
Loans......................................
Individual deposits.............
Bank deposits.......................
Apr. ft.
pm,:m
4,071, (Ml
4. OSS,420
I. olio. 494
June IK.
| Sept. 4.
SH20.000
4.141.17ft
:i,97S.4t»7
1.357.257
$651,233 ! $626, ot3
4,206,890 1 4,298.9*3
4,055,873
4.199.93K
1.555,2ft7
1,589,001
Per cent.
P tr a n t.
Nov. 12.
$634,550
4,366,045
4.289,7Ti
1.509,043
Hate* for motny.
New York call loans:
Stock exchange—
Range................................
Average............................
Banks and trust companies.
Time loans:
:Wdays.....................................
60 days.....................................
90 days.....................................
4 months..................................
5 months..................................
« months..................................
7 months..................................
Commercial paper:
Double names—
Choice 60 to 90 days___
Single names—
Prime, 4 to 0 months . . .
(*oo*!, 4 to ft months___
2 *10
M
4 - ti*
5
K
5 ft{ 1i
5 - ft"
5 ft
5 ft
5 - V.
PtrcfHt. |i Per cent.
2 ft
3*
21 :<
2 4(1
:{
4 -41
7 7)
ft.J 5|
Vi
41 5
4}-5
if 5
5|-5|
ti -27
ft 1:
!I
til fti
tit ftj
7 (U6* ft ft -
s
71
7*
64
ftj
ti
6*
4 - :*
4| ft
ft
4}
42 ft
5 tiA
ft - 64
ft - 7|
5.; .
.»! « I
1907.
Jan. 2ft.
Mar. 22.
May 20.
Individual deposits.......
Bank deposits................
St,95,503
4,4ti3,2t»7
4, U5,(i50
l,(i7ft,92ft
$ft5ft,22G
4,535,844
4,269,511
l,(i37,15S
$091,581 j1 $701, (123
4,(131,143
4, (>78,583
4,322,880
4,319,035
1,085,540 | 1.595,493
Rat<* for mom y.
New York call loans:
Stock exchange—
P tra n t.
Per ant.
U 45
5
2 - 3
P tra n t.
2 - 25
('ash (in thousands).
Range.............................
Average..........................
Banks and trust companies.
Time loans:
30 days............. .......................
HOdays.....................................
90 days.....................................
4 months..................................
5 months..................................
ti months..................................
7 months..................................
Commercial paper:
Double names—
<*hoice, 00 to 90 days-----Single names—
Prime, 4 to o months—
(food, 4 to 6 months____
.
k V
Dec. 3.
$060,785
4,585,337
4,176,873
1,387,88ft
i
1
i
3* - '**
ft
!
53- 7
ti
5 1 -7
Aug. 22.
l*-2|
M
P tra n t.
12-fi *
3
2 - 2*
5
5
(i
ti
-ti
t»A
-7
-7
Per cent.
2-25
14
15-18
8-12
8-12
7- 8
7
t'- 8
ft- 7
i - l
5 j- ft
55 ft
4* 4!
«|-4j
21 •?
5*
ti
5 3| j
ti tiA
8nom.
5 5J
S|-fi
ft 4
H -7
8 nom.
(*4 |
5J- (►
»
t»A- 7 i
11
ti|
ti - ft!
t*4- 7
95
BANKING AND CURRENCY.
am briban
INTEREST
rates — continued.
1908.
Gash (in thouMndf).
Individual deposits.
Bank deposits..........
Feb. 14.
May 14.
July 16.
Sept. 23.
9788,896
4,422,863
4,106,814
1,684,426
9861,326
4,628,346
4,312,666
1,692,421
9849,018
4,616,676
4,374,661
1,822,863
9868,424
4,760,612
4,648,136
1,941,666
Percent.
Percent.
Per cent.
Percent.
Nov. 27.
9844,769
4,940,367
4,720,294
1,968,831
Rates for money.
New York call loans:
Stock exchange—
Range............................
Average.
Banks and[trust
tri
companies.
Time loans:
30 days..................................
COdays..................................
90 days..................................
4 months..............................
5 months..............................
6 months..............................
7 months..............................
8 m onths.............................
Commercial paper:
Double names—
Choice, 60 to 90 days..
Single names—
Prime, 4 to 6 months.
Good, 4 to 6 months..
1J-2
1 -2
1-ii
1 -1<
11
1
1 -2
Per cent.
1—
3
i-ll
2 -24
2 -3
&
6f-6
6 -6
6H>
n-4*
3*-4
3M
3*-4*
W|
3*-4
4 -6
3J-4*
4*-6
4 -5
4»
1909.
Apr. 28.
June 23.
Sept. 1.
$800,117
4,840, 7(56
4,699,682
2,035,169
S87S, 457
4,963,110
4,826,060
2,046,753
$885,915
5,035,883
4,898,576
2,034,663
$854,071
5, 128,882
5,009,893
2,018,813
Per cent.
Per cent.
Per cent.
Per cent.
Feb. 5.
Cash (in thousands).
Individual deposits.
Bank deposits..........
Nov. 16.
$804,860
5,148,787
5,120,442
1,886,260
Rate* for money.
New York call loans:
Stock exchange—
Range................................
Average............................
Banks ana trust companies.
Time loans:
30 days.....................................
60 days.....................................
90 days.....................................
4 months..................................
5 months..................................
6 months..................................
7 months........ .........................
8 months..................................
Commercial paper:
Double names—
Choice, 60 to 90 d ays___
Single names—
Prime, 4 to 6 months___
Good, 4 to 6 months___
l*-3 .
2J
l*-2
'*1;
1H:
n!
ih
2J-3
Per cent.
3H>
21-2|
2*-2j
%HI
‘ 2!
2 -2|
2-3
2;-3
3 -3*
3J-4
3 -3J
3 -3}
3 -3*
3H ,
3M
3J-*
4 -4*
4 -4 1
4-4J
4*-5*
4 -5
4J-5
5 -6
5H*
96
BANKING AND CURRENCY.
ambrican interest rates — continued.
1 9 1 0.
Cash (in thousands)........................................
YrfHUlS..........
Individual deposits.........................................
Bank deposits...................................................
Jan. 31.
Mar. 29.
June 30.
Sept. 1.
<833,079
5,229,503
5,190,835
1,966,594
$834,895
5,432,093
5,227,851
1,988,000
$820,773
5,430,150
5,287,312
1,900,135
$851,685
5,467,638
5,145,658
1,943,691
Per cent.
Per cent.
Per cent.
Per cent.
Nov. 10.
$816,071
5,450,644
5,304,788
1,906,360
Rates for money.
New York call loans:
Stock exchange—
Range........................................... .
Average...............................................
Time loans:
60 days......................................................
90 days........................................................
4 months...........................................
5 months....................................................
6 months...................................................
Commercial paper:
Double names—
Choice, 60 to 90 days........................
Single names—
Prime, 4 to 6 months.......................
C.ood, 4 to 6 months.........................
*-14
4j
2 11
*H
4 -4J
4*- 5
4J- 5
4 -51
4 -5±
4 -5 *
4 -6
4 -5
4J-5
5*- 5}
4f-6
4|-5i
5 -6
5*- 6
6 - 6*
41-6
5p6l
31-4
3i-4J
3^-44
3}-4i
3J-4J
313I
4J- 5
4 -5
41-5
4J—5|
Per cent.
* i- 5
3 i- 4}
4-4}
4 ~ 4J
4-44
4-4$
4 j- 5
5 -5 *
1J—13
2
3 -3*
1911 •
Cash (in thousands)........................................
Loans.................................................................
Individual deposits.........................................
Bank deposits..................................................
Jan. 27.
Mar. 7.
June 7.
Sept. 1.
Dec. 5.
$856,267
5,402,642
5,113,221
1,991,188
$908,036
5,558,039
5,304,624
2,224,719
$946,331
5,610,787
5,477,991
2,147,441
$895,475
5,663,411
5,489,011
2,088,187
$862,794
5,659,109
5,536,042
2,085,106
Per cent.
Per cent.
Per cent.
2 -2k
Per cent.
Rates for money.
New York call loans:
Stock exchange—
Range................................. ...............
A verage..............................................
Time loans:
30 davs.......................................................
60 davs.......................................................
90 davs....................................... ...............
4 months....................................................
5 months....................................................
6 months....................................................
Commercial paper:
Double names—
Choice, 60 to 90 davs......................
Single names—
Prime, 4 to 6 months.......................
Good, 4 to 6 months.......................
Per cent.
2|
U11
2*~6
4
2*-2J
2f-3
3 -3J
3 -3J
3 -3*
2V-3
2f-3
2^3
3 -3\
3J-3*
2*-3|
3J-3J
3M
32-4
32-4
31-5
3M *
3H 1
4 -4$
4 -4*
4 -4J
3H J
3J-4J
3J-4
4 -5
4 -5
3*-4\
41-5-
3J-4J
4S-5
3|-4
4i-5
41-5
5 -5*
41-5
4*-5*
3J
li-2*
2J
3
3 -3}
3 -3$
3J-4
3H
3H
97
BAXKINC. AXD CURRENCY.
ASI K H K 'A \ I NTKKEST BATKS— C 0 1ltillU e«l.
i» i* .
Apr. lv
June 14.
So|»i. 4.
2,3*1,214
SMI.tMl
‘•.M2, i«Mi
.*>,712,051
2.24S.2 4
.*>.903,1**
.*>,825,461
2,17*. I«3
$M»,9SU
6, OKI,Ml
*>,*91,670
2.177,4#*
Ptr ctul.
Ptr etnl.
Ptr ant.
Ptr etnl.
Keli. 3».
C a s h ...................................................
SH.V1,497
Loans.............................................
Individual deposits.....................
Bank <le|>osits...............................
X jv . 2(>.
<K‘>9,<NM
6,Mix,982
5,944,561
2,101,805
Jiilct for mrmtf.
Call loans, New York:
Stock fxriuuv*-
Kanjw.......................
2
Average......................
Time loans:
30 days...............................
40 days...............................
90 days...............................
4 months...........................
5 months...........................
6 months...........................
Commercial pa|wr:
Double names—
Choice, 00 to 90 days..
Single names—
Prime, 4 to 6 months,
tiood, 4 to 6 months..
i f
:» -:»i
3
2 -3
2]
« •
3
3 -3J
;!:!!
:»M
3J-I
4 -4J
‘H I
9 11
$*.03,417
Cadi (la thousands)......................................
Loans...............................................................’ *.125,029
Individual deposits....................................... • 5,«S5,492
Bank deposits................................................ 1 2.310,5M
Rale*for montf.
$ k.hk, 2«<3
S.IT*,096
5,9tW, 7*7
2,192,345
H-»J
5 ~6
(»)
3J-4J
3H>
t> -6J
<*)
(')
June 4.
Aug. 9.
9913,9*2
A. 143,02*
5.953.461
2.120,551
$899,769
G, 16ft,555
5,761,338
2,1OK,550
(
S ew York rail loans:
Stock exchange—
Range...........................................
Average........................................
Time loans:
tiOdavs................................................
90 davs................................................
4 months.............................................
5 months.............................................
• months.............................................
Commercial paper:
Double names—
Choice, 60 to 90 days..................
Single names—
Prime, 4 to 6 months.................
Good, 4 to 6 months...................
Per cent.
2 11
1!
5J-6
6-6J
fi -6J
1 None compfled.
(l)
<‘ >
34-4
n
41 ‘
Apr. 4.
<‘ )
(*)
41-6
5 -ti
.*>-6
.• -ti
5 -6
IM S .
Feb. 4.
Ptr etnl.
<•)
(»)
0)
98
BANKING AND CUBBENCY.
Reports of New York City banka from January, 1907, to January, 1908, shotting
loans, individual deposits, and reserves during that period.
Banks
Date of call by office of the comptroller. reporting.
Jan. 38,1907................................................
Mar. 22, 1907................................................
May 20,1907................................................
Aug. 22, 1907...............................................
D«0. J, 1907..................................................
40
37
39
38
40
Loans.
Deposits.
1728,319,528 $857,875,410
688,703.472
803,590,176
866,332,979
752,566,083
712,121, OAK 825,703,785
775,1S1.207
824,394,509
Reserves
held.
$230,116,200
211,379,340
233,329,867
221,349,657
180,448,128
Percent
of
reserves.
20.82
26.30
26.93
26.81
21.89
It will be observed that the March statement shows loss of forty millions
loans and fifty-four millions of deposits; the May statement a relative increase
of sixty-four millions loans and sixty-two millions increase in deposits; the
August statement a relative decrease in loans of forty millions and a decrease
in deposits of forty-one millions; the December statement an increase in loans
o f sixty-three millions, with no increase of de|*>sits. These violent changes
and the violent fluctuations of the interest rates, running to 45 per cent in
June and 125 per cent in October, explain the panic and the ruinous changes
In stock values due to these contractions and expansions o f credits by the
unscrupulous manipulators of credits.
Fluctuation o f principal ttochi during 1907.
Value of stock.
Name.
Range o'
prices.
Capital.
Jan. 12.
15,000,000
10,020,400
85
131,551,400
152, 165,500
112.370.900
140,577,300
178.202.100
110.900.000
5.000.000
22,553.600
38,THO,000
16.000.000
105.470.100
130
50ft,405,200
38,000,000
20,006,350
42
183.
132
31:
158
3'r>i
Hi
10}
86|
a*
10
02|
74|
18*
16J
15*
13
16
81
80
72*
00*
122
123
104
24
136
116
}
$
140^
150
431
1«*
Aug. 10.
06
120}
22
180
July.
12|
138
32
117*
171}
122
June 8.
07J
13*
110
1101
May.
144
20J
1«U
110
37
14
146.
21
96
22*
127}
*
10*
112
148*
36]
130
27|
105
136}
37*
14
143)
142.
41
145
20
110
34
12
Sept. 7.
Oct. 5.
<1
Nov. 0.
5*
71*
50*
11
12
11
54*
62
48
90
80
171
113*
08
Dec
61
48j
10
30 to
7
•04 to
*
103
82:
1«
21*
30
141
31
36
12*
30
28
54
131)
25|
40
127
111*
Uti|
2AJ
241
27J
47
70
142*
3
142
128
102*
20
26
85
127
31!
12
141
»i
133
10
122
11
12|
22
08;
40
27
1HJ
20]
20
y
I
16J
25*
135
114
a
27 to
130 to 33
22
10*
186 to S8
125 to 55
52 to 10
348 to 107
174 to 80
42 to 10
ititi to
54 lo i:<
141 to 1>
190 to 44
5.‘>to 8
36 to 6
23.) to 32
CURRENCY.
43
110)
21|
193.287.900
Apr. 6.
AND
Volume of sale* for the
week, In number of
■hare*...............................
919.830.000
Mar. 4.
BANKING
Allis-Chalmers Co.......
Amalgamated Copper
Co...............................
American Boet Sugar
Co...............................
American Ice Securi
ties Co........................
American Telephone it
Telegraph Co............
Baltimore 6 Ohio.......
Erie...............................
Oreat Northern...........
New York Central___
Southern Railway.......
Tennessee Copper.......
Tennessee Coal <<( Iron.
Texa* Pacific...............
Third Avenue..............
Union Pacific..............
United Staten Steel
Corporation..............
Wabash.........................
Weetinghouse E . i U .
Feb. 4.
4,032,000 6,205,615 5,802,476 6,176,753 3,786,060 3,100,313 2,301,758 4,436,082 2,588,258 2.481,097 1,817,501 4,613,552
CO
CO
BANKING AND CURRENCY.
100
Condition o f 25,193 banks o f all kinds, as shown by the Report o f the Comptroller o f the
Currency, June 30, 1912.
CO M PA R A TIV E B A N K
R E S O U R C E S , 1804—1912.
[The national-bank notes are included in the demand obligations. The 5 per cent redemption fund is
also included in the total cash.)
[ Amounts in millions.)
Years.
1864.
1865.
1806.
1867.
1868.
1869.
1870.
1S71
1872
1873
1874
1S75
1876.
1S77.
1878.
1S79.
1880.
18X1.
1882.
1883.
1SS4
1885.
1886.
1887
1888.
1889.
1890.
1891
1892.
1893
1894.
1*96 .
1897..
1898
1899..
1900 .
1901
1902..
1903..
1904 ,
1905..
190t).
1907..
1908..
1909..
1910..
911..
1912..
1912—25,000 banks in above tab!*1.
Total
Capital
Loans
(iovernTotal
demand
and
and
ment de cash in
obliga
surplus. discounts. posits.
all banks.
tions.
$391.0
451. 5
’>61.2
577. 7
595. 8
615.7
646. 4
659. 8
748.0
748. 5
750. 2
846. 8
863. 9
874. 7
825.4
82*'.. 5
825. 4
864.3
900. 7
973. 4
1.036. 0
1,040.0
1,080.5
1,267.0
1,347.4
1,425.2
1,552.7
1,648.9
1,721.4
1,781.1
1,752.2
1.759.6
1,756v3
1,725.2
1.724.7
1.734.7
1,906.9
2.031.7
2 .29S. 5
2.595.3
2.753.4
2.902.7
3.634.6
3 832.5
4.018,0
4. 176.9
$70. 7
362.4
" *58. 0
550. 4
39. 1
588. 5
33.3
655. 7
28.3
686.3
12.8
719.3
13.2
789. 4
11.1
871.5
12.4
1,439. 9 1
15.1
1,564. 5 {
10.6
1,748. 1
10.2
1,727. 1
11. 1
1,720.9
10.9
1,561.2
25.6
1,507.4
252.1
1,662. 1
10.7
1,901. 9
12.2
2,050. 3
12.6
2.133.6
13.9
2.260. 7
14.2
2,272.3
14.0
2,456.7
17.1
2,944.9
23.2
3,161.1
58.4
3,475.2
46.7
3.842.1
30.6
3,965.9
25.9
4,336.6 I
14.2
4.368.6
13.7
4,085.0
14.1
4.268.8
13.2
4,251. 1
15.4
4.216.0
16.4
4,652.2
52.9
5,177.6
76.3
5,657.5
98.9
6.425.2
99.1
7.189.0
124.0
7, 738.9
147.3
7,982.0
110.3
9,027.2
75.3
9,893.7
89.9
10. 7f>3.9
180.7
10.438.0 1
130.3
11,373.2 I
70.4
12,521.7 !
54.5
1 13.046.0 |
48.4
58.9
13.953.6 !
$198.3
$544.8
199.4
830.5
231.9
1,122.7
205.6
1,101.7
2(H). 7
1,291.8
162.5
1,337.5
187.7
1,356.3
194.0
1,578.2
177.6
1,693.3
218.2
1,776.5
252.2
1,875.8
238.7
2,115.3
226.4
2,084.5
230.5
2.115.0
214 6
2,043.4
216. 3
2,254.0
2,279.7
285.5
295.0
2,621.5
287. 1
2,781.9
2,899.5
321.0
321.2
2,875.9
3.017.5
414.3
375.5
3,067.1
432.8
3,498.2
446.1
3,636.6
499.1
3,953.8
4,219.6
478.3
478.1
4,346.2
586.4
4,820.3
515.9
4,8%. 1
688.9
4,837.1
631.1
5,113.1
531.8
5,160.7
628.2
5,221.7
687.8
5,831.0
723.3
6.944.4
749.9
7,603.1
807.5
8.878.7
9,838.1
848.1
857.2 10,060.1
990.6 10,509.9
994.1 11,871.4
1,016.4 12,816.6
1,113.7 13,828.2
1,368.3 13,528.5
1,452.0 14,743.2
1,423.8 16,013.5
1,554.1 16,640.5
1,572.9 17,790.0
Per cent
of cash
to obliga
tions.
$18.5
24.0
20.0
17.1
15.5
12.1
13.9
12.2
11.6
12.3
13.4
11.2
10.8
10.8
10.5
9.6
12.5
11.2
10.5
11.0
11.1
13.7
12.9
13.1
13.0
14.0
11.3
11.0
12.1
10.7
14.2
12.3
10.3
12.0
11.7
10.4
9.8
9.0
8.9
8.5
9.4
8.3
7.9-6.5
8.0-6.6
10.0-8.6
9 .8-8.8
8.8-8.0
9 3 -8 .0
8.2
and approximate stocks of money, in the aggregate and per capita, in the principal countries o f the world, Dec. S1, 1911.
Stock of silver.
Stock of gold.
Monetary unit.
1
2
3
4
6
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
67
38
39
40
41
42
43
44
45
46
47
48
49
Population.
In banks
and publio
treasuries.
In circula
tion.
T ota.
Thousands. Thousands. Thousands. Thousands.
Dollar..
Crown.
Franc..
94,800
49,400
7,300
1,429,800
265,700
36,500
Pound sterling___
Dollar......................
Pound sterling___
4.400
6,200
45.000
207,800
139,200
1375,000
Pound sterling and
rupee.
Pound sterling___
Dollar......................
295,000
■44,600
7.800
1,600
50,400
6,800
Lev............
Peseta___
Crown
Piaster___
Markkaa..
Franc........
Mark.........
Drachma..
Gourde___
Lira...........
Yen......... .
Peso..........
Florin____
Crown___
Milrels___
Lei.............
Ruble.......
Dinar........
Tical........-
4.000
Peso..........
Boliviano.
Miireis___
j
|
;
i
7.000
2.300
20,500
3.500
4.300
1.500 ;
Pew ..........
Dollar.. . . .
Sucre.. . .
Pound sterling.
F lorin.... . . . . . .
Franc...............
Peso...................
Sol.......................
Peso..................
Bolivar..........
Peseta.. . . ___
Crown................
Franc— . . . . . .
Piaster___
Peso.....................
1,100
2,600 |
19,700
5,400
3.300
24.000
5.300 i
1. 040. 600
$34.81
13.70
25.56
50.54
22.29
15.80
2.27
1.24
2.59
12.76
2.56
52.81
36.29
20.95
.14
.48
.16
8.38
4.25
2.56
142,400
45,400
Nil.
Nil.
N il.
Nil.
Nil.
Nil.
347,400
Nil.
Nil.
1,000
22,700
Nil.
52,000
Nil.
Nil.
Nil.
Nil.
Nil.
Nil.
N il.
4,800
5.000
7,900
14,300
500
63,700
253.600
3.000
1,500
1.400
64.200
4.000
29.000
3.700
33,100
12,600
78,800
1,300
52.200
Nil.
Nil.
Nil.
9,400
700
25,000
8,500
9,400
700
25,0 0
8,5) •
1,300
1,:>\>
42,000
38,300
< 182,700
10,600
16,900
133,900
19,200
4,600
8,000
75,600
20,800
14,500
32,700
946,300
1, 200,000
24S.300
7.S00
116,500
500
Nil.
2.100 !
5,400
100
15/200
8.300
15 200
600
74.900
22,800
31.000
14.900
1.300
$8.07
4.00
19.04
45.000
100
800 '
4.500
$7.76
2.49
1.52
20.000
19.000
200
100
$18.98
7.21
5.00
Nil.
4.400
3.400
300
100
764,500
197,600
139,000
97,400
2,100
3.300
Thousands.
735.900
122.900
79,100
115,200
65,400
2,100
Thousands.
7.700
116,800
15,000
334,600
Thousands.
10,000
7.700
116,800
222,400
1710,800
1,900
30,
611
Thousands.
3,900 I
2,500 !
138,200
3.200
34,700
127,500
100
Oold.
Nil.
Nil.
Nil.
14,600
2
1,
288,
117,
31,
56,
16,
Total.
167.600
122,900
2.400
18,500
174,500
3,700
565,000
635,
• 205,
Limited
tender.
568,300
Nil.
8,700
i9,
6.
I
Full tender.
1,799,600
356,300
335,800
7, 700
2,100
2,700
11.300
2.900
39.300
64.900
2,600
1,500
33.900
52,200
15.000
5.900
2.400
5.400
6.800
160,100
2,800
7.000
369,800
90,600
Par capita.
Uncovered
paper
3,100
213,100
26.000
65,700
142,400
1,400
5. 107. bOO
Nil.
Nil.
Nil.
Nil.
Nil.
Nil.
Nil.
Nil.
Nil.
Nil.
Nil.
Nil.
Nil.
400
300
100
11,100
10,000
20,000
19.000
4,800
5.000
7,900
14,300
500
411,100
253,600
3.000
2,500
24.100
64.200
56.000
29.000
3.700
33.100
12,600
78,800
1,300
52.200
400
300
100
Nil.
2,400
4,300
10,800
256,800
8,600 :
13,500 |
26,400
9,200
2,400
4,300
10,800
256,800
8,600
13.500
26,400
9,200
1,097,500
1,523,700 I
2,621,200
7,500 |
9,900 1
Silver.
1.93
1.20
20.00
4,900
2,100
01
2.38
2.92
1.26
.17
10.46
3.90
1.15
1.67
.71
1.23
3.73
4.92
1.54
6.13
1.85
.49
.46
7.46
692,200
35.47
3.39
1.34
.30
.14
2.43
8,200
182,300
101,700
51.200
64,700
8,700
69.900
43.200
2,000
5.68
'•77,900
19,000
' 10,000
1,700
100
300
600
42,900
.87
.33
2.00
1.34
3.00
13.82
1.19
10.82
4.81
19.91
5.93
.26
89,900
3,567, 500
3.60
1.00
19.00
2.71
8,000
800
76,000
34,700
27,900
1.22
1.00
.53
3.90
4.15
13.04
1.59
4.09
1.10
1.74
Total.
.78
10.94
20.81
11.88
14.19
16.17
3.66
30.53
3.16
1.69
2.26
8.51
2.57
2.08
12.81
8.67
2.69
4.81
5.91
2.32
17,300 i
6,600 i
14.900
245,900
276,100
27,600
Paper.
2.47
6.41
.58
5.13
6.26
4.24
10.62
5.47
5.38
1.95
3.41
10 97
3.62
12.94
6.35
1.75
.30
5.60
22.38
23.52
18.01
8.96
47.25
11.30
13.46
9.40
14 60
5 55
9.22
28.70
13.83
21.76
13.01
6.40
4.53
7.77
98.89
.87
3.80
5.43
2.33
1.13
135.70
4.56
10.70
.33
3.00
6.00
53.63
2.00
7.28
.31
3.85
6.43
S. 45
16.96
8.00
2.33
5.60
8.00
8.00
72.63
3.24
25.00
5.65
27.71
12.83
32.45
7.03
18.96
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
j
is table signify that no satisfactory information is available
res
of
igdom prior to that lor 1910 were lor coin only; these figures include *100,000,000 for bullion in the Bank of England; also 112,200,000 gold belonging to Indian gold-standard
ency reserves. Fred. J. Atkinson, accountant general of India, in 1908, estimated the active rupee circulation at 2,040,000,000 rupees: small silver coin at 140,000,000 rupees,
he Malay States, and Johore
calculation made by Messrs. P. Arminjon and B. Michel in 1908, who estimated the stock of gold in the country at from 33 000 000 to 41.000,000 Egyptian pounds. The mean
s table last year. Since their estimate was made the net imports o, gold into Egypt to Dec. 31,1911, have amounted to $28,919,061; but as there is said to be a considerable
o change in the estimate of the monetary stock has been made
>9.
iai Bank of Germany. No definite information as to other holding*. The coinage o? gold since the establishment of the Empire, less recoinage, amount* to ^1,125,023,299, but
s has been an industrial consumption.
1to a eold basis; that is, 100 pesos equai
a Honduras (gold-standard countries).
t, 63-1, pt 2.
(To face page 80)
No. 2
I United State' gold dollar.
Statement shotting money in circulation from 1860 to 1912.
Gold in cir
culation.
$228, 304,775
246, 400,000
309, 697,744
570, 394,038
644, 641,478
689, 971,860
648, 591,701
63V,126,128
655, 886,198
640, 573,364
651, 284,427
693, 616,114
716, 548,708
728, 799,412
751, 083,051
729, 101,947
702, 609,388
697, 314,883
704, 132,634
110, 505,362
225, 695,779
315, 312,877
358, 251,325
344, 653.495
340, 624,203
341, 668,411
358. 219.575
376, 540,681
391, 114,033
376, 481,568
374, 258,923
407, 319,163
408, 568,824
408, 535,663
495, 976,730
479, 637,961
454, 905,064
517, 589,688
657, 950,463
679, 738,050
610, 806,472
629, 790,765
632, 394,289
617, 266,739
645. 817.576
651, 063,589
668, 655,075
561, 697,371
613, 244,810
599, 337,098
590, 877,993
589, 295,538
610, 724,154
United
States notes
in circula
tion.
Average
gold value
of United
States
notes.)
$72, 865,665
312, 481,418
415, 115,990
378, 916,742
327, 792,305
319, 437,702
328, 571,665
314, 702,094
324, 962,638
343, 068,970
346, 168,680
348, 464,145
371, 421,452
349, 686,335
331, 447,378
337, 899,344
320, 905,895
301, 644,112
327, 895,457
328, 126,924
325, 255,427
323, 242,177
318, 687,214
331, 218,637
323, 812,699
326. 667.219
300, 000,040
316, 439,191
334, 688,977
343, 207,360
309, 559,904
319, 059,426
266, 589,602
263, 648,985
224, 249,868
245, 954,622
284, 569,022
308, 351,842
313, 971,545
330, 045,406
334, 291,722
334, 248,567
333, 759,425
332, 420,697
335. 940.220
342, 270,055
339, 396,322
340, 118,267
334, 787,870
338, 989,122
337, 097,321
88.3
68.9
49.2
63.6
71
72.4
71.6
75.2
87
89.5
89
87.9
89.9
87
89.8
94.4
99.2
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Silver in circulation.
Gold certifi
cates in
circulation.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
$15, 279,820
7, 963,900
5, 759,520
5, 029,020
59. 807,370
71, 146,640
126, 729,730
76, 044,375
91, 225,437
121, 094,650
117, 130,229
130, 830,859
120, 063,069
141. 093.619
92, 642,189
66, 339,849
48*381,309
42, 198,119
37, 285,339
35, 811,589
32, 655,919
200, 733,019
247, 036,359
306, 399,009
377, 258,559
465, 655,099
485, 210,749
516, 561,849
600, 072,299
782. 976.619
615, 005,449
802, 754,199
943. 435.618
943. 435.618
Standard
silver dollars.
Total cir
' Silver certificulation
National
; cates in
bank notes
per capita
Subsidiary I circulation. in circulation of national
silver.
bank notes.
8
8
(*>
$1,^09,251
81, 036,439
20, 110,557
29, 342,412
32, 403,820
35, 651,450
40, 690,200
39, 086,969
52, 668,623
55, 548,721
55, 527,396
54, 457,299
56, 278,749
58, 826,179
56, 817,462
56, 929,673
52, 564,662
51, 980,043
52, 110,904
51, 940,281
58, 482,906
01, 481,426
65, 889,346
06, 921,323
68, 747,349
72, 391,240
71, 313,826
73, 584,336
77, 001,368
81, 710,444
76, 328,657
71, 987,900
72, 432,514
72, 446,049
70, 399,574
i)
$53, 918,322
61, 346,584
48, 511,788
46, 839,364
46, 379,949
46, 474,299
45, 660,808
43, 702,921
46, 173,990
48. 583.865
50, 362,314
51, 477,164
54,-032,587
58, 219,220
63, 293,704
65. 469.866
58, 510,957
00, 350,014
00, 204,451
59, 016,409
04, 056,920
69. 005,824
70. 100,988
79, 235,214
85, 721,228
92, 726,694
95, 528,343
101, 437,707
111, 509,624
121, 777,401
124, 178,165
132, 331,798
135, 583,731
139, 421,723
145, 034,198
i
;
;
!
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
None.
$7,080
414,480
5, 789,569
39, 110,729
54, 506,090
72, 620,686
96, 427,011
101, 530,946
88, 116,225
142, 118,017
200, 759,657
257, 155,565
297. 556.238
307, 235,966
326, 693,465
326, 823,848
326, 990,726
319, 022,941
330, 657,191
357, 849,312
390, 126,510
402, 136,617
408, 465,574
429, 643,556
446, 559,662
454, 733,013
461, 138,698
454, 864,708
471, 520,054
470, 211,225
465, 287,705
477, 717,324
487. 597.238
453, 543,696
469, 224,400
$31, 235,270
146, 406,725
276, 116,170
286, 889,020
295, 151,410
292, 876,157
289, 719,714
314, 132,781
332, 276,164
340, 880,078
340. 265.544
340. 546.545
310, 120,702
301, 289,025
311, 724,301
321, 404,990
337, 415,178
349, 746,293
352, 464,788
348, 598,488
330, 689,893
309, 124,222
304, 976,044
276, 855,203
245, 306,780
207, 220,633
181, 604,937
162, 220,646
167, 221,517
174, 669,786
200, 718,200
200, 953,051
215, 108,122
226, 318,003
•
222, 990,987
237, 805,439
300, 115,111
345, 110,800
345, 476,516
399, 996,709
433, 027,835
480, 028,849
548, 001,238
589, 242,125
631, 648,680
665, 538,806
683, 659,535
687, 701,283
705, 142,259
$0.09
4.12
7.77
7.92
7.98
7.75
7.51
7.94
8.18
8.22
I
!
|
j
7.97
7.74
7.00
6. 4S
6.13
6.16
6.72
6.81
6.73
6.49
6.00
5.50
6.09
4.71
4.16
3.38
2.90
2.54
2.56
2.63
2.96
3.00
3.00
3.16
3.06
3.19
3.93
4.43
4.30
4.09
5.29
5.76
6.48
7.08
7.44
7.48
7.56
7.31
7.37
Capital of na
tional banks.
$7, 188, 393.00
86, 782, 802.00
393. 157. 206.00
415. 472. 369.00
420. 073. 415.00
420. 634. 511.00
426. 399. 151.00
435. 356. 004.00
460. 225. 866.00
482. 606. 252.00
490. 266. 611.00
495. 802. 481.00
505. 485. 805.00
497. 482. 010.00
477. 128. 771.00
464. 874. 996.00
454. 498. 515.00
458. 540. 085.00
465. 639. 835.00
484. 883. 492.00
511. 837. 575.00
524. 089. 065.00
529. 360. 725.00
550. 698. 675.00
580, 733, 094.42
593, 848, 247.29
617, 840, 164.67
657. 877. 225.00
677. 356. 927.00
689, 698, 017.50
681. 812. 960.00
666. 271. 045.00
650. 956. 245.00
047. 186. 395.00
029. 655. 365.00
620. 516. 245.00
606. 725. 265.00
032. 353. 405.00
665. 340. 664.00
714. 616. 353.00
758. 315. 170.00
776. 089. 401.00
808. 328. 658.00
847. 514. 653.00
901. 681. 682.00
921, 019, 383.66
953, 963, 472.81
1, 004, 288, 107.37
1. 026. 440. 500.00
1. 046. 012. 580.00
Surplus of naUonal banks.
$128, 030.26
2, 010, 286.10
38, 713, 380.72
53, 359, 277.64
66, 695, 589.01
77, 995, 761.40
86, 165, 335.32
94, 705, 740.34
101. 573. 153.62
111, 410, 248.98
120. 961. 267.91
130. 485. 641.37
133. 085. 422.30
131. 390. 664.67
121, 618, 455.32
116, 402, 118.84
115, 429, 031.93
121, 824, 629.03
129. 867. 493.92
135. 930. 969.31
144. 800. 252.13
146, 867, 119.06
150. 155. 549.52
159. 573. 479.21
175, 246, 406.26
187, 292, 469.97
198. 506. 794.14
214. 965. 133.67
228. 221. 530.31
239, 931, 932.08
246, 739, 602.J99
244. 937. 179.48
246. 177.563.53
247. 399. 567.15
246. 416. 688.48
246,695,552.28
250,367, 691.89
262, 387, 647.59
287. 170. 337.92
335. 763. 730.38
375.503. 102.21
399. 961.534.15
420. 785. 055.00
504. 548. 213.62
549, 614, 684.05
568. 159. 292.92
603, 246, 750.20
652. 462. 489.68
672. 891. 252.01
701, 021, 452.71
I “
S g ta S f* -
$8, 497, 681.84
122, 160, 536.40
500, 910, 873.22
564, 616, 777.64
540, 797, 837.51
580, 940, 820.85
511, 400, 196.63
507, 368, 618.67
596, 586, 487.54
598, 114, 679.26
540, 510, 602.78
682, 846, 607.45
618, 517, 245.74
619, 350, 223.06
604, 512, 514.52
598, *405, 775.56
755, 459, 996.01
1. 006. 452. 852.82
1, 102, 679, 163.71
1, 06* ' " 1, 719.85
1,10
3, 118.23
987,(0 ,0 5 5 68
1, 111, 429, 914.98
1, 169, 716, 413.13
1. 235. 757. 941.59
1. 331. 265. 617.08
1. 436. 402. 685.65
1, 485, 095, 855.70
1. 602. 052. 766.59
1, 764, 456, 177.11
1, 539, 399, 795.23
1, 695, 489, 346.06
1, 720, 550, 2#1.03
1. 639. 688. 393.60
1. 916. 630. 252.25
2. 225, 269, 813.21
2, 380, 610, 361.43
2, 623, 997,521.86
2. 964. 417. 965.82
3. 152. 878. 796.66
3, 176, 201, 572.89
3, 707, 706, 530.93
3, 969, 582, 834.59
4. 289. 773. 899.26
4, 176, 873, 717.48
4, 720, 284, 640.40
5. 120. 442. 963.08
5, 304, 788, 306.45
5, 536, 042, 281.16
5, 891, 670, 007.00
Number
of na
tional
banks.
66
506
1,513
1.664
1.642
1.643
1,617
1,648
1,790
1,940
1,976
2,027
2,086
2,082
2,074
2,055
2,052
2,095
2,164
2,308
2,529
2.664
2732
2875
3070
3150
3326
3573
3692
3784
3787
3737
3,706
3,661
3,607
3,590
3,602
3,942
4,291
4,666
5,118
5,477
5,833
6,199
6,625
6,865
7,006
7,204
7,328
7,397
Popula
tion.
31, 443,321
32. 064.000
32. 704.000
33. 365.000
34. 046.000
i 34, 748,000
I 35, 469,000
36. 211.000
! 36, 973,000
37. 756.000
38, 558,371
; 39, 555,000
i 40, 596,000
41. 677.000
42. 796.000
43. 951.000
45. 137.000
46. 353.000
47. 598.000
48. 866.000
50, 155,783
51. 316.000
52. 495.000
53. 693.000
54. 911.000
56. 148.000
57. 404.000
58. 680.000
59. 974.000
61. 289.000
62, 622,250
63. 844.000
65. 086.000
66. 349.000
67. 632.000
68. 934.000
70, 254,0100
71. 592.000
72. 947.000
74. 318.000
76, 303,387
77. 754.000
79. 117.000
80. 487.000
81. 867.000
83. 260.000
83. 662.000
86. 074.000
87. 496.000
88. 926.000
90. 363.000
93. 963.000
95. 656.000
* Specie payments suspended 1862 to 1879.
* No figures available.
State banks June 14,1912, and all mutual savings banks, stock savings banks, private banks, loan and trust companies:
Total offaU
alTState
Capital.................................................................................................................. . ..................... . .................................................................................................. .............................
$964,235,780.49
Surplus....................................................................................................................... ............................................... ....................................................................................................... 870,684,492.80
In case all banks and trust companies in the United States and the island possessions of the United States would join the different Federal reserve banks and take out their 20
per cent capital stock as provided in the act they would deposit in these regional banks the sum of $402,049,672.09.
20366 O - 58 - 8 . Kept. 133, 68-1, pt 2.
(To face page 80.)
No. 1.
Total cir
culation
per capita.
$13.85
13.98
10.23
17.84
19.67
20.58
18.99
18.29
18.42
17.63
17.51
18.17
18.27
18.09
18.13
17.16
16.12
15.58
15.32
16.75
. 9.41
21.71
22.37
22.93
22.65
23.03
21.78
22.45
22.88
22.52
22.82
23.46
24.60
24.06
24.56
26.24
21.44
22.92
25.19
25.62
26.93
27.98
28.43
29.42
30.77
31.06
32.32
32.22
34.72
34.93
34.33
34.20
54.34
1889
1890
1891
! 1892
1893
1894
1895
1896
i 1897
1898
! 1899
1 1900
1901
1902
1903
1904
1905
I 1906
1907
1908
1909
1910
1911
1912
T a b le
Ho, 59.— Abstract oj reports of earnings and dividends of national banks in the United States for year ended July 1, 1912.
1Figures in boldface ty[»e Indicate loss.l
chanced olf.
Location.
1
2
3
4
5
6
7
Num-1
!
■berof; Capitalstock. ,
8urplus.
Capital aed
surplus.
Oro«i
Ratios.
*
, Loese* and
premium*.
Net earnings.
Dividends
to capital
and
surplus.
Dividend*.
Maine
New Hampshire....................
Vermont..................................
Massachusetts........................
Boston...............................
Khode Island...........................
Connecticut.............................
New England States...
s | New York...............................
9
Albany......................... .
10 |
Brooklyn......................
11
New York City.................
12 i New Jersey................................
13 { Pennsylvania..........................
14 J
Philadelphia....................
15
Pittsburgh........................
I» ! Delaware..................................
17 i Maryland.................................
I>» I
lialtiniore..........................
19 District of Columbia..............
30 j
Washington......................
j
«
22
23
24
25
27
28
29
30
31
32
Eastern States..............
1,833 j 338,312.175.00 , 344,304.716. 40 «te,618,9»1.40 100,428,741.86
Virginia............. ........ ........ . . .
1
! West Virginia.. . . . ................
North Carolina......................
South Carolina........................
(icoreia.....................................1
Savannah..........................
Florida......... ............................
Alabama.................................
Mississippi...............................
Louisiana............... ................
New Orleans............... .
Texas........................................
Dallas................................
Fort Worth........................
Galveston..........................
Houston............................
San Antonio.....................
Waco .......................
Arkansas..................................
Kentucky................................
Louisville...................... .
Twin
11. 547, 6*4,00
S.W(,1IW.7«
2,«U!t,273 no i
1.934.250.00
M K t.m flQ
700, fWO. (Ml
2,tor.TOO. 00
.Vi33.OM.00
1,582.09.74
2.24%8H5.K3 |
2.980.000.00 i
l 6,K l7.X 4<i. <r.> j
2.350, 000.00
1.915.000.00 '
2SMMMK) I
l, HKi.non.no i
l.oso.imaoo I
so*. * 10. 0 0 ;
1.776.020.00 •
4,793,067.22 I
J.W.ofln.on |
.->,2><4,H*ii.ai
Southern States..
164,556,900.00 I Kt, *33,711.83
28, « » » * * . 00 I 8,754,485.97
15, 237, 15ft. 76 j 3,.vw.:m <*7
u.fcu. 273.00 a.MM.mi «4
7 . 394. 250.00 2,291.668.38
22, 242,730 00 S5,371,016.44
1,600,000.00 , 408,009.84
8, 7*7 , 700.00 I 2,922,701.82
14, 90S, 025 .00 i 8,509,560.3»
4, 887, 32#. 74 ' 1,323,412.72
5, .‘WO, 81*5.83
1,542,000.94
S. ISO,0 0 0 .00 2,124,478.19
48, 9K3, * 46. 02 ,12,900,934.67
1,570,189.61
5. 000. 0(10.00
4. 790. 000 .00 ! 1,266,294.68
750, 000 .00 ,
201,017,75
5. 790. 000 .00 ; 1,873,676,04
3, IMI.WM.0 0 ‘
822,017.87
518,13s at
1. 758. 300.00 '
« , o-io, oo I 1,830,428Ji»
16, >0 8 , 91.7 .2 2 ' 3 ,» 4 ,8 8 4 .»
1,793,484.06
8. 140. 0 00 .00
17. 7M , 901.26 , 4,665,333.59
13.833.!®*.44 s 90,967,729.80
36$. 650.05
330.681.13
HO. flOK. :)7
165,70X58
341.S84.31 ,
78,071.77
222.446.54
320. a « . 12
131,441.92
130.981.95
309,361.61
1,240.979.92
147.89S.67
97,065.79
27, MO. 80
191,887.12
14,030.05
51,715.52
114,960.03
397,524.51
154,850.80
471,918.24
f8 ® S ,
t.42t,ft4R40
1,383,995.37
2,7*6, 709.46
#5,213.90
1,867,580,98
1,814,8*0 04
770,131.38
• I*.014.51
1,289.338.59
0,224,527.77
721.2lit.39
080,892.24
ltHi, 4341.13
987,498 20
380,133.15
302.485.2*
1.013,074.72
1,074.349.56
1.024,41(5.66
2,0*3,932.54
248,390,611.83 63,135,316.26 i 5,2®,948,80
33,WO,433.67
Ohio.................................
355 j 34,307,10ft 00
7.820.440.63
17,H42,1»42.87 52,250.042.87 13.385.1«». 72 1,405,784.08
Cincinnati................
8 ; 13,900,000.00
2.011,509.84
i,,:«»0,000.00 20. 200,000.00 : 3,92*1,987.25 2,547,714.73
Cleveland.................
363,523.HO
2,334,291.60
7 1 9,350,000.00
32
4,0.*rfi,000-00 13.400,0110.00 ■3, till,
Columbus.................
118,779.36
916,587.66
3,000,000.00
1,.170,500.00
4,570,800.00 [ 1,540,211.82
8
Indiana............................
555,682.22 ; 4,798,996.11
250 j 21,133,(100,00
9,305,180.54
30,438,180.54 >7,989,472.97
Indianapolis.............
5 I 5,400,000.00 ” 2,745,000,00
S29.369.63
1,277,7»».45
8.145,000.00 ! 2.365.241.24
Illinois.............................
7,598,102.75
432 i 31,235,000.00 i 17,450,455. HI 48,(«85.455,84 i3,2W,9fl9.S» 1,915,964.64
10 4.1 , 1*10. 000.00 2IS, 100.000.00 t», 700,000.00 lH,W5t.374.3»» 1,645,344.53
Chicago.....................
11,403.149.97
Michigan.........................
315,809.51
96 j 10,260,000.00
15.60?.300.00 5.140.5S3.05
3,304.144.57
5,342,30a 00
Detroit......................
271.3IM.38
1.520.508.22
3
4.750,000100 , 1,780,000.00
6,500,000.00 > 2,350,335,89
Wisconsin.......................
4,583,400.00
365,420.24
3.555,703.36
15,773.400.00 5.319.81ft. 92
m | 11,180,000.00
Milwaukee................
2,
WO,000.00
191,208.71
6,280.000,00
9,010,000.00
2,990,364.61
1,953,252.76
•
Minnesota.......................
361,591.00
4,7^5,8M. 61
18,088,0(11.57 7,452,013.47
6,277,008.57
260 ! 11,811,000.00
Minneapolis.............
12,600,000.00 8,808,701.77
99,823.15
2,101,648.42
» i «, soo.ooa oo • 5,860,000.00
St. Paul....................
4,100,000.00
289,559.96
1,134,:m.03
3,450,574.84
7,550,574 34 2,140,505.80
6
1
Iowa.................................
588.454.96
5,036,149.07
314
17,715,000.00 j 7,328,710.75
24,963,710. TS 8,293,2*0.14
Cedar Rapids...........
36,387.86
400,000.00 i
708,000.00
361,887.71
308,000.00
3!
«o ,m at
D*a Moines..............
4 j 2,000,000.00 !
600,000,00
2,600.000.00
98,892.93
551,655.93
932,m .m
Dubuque..................
3
5,350.40
207.782.47
131,974.99
600,000k00
130,000.00
739,000.00
Sioux C ity..............
5I
950,000.00 1
1,350,000.00
606,340130 1
43,948.34
429,770.89
400,000.00
Missouri...........................
110
6, 6ks, <*».«» | 2 .««,8 1 6 .^
1,34*1,4;*,. W
!*,S31,916.62 2.352,095.94
Kansas City.............
12
7,860,000.00 ! 3,3K{,006.1)0
11,232,000.00 4,884,019. Wt
410,245,90
3.274,933.67
St. Joseph................
4
1,100,000.00
;mi7,64K.;»
61,330.90
675,000.00
1,773,000.00
7|t,830.21
St. Louis..................
8 a», 4oo,aiw. o o ! 11,990,000.00
870. .386. M
32,300.0110.00 7,816,242, TO
5,270.111.58
Middle Western States.) 2,036
2,016 274,756,100.0I» j 142,887,9^4.53 417,644,084.53 119,987,918.42 \12,:W4,%t&.&l
North Dakota................
5,a»v«w.t*> 1 1.K7N600.33 ■ 7,146,809.33 3,180,634.82 j
m
235,W ,. 22
2,«»2,282.«l
South Dakota................
4,i8u,tm .«>
1.802.295. W
m
1,238,m o o
5,418,450.00 2.650, W«. 75 !
137.140.70
4,281,3^.00
Nebraska.........................
to. 415, 000.00
231
14,«*a,368.<» 4 ,^ ,m 9 8 i
343,417.50
2,690,44?. 13
Lincoln.....................
4
1,000,000. (HI
;«3»,OHO.OO
ItM 0,«».00
498.144.73 i
2 2 ,695 .33 :
318,057.44
Omaha.....................
7
3.700.000. Wl 1 2,KH>,0m.0»
0 ,5 t0 ,0 0 0 .0 0
3 ,« l^ » e .4 3
272,052.11
1,808,5 50 .7 9
South Omaha..........
3
1.100.000.0n *
3no. ooh. oo
358,194.94
548,852.27
1,480,000.00
38,742.50 :
Kansas............................
10,662,500.00
202
4,<>lii,W<5,60
2 ,6 82,1 09 .4 6
15,2X2,485.00
425,804 15 ,
Kansas City............
* .
300,000.00 f
300,1100.00
342,278.45
800,000.00
2 4,851.56
343,876.93
Topeka.....................
2
300, 000.00 ;
100,000,00
M i,m .94 i
400,009.00
15 ,999.32
130,818.13
Wichita....................
500,000.00 1
3
1,005,000,00
5(6,000.00
453,024.93 t
27 ,292 .90
315,383.83
Montana..........................
m
4,9 60,0 00 .0 0 1 2 ,7 74,2 50 .0 0
7,734,250.00 3,176,080, 31
507,035.42 | 1 ,608,665.95
Wyoming.......................
29
1,735,000.00
1,050,500.(11
2,791,5 00 .0 0
1,192,234.78
56,21X19 i
K 5 .8 1 0 .3 8
Colorado..........................
118
6,6 90,0 00 .0 0 !
3.079.2 90 .7 4
9,7 *9,29 0.74
3,350,315.87
506,514.43 1 1,872,416.74
Denver.....................
6
3,fl02,W »l.60
3 ,0 00,0 00 .0 0 ;
2,961,449.27
7,502,0 00 .0 0
393,887.29
1,707,389. M
Pueblo.....................
3
650,000.00
450,0110.00
463,135,21
1,100,000.00
339,733.46
102,344.84 ,
New Mexico..................
2, OS*),000.00 S
980,350.00
3,0 70,350.00
6 0 4,94 3. 85
1,210,074.79
128,099.17
Oklahoma.....................
10,545,000.00 | 2,818,245.21
5,566,733 22
13,363,245.21
3,0 85,5 57 .7 5
657,081.13
Muskogee ............
850,000.00
8
250.500 00
362,328.01
1,100,500.00
4 ^ t ,m e
33,300.80
Oklahoma City___
270,000.00
l , m o n o , oo
6
1.820,000,00
ITS. 988.14
484,616.11
7 6 « ,7 0 7 .»
Western States..
1,238
32,064,608. 28
70,295,500.00
102.360,108.28 j39,069.043.01
4,115,380. 79
Z2,718,35;t. 79
80
87
88
,
89
90
91
92
93
9»
95
96
97
98
99
100
101
1
I
Washington.........................
Seattle............................
Spokane.........................
Tacoma.........................
Oregon..................................
Portland........................
California..............................
Las Angeles..................
Saa Francisco...............
Idaho....................................
Utah......................................
Salt Lake City..............
Nevada.................................
Arizona.................................
Alaska...................................
66
n<ksm .t»
2,678,659.11
113,479.44
285.032.92
70,457.08
a s t s
86,000.00
132,621.07
^5a,«4&W
*a,6&.m»
6i5,000.00
1,198,109.87
96.5110.oe
142,841.22 .
1,675.744. *4 1 2.259. MOO.00
34.202,140.5* ; 29,402,378.18 |
8W,^5i. U j
690,78.1.21
512,700.41
721,.m 16 i
1,732,498.26 i 1,424,572.97
157,391.98
734,679.52
151,914.83
1,884,881.06
73 .549.96
44,054.50
110,319.30
1,0 65,378.94
45 0.21 Z 2J
972,384.70
860,292.44
121,196.91
388.031.77
1,8 34,094.34
152,721.12
i« 2 ,ia .4 *
79,000.00
348,000.00
9 0 ,000 .00
1,301,587.85
;
!
,
!
|
1
12,-235,302.43
11.03
919
9,329,943.56
81 ,305.48
1,735,730,131.70 450,043,250.09
4 2 ,2 5 6 ,13a 15
2S 8J30.516.71
149,096,603.23
120,300,872.22 |
38 ,503 ,67 8.03
121,704,478.03 33,277,461.77
Hawaii.....................
4
United States.
7,307
864,426.42
1Capital and surplus as shown a* the cioae of the year.
1
,
!
1
;
» . »
10.98
13.77
18,13
9 .9 8
« 47
1
i
!
j
11.01
1X 80 >
13.88
13.88
5.81 I
11.95
67,0(15.60
8 3,200,800.00
j
T.96
3.13 '
6.82
11.06
S. 88
6.85
9.80
8.34
9.75
8.59
8.87
9l38
12.85
&75
9149
18.13
15.89
lft«8 .
9.85
• .»
9. t<
»o. m *
8.08 <
8.17 ;
8.M \
1X38 j
13.32!
11.80 t
10*
34,000.00
57 ,000.00
900,900.00
290,250.00
768,990. Ob
472,750.06 i
73 ,090 .00
372,500.00
1,644,713.32 *
u s,m o o j
106,000.00 '
618,575.00
589,000.00
356,000.00
94 ,000.00
CCW, 936. 19
448,158.20
1,769,480.00
908,250.011
2,265,000.01]
375,100. (M
240,382.65
166,000.01 1
15 9,02 0.0
127,000. W
a
6.39
8.36;
8.97
14. 3* |30
10.40 31
12-73 I 33
16. 9!
9.43
7.30
11.52
*.77
20.42
11.81
11.39 1
36,000.00
i
'
j
t
!
3.39 1
5.86
4.80
9.m
2,fC8,327.67
1,370.000.00
803,000.00
301,500.00
1,875,433.06
380.000.00 I
3,518,100.00 ;
6,226.000.00 *
969,731.9b ,
400,000.00 :
1,285.450.00
588,350.00
1,658,349.08
708,000.00
440,200.00 :
2,044.807.»
6i,ooaoo
?,W
8.99
11.99
13.47
9.35
10.42
6.91
7.85
8.73
3,145.54
470
8.73
•.08
7.66
It.tl
14.09
10.19 !
23,.SOI,015.79 ; 17,437,139.08
4,158,939.01
832.237.32
913,550.12
504.844.80
2,834,884.64
558,101.16
4 ,6 2 4 .8 4 1 .:
5.814,879.88
1.5-20,598.97
558,463.29
1,398,093.3S
845,908.14
'ft-74. ft.
.63 *
6.51 i
6.04
8.35 '
6.61
> «'
292.100.00
450.400.00 ’
541.000.00 {
4,095,523.94
448.000.00 >
271.000.00 !
36.000.00
667.000 00
279.000.00
359.000.00
497.350.00 <
943.543.00
4W, MO. 00
1.278.200.00
151,476.82
Pacific SUtea..
(To tace page 100.)
971.2s.«»
i.M
6.04 >
6.06 !
0.78 j
14.07
11,414,694.34
398,499. 85
2 t* , 130. 02
178,7(>7.29
8 7 ,2»i4. 09
228,49 0. 56
317,441.19
684,537.27
342,3:10.68
(>44,953. 44
•203,558.89
50,895.88
160.822.70
128,48(>. 44
104,815.22
95 ,587.46
20366 O— 5 8 —8. Rept. 133, 81-1, pt 2.
501.538.00
1.725.850.00
57,500.00
495.050.00
17,970,180.45
2 ,310,295.02
2,263,475.87
1,427.605.47
449,184. 35
2,092.837.5(1
1,879,815. 83
7,891, 103.62
2,987,864. 9£
7,308.656. U
1,5 80,5 50 .8(
790,162. SI
89 9,180.8(
560,941.39
868,758.58
157,998.81
>1,001^83,425.00 > 704,346,706.70
7.94
9.81
3,892,5 86 .9 8
5
2
76
4
197
9
9
48
17
5
11
13
2
6.0 60,9 15 .9 9
5,570,000.(10
4 ,1 65,000.00
1,350.000.00
6.704.187. 14
5,827,0 00 .0 0
26.804.447.55
8,926,0 00 .0 0
43,055,000.00
4 ,3 32,2 40 .9 0
1.505,186.45
3,1 15,0 00 .0 0
2 ,2 16,0 00 .0 6
1,830,000.00
153,50 a00
254,426.42
8.38
A79.ftftn.rn
59 2, 7K». 13
121,565. 12
374,290.94
96,098.25
822,833.79
612,495. 38
2 ,»tl,8M i.6 1
1,116,477.59
2,94«i,nt3.80
461,163. 38
378,145. 79
111,440.33
152,280. 46
216,410.75
29,129.98
1,965,915.99
1,370, (B0. 00
765.000. 00
850,000. 00
2.088,187. 14
1 .827,000.00
7 .9 31,6 47 .5 5
2 .8 26,0 00 .0 0
14.805,000.00
1,392,240.90
440,186.45
965.000.00
474,000.00
725.000.00
XI, 500.00
oio.ooaoo-
1,209,385.32
1,101.575.07
741.970.43
2.242,722.67
234,724.17
1,032,665.30
1,374.662.23
421.839.42
m m 48
625,777.99
5,441,4*1.**
781.029.55
488, m 65
87.870.82
8W.290.72
#28,454.07
104.418.48
701.764.08
1,183.OW.tl
614,210.00
1,549,482.81
1,319,033.04
1,3 75,7 71. 73
874,.547.24
205,822.01
1,041,513. 15
949,909.26
4,2»>4,739.74
1,5 29,0 56 .6ti
3,717,668.94
915,828.57
361,120.91
626,917.77
280,174. 49
347,532.61
91,541.33
4.0 75.000.00
4.2 00,000.00
3,4 00.000.00
500.000.00
4,6 11.000.00
4 ,000,000.00
18,872.800.00
6.100,000.00
28,250.000.00
2,940.0 00 .0 0
1,155.000.00
2,1 50,0 00 .0 0
1,742,000.00
1,105,000.00
100,000.00
0
1.512.390.00
920,019.14
2,413.007.14
9 .78
9 .6 0
7.92
14.80
13.29
m.m
7.38
5«>
5.11
7 « ;
10.03
7.83
7.87
Ml. 36
7.08
10.60
5.41 •
8.78 ;
5.99
6.68 !
6.16
4.67
7.23 j
8.93
8-W ;
8.15
8.15
8.51
9.17 i
5.S0 I
8.34
9.88
8.59
10.15
8.87
7.04
11.38
14.28
9.35
8.42
11.50
9.38
14.04
1ft 41
Mi. 7*
11.84
S .® j
8.19
8 -S
5.92
8,88
8.37 1
7.31
5.56
8.441
8.97 i
7.04 ]
9.67
9.46
9.71
5 .9 4
5.35
6 .0 8
8 .5 3
4 .3 8
7 .8 9
5 .8 7
11.76
10.40
7 .8 8
«38
8 .8 4
1X 13
23
43
44
4&
46
4?
48
48
j 50
151
! 52
S3
54
! 55
j 58
I 87
; 58
89
7.79 80
8.33 ' 81
906 83
‘^24 63
7.98 64
8.77 65
11.07 86
10.70
13.11 C7
IX ^ <88
u .m 89
7 .8 8
9.41
79
&18
IX 3t
7 .»
11.33
73
73
14
15
76
77
78
79
88
81
10.47
5.98
11.40
18.34
18.73
lt .U
1X 13
11.23
1 7 .»
15.60
13. S8
6 .9 7
9.11
13.27
1X31
10.21
10.57
8.5 5
6.9 6
9.53
7.6 9
6 .6 0
10. 18
5.26
8.6*i
15.07 i
5.33
7.18
6.94
15.18
14.02
10. 47
18.80
13.86
11.20
9.3 8
14.89
8.02
12. 76
20.81
7. Ti
9. U
1 1 .«
J
11.16
8.9 9
7.12
12.27
10.51
10k 98
12.51
6.84
10.64
23.71
3.5 8
6.87
11.83
18.98
j
9.3 8
7 .1 9
44 ,500 .00 1
9.41
5 .1 5
7 .3 0
8.S 0
6.93
11.66
8,754,8 52 .0 4
71
82
»
84
85
86
87
i 88
i 89
90
| 91
98
93
1 94
i 96
! 96
1w
; w
1 99
10.52 j
101
101
BANKING AND CURRENCY.
Daily statnnent oj the United States
Treasury at close oj business Sept. 16. 1913.
CASH ASSETS AND LIABILITIES.
G e n e r a l F u nd.
ASSETS.
LIABILITIES.
Ccuh.
Current liabilities.
In Treasury offices:
Gold coin........................................ *48,098,805.49
Gold certificates............................ 04,872,850.00.
Standard silver dollars................
3,740,127.00
Silver certificates.......................... 13,183,004.00
United States notes......................
5,837,393.00
4,488.00
Treasury notes of 1890 .................
Certified checks on banks...........
301,582.00
National-bank notes......... .......... >51,792,262.02
Subsidiary silver coin..................
18,527,844.30
Fracttonal currency................. ..
347.20
Minor coin......................................
1, ros,335.03
Silver bullion (available for sub*
sidiary c o in a g e ) .................
2,091,539.21
210,658,577.97
In national-bank depositaries:
To credit ol Treasurer United
States..........................................
To credit of postmasters, Judi
cial otlicers, etc..........................
In treasury, Philippines:
To credit of Treasurer United
States..........................................
To credit ol disbursing olficcrs..
02,670,478.39
(, 340,020.80
3,010,850.05
3,430,790.73
In Treasury offices:
Disbursing officers’ balances___ 176,262,786.16
Outstanding warrants.................
1,823,348.93
Outstanding Treasurer's checks.
7,476,697.99
Post Office Department balances 12,361,628.18
1,509,009.64
Postal-savings balances...............
Judicial officers’ balances, etc...
0,343,080.42
National-bank notes, redemp
tion fund *.................................. 20,666,42a 00
National-bank 5 per cent fund.. 28,071,077.85
Assets of failed national banks.. 10,110,129.54
Coupons and interest checks___
131,107.19
Miscellaneous (exchanges etc.).
7,171,832.34
Total............................................ 171,927,124.12
Subtract chocks not cleared
23,472,913.67
148,454,210.45
In national-bank depositaries:
Judicial otlicers’ balances, etc...
Outstanding warrants. . . . . . . . . .
In treasury, Philippines:
Disbursing officers’ balances___
Outstanding warrants.................
(3,346,620.86
509,200.06
3,430,796.73
1,291,932.00
160,032,76a 10
Net balance in general fu n d ........... 126,096,569.90
Total............................................ 280,129,330.00
TH E CURRENCY TRUST FUNDS
THE G ENER AL FUND, AND THE GOLD RESER VE
FUND.
ASSETS.
LIABILITIES.
Currency trust funds:
Gold coin..................................
Gold bullion.............................
$806, 0 is,9to.00
217,015,205. 00
Total cold............. ...............
Silver dollars............................
Silver dollars of 1890 ...............
1,084,234,109. IX»
4S8.916.000. 00
2,014,000. Ot)
Total currency trust funds.
1.575.764, 109.00
General fund: Total cash assets,
as above........................................
Gold reserve fimd:
Gold coin..................................
Gold bullion............................
Total........................................... 286,129,330.00
129.330. oo
#
100, 000, 000. oo
50,000,000.00
Grand total cash assets in
Treasury............................ 2,011, S93,499.»*)
Outstanding certificates:
Gold certificates outstanding. *1,084,234,169.00
Silver certificates outstand
ing
488,916,000.00
Treasury notes outstanding..
2,614,000.00
Total outstanding certifi
cates...................................
General fund liabilities and bal
ance:
Total liabilities, as above___
Balance
in
general
fund, a a
above........ *120.090,569.90
Gold reserve
» 150,000,000.00
Total net balances...............
1,575,764,169.00
W2.760. 10
276,096,569. 90
2,011,893, 499. 00
1 This includes $4S,11 8 ,308.0*2 which the Treasury has redeemed and lor which it will rcceive p yment
'rom national banks.
•The act ot July H, 1890, provides that deposits made by national banks to redeem circulating notes
shall be covered into the Treasury as miscellaneous receipts and that the Treasury shall redeem from the
general cash the circulating notes which come into its possession subject to redemption
*
Reserved against $346,6M 016 ol United S t a t e s notes and $2.01-r000 of Treasury notes of 1890.
102
BANKING AND CURRENCY*
Bond$} Sept. 13, 1913.
Bonds held for nation;;) tanks.
Kinds of bonds.
Kate of
interest;.
To secure deposits of
public moneys.
Tolal amount
outstanding
Total.
To secure
circulation.
Value at
par.
Value at
rate ap
proved by
depart
ment.
GOVERNMENT.
U. S. loan of 1925,
at par...................
U. S. loan of 19081918........ at par..
U. S. Panama of
1961........ at par..
U. S. consol of 1930,
at par...................
U. S. Panama of
1936........ at par..
U. S. Panama of
1938........ at par .
Philippine loans,
at par...................
Porto Kico loans,
at par...................
District of Colum
bia..........at par..
Territory of Ha
waii. 3§ per cent
bonds at 90 per
cent of par: all
other Hawaiian
bond^ at market
value not ex. ceeding par........
4
*118,489.900
.<37,9Sft?. 4lX)
534, <90,700
*3,001,700
3
63,945. 460
25.891.200
22,132,200
3.759.000
3.759.000
3
50,(NM>,<KX)
17.296.200
17,296,200
17,296,200
2
646,250.150
616.521.300
603, 775,900
12,745,400
12,745,400
2
54,631.980
54,249,360
52,964,860
1,284,500
1,284,500
2
30,000, 000
29,424,140
28,822,140
602,000
602,000
4
16, (XX), (MX)
5, ‘167.000
5.967.000
5.967.000
4
5,225,000
1,821,000
1.821.000
1.821.000
3.65
6,949, 650
1-33, 000
933, (XX)
933,000
1,998,000
1,998,000
1,950,900
918,000
600,271
10,000
6,750
0)
6,515,000 |
13,601,700
MISCELLANEOUS.
Philippine Rail
way Co.................
Manila Railroad
Co.,
at 90 per i
III.cent o. market
value, not ex
ceeding 90 per
v cent par............... !
IV . State, county,city, i
and other securi- 1
ties*......................
Total.
>•,551,000 |
I IS,000 ].
735. (X)0
0.000
33.UI9.254
33,009,254
22.576,308
1.013.293.140
>26.630.854
742,085,80) , 84,545,054
73.144,029
(*)
I
I
1 Various.
* As security lor deposits made in connection with <rop movement Government bonds are accepted at
par, other bonds at 75 per cent of market value, and commercial paper at 65 per cent of face value.
Other outstanding bonds, 1186,662,286.
When banks have occasion to withdraw bonds held by the Treasurer to secure deposits ol public moneys,
the following shal1 be the order of withdrawal: Group IV, Group III, Group II, and Group I.
Bonds within a group may be interchanged by banks if desired, but bonds in a lower group may not be
substituted for those in a higher group, except that an initial substiution of bonds of a lower group for those
of a higher group may be made to an amount not to exceed 30 per cent of the total security value of bondj
held for a particular bank. National-bank depositaries which have not as yet taken out the full amount
of circulation authorized by law may withdraw United States 2's and substitute for them bonds in Group
II,provided the 2’s as withdrawn ->hall be used as security for additional circulation.
103
BANKING AND CURRENCY.
Paper currency oj the United Stales, by denominations, outstanding June SO, 191t.
Denominations.
United
States notes.
SI..................
$6..................
$10.................
$1,830,994
1,374,959
169.049,930
114,137,926
12,192,432
1,841,375
4,696,400
4,470,000
38,077,000
$2 ..................
120 ......................
$50......................
$100
........................
$500....................
$ 1,000..................
$5,000...................
$10,000............
Treasury
notes, 1890.
1
l
I
j.
j
$373,006
$343,588
241,744
164,312
688,160
141.565,470
898.470 , 32S,508,870
434,970 ! 224,856,140
14,550
16,373,800
160,500 | 35.032,350
89,500
*ii i *666
23,000
10,000 I.
.1
Fractional parts.
347,681,016 | 2,929,000
Total........
Nationalbank notes.
Silver cert iflcates.
Gold certifi
cates.
$226,435,300
256,496,964
55.053,055
80,127,550
18.239.000
66,765,500
95.020.000
241,920,000
Total.
$161,327,436
62,854,116
227,178,187
20.757,611
4,488,670
4,417,760
480,220
22,000
23,000
50,684
747,007,714
481,549.000
1,040,057,369
$163,875,624
64,635,131
538,481,747
690.738.177
498,469,176
77,700,540
120,503,020
22.820.500
104.999.500
95,020,000
241,930,000
50.684
2,619,224,099
Classification o f cash in banks June 14, 191 f.
7,372 national
banks.
Classification.
Cold coin........................ , ............
Gold certificates............................
Gold clearing-house certificates.
Silver dollars.................................
Silver certificates..........................
Subsidiary and minor coin........
Legal-tender notes.......................
National-bank notes....................
Cash not classified........................
$149,294, 417. 7*
350, mz, 3.s0.00
SO, 479, 000.00
12,637, 221.00
138,569, 628.00
22,555, 692.08
18S, 440, 207.00
47,564, 277.00
Total.,
996,142,823. 46 i
25,195 reporting
banks.
17,K23 State.etc.,
banks.
.<89, 094,968.96
206, 405,716.00
320.174.00 ‘
804.541.00 ;
182,315.61
081.546.00
717.410.00 •
543,684. 40
576,810,055.97
$238,389,386.74
503.068.096.00
80,479.000.00
22.957.395.00
194.374.169.00
37, 738, 008. 29
253.122.053.00
108.281.087.00
74,543,684.40
1.572,953,479.43
Distribution oj money in the United States,
i
Coin and
other
Year
money
ended
in
the
June 30—
United
States.
Coin and other
money in Treasury as assets.»
Coin and other
money in rej>ortin e b a n k s.2
I’er
cent.
Millions.
Millions. Millions.
1882..:... $1,752.2
8.60
$586.4
$150.9
1,738.8
142.1
1883
8.17
515.9
144.2
1894
1,805.5
7.99
C88.9
1895..
217.4
1,819.3
11.96
631.1
1,799.9
293.5
531.8
1806......
16.31
1897.,
1,906.7
165. 7
13.93
628.2
1898..
2,073.5 ;
?35.7
11.37
687. 7
2,190.0 i
-'86.0
13.06
1899.... .
723.2
1900.....
284.6 i 12.16
749.9
2,339.7
2,483.1
307.8
12.39
794.9
1901.... .
1902....
2,563.2
313.9
12.24 !
837.0
1903
! 2,684.7
11.80
317.0
848.0
1904
2,803.5
284.3 1 10.14
982.9
1905....
2,883.1
295.2 l 10. 24
987.8
1906....
3,060.9
333. 3 | 10.86
1,010.7
3,115.6
1907.... .
11.00 1,106.5
342.6
3,378.8
1908..
340.8 , 10. 08
1,362.9
1909....
3,406.3
300.1 j 8.81
1,444.3
1910....
3,419.5 '
317.2 ! <*. 27
1,414.6
341.9
1,545.5
9. 61
1011. . . . 3,555.9
P. 98 ! 1,563.8
1912.... . 3,648.8
304.3 !
Coin and other money
not in Treasury or
banks.
In circulation,
exclusive of coin
and other money
in Treasury as
assets.
Per
capita.
Per
capita.
Per
cent.
Amount
33.48
29.68
38.17
34.96
29.55
32.94
33.17
33.02
32.05
32.02
32.69
31.50
35.06
34.27
32.92
35.51
10.34
42.40
41.37
43.46
42.86
$1,014.9
1,080.8
972.4
070.8
974.6
1,012.8
1,150.1
1.180.8
1,305.2
i.aso.4
1,411.4
Millions.
1,519.7
1,536.3
1,600.1
1,725.9
1,666.5
1,675.1
1,661.9
1,687.7
1,668.5
1,720.7
Per
cent.
Millions.
.'7.92 $15. 50 $1,601.3
62.15
16.14
1,596.7
14.21
53.84
1,661.3
53.36
13.89
1,601.9
13.65
54.14
1,506.4
S3.13 | 13.87
1,641.0
15.43
55.4'!
1,837.8
53.92
15. 51
1,904.0
17. 11
55. 79
2,055.1
55.59 I 17.75
17.00
.'5.07
18.88
56.61
18.77
54.80
55.49
19.22
56.22
20.39
53.49
19.36
49.58
19.15
48.78
18.68
49.36
18.68
46.93
17.75
47.16
17.98
2,175.3
2,249.3
2,367.7
2,519.2
2,587.9
2, 73a 6
2,773.0
3,038.0
3,106.2
3,102.3
3,214.0
3.2S4. 5
*24.60
24.06
24.56
23.24
21.44
22.92
25.19
25.62
26.93
27.98
28.43
20.42
3a 77
31. OS
32.32
32.22
34.72
34.93
34.33
34.20
34.34
1Public money in national-bank depositaries to the credit of the Treasurer of the United States not
included.
2Money in banks of island possessions not included.
104
BANKING AND CURRENCY.
Planks
of
D e m o c r a t ic
and
R e p u b l ic a n P l a t f o r m s
S in c e
on
B a n k in g
and
C urrency
1S96.
Democratic.
Republican.
lHtttt.
i n t e r e s t - b e a r in g
F IN A N C E .
bo n d s.
We are opposed to the issuing of
Interest-bearing bonds of the United
States in time o f peace, and condemn
the trafficking with banking syndi
cates, which, in exchange for bonds
and at an enormous profit to them
selves, supply the Federal Treasury
with gold to maintain the policy of
gold monometallism.
a g a in s t
n a t io n a l
h anks.
Congress alone has the power to coin
and issue money, and President Jack
son declared that this power could ,not
be delegated to corporations or indi
viduals. We therefore denounce the is
suance of notes intended to circu
late as money by national banks as
in derogation of the Constitution, and
we demand that all paper which is
made a legal tender for public and pri
vate debts, or which is receivable for
dues to the United Slates, shall be is
sued by the Government of the United
States, and shall be redeemable in coin.
The Republican Party is unre
servedly for sound money. It caused
the enactment o f the law providing for
the resumption of specie payments in
1879; since then every dollar has been
as good as gold.
We are unalterably opposed to every
measure calculated to debase our cur
rency or impair the credit o f our coun
try. We are therefore opposed to the
free coinage o f silver except by inter
national agreement with the leading
commercial nations o f the world, which
we pledge ourselves to promote, and
until such agreement can be obtained
the existing gold standard must be pre
served. All our silver and paper cur
rency must be maintained at parity
with gold, and we favor all measures
designed to maintain inviolably the ob
ligations of the United States of all
our money, whether coin or pai>er, at
the present standard, the standard o f
the most enlightened nations of the
earth.
1900.
T H E CU RREN CY B IL L DENOUNCED.
FREE COINAGE OF SILVER OPPOSED.
We denounce the currency bill en
acted at the last session o f Congress as
a step forward in the Republican policywhich aims to discredit the sovereign
right of the National Government to
issue all money, whether coin or paper,
and tQ bestow upon national banks the
power to issue and control the volume
of paper.money for their own benefit.
A permanent national-bank currency,
secured by Government bonds, must
have a permanent debt to rest upon,
;»nd if the bank currency is to increase
the debt must also increase. The Re
publican currency scheme is therefore
a scheme for fastening upon the tax
payers a perpetual and growing debt.
We are opposed to this private cor
poration paper circulated as money
but without legal-tender qualities, and
demand the retirement of the nationalbank notes as fast as Government
paper or silver certificates can be sub
stituted for them.
We declare our steadfast opposition
to the free and unlimited coinage o f
silver. No measure to that end could
be considered which was without the
support of the leading commercial
countries o f the world.
However
firmly Republican legislation may seem
to have secured the country against
the peril of base and discredited cur
rency, the election o f a Democratic
President could not fail to impair the
eountiy’s credit and to bring once more
into question the intention o f the
American people to maintain upon the
gold standard the parity of their
money circulation. The Democratic
Party must be convinced that the
American people will never tolerate
the Chicago platform.
105
BANKING AND CURRENCY.
11104.
1 HE r.0LD STANDARD MUST BE UPHELD.
We believe it to be the duty of the
Republican Party to uphold the gold
standard and the integrity and value
of our national currency. The main
tenance of the gold standard, estab
lished by the Republican Party, can
not safely be committed to the Demo
cratic Party, which resisted its adop
tion. and has never given any proof
since that time of belief in it or fidelity
to it.
1WOK.
BANKING.
The panic of 1907, coming without
any legitimate excuse, when the Re
publican Party had for a decade been
in complete control of the Federal Gov
ernment, furnishes additional proof
that it is either unwilling or incompe
tent to protect the interests of the
general public. It has so linked the
country to Wall Street that the sins of
the speculators are visited upou the
whole people. While refusing to res
cue the wealth producers from spolia
tion at the hands of the stock gamblers
and speculators in farm products, it
has deposited Treasury funds, without
interest and without competition, in
favorite banks. It has used an emer
gency for which it is largely respon
sible to force through Congress a bill
changing the basis of bank currency
and inviting market manipulation, and
has failed to give to the ir».000,<MK) depositors of the country protection in
their savings.
Wo believe that in so far as the
needs of commerce require an emer
gency currency, such currency shot j Id
be issiMMl and controlled by the Fed
eral Government and loaned on ade
quate security to national and State
hanks. We pledge ourselves to legis
lation under which the national banks
shall be required to establish a guar
anty fund for the prompt payment of
the de|)ositors of any insolvent na
tional bank, under an equitable sys
tem which should be available to all
State hanking institutions wishing to
use it.
We favor a postal savings* bank if
the guaranteed bank can not be se
cured. and believe that it should be
so constituted as to keep the deposited
money in the communities whore the
depositors live. Rut we condemn the
policy o f the Republican Party in pro
|M>shig fHisfal savings banks under a
plan o f conduct by which they will
We approve the emergency measure
adopted by the Government during the
recent financial disturbance, and es
pecially commend the passage by Con
gress of the law designed to protect
the country from a rei>etition of such a
stringency. The Republican Party is
committed to the development o f a per
manent currency system responding to
our greater needs and the appointment
of a national monetary commission by
the present Congress which will im
partially investigate all the proposed
methods and insure the early realiza
tion of this purpose.
The present currency laws have fully
justified their adoption, but an ex
panding commerce, a marvelous growth
in wealth and population, multiplying
the centers of distribution. Increasing
the demand for the movement o f crops
in the West and South, and entailing
periodic changes in the monetary con
dition. disclose the need of a more
elastic and adaptable system. Such
a system must meet the requirements
of agriculturists, manufacturers, mer
chants. and business men,in general;
must be automatic in operation, mini
mizing the fluctuations in the interest
rates: and all must be in harmony
with the Republican doctrine, which
insists that every dollar shall be based
upon and as good as gold.
l'O S T A L
S A V IN O S .
We favor the establishment o f a
|M>stal savings bank system for the
convenience of the i>eople and the en
couragement of thrift.
106
BANKING AND CURRENCY.
aggregate the deposits o f the rural
communities and deposit the same
while under Government charge in the
banks o f Wall treet, thus depleting
the circulating medium o f the produc
ing regions and unjustly favoring the
speculative markets.
1012.
BANKING LEGISLATION.
BANKING AND CURRENCY.
We oppose the so-called Aldrich bill
or the establishment o f a central bank,
and we believe the people o f the coun
try will be largely freed from panics
and consequent unemployment and
business depression by such a system
atic revision of our banking laws as
will render temporary relief in local I
ties where such relief is needed, with
protection from control or dominion by
what is known as the Money Trust.
Banks exist for the accommodation
o f the public and not for the control
of business. All legislation on the sub
ject o f banking and currency should
have for its purpose the securihg o f
these accommodations on terms o f ab
solute security to the public aud o f com
plete protection from the misuse o f the
power that wealth gives to those who
possess it
We condemn the present methods of
depositing Government funds in a few
favored banks, largely situated in or
controlled by Wall Street, in return for
political favors, and we pledge our
party to provide by law for their de
posit by competitive bidding in the
banking institutions of the country, na
tional and State, without discrimina
tion as to locality, upon approved se
curities and subject to call by the Gov
ernment.
The Republican Party has always
stood for a sound cuirency and safe
banking methods. It Is responsible for
the resumption of specie payment and
for the establishment o f the gold
standard. It is committed to the pro
gressive development of our banking
and currency system. Our banking
arrangements to-day need further re
vision to meet the requirements of
current conditions. We need meas
ures which will prevent the recurrence
o f money panics and financial disturb
ances and which will promote the pros
perity o f business and the welfare of
labor by producing constant employ
ment. We need better currency facili
ties for the movement o f crops in the
West and South. We need banking
arrangements under American auspices
for the encouragement and better con
duct of our foreign trade. In attain
ing these ends the independence o f in
dividual banks, whether organized
under national or State charters, must
be carefully protected, and our bank
ing and currency system must be safe
guarded from any possibility o f domi
nation by sectional, financial, or po
litical interests.
It is of great importance to the
social and economic welfare o f this
country that its farmers have facilities
for borrowing easily and cheaply the
money they need to increase the pro
ductivity o f their land. It is as im
portant that financial machinery be
provided to supply the demand o f
farmers for credit as it is that the
banking and currency systems be re
formed in the interest o f general busi
ness. Therefore we recommend and
urge an authoritative investigation o f
agricultural credit societies and cor|x>ratlons in other countries and the
passage o f State and Federal laws for
the establishment and capable super
vision o f organizations having for
another purpose the loaning o f funds
to farmers.
RU R AL CRFDITS.
Of equal importance with the ques
tion of currency reform is the ques
tion o f rural credits or agricultural
finance. Therefore we recommend that
an investigation o f agricultural credit
societies in foreign countries be made,
so that it may be ascertained whether
a system o f rural credits may be de
vised suitable to conditions in the
United States; and we also favor legis
lation permitting national banks to
loan a reasonable proportion o f their
funds on real estate security.
We recognize the value of vocational
education and urge Federal appropria
tions for such training and extension
teaching in agriculture in cooperation
with the several States.
BANKING AND CURRENCY.
107
L aw fu l M oney.
Memorandum prepared for the Treasury Department by Mr. Broughton.
T reasury D epartment ,
Office of th e S ecretary,
Washington, August 22, 19J3.
Tlio terms *•lawful money ” and “ legal tender” are different names for the
same thing. The term “ lawful money ” originated in the act o f February 25,
1KG2. authorizing tho issue o f United States notes. It was probably used in sub
sequent acts, because the term was comprehensive and, notwithstanding the
fact that gold and silver coins were not then in circulation, it would necessarily
embrace them, as well as legal-tender notes, whenever specie payments should
be resumed. However, commonly the term “ lawful money ” has been applied
to the United States notes. “ Legal tender” is a quality given a circulating
medium by Congress, and (possessing this quality it becomes “ lawful money.”
The fact is interesting that the Continental Congress which authorized the
issues of Continental currency did not ordain it legal tender, but asked the
States to do so; it is stated all did so except Rhode Island.
Act of February 25, 1802. authorizing the issue of United States notes:
“ * ♦ ♦ and such notes herein authorized shall be receivable in payment of
all taxes, internal duties, excises, debts, and demands o f every kind due to the
United States, except duties on imports, and o f all claims and demands against
the United States o f every kind whatsoever, except for interest upon bonds and
notes, which shall be paid in coin, and shall also be lawful money and a legal
tender in payment o f all debts, public and private, within the United States, ex
cept duties on imports and interest as aforesaid.”
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@FedFRASER