The Birmingham age-herald., 1914-04-02
BANKING SYSTEM ID HAVE CAPITAL OF O,OOO,OOO Figures Made Public From all National Banks Re-
 spond to Call-7465
 Participate

Washington, April 1.--The new fed
 eral reserve banking system will start
 business with a total authorized cap
 ital of about, $100,0O0 ,OOO for all .re-
 serve banks. no matter how many in-
 stitutions the organization committee
 decides to set up. This fact became apparent tonight when figures were
 made public from all national banks
 responding to the last call of the
 comptroller of the currency, made
 March I.
 The statement issued giving these
 figures will be the last of the kind
 before the formal launching of the
 system, unless the organization changes
 its present purpose and delays the an
 nouncement of the reserve districts and
 cities. The total capital, and surplus
 of the 7isi national banks reporting
 was given at about $l,7SS,000, 900. un-
 der the reserve act each national bank
 must subscribe s per cent. of its cap
 ital and surplus to the capital of the
 reserve bank in it's district. and 6 per cent of this stotal would be about S1o7,- 000o 600. There were only national
 banks who signifled in the legal time
 their intention to enter the system, so
 that the total would be reduced, but
 the entrance into the system of state
 banks and trust tcompanes will tend to
 offset this, and 1t Is possible that, with
 these institutions figured in the cap ital of all reserve banks will be near
 $110,000. 900 The actual working cap- ital of the reserve banks may reach
 only half this amount, for the law pro
 vfdes mandatory subscriptions of only three -sixths of the total 6 per cent The reserve board the machine which will direct the system, however. is an- lthorized to demand the payment of the other three- -sixths.
 The statement today shows national banks in excellent condition to meet the demands of. the new law. Some | observers were, surprised by the fact loans and discounts have Increased in
 stead of being curtailed. Loans and discounts on March 4 1914. amounted to $65357a33,S9S, a gain over January 13 191a,s the time of the last call of $1s2130,936. 8t A9 Subscribing banks must, begin pay ments for their reserve bank stock 30 days after the announcement of the districts and the reserve cities and 1t was said in some quarters that today s statement might show a. decrease in loans and discounts because of this inn pending announcement The loan and discount increase taken together with the fact that individual deposits in- creased fin the same period by more than a39 9.000,QO0, was said to be the best indication that the national banks are in shape to meet-the demands Of the new system
 According to the statement the re- sources and liabilities of the national banks Is, s11,564497.26o; their capital stocks. s4.056. 4s2, 12o. and their individ- ual deposits $6,il1,32S,457. Their re- serves were. put at $l,547,592.375 an average of $s0.62s per. cent, and $47- b29.429 above the amount required by law. The cash in banks decreased since January, 1914 about. $14,000,000 but increased over April,t1s13, about ssO. 100000.
 During March 10 new banks were authorized to begin business. and since 1 the currency act was signed there have been 1s4 applications for conversion
 unconditional banks or for entrance into
 the new system as state institutions.