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Show UNPARALLELED GROWTH IN IL S. Comptroller of Currency Describes De-scribes Development in Fi-. Fi-. nancial History of Country. U. S. BANKING POWER Fight Against Usury in National Na-tional Banks Outlined Effect Ef-fect of High Rates on Business. Washington, Jan. 10. "Development "Develop-ment and growth never paralleled in the financial history of any country," is the way John Skelton Williams, comptroller of the currency, describes in his annual report to congress, the operation of the national banks under his charge, from October, 1914, to November, No-vember, 1915, the first year under the Federal Reserve system. The report today was presented to congress. Mr. Williams gives a comparative statement of the condition of the national na-tional banks. He shows net resources increased in the year $1,743,878,648, deposits increased $2,081,530,164 and loans and discounts increased $917,-450,502. $917,-450,502. Available cash increased $8a2,000,000 and on Novmeber 10, 1915, the reporting national banks had excess ex-cess reserves of $891,000,000. Tables show the comparative condition of banks in 1895 and 1915. In .September, .Septem-ber, 1895, there were 3,712 reporting banks with net deposits of $1,980,000,-000, $1,980,000,-000, and loans and discounts of $2,-059,408,402, $2,-059,408,402, while in November, 1915, there were 7,617 reporting banks with net deposits of $9,079,471,447, loans and discounts of $7,233,928,973. "The reserves held by the national banks November 10, 1915," says the report, "exceeded by $587,000,000 the greatest reserves ever held prior to passage of the federal reserve act. Loans and discounts amountd to more than tho total loans and discounts of all banks, including national, state, pavings and private banks and loan and trust companies as late as the year 1902." Banking Power of U. S. Mr Williams says tho "banking power" of the United States capital surplus, circulation deposits, etc. of ..alL reporting, banks, -with an estimate of the figures for non-reporting banks, amounted in June, 1915, to $25,397,-100.000, $25,397,-100.000, an increase in a year of about $1,057,100,000. Savings bank depositors deposi-tors increased by 176,256 during the 3 ear ending last June with toal deposits de-posits of $4,997,706,013, an increase of $61,114,163. The average deposit decreased de-creased from $444.36 to S442.S3, but the number of banks increased from 2100 to 2159. The comptroller's principal recommendation recom-mendation for legislation is for an amendment to the bank law directing the department of justice to sue usurers on information from the comptroller comp-troller or other sources. Other recommendations for preventing prevent-ing bank failures proposes: To prohibit pro-hibit officers borrowing from their own banks; to prevent loans to directors di-rectors except with approval of the board; to require officers and employes em-ployes to give surety bonds; to limit direct and Indirect loans to one individual, in-dividual, form or corporation, to prevent pre-vent or limit overdrafts; to require certificates of deposit to be signed by two directors; to prevent erasures on bank books, to limit interest paid on deposits: to authorize establishment of branches in the United States; to permit branches in Alaska and insular possessions; to authorizo minimum Interest In-terest charges which ordinarily might be usurious on small loans and to authorizo the comptroller to proceed pro-ceed against directors for losses sustained sus-tained by a bank through violation of the bank act. Banks Broken by Bankers. "Banks," says Mr. Williams, "nearlj' always are broken, not by bank robbers, rob-bers, who have come from the outside, nor by failure of customers to whom they have lent money, but by the tying ty-ing up or dissipation of tho banks' funds through loans to their own officers offi-cers and directors, or else by direct defalcations and embezzlements by trusted officers. If these evils are remedied and they can be remedied If certain simple and much needed amendments can be secured to the national bank act failures among national na-tional banks can be reduced to a negligible neg-ligible number, or bo absolutely eliminated." elim-inated." Mr. Williams shows there were 14 failures in the 12 months ended October Oc-tober 31; that in tho last fifty years there were 208 failures attributable to criminal acts; that injudicious or careless banking was responsible for ICG others. The comptroller details his side of the fight with national banks to prevent pre-vent usurious interest rates. He gives figures to back up his charges and says complaints of this practice havo been particularly directed against small banks in the south and southwest, south-west, west and northwest. Mr Williams says that usury unchecked un-checked means "depopulation, hopelessness, hope-lessness, Ihriftlessness and resulting loss of producing capacity." He closes with the statement that intimate connection con-nection with the affairs of his office has shown that the majority of American Amer-ican bankers are honest and anxious to obey the laws, aud are intent on building up their communities and the country." oo |