New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-08
BANKS OF THE COUNTRY.
Prosperous Condition Shoroa by Re
mort of Controller Of Currency.

or the resources ana liabilities o.
all the national banks Of the United States. as
shown by the five reports condition made in re-
sponse to the call of the Controller in the period
beginning November 10, 1904, and ended August %,
1906 There has been increase in banks in that
time from SAT- to 575Z Loans and discounts, repre-
senting more than 30 per cent Of the banks aggre-
gate resources. steadily increased from $.7I26SS-
81 IS on November TO- 1904 to SS9sS 500 152 81 on
as security for circulation was from S4 59 o9o to
S4775a $50, the increase being approximately w.
0OO.Oc0 The banks total investments in govern
public deposits and amount aeld-represented APP
amount invested IN securities Of this character on
= 1876, sol 8O006O the net Increase being, only
$27O00o0 by reason OF the large WiLhdFa%alS a9Ig
release Of a like amount Of securities. At date OF
and legal tender notes aggregated SEP Io0009 These
holdings INCREASED on January II to 20 I S
on May q, and August 8 last reached $S60, sou
notes 10 the total resources was SO on the last
named date against y on SepteIneer ana 81 On
States bonds and lawful money Represented T92
per cent CT the aggregate resources S4zS0OSSO o.
The paid in capital stock on August g. 1905 was
$tgsSozg ano me sf3 5So 061 on November TO-
1901 the capital paid IN slightly in excess OF
profits $595 0o5 On September {. 1904 the stock
holders interest represented by capital, surplus
and profits, was POS per cent and On August %
1905 10 per cent of the total liabilities me re-
ported outstanding CIRCULATING notes on Noyen0gr
sss aS 7s8 sn itrease Of nearly $5O606000
OF the liabilities on August %. 1905 81 per cent
AMOUNTED % TO SS ~ $ i 9 Se Government
deposits, including deposits of United States dis
bursting officers decreased from $10, 10000 on No
The composition Of the specie held by the banks
on November 10 1904. was as follows: Gold $8S5o
holdings Of gold had fallen to S3S6,00OO00. and the
d t had o g To S Red vas ssh ] ana
silver $50 10000 on May - 1893 the gqld hodGgs
creased to Ss900lOo5 The aggregate specie hold.
ings on August g 1865 were the greatest at GATE OF
amounted to 200 Of which 1897 eco was in
the banks fiuctuated from minimum of $157,0o0'oo
on November 10, 1s04, and March a. 1909, 70 q
20 S170000,00O on August %
The deposits on which reserve is required-that
IS individual deposits and net bank balances
amounted on August 25 1905, to $4,135,O01OO3 OF
banks CEew-YorIl, Chicago and St. Louis) S1,275-
gate in the i1 two classes Beng s. 100000 and
$2,117oG0,0o0 by associations classed as country
banks.
BANK. EXAMINATION AND SUPERVISION.
After a careful study of the cases which have
come under my observation during the last four
o s 4,e haI In % aeoSteiI5 nreI,ent fraU51lent
bank failures The thorough and efficient
viii be discovered and the more fear of detection
will tend to prevent them, but they cannot be
surely and in every case prevented by any prac-
teal means outside Of the bank
I am also equally convinced by the same ex-
perience that with careful and ef1clent work on
the part Of the examiner, aided by intelligent ana
thorough letters of criticism based on the exam am
infeIligence with an honest desire 10 obey the
law. can, by cooperating with the examiner and
practically if not absolutely impossible
A bank does not often fail suddenly. me con
dition which leads to 1t is apt to be Of compare
Of failure is a large line of loans to some concern
Jerested, or to the officers themselves men me
loans new they look all riSht, ana lieluL5
are good; but II things go wrong ana inns oGestue
venture loses 1 Inc b e5 90 after bad with
the Inevitable result. 1t is surprising 10 see IN
honest and square have the honesty and moral moral
courage 70 faSe the ialilre OF IIeo1 phi ,,,f re-
sor9I6 80 bs5lr has failed without some of the
officers committing fraudulent or AIegaI acts -
After bank fails and disclosures, Of dishonesty
are made, it is wondered why such things cGnio 90
[ On "a ebIsa5 with Sr without reason In
some cases ne is very much TO blame but in those
not very IreqnetalS d rat these frauds and de-
cen4ions are in most Instances being carried on by
men Of unusual ablity-nen who stand very high
also in social religious and political matters
Almost Invariably they deceive Inc WaoIG Ce 9nd
even their families 1t is frequently an ASTOUNDING
faiIed' defaUlted, and perhaps absconded or killed
himself is not man OF wealth as Wen rI as r 1e9
who establish such regulations have the oppoII-
t6os sey Win 1t Skill skill shrewdness and peculiar courage
can carry them on for any legIe OIL e aroused
the examiner is as have said unaeF me the. gr f5
crime is committed He can discover thenl' Dut
he can not surely prevent such frauds
EXAMINATION SYSTEM EXTENSIVE
The system of national bank examination IS Inpen
the most extensive which has ever been undertaken
by any country or government ana the eHpeI 81 its
operation covers almost every conceivable trouble
M NAV ba bToHght either by dishonesty ncompe-
tency or neglect. The methods Of examination. re
been gradual $roNIn ~ them them serious and now
and weak points :. 1 IgnrL,ed very well In
the main the examiners have been 5allnl9l' COIL
The record of the national banks in regard to fail
ures is better than any banks we naV9 + T coprV
under at all similar Condltons. -, 49,, +oo- ~
OF the 1866 national banks which have peen Or
ganzed. AGO have failed or Or PEI PEI ar cent Of
Whole number as against aRoaL Iae Re per The
nsl5G G Snt1f rs per cent Of the amount due them,
tii he other banks have paid only ABOUT 20 per
cent Of the billions and billions OF dollars they
have had on deposit. the national banks nave IoSt
for their creditors the whole period OF their ex
is1ence oiS feature Of the present system OF
exaIrinations is that the examiners are P paid by
Of the Currency OF recent years nr % a. TIboia
change in this system Inc 20 q ~
attentive to tnelr iiEgaividuaI and the circvm-
Stances of their work, being away from the o6seT-
Fito0h mn ~ and see that an the work is well done.
H. +e11ytation to slight IT is sometimes too great,
and this should be removed as lar as possible by
Changing the basis of their remuneratlon. II is
not Reasonable to expect q complete audit Of the
books of bank ana me ceechng up OF GVer ~, og
one were TO employ a professional accountant TO
do such work II Woulu cost many times TINS
EXCESSIVE LOANS MADE BY BANKS,
With the increase Of the size Of business houses
come necessity for larger loans from the banks;
unless bank has an enormous cSPisal ,0 one
needed by any large customer Whch the Dank IeeIS