The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-08-21
'REASSURIhG STATEMENT
IS MADE BY n'AD00
National Banks OF Country Prepared
To Meet All Legitimate Crop
Demands.
SURPLUS RESERVE LARGE
Comptroller Declares Ii Far Better to
Employ Surplus Funds In Making
Loans On staple Commodities Than
Aiding Speculation.

Washington, d. c., Aug. 2o,-The
Comptroller of the Currency, review
ing the business situation generally.
says:
I'm view of the large demands
which the national hanks of this coun-
try may, i'll the not distant future,
be required to meet in supplying the
seasonal and ordinary as well as the
extraordinary calls ahead of us, a brief
statement concerning the present con-
ldition and resources of our national
banks and of the Federal reserve
banks will be instructive and will
prove distinctly reassuring.
The special requirements referred
to are:
"First-The yearly recurring de-
mand for funds with which to move
the crops, which this year, except as
to cotton, are unusually large and
commanding full prices.
''Second--The unusual demand for
funds which may arise to enable cot
ton growers to meet any congestion In
the movement or marketing of the
crop, in the event that cotton should
be declared contraband
'Third--The demands which are
likely to be made upon the national
banks. both directly and indirectly. in
connection with the extension OF credit
to foreign purchasers of supplies of
all kinds. and to pay for the American
securities which may be returned to
us by foreign creditors.
Able to Meet All Demands.
The actual figures show that the
present condition of the national banks
of this country and their ability to
m ant nDff 49, - ~ ~
may be made upon them is unsurpass-
ed. They have never before been so
strong and so thoroughly prepared to
grapple with and handle successfully
any problem, however large, which
may be presented to them. as they are
today. These figures show that tho
national banks of this country and
the twelve Federal reserve banks. ex-
elusive of the State banks and trust
companies. have at this time an UNI
employed loaning capacity sufficient
to enable them, If need be. to carry
for our own people at market value
the entire cotton crop, and half, If not
the whole OF the wheat crop and to-
bacco crop, which it is not. of course,
conceivable that they will be asked to
DO and also finance, until the pur-
chasers can pay us in gold or its
equivalent. products to be shipped TO
the rest of the world
1T is far better for the banks to
employ their surplus funds In maxi
ing loans on staple commodities
where they can relieve congestion or
promote legitimate commercial trans
actions. rather than permit these
funds to be used for the imitation of
the stock markets where speculation
in securities has already reached a
point which invites caution.
The Abstract of Condition of Ma
tional Banks AS of June %. 1915, Just
completed. shows that notwithstand-
ing the great reduction in-reserve re-
quirements which went into effect with
the inauguration of the Federal Re-
serve System in November last, the
actual reserves of the national banks
on June %. 1915. are far in excess
of the largest reserves ever held at any
one time in the past history of the
country, and amounted to 1,S40 mill
lion dollars. or IT'S million dollars
more than the amount which the ma
tional banks are required to hold.
Surplus Reserve Greater
This surplus reservs. 1t Is estimated,
Is sufficient to justify, on conserva-
tive basis. an expansion of credit or a
further loaning power of say two or
three billion dollars. The present
total loans of all the national hanks