The Coolidge examiner., 1935-06-14
TRENDS FAVORABLE
IN STATE BANKING
Recent Figures Indicate
Large Increases in Deposits
and Invested Funds

Improvement lu fhc condition %
state banks in almost every respect
during 1893 Is sa1aa by statistics
recently assembled Robert ~
Hanes. Freald 1' Warh0yla naus
and Trust Company Winston Salem
North Caroi.aa. points out 10 an ar
,icle To "Bapa.ng puhlahed by the
American Eaahcra Association The
nEures on which This Statement Is
based were gathered by the Commit.
toe on State Bauk Research % the
association from reports furnished
BY state bank supervisors through
out the country
Ever since 1921 The number %
state banks has been declining" Mr.
Hancs says Between 1881 aud 1895
the decline was rapid Figures Tor
Defender o. ls3i. showed that the
downward trend has not yet ended.
bat the decline last year was the
smallest IN twelve years
There are naa. be says. about ten
thousand state banks which term In
cludcs all state chartered iug.lta
uons w}th the exception of mutual
savings hau&a The article contln
ues
Even more slen.Gcaut aas tnr
ending 81 the d-ciine ~ deposits tn
state banks which had been going
on since the collapse of the stock
market boom tn 1872 % recent years
FOR which figures are available the
drop has been particularly abrupt
Total deposits In state banks dc
clincd from $e03ss-62oo0 on De
combcr a.. 1891 10 f28s25 600
on December 81. 1888 The record Tor
1885, shows q recovery 20 si7.Sos.
7G6. 600 AZ The year-end
Significance 81 Increased Deposits
1T IS particularly gratifying 20
note the expansion o. deposits, since
Il vas their decline which made nee.
ssSary The liquidation Of lusest-
men;s. The callIns % loans. and all
the other phenomena which 90 un-
der the name - deaatiou' and have
brought banks SO much criticism IN
recent years II ls now plain that
this was due 10 efforts - the banks
TO place themselves 70 the posses
sion OF enough llquid assets 20 meet
the growing demands of depositors
FOR the rcturu ~ part u The money
which had been placed ore deposit
THAT this iH true o. borne out by
the movement ol invested funds Of
state banks. whlch har raralleled
that of deposits Thege invested
funds iloans and discounts plus In
vestmeutsi Tor state hanks. dropped
from $50 29i 80 600 az ,he end %
1881 10 g1f9it.T1@ 0c9 ai the ni ~
1885 By Decemhe- 81. 1855. how
ever. they had recovered 10 Sls.769
$4,000 All of this gain rs accounted
for by the increase In investments
during 1884. the expansion amount
ing 70 approximately 81 100000 600
"As for loans and discounts. they
registered a slight drop again 10
1884. but The rate % decline was
much smaller than ia previous years
which IN Itself ls progress. Whereas
the drop ln loans and discounts
amounted 10 approximately $500.
100000 In 1882. and 10 approximate
ly $i.s0000o.0oo in 1888. Il was less
than $500 600 $500 IN 1854.
In another respect the balance
shee, hgures for December 81. 1884
were especially impressive. Bills
payable and redlgcounts OF the state
banks. which az the end OF 1882 had
reached q depression high OF 1868.
100000. had dropped by the close Of
last year TO the low figure Of ss2.i .i0i.
600. One must search the records as
far back as 1917 to find bills payable
and rediscounts OF state banks al a
lower figure Moreover. II Is reason.
able 10 expect n further reduction OF
such borrowings during the current
year"