The Oskaloosa herald., 1910-12-15
GREAT SHOWING
MADE BY BANKS
Resume Of Annual Report Of the
Comptroller Of the Currency.
IOWA'S TREMENDOUS GROWTH
Only Four Failures of National Banks
During the Year, While Eighteen
Banks Close and Pay DEPOSIT
tors - 1888, 000, 900.

other year of prosperity and soliC
growth for American banks is re
corded in the annual report of the
comptroller of the currency, present
ed to congress. Not only the nation
al banks which come directly under
the control and supervision of the
currency bureau are included, bu
state banks, savings banks, trust
companies and other financial institu
lonesome 1880 others are repre-
scented.
During the fiscal year of 1910 the
combined resources of the 1000 ma
tional banks of the United States
grew to approximately $1,000, 900
On Sept. l, last, their loans and dis
counts had reached the immense sun
of SIS, 40O,000,00O - an amount never
before equaled in the history of the
national banking system since its
creation in 1864. At the same time
they were counting nearly $4,000,
900 of overdrafts in their assets, a
practice which there is no law to
stop.
loWa's Tremendous Growth.
Combining all other banks in the
United States and its island posses
sions with those of the national sys
tenn and allowing an estimate for
those not reported, it is evident from
the comptroller's report that the
banking power of the nation has
grown in the last ten years from H.,
977 of all sorts of banks, with capital
of $1,150,0 100000 and individual de-
posits of $7,6SS, 100000 to more than
10000 banks with combined capital
close to $4,000, 100000 and individual
deposits of nearly $4,000, 000 900
The deposits have more than doubled
in little more than a decade, and IN
the same time the combined loans
and discounts have grown to more
than $12,0O0,O00,0
Volume of Business Increases.
The volume of business is reflected
in reports which have been assem-
bled from 1877 clearing house exchang
IS showing combined clearings OF
$169, 000, 100000 for the year ended
on Sept. 80, as against $15S, 100000,
600 for 1909. With the exceptions OF
Cincinnati, O., Houston, Tex, Greens
burg, Pa, Fremont, Neb., Franklin
Pa, Colorado Springs, Colo, ant
Vicksburg, Miss, the year showed al
increased volume of business trans
acted. The New York Clearing
House association represented G.
per cent of the clearings of all asso
Citations of the country and during
the current year has reached $4,000,
OOO, 900, some $3,00O,000,000 greater
than in 1909. For those enormous
transactions balances of only little
more than $4,000, 100000 We're used.
Only Four Actual Failures.
Four actual national bank failures
marked the year. Final settlement o.
the affairs of eighteen insolvent
banks was made in which depositori
received nearly sc per cent. These
administrations were made at al
average cost of about 5 per cent or
the collections from the date of the
first failure in 1855, GA nationa
banks have been placed in the hand!
of receivers and twenty-five of then
have been restored to solvency
More than S3,300,000 in DIVIDENDS
was paid to depositors of insolven
banks during the year.
On the whole, it appears from th'
report that national banking conser
yatiyely conducted is a profitable en-
terprise. The net earnings OF thu
7 900 national banks during the yea
were mere than S154 100000, from
which dividends of S1O5,O0O,O0o were
paid at the rate of more than 10 PEE
cent on their capital. The govern
ment, too. has profited from the ex
istance of the national associations
for since their beginning 1t has re
ceived more than $2O2,OOO,Ooo, 0
which more than 80 per cent ha
been for circulation tax on the banl
notes they issue.
Failures Result Of Law Violations.
With the exception of banks whicl
have become insolyent as a result 0
defalcations or other dishonesty. fal'
ures have been almost wholly due q
incompetent or reckless management
the report says, ant persistent VIC
lations of the national banking law
and the practices governing consei
vative banking.
"A large percentage of the bank
that have failed should have gon
into voluntary .quidation before the
reached the conditions which precip
tated the failure" says Comptroile
Murray.
! The report leaves no room TO dout
that it Is the intention OF the presef
administration to rid the nation'
banking system OF weak banks .
guiding them into voluntary liquid
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