Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-11-16
Bank Statements.
RESOI RCES.

This item represents the amount
of money the bank has loaned to it's
customers and others. either on coll
lateral security, on filing statements
"f condition that Will warrant the extern
sion of credit on one or two name paEer
and, perhaps. few accommodation
notes. Fhere arc occasions when banks
discount a note or notes, taking off the
amount of interest for the period OF
the life Of the note from the cash
credited to the borrower at the time
of actually making the loan. Other
loans are frequently made on good
Endorsements with the collateral
loans always in high favor. so much
so that in times of plenty in the
money market, like the present, IL
is not absolutely necessary that
borrower with his security should be
a customer OF bank to obtain
loan.
OVERDRAFTS - SECURED AND
UNSECURED, 100000
Banks will not dishonor the check
OF good customer who may Incl
dentally draw checks for larger
amount than his deposit credit Ere
quently collateral is held against
such possibility AMI often security is
offered at once for an overdraft
which practically makes n short
term loan. Not infrequently an over
draft VIII occur that is not treated
leniently, but upon which payment is
Immediately demanded. The frequent
overdrawer will find payment re-
fused on his checks.
Us. CERTIFICATES OF INDEBT
EDNESS, TREASURY NOTES AND
LIBERTY 900.
These are frequently listed under
the item Investments" Bank. en-
ploy much cash In these liquid Sc
curities If kept with the Federal
Reserve Bank. OF which the institu-
ton is a member. they represent just
that much additional reserve, as they
may be used as a basis for loans
from the bank almost instantaneously
In any city where there is a Federal
Reserve Bank or branch, this class
of securities is Immediately inter
changable for cash. Banks find gov
ernments an excellent investment, as
they are free from all normal taxes,
when money is too plentiful to per-
NIT the employment of all available
funds in the credit markets.
UNITED STATES BONDS TO Sc
CURE CIRCULATION-s00 900.
National banks are permitted to is
sue circulating notes-national cur
rency-up to 100 per cent of their
capital. when secured by old United
States 4 per cent bonds, Panama IS
and Consai IS. Many banks have re-
tired their circulation; some have
not taken out tany. The issuing
bank has to pay d tax of Il of l per
cent on outstanding currency. Where
a bank has currency outstanding it
offsets liability with bonds to secure
.,fy Lot ..,,
National Bank notes outstanding as
an offset in the liabilities.
UNITED STATES BONDS TO Sc
CURE, UNITED STATES DE-
POSITS-S000, 600.
This represents the face value of
bonds of the United States that have
been placed with the Secretary of
the Treasury to guarantee the
prompt payment, when desired, OF
any money that the bank may hold
belonging to the Government.
BONDS FOR UNITED STATES
POSTAL SAVINGS DEPOSITS
100000.
The Secretary of the Treasury
may deposit postal savings funds
with national banks designated as
depositories of public funds, but thcy
municipal bonds satisfactory to the
Secretary of the Treasury.
BONDS FOR OTHER DEPOSITS
10000
Banks designated as repositories
may receive deposits of Panama
Canal funds or Philippine Islands
funds by securing the same with
straight municipal bonds. or Govern
of I,a nd od
and of any good railroad or indus
trial bonds at rs per cent of their
appraised. value, subject to the ap-
prevail of the Philippine Commission.
DISTRICT OF COLUMBIA FUNDS
100000.
Court funds deposited with banks
of deposit are guarded very rigidly
and must be secured by Government
bonds.
RANKING HOUSE-sOo00 900.
This item represents the cost or
actual value of the banking house
and realty upon which it stands. If
the bank operates branches the item
will read banking houses" and if
undergoing enlargement or new
building was under CONSTRUCTION
building account" might appear.
OTHER REAL ESTATE OWNED
100000.
The controller of the currency
gives approval to the valuation
placed on banks property. National
banks are not allowed to own I'M
occupied real estate, except when
taken to protect the bank against
loss through loan. 1t is also fact
that national banks may not invest
in trusts secured by real estate, save
fer one year. This is d handicap