The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-06-19
The Largest Banks-How They Make Money
Those Gone into LiquidatiOn-Pri-
vate and Savings Banks.
RerdelI Dismissed and the Kellogg
Cases Called Up.
Civil-Service Examinations Made Easy-Gos
sip About the Wealth of Brady
and Dorsey-Capital Notes.
INDIANA BANKS.
The Number, Capital and Business of the
Fiscal Institutions of the State.


Fiscal Institutions of the State.
Special to the Indianapolis Journal
WASHINGTON, June 18.-Since the origi
nation of the national banking system, there
have been started in Indiana 1874 national
banks, of which number Al have been re-
tired. This leaves in operation 93 banks,
and they represent paid-in capital of $13,-
633, 500. The outstanding circulation of
these banks is So, III, 40 At various times
| though, there has been issued to them bank
note circulation amounting to SAL ,275, ,695, of
which sum 500, S43, ,9SS has been redeemed.
| Of course the cause of the issue of such a vol
ume of currency to the Indiana banks was
the wear and tear to which paper money is
subjected, necessitating its frequent replace
ment by new notes. The only national
bank in the State having a million dollars on
deposit is the First National of indianapolis,
| the one having the next largest deposits being
the National State Bank of Lafayette. The
total liabilities of the Indiana national
banks reaches the sum of $50, ,372 81. .95. They
hold, as individual deposits $24 942, Stills.
Their surplus fund amounts to So, 297, ,773.18,
and the undivided profits to 1900, ,913.61
banks in the sum of $438, 40563.
If it is desired to know how the banks
make money the principal item, of course, is
'loans and discounts" This amounts to
$27, 585, 400S9, and they hold as an invest
ment 1884, 100 of government bonds. Their
real estate is valued at 81 ,316 1885, and the
current expenses are $241, S0557. To meet
the requirements of everyday business they
carry a cash supply, as follows: Specie, ST.
640 602. a. legal-tender notes, 50, 160 251, and
bills of other banks, 1,070, ,234.
The first bank IN Indiana to retire from the
national banking system was the Fourth
National, of Indianapolis, which withdrew in
1865. There is still in circulation notes of
this bank to the amount of 81, 1856; but, of
course, this is fully protected by the Treas
ury. Since that time twenty-three national
banks in different parts of the State have
gone into voluntary liquidation under the
banking laws. AS in the case of the first
named, all of them still have an outstanding
circulation. Twelve banks have gone into
voluntary liquidation for the purpose of or
J ganizing new associations with the same or
different title. There have been five failures
among the Indiana national banks. The
! first occurred in 1873, and was in the case of
the First National, of Anderson, which held
capital of $50 600. The proved claims
against this bank, after passing into
the hands of areceiver amounted to $143, ,534,
and it has only paid 25 per cent. in div-
dends. The Gibson County National OF
Gibson, had capital of $50 900 and proved
claims OF $626 1t had paid per cent. in
dividends. The First National Bank of
Franklin represented a capital of $132, ,000
and the proved claims were $1S4, 457 After
paying 100 per cent in dividends and inter-
est in full it was finally closed. In the case
of the First National Bank of Delphi, the
capital was $4,000 and the proved claims
$133, ,112. After paying 100 per cent. it has
been finally closed. The First National
of Monticello, with a capital of $50, 000 has
proved claims of $14, 206, and but 80 per cent
as dividends have been paid.
The Indiana banks do good business, and
as a consequence make money. During the
last year they returned as net earnings
81, $3.50, $500 They declared average divi-
dends on the capital of over 1014 per cent,
and the earnings to both capital and surplus
were over 9% per cent. The classificatons
of the loans and discounts shows that they
have out on "single-name' paper So 435, $50;
on United States bonds, $7617; on other
stocks, 81, ,443, 5S1; and all other loans,
$23, sol, ,5S1 They are required to hold
lawful money reserve of So, S30, 1868, but
In reality they hold as such reserve IS, 265, ,2S7
Even banks, no matter how we'll conducted,
have their losses. III the State, forty-eight
banks report as losses during the year $214,-
1916. This includes losses in their business
on every account, including losses on tech
nical bad debts under the law and premiums
on United States bonds. A considerable
portion of these technical losses, however,
will undoubtedly be recovered.
But the national banks do not comprise all
such institutions doing business in Indiana
There are, besides them, 15i banks in the
State, having a capital of $4, $40, 203 and de-
posits to the amount of S1S642, ,5l5. The
banks have invested in government securi-
ties $9S0S79. There are twenty-five State
banks, with a capital of 81, 1873 COG, and hold
ing as deposits s., $50, 600 Their total labili-
ties are 1895, 1872 They have loaned out
81, ,056 9S3, and have invested in real estate
$144 365. The savings banks are fourteen in
number, and they have on deposit 81 800, SAT.
There are l18 private banking establishments,
having capital of SO, 2s6, 507, and the depos-
its amount to $14, ,0G9359 These banks have
invested in United States securities $706, 965