Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1903-12-07
Comptroller RdgIey's Report Indicates In
crease in Amount of LoanabIe Funds
LARGE FALLING
Secretary Root Declares Progress is Being Made
in Establishing Civil Power in Philippines.

Washington. Dec. THE annual re-
port of William b. Ridgely. comptroll-
er of the currency. has been prepared
for transmission to congress. The
report starts with a table giving a
detailed statement of the resources
and liabilities of all the national
banks Of the United States, as shown
By the five reports Of condition made
in response IL the call of the comp
trcIles.
Comparing this statement with that
for Sept. -, 1902, it is observed that
there has been an increase in the
number of reporting associations of
AL and a net increase of $196,501,
053.S7 in aggregate resources. The
increases of the principal items Of re-
sources are as follows: Loans and
discounts. $201 ,319.291, United States
bonds. S65.799,650: specie. $31 .320 on
%; legal tenders. $l4.992,2H.
During this period the loanable
funds were augmented as follows:
Capital stock to the extent of $4S.-
lS7.241: surplus and other profits,
$50, 100, 9S4.23; government deposits,
49,. gu 1877.
Notwithstanding the increase in
loanable funds and the volume of
loans and discounts. there was net
decrease from Sept. Is. 1902, to Sept.
9. 1903, in individual deposits of S52,
940.3 94.S6. This item reached the
maximum during the year. and also
during the existence of the national
banking system. June 9. 1908. name
ly, $3,2OO, g93.5O9.22 From this high
water mark there was a decline Sept.
9 to $3.50. 333. 499.O7. or $44.66O,O1o. Is.
The capital stock and surplus funds
of the associations gradually increas-
ed from $714.616.35 and $685.. 763, $780,
IS. respectively, Nov. %. 1902. to S753.-
~. eos and 1870. 800. 6S4.26. respective
~. Sept. 9. 1908.
The deposits of the United States
with the national banks have shown
but slight variations during the year.
the amount to the credit of the gov
eminent Nov. p. 1902. being $13S,-
| AGA ,S09.47. and at the close CT the year
S14O.411. 1926. Bills payable and re-
discounts were at their minimum
Feb. 6. 1903, and at that time amount
ed to S22. 921 .S37.75, and were at their
maximum, $+7,O66.372.O 6 Sept. Q, 1903.
Respecting national bank circula-
ton the comptroller says:
Circulate on Increase.
The most notable fact in regard
to the national bank circulation is the
great increase in its volume. which
reached S421 %. 4S9 Sept ). 1903, the
largest amount which has ever been
| in circulation. 1t is 55.43 per cent of
| the maximum possible circulation.
which is higher than this percentage
has been since 1856. This increase in
the volume of circulation has been
largely due to special efforts on the
part of the treasury department. 1t
has been feared during the past few
months that when the demand came
for currency to move the crops this
year it might produce more than the
usual disturbance in the money mar
ket. That this demand has been met
with less disturbance and less adj
vance in rates of interest than for
several years past is doubtless due
largely, among other causes, to this
increase in bank note circulation. 1t
is further of interest to note that just
as the circulation was reaching its
maximum and the demand for bonds
had advanced their price, the deposit
of lawful money TO retire circulation.
which for some months had been
light. suddenly Increased. and during
the latter half of September applica
tions were received taking up the
maximum of S3,o0O,OOO per month for
the months of September. October,
November and December.
This still further emphasizes the
one serious defect in our system that
the variation in the volume of our
currency, instead of responding to the
demand for currency. depends on the
market price of bonds. Until our
bank note circulation is made auto
maticaHy to respond to demand for
currency for daily cash transactions
without reference to the price of
bond it will never be entirely salts
factory or efficient.
I'm the comptroller's report for 1902
n recommendation was made thatsthe
national banks be allowed to issue a
portion of their notes uncovered by
the deposit of bonds. This seems the
most simple and practical, as we'll as
the safest way, to introduce some
elasticity into our bank note circu-
lation and the same recommendation
is renewed"