Arizona republican., 1919-01-22
NATIONAL BANKS IN
 SPITE OF BURDENS
 SHOW B|c INCREASE
Panic Averted By Railroad Control Resources, Sav- ings and Depositors Gain Aggregate Power Is Now Tremendous
Republican A. P. Leased Wire l


 WASHINGTON, Jan. 21-Despite banks grew and prospered last year, their resources, earnings and deposits establishing new high records, accord ing to the annual report of John Skel- ton Williams, comptroller of the cur rency. The report, made public today, said the success of the financial man agement of the war was largely due to the conservative principles main tained by the banks and the federal re- serve system, and the efficient direc- ton of the individual institutions.
 It was the last report of MT. Will Hams in his present term, which eX- pires February ,. It covered the year ending October 31, 1918, and said that half the 17,0O0, 100000 of Liberty bonds marketed up to that date were sold through the national banks, yet the banks deposits increased nearly $2000,0 100000. Interest rates were kept low and stable, in spite of big de mand for credit from many sources, Mir. Williams said, and there were only two failures during the fiscal year. These are outstanding situations which should make the nation proud ot it's national banking system, the comp troller declared.
 Railroad Control Saved Day
 "A financial catastrophe.' which would have seriously affected banks and business in general last year was averted, said MT. Williams, by the gov ernment's taking control of the rail- roads.
 Resources of the 7,705 national banks on November l, 1918, were reported as $19,S2l, ,404 900, as compared with az gregate resources of S22,371 ,000,00 of the 21,1I5 state or private banking in stitutions last June. Cross earnings of the national banks, in the year ending last July l, were sS1S. S.000,000. an in- crease of nearly $300,0O0000 over the earnings for the year just preceding the outbreak of the European war, and net earnings were $212000,000 a new high record.
 The banking power of the United States last June was calculated by the comptroller at $39,0S2, ,00O, 900, an increase in the year of 9,OO0,000. This included national and state insti- tutions' capital, surplus, profits. cir culation and deposits and federal re- serve banks capital and deposits.
 The banking power of the United
  times greater than in 1S90 said the report.
 Savings Deposits Increase
 The comptroller's report shows tha- between June, 1916, and June, 1918, de posits in savings banks increased iron | S5,OSS, 000, 900 to S5,411, 100000, despite the large purchases during the war o | Liberty bonds The number of saving! | depositors also increased from II .14S, 900 to 11,379.00O.
 | The comptroller renewed many 0 his former recommendations for lesis ! lation, including the following: To prevent officers of banks iron l borrowing from their own institutions to limit direct and indirect loans to on ! individual, firm or corporation; t provide for removal of directors guilt, | of persistent violations of the nationa bank act: to authorize national bank to establish branches; and to provid | for rotat tions and vacations for book keepers.
 Discussing failure Of national bank; the comptroller contrast present con ditions with those of the panic of lS9' when 153 national banks. with liabili ties of more than SS0,000,000, suspend ed. In the first year of the war. o the other hand. there were only lou national banks suspensions, represent ing liabilities of about SS00,000.
 An insurance premium of so De million dollars of deposits would D sufficient to guarantee deposits of a national banks against loss. provide the percentage of loss shown in tn last four and a half years is main tained," said the report, commentin on the recommendation for governmer guarantee of deposits of 5000 or les! This legislation it was declared, woul bring many millions of dollars frol their hiding places.