El Paso herald. (El Paso, Tex.) 1901-1931, 1917-07-28

EPOSITS IN the 855 state banks Of Texas have IN
creased IS per cent over deposits year ago and "a
- percent two years ago.
Several hundred Of the state banks located In the
smaller agricultural communities and increase or falling
off their deposits represents in large degree the acv-
ties OF the farmers and small business Banks IN the
larger towns and the cities represent the activities Of
farmers merchants the professions, cateen and factory
operators
tabuIation Of the statements Of all these banks by
the state commissioner Of INSURANCE and banking under
date Of June 20 shows far more prosperous condition
business than has before existed in Texas at
similar season Of the year.
The combined capital surplus Of the e55 state banks
at this time is S4065270 The total deposits are slSs
POI $50 as compared with deposits Of S1O27se6 at the
corresponding call Of June 60 1916, showing increase
Of 50 percent in deposits within year The increase IN
Dosffs over those shown at the call Of two years ago is
$780, 1928, OF 70 percent
Total loans Of the banks at this call are s118424514
an increase over last year Of 70 percent Total cash reserve
hand IS $40 7o5s as against reserves Of year ago
OF s325Os77 and Of two years ago Of S26335169 This
shows that the cash has nearly doubled N two
This statement comes at a time Of year when the
volume Of deposits is the minimum Of the entire year
Business slaczens in New deposits are smaller
while the banks subjected TO steady and heavy drains
the making of the crops their purchase and anspora
ton In another month deposits VIII soon begin TO pile
the banks in much larger amounts and bank state
ment two months from now would show much larger 1ures
than An increase Of about IS percent was shown
the statement Of September r. 1916, over that OF june
1916 and the increase shown IN the September call Of this
wear over the June call probably viii be large This
satisfactory but an explanation Of them and expression
Of high hope for the next bank statement
The Tune official statement concerning the condition Of
the state banks Of Texas shows condition which the de-
parmeut declares unprecedented in the history OF the state
banking system and probably the entIs history OF the
commercial and financial development Of Texas.
The great increase in deposits is the most eloquent
refutaitOn Of the pesssts and calamity howlers who
believed that the entrance Of the United States into the
war meant general sagnation There won't be money IN
the banks unless the people have It to put there and to
keep there and the banks make splendid financial
statements unless they have the money with which to back
them.
More money than ever before in the banks Of Texas
means more prosperity than the people Of the state ever
before enjoyed whether in war OF IN peace times
As healthy demand for money Is always taken BY
bankers 10 indicate prosperous condition Of business the
increase Of 1871 percent loans the same item year
ago furnishes proof that business IS not only holding up
but Is spreading out 1t is prosperous solid and growing
The department Is authority for the statement that
the state banks Of Texas today borrowing less money
nroporouatey than before IN their history at cor
responding date which not only indicates that the banks
ae going the crop moving season with large supply
Of ready capital hand but also that the bankers have
become more conservative and discriminating IN eI-
tending credit Another evidence Of this conservatism IS
that the cash reserve hand at this call amounts to II
Drcent OF deposit liabilities against 81 percent last
wear and 81 percent IN 1915 This is remarkable IN view
Of the extraordinary drains neoestaed by payments by
banks fer Liberty loan bonds for contributions to the Red
Cross and for other purposes connected with the war none