New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-24

State banks in the boroughs of Manhattan and
Brooklyn exceeds the combined capital OF all the
State banks throughout the entire State.
STEADY IMPROVEMENTS
Although the Official report of the superin-
tendent Of Banking for the present year will not
be made for some time. the advance sheets for a
period covering the first nine months show that
prosperity and successful business operations
have attended their enterprises. In his last re-
port Mr.. Kilburn found that during 1897 the
condition OF the banks as whole throughout
the State has improved markedly their aggre-
gate resources having increased s55 100000. or
moro than 20 per cent Their discounts have IN
creased nearly s7,25O,cO0. and the amount due
from banks and trust companies more than
S14,0O0.00O. The gain In general deposits the
item chiefly affecting earning power has been
nearly s43 100000. two-thirds Of It having been
realized during the period from June to Sep
TENDER Is. 1897" Inasmuch as the number Of
State banks In New-York City Is more than
one quarter OF the whole number In the State,
and also for the reason that all the country
banks are correspondents OF New-York banks
and carry accounts here and arc closely associ-
ated with them In every way. these statements
by Mr.. Kiburn have almost local Significance
Continuing, he rays: THE business ombarrass-
ments and wrecks which mark the period from
1893 to 1897 as the most disastrous the country
ever experienced threw upon the banks vast
amount of property held by them as collateral
security. which was not only not available for
banking purposes. but which required time and
judicous management in order to enable even
decent realization to be made from it.
often such property was the sole salvage
from unfortunate. loans and with its value con-
tingent upon many elements. usually connect
ural, I could not with proprety arbitrari ly
direct that it be charged of until a reasonable
opportunity had been given for its conversion.
In many instances any other course might have
excited popular apprehension and distrust, even
to the point Of endangcring the ability Of the
banks to meet the demands which In conse-
cuence might have crowded upon 1t. Still. IT has
been my policy to apply steady, though reason
able pressure upon the banks 10 eliminate from
their reports all worthless items as fast az their
worthlessness had been demonstrated. aad to
require that the fictitious valuation Of paper.
stock real estate be reduced b. this pol
icy over S1,500000 Of apparent surplus or un-
divided profits has been made to disappear from
the banks reports. and the public by so much
The better understands the strength of these in
sttutions This policy will be continued, and.
from the improvement in values which must at
tend the advance in the prosperity that the
country seems to be making. progress hence
forth ought to be at al accelerated rate"
Mr.. Kburn sets up the banks Of Ncw-York
City as example to follow in his reference to
profits He says: Il must not be understood to
approve OF the practice. too prevalent in many
banks. of distributing earnings in dividends as
fast made 1t IL difficult at best for In
stitution with small capital to meet Its ex-
penses OF management. make itself remunera-
tive TO stockholders and preserve a condition
which compels the confidence Of the COM
munity The law wisely requires that before
dividends may be declared percentage Of nct
earnings must be carried to surplus until the
fund so accumulated amounts to 20 per cent Of
the capital and not only should this provision
be scrupulously observed but the policy OF every
bank should be to so beyond it, increasing its
surplus until II stands n guarantee or safety In
periods Of disturbance and serves to make dv- !
dends surer and larger. To this practice the |
mana cement OF the most successful banks In !
their prosperity. and all OF the most thriving |
banks throughout the country pursue similar |
course.
ADVANTAGES or CONSULTATIONS.
After integrity and the exercise OF safe iudg |
rnent in daily transactions, II Is the rul,
surcr than any other 20 bring advantage and ,
SUCCESS for II insures confidence. whereby bust
ness is increased and also deposits. making pros
perty merely question OF fading profitable I
use for the money How true this has been has
frequent Illustration within the last few years
n the results following bank cancellations In
many commercial centres, the deposits In each
.ase having increased almost Immediately out
y all proportion TO the new business acquired
simply By the consolidation The moral is not
o be mistaken The public chooses first to
,ank with institutions whose strength Is an as
uranoe OF safety. and. second. where accom-
notation can be had most easily. Other things
icing equal the bank with the largest surplus
n proportion to its capital will enjoy the fullest
rust. and consequently command the largest
business. a condition which ought 70 convince