New-York tribune., 1922-01-20

VI doolllOnal collateral immediately demanded
borrower IN order keep the The Corn E
change Bank has loaned 1884, 346 8131o in this wav If
these loans should be Immediately repaid on demand or
redeemed through sale Of the collateral reserve
including items already described would amount TO
49, which is IS per cent of the amount we
owe to our depostors.
Isl BONDS
These grade of railroads and other cor
poratons which quickly be converted into cash BY
sale The cash realized from the the $22
OF these bonds hand would bring our total cash up
to $17o6o3 87 29 1886 per cent of our deposits
[6] LOANS
The loans have made to customers largely secured by
collateral and payable the average less than three
months, represent part of the service render the
business community The accompanying statement shows
~ OF such loans outstanding. Our
use the money we have advanced them carry their
business These loans constitute additional safeguard to
our deposito for the that large proportion this
commercial paper be Immediately disposed of for cash
at the Federal Reserve Bank That Bank of which The
Corn Exchange Bank member money against
the notes which our customers have given will
purchase certain classes of their obligations outright from
for cash.
We ehave already shown how necessary Of
the required pay depositos realized
In order to the remaining 14l4 per cent thereby
covering deposits dollar for dollar, would only be
necessary redscount sell Reserve Bank
$29566 2826o of the o264o commercial loans
which hold In other Words the funds would be provided
by dsposngof 6o51 of commercial
notes at the Federal Reserve Bank This would leave
balance of $12 of commercial paper still un-
touched after providing for the of 100 per
obligations to depoSitors
III BONDS AND MORTGAGES AND
REAL ESTATE
This item represents miscellaneous assets of The Corn Ex-
change Bank acquired in the of business dealings
These assets sound and while easily marketable
the items listed above constitute additional guarantee
OF the banks ability to demands upon it. The
hand shown in the annexed statement is ST 0OO 1885,
which is less than u of per our deposits.
[81 TWENTY.SIX BANKING HOUSES
The item of represents the Com Exchange
Banks main building and twenty-five of the forty mine
premises occupied by branches It will be noted that this
investment in 'pant is extremely SMALL compared with
the amount owed to depostors In other words very small
part of the banks funds has been used for these
investments real We have preferred to keep the
greater portion of in form Immediately avail
able to meet every possible demand upon us.
[91 THIS LEAVES A SURPLUS Of
BY carefully conserving its and increasing its sur
plus out of its earnings by year, The Corn Exchange
Bank has accumulated capital and surplus
28 In other words the Bank has assets de-
scrbed above toalng % what owes
its depostos The foregoing paragraphs have shown that
with the exception Of 81 000 1882 invested bonds and
mortgages and miscellaneous real and
representing twetysix banking houses Owned the vast
bulk assets and hence the surplus de-
posits, is liquid FORM quickly available pay what
demands made upon The Corn Exchange Bank