The New York herald., 1922-01-23

Of additional collateral is Immediately demanded Of the
borrower in order to keep the loan The Corn Ex
change Bank has loaned $34,346 s13lo in this way.
these loans should be immediately repaid demand or
redeemed through sale Of the collateral cash
including items already described. would amount to
49, which is 7525 per cent Of the
owe to our depostors.
Isl BONDS
These securities Of railroads and other cor
poratons which quickly be converted into cash by
sale The cash realized from the sale Of the
of these bonds hand would bring up
to $l7e6 s7l.29 s5s6 per cent Of deposits.
[6] LOANS ~F&s'.
The loans have made to customers largely secured By
collateral and payable the average in less than three
months represent part Of the service render the
business community The accompanying shows
$42531 02640 Of such loans outstanding Our
the money have advanced them carry their
business These loans constitute additional safeguard to
depostos for the that large proportion Of this
commercial paper be Immediately disposed Of for cash
at the Federal Reserve Bank. That Bank, Of which The
Com Exchange Bankis member. wlend money against
the notes which our customers have given U.s. viii
purchase certain classes Of their obligations outright from
us for cash
Wehave alreadyshown how, Unnecessary, 5s6 per eentof
the money required pay depostos could be realized
In order the remaining l44 per thereby
covering
necessary rescont se TO the Federal Reserve Bank
$29566 go out Of the $42 62640 commercial loans
which hold In other words the funds would be provided
by dsposngof 6os1 per cent Of customer commercial
notes at the Federal Reserve Bank Thu would leave
balance Of $12.e64,743so Of commercial paper st
touched after providing for the payment Of 100 per cent Of
obligations to depositors.
III BONDS AND MORTGAGES AND
RFAI. ESTATE
This item represents miscellaneous Of The Corn Ex
change acquired the Of its business dealings
These assets sound and while not easily marketable
the items listed above constitute additional guarantee
Of the banks ability demands upon It. The total
hand shown in the annexed statement Is 81
which is less than 32of1 per cent of deposits.
Isl TWENTY-SX BANKING HOUSES
The item Of $ol2 6ss66 represents the Corn exchange
Banks main building and twenty-five of the forty-ni
premises occupied by branches It will be noted that this
investment in 'plant is extremely small, compared with
the owed depositors In other words very small
part Of the banks funds has been used for these
investments real We have preferred keep the
greater portion of in form Immediately avail
able to meet every possible demand upon
[o1 THIS LEAVES A SURPLUS OF,
BY carefully conserving its and increasing
plus of its earnings by year. The Corn Exchange
Bank accumulated capital and surplus
2s other words the Bank has of assets de-
scribed above totang what it
its depostos The foregoing paragraphs have shown that
with the exception Of 1852 invested in bonds and
mortgages and miscellaneous real estate and 68566
representing twentysx banking houses owned the
bulk of assets and hence the surplus Of de-
poss is in liquid" form, quickly available pay what
ever demands made upon The Corn Exchange Bank.