Omaha daily bee., 1910-12-13
NATIONAL BANKS PROSPEROUS
COmptroller's Report Shows that De.
poSits Double in Decade.
FOUR FAILURES DURING YEAR
All Clearing Houses Except seven
show Increase During Year
Speculative BANKERS TO
he ELIMINATED.

WARRINGTON. Dec. 12--AnOther year OF
prosperity and solid growth for the banks
OF the United States is recorded IN the
annual report OF the comptroller Of the
currency, presented to congress today. Not
only the national banks which come d.
rectly under the control and supervision
OF the currency bureau are included in the
comprehensive review Of banking condi-
tons, but state banks. savings banks.
trust companies and other financial inst-
tutions-some 1880 others-are represented.
During the fiscal year Of 1910 the COM
bined resources Of the 1000 national banks
Of the United States grew to approx
mately n,OOo,OO0,OO on September last
their loans and discounts had reached the
/ immense sum OF s., 40OO00.OOO. an amount
never before reached in the history OF the
national bank system since its creation
/ In 1854 At the same time they were count
Ing nearly S50,OOOOO0 Of overdrafts in their
assets, a practice which there is no law TO
stop.
Combining all other banks in the United
States and its island possessions. with
those OF the national system and allowing
an estimate for those not represented, il
is evident from the comptroller 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 81 10000 and in
dividual deposits of S76Ss,0OOO to more
than 1900 banks with combined capitals
close 20 S20O0.OO0O00 and individual de-
posits Of nearly $4,000, 100000 The deposits
have more than doubled in little more than
decade and in the same time the COM
bined loans and discounts have grown to
more than $1,000. 100000
Decrease Mt Few Points.
The volume Of business ID rafloctad In
reports which have been assembled from
1877 clearing house exchanges showing COM
bined clearings of $3.50 OOO,O 10000 for the
year ended September 30, as against
SIS. 500, 10000 for 1893. with the excep-
tons OF Cincinnati, O.. Houston Tex,
Greenburg, Pa, Fremont Neb, Franklin,
Pa, Colorado Springs, Colo, and Vicks-
burg, Miss, the year showed an increased
volume OF business transacted. The New
York Clearing House association repre-
scented so per cent Of the olearings Of all
associations Of the country and during
the current year has reached S102, 900 900 600 |
some SS,OOc,O 900 greater than In 1909. For
those enormous transactions balances OF
only little more than f4OO0OOO,OOO were
used
-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 administrations were
made at an average cost OF about per
cent on the collection. From the date Of
the first failure, in 1866, 514 national banks
havesbeen placed IN the hands Of receivers
and twenty-five Of them have been re-
stored to solvency. More than s., 600 in |
dividends was paid to depositors of In |
solvent banks during the year.
On the whole, IT appears from the report |
that national banks, conservaively con-
Quoted. are a profitable enterprise. The net
earnings Of the 1000 national banks dur |
ing the year were more than 1854, 900 600, |
from which dividends Of sos, 10000 were
paid-at the rate Of more than 10 per cent |
Of their capital The government, too, has |
profiteds from the existence OF the national /
associations, for since their beginning it 1
has received more than 500. 900, of which |
more than % per cent has been for circu- |
latlon tax on the bank notes they issue |
Failures Due to CareIeHsness.
With the exception of banks which have
become insolvent as a result Of defalca-
lions OF other dishonesty. failures have
been almost wholly due TO incompetent or
reckless management the report says and
persistent violations Of the national bank
ing laws and the practices governing con-
sentative banking.
A large percentage Of the banks that
have failed should have gone into volun-
tary liquidation before they reached the
conditions which precipitated the failure"
says Comptroller Murray.
The report leaves no room to doubt that
1t is the intention of the present admins
trauon to rid the national banking sys-
TEN Of weak banks by guiding them into
voluntary liquidation, combination with
strong institutions wherever possible or
to discontinue business as a last resort
where there is no probability other than
failure In this way. the comptroller be-
heves, depositors can be paid in full and
shareholders can save some of their in
vestments and escape the double liability
During the year lis national banks went
into voluntary liquidation. many Of them
yielding TO that policy some were alb
sorbed, others consolidated. many left the
national banking field and continued as
state organizations and some discontinued
business altogether
1T is the purpose" the report says. ito