The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-12-28
GREAT GROWTH Of
NATIONAL BANKS

WASHINGTON, December 13.-An-
other year of prosperity and solid
growth for the banks of the United
States is recorded in the annual re-
port of the Controller of the Cur
rency, presented to Congress today.
Not only the national banks, which
come directly under the control and
supervision of the currency bureau,
are included in the review of banking
conditions, but State banks, savings
banks, trust companies and other
financial Institutions some $4,000
others-are represented.
During the fiscal year of 1910 the
combined resources of the 1000 ma
tional banks of the United States
grew to approximately $4,000, 0OO,O 900
On September LIST last their loans and
discounts had reached S5,400, 900, 600
an amount never before equaled in
the history of the national banking
system. At the same time they were
counting nearly $30,OOO,OOO of over
drafts in their assets, a practice
which there is no law to stop.
Combining all other banks in the
United States and it's possessions with
those of the national system and al.
lowing an estimate for those not re-
porting, it is evident from the Con-
troller'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 $1,150, 000,0 900
and individual deposits of $76SS, 000,-
coo. 20 more than'27 900 banks, with
combined capital close to 100000, 900
and individual deposits of nearly SIC,
OO0,OO0,OOO. The deposits have more
than doubled in little more than a
decade and in the same time the COM
bined loans and discounts have
grown to more than $4,000 900, 600
The volume of business is reflected
in reports from 1877 clearinghouse
exchanges showing combined clear
ings of ,OO0,OOOOOO for the year
ended on September Goth, as against
S15S, 800, 100000 for 1909 With the
exceptions of Cincinnati, Houston,
Greensburg, Pa; Fremont, Neb.;
Franklin, Pa; Colorado Springs and
Vicksburg, Miss, the year showed an
increased volume of business tran
saoted
The New York Clearing House AS
ISOLATION represented 60 per cent OF
the clearings of all associations OF
the country, and during the current
year has reached 100000 900,
some $3,O00,O0O,0OO greater than in
1909 For those enormous transac-
lions balances of only a little more
than $4,0O0,OOO,OO0 were used.
Four actual national bank failures
marked the year. Final settlement of
the affairs of eighteen insolvent banks
was made, in which depositors re-
ceived nearly $50 per cent. These ad-
ministrations were made at an average
cost of about per cent on the col
lections. From the date of the first
failure in 1865, 514 national banks
have been placed in the hands of re-
ceivers and twenty-five of them have
been restored to solvency. More than
So 100000 in dividends was paid to
depositors of insolvent banks during
the year.
On the whole it appears from the
report that national banking, con-
servatively conducted, is a profitable
enterprise. The net earnings Of the
1000 national banks during the year
were more than $154,OO0,00O, from
which dividends of $1O5,OOOOOO were
paid-at the rate of more than 10 per
cent on their capital. The Govern
ment, too, has profted from the exis'
| tence of the national associations, for
since their beginning it has received
more than $2Oz,OO0,00O, of which more
than 80 per cent has been for circula'
ton tax on the bank notes they is
sued. With the exception of banks
which have become insolvent as q