Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-18
BANKING ROSTER
SHOWS REDUCTION
Controllers Report Reveals
Recent Changes in National
institutions.
BY CHARLES F. SPEARE.
Special Dispatch TO The Star.


NEW YORK, November 18.-Dealing
with one of the most critical periods
in American banking life the controller
Of the currency reviews the changes
taking place between the national bank
call of June 80 and that at the end of
September. It was within this time
that conditions developed In the bank
ing world, bringing to a head the ne
gotiations preliminary to the formation
OF the National Credit Corporation.
The survey of the controller is limited,
of course, to the banks under his juriS-
oiction. 1t does not deal with the
changes in the so-called "non-member
banks" in which the largest number of
failures has occurred this year as we'll
as in 1880. Therefore, only a part Of
the story of banking conditions in this
country has been told. The report,
however, gives a good picture of the
shifting in the items of deposits and
securities and reflects the general de-
crease in banking resources that has
recently taken place.
Reduction in Banks.
The reduction IN the number of ma
tional banks from June 80 to September
20 was lat, or from 6,805 to 1888. In
the IL months period from September,
1880, the decline in the number Of re-
porting national banks was $50 Not
all of this decrease was due to failures,
for in the period there were numerous
consultations as a part of the en-
deavor to strengthen the banking sit
uation by merging weak banks with
those having larger resources. There
were also some Withdrawals from the
national banking system.
The total decrease in the resources
OF the national banks In the Septem-
Der quarter is given by the controller of
the currency as 81 500, 634, 900, or
slightly over Z per cent. The rate of
reduction was much swifter in this
period than in the previous three quar-
tiers, for in the entire IL months to
September 80 the reduction in resources
was $2,632, $4,000, or about 10 per
cent.
The same general ratios of decrease
occurred in the deposit item, which de-
creased $1,818,8 56, 900 in the September
quarter and approximately $2,102 ,000,-
600 for the 12-month period An analy-
sis of the shift of these deposits would
show that a considerable part went
from national or commercial banks into
savings banks; also that while the de-
pcsits Of both member" and mon
member" banks were decreasing. there
was rapid increase In the amount
of the deposits of the postal savings
system, which now shows the highest
deposit item in its history. Some part
of the loss Of deposits was also due
to the withdrawal Of currency which
was subsequently boarded, but which
is now gradually coming out of its hid
ing places.
Loans and Discounts.
The loans and discounts of the ma
tional banks apparently decreased at a
more rapid rate in the September quar-
ter than the average reduction for the
IL months. The figures for the quarter
and for the year show losses in this
item, respectively, of 1897 $4,000 and
$2,173, $4,000. This is in line with the
showing Of the weekly figures published
by the Federal Reserve Board It may
be said that the same tendencies have
continued since the end of September,
producing O considerable reduction for
the month Of October and for the first
half Of November.
With respect to the holdings of secu-
rites Of the national banks, the trend
has not been similar TO that in other
items. This Is mainly due to the fact
that in order to become highly liquid
while there was nervousness among
bank depositors, It was the policy of
national as well as all other banks, to
increase their holdings of Government
securities. This item IN the September
quarter rose about $50 900 900, at the
same time that the holdings Of securi-
ties other than Governments decreased
$38, $4,000 For the IL months, the
national banks gained nearly $73, 600, 900
in their total holdings of all classes OF
securities.
Extent Of Suspensions.
The report submitted closes at the
date when the number of bank suspen-
sions throughout the country was reach
ing the highest weekly totals in history.
The suspensions in the first week OF
october were larger than for any SINH
lar period in the past two years and
amounted to 1856 The total for the
month OF october was the largest for
any month on record. According. to
the American BANKER, no less tnan
], BOG banks have suspended since jan
uary /, with deposits approximating
81, 525, 100000
Copyright, 1919