The San Francisco call., 1910-12-13
1910 PROSPEROUS
YEAR FOR BANKS
Comptroller of the Currency
Sends His Annual Report
to Congress


year of prosperity and solid growth for
the banks of the United States is re-
corded in the annual report of the
comptroller of the currency, presented
to congress today
During the fiscal year of 1910 the
combined resources of the 1000 nation
al banks of the United States grew to
approximately $40, 200, 600, 900 Septem-
Der last their loans and discounts had
reached $5,4oo, 900, 0o0-an amount never
before equaled in the history of the
national banking system. They were
counting nearly ssO.OOo.oOo of over
drafts in their assets. practice which
there Is no law to stop.
1t is evident from the comptroller's
report that the banking power of the
nation has grown in the last 10 years
from 1897 of all sorts of banks, with
capital of s1.150,O00, 900 and Individual
deposits of s7.6SS, 900, 900 to more than
$1,000 banks with combined capital
close to 50, 900, 900 900 and individual de-
posits of nearly $4,000. 000,0 900. The
combined loans and discounts have
grown to more than s12.000.o00, 600.
BIG CLEARING INCREASE
The volume of business is reflected in
reports from 1877 clearing house ex-
changes showing combined clearings Of
$169,000. 100000 for the year ended Sep
tember 30, as against $15S.800. 600. 900
for 1909. With the exceptions of Gin
cinnati o.; Houston, Tex; Greensburg,
Pa; Fremont, Neb.; Franklin, Pa; Col
orado Springs, and Vicksburg, Miss,
the year showed an increased volume Of
business transacted
The New York clearing house asso-
citation represented 60 per cent of the
clearings of all associations of the
country and during the current year
has reached $102, ,000, ,000, 900, some
s3,000,000.O00 greater than in 1909 For
those enormous transactions balances
of only little more than $4,000, ,000, 900
were used
Four actual national bank failures
marked the year. Final settlement of
the affairs of Is insolvent banks was
made in which depositors received
nearly Sc per cent. These administra-
tions were made at an average cost of
about per cent on the collections.
From the date of the first failure in
1865 514 national banks have been
placed in the hands of receivers and
25 of them have been restored to sol
vency. More than $1,000 900 in divi-
vent banks during the year.
The net earnings of the 1000 national
banks during the year were more than
81 100000. from which dividends of
$105, 100000 were paid, at the rate of
more than 10 per cent on their capital.
The government, too, has profited
from the existence of the national as
sociations, for since their beginning it
has received more than $202, ,O00, 600, of
which more than go per cent has been
for circulation tax on the bank notes
they issued.
With the exception of banks which
have become insolvent as a result of
defalcations or other dishonesty. fail |
ures have been almost wholly due to
incompetent or reckless mana cement, I
the report says. and persistent viola
tions of the national banking laws and |
the practice governing conservative
banking.
"A large percentage of the banks
that have failed should have gone into
voluntary liquidation before they |
reached the conditions which precipi- |
tated the failure says Comptroller
The report leaves no room to doubt I
that 1t is the intention of the present |
ton to rid the national /
banking system of weak banks by /
guiding them into voluntary liquida-
tAOlif co COlllbIudllOn Will stronger III
stitutions wherever possible, or to dis
business as a last resort In /
this way the comptroller believes de-
positors can be paid in full and share |
holders can save some of their invest I
ments and escape the double liability.
FOR FAILURES
During the year lis national banks
went into voluntary liquidation, many
of them yielding to that policy. Some
were absorbed, others consolidated;
many left the national banking field
and continued as state organizations
and some discontinued business alto
gether.
National banks. of course, provide the
principal market for United States
bonds Their investments in these
securities have increased $4,000. 900 in
the last year and they now hold $780,
100000 Of these bonds. of which ap- I
proximately $500. 100000 are per n
cents
Clearly it is evident that the ma
tional banking system has experienced II
Its greatest growth in the last 10 years.
More than half the national banks now II
in existence have begun business
within that time and have a combined
capital of s280,00O, 900.
The bank note circulation of the II
increased at the same time 4
from s254000.000 to $713, 1000, 900 and
reached the maximum in the history of
the institutions in April of this wear