Los Angeles herald., 1906-07-03
German.Amerlcan savinas
Southern California SAVINGS
Results Are ENCOURAGING

Financial authorities agree that there
IS no better barometer of general con-
ditions than the reports of savings
banks, for these banks hold the ac-
counts of the wage workers. and the
prosperity or the poverty of this class
OF people is indicated accordingly as the
savings deposits rise or fall. The show
ing now being made by the local saw
ings banks is highly encouraging In
the case of the Security Savings bank
there has been gain in deposits of
$2,Ol2,Sl2 in the last six months, and
gain in loans of $1,245, 63S. The bond
holdings of the bank have been swelled
by $669,939. The cash item is prac-
tically unchanged
In making a comparison of the re-
ports of the German-American Savings
hank, account must be taken of the
fact that this Institution absorbed the
Union Bank of Savings a few days
after its report was made last January
and that the statement now being
made represents the combined business
of the two banks. For this reason
the increases are much larger than
otherwise would have been the case.
Make Excellent Showing
Gains in all of the principal items
are shown as follows:
Deposits, $4,214,7S7; loans, $3,312,5O1;
capital, 100000; bond holdings, $77O,9O4;
cash, $3S4.194.
The Southern California Savings bank
also makes an excellent showing, not
withstanding its report is a little more
irregular than some of the others. In
the last six months this bank has made
a gain of $205,646 in deposits. and its
loans have Increased $4290O4. On the
other hand there has been a loss of
1858 in bond holdings and a decrease
of $SS,573 in cash.
The statement of the American Say
bags bank makes the following show
ing: Deposits $1,250,0 900; cash, $44O OOO
surplus and undivided profits, $40, 900.
Owing to the fact that yesterday was
the first business day of the new in
terest period a large number of de-
positors lined up at the paying tellers'
of all the savings banks. It
was one of tn busiest days these banks
have seen in long time.
Congress Helps Bankers
The national banks have been notified
of the enactment by congress of an
to the national banking
law, giving them a somewhat wider
latitude in the making of loans. Here
tofore national bank has been re-
stricted in the making of loans to the
extent that not more than 10 per cent
of its capital could be loaned to any
one individual. This law operated
against those banks which have a COM |
paratively small capital and a large
surplus. The Chemical National bank
of New York, for instance. has a capi- |
tai of only 100000, but it's surplus ac- |
count amounts to nearly $4,000, 900. |
Under the law as it has existed hereto |
fore, this bank counld not loan more |
than 100000, or 10 per cent of it's capital, !
to any one person.
At the last session of congress a bill |
was introduced to amend this law, and |
it was changed to permit a bank to loan |
10 per cent of it's capital, plus 10 per
cent of it's surplus. to one individual |
provided. however, that such loan does |
not exceed 20 per cent of the capital. |
The distinction that is made between |
the capital and surplus is not alto
gether satisfactory to a good many
bankers, but even with this distinc- |
ton it is admitted that the new law is |
a vast improvement over the old one.