New-York tribune., 1922-10-03

of additional collateral Immediately demanded Of the
borrower in order TO keep the secure The Corn Ex
change Bank has loaned Sl6,l45ol2e5 in this wav 1f
these loans should be Immediately repaid demand or
redeemed through sale of the collateral cash reserve
including items already described would amount TO
$l32s42 $500, which 67.75 per cent Of the amount We
owe to our depositors.
Isl BONDS
These hghgrade securities railroads and other cor
porations, which tan quickly be into cash By
SALE The cash realized from the sale of the $24
OF these bonds hand would bring cah.up
to Sl56oeS,so9.93 or eo.21 per of our deposits
[6] LOANS +
The loans have made to customers lareelvsecurd bv
collateral and payable the average less than three
months represent part of the service render to the
business community The accompanying statement shows
$4924o,24o4O OF such loans outstanding customers
the money have advanced them to carry on their
business These loans constitute additional safeguard to
deposors for the large proportion of this
commercial be Immediately disposed of for cash
at the Federal Reserve Bank. That Bank, of which The
Corn Exchange Bank member will lend money against
the notes which customers have given U.s. or will
purchase certain classes of their Obligations outright from
us for cash.
We have already shown how Der cent of
the required to pay depoors could be realized
In order to secure the remaining 1879 per cent thereby
covering deposits dollar for dollar it would only be
necessary rediscount sell the Federal Reserve Bank
$685. 48 of the $40 40 commercial loans
which we hold In other words the funds would be provided
by disposng of 784o per of customers commercial
the Federal Reserve Bank This would leave a
balance Of $1060551292 of commercial paper still un-
touched after providing for the payment 100 per of
obligations to depositors.
ri BONDS AND MORTGAGES AND
REAL ESTATE
This item represents miscellaneous assets of The Corn Ex.
change Bank acquired the its business dealings
These sound and while as easily marketable
the items listed above constitute additional guarantee
of the banks ability demands upon it. The total on
hand, shown in the annexed statement 346 O23 90
which is less than 225 per cent of our ce7os'
T81 THIRTY BANKING HOUs1
The item of ol775 represents Te Germ Exchange
Banks main building and twenty nine Of tn. fftvtwo
premises occupied by branches 1t will be noted that this
investment plant is extremely small compared with
the owed decositora. III other words very small
part of the banks funds has been used these permanent
in real estate We have preferred keep the
greater portion of assets IL form Immediately avail
able to every possible de,ya1a upon
T97 THIS LEAVES A SURPLUS Of
BY carefully conserving its and increasing its sur
plus out OF its earnings yer y year The Corn Exchange
Bank has accumulated capital and surplus of SIG o52 l53-
ST. In other words the Bark has of assets de-
scribed above totang sg 652 1887 what to
depostors The foregoing paragraphs have shown that
with the exception Of S. 025 90 invested in bonds and
mortgages and miscellaneous real estate, and $4 7oool77s
representing thirty banking houses owned the vast
bulk of our assets the surplus assets over de-
poss is in liquid form, quickly available pay what
ever demands made upon The Corn Exchange Bank.