Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-01-10
Comptroller's Report Shows
Unprecedented Financial
Power.
RESERVE OF BANKS
REACHES NEW RECORD
Legislation Asked to Authorize Depart
ment Of Justice to Institute Suits
Against Usurers-Borrowins Of or
ficers From Own Banks Is Reeom-
nended - Comptroller Again Seeks
Authority to Remove Directors.

'@oAAAhS 5 IoIl, jail. " lJeVelOpIT1eHC
and growth never paralleled in the
financial history of any country" is
the way John Shelton Williams, comp
troller Of the currency, describes in his
annual report to congress, the opera
tion Of the national banks under his
charge. during the period from Octo-
Der, 1914. to November, 1915. the first
year under the federal reserve sys-
tenn. The report was today presented
to congress.
Mr.. Williams gives a comparative
statement of the condition of the ma
tional banks to back up his statement.
He shows that net resources of the
banks increased In the year s1,743,-
SIS,64S, that deposits increased $2,0S1,-
530.164 and that loans and discounts
increased 1911, 7,450.5O2. Available cash
increased In the same period $S62, ,000,-
600 and on Nov. 10, 1915, the report
ing national banks had excess reserves
OF 1891, 100000. Tables show the COM
parative condition of banks in 1895 and
1915. In September, 1895, there were
3,I12 reporting banks with net deposits
of $1,9S9, 100000, and loans and dis
counts of $2.059,40s,402 while in No
vember, 1915, there were 1917 report7
ing banks with net deposits of s9,079,-
.471.447. and loans and discounts of
$7.233.s2s,s73.
Greatest Reserve Ever Hold.
The reserves held by the national
banks, Nov. 10. 1915" says the report
exceeded 5S7.0o0,0o0. the greatest re-
serves ever held at any time prior to
the paSsage OF the federal reserve act
Loans ana discounts amounted t.
smore$ Than the total stsoans and dis
counts OF all banks. including national
state, savings and private banks and
loan and trust scompanies-as late as
the year 1902
Mr.. Williams says that the "banking
power" OF the United States-the capital
surplus. circulation deposits. etc-of
all reporting banks national and 9TH
erwise with an estimate Of the figures
for non-reporting banks. amounted in
June, 1915, to $25,397,1 100, 900, an in
crease in a year of about s, LOST, 100, 900
Savings bank depositors Increased by
176.256 during the year ending last
June, with total deposits of $4,997706,-
013, an Increase of $e1.114163. The
average deposit. however decreased
from s444.36 to $442.S3, while the num-
ber Of banks increased from 2,100 to
2.159.
To Stamp Out Usury.
The comptroller's principal recon-
mendation for legislation is for an
amendment against usurers upon in
Pe,, kt@, 3-I -,
comptroller or thru other sources.
Other recommendations given under
a heading. ITO Prevent Bank Fail
ures," propose: To prohibit officers
from borrowing from their own banks:
to prevent loans to directors except
with the approval of the board; to re-
quire officers and employees to give
surety bonds; to limit direct and in
direct loans to one Individual, firm or
corporation; to prevent or limit over
drafts; to require certificates Of de-
posit to be signed by two directors: to
prevent erasures on the books of a
bank; to-. limit interest paid on de-
posits: to authorize the establishment
Of branches in the United States; to
permit branches In Alaska and insular
possessions; to authorize minimum in
terest charges--which ordinarily might
be usurious-on small loans and to
authorize the comptroller to bring pro-
ceedings against directors for losses
sustained by q bank thru violation of
the hank act.
Removal Power 10 Sought.
The report renews the comptroller's
recommendations OF last year for other
legislation, including the giving Of au-
thority to the comptroller to remove
directors guilty Of persistent violations
of the bank act.
Banks" says Mr.. Williams, nearly
always are broken, not by bank rob-
bers, who have come from the outside,
not by failure Of customers to whom
they have lent money, but by the tying
up or dissipation Of the banks funds
thru loans to their own officers and
directors, or else by direct defalcations
and embezzlements by trusted officers.
II these evils are remedied-and they
can be remedied IL certain simple and
much needed amendments can be Sc
cured 10 the national bank aott--ffss;.:!!-
ures among national banks can be re-
duced to a negligible number, or be abb
solutely eliminated"
Mr.. Williams shows there were four
teen failures during the twelve months
ended Oct. 81. IN the last fifty years
he says, there were 20S failures attrib-
utable' to criminal acts. while injudi-
cious or careless banking were respon-
sible for 136 others.
\. The comptroller devotes much space
30 presenting his side Of his fight with
national. banks to prevent the charging
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