The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1914-04-08
START new SYSTEM
new BANKING Law BEGINS WITH.
HUNDRED MILLION
final STATEMENT MADE
National Banks of County Are in Fine
Condition to Meet Demands Of New
Law-Actual Working Capital Of
Federal Reserve System May be
Only Half of Authorized Total.

The new federal reserve banking
system will start business with a
total authorized capital of about
500, 100000 for all reserve banks,
no matter how many institutions the
organization committee decides to set
up. This became apparent Wednes-
day night when figures were made
public from all national banks re-
spending to the last call of the comp
troller Of 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 its present purpose
and delays announcement of reserve
districts and citiss for the location
Of regional banks. The total capital
and surplus of the 7,494 national
banks reporting was given at about
S1,7S0,000,0C0. Under the reserve
act each national bank must sub
scribe per cent. Of its cap:lel and
surplus to the capital of the reserve
bank in its district, and 6 per cent. Of
this total would be about s107,000,-
900.
There were only 7,455 national
banks who signifed 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 s110,000,000.
The actual working capital OF the
reserve banks may reach only half
this amount, for. the act provides
mandatory subscriptions Of only
three-sixths of the total per cent.
The reserve board the machine which
will direct the system, IS authorized,
however, to demand payment Of the
other three-siXths.
The statement shows national
banks in excellent condition to meet
the demands of the new law. Some
observers were surprised by the fact
that loans and discounts have in
creased instead of being curtailed.
Loans and discounts on March 4,
1914, amounted to s6,357,535,s98, a
gain over January 13, 1914, the time
of the last call, of s1s2,13O,930.
Subscribing banks must begin pay
ments for their reserve bank stock
thirty days after announcement OF
the districts and reserve cities, and
it was believed in some quarters that
Wednesdays announcement might
show a decrease in loans and dis
counts because of this impending an
nouncement. The loan and discount
increase, taken together with the
fact that individual deposits increas-
ed in the same period by more than
s3e,000,00O, 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 were s11,564,4s7,26O; their
capital stock s1,O56,4S2,12o and
their individual deposits s6,111,32S,-
457. Their reserves were put at
s1,547,5s2,375, an average Of 2o.62
per cent. and s47,52s,42s above the
amount required by law. The cash
in banks decreased since January,
1914, about s14,OO0,OO0, but increas-
ed over April, 1913, about SS0,O0O,-
900.
During March ten new banks were
authorized to begin business and
since the currency act was signed
there have been 1874 applications for
conservation into national banks or
for entrance into the new system as