The silver state news. [volume] (Winnemucca, Nev.) 1907-1909, 1907-12-26
REPORT OF COMP.
TROL.LER OF
CURRENCY

WASHINGTON, Dec. 21.-The. an
nual report of Comptroller of the~Cur
rency William B. Ridgley has been
made public. The report in brief is as
follows:
early in the year conditions in the
United States and abroad evidenced
the probability of contraction of bust
ness in general and lightness of the
money market, but the extraordinary
conditions developed in October were
not f%oreshown to an appreciable ex-
tent in the banks reports as a whole
up to August 22nd. There was a
steady increase in the volume of loans
and discounts from $4,3B6, 045, 295 on
November IL, 1906, to $4,67S,5S3, 96S
on August %, 1907, the total increase
being $312,53S,673. This increase was
due in part to the fact that sic banks
with authorized capital of $34, 967 900
were chartered during the year, but
mainly to the increase in business of
the older associations.
Reserve Cities Held $2,3O3, 652, 443.
"Of this the so banks located in the
central reserve cities, New York, Chi
cago and st. Louis, held 81, 061, PIP, AIS,
and the 306 banks in the other re-
serve cities held investments of this
character to the amount of 81 ,242, 440,
02S, the total for both classes of re
serve cities being $2,303, 652 ,443.
"On August %, 1907, the deposits
on which reserve was required mount
ed to S., 1856, 085 ,0S7, the reserve $1,121,
358,395, the average being 21.33 per
cent; that of the central reserve city
banks 26.1S per cent; of other reserve
city banks 25.46 per cent and of coun-
try banks 1858 per cent. The average
on January 26 for all banks reached
26.87 per cent the highest of the year.
Net Increase in Capital Stock.
Gin the year closed October 81, 1907,
there was a gross addition to the cap
ital stock of National banks of $76.
las, 5000, the losses being by liquidation
$111 1926 900; expiration of charters,
1920 1000; by failures, 1925 900; by re-
duction of authorized capital $4,000.
Total decrease, $113,0SO,0 900, the ap-
parent net increase being 500, 06S. 900.
"The average capital of the $3.50 as
sociations in existence October 81.
1907, was $136,73 The authorized
capital stock of all the national banks
at the close of the current report was
$909, 274,775; circulation outstanding
1862, 1877 GA, secured by bonds depos-
tied to the amount of 1866, 1894, $40. The
aggregate circulation outstanding was
5000 $50, 466, which includes SAT ,252 1852
deposited with the treasurer on account
of liquidating and insolvent banks and
those reduAing their circulation.
increase in Circulation.
"There was an increase in national
bank circulation between 1900 and
1907 Of $685., 100000, over 140 per
cent.
"The capital of 6,643 banks report
ing was $S42, 685 1896, on which divi-
dends were paid to the amount of $780,
728,239, an average of lis per cent.
The gross earnings were $314,7 01 ,592.
against which were charged profits
and losses of $30,922, 1872 and expenses
of $131 ,543 ,975, leaving the net amount
of earnings 1852, 235 ,432.
Individual Deposits Increase.
"The individual deposits in all re-
porting banks were $13, 099, 615,345, a
gain of over SIS, $3.50. 900 900 within the
past seven years. During the current
year there has been a gain of approx
mately 1884, 000, 900 or 1928 per cent.
"The amount of money held by Ma
tional and other reporting banks in
the United States June 30, 1907, was
81 JOG, SOC, 900 or a gain of $95, 800, 900.
The total stock of money July LIST of
the present year in the United States
was reported at 3,115,60 900, being an
increase of $45, zoo, 900.
"The banking power of the United
States in 1907 as represented by capt
fol ourp1,,o aud nthar prnEfo 1annaifa
and circulation of national and other
1924, 847, 6S2; the combined banking
power of the world is $2S, 874 ,00O, 900.
Bankers Afraid of Banks.
"The conditions which led to the
panic of October and November, 1907,
were not due to the failure of a few
individual banks. They were not due
to the lack of confidence of the people
but more to a lack of confidence of the
banks in themselves and their reserves.
Banks have been fearful that the re-
serve system would break down, and
in consequence it has broken down,
and the reserve deposits have been
only partially available.
"They were also fearful that not
sufficient currency could be supplied to
meet the demand, and as they all made
the demand at once, there has not been
sufficient currency The result has
been a currency famine.
Suggests a Remedy.
:The remedy for this state Of af-
fairs is to improve the reserve sys-
TEN so that the reserve deposits of the
banks can be kept in a bank where
they are surely and certainly avail
able. We must impart to our currency
system some element of elasticity so
that when there comes a sudden de
mand for currency, it can be supplied
in bank notes without depicting the
supply of reserve money.
Favors Central Bank of Issue.
"These two desirable changes can
be best accomplishment fact, they
can only be satisfactorily accomplished
through the establishment by the
government of a central bank of issue
and reserve.
"Such a bank would not only solve
the two great problems of our bank
ing system, but it would also provide
Il