Omaha daily bee., 1899-11-04
NEBRASKA BANKS ALL RIGHT
Nevsr in Better Condition Than at the
Present Time.
ANNUAL REPORT OF SECRETARY HALL
FintterinE Statement Concerning the
standing OF Financial Institutions
of Nebrnska-Pnid-up Capital
Exceeds seven Millions.

LINCOLN, Nov. 3.-(Special)- The an
nnal report of Secretary Hall of the State
Banking Beard has been received from the
printers. The report Is very flattering and
shows that the number of banks transacting
business under state jurisdiction at the close
of the period covered by the report was 1893,
with total paid-up capital OF 1882, ,023. 10.
OF this number 3l4 were incorporated banks,
sixty-nine were private banks and ten were
savings banks
The report covers the period from Deceln-
Der /, 1897, to November 30 1898. 1t was
submitted to the banking department until
this morning.
II can safely make the assertion that
never in the history Of Nebraska were her
banks in as solvent a condition as today"
are the words of Secretary Hall in opening
the report. Since the expiration of the time
covered by the report the condition of the
banks has improved and is now even better
than then. The following extract is taken
from Secretary Halls report:
Comparisons with the report of the de-
crease of three in the number of incorpor-
astd banks ;es with 9th decrease of the paid.up
number of private banks, with a decrease
of capital paid UP of sl75Ooo, and an. in
osnks' s s with an increase of paid-up capital
5' or $iS' l2s; total het increase in number OF
DdHhS, nNe, ana total decrease IN amount
OF paid-up capital, $223. .255.
During the year fifteen new banks were
opened for business, with total capital
OF Sl4I 500; six were reorganized by chang.
ing from private to Incorporated banks and
twenty banks discontinued business.
or the latter seventeen went into Volun.
tary liquidation, paying ali creditors in
iull and three were placed in the hands OF
Of hn throa ,d scade SANK h OF mGIsteih, f one M
ceiver. the department IS informed made
satisf5aict2ry sani settlement and the receiver
Value of Assets Improves.
The value of the assets of the banks OF
the state has improved to remarkable
extent since my last report, under the. IN
hmence of better crops, which have materi
thus strengthening the security of the
banks. Prudent bankers have utilized tn,
improved conditions to collect or further Sc
cure slow and doubtful paper and, in addi
tion, have used profits unsparingly to elim
nate from their banks this class of paper.
never in the history of Nebraska were he
banks in as solvent condition as today
managed banks. and probably will never b.
entirely free from such, yet this state ha
% reason to be justly proud of The banks 4n IN
creasing deposits show that the people arr
aware aware Of their safety 1t is. however,
haps in some other line of business EN-
bark in the, banking business to learn b!
tai as expressed in money is necessary t.
successful banking | know of no way t.
prevent the recurrence of this evil, an
nothing is left to do but weed these peopl
out when discovered.
The banking business of Nebraska is pass
Ing through process of evolution by whic1
1t is rapidly approaching it's true sphere
which is receiving deposits, nay'ng checks
loaning money and buying and selling eN
change. The speculative banker either re
tired under the influence of drouth an
panic or received such a wholesome lesso
that he has reformed. The plethora of re
serves. so marked for the last year, has not
as rule, led the banks to forget past les
risks than would be approved by SCUM
business Judgment. Doubtless the closenes
with which securities are scanned has ha
something to do with keeping the reserv
so large. This condition is abnormal an
even now gives some evidence of passin
away.
banks of the state are unusually strong, ye
the profits of the business have shrunk
remarkable extent. There are sewers
cline In bank profits during the last fe
years, and some of which will remain pei
manently with us,
mess and land loan business have been in
portant adjuncts, to the interior banks e
pecially, and brought TO them no incol
siderable revenue, at the same time reQui
ing little or no investment of capital 9th
than labor and energy. The mutual inSu
ance company has almost entirely d
stroyed the insurance business of II
banks, and the local investor, competir
with the outside investor. has reduced II
profits derived from the land loan bu
mess IN roat Tntii there Is put Put ana narrow T,a marg
sources of profit are to some extent pc
hapS lost for all time.
Exchange Account.
The exchange account of banks has all
met serious competition in the cover