The Washington times., 1925-08-28
BANKS DOUBLE
RESOURCES IN
z YEARS
Increase is Significant OF Tre-
mendous Business De-
VeIopment
By RICHARD HATTON

There is no more significant evil
dence of the tremendous develop
ment and the increased production
and expanding business OF this coun-
try than is found in the expansion
of the resources of the banking in
situations OF the United States during
the past dozen years. Only twelve
years ago the banking resources OF
the nation aggregated only S25,OOO,-
100000. Today the combined re-
sources of the national and State
banks reach the tremendous amount
Of SCI, 200, 900, 900.
This tremendous increase, says the
financial magazine, Trust Com
panies, raises the immediate query
as to where this vast increase OF
5000, 000, 900 of banking wealth has
come from; whether additional cur
rency and credits released through
gold imports, federal reserve require
mentsl and acceptance business, fur
nish the basis or justification FOR
such volume Of banking media and
exchange.
Low money rates and superabun-
dance of funds in banks, which 10
accentuated by new record deposit
totals in the June 80 returns, sup
port the conclusion that from the
Quantitativel standpoint this country
is surfeited with more money and
credit than legitimate business.
trade or industrial expansion may
consistently absorb.
Returns From 20, 1873 Banks
"The latest figures as to aggre-
gate banking power have become
available through compilation
issued by Secretary r. N. Sims OF
the National Association of Super
visors of State Banks. This shows
returns from 29,138 national and
State banks and trust companies.
The banks and trust companies un-
der State supervision are credited
with resources Of 1858. 38z, 46S,
and national banks with $23,S32,-
463, 900, making aggregate banking
power of $50 .511 $4,000.
RESOURCES of State banking insti-
tutions indicate SO per cent in ex-
cess of the. national banks. Depos-
its total $50, 497 ,308. 900 with State
institutions holding $31, ia, 361 ,942
'OOO.lte'Zses6I$ sHuBq IeuoIlBu puH
the former having excess Of so per
cent over national banks. Com
bined capital, surplus and undivided
profits was Sc ,987. 1885, 900. with State
institutions representing $4.029, 1884,
900 and national banks $2,958, 445,.
900, and capital resources Of State
banks 36 per cent larger than the
national banks.
Between March 81, 1924, and
April, 1925. deposits Of State in
stitutions increased $2,711. sos. 900,
and Of national banks 81 ,784, PSI 900.
Since June, 1919. when these COM
piIations were first made, deposits
Of State banks and trust companies
have increased $9,481. 539, 900 and
national banks So, ass, 0S2 900.
CAPITAL Increases.
Capital. surplus and undivided
profits OF State institutions In
creased since 1919 to the extent OF
CLIPS, 731 900, and of national banks,
1894, 967 900. Combined increase
since 1919 was: Deposits, $12, 939, ST.
900; resources, $13. 746, SIS, 900; capt
tai. surplus and undivided profits,
81. 724. 698, 900 with net increase IN
number Of all banks and trust COM
panies of 325.
at is obvious from these sum
maries that State institutions have
made relatively greater gains than
national banks, attributable in part
to conversion Of national banks
: into State institutions and mergers
under State charter. The results
doubtless furnish the national
banks with additional arguments
I'm favor of amendments to the
National Banking Act and Federal
Reserve Act. such as embodied in
the McFadden bill"