New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-06
U. S. FINANCIALLY.
IS PREPARED FOR
ANY EMERGENCY
Over $3.50, 100000 Invested
in Foreign Securities
and Loans by Ma
tional Banks
ITnshinatoR, FebrmrN ).

Washington, February ).
The United States at the present
time seems to be intrenched fnan-
cially almost as firmly as it is possible
for any human government to be- so
the Controller Of the Currency to-day
advised Congress in submitting his an
nusl report.
1--WE are we'll prepared for prepared
ness the report said, land ready ana
able TO provide for whatever increases
Of army and navy Congress may think
to be necessary.
practically the whole world is IN
debt TO US and is steadily increasing It's
obligations. Our financial condition in
relation to other peoples and the World
at large becomes stronger from week
TO week and from month TO month AS
the figures show so conclusively, our
wealth is piling up with wonderful "a
pidity; but to do our proper work IN
the world and to protect our own IN
terests we may before long need every
dollar OF these resources, gigantic ana
inexhaustiblo as they now seem to De-
Holding of Foreign Securities
The report shows that the amount OF
foreign government and other foreign
securities owned by national banks on
December 81, 1915, was 1921 $4,000.
The reports received from national
banks in 100 cities, including all Re-
serve cities and all cities with a popu-
lation of 5000 or more, show that the
national banks in these cities (exclu-
sive Of about 10 per cent OF them stiii
10 be heard from we're lending on De-
cembcr 81, 1916, TO merchants and
other borrowers in forcgn countries on
direct loans the sum of sl36,669,ooo.
This makes the total investments OF
the national banks on the date men
toned (as far as reported) in foreign
government and other foreign securl-
ties and loans placed in foreign coun-
tries by national banks in the cities
indicated s45s,662 900, and is equal TO
1882 per cent of the capital of the ma
tional banks, 2l.22 per cent of their
capital, surplus and undivided profits,
or 2.96 per cent of their total resources,
as reported November Il, 1916.
Of the money loaned by national
banks in foreign countries, 100000
600 was loaned by the national banks
of New York City and about $2S,00O,-
900 BY the national banks in Chicago,
81. Louis, San Francisco, Philadelphia
and Boston.
The report also shows that the ma
tional banks held on November II, 1916.
1927 ,236,00O of foreign securities, rep
resenting 1898 per cent of the sl,709,-
$4,000 total securities held by them at
that time other than United States
government bonds.
Growth of National Banks
Since the inauguration Of the Fed
eral Reserve system, the report states,
charters have been issued TO 264 new
national banks, with aggregate capital
OF sI6,IO9, 900, and ls9 national banks
increased their capital s27,l17,700. Dur
ing the same period, TO November 10
last, l43 banks went into liquidation
and "a banks reduced their capital. In
addition, q national banks were placed
in receiverships.
Gross earnings of national banks for
the past fiscal year were $500, $40, 05l
and net earnings sl57,54S,547, an in
during the year. Dividends paid were
&l4,724,594, an increase of approx
mstely sl,O0O,0O0.
Practice Of Usury Abating
The practice Of charging exorbitant
interest rates has decreased to a
marked extent the number Of banks
charging more than 10 per cent on the
average being reduced in Georgia from
% to Z, in Alabama from 81 to 6, in
Texas from 3l7 to l22. in North Dakota
from 30 TO 81, in South Dakota from
20 to 10, in Nebraska from Is to and
in Oklahoma from 300 to 1873. Figures
for other states are not given, but the
total reduction throughout the country
during the year is placed at nearly 80
per cent, or from .022 to $50.
The policy of enforcing the law with
respect to charging usurious rates re-
suited, the report adds, in ten banks,
with a capital of s765,OOO, deciding that
the business did not offer sufficient
inducement for them TO remain in it