Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-01-22
(By Morning journal Special Leased Wire,

Washington, Jan. 21.-Despte tre-
mendous war burdens, national banks
grew and prospered last year. their
resources earnings and deposits es-
tablishing new high records, accord
ing to the annual report of John
Shelton Williams, comptroller of the
currency The report, made public
today, said the success of the finan-
cial management of the war was.
. largely due TO the conservative prin-
eiples maintsined BY the banks, and
the f3,sersll rtsefsse s' ,en asd tbs
etfiefent direction of the mdividnaf
institutions.
1t was the last report of Mr. Will
lams in his present term, which
expires February 2. 1t covered the
year ending october 81. 1918, and
said that half the $4,000, 600 600 of
Liberty bonds marketed Up TO that
date were sold through the national
banks yet the banks deposits in
crease nearly two billion dc liars.
Interest Rates Low.
Interest rates were kept low and
stable in spite of a big demand foN
credit from many sources, Mr.. Will
liams said, and there were only two
failures during the fiscal year. These
are outstanding situations which
should make the nation proud of its
national banking system, the comp
troller declared
"A financial catastrophe, which
would have seriously affected banks
and business in general last year.
was averted, said Mr.. Williams, by
the governments taking control of
the railroads.
Resources of Banks.
Resources of the 1905 national
banks on November I. 1918. were re-
ported as $19,S21. 100000, as COM
pared with aggregate resources of
$22, ,S71 100000 of the 2l,I75 state
or private banking institutions last
June. Gross earnings of the national
banks in the year ending last July !.
were 100000, an increase or
nearly $500 10000 over the earnings
for the year just preceding the out
break of the European war and net
earnings were $212, 100000, a new
high record.
The banking power of the United
States last June was calculated by
the comptroller at $39,OS2,0OO, wv,
an increase in the year of $4,6oS,,
600 600. This included national ana
state lnSlllulloIS tdpi."iS go
profits, circulation and deposits, ana
federal reserve banks capital ana
deposits
Banking Power Great.
The banking power of the United
States today is estimated to be seven
times greater than in 1890, said the
report.
The comptrolers report shows
that between June, 1916, and June,
1918, deposits in savings banks IN
creased from $5,0SS, 100000 to So
47f,O0O, 900, despite the large pur-
chases during the war of Liberty
honds. The number of savings de-
positors also increased from l,l4s,-
600 to 1879, 900.
The comptroller renewed many or
his former Recommendations for leg
islation. including the following.
To ,revent officers of banks from
borrowing from their own insutu-
tions: to limit direct and indirect
loans to one individual, firm or cor
noration; to provide for removal OF
directors guilty of persistent viola
tions of the national bank act; 10
authorize national banks to estab-
hsh branches; and to provide Tor
rotations and vacations for book
keepers.
Conditions of 1899.
Discussing failure OF national banks,
the comptroller contrasted present
conditions with those of the panic OF
1893, when 1853 national banks, with
liabilities Of more than $SO,o0o, ,ooo'
suspended. In the first year of the