The Washington herald., 1920-11-01
NATI0NALBANK
RECORD MARKS
PASSED YEAR
| Earnings Average 24%,
Treasury Comptroller
Says in Report
ONLY FIVE FAILURES
Prosperity Achieved Despite
Business Hardships,
Williams Declares.

The earnings of all national banks
in the country averaged "a per cent
on their capital, an Unprecedented
figure, during the past year, accord
ing to John Skelton Williams, Comp
Itroller of the Treasury, in his annual
report yesterday.
In spite of unusual hardships, 3sl
new national banks with s31,O77,5 500
capital were chartered, while COS
other national banks increased their
capital $1O4.61S.1OO.
Only five small banks with a total
capitl of s2O5,OOO went into the
one eighth of the yearly average of
the banks that have failed in the
past fifty-siX years.
Praises Reserve Act.
Williams attributed the stability
of the national banks to the effect
of the Federal Reserve act. coupled
with more efficient regulation and
administration of banks.
In his statement Williams says:
Rapid and violent alterna-
tions of expansion and contrac-
tion have subjected our business
fabric, our financial system, and
especially the banks of the United
States to the most severe test of
efficiency and stability that can be
imagined.
Records Broken.
The shrinkage in the value of
our principal commodities and ar
tiCles of production during the fis-
cal year ended October 81, 1920. is
the greatest in commercial history,
not only in amount but in the pro-
portion of the decline in former
values. 1t amounts to billions of
dollars.
NO six years in the history of
the world have brought commissions
and changes so tremendous and in
tense. The manner in which our
banks have endured these ordeals is
an impressive indication that they
were not tempted from the ways OF
safety and honesty by the excite
ment of imitation.
Best Record in 10 Yenrs.
The total capacity of the ffve na-
tiona1 banks placed with receivers
in the fiscal year ending October 81.
is only $2O5,OOO.
The net increase of authorized
national banking capital for the
year, after subtracting all reduc-
tions. is S11S.S1O,O0O. This is so
per cent more than the greatest in
crease for any preceding year since
1885.
There are now S.157 active ma
tional banks in operation. There
are pending or awaiting action by
the Comptroller's office 259 applica-
tions for new national banks and
277 applications for increase in cap
ital. Twenty-seven applications for
charters for new national banks
were refused during the year. COM
pared with fifteen refusals the
year before.
Earnings Told.
The gross earnings for these
twelve months are reported at ST.
109, 900. as compared with s515,-
$4,000 in 1914, an increase in seven
years of s593,492,OOO. or lis pei
cent.
For the twelve months ended
June 80, 1920. the net earnings
amounted to $2S2,OS3,OOO as com
pared with s149.27O.OOO in 1914, an
increase of s132S13,00O. or nearly
80 per cent.
"Of the sl,1O9.O 100000 gross earn
ings reported by the national banks
$l.011,00O,OOO were derived from in
terest and discount, s275, 900. 900
from exchange and collection
charges, and $7O,00O,OOO from mis-
cellaneous sources.
1T is noticeable that of the total
losses charged off by all national
banks. which amounted $l14,OOO, 900,
only S31,2S4,OOO arose from losses
on loans and discounts, while the
losses on bonds, securities, etc,
amounted to sGl.79O. 900. Other
losses amounted to s21 900 200. Tax
es paid by the national banks
amounted to s79,4S4,OOO Interest
paid on deposits tOtaIed S2S7,637, 900,
and the interest paid on borrowed
money SS2,72O,0O0 Salaries and
wages paid by national banks to-
tailed s175,452,0OO.