Evening star., 1924-09-21
BY i. A. FLEMING.

ana general Improvement III the
banking business of the city during
the years since the starting of the
great war
The period covered is inclusive from
January 1, 1915, up to and including
August 81. 1924, nearly 10 years.
During this time many banking in
stitutions have made good profits. but
1t has required good management for
success in this as well as in every
other line.
Success. too, stimulates formation
OF new banks, and, success being so
absolutely dependent on ability, fail
ure, direct or indirect, has not in
frequently followed.
For the laymen the information is
given that the item undivided prof
it's in a bank statement means the
earnings, net, for the period named,
after payment of all expenses, divi-
dends, reservation for taxes, etc.
Then, too, carrying to surplus ac-
count is made from time to time from
undivided profits
December 81. 1915. the Riggs Ma
tional Bank held 1880 per cent of the
total deposits of all Washington
banks, and on June 80, 1924, the date
of the latest call by the controller
of the currency. it held 1856 per cent,
banks increasing numerically in that
period.
The same computation may be car
ried through with regard to every
banking institution in the city. but
1T would be an interminable 3ob. and
is undertaken in this case sin.,ly be-
cause the subjoined statistics re-
Gently compiled for the directory of
the Riggs National are at hand.
Any other bank desiring similar
publicity may obtain it in the same
manner.
Period of Greatest Expansion.
submitted are the years of greatest
expansion, and also in 1920-21 and
part of 1922 of real depression, or,
more properly, deflation.
AS showing the growth of deposits
of all banks and relatively OF the
Riggs National the following are
submitted from reports made to the
controller:
Total deposits, all banks, December
81, 1915, sS5.370,000; Riggs National,
s9,222,096; December 81. 1916, all
banks. $99.172,520; Riggs, s11,O61, 900;
December 81, 1917, all banks, s139,
715,022; Riggs, s15.905,939; November
1, 1918, all banks, s145,SS3.9S4: Riggs.
$20,s25,s7S; September IL, 1919, all
675; November 15, 1920, all banks,
s165,s4s.252; Riggs, s21,5s3,Ooo; De-
cember p. 1921. all banks, s169.5SS,-
920; Riggs, s21.679.145; September -,
1922, all banks, s1S7,572.213: Riggs,
s25.55S, 900; December 81 1923. all
banks. s19S,542,963: Riggs, s26.S26.712,
and on June 80. 1924, all banks, s201,-
o36,s65, and the Riggs National, s27.-
467,245, in both cases the highest of
the records to date.
September l, 1924, the Riggs Ma
tional deposits were s31, 100000.
Undivided Profits.
In the matter of undivided profits
the figures are also available from
the regular reports in response to
controllers calls.
September l, 1915, were $3.50, 453: same
date, 1916, s225.777; 1917, s241.os2;
1918, s177.6s4; 1919, s252.417; 1920,
s253,603; 1921, s416,321; 1922. s674,-
2s7; 1923, s6S74S5, less $S3,469 re-
ceived from contingencies.
In 1924 there was taken from the
undivided profits and added to surplus
s25o,00o, but before this subtraction
the total was $1,059,12S: at the same
time there was also taken from the
undivided profits s33.469 for reserve
for contingent fund, but the total be-
fore Withdrawals remains as indi-
Gated.
oClOOeT 10, HOleu dDONe.
the Riggs National commenced to
operate on its enlarged capitalization.
S2,500,000 and a surplus of sl,000.000,
the latter being increased January /.
1924, to $3.50. 0oG.
The undivided profits September I,
1924, had been reduced by the diver
sion of S219,44S set aside for reserve
sions the undivided profits would
have been s1.059,12S, indicating also
that additional profits followed in
creased deposits.
Must Seek Profits Elsewhere.
In times of easy money, the result
of it's lessened use in business, etc.
banks must seek employment for
their funds other than through the
usual channels of loans and dis
counts. Real estate mortgages are
available for all banks, but national
banks may not make realty loans
for over a year, save in protecting
their own interests.
Call loans in the New York stock
market. available on demand and in
vestments in bonds furnish the chief
sources of employment for surplus
funds and the call loan rate now is
SO low that there has not been much
general use of that source.
Earnings made by the Riggs Ma
JlOndl odHh the quarter, enQeO
with September, 1923, were $82,91S.46,
made through interest earnings of
S62,31436, and profits on bonds bought
and sold s20.604.1O.
Earnings for the current quarter
ending with September, partially esti-
mated, are expected to show a total
of S170, 0,221.32, not allowing reserva-
tion for taxes accrued, about $40 900.
Interest earnings for the quarter
$4,000, and profits from bond pur-
chases and sales, $7S221.32.
Operations in Securities.
The operations of the Riggs Ma
tional to September /. 1924, are de-
cidedly interesting. The bank holds
Government bonds having a par value
of S6,S63,5S0 at cost of 100.43. or
S6,S93,53 which at the present value
of s6,941,S64 would show an unreal
lied profit of s4s,330.
Governments n Favorite.
Government bonds have been a fav-
orite with the Riggs National That
particular issue referred to generally
in street parlance as MELONS" the
AIS, were a great favorite and large
amounts were purchased and when
the high of 106 was reached shifted
at a nice profit to second Liberties.
The bank now has a large amount of
these on hand.
In 1928 there were 23S stockholders
in the Riggs, now 43S, and 49 officers
and employees are owners OF stock.
A number of estates have distributed
a considerable amount of stock.
A year ago the Riggs, to meet the
demand of it's clientele, was heavy
borrower at Az per cent from the
Federal Reserve Bank of Richmond
oh fa1 IN h.