The Birmingham age-herald., 1909-12-11
NATIONAL BANKS IN GOOD SHAPE
Report Is Submitted By Comp
 trolIer of the Currency
MILLIONS OF DEPOSIToRS
Loaning Power of Banks Has Been Greatly Increased as the Result of New Law While Deposits
 Are Much Heavier.
f Banks Has Been


 Are Much Heavier.
 Washington, December 1O--An increase in individual deposits of s400 15s. .322. in loans and discounts of $30S, 957 and in total resources of 1894. SIS As6-these are features shown in the comptroller of the currency's statement of the condition of the national banks on November 16, this year. as compared with the last re- ports made in 1908 as of November 27
 Loans and discounts of the banks on November 16 amounted to $5,14S, 7s7,se4 and deposits were s5.169, 9,510.9s3.
 The percentage of legal reserve to de- posits on November 16 was 21.S as against 2.S2 a year ago. Banks In the south made a stronger showing in the percentage of reserve than at the time of their report to the comptroller in response to his call for condition on September l. This is considered remarkable in view of the fact that between September and November large amounts of money are drawn from the banks to meet expenses Of moving crops.
 More than 25,00O,O00 depositaries are car ried on the books of the banks of all classes of the United States and it's in- sular possessions. The aggregate de- posits on April B. last, were about sl4,- 425, ,52s, 1s5. The sum of $. .67S, 6.s7s repre- sented savings deposited by 14ss4.S9s de- positors The average rate of interest paid by national banks on savings &C., counts was 3.s4; by state banks 3.n; mu- tual savings 3.S5; stock savings S.6o; pri- vate banks and loan and trust con- panies paying the same average rate, 3.4S per cent.
 Loans Well Secured.
 Loans and discounts, United States bonds, and lawful money represented sp- proximately 70 per cent of the aggre- gate resources of national banks, and a like proportion of liabilities is represented by capital, surplus and profits and indi- vidual deposits. The comptroller figures out that assuming the character of bonds owned by national banks in accordance with the requirements of the act May 3. 1908, the amount Is more than sufficient as security for the aggregate emergency currency, $500 100000, authorized by that law. Holdings of bonds and other siuli- lar securities by national banks Septem- ber 1 showed investments of this oharac- ter amounting to $Sss, ,sss, ,542. The interest ing fact is disclosed that t20,OOo.0oo is in foreign government and other bonds and securities.
 
 Based on the latest returns, the comp troller says the leaning power of the na- tional banks has been increased as a result of the law of June, 1905, to the ex- tent of 62 per cent, although with surplus twice as great as the capital of the banks the authorized increase is 200 per cent. The law referred to increased the limit of the liability to banks from 10 per cent of paid-in capital stock to 10 per cent of the capital and surplus, the total. however. not to exceed 30 per cent of the capital stock.
 Earnings of Banks.
 By reason of the depreciation in the market price of government bonds during the year the computed profit on the Issue of national bank circulation increased slightly. The gross earnings of national banks during the year were sS4s, ,674, ,s6s, from which losses and premiums were charged off to the amount of 40, 46a, ,706, being 1.6 per cent of the gross earnings, and SIT, 1898 expenses and taxes the net earnings being $131, ,1s5,74s, from which dividends were paid amounting to tS2- sss. .44s
 Nearly 30 per cent of all depositors in savings banks are reported in the New England and eastern states, and little more than N per cent of deposits in this class of banks is held by savings banks l in these two geographical sections. The aggregate of paid-in capital stock of the banks of the United States, including the island possessions, Is q, ,sOO, ,OSs,s6s. an in- crease of about 2h per cent for the year and over 75 per cent above the amount reported on June 30, 1900.
 Last April in round amounts the na- tional banks held s482S. 100000 individ- ual deposits savings banks, $3,n3,00o.- 600; loan and trust companies $2,S35, O00,O0O; state banks. g, +ss, ,000,00o, and pri- vate banks, $193,o0o.000. Geographical ly the individual deposits reported by banks in the eastern states aggregated ss047. .OoO,ooo; in the New England states, s210S, oO0. eco; in the middle western states.  05S, ,O00. 900: in the Pacific states, $s97, coo GOO; in the western states, S700.0 900. and in the island possessions, $2S, ,00e, 900.
 Deposits Are Heavy.
 Deposits amounting to over s4926. coo, ,oo0 or 35 per cent of the total individual deposits in all banks were savings and in addition over s1.211. .0000O0 were time deposits. The individual deposits sub- ject to check aggregate over $6.956. 5O0. 900 demand certificates of deposit over s625,- ee0co0. and the aggregate of other minor classifcations over s315, ,9O0,000.
 Banks In the New England states held in round amount sss3oo,0o0 in actual cash those In the eastern states, s7I6, 200, GOO in the southern states. s105. 800 0No; in the middle western states, 1873, 4O0,000; in the western states. $710o0,oco; in the Pacific states, $ssG0o,00O and the banks of ths Island possessions. s7,7D00oO.
 The banks of the country have in creased their loans since 19oS by $685.. 2o0o00 or from s10, 438. .OOO. 900 in 1908 to $l1, 373 GOO in .909.
 School savings banks arc in operation in IA cities of 25 states with 1sG.82S de positors.