Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-02-21
LAST STATEMENTS INDICATE IN.
cREAsiNc POPULARITY FOR
FINANCIAL INSTITUTIONS.
FEDERAL RESERVE SYSTEM
MAY BOOST BUSINESS
National Banks Of Iowa Said to be
Joining Reserve Banks With Smiling
Faces and Heavy Hoarts-state
Banks Increasing in Number and
Deposits Increasing Enormously.

Des Molnes. Feb. 21.-The popularity
Of the state banks is evidenced every
time u statement is called for by the
state authorities and "a compilation of
their business is made. 1t is the opin-
ion. as has been expressed, by some Of
the leading bankers of Des Moines con-
nected with both state and federal
banks. that the new federal reserve
.aw is not really popular with the
national bankers and that they are
Joining the reserve banks with smiling
races and heavy hearts. and the net
result VIII be to increase the pre-
ponderance of business in Iowa in STATE
banks at the expense of the federal
organized banks.
The latest report of the Iowa banks
gives some color TO this theory. The
state banks are making wonderful
strides. In fact they are going so fast
that 1t is matter of Amusement as to
where all the money. or credit. comes
from which is represented in deposits OF
s3l6.S62.OOO. which is an average of
more than 100000 to a bank, large and
small, When it is recalled that a great
majority of the banks are Of compare
lively small capital the figures seem al
most unbelievable.
Great Gain Made.
There was a slump in deposits shown
at the previous call. owing to the time
Of the year, hence the increase of near
iy nine and a half millions in eleven
weeks time is more than the average
rate Of increase. But that Is making
sains at the rate of over $125.000 a day
in Iowa.
One Of the interesting phases Of the
asst report is the fact that with an In
.rease in the year Of over $4,000. 900
in deposits in these 1859 banks organ
ized under state laws there was an in
crease Of nearly 100000 in "bills
receivable" which represents the
time loans. AT the same time there
vas an increase Of over a half million
dollars in the actual amount Of cash
on hand. But there was decrease of
two and quarter million dollars In
the Sight draft credits. This would in
shifting from short time paper to time
loans on a more substantial basis. bet
ter for the banks and for business. A
made possible by the fact OF an in
crease in the year OF $1,725,000 in the
capitol stock and $1,195.3 in the sur
plus funds and also about a half mil
lion in the item of undivided profits.
Safe Business.
Taken as a whole the latest bank
statement shows that banking bust
ness in Iowa is on safe and sensible
basis and there has been very little
hindrance the past year to the free
movement Of commerce through the
ordinary channels.
There was an increase in the average
reserve over last call but it Is not yet
up to what 1T has been at other times
though still far beyond the required
reserve. A reserve fund Of 10 per cent
of the deposits is quite satisfactory to
the banking department
The increase of A in the num-
Der of banks in Iowa in year also
gives strength to the theory which
prevails here that as compared with
the federal banks the state and saw
ings banks are becoming more and
more popular.