The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-12-13
.PROSP EROUS YEAR
IN BANKING WORLD
Annual Report Of Comptroller OF
Currency Shows Some Re
markablc Figures.
ONLY FOUR FAIL U R { S
Intention Is to Weed Out All
National Institutions Which
Show Weakness.

Washington, December 12.--Anothe
year of prosperity and solid growth
for American banks Is recorded in the
annual report of the Comptroller OF
the Currency. presented to Congress.
to-day. Not only tho national banks
which come directly under the control
and supervision of the currency bu.
reau, arc included In the comprehea-
sive review of banking conditions, put
state banks, savings banks, trust com
6anies and other financial institutions
some 1880 others-are represented.
During the fiscal year OF 1910 the
combined resources of the 1000 ma
.ional banks Of the United States grew
to approximately 0o0,000,o00. on
september / last their loans and dis
counts had reached the immense sum
Of $1,000, 900. 000-an amount never be-
fore equaled in the history of the ma
:ional banking system since its crea.
ton in 1854. At the same time they
were counting nearly 100000. 600 of over
drafts in their assets, practice which
there is no law to stop.
wonderful Growth.
Combining all other banks in the
United states and Its Island posses
sions with those OF the national system,
and allowing an estimate for those not
reported, 1t is evident from the comp
trollcr's report that the banking power
of the nation has grown in the last
ten years from 1897 of all sorts OF
banks. with capital OF s1.l50,Oo0,oo0
and individual deposits of $7,6SS,oOOo00,
to more than $1,000 banks, With COM
bined capital close to 2.0oo.ooc,oo0 and
individual deposits OF nearly Slb,oOo,-
600 900 and Individual deposits of near
more than doubled in little more than
decade, and IN the same time the
combined loans and discounts nave
grown 10 more than $4,000, 100000.
The volume of business is reflector
in reports which have been assembled
from 1877 clearing house exchanges
showing combined clearings of $685.
100000, 600 for the year ended on sep.
TENDER 80. as against Sl5S,Soo,ooo,oV
for 1909. With the exceptions OF en-
cinnati, o., Houston, TEX, eireensourS'
Pa. Fremont, Neb, FRANKLIN. IA, COL
| ora.io Springs. Col, and Nicksours
| Miss. the year showed an increased
volume of business transacted the
Nav york Clearing House Association
represented so per cent of the clear
inrs OF all associations Of the country,
and during the current year mas
/ reached s1o2, 600, 900, oOo--some $4,000
100000 greater than in 1909. For these
: enormous transactions balances OF only
I little more than s4,oo0,ooo.oo0 were
! used.
/ Four Actual Failures.
-Four actual national bank failures
marked the year. Final settlement OF
/ The affairs OF eighteen insolvent banks
was made in which depositors received
nearly Sc per cent These admlnistra-
! lions were made at an average cost Oh
about . per cent on the collections'
/ From the date of the first failure IN
/ 1865. 5t4 national banks have been
\ n,aced in the hands of receivers. and
!! twenty-five of them have been re-
stored to solvency. More than Ss.aoo.-
600 in dividends was paid to de-
positors of insolvent banks d"ring the
/ year.
on the whole, 1t appears from the
report that national banking conserva-
lively conducted is a profitable enter
prise. The net earnings of the 1000
/ national banks during the year We're
more than s154.oOo.ooo. from which
\ dividends of sos, 100000 were paid at
4 the rate of more than 10 per cent. on
their capital. The government, too
4 has profited from the existence of the
4 national associations. for since theiI
/ beginning it has received more than
l see, 00l 900, Of which more than %
per cent has been for circulation taS
1 on the bank notes they issue,
With the exception of banks which
have become insolvent as result OF
defalcations or other dishonesty
failures have been almost wholly due
to incompetent or reckless manage
ment. the report says, and persistent
violations of the national banking
laws and the practices governing con
sentative banking.
"a large percentage of the bank!
that have failed should have gone into
voluntary liquidation before the,
reached the conditions which pre-
cipitated the failure" says Comptrolle
Murray.
Weed Out Weak Ones.
! The report leaves no room to doub
1 that it Is the intention of the presen
administration to rid the national bank
ing system OF weak banks by guiding
them into voluntary LIQUIDATION, com
bination with stronger institution
h wherever possible, or to dlscontinu
i business as last resort where ther
is 10 probability other than failure
In this wav the comptroller believe
depositors can be paid in full and share
holders can save some Of their invest
ments and escape the double liability.
During the year lis national bank
went into voluntary liquidation. man,
n of them yielding to that policy, som
4 were absorbed, others consolidated
many left the national banking fiel
and continued as State organizations
Z and some discontinued business alto
| gether,
1T is the purpose" the report says
| Ito get out of the national banking
! system every bank which is manage