The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1883-03-10


national banks and their business.
Senator, is the number of ma
tional banks increasing rapidly,
and is their business profitable ~
II say yes, emphatically, to both
branches of your question. Last
year III new banks were organ
lied, with a capital of sl5,7G5, 300.
Only 10 banks closed out their
business. They represented q
capital of $1,s55,000. There was
therefore a net increase in the am
cunt of the capital of the national
banks last year of Sl3,9l2,3OO. and
in the number of national banks
of l52. In three years ana ten
months national bank notes in
creased in amount S36,036,G73. |
think these figures show pretty
clearly that national banks are
very profitable institutions.n
"Uave you any further proof Of
the profit which they yield!"
40, yes. Take the following
figures for instance; The capital
of the national banks of the couu.
try in amount is $4S3, 104, ,2l3. They
have as gains and surplus the sum
of $131,917,45l. They have as IN
diyidual profits the sum of SGl,-
1S0,310. These sums amount to
$193, ,157,761, or over 81 per cent.
on their capital. They have there.
fore a total amount Of $61G,2G ,9Ti
and that too after paying large div
idends aud meeting large expens-
cs, taxes and losses"
Are they, do you think, making
good profits now!"
"Indeed / DO. For tho half
year ending September |, 1882,
they paid a dividend OF 4 4.lO per
cent. This would be s $40 per
cent. annually. TO this must be
added the 10 per cent. which goes
10 the surplus fund. These fig.
ures SHOW a profit Of 5 GO 500 Of a
cent?
"Have you any additional fig
ures on this point!"
"Yes; the net earnings for the
half year named were s26, ,231, ,G35.
OF this sum there was divided as
profits only s20,S7G,553, leaving
gains undivided, $5,36l,OS2. This
would increase the dividend over
So per cent, or over IL per cent.
Oh the capital. OF course you un-
derstshnd that this is the average
gain of all national banks, inclu'
ding those which are mismanaged.
The gains of those which are well
managed must be enormous. What
other business can make such a
showing?"
"Do you know how thnse gains
are made ~
zone of the ways, and the prin-
cipal way, is loaning money from
go to 80 days, thus continually
compounding the interest. The
gains in money lending in this way
are simply astounding"
"Are not the profits of the
banks largely made from their de.
posits 7"
"Yes; the deposits with the
national banks are immense. On
the LIST of November, 1882, the in
dividual deposits amounted to 81,
122,472,792, and the United States
deposits amounted to aS,S17,411
The total deposits therefore were
81, ,131, ,29O,093. The loans at the
same time were 81, ,23S, ,2S6,325. The
excess of loans over deposits was
only s106,996,432. The excess of
loans over capital was s155, 1872, ,312
and the excess of loans over cap
ital, surplus and undivided profits
was s562, ,224, ,551. From this il
will be seen that the national banks
loan over $550,O00,000 more than
they have, including real estate
United States bonds, and all other
kinds of assets"
"Of course the deposits are the
basis, in the main, of the loans ~
"Yes, that is shown By the fol-
lowing figures. Their capital is
only $4S3, 1O4,213. Their capital,
surplus and undivided profits all
together amount to s676,O6l,9'4
The banks also have the following
property, which it does not appear
can be loaned:
icni r<lAf1. s...s.ttsfss .f.ts 1890 "
i'niicl States certificates cf deposit. 7n5, ,cW
pne from United STILES Treasurer. 11No oF
otter resources mol named z=.zs = 900. .ev
G bea.l= + zprHfe elFenlzssaH wu, ,ons
l.t1l i.Al.zl s.al1z lua,I4. --.-==. 3. Ia wa
s,veks n1.l I,slas. -. 81 ap ,oo'
i. 4.t 1-fIf .nn N4.I