The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-04-17
BANKS OF THE NATION
READY FOR BIG LOAN
Actual Increase In, Deposits Is shown
After Billions Arc Paid Out for
Liberty Bonds.
SYSTEM SOUND AND SOLID
Vast Sum Passed Over to Govern
nent Remains In Form Of Pcrnla-
ncn Investment, While Financial
Strength Keeps Growing.

AAN~ R'
Washington, D. c., April l6.-The
comptroller of the currency said to-
! day:
The opening of the third liberty
loan finds the national banks OF the
country splendidly prepared to play a
I big part in making this loan Il sue
cess.
The subscriptions which were sent
in by the national banks of the coun-
try to the first and second liberty loans
for themselves and for their custo-
mers aggregated the vast sum of $4,-
ITS, 100000, and there were allotted to
the national banks on the subscript-
ions thus sent in by them a total of
s3,o90, 900 OF bonds OF the FIRST
and second liberty issues These huge
subscriptions were practically paid In
full many weeks ago
On March s. 1917, the total de-
poeits Of the national banks OF the
country amounted to S12.s57,ooo, 900.
Since that date the secretary OF the
treasury has sold and collected for
35.sos, 0oo. 900 of liberty bonds Of
which sum nearly three-nfths were
taken by the national banks of the
country and their customers
ana Yet after hl8kAln& OcttASltlChIo
for these huge investments the re-
ports Of the national banks for March
4, 1918, show that their deposits were
not only not diminished on account OF
Withdrawals to pay for liberty bonds.
but the national banks show In the
period from March S. 1877. TO March
4, 1913, an actual increase in deposits
OF s1,4so. 5ss eco.
Tho total resources OF the national
banks between March 5. 1917. and
March 4. 1918, increased st,o35,7Ss,-
600, and amounted ON the latter date
to 900.
The deposits of the national banks
on March 4, 1918, show very little
change as compared with December
81. 1917. there being a total reduction
and discounts in the same period show
reduction of s251. st1, 900.
The national banks were never In
a better position to assist In the plac-
ing OF q great government loan than
they are at this time Their total 70
sources are now about $4,000. cot. geo
in excess of what they were when
the first liberty loan was offered In the
summer of 1917; and the records show
that the great bulk of liberty bonds
which these banks placed have pass
ed on to permanent In veetors and to
customers who have been able to pay
for their bonds and carry them with
out nding il necessary to borrow
money upon them.
The national banks report that on
March 4, 1918. the total amount Of
three and one-half per cent liberty
bonds held by them amounting TO only
s3s.sTT.oo The total amount of four
per cent liberty bonds owned by them
on the same date was $s4T,ls1, oeo,
making the total amount OF liberty
three and one half percent and four
per cent bonds owned by national
banks s43s,7ss.oe1. which is onfy
about seven per cent of the total of
liberty bonds issued TO date.
The amount of money loaned by
national banks on the three and one
half per cent and four per cent lib-
erty bonds was reported on March 4,
1918, at s2ss, ss4,o 600. The amount
of liberty bonds owned by the nat
ional banks OF the country plus the
money which they are lending on lib
erty bonds is. therefore. only s7ss,-
422, 900.
The government has in the past
twelve months sold and collected for
SIS. 100000 of liberty bonds We,
therefore. find that the people of the
country have bought and paid for over
$4,000, 100000 OF liberty bonds. ex-
elusive OF all bonds owned by nat
ionai banks or bonds upon which nat
iond banks are lending money. Elk
oept in so far as the holders of some
OF these bonds may be borrowing on
them from state banks or trust COM
panies or elsewhere, this great sum
may now be regarded as held for IN
vestment.
1t is tribute to the soifdisy and
a powerful evidence of the success of
our banking system that these gigan-
tic transactions have been carried
through without creating the slightest
hurry or arrangement in the money
market. Despite the large withdraw
ais which were necessary in order to
pay for the new liberty bond ISSUES.
the deposits OF the national banks
actually increased as compared with
their deposits made prior to the offer
lng OF the first liberty loan, about a
billion and a half dollars, as SHOWN
by their sworn reports OF March 4,
1918. while total resources as SHOWN
above are nearly two billion dollars
greater.
In addition to the investments by
national banks in the three ana one
half per cent and four per cent lib
erty bonds these banks also held on
March 4. 1918. United States cerrm-
Gates of Indebtedness agEreratinx
ssT6.ai7. 900. which the banks can
largely utilize, il they should care to
DO so. In making subscriptions for
themselves and their customers to the
third liberty loan.
Gvus 3sS Pounds OF MfYk.
Columbia Mo-. April 1s.-Campux
Lady Hengerveid Alpha, OF the rIni-