Evening journal., 1907-12-16
REPORT ON THE
CURRENCY
Annual Statement Of the
Comptroller for the Year
Ending, October 81


ing is a synopsis Of the report OF the
Comptroller Of the Currency for the year
ended October 81, 1907:
Early in the year conditions In the
United States and abroad evidenced tho
probability Of contraction OF business in
general and ughtness Of the money mar
ket but the extraordinary conditions de-
veloping IN october were not foreshown
10 an appreciable extent IN the banks
reports as a whole up to August o. It Is
stated that there was a steady increase IN
the volume Of loans and discounts from
S4.366 205 on November T.. 1906. TO 81
67S S5S396s on August 22 1907. the total in
crease being S3i2.5SS Ga This increase was
due IN part to the fact that sic banks. with
authorized capital Of s3i,957.000, were char
tered during the year, but mainly to the
increase in business Of the older assoc'a-
tions Since the date Of the corresponding
report IN 1905 (september d the banks in-
creased their Investments IN United states
bonds on August % 1907. to $3.50. 297 4io. a
net increase Of 50. i.5o0.7s0. Lawful money
held by the banks on August 22 aggrorat-
ing S7ol. .623. .532 consisting OF S5g1 ,1O7,75o Ia
specie and Si7o5l5,7s2 in legal tenders, ex-
ceeded the amount held IN September
1906 by SI5.eili2i In addition TO lawful
money. the Banks held on August %. $685..
5d.657 IN notes OF other banks. fractional
currency, etc. The only notable diminu-
ton in assets was I'm exchanges for clear
ing house, the net decrease being s20t78s-
S2A Between November 70. 1905. and jan
uary 26. 1907 there was a reduction IN exc
changes OF S2is, M a fall from 1876. 072. .
1856 to si2S.2i9.6i9. In the period between
the January and March calls there was an
increase Of Sisf6i7117 and from March 70
May Of Sl023i, 1888. on August p the
amount had fallen Ss2,4gs9os. or to $780,
602 168
Considering the liability side OF the
banks accounts. there is shown 70 have
been an Increase Of from $4,000. 900 10
Sls,0O0W0 In capital stock between each
call, the net increase for the year being
s6lSsi5lS While there was but a nominal
increase In net undivided profits, approxl-
mately S6,0O0o00. the increase IN surplus
funds was S5S,O5s47S. this account on
August % standing at s5iS. .303 e02. as
against Si9o,2i5,12i in September. 1906 The
act OF June % 1906, amending section $500
| of the Revised Statutes. to permit OF a
loan to a single interest to the extent OF
/ 10 per cent OF capital and surplus. the ag-
gregate not TO exceed 20 per cent Of capt
I tai stock, unquestionably resulted IN ex.
traordinary additions 70 the surplus fund
rs on June IS 1906 with capital ss2g1ea. .7ss.
the surplus amounted 70 but So. SIS isl.
] approximately "a per cont OF capital. while
on August p. 1907 the surplus exceeded
I 60 per cent OF the capital stock
/ Individual deposits. representing over
so per cent OF the banks liabilities, reach.
ed the maximum in the history Of tho
system on May 20, 1907. when they
: amounted to S4322. $50 141. The amount to
the credit Of depositors op August %
was A.3l9 025. i02. a decrease Of S3S44, ,7g9
The gross increase in deposits during the
year was $2970S5 1876; the gross decrease
/ Sl7796S, 5i4, leaving the net increase S11o
091092
] Government deposits in the banks were
at their lowest on November l2 1906.
standing at si29 1882 This account in
creased 10 45.S9l090 on January &c; de-
clined 20 si4O.sOl794 on March p; in
J creased to $40 os2,64 on MAY 20. and de.
lcined to SlfS2s2.S93 on August p.
With the exception OF the returns on
March %. when a decrease Of S2.161 4g5
was shown in the amount Of circulation
outstanding. as compared with the jan
uary call. there was a steady increase
in circulating notes during the year, the
net increase on August %, 1907. over Sep
tember T. 1906 being $ss9Si.950
The liabilities Of banks on account o.
rediscounts and bills payable nuctuated
from a minimum Of s27 2so.sls on January
26 to a maximum Of $50 1909 on August
p, the net Increase ON the latter date over
September 4. 1906. being SlO.S33. .S67.