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

Desks. chairs and banking fixtures
gcperally-practica all furniture
not permanent to the building.
Investments other than of Govern
ment issued securities may be bonds
or stocks, but generally consist of
high grade bonds and are nearly
always held by banks for satisfac-
tory profit before liquidation and also
for the interest return.
10000
National and State banks as we'll.
keep large reserves in banks in other
cities upon which they may draw
drafts, issue letters Of credit and
of interest. Local bankers carry
their funds with Boston, New York.
Baltimore, Chicago and st. Louis
chiefly, with some other cities favor
ed, where there is need for the re-
serve. Trust companies and State
banks also keep large deposits with
other city banks for interest and
the use when needed. Deposits Of
this character are quickly availa Bile
to the bank having credit therefore
in the event of need.
CHECKS FOR CLEARANCE HOUSE
5000, 900.
Customers make deposits of checks
that they have received in the course
| of business and these in turn are
sent by the receiving bank to the
daily sessions Of the clearing house
where the manager offsets or evcns
up checks. of the banks as far as
possible. If one bank has large
credit balance, the banks with debit
balances must make payment in
funds III other cities or in cash. In
Washington all member banks re
ceive credits against funds on de-
posts with the Richmond Reserve
Bank and likewise make payments
Of debts the same way
CUSTOMERS LIABILITY UNDER
BANKS AND LETTERS OF
CREDIT-s000.0o 600
Acceptances by other banks that
rave been discounted and letters of
credit drawn on other banks that
have hcen partially paid but not col
iected by the paying banks.
INTEREST ACCRUED-$o0o,oO 900.
Parks in making their statements
nave a right to take credit for earn
cd interest.
UNITED STATES BONDS DEPOSIT
ED WITH THE SUPERINTEN-
DENT OF BANKS OF VARIOUS
STATES-s000,00 900
This deposit is made to secure State.
| funds deposited with national or
other banks
DEPOSITED WITH CONTROLLER OF
CURRENCY-SG00 900.
Trust companies and national banks
iunctioning as trust companies under
! IN" Federal Reserve act must make
deposit OF 20 per cent of capital in
FORM acceptable to the controller of
the currency with him. This is as
partial security for trust funds.
| GOLD-s000. 600.
This represents the bank. stock
| of yellow boys.
CASH IN VAULT AND TILL-.ooo. 900.
IT is obligatory on the part of
banks that they immediately meet
Whatever demands are made on them
| Tor cash. Savings banks NAV take
advantage of clauses giving 30 and
90 days notice, but national banks
| must pass the cash over TO the de-
positor. Bank officials generally know
about how much cash they need from
| day to day and are generally in
formed OF any extra large drafts that
are coming. In the country and
small towns q small amount Of cash
! usually serves, as Withdrawals of cur
rency usually are for the payment of
| local debts and usually find their
way back into the bank or banks in
a day or two. often on the same day.
| In large cities the cash may return
| in the city, but there arc so many
banks that the chances of it return
| ing to bank from which withdrawn
are slim. NatioRal and State banks
when pushed for extra cash draw on
| their reserves with banks in other
cities and in the same city.
DUE FROM FEDERAL RESERVE
BANkS-So00 600.
| National banks are obliged TO carry
reserves with the Reserve Bank of
which they beIong-thfs being 10
per cent of demand deposits and 3
per cent on time deposits. This re-
serve is availa BILE TO the bank in time
OF need but must Immediately be
made good again. No interest is al
lowed on these reserves.
PER CENT RESERVE FUND
100000.
National banks having circulation
outstanding must maintain "a per
cent reserve for cancellation of cur
rency that may be sent in to the
controller of the currency. This
fund must also be made good when
reduced by cancellations
| STOCK IN FEDERAL RESERVE
BANK-S000, 900.
National banks are called upon by
the Federal reserve act to provide
| the capital for the regional bank of
| which they are members. They are
| liable to be called upon for per cent
, of their capital and surplus, but as
yet they have been asked to paw in
! but ) per cent. ON this they do not
receive interest.
| OTHER ASSETS-$000, 900
I May consist of fractional cur
/ rency, postage stamps, foreign cur
! rency. unearncd payment on fidelity
| bonds, etc, etc.
/ GRAND TOTAL-SO. 900 900
/ BY the addition of these various
items the total resources of the in
stitution are made plain.
| Following are the
! LIABILITIES.
CAPITAL STOCK PAID IN-sO0o. 600
! The capital of the institution paid
! in by the shareholders on organiza
! ton or whenever an increase in stock
! is ordered by the shareholders Stock
| in a new bank is generally sold at
! par. Small banks sometimes organ.
| lie at $40 Il share and may have par
value anywhere from this to sIGO par
value, frequently 1925, the surplus
| $50 going to the surplus account
After d bank has been in business for
years the shareholders may decide the
price at which new stock will come
| out.
| SUKPLUS-S000, 900.
! SURPRISES are of two kinds, earned
| and maid in IL earned .riroS q