New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-07

80 sL''>lV'h'. The loans and discounts made by
the Dol associations located in the central and
other reserve cities aggregated 81 SOS against
N6'eTs1,l06 by the 1851 associations locatad eIs.
whsre
ORGANIZATION OF NATIONAL. BANKS
On February %. 1905, the national banking eve
TEN had been in operation for FORTY vasre orS
rom June 20 1858, the date issue of the erst
60 Hnca'e authorizing national bank to begin
business. TO October 81. 1905 there have bear cb-
tered 7,o29 national banking assocatfors - -
ital at date Of organization Of $500 ss1 1872 Of bh
LIZ with capital OF 1923 1ss2s were conversions ~
state banks. effected in conformity with the mo
visions Of Section 5,l54. OF the Revised Statutes
and the remaining $685. with ca pital Of ss7 7s2 "a
banks Of primary organization.
Since the passage of the act OF March IA 1900
under authority OF which banks are organized
with minimum capital OF $500. circulating notes
lssuaole TO the par value of bonds deposited and
seTni-annual duty on circulation reduced I765 asso-
Citations with authorized capital of 800 4ss 600 have
been added to the system. The organizations dur
ING this period represent approximately one-fourth
OF the total organizations effected during the ex-
ls1ence OF the national banking system. Since
March IA, and under authority of that act banks
with individual capital Of less than $4,000 the
age being approximately $4,000. have been organ
lied TO the number OF Las with capital 500 s4s
DO During this period 617 banks. with individual
capital Of $4,000 or over, were organized, their
total capital amounting to SASS 900. The average
capital OF banks OF the larger class is approx
inately 500 900.
Classified by geographical divisions. the Middle
Western States lead both in number and capital
Of banks organzed-547 and $3l 666 Ooo respectively
f The Southern States are second in number Of
organizations namely. 421 capital of so 600
In the Western States $50 banks with capital OF
Sl236oC0 organized; in the Eastern States S25
banks with 81 $4,000 capital; in the Pacific States
70 banks with capital OF Sc $1,000 and in the New
England States. 10 banks, with $4,000 capital
Two associations with aggregate capital OF s525OOO
have been organized IN Hawaii and one with cap
itaI Of $1,000 in Porto Rico.
Notwithstanding authority conferred for the issue
Of circulation 10 the par value Of bonds deposited
bonds to the amount Of S25l74S50 only were de-
posted as security for circulation on the capital
OF SlG4iss o}-less than one-fourth of the amount
which might have been deposited. and circulating
notes issued thereon.
During the year ended October 81, 1903 there were
organized 555 associations. with aggregate caD+sI
Of 500. Of which 33 with capital Of Sc s49 500
were with individual capital Of less than 5000 and
20 with capital Of SO SIS co. with individual can
ltal CT $4,000 OF over. A further division shows
that there we're sos associations of primary orqn
izatou, with capital of S1642 90: - with caDital OF
SZ45s,50- conversions, and -9S with capital Of S15
10000, organizations Of State or private banks
la addition TO the augmentation Of capital re-
sultins from the Organization Of national banks
amount Of 50 $500 banks TO the n5 20 20 TIE ne
Increasing their capital stock in conformity with
he provisions OF the act Of May l. 1856 In mum
Der Of instances Increases Of capital were effected
Tor the purpose OF absorbing the business OF other
20 pE4'le n p measure Tor The shareholders Of the
closed lIsttutlcns- As reports Of proceedings re
position IS made OF the additional stock issued
he extent to which the shareholders Of banks
ossq ny 4l1iqail4H participated in the increase Of
'h4 aosoE6i.g banks cannot 9ll he stated.
TIE rsa2ct-oa o. capital stock, under the provis-
amounted 70 only ESQ and but p associations
The most notable change effected in the last year
80, T5i OF ll5 c4pll.ei STOCK or the Ma
o0lOll u S2JJ0lO and the consolidation with that
United States in Nev--Y6rk which prior 10 It's
liquidation was capitalized for E250G0O The
Bank OF Nevv-YCrk are the only national baI.king
associations in existence with capital Of So 00J0
VOLUNTARY LIQUIDATICNs AND FAILURES
Under the provisions Of Section 5.22) Of the Re
vised StalUtes-that is, by the action Of repre-
sentatives Of the required number Of shares Of
ztock-1.537 national banking associations have
been placed in voluntary liquidation. and the cor
porate existence Of l45 banks organized under the
thus making The total number voluntarily closed
14S3. the aggregate capita! al date of closing
From the date OF the first failure in 1860 10 Oc-
tooer 81 1893 receivers have been appointed for IS
national hanks, +heir capital aggregating Su167421
OF these banks however. u, with capital Of $3.725
90 were placed IN solvent condltlon and authorized
resume business. resulting IN net loss TO the
date OF failure Of s57 ~ 40 The affairs OF $50
these trusts have been finally settled and the re-
Citations at date Of failure was 81 1880 and their
outstanding circulation S63sS 783 The total amount
of asses tpar value) coming into possession Of re
ceivers was sss s25 Gil. from which there col
Iec1ed SIS O74 go and settled by offsets S4,672SZ7
order Of court aggregated 1913 90 the nominal
value Of the remaining assets being so.z4s, 20
s26.020 from which was realized 81 1855 30 On
claims proved. amounting TO sl0l, SO DIVIDENDS
were paid the amount Of s72542l42 or 7i-3l per
cent Including however. Offsets allowed, loans
paid etc. creditors received on an average 1855
7Ls losq - IinutdsIion Of insolvent banks was
So per cent.
CHANGES II CAPITAL AND CIRCULATION
The number and authorized capital Of national
banks steadily increased during the year from
1878 and S7l3 .425 5s5. respectively, on October 81
ls9 5I47 and S65. 0So, respectively, on octo-
Der 81. 1903 the increase in number Of banks being
45s and in capital stock So 93l 400 At the beginning
Of the report year bonds the amount OF SSa 80
SO were deposit with the Treasurer as security
amount Of 1895 7s3 .lse on December 81 1907, BOND
deposits and circulation had increased 10 $5ii9zi
bonds decreased S342l 10 and the circuIa-
ton 10 S3s,349 sl4. Refundng operations We're re- re-
SO 535 $50 during that month. In May the increase
$l513l.s)o in June. S59551 IN JuIy. 80 oy
crease q 500. however. in september, but an IN
crease Of $4,000 in October tolIo"lng me Ere, re-
sumption OF the refunding operations "IIlch DeBdH
AT the close Of the year ended October 81. 1902,
Of bonds deposit security ior clrculatlon 70
nor cent was in per cent Consols Of 1880 and at
the close Of the ended OCTOBER 81! lt5 over %
Der oEut Of the total amount was OF that class.
- if- -ro-a iT1reased from $3.50 as 334 on Octo-
Der 81 1872 TO S4l96l06s3 on October 81 lss- On an
se7i,., - ,oTreser1ted bv notes OF banks re
during their circulation. associations In voluntary
hquqauoh aI-u 10 ~ darosiTs Of lawful rnoney
n is t3cl S1ie go 600 The Chicago banks with
- 80 01 izsr1Ed az