Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-08-20
BANKS READY TO MEET
LEGITIMATE DEMANDS
and Export Shipments Up to
$1,OOO,OOO,OOO.
UNPRECEDENTED PROSPERITY
Money Enough to Carry at Market
Value Entire Cotton, Wheat and
Tobacco Crops and Care for En-
ports Up to Thousand Millions.
Especial to The Times Dispatch.

Especial to The Times DlspatchI
WASHINGTON. August lo.-The un-
prccedented prosperity of the countrv.s
national banks. which ar. declared
. ready to meet all Legitimate demands.
including the financing of crops and OF
export shipments up to sl,1oo, 600. 900.
Is described in statement issued To-
nay Dy John shelton Williams. Comp
trollcr Of the Currency.
Comptroller Williams. who is also n
member OF the Federal Reserve Board.
says the national banks and the twelve
reserve banks, exclusive of State trust
institutions. now have an unemployed
loahing capacity ito carry for our own
people At market value the entire cot
ton crop and half. If not all. Of the
wheat and tobacco crops. and also
hhance. until the purchasers can pay
us in gold or its equivalent. 81 OOO, 900.
600 or so OF exports OF foodstuffs or
manufactured products TO be shipped 10
tho rest of the world"
The manufactured products" re-
ferred TO would include war supplies
for the warning European nations, al
though 'they are not mentioned spe-
cifcally.
1T Is better for banks TO employ
their surplus funds In making loans on
staple commodities where thev can re-.
Heve congestion or promote legitimate
commercial transactions rather than
permit these funds 10 bc used for tho
'nnation OF the stock markets, where
speculation In securities has already
ion." is an admonitton given b. the
comptroller
MI Williams warns against .'over-
confidence and unwtse expansion or
speculation which may check the pros
perity which now seems SO likely 10
increase and endure"
VAST AMOUNT MORE
THAN REQUIRED RESERVE
The comptroller says the reserve OF
inc national banks Of June 90
amounted 20 H.sio,ooo, 600, or ss,77s.-
100000 more than the required reserve
The total reserve OF the national banks
he adds. exceeds by more than $500. 1000
900 tho greatest reserve ever held bv
tho banks prior 10 the inauguration OF
the new currency system Present
loans OF all banks are given AS six
and two-thirds billions
The statement OF tho cou,ptrollcr
continues. in part.
The surplus, or excess reserve now
held BY tho national banks over and
above tho amount they are required TO
hold amounts TO nearly as much as tho
toia! reserve OF all national banks as
late as 1908
The reports OF the Federal reserve
banks at this time show that The total
amount OF bills discounted and accent
anccs held by the banks amounts 10
approximately $4,000. 900. while tn.
supply OF gold which the Federal re-
serve banks have now on hand is SUI
hcicnt to give these banks a further
!oaninG capacity, If the occasion called
for it, OF more than S6aO, OO0. 900 addi
t!onal. provided they should utilize
their notc-issuins powers 10 the maxi
Mum.
Against their maximum direct bor-
rowings in the past Of sl62,Gl7 900 the
reports Of the national banks as of June
%, 1913, show that they had on hand
on that date paper eligible for rcdis-
count with the Federal reserve banks
amounting TO Sl,sla,oOO, 900. which is
more than ten times the maximum,
amount which the national banks OF
the country, according to their sworn
statements TO the Comptroller OF the
Currency. have ever hcretofor. had oc-
casion 10 borrow on their bills payable
or by rediscounts"