New-York tribune., 1916-01-11
Controller Williams Re
ports Federal Reserve
Growth Unparalleled.
DEPOSITS SHOW a
TWO BILLION GAIN
National Banking Power Put at
$4,000, O.000-Asks In
creased Control.

Washington. Jan. 10.-<DcveloTmcnt
and growth never rarallcled IN the
financial history OF any country" IS
the way John Skclton Williams, Con
troller OF the Currency. describes IN
his annual report 70 Congress the
operation Of the national banks under
his charge during the period from Oc-
tober. 1914. 20 November. 1918. the
rrst vear under the Federal Reserve
system. The report was presented TO
Congress to-day.
Mr. Williams gives q comparative
statement Of the condition of the ma
tional banks 20 back up his statement
He shows that net resources Of the
banks increased in the year sl''+8'-
s7S.64s. that deposits increased 81
oS1 5so.164 and that loans and dis
counts increased S9l7.450.5o2 Availa-
bic cash increased IN the same period
sS62. .OOO. 900 and on November 10, 1913.
the reporting national banks had eN-
cess reserves Of SS9l.0oO.oOO Tables
show The comparative condition OF
banks in 1895 and 1915. In September
1895. there were SIP reporting banks
with net deposits Of S1.9S9 100000 and
loans and discounts Of S2O59'4OS'+oZ.
while IN November. 1915. there were
-.sl7 reporting banks with net deposits
Of SaO79A71.447. loans and discounts
Of 81, 3.92S,sI3. 49,,
terts NoveNber 10. 1915" says the re
mort. exceeded by S5S7, 100000 the
Greatest reserves ever held 81 any time
prior 10 the passage OF the Federal Re-
serve act. Loans and discounts
amounted 20 more than the total loans
and discounts Of al banks. including
national. state. savings and private
banks and loan end trust companies
IS late as the year 1902
Banking Power S25,OOo,O0O.OOo.
Mr. Williams says that the banking
mower" OF the United States the capl-
tai. surplus. circulation. 0eposltS, etc
Of all reporting banks. national ana
otherwise. with an estimate OF the ng-
ures for non-reporting banks, amounted
in June. 1915. 10 S25,397 100000, an IN
crease in e. year Of about Sl,O5llOO,-
coo. Savings bank depositors increased
bv 1926 during the year ended last
June. with total deposits of S4,gS .tO6,-
Ol3. an increase Of Sol, l,ll4lb". Inc
average deposit. however, decreased
from S44436 10 S442.S3. while the num-
Der of banks Increased from -,lVo 70
2,159.
nendation for legislation Is for al
amendment 10 the bank law euthoriz-
inc and directing the Department OF
Justice 70 bring suits against usurers
on information furnished either by the
Controller or through other sources.
The Controller devotes much space
10 presenting the side Of his fight with
national banks 70 prevent the charging
Of usurious interest rates. He gives
tables Of loans by banks IN different
sections % back up his charge, and
saws that complaints have come OF this
practice. particularly directed against
email banks in the South and south
west. West and Northwest.
1T is time" says the report, "for all
banks Of this country to realize that
the Federal Reserve act was framed TO
heneft not only the banks but also the
customers Of the banks; that ore OF
the great objects Of the law was 10 de
centralize the money Of the country,
TO effect a more equitable distribution
of capital and 20 90 away with the old
system by which the resources Of our
banks have been so greatly concen-
trated in q few cities or sections, there
10 be loaned out largely on speculative
ventures. while IA other regions money
needed so urgently for the Legitimate
purposes Of industry and Of develop
ment has been scarce and OftenImes
obtainable only. il at all. at rates in
furious il not proh.bitory.'