Evening capital news. (Boise, Idaho) 1901-1927, 1916-11-02
BIG INCREASE IN
BANK DEPOSITS
IDAHO IS shown
Report of Federal Reserve
Bank Shows That but One
State in District Had
Larger Gain.

There has not been a failure of a
national bank in the Twelfth federal
reserve system, which includes Idaho.
since the establishment of the federal
reserve system in November, 1914. ac-
cording to a statement issued by the
Federal Reserve bank of San Fra ncisco.
This statement shows that with one ex
ception Idaho shows the greatest in
crease in bank deposits from Sept. ?,
1916, to Sept. IL, 1916, the increase be-
ing SO per cent. Arizona had the great
est increase in deposits, with AZ per
cent. Deposits in national banks IN
every one of the seven states in the
district show an increase during this
period, the percentage of increase being
as follows: Arizona, AZ; California
rs: Idaho, SO; Nevada, 81; Oregon, Is;
Utah. 90; Washington, 90.
The deposits in national banks on
Sept 2, 1915, amounted to $23395, 900
and on Sept IL, 1916, $32,S54 900. Loans
and investments of national banks in
Idaho on Sept. 2, 1915, amounted TO
$24, 399, 900 and on Sept. IL, 1915, $685.
44S, 600, showing an increase of per
cent.
After giving figures on deposits,
loans and investments of national
banks in the district the report says
state banks show similar gains AL
though easy credit conditions have rem
dered unnecessary any extensive re-
discounting, the Federal Reserve bank
has nevertheless rendered important
aid during the harvest season in GER
tain sections having inadequate bank
| ing facilities. Many banks manifest
appreciation of the potential resource,
and the resulting additional stability,
/ but 1t is natural that there should be
a certain percentage of malcontents.
| The par collection of checks. entered
upon in July, by federal reserve banks
under the requirements of the federal
reserve act, disturbed previously exist
| ing methods. This would naturally
arouse objection on the part of some
whether it made for better or worse
condition Many member banks have
cordially CO. operated however. belleV-
ing that this plan makes for efficient
service to commerce upon which the
prosperity of banks should propeli De
founded. A gratifying spirit of CO.
operation has also been shown by non
member banks, 1860 of which out of a
total of 1878 in this district are now
renting without deduction for ex-
i.change for checks drawn on them
selves.
The investments of this bank have
been largely in bankers acceptances, al
rates approximating 21s per cent Be-
fore the federal reserve act, this class
of business was monopoliZed by Eu
ropean banks, but eastern banks arS
now accepting extensively and fe"
enterprising banks on the Pacific coas'
are entering upon this business. whicr
naturally is engaged in only by strone
banks in financial centers Consider
able investments have also been IN mu
nicipal warrants at rates approximat'
ing "a per cent. The laws of eastern
states authorize the issuance OF sucf
warrants in anticipation of tax pay
ments. Presumably the states of thu
district will in time amend their laws
so that the municipalities may avail O
such low rates for their temporary Dor
rowings.
THE earnings from investments
chiefly other than rediscounts, nav
been such that this bank, on october l
paid a dividend at the rate of 6 per cen
per annum from the date of organiza
ton, Nov. IS, 1914. to Jan. l, 1915, ate
charging out all organization expenses
and the cost of all furniture an'