The New York herald., 1922-10-04

of additional collateral Immediately demanded of the
borrower in order keep the secure The Corn Ex
change Bank has loaned $l6l45012o5 in this way If
these loans should be Immediately repaid demand or
redeemed through sale of the collateral reserve
including items already described, would amount to
32342 20 which 6775 per the amount we
our depositors.
Isl BONDS
These high grade securities of railroads and othe
porations which quickly be converted cash by
sale The realized the sale of the $24
of these bonds hand would bring total up
to $156,oo8, 90 or So 21 per cent of deposits
[6] LOANS
The loans have made customers largely secured by
collateral and payable the average less than
months, represent of the service render the
business community The accompanying statement shows
of such loans outstanding Our
use the money have advanced them carry their
business These loans constitute additional safeguard
depostors for the that large proportion this
commercial be Immediately disposed of for cash
at the Federal Reserve Bank That Bank of which The
Corn Exchange Bank is 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 necessary cent
the money required to deposors could be realized
In order the remaining 1879 per cent thereby
covering deposits dollar for dollar would only be
necessary redscount the Federal Reserve Bank
$38640 73348 of the $40 24640 commercial loans
which hold In other words the would be provided
by dsposing Of 7846 per customers commercial
notes at the Federal Reserve Bank. This would leave
balance of $l06 ,512o2 of paper still un-
touched after providing for the payment of 100 per
obligations to depositors
ri BONDS AND MORTGAGES AND
REAL ESTATE
This item represents miscellaneous The Corn Ex
change Bank acquired in the business dealings
These sound and, while easily marketable
the items listed above constitute additional guarantee
of the banks ability demands upon The
hand shown in the annexed statement 346 O23 90
which is less than 2.25 per cent of our deposits.
Isl THIRTY BANKING HOUSES
The item of $7oo61775 represents The Corn Exchange
Banks main building and twenty nine of the ffty-two
premises occupied by branches be noted that this
investment in plant" is extremely small compared with
the amount owed to depostors In other words very
part of the banks funds has been used for these
investments in real estate We have preferred keep
greater portion of in form Immediately avail
able to meet every possible demand upon u.s.
[o1 THIS LEAVES A SURPLUS Of
BY carefully conserving and increasing it's sur
plus out of its earnings year by year. The Corn Exchange
Bank has accumulated capital and surplus of $1o652 53
67 In other words the Bank has of assets de-
scrbed above totang SIG 81 what owes to
its depostos The foregoing paragraphs have shown that
with the exception of $4 800 invested in bonds and
mortgages and miscellaneous estate and ST.
representing thirty banking houses owned, the vast
bulk of assets and hence the surplus Of
posits, is in liquid FORM quickly available pay what
demands made upon The Corn Exchange Bank