other profits, $50,521,023, circulation outstanding, $48,984,722, individual deposits, $379,256,597. The amount of specie and legaltender notes held on September 4, 1906, was $39,540,889 less than on August 25, 1905, and the amount due to other banks and bankers was less to the extent of $35,876,120. The abstracts further show that from November 9, 1905, there was a gradual increase in the volume of loans from $4,016,735,497 to $4,298,983,316 on September 4, 1906. Individual deposits amounting to $3,989,522,834 at the beginning of this period increased to the extent of $99,000,000 by January 29, 1906; fell off to the extent of $110,000,000 on April 6, but between that date and June 18 increased $77,000,000, and from that date to September 4 increased $144,000,000. The total increase in individual deposits from November 9, 1905, to September 4, 1906, was approximately $210,400,000.

LOANS AND DISCOUNTS.

Periodical reports of condition made to this office by national banking associations show the amount and character of loans, classified as demand paper, with one or more individual or firm names; demand paper collateraled by stocks, bonds, and other securities; time paper, with two or more individual or firm names; time paper, single name, and time paper secured by stocks, bonds, etc.

The amount of loans and discounts on September 4, 1906, was $4,298,983,316, of which $1,016,793,343 were held by the 61 banks in the reserve cities of New York, Chicago, and St. Louis. Accommodations of this character granted by the 295 banks in the 38 reserve cities amounted to $1,161,984,189. The total for banks in both classes of reserve cities was $2,178,777,532, divided as follows: Demand, singlename paper, $171,787,594; demand, secured by stocks, bonds, etc., $621,324,914; time paper, with two or more individual or firm names, $571,779,482; time paper, single name, $406,430,691; time paper secured by stocks, bonds, etc., $407,454,851.

Loans granted by the 5,781 country banks aggregated $2,120,205,784, classified as follows: Demand, single-name paper, $202,901,651; demand paper, with collateral, $206,691,820; time paper, two or more individual or firm names, $930,255,416; time paper, single name, $369,694,410; time paper, with collateral, $410,662,487.

The amount and percentage of each class of loans shown by the reports made nearest to October 1, 1896, 1905, and 1906 are exhibited in the following table:

The amount and percentage of loans on September 4, 1906, of national banks in New York city, the three central reserve cities, other reserve cities, and elsewhere, are shown in the accompanying table, in which appears also a corresponding statement from the returns on August 25, 1905, and September 6, 1904. It will be noted that the banks located in the reserve cities held on September 4, 1906, but 50.7 per cent of the volume of loans as against 53.8 per cent in 1905 and 53.9 per cent in 1904.

For the purpose of comparison the following table is submitted, showing the amount and classification of loans on approximate dates during the past seven years:

With the abstract of reports of condition of national banks at each call is presented a statement of the amount of deposits on which reserve is required, together with a classification of, and the amount. and per cent of reserve held. National banks located in the central reserve cities-New York, Chicago, and St. Louis-are required to hold a cash reserve of 25 per cent; banks in other reserve cities 25 per cent, of which, however, one-half may be deposited to their credit with central reserve city banks; and 15 per cent by banks not located in reserve cities, three-fifths of which reserve may consist of balances due from approved correspondents in central or other reserve cities. On November 9, 1905, the deposit liabilities of banks were $4,667,325,425 and the reserve held $988,293,963, or 21.17 per cent. The

New York city national banks held a reserve of 25.26 per cent, but the deficiency in the other central reserve cities brought the average of the three cities down to 24.55, and while the other reserve city banks held a reserve ranging from 21.23 to 32.40, the average for these cities was but 24.77. The average reserve held by country banks was 2.30 per cent in excess of the requirement. On January 29, 1906, the average reserve for the central reserve city banks was 26.51; other reserve city banks 25.70, making the average for both classes 26.09. The average for the country banks was 17.03. On April 6, 1906, the reserve held by the central reserve city banks averaged 24.60 per cent and that of other reserve city banks 24.69, an average for both classes of 24.64. The average for the country banks exceeded the requirement by 2.07 per cent. The June 18, 1906, statement shows the average reserve held by the central reserve city banks to have exceeded the requirement by 0.95 of 1 per cent; Chicago and St. Louis banks were deficient, but the excess of New York City banks made the average for all good. The other reserve city banks had an average reserve of 25.42 per cent and the country banks 16.77. On September 4, 1906, the deposit liabilities of all the banks aggregated $4,927,865,451, and the reserve held $1,020,168,046, the average being 20.70 per cent. The average reserve held by all banks in the central and other reserve cities was deficient, amounting to 24.37 and 24.52 per cent, respectively. The average reserve of the country banks was 16.71 per cent.

RELATION OF CAPITAL TO OTHER ITEMS.

In connection with the general statements in relation to the condition of national banks it is interesting to note changes which have occurred in the relation of capital, etc., to individual deposits, etc. The table appended is based upon the reports made to this office on or about September, 1896, 1905, and 1906. As will be noted the ratio of capital to individual deposits in 1896 was as $1 to $2.46; in 1905, $1 to $4.78; in 1906, $1 to $5.03 and, including with capital, surplus and other undivided profits, the ratios were in 1896, $1 to $1.62; 1905, $1 to $2.66; 1906, $1 to $2.77. The proportion of capital to aggregate resources has gradually decreased from $1 to $5.03 in 1896 to $1 to $9.60 in 1906. The relation of specie and legal tender notes to individual deposits varied from $1 to $5.13 in 1896 to $1 to $5.74 in 1905 and to $1 to $6.71 in 1906. The variations in the ratios relating to banks located in New York City have not been so marked, as the ratio of capital to individual deposits of banks in that city in 1896 was as $1 to $5.48 and in 1906 $1 to $6.22. The ratio of capital to aggregate resources in 1896 was $1 to $11.56 and in 1906 $1 to $13.92. The proportion of capital, surplus and other undivided profits to individual deposits was as $1 to $2.49 in 1896 and as $1 to $2.77 in 1906. The ratio which shows the least change is in respect to specie and legal tenders as compared with individual deposits. In 1896, for each $3.22 of individual deposits, the banks held $1 in lawful money and in 1906 $1 was held against each $3.31 of individual deposit liabilities.

The table relating to all national banks follows:

RATIOS OF CAPITAL, ETC., TO INDIVIDUAL DEPOSITS, ETC., OF NATIONAL BANKS IN SEPTEMBER, 1896, 1905, AND 1906.

The relative proportion of the principal items of resources and liabilities to the aggregate resources of national banks at date of reports nearest to October 1, from 1900 to 1906, inclusive, is shown in the following table:

Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent.

The range and average monthly rates for money in the New York market during the year ended October 31, 1906, reported by the New York Commercial and Financial Chronicle, is herewith appended, and will be found of interest in connection with the foregoing résumé of the amount and distribution of loans of national banks.

NOTE. The amount in excess of the legal rate of 6 per cent, on time loans represents commission paid to obtain loan.

CAPITAL, BONDS, AND CIRCULATION.

During the year ended October 31, 1906, there was a gross increase of $49,935,500 in the authorized capital stock of national banks, of which $28,517,000 was from old banks increasing their capital, and $21,418,500 from newly chartered banks. The loss of capital was $15,409,800, which includes $13,223,000 by associations placed in voluntary liquidation and as a result of expiration of the corporate existence of two associations; $1,536,800 by banks reducing their capital, and $650,000 by insolvent national banks. The net increase as a result of these changes was $34,525,700, but this includes $612,000, the capital of banks closed but for which lawful money has not been deposited for the retirement of circulation and release of bonds on deposit as security therefor. The books of the office show the actual net increase as $33,913,700.

The average authorized capital of the 6,225 national banks in operation October 31, 1906, was $135,895 as against an average of $170,000 for the 3,617 banks in existence on March 14, 1900. This reduction is the result of the organization of 2,062 national banks under authority of the act of March 14, 1900, the minimum capital authorized being $25,000, but the average was approximately $26,000. The average capital of the 1,095 banks organized under the act of 1864, but since March 14, 1900, was $115,722, making an average for the 3,157 banks incorporated from March 14, 1900, to October 31, 1906, of $57,480.

The authorized capital stock of national banks at the close of the current report year was $845,939,775; bonds on deposit as security for circulation, $539,653,180; circulation outstanding secured by bonds, $536,933,169; circulation secured by deposits of lawful money, by banks reducing their circulation, those placed in voluntary liquidation, and on account of insolvent national banks, $46,238,816, making the aggregate circulation outstanding $583,171,985. Bonds on deposit as security for circulation are as follows: Two per cent consols of 1930, $492,170,650; Panama Canal bonds, $14,482,080; fours of 1907, $25,124,650; fours of 1925, $4,602,100; threes of 1908, $3,273,700. The consols of 1930 and the Panama Canal bonds represent approximately 94 per cent of the bonds on deposit as security for circulation. The highest and lowest market prices of 2 per cent consols of 1930 in October were 1043 and 1041; Panama Canal bonds,