The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1909-09-22
ROLL Of HONOR
ONLY A FAKE
MEANS ABSOLUTELY NOTHING
Advertising Scheme Gotten PIP to Flat
ter Smaller Banks-YaEima
National a Victim.


cission as to the meaning of the So
called roll of honor of banking insti-
tutions published a few days ago. To
correct an erroneous impression the
following facts and figures have been
prepared by the Herald:
The roll of honor" so-called. is an
advertising supplement published by
the Financier of New York, and il
takes notice of no banks excepting
those operating under the national
system and there are many very large
private and state banks and banking
concerns like the Bank of California
of San Francisco, with a capital of
$4,000,000 and surplus of $1,000, 900
and the Bowery Savings bank of New
York. with no capital, but surplus of
over $4,000 900, that get no mention.
To get mention in the roll of honor
the national bank must have a surplus
account as great or greater than it's
capital and the following statement
of figures from the bank directories
will explain the misleading feature of
this system of advertising:
list. The First National bank of
Uniontown, Pa, ranks No. in the So
called roll of honor. 1t has a capital
of only 100000 and a surplus of 81
$4,000, while it has only $1,000, 900
in deposits, the capital being largely
disproportionate to the surplus.
End. The National City bank of
New York, with a capital of $25,0O0,-
900 and surplus of $4,000, 900 ranks
No. 1866, far below the Uniontown
bank, while it is the greatest bank in
the United States, with deposits of
$240, 100000. In addition to it's capital
and surplus, 1t has a stockholders liza
bility of $25.000,0OO. giving it's de-
pOsitors protection to the amount of
$75,000,000 In addition to assets the
deposits may be invested in.
3rd. The National Bank of Com
merce of New York, with a capital
stock of $25, 900 and stockholders
responsibility of $25,0OO,0O0, gets no
place in the roll of honor because it's
surplus as yet is only $15,394,00O.
4th. The Chemical National bank of
New York, one of the oldest and
strongest banks in the United States,
with capital stock of $300,000,0O0 and
surplus of 100000, for many years
occupied first place in the honor roll.
ing limitations of loans, it became
necessary to increase the capital
stock. This was done about two years
ago, $2,700,000 having been taken
from the surplus and added to the
original capital. The result of this was
to reduce the Chemical National bank
from No. 1 to No. 233 in the honor
roll, and this despite the fact that by
it's increased capital it's security to it's
depositors was increased almost 3d.
10000
The bank with 100000 capital
and 500 900, surplus gives it's de-
postors greater security than the
bank with 100000 capital and ST.
100000 surplus because of the addi-
tiOnal liability of the stockholders to
the amount of the capital, the law pro-
viding this double liability.
AS stated above, to be on the roll
of honor, the surplus of the bank rep
resented must be at least as great as
its capital, and the list is compiled re-
CARELESS Of the size and the RESPONSE
bility of the bank Or the volume of
business it may do, or it's Importance
in the community.
Therefore, a place in the roll of
honor is very often deceiving as to the
true standing and value of bank in
the community in which it does bust
ness, and Is valuable only as an adver-
Using scheme to banks with small
capital and small stockholders re-
sponsibility as compared with deposits
and volume of business. The comp
troller of the currency urges banks
with small capital and large surplus to
transfer some of the surplus to capital
stock so as to preserve proper ratio of
responsibility of stockholders to it's de-
positors according to the volume of
business done by the bank.
The United States government has
nothing whatever to do with the get
ting up of this roll OF honor. If the
importance and worth of the bank to
to be mentioned We're allowed to be
taken into consideration they would
doubtless give space TO many million
dollar concerns instead of to little
banks of small capital. 1t looks like
an effort to please the greater number
of advertisers.