The New York herald., 1921-01-18
NATIONAL BANKS IN
STRONG POSITION
COMPTROLLER Williams's Fig
ures Show Institutions to
Be Well Fortified.
INCREASED RESOURCES
Loans and Discounts Since
March 4, 1919, Have Gained
Less Than 8 Per Cent.

WASHINGTON, Jan. 17-John Shelton
Williams, Comptroller OF the Currency,
made public to-day a compilation of the
reports OF all national banks in the
United States as of November Is, 1920.
In commenting on the figures the Comp
troller said that they showed the banks
to be strong and we'll fortified. They
reveal also that all loans and discounts
carried by them with United States
obligations. exclusive of bonds held to
secure circulation, have increased since
March 4, 1919, less than per cent. The
compilation discloses further that Fed
eral Government securities owned or
held as collateral largely exceed the
total borrowings Of all national banks
from reserve banks. The Comptrollers
statement issued with the compilation.
says in part:
Their present strong and well forti-
fed condition. and the fact that their
borrowings on rediscounts and bills pay
able amount to only about 10 per cent.
OF their resources Is particularly graft
fying when we consider that our peo-
pie In the last three and half years
have t<en up, paid for and have pretty
well digested about S24, 200 100000 of
Government obligations.
"All resources of national banks on
November Is amounted to $22 ,0S1N13,-
900. an actual increase since September
8. 1920, OF $196,433, 900, but a reduction.
compared with the corresponding call
year ago, of 1853. 3.079, 900. Deposits
amounted to SIG, ,961. .702 900. an increase
since September Of 209,746.000, but
reduction since November IT, 1913. of
| $500, 151.0 900. Loans and discounts, ex-
elusive of rediscounts, aggregated $12,-
| 311,514,0 900. an actual shrinkage since
September of $104. .248,000. but an in
crease over the corresponding period of
| the previous year Of 1851, ,272 900. Law
| full reserve plus items in process OF col
| lection with reserve banks on Novem-
| ber Is amounted to $1,74S.497 900. being
practically stationary. compared with
September s, the increase being only
| S25, 900, 900. and the increase over the
previous year only $9,7S3,000. United
States securities held amounted to ST.
152 2,465, 900 (of which about S700.000.0 900
were to secure circulation). a reduction
since September OF $22 2,554O00, and a
decline compared with Novembe r II,
1919, of 29.416. 900. The proportion of
loans and discounts to deposits on No
vember Is, 1920 was 72.58 per cent.
compared with 74.11 per cent on Sep
tember and 66.1S per cent on Novem-
Der IT, 1919
can analysis of the figures of Novem-
ber Is compared with statements of all
national banks on March 4, 1919, sug-
gests that there has been far less infla-
tion Of credit and loans, at least as far
as the national banks are concerned.
than is popularity supposed, and some
criticisms made as to alleged financial
initiation as far as they are concerned Is
hardly justified.
Loans ard discounts OF all national
banks on March 4. 1919, plus the Gov
eminent securities owned which may be
regarded in the light OF loans to the
Government. but exclusive of United
States bonds TO secure circulation.
amounted to s12 .694. .050.000, compared
with S13,749. .926, 900 on November IS,
an increase during the last twenty
months OF $685. 900. or less than
9 per cent
"The figures below give loans and dis
counts plus United States securities held
by all national banks November Is,
1920, in each reserve district and the
increase compared with March 4. 1919