The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1916-07-28
BANKS HAVE MORE
! MONEY IN VAULTS
THAN EVER BEFORE
NcAdoo's Figures so Large
as Almost to Stagger the
Imagination
ARE FORTIFIED FOR
ANY EMERGENCY
|oans Are Made More Conservatively
Than Ever Before and There
Is No Undue Influence
Reported Anywhere
by HOLLAND

New York, July 27.-(Special. )-Simulta-
eously with the publication of the state
hent by the Secretary of the Treasury
William G. McAdoo, in which he called
Xttention to our continued prosperity and
anking strength, there appeared list
I 20 of the largest banks in the world,
ach one having deposits in excess of
Doe 900, 0oo
Secretary McAdoo's statement is prob
bly, without parallel. No financial min
Bter of any other nation, so far as BRIEF
esearch reveals, has been able to make
statement that compares with this.
Even in the financial district, it has
hused much comment, probably because
here they are so near the conditions set
prth by Secretary McAdoo that it is i'm
ossible fully to realize them. One of
he leading bankers said this morning
hat he and his associates were in the po-
ition of a man who stands directly in
font of Niagara Falls, and who cannot
reason of that proximity receive the
rue impression which the magnitude of
hat waterfall creates for those standing
: distance.
The figures set forth by Mr.. McAdoo
hn be compared only with those which
ELL the story of the transactions in the
lew York clearing house in single year.
hese transactions sometimes approx
hate 500, 900 100000, but they represent ex-
hanges covering an entire year and rep
esent much of the business, foreign and
omestic, done by the United States. Sec
Etor II or ,ot To-
ut they are billions nevertheless, and
hey justify the statement made 20 years
go by Thomas B. Reed, when he was
oeaker of the House of Representatives
hat this is $1,O00,00O0O0 country.
The mind cannot grasp these figures
nd it is only by some comparisons that
vague understanding of the meaning of
hem is obtained.
For instance, to say that resources of
he national banks of the United States
Ind the resources of state-chartered in
Litutions must be nearly as great were
the early spring of this year nearly
1000, 100000, or $3.50, 900 600 in excess of the
reatest record, does not convey any
God idea unless it is also said that these
esources are $2,271, 100000 greater than
ley were year ago. The increase itself
/ larger than the entire resources of the
eading bank of Germany.
ANOTHER POINT OF VIEW
From another point of view, some idea
hay be obtained of the magnitude of the
esources of the national banks alone.
ecFetary McAdoo says that they exceed
y So 600, COCOON the combined resources of
he Bank of England, Bank of France,
Fank of Russia, Reichsbank of Germany,
eank of the Netherlands, the Swiss Ma
onal bank and the Bank of Japan.
Figures of this kind are spoken of as
demonstrating the fact that in this year
bic the United States is the leading
honey power of the world-that is to say,
eading in the sense of possessing the
biggest available resources. Great Britain
as $12S,000,000 of capital wealth, but much
Il it is in form not liquid or Immediately
valuable
The national banks of the United States
ow possess the right to loan from $1,000
DO 900 to s4,00O,OOO00O in excess of loans
lready made. If the amount be $4,000, 000-
N that figure would be equal to the
ggregate loans made by Great Britain
md Germany to the South American ma
ons. But the loaning capacity of the
ational banks is only part of the lend
hg ability of all the American banks.
ecretary McAdoo estimates that all the
,ust companies and the banks possess
loaning capacity of $4,000, 600, 600.
Notwithstanding this stupendous loan
hg power the American bankers and the
american business world are not infected
nth the speculation virus or that of
ndue expansion. The understanding
Gems to be general that year hence.
then presumably the European war will
e ended, the United States will have
eed of all its banking facilities in order
lot only to aid other nations, but also
b protect our business world from the
dvances that will be made upon it for
narkets. The best authorities agree that
here will be a very great approach to our
harkets made by other nations with in
ent to secure the return of some if not