Evening star., 1923-02-19
NATIONAL BANKS
O. IN fine POSITION
6flssinger Reports 8,225 In
bstltutions in Best Shape
in Over Two Years.

Controller of the Currency Crissinger
In q statement yesterday declared
That American national banks at the
.tlme of the last bank call occupied
"a more commanding position" than
at any time in more than tso years
past. Besides the strength Of the ma
tional banks, the controller added.
the la[ call revealed greater activ-
ity IN industrial pursuits
fhe aggregate resources OF S,l2o
reporting national banks on the date
of the call, December % last,
amounted to s21,s74951. 1000. an in
crease of sl,04S.s5s,o00 over the ag-
gregate resources of the same banks
on September Is, the date OF the
previous bank call. The total repre-
sented an increase in aggregate re-
sources for the year 1929 of S2,63l,-
2l5.000. Il figure of itself regarded as
sufficient proof of renewed industrial
and commercial progress.
There are approximately 33,ooo
banking institutions in the country
but the number of national banks
included in the figures given by Mr.
proportion of the total banking re-
sources than they do in numbers ac-
cording to Treasury officials. The IN
dications, given by statistics aHectlng
those banks. therefore, carry more
weight in the view of officia Is than
would be the case were the ratio or
the resources the same as the ratio
of the numbers OF the financial
houses.
Loan and Discount Totals.
Loans and discounts of the national
banks December 20 amounted to $ll,-
599,66S,000. or slightly more than half
of the available aggregate resources.
The figure includes rediscounts of
more than $262,000,000, but represents
an increase of more than $9i.0OO.0OO
for the year. While there was an
increase in the loans and discounts
during the year. the ratio of loans
and discounts to total deposits OF
The national banks decreased rather
heavily. as compared to last bank
cali in 1921. The statistics show that
loans and discounts were $3.50 per
cent of the total deposits last Deccm-
Der 20, while they constituted 1882
per cent of the total deposits Decem-
Der 81, 1921. The reduction III the
percentage was said to show gem
eral tendency Of borrowers to liq-
uidate their loans, and this was said
usually to show a healthier tone in
business
Total deposits were recorded De-
crease In the year Of s2,345.379, 600.
While part of the increase obviously
can be traced to the steady growth of
commerce and industry in a nation
of increas:HS population, some Ct it,,
IN the view of Treasury officials, nee
essarily must result froR improved
business conditions. There has been
no estimate, however, of how much
of the amount can be attributed to
each source.
G. & o. Dividends should Broaden.
With Chesapeake and Ohio now un-
der control of the Van Sweringens,
chances favor an ultimately higher
dividend on the common stock than
the present per cent. judging both
from earnings and from the liberal
dividend policy pursued by the Cleve-
land interests toward other roads.
Although Chesapeake. chiefly as
result of the shop strike which badly
Interfered with car supply and coal
shipments, last year did not come up
TO earlier expectations. it made a sat
lsfactory earnings record for 1922 as
whole. In spite of rate reductions.
says the Wall Street Journal, gross,
level with that of 1921, while the net
operating income of sl4,4l0.S30 showed
an increase OF s749,404. or ga per
cent over the preceding Year.
Chesapeake and Ohios 'non-eper-
ating" income last year was some
what increased by reason of receipt
of a full years dividents from Hook
ing Valley, Of whose Sill 100000 COM
mon stock Chesapeake owns sS.S25, 800.
estimated at about $500, 900, which
would make total income $15,710.330.
Taking fixed charges on approximate
ly the same basis as in 1921. the sur
plus available for dividends would be
s5,iS0.o00. There is now a 6ia per
cent preferred issue of S12,o5S.50O. on
which an initial quarterly dividend
of Sl.62l2 per share was declared last
November. leaving S4.926.000, cquiva-
792.6O0 common. This compares with
$6.67 per share earned In 1921.
Brokers' Loans Normal.
Loans of all hanks in the United
States are estimated at 100000. 900 eco.
This is not the peak, as total bank
loans in June, 1920. were officially
given as $31, ,203,1 ,142. 600. In June, 1922,
Is safe to assume that the total has
since mounted to $30,000,00 900. In
June, 1921, all loans were SESSION,
600. while IN that month of 1919 they
Estimating total bank loans at
S3o,0oe,o00,0e0 and Wall street brok-
ers' borrowings at about $4,000 G0O,-
coo, which is the approximate total
placed by the Wall Street Journal, it
is seen that only "a per cent of
utilized for New York Stock Market
purposes
In the deflation period Of 1919. when
brokers loans were about Sf.I5o, 900
Geo, the total of all bank loans was
S25,255, Ill 900. At that time brok-
ers borrowings were about per
cent OF all bank loans
Bankers do not consider the pro-
portion of loans secured by stock 6
and bonds as excessve-rather as de-
cidedly healthy, inasmuch as such
accommodations are backed by gilt
. edge securities Of the large industries
OF the nation.
Banking Resources.
The total resources OF the banks in
the United States today are estimated
at $4,000, 5000 In June, 1920. thew
were slightly over 5000, ,00o 900: in
June, 1922, $50, 425,367 900; in 1aei
s49,671.390,0o0, and In 1919 $47,613,-
$4,000.
AS the United States holds slightly
less than $4,000, 100000 fthe worId's
gold supply and the banks have total
resources of about $4,000. coo, 900. the
credit structure of the nation was
never more sound