Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-05-12
WONDERFUL GROWTH OF
THE BANKING BUSINESS
Comprehensive Review of the Last
Report Of the Comptroller OF
, Currency Recently Issued.
BANKING POWER OF NATION
Earnings of National Banks and
Widespread Service They Render.
Enormous Increase in Number OF
Depositors.

Now that the third Liberty loan has
been oversubscribed some people are
wondering how II was SO easily done
Perhaps review OF the annual report
OF John SHELTON Williams. the Comp
troller OF the Currency, will help to
explain the matter. Anyhow, 1t is an
intensely Interesting document, and the
review OF IL as found in the Bankers
Magazine is we'll worth the study Of
business men generally
Never before since the national
banking system was established. says
the magazine, have the national banks
of the United States shown such large
totals as arc exhibited in the annual
report Mr.. Williams made for tho year
1917. Their resources S.553, $1,000
exceed by S2,o09.69S 900 the greatest
resources ever before reported" Fur
thermorc the banking power OF the
United States. represented by capital.
surplus. profit circulation. and deposits
OF national banks and other reporting
banks and trust companies, including
also the paid-in capital and deposits OF
the twelve Federal reserve banks. is
now estimated 3-.522 million dollars.
The banking power OF the world in 1880
was estimated by MulhaN at 1855
million dollars. The banking power OF
this country is now two and a half
OF the whole world. according 10 Null
hall. as late as 1890 The banking
power OF the United States is now
seven times as great in 1890.
WHY, THE GREAT GROWTH
AND INCREASED EARNINGS
This extraordinary growth Of bank
ing in the United States has been
caused largely by war conditions.
though to a considerable extent II Is
due to the natural increase OF business.
High prices in recent years have tend
cd to swell banking totals. In ten
years the resources OF the national
banks have increased more than Sl0.-
100000 about three fourths OF this in
crease taking place in the last five
years.
Tho earnings OF tho national banks
Of tho country for tho twelve months
ending June so. 1917, both gross and
net, exceeded tho best earnings ever
previously reported Their gross earn
inEs amounted TO s667.4o6.000 an in
crease of s76.764,00o, or 5 per cent.
over the previous year; while ne, earn
ings for the same period aggregated
Sl9l.32l, 900, an increase over the pre-
ceding year of s36,f7S.o00. or % per
cent.
During this past fiscal year the ma
tional hanks earned 1896 per cent on
their capital stock-the highest per-
centaEe ever reported This compares
with l4.76 per cent, the year before.
The amount distributed in dividends TO
stockholders WAS $lc5.53S, 900, an in
crease OF slo,Sl3,0oe. or an average OF
ll.sl per cent capital stock
How widespread is the service now
being rendered by the national banks
is shown by the fact that on March 5
1917. the number OF national bank de
positors was reported at l5.7SS,00O, ar
increase, as compared with May l. 1916
OF l.450.o00. and an increase as com
pared with June so, 1910 OF S,0tS,OO(
deposit accounts.
LOSSES TO DEPOSIToRS
DOWN NEAR no ZERO
The comptroller calls attention tc
STATISTICS showing the losses to dc,
positors in national banks which hav,
failed during the past thirty-SiX years
These statistics show that tho pro
portion OF losses to the deposits o.
failed banks for the past three year.
has averaged about three one-thou.
sandths OF per cent OF total deposits
while similar losses for the thirty-thre.
years prior 10 1914 averaged annual,
twenty-eight one-thousa ndths OF pc.
gent OF the total deposits
This reduction IN the percentage OF
losses Of depositors the comptroller at.
tributes in !arg3 measure 70 the greater
thoroGghnsss !H'..E mutations, The more
rigid en:o-ceineAt 81 the provisions Of
the nat!onz. bank act, intended for IN.
protection alike q the deposltors and
share hclders and o, the public
These figures show That y in The
future hank failures and losses 10 de.
pos!tors can bs kept down u the basis
OF the past three years an assegsrncn,
~ only S35 per n!ilion o, deposits
would be suficien- 10 insure the nav.
rent in full Or ALI deposits Of all ma.
tional banks agairEt losses from harl
failures. The total losses 10 nationa
bank depositors from bank failurc'
during the past rhirty-siv wear.
amount approximately, TO S3G.s0G. 600
an average loss in this hirty-siX yea,
PERIOD OF slightly more than $1,000 o0t
per annun-