Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-12-12
COMPTROLLER OF CURRENCY
PREsENrs COMPREHENSIVE
REVIEW or PAST TEN YEARS.
BANKING POWER OF NATION
INcREAsEs MANY FOLD
Comptroller Notes Advance in Work Of
Minimizing Failures by Putting
Weak Bank, Out Of Business Before
Collapse comss-FaiIurss Due to Dis.
honesty or incompetent Management.

Washington, Dec. 12.-Another year
Of prosperity and solid growth for
American banks is recorded in tho an
nual report Of the comptroller Of the
currency. 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 comprehensive review
OF banking conditions, but state banks.
savings banks. trust companies and
other financial insttutions-some 49,
$50 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 $1,000. 100000. On
Sept. 1 last their loans and discounts
had reached the immense sum Of $5,-
400 0.0O0-an amount never before
equalled in the history OF the national
banking system since its creation in
1864. At the same time they were
counting nearly S30.oo0.0o0 OF over
drafts In their quota. practice which
there Is no law to stop.
Banking Systems Growth.
tAh OlilCI DduhS III INc
United States and its island possessions
with those Of the national system and
allowing an estimate for those not re.
ported. 1t Is evident from the comptrol-
ler's report that the banking power Of
the nation has grown in the last ten
years from 1877 OF all sorts Of banks,
with a capital Of $1,15O. 100000 and in
dividual deposits OF $7,688.OO0,O 900, to
more than $1,000 banks with combined
capital close to $4,000. 100000 and in
dividual deposits of nearly 5000. .010,-
900. The deposits have more than dou-
bled in little more than n decade, and
In the same time the combined loans
and discounts have grown to more than
$4,000, 900. 900.
Only Four Features.
-Four actual national bank failures
marked the year. Final settlement Of
the affairs Of eighteen insolvent banks
was made In which depositors received
nearly So per cent. These adminis-
tratfons were made at an average
cost of about 5 per cent on the collec-
tions. From the date of tho first fall
ure in 1865. 514 national banks have
been placed In the hands of receivers
and twenty-five Of them been restored
to solvency. More than s3.3O0.Ooo in
dividends was paid to depositors OF
insolvent banks during the year.
Business 10 Profitable.
On the whole. 1t appears from the
report that national banking conserva-
lively conducted is profitable enter
pr Sc. The net earnings OF the 1000
national banks during the year were
more than $154,00O.000. from which
dividends Of $105,00O,00O were paid at
the rate Of moro than 10 per cent on
their capital. The government, too,
has profited from the existence of the
national associations for since their
beginning 1t has received more than
100000 Of which more than %
per cent has been for circulation tax
on the bank notes they issue:
With the exception Of banks which
have become insolvent as a result OF
defalcations or other dishonesty. fall
ures have been Almost wholly due to
incompetent or reckless management,
the report says. and persistent VIOLA
tions of the national banking laws and
the practices governing conservative
banking.
To Get Rid Of Weak Banks.
"A large per centatge of the banks
that have failed should have gone into
voluntary liquidation before they
reached the conditions which precipi-
tated the failure" says COMPTROLLER
Murray.
The reoort leaves no room to doubt
that It Is the intention of the present
administration to rid the national
banking system OF weak banks by
guiding them into voluntary liquida.
tion, combination with stronger insti.
tutions wherever possible, or to dis.
continue business as last resort where
there is no probability other than fail.
ure. In this way the comptroller be-
lieves depositors can be paid in full
and shareholders can save some OF
their Investments and escape the double
liability.
During the year. lis national banks
went into voluntary liquidation, many
OF them yielding to that policy. some
were absorbed, others consolidated;
many left the national banking field
ana continued as state organizations
and some discontinued business alto.
gethef.
1T is the purpose" the report says,
"to set out Of the national banking sys-
tenn every bank which is managed In
such a careless. reckless and specula-
tive or Incompetent manner as to en-.
danger the safety Of its depositors."
National banks, of course, provide
the principal market for United States
bonds. Their Investments in those Sc
curities have increased $4,000, 600 in
the last year and they now hold $780,
100000 in those bonds OF which approx
imately 370o.o0o.oo0 are 2 per cents.
Great Growth 70 Recent.
Clearly. il IS evident taa. the ma.
tional banking system has experienced
its greatest growth in the last ten
pears. More than half the national
banks now in existence have begun
business within that time ana have q !
combined capital Of $3.50. 900 900 Dur
lng the last ten years the number OF |
1a1ks u opsration has incrsased BY ;