The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-04-04
RESERVE BANK GAP|TAL.
WILD HAVE AT LEAST ONE HUN.
DRIED MILLION DOLLARS AT
OUTSET.
COmptrOller's Figures for March 4
Put Total OF Institutions Entering
at Over $1,78O,OOO,O 900.

washington, April 1.-The new
federal reserve banking system will
start business with total authorized
capital of about 500, 900, 900 for all
reserve banks, no matter how many
institutions the organization decides
TO set up. This became apparent
tonight when figures were made pub
lie from all national banks respond
ing to the last call Of the comptroller
or the currency, made March 4.
The statement issued, giving these
figures, will be the last of the kind
before formal launching of the new
system, unless the organization COM
mittee changes it's present purpose
and delays announcement of reserve
districts and cities for the location of
regional bank. The total capital and
surplus Of the 7,494 national banks
reporting was given at about s1,7SS,-
100000. Under the reserve act each
national bank must subscribe per
cent OF it's capital and surplus to the
capital OF the reserve bank in it's dis
trict and per cent Of this total
would be about $107,OOO,OOO.
There were only 7,465 national
banks who signifled their intention to
enter the system, so that the total
would be somewhat reduced, but the
entrance into the system of State
banks and trust companies will tend
to offset this and it is possible that,
with these institutions included, the
capital of all reserve banks will be
near $11O,0OO,O 600.
The actual working capital Of the
reserve banks may reach only half
this amount, for the act provides for
mandatory subscriptions Of only three
sixths Of the total 6 per cent. The
reserve board, the machine which will
direct the system, is authorized, how
ever, to demand payment of the other
three-sixths.
The statement today sho-~ national
banks in excellent condition ot
the demands Of the new law. Some
observers were surprised by the fact
thot loans and discounts have in
creased instead Of being curtailed.
Loans and discounts on March
1914, amounted to $6,357,535,S9S, a
gain over January 13, 1914, the time
of the last call, Of 1S2,13O,936.
Subscribing banks must begin pay
ments for their reserve bank stock
80 days after announcement of the
districts and reserve cities, and it was
believed in some quarters that to-
days statement might show a decrease
in loans and discounts because of this
impending announcement. The loan
and discount increase taken together
with the fact that individual deposits
increased In the same period by more
than $39,000.0OO, was said to be the
best indication that the national banks
oi " Aii SHdPC " Hltct the QeTnunQS Oh
the new system.
According to the statement the re-
sources and liabilities Of the national
banks were $11,564.497,26O; their
individual deposits $6,111,32S.457.
Their reserves were put at $1,547,-
592,375. an average Of 20.62 per cent.
and $47,529,429 above the amount re-
quired by law. The cash in banks de-
creased since January. 1914. about
$14.OOO,000 but increased over April,
1913, about sSO.OOO.OO0.
During March ten new banks
were authorized to begin business and
since the currency act was signed
there have been 1874 applications for
conversion into national banks or for
entrance into the new system as State