The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-04-02
Total Capital and Sur
plus Given at About
$1,788,O0O,
READY TO MEET
NEW CONDITIONS
Will Start Business With Total
Authorized Capital of About
$l0o,o00,O0o = Increase in
Loans and Discounts
Instead of Decrease
Causes Surprise.

Washington, April 1.-The new Fed
cral reserve banking system Will start
business with total authorized cap
ital OF about 100000 900 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
Comptroller of the Currency. made
March {.
responding to the last call OF the
The statement issued giving these
figures will be the last of the kind
before the formal launching Of the
system. unless the Organization, com
nittec changes its present purpose and
delays the announcement Of the re-
serve districts and cities. The total
capital and surplus of the 1,4?i ma
tional banks reporting was given at
about sl,7SS.ooo.oo0
Under the reserve act. each national
bank must subscribe per cent OF its
capital and surplus to the capital Of
the reserve bank in it's district and
& per cent of this total would be about
slo1.0Go. coo. There were only 1866
national banks who signltied in the
legal time their Intention TO enter the
system so that the total would be
somewhat reduced; but the entrance
into the system of banks and trust
Compan MICS will tend IL offset this. and
il is possible that with these insti
tutions figured in. the capital of all
reserve banks Will be near til0,-
100000.
Payment OF Capital.
The actual working capital OF the
reserve banks may reach only half this
amount. for the act provides that man
datory subscriptions OF only three
sixth's of the total & per cent The
reserve board. the machine which will
direct the system, however. is author
lied To demand the payment OF the
other three -siXths.
The statement to- day shows national
banks In excellent condition TO meet
the demands of the new law. Some OBJ
servers were surprised by the fac; that
loans and discounts have increased in
stead Of being curtailed. Loans and
discounts on March 1, 1914, amounted
to s6.%57.535,Sas. q gain over January
Il. 1914, the time OF the previous call,
OF Sls2.iS0.?36.
subscribing banks must begin pay
;ncmts for their reserve bank stock
thirty days after the announcement OF
the districts and the reserve cities.
and it was thought in some quarters
that to-day's statement might SHOW 1t
decrease in loans and discounts. be-
cause of this impending announce
mcnt. The loan and discount increase.
taken together with the fact that in
dividual dcpositi increased in the
same period by more than s3o.ooe, 600,
was said to be the best Indication that
The nationa! banks arc in shape 10 meet
the demands OF the new system.
Resources md Liabilities.
According TO the statement, the re-
sources and liabilities of the national
banks were 1864. 1920; their CAPT
tai stock 81 Loss, S,4S2,120, and their in
dividual deposits ,3eS,ii
Their reserves VIE put at S1,5i7,-
592,315, An average of 20G2 per cent
and si1o29,429 above the amount re
quired by law. The cash in banks de-
creased since January. 1911. about sll.-
100000, but increased over April, 1919,
about SS0,000.000
During March ten new banks were
authorized to begin business, and since
the currency act was signed there have
been Isl applications for conversion
into national banks, or for entrance in
10 the new system as State institutions