The New York herald., 1921-04-20
BANK RESOURCES
OFF $1,554,SS9,OOO
National Institutions Report
Drop in Year-Heaviest
in New York.

WAsHrNGroN April 19.-Resources of
the national banks showed reduction
of s1.o60. .14s,ooo in February, compared
with those Of December, and reduction
Of s1,554, $685. 900. compared with those
OF February, 1920, according to state
ment issued tonight BY Comptroller OF
the Currency Cressinger, and summarize
ing the reports of the banks to the last
call for their conditions on February 2l.
New York national banks reported the
greatest reduction in resources In Febru-
ary, amounting to $455,679,0 while the
reduction in Cleveland was S153, 3,296. 900.
The reduction In Philadelphia was s42.-
$4,000: St Louis. s35.411 900; in Bos-
ton. s35. .3o6, 900, and in San Francisco,
S31. .765.00
Reduction in the resources of the ma
tional banks in the other sixty-one re-
serve cities ranged from S17,000.000 TO
S12000,000, while the country national
banks in only twelve States reported
small increases in resources, the greatest
amount, s4,572.O00. being reported In
Michigan and the smallest. s1S3.000. in
Mississippi.
Loans and discounts were reported as
s11,6S0. 900, a reduction Of S414.45s.-
900 since December. and one Of s313.-
$4,000 reduction since February. 1920.
Holdings OF national banks in Govern
ment securities amounted to s2.047,234.-
900, a decline OF SS4.339.0 900 since the
December call, and a reduction of $412,-
10000 since the February, 1920 call.
The cash in vaults was reduced $685.
$4,000 between the last two calls, but
the amount held on February FL was
S21022,000 in excess of the amount re-
ported a. year previously.
Capital stocks Of banks reporting last
February amounted to s1.273. 205. 900, an
increase Of s914 1000 compared with those
OF December and an increase of s91.-
1923, 900 during year. surplus and un-
divided profits were reduced $55. 100000
between the last two calls. but $780,
10000 reported in February. was an
increase of Si12.041. 900 compared with
the amount reported in February, 1920.
The total deposits OF the banks were
SIS, ATS, ,354 900, s799. 9.403,000 less than
the amount reported in December and
reduction OF $1,4s6. .76s,000 In year.
The liability of national banks on ac-
count of bills payable and rediscounts
was S1,925, ,529, 900, a reduction S417134.-
600 since December. and reduction Of
s13s. .061 900 in year
The number OF reporting banks In
creased 210 during the year. The percent
age of loans to deposits on February II
was T5.46, against 74.3i on December 20
and 70.70 on February 2s. 1920.
A most important factor in surveying
the banking position, according to a
statement by the National Bank OF
Commerce, Is the steady and substantial
reduction Of bank deposits during the
last year without corresponding reduc-
tions In loans. The bank anticipates
that as liquidation proceeds with low
cred values, deposits and loans VIII de-
cline further. IL describes that situation
as follows:
Deposits of member banks in New
York city reached maximum In the
latter part OF May, 1920, between which
date and the end OF March, 1921. they
declined s776, 100000. Loans and dis
counts did not reach maximum until
october and have declined steadily since.
These opposite movements reflected
closer use OF balances and In part tight
ening OF credit. which naturally con-
tracted deposits as borrowing facilities
were curtailed.
There has consequently been sub-
stantial reduction In the margin by
which deposits have exceeded loans In
May, 1920, deposits, then at maximum,
exceeded loans by $3.50. 1000. AT the
beginning of February the margin had
been reduced to less than one-sisth Of
the dfferential In May Recently de-
posits have recovered somewhat. while
loans have continued TO decline. on
April 3 (the latest date available) de-
posits exceeded loans by s27o,ooo, 900"