Evening star., 1921-07-16
REPORT EARNINGS
Of RESERVE BANKS
SIS, 1885, 600 or 1903 Per Cent
Per Annum on Capital
Announced.

Preiimlnary nSureS OF tHe reuefdi
Reserve Board indicate that net earn
ings available for dividends Of the
twelve reserve banks for the first
half Of 1891 approximated $55,735.0 600.
which is at the rate of los per cent
per annum upon the capital paid in.
whereas in the calendar year 1920
the net earnings were equivalent to
168 per cent upon capital stock.
At the close of the first six months
of 1921 the federal reserve banks,
combined, paid the regular semi
ing to So. 3.036,0OO: transformed to sur
plus account. $11.7s9.O00, and set up
a reserve for government franchise
tax, $40,910.000, a total of $55.735, 900.
In the calendar year 1920 net earn
in9s available for dividends were
s14s.2sd.ooo. Out Of these earnings
there were paid in dividends to men,
ber banks. S5.654.OOO: transferred to
surplus account. $S2.s16.008. and paid
to government as franchise tax, $780,
725.0O0.
Under the reserve act as amended
the reserve banks are allowed to re-
tain earnings after dividends until they
accumulate surplus equivalent to 100
per cent of their subscribed capital,
after which the banks may retain 10
per cent of earnings after dividends
and 80 per cent goes to the government
as franchise tax.
As paid-in capital is only so per cent
of subscribed capital the reserve banks
may build up a surplus equal to 200
per cent of paid-in capital before the
government participates in earnings.
All the banks except the Dallas Bank.
report surplus accounts in excess of
their subscribed capital. During the
n
banks at Cleveland and st. Louis at
tanned surpluses of 100 per cent of
subscribed capital and started building
up q Super-SurpluS.
on for Minneapolis.
A delegation of eleven members of the
local chapter of the American Institute
of Banking. several of whom were ac-
companied by members of their families.
left this afternoon over the Baltimore
and Ohio Railroad for Minneapolis.
where they will attend the convention
Of the organization. to be held there from
July 10 to %.
The special train which carried the
Washington delegates came from New
York, and carried representatives to the
convention from other eastern cities. A
delegation from Richmond also bearded
tho train here
Those to so from here were Mr. and
Mrs. E. j. McQuade. Mr.. and Mrs.
Francis G. Addison. jr.. Mr.. and Mrs.
w. ]. Waller. Charles D. Boyer A. r.
Narela, w. A. Dexter. ]. c. Dulin, A E.
Fisher, G. A. H. Herman. Ross f. Pollock.
Norman E. Towson, Mrs. r. C. Towson
and Miss Towson. The delegation will
stop over in Milwaukee tomorrow after
noon. where they will be entertained by
tho Milwaukee chapter of the institute.
Treasury Retires Certificates.
The Treasury yesterday retired an is
sue OF $232, ,000, 900 of its certificates of
Indebtedness. which matured July Is.
Release Of this money. coupled with the
fact that there was no new offering Of
fuf to the general investment and credit
situation.
GfaDh0pA0ne Dividend.
lumbia Graphophone Factories Corpora
tton Of Maryland. which is controlled
by the Columbia Graphophone Manufac-
turing Company, held at Baltimore
Thursday, the regular quarterly divi-
dend Of per cent on the company's pre-
ferred stock was declared payable Au-
gust 1. The parent company is not pay
ing any dividends at present on either
Its preferred or common stock.
Calls for Millions.
Secretary Mellon this morning called
on all national banks holding proceeds
OF the June Is note and certificate sale
to pay into tha regional banks of
which they are members 40 per cent
Of the balance of such credits.
This payment must be made on
Tuesday. After this settlement there
per cent of the total proceeds from
tho note and certificate sale or about
$40. 100000. This will probably be
entirely Withdrawn by August /.