liabilities at date of failure, determined at close of the trust, consist of the amounts reported under the heads of "Claims proved," "Loans paid," and "Offsets." Likewise the gross value of assets at date of failure is indicated by collections therefrom added to amount of offset against liabilities.

Cost of liquidation of the affairs of insolvent national banks—that is, receivers' salaries, legal and all other incidental expenses-based on the amount of assets (nominal value) of the trusts, averaged up to and including October 31, 1906, 4.28 per cent, against an average of 4.6 per cent to October 31, 1905.

The greatest number of failures of national banks (given geographically), the affairs of which have been finally liquidated, occurred in the Western States, namely, 92, with capital of $9,267,000. In the Middle Western States there were 81 failures, with capital of $16,772,000; in the Eastern States, 72 failures, the capital of the banks being $12,470,620; in the Southern States, 71 banks with capital of $9,996,500; Pacific States, 37 banks with capital, $4,760,000; and New England States, 23 banks with capital $5,781,300. Creditors of banks located in the New England States realized 94.09 per cent on their claims; in the Middle Western States, 90.42 per cent; Eastern States, 76.01 per cent; Pacific States, 71.71; Southern States, 70.25 per cent, and Western States, 67.73 per cent.

Questions have been frequently raised as to the demand for, and successful operation of, national banks with the minimum amount of capital ($25,000), authorized by the act of March 14, 1900. The records show that under authority of that act 2,062 associations have been chartered, with capital of less than $50,000, the average being approximately $26,000; and that of this number, 17, or less than 1 per cent, have failed. Of the total number of failures since March 14, 1900, namely, 72, less than one-fourth were of the smaller class, which would indicate that these banks are as conservatively managed, and that, as far as the six years' record shows, the probability of failure is less, than with banks of larger capital.

For the purpose of comparison, there is submitted herewith a statement covering the years indicated of the annual (average) deposits in active national banking associations and the ratio of annual loss sustained by creditors of insolvent national banks to the average deposits, together with the amount of claims proved and the aggregate and average loss sustained by creditors:

Annual (average) deposits in active national banks, 1865-1904..
Total claims proved against insolvent national banks to 1904 ...
Total loss to creditors (actual 1865–1892, and estimated at 25 per cent
of claims, 1893-1904).

Average annual loss.

Average annual amount of claims proved

Average annual loss...

per cent..

Average (annual) rate of loss, based on average deposits in active national banks

..per cent..

$1, 333, 063, 452 147, 309, 310

43, 028, 977

1,075, 724 3,682, 732

29.21

0.0807

The affairs of practically every bank which failed prior to 1892 have been finally liquidated, and in calculating the total amount of loss it has been assumed that trusts still open will be finally liquidated at an average loss not greater than 25 per cent.

ORGANIZATION OF NATIONAL BANKS.

The First National Bank of Philadelphia, chartered June 20, 1863, was the first national banking association authorized to do business under authority of the act of February 25, 1863. From that date to the close of the year ended October 31, 1906, 8,421 associations were chartered, of which 6,225, or 74 per cent, are in active operation, 1,750, or 21 per cent, closed by voluntary liquidation or expiration of charter, the number of the latter being 167. Four hundred and forty-six banks, exclusive of 22 temporarily in charge of receivers, but subsequently authorized to resume business, were liquidated through, or are still in charge of receivers. The number of failures represents but 5 per cent of the total number of banks chartered. Included in the total number of banks organized are 1,271 State banks, which were converted into national banking associations under the provisions of section 5154 of the United States Revised Statutes, the capital at date of conversion being $302,476,928. Approximately, one-half of the converted banks, and representing over two-thirds of the capital, were institutions in existence in the States of New York, Massachusetts, Pennsylvania, Connecticut, and Rhode Island. The number of conversions in the State of New York was 204; Massachusetts, 182; Pennsylvania, 102; Connecticut, 65, and Rhode Island, 52.

Legislation embraced in the act of March 14, 1900, resulted in the organization from that date to October 31, 1906, of 2,062 banks with aggregate capital of $53,755,500, and individual capital of less than $50,000. That the act in question gave an impetus to the organization of national banks with capital in excess of $50,000 is evidenced by the fact that during the period mentioned 1,095 banks of this class with aggregate capital of $126,707,800 were chartered, the number and capital of both classes being 3,157 and $180,463,300, respectively, being nearly 40 per cent of the number of associations organized during the existence of the system. That the organization of banks since March 14, 1900, has not been spasmodic is evidenced by the fact that the average number of banks chartered during each month of the years in question was approximately 40.

Prior to 1900 no record was kept of the number of banks organized to succeed State or private banking institutions, but since that date organizations have been divided into three classes: (1) primary organizations; (2) conversions of State banks, and (3) reorganizations of State or private banks; and from which it is shown that 1,772 of the organizations were primary, the capital represented being $91,417,500; 352 conversions, capital $23,256,800, and 1,033 reorganizations, capital $65,789,000.

In the current year charters were granted to 455 associations, the aggregate capital being $21,418,500, and bonds deposited to secure circulation to the amount of $6,071,830. This number includes 307 banks with capital of $7,938,500, and individual capital of less than $50,000, and 148 with aggregate capital of $13,480,000, and individual capital of $50,000 or more. Banks organized in each State and geographical division chronologically arranged, are shown in the appendix of this report.

As supplementary to the data given in Table No. 7 of the appendix to the report of the Comptroller of the Currency, relating to the number of national banks organized during the year, in liquidation, and the number and capital of banks in existence in each State on

October 31,1906, there is submitted herewith a statement relating to the organization of national banks since March 14, 1900.

NATIONAL BANKS ORGANIZED FROM MARCH 14, 1900, TO OCTOBER 31, 1906.

A further classification of the banks organized during this period is shown in the following table:

The number of banks organized in each month since March 14, 1900, are shown in the accompanying table:

The operations for the current year as indicated by the number and capital of banks chartered in each month, divided into the three classes hereinbefore mentioned, together with the amount of bonds deposited, are exhibited in the following table:

As hereinafter shown, there were in operation on March 14, 1900, but 3,617 national banks, with authorized capital of $616,308,095 and circulation outstanding secured by bonds of $216,374,795. Since that date there has been an increase in the number of banks to 6,225 and authorized capital to $845,939,775. The outstanding circulation on October 31, 1906, secured by bonds on deposit with the Treasurer of the United States in trust was $536,933,169. Notes are outstanding to the amount of $46,238,816, which are secured by deposits of lawful money made by banks reducing their circulation, those placed in voluntary liquidation, and on account of insolvent national banks. The total circulation outstanding secured by bonds and lawful money was $583,171,985. The conditions with respect to the number of

banks, authorized capital, bonds on deposit, and circulation outstanding on the two dates mentioned, and also on October 31,1904, June 30 and October 31, 1905, are shown in the following table:

Section 5210 of the Revised Statutes provides in part for the submission to the Comptroller of lists of shareholders of national banks, showing the number of shares held and residence of shareholders. These lists, however, contain no information in relation to the vocations of shareholders. To a certain extent the business in which applicants for authority to organize national banks are engaged is an indication of the occupation of shareholders as a whole. Beginning with November, 1905, a record has been kept relative to the business of approximately 3,200 applicants, and the results show that 876, or 28 per cent, of the applicants are bankers; 971, or 30 per cent, merchants, with which are included manufacturers, lumber and coal dealers, publishers, hotel proprietors, real estate and insurance agents. Farmers and stockmen to the number of 485 represent 15 per cent of the applicants and the law and medical professions 285, or 9 per cent; the remaining 555 not engaged in any of the lines of business heretofore mentioned, and including a number with respect to whom no information is of record, represent 18 per cent of the total.

STATE, SAVINGS, AND PRIVATE BANKS AND LOAN AND TRUST

COMPANIES.

Conformably with the provision of law which requires the Comptroller of the Currency to incorporate in his annual report to Congress statements exhibiting the resources and liabilities of banks organized under State laws, there is submitted information relating to 11,852 banks of that class.

Official reports as to incorporated banking institutions herein presented are from all the States and Territories with the exception of Arkansas, Indian Territory, Oregon, Nevada, Alaska, and Hawaii.

Statements showing the condition of private banks and bankers have been received from official sources from North Carolina, Indiana, Missouri, South Dakota, Kansas, Wyoming, and California. Official statements of private banks of South Carolina, Nebraska, and Idaho, and unofficial statements from Indian Territory are included with the statements of incorporated banks for those States. The private banks of the other States and Territories sent reports direct to this office.

Reliable authorities place the number of banks and bankers in the United States and island possessions, exclusive of national banks, at 15,343. Of this number reports pertaining to 11,852 banks have