New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-12-13
BANKS SHOW PROSPERITY
Controller Murray Reviews Their
Growth in Last Year.
ENORMOUS TRANSACTIONS
Mr.. Murray States His Purpose
to Weed Out All Unsolnd
National Banks.

washington, Dec R--Another year OF
prosperity and solid growth for American
banks is recorded in the annual report Of
Lawrence o. Murray, Controller Of the
Currency, presented to Congress to-day.
Not only the national banks, which come
directly under the supervision of the Con-
troller, are included in the review, but
state and savings banks, trust companies
end other financial institutions numbering
| 1850 are represented
| In the fiscal year of 1910 the combined
resources Of the 1900 national banks OF the
United States grew to approximately $1,000
COG 900. On September their loans and dis
counts had reached the immense sum of
| s. 200 COO Gp1-en amount never before
equalled in the history OF the national bank
ing system They were counting nearly SO
0oe,coo Of overdrafts in their assets, prac-
/ tce which there is no law to stop.
| Combining all other banks III the United
States and its island possessions with those
of the national system. and making an est
mate for those not reported. the report
shows that the banking power OF the ma
| ton has grown in the last ten years from
Is, sT banks OF all kinds. with a capital OF
| 81 $50. coo 600 and individual deposits OF ST.
SIS coo 900. to more than 1900 banks, with q
capital of close to s2,0o0,o@0G0o and fndi-
vidual deposits Of nearly sic, $50. oG0,H01 The
deposits have more than doubled in little
more than decade. and in the same time
the combined loans and discounts have
grown to more than S12.09o. o00,o0N-
The volume Of business is reflected in re-
ports from 1877 clearing houses, showing
combined clearings Of sls9, 600, ooo,eoo for the
year ended Oh September 80, as against
/ SIS, 500 coo for 1909. The New York Clear
tod IA
cent Of the ctearings Of all associations OF
the country, and in the current year Its
transactions amounted to $4,000 600, 600.
about 5000 01o00 more than In 1909. For
this enormous business balances of little
more than A,0e0.oo0.ooo were used.
/ Four national bank failures marked the
year. Final settlement OF the affairs OF
eighteen insolvent banks was made, In
which depositors received nearly S. per cent.
From the date of the first failure, in 1855,
514 national banks have been placed in the
hands of receivers and twenty-five OF them
have been restored to solvency.
Conservative Banking Profitable.
On the whole, the Controller shows, ma
ticnal banking. conservatively conducted, Is
a profitable enterprise. The net earnings OF
THE 1905 national banks in the year were
more than Sl54,pU,tJb, IRON WHICH uiNtoS-lES
Of Sl05 coo 600 were paid, at the rate of more
than 10 per cent. The government has re-
ceived from them more than S3l2oo 10000. OF
which more than 20 per cent has been fol
circulation tax.
With the exception Of banks which have
become insoiyent a result OF defaica-
ltiors or other dishonesty, failures have been
almost wholly due to incompetent or reck-
less management and persistent violations
of the national banking laws and the pTac-
tees governing conservative banking.
| "A large percentage of the banks that
have failed should have gone into Volun-
Itary liquidation before they reached the
iconditions which caused the failure" said
Mr.. Murray.
The report leaves no room to doubt that
lit is the intention of the administration TO
rid the national banking system Of weak
banks by guiding them into voluntary liqui-
idation, q combination with stronger III
| stitutions wherever possible or TO dtscon-
iinue business as a last resort
at is the purpose the report says, TO
get out OF the national banking system
every bank which Is managed in such q
careless, reckless and speculative or in
competent manner as 20 endanser the safer
ty Of its depostors."