The Washington herald., 1920-02-13
BANK ASSETS
NEARLY DOUBLE
Annual Report Of Comp
! troller Of Currency
Surprising.
SHOULD AID EUROPE
Points Out Fallacy Of Shut
ting Off Credit at
This Time.
SHOULD AID EUROPE

Banking resources of the United
States now total more than $4,000. 900. :
600, Comptroller of the Treasury John
Skelton Williams stated in his annual
report to Congress yesterday. OF this
national banks on November II, 1918.
hold 81, ~. .O0O, 900, an increase of ST.
5S5.ooo.0oe since August, 1914, and State
banks on June 30. 1913. held $26, $50. 600, =
eco. an increase of s11. .7O5. .OO0, 600 since
June 1913. 1t represents a banking
power nine times more than 1t was
thirty years ago. Williams said.
One person out of six has a bank
account, according to Williams re-
port. There were 1919 S42 deposit ac-
counts on November II. as compared
with 1850, ,46S in 1910. Bank savings
accounts numbered S,94S, sos, represent
ing a total OF A.751, ,113.O0O an increase
of more than half a billion dollars, as
compared with 1918.
That the present prosperity of the
United States may become largely ar
ttficial and end in disaster. unles I'VE,
as a people. use the sagacity and fore
sight of the business man who pro-
tects and helps an embarrassed cred
LEWIS bOOu pNOSptIlS
toration and future Success" Williams
predicted. He suggested that the Unit
I'd States might solve the question Of
collecting its foreign balances by fur
nishing European countries the crude
materials and machinery which their
people need. so that they may convert
the raw products into articles and
merchandise, worth from ten to a
thousand times the value of the raw
materials"
When Europe really gets back to
work they may make good the colos-
sal waste of the four years of war
with a rapidity which may happily
astonish the most optimistic of u.s." he
said.
To bring foreign exchange back
to the old parity. Williams said.
there must be more production and
thrift.
Foreign nations must avoid pur-
chase and importation OF luxuries
and refuse to import even essen
tials when these can be produced
at home" he advised. Williams
also declared every possible effort
should be made to increase the pro-
duction abroad OF those things for
which a market can be found in
this country.
And at the prisent prices pre-
vailing here the list of such ar
ticIes is long and extensive" he
said.
williams also urged that Ger
many's vast internal debt should be
sub0rdinated to making of payments
TO allied nations.
The internal German debt is
largely owed by the government to
the junker or former governing and
capitalistic classes, and the sub
ordinating of her internal debt to
her external obligations would re-
quire the junkers and other capi-
talists of Germany. while waiting
until their country can pay interest
on their holdings. to go to work,
ard in so doing aid in increasing
the productive capacity OF the ma
ton" he said.
Williams. touching on the high
cost of living. said bankers could
he of tremendous help in restrain
ing speculation in commodities as
we'll as securities IL they would i'm
press on business men that "for the
long run an assurance Of future
permanent and substantial profit
ent profits to the thinnest reason
able margin and limiting earnings,
dividends and additions to surplus,
to the most modest figures consist
ent with safety"
He pointed out that while vol
ume of transactions as expressed in
dollars have exceeded all records.
there have been actual reductions
in output of mines and factories.
According to the report. only one
small national bank failed with
loss to it's depositors between jan
uary 1, 1918, and November l, 1919.
During the fiscal year ended Octo-
her 81. 1919. forty-five State banks
failed
The average dividends paid by
national banks for the year ended
June 80. 1919. on capital stock was
1915 per cent.
Cash in vaults of the country's
T.7S5 national banks to June so,
1919. totalled S424.455, 900. State
banks and trust companies report
ed on hand S572.9S9, 900, and the
Federal reserve banks reported s2,-
216256,o0O.
Criminal prosecution of bank Off
cials for the fiscal year resulted in
the conviction of three bank presi-
dents, one vice president, eleven
cashiers and ten others, who re-
ceived sentences of imprisonment
from six months to ten years.