Arizona republican., 1916-01-13

is the way John Skelton Williams, Comptroller of the Currency describes in his annual report to congress, the operation of the national banks under his charge, during the period from October 1914. to November 1915, the first year under the Federal Reserve system.
 Mr Williams gives a comparative 1 statement of the condition of the na tional banks to back up his statement. l He shows that net resources of the i banks increased in the year $1, ,743, ,S78,- | GAS, that deposits increased S2,0S1, 5S0,l64 and that loans and discounts increased $917 ,450, ,502. Available cash increased in the same period $S62,- | 900, 900 and on November 10, 1915, the reporting national banks has excess reserves of $S9l 900, 900. Tables show the comparative condition of banks in l 1895 and 1915. In September 1895 there were 3.712 reporting banks with net deposits of sl,989, 300, ,000 and loans and discounts of $2,059, 40S, ,402 while l in November 1915 there were 7,6l7, re- | porting banks with net deposits of | $9,079, All ,447, loans and discounts of $7 233,92S, S,973.
 1 The reserves held by the national banks November 10, 19l5,' says the re- port, exceeded by S5S7 100000 the 1 greatest reserves ever held at any time l prior to the passage of the Federal Re serve act. Loans and discounts lamounted to more than the total loans and discounts of all banks, including national, state, savings and private banks and loan and trust companies as late as the year 1902
 MT Williams says that the bank ing power of the United States-the capital surplus, circulation deposits, etc.-of all reporting banks, national and otherwise, with an estimate of the figures for non reporting banks, amounted in June, 1915, to s25,379,-
 100000. an increase in a year of about $1,057, 100000. Savings bank depos-
 tors increased by 176,256 during the
 year ending last June with total de- posits of $4,997, ,706,O13 an increase of
 $6l, ,114,163. The average deposit how
 ever decreased from s444.36 to S442 S3
 while the number of banks increased
 from 2,1OO to 2,159
 ! The comptroller's principal recom- mendation for legislation is for an
 amendment to the bank law authoriz-
 ing and directing the department of
 justice to bring suits against usurers upon information furnished either by
 the comptroller or through other
 sources.
 l Other recommendations given under
 a heading ITO Prevent Bank Failures
 propose: To prohibit officers from
 borrowing from their own banks; to
 prevent loans to directors except with
 the approval of the board; to require officers and employees to give surety bonds: to limit direct and indirect loans to one individual, firm or cor pOration; to prevent or limit over drafts; to require certificates of de-
 posit to be signed by two directors; to
 prevent ensures on the books of a
 bank; to limit interest paid on depos-
 it's to authorize the establishment of branches in the United States; to per
 nit branches in Alaska and insulai
 possessions small loans and to au-
 thorize the comptroller to bring pro- : ceedings against directors for losses sustained by bank through violation of the bank act.
 The report renews the comptroller's
 recommendations of last year for soth- CT legislation, including the giving oi
 authority to the comptroller to remove ! directors guilty of persistent violations of the bank act.
 Banks" says MT. Williams, near | lN- al h,- hn, robbers, who have come from the
 outside, not by failure of customer. | to whom they have lent money, bu by the tying up or dissipation O. . the banks funds through loans tt e their own officers and directors, ol
 else by direct defalcations and em
 bezzlements by trusted officers. 1
 these evils are remedied-and the.
 can be remedied if certain simpl, I and much needed amendments can b,
 secured to the national bank act
 failures among national banks cal Q be reduced to a negligible number t or be absolutely eliminated" d Mir Williams shows there were | failures during the F months ended e october 31 In the last 50 years h.
 |
 utable to criminal acts while injudi e cious or careless banking was respon d sible for 136 others.
 T The Comptroller devotes mucl space to presenting his side of hi
 fight with national banks to preven U the charging of usuriOus interes d rates. He gives tables of loans b.
 banks in different sections to bacl
 up his charge and says that com
 plaints have come of this practic
 particularly directed against smal - banks in the South and Southwest n west and northwest
 Tt is time" says the report. "fo
 all banks of this country to realiz
 that the Federal Reserve act wa o framed to benefit not only the banks Y, but also the customers of the banks a that one of the great objects of tn :. law was to decentralize the none
 of the country to effect a nor
 equitable distribution of capital an '' do away with the old system b which the / resources of our bank s have been so greatly concentrated i
 a few cities or sections, there to b " loaned out largely on speculativ e ventures. while in other regions mon 1T ey needed so urgently for the legit Il innate purposes of industry and u development has been scarce an B oftentimes obtainable only if at al - at rates injurious if not prohib
 tory
 g MT. Williams says that usury un