Show I I COMP COMPo ANNUAL REPORT I I Shows Condition of National Banks to be b Very Ver Good G Indeed Ind d Average Rate of Dividends Dividend Declared Since Sine March 1 1860 Per Por Cent Panic of October Oco and nd November 1907 Due to Lack Lck of Confidence of o Banks Bank in Them Themselves Themselves selves and Their Confidence Only Partially I Restored Remedy to Improve Reserve Ree System i III tnt lOf toll Off Dec D 1 KaHy In the th I 5 millions in n in th tt cbs United i i hI IM 4 d the tb f i II is t s 1 un U n of basin 1 mi In g gisei sr l 1 U o I 1 tight hl t of 0 U 1 market belt ft 5 t r ms N U developed t h Were w not tOn to t o an ani i elLis extent In the tb b banks ra rs raI raI I 1 J I nn I ii H a i whole w up to t AUL A 8 23 s There ThereS Tl i S i S Increase in the 1 cr t val valI i t UK sup 11 stud and tt discounts from fromn toll iJ I v n ii Nut Not U I 1 IJ to W a O OI ole I Aug ug il 2 1 b th total tot ln J bl bli Ji i Thie Thil increase wise waa dUe la ID lapail J pail Jn aIt to Lu ti Lbs lint fiut that BM 61 61 b with wih authorized authorised capital of ot 1 chartered cArer during the year er but mainly lo Lu the t Increase bora in I business buene of 01 the thu older associations The Th tt is bunk ni located loate In I the central reserve elites cities New w York Yo Chicago ant It at t Last Lt held i uld and nd th the tM a baak lo in ties the other 45 reserve elites cities cU Mk b Ue held Investments Investment of gi this character to lo loth th the amount of 9 the total for tr both classes cu clasS o of ot reser cr is cities cUe being AUG n 22 IW 1 7 On Aug Al U H lid 11 th I lie deposits on 0 which wh reserve w was required amounted to tic the reserve 1111 SW 1 3 th t Lbs average av being Nl 2133 Ia M pei remit cent that thai of 01 the central reserve reene city olt banks per cent cent of 01 other othe reserve city bak tanks pr 25 2541 4 per p cent cant ct Sad aad of o country banks U I ilU H pit per oust Ct The Des To average avre on Jan M I for tr all al p banks banki bk J 17 7 per percent percent cent the t highest of th tM the year vise Ih Iii t the year closed Oct Ot Jl 31 1 1107 ther th I was wa a groan geum addition to the capital stock tok of 01 national natina bank banks of ot 7 14 the losses 10 being by liquidation silL 11 expiration of 01 by failures by b reproduction or b authorised flure capital tUO total de decrease d decrease author crease Cn 00 th Ih the apparent pant net In Increase increase crease cre being The T average vt capital of or the 1060 1 as associations in itt existence Oct Ot 31 SI 1907 w was us 71 The authorized authorised capital stock tok of or all 11 the banks bk at the close cloe ot of the tl current report was dreu circulation tattoo lation outstanding t secured Mud by b bonds bd deposited to th the amount aunt of ot ottO I tO 10 The T aggregate g te circulation outstanding was waa 4 which In Include includes clude deposited dett with thus the treasurer on account of 01 liquidating and Insolvent banks and nd those reducing their circulation There Ther wits w an Increase I In national bank circulation cl tl between IMe 1 and of 01 over ov ir n 1 per cent 1 The average of the 0 banka buka reporting Te W wEep B 4 0 e l an e w dividends ili to t th t the amount of ot an average a pl of ft 11 per pr cent et The rite Tt gross gruse l ell were w JM n against which were we chap 1 and andl l premiums of 1918 sail anil ald expenses exp of or leaving beating the net amount of ot earnings earni MM The average annual rate of or dividends declared by b national banks since March arb 1 1313 1 Is Ie 8 76 per cent and the tb aggregate agM aggregate gate 1 amount amunt of or Jr dividends dividend declared tugs has 11 reached a 1 total toti of or on aver average average age annual capital of ot with the te proportion of 01 aggregate dividends to t average capital being SIS UI J Ir tr cent Charters of ot four associations expired by b limitation and anut SO 8 associations lato were placed pl In voluntary liquidation their aggregate capital being 1160 The Te business of ot 17 2 banks bank with wih aggregate IRr gate gal capital of 01 0 M was w absorbed by b other associations live hive banks bank In Including eluding cluing four lour the Ih charters of ot which ex n expired uI were liquidated for lor th the purpose Pr le leot of ot p reorganising SS U were closed 0 to re ms reorganize organize as state sat banking Institutions InstItutIon mind and 11 the lbs remainder 14 4 o to t discon discontinue times Un business The T average life hits lIe of ot an aa active Uye receiver receivership skip ship to Is approximately four lour years yer and nd the O tim expense of tiC administering a trust t based baaed be upon th tb the nominal value of ot the Ih IhA assets A of or the banks nJ closed el huts has b been n 4 41 SO per pe cent cn t FIRST From the he I date dt of the first aral failure In 1856 to ou Oot hi SI 1 1 1 1 the tb affair of ot 43 Insolvent national bunk blk ha hu hen hern ad admInistered d mInistered through the n duality of 01 o Receivers ahn i M vu been ben appointed however how for tor 1 47 i 1 tusks 1 kl hut nf of n that number J 2 were w i to io toti I solvency and n authorised 1 benl The rb number of or Is t tonly only S I i per Ir r r cr of lf tl the total number ot or banks ni During Durn Du the th pant paM year tl III hinks wil ith ag rt ate t capital capal of q rP i oo were r hart hartAI r l lAt At AI th the lose close i Io of or the fiscal nal at u Ilet p June JUnO 30 1 there were In lii II 1337 banks other than with lh aggregate ato resources lure if or til 1 I being an Increase of or 1 14 4 inks and AndOVer OVer 1000 In iii ii u e to us s reported the Ih plou year e r Th rh rhO urns In IH lud ud T 4 I loan nan and amid trust i i 1415 savings vII bank banks Cot ot which r fl 71 wei We of or the ce mutual Ia I I e banks without wl nl capital stock and uno 1141 private The Tie reports Irs Indicate nn tutu Increase In tl i In Iii II 1 19 07 over er 1308 lt of ot ROi the Ih deposits depol increased y The Thi Tbt indivIdual deposits deposit pi In III all al report reporting leg ing In banks 15 wI i a gain of or over fa within the th past seven tn yearn ears lie KIP Ih I rr II t year oar there has b been i uga an 18 In lit of or if approximately 4 00 01 ui i pt 11 ti i nt 11 The amount of or mOI held by bv nation national nalon al tel I and thi In lii this the United UDe RIal Juts Jun Ju M I 1907 10 was wa Jl lo 01 u I 4 10 The total stock tk of or money mOlY y July 1 of or the Ih year Mr In inthe th the hf tt was 1 reported at t JS sa sal 3 l 80 being un an III of ot 00 The Tho power por of the I lahl in 1907 1 07 tutu aH H by ny tau tai lo and ano other profits profit ep 1 ti II lit an RII l of national and oth othi ci i lejK banks together with tb tue tle 1 amount of nf funds of ot this the than ler in the Ih banks Ik In Is shown hon to I be 0 M the corn com combre rm bre l benking power Iel of or the world la Iii II l 74 00 PANIC Tin The conditions which le led to tu the tha lanti jank of itt f ang ant November Nov LW 17 v y e ere re not Ot due to t the failure of o a l 1 w Ii h il banks b They Thy were nut lest t d due lw to II UK n lack Ik of of a th lb tl l lin in the 11 I Ie banks bank but more moat Of to a li ot ut oti u i C nii nf if r UM this t banks b In I v d nl i I 1 their her reserve rv Banks hv hive v beI b u it lb at the reserve system e w wc at t down Iown and In cole it ha t broket brok down slid and Ald the p It U Its tuve hv be n only ly partially pally available av T lP asri also Iilo ft rf rul ul that not no uK uth Y dent cInt t could be b supplIed l t Lu men the th demand anti nd as U they ul aul 01 n 1 i the th demand at a once ume there thre has h not ben 11 The Te lt bait bet tf 1 it a curcy cu tUI TUK JIT TI Tie rH remedy for foe this state e of ot U is Uto to lii t improve ill th thu reserve fRn system yn o 0 that tl tut tul 11 reserve deposits deposit of tr the 1 can OON 01 be he b kept In a bunk bank where they ate oie sure surety Ire ty w slid and certainly available Wr We must mut impart to w our currency s s sten ten some se element of or elasticity su so t that when h hen n there Ibera comes com a sudden ud n demand for tor currents currency cUrn It IL I can be b supplied In bank without depleting the supply c c reserve serve er money mOlle These Th two Iwo desirable changes can cn L LA best accomplished UCO In fact tat they Ibey sail n bl oni be b satIsfactorily through th tb the establishment by the guy v cri ment ut of a I central bank of 01 issue and andt It t verve rv Such HUth a R bank would tint not only solve lve the two great get problems of our bunking banking system but It t would also provide the machinery for conducting the th treasury tSUI the praton rations In their relations to bank with the least let disturbance We Wt have wit a reel raal emergency to face fae Confidence U Ii I only In a measure meur rester restored ed d If t a bill bl should hould be b passed by Con Congress greeN gress reu providing for lor sonic some Olle emergency is La issue Isu sue suC u of f currency through the clearing cheering clearinghouse house bouss Associations or other machinery now organised slid and ald exiting existing so I that the hits theart art action ion might promise to be he h very KY ry prompt nd effective It I would doubtless be bevery beery bevery very ery helpful An Any measure of 01 this thin kind however to be b of 01 any assistance In this emergent must mUl be b adopted very ver promptly |