Approximately about one-sixth of the loans of all national banks are made by associations located in the city of New York, and the following statement shows the amount and character of such loans on comparable dates from 1905 to 1910, inclusive:

Loans and discounts.

Aug. 25, 1905. Sept. 4, 1906. Aug. 22, 1907. Sept. 23, 1908. Sept. 1, 1909. Sept. 1, 1910.

In the following table is shown the amount and classification of loans of all national banks on approximate dates during the past

UNITED STATES AND OTHER BONDS OWNED BY NATIONAL BANKS.

The banks' investments in United States bonds have increased from $731,028,110 on September 1, 1909, to $740,592,100 on September 1, 1910, a net increase of $9,563,990. One-third of the

increase, or $3,018,950, occurred between June 30 and September 1, 1910. Approximately 92 per cent of the government bonds held by the banks is in bonds on deposit as security for circulation and the remainder held by the Treasurer as security for deposits except the amount in the banks' vaults. On September 1, 1910, United States bonds on deposit to secure public deposits amounted to $40,857,700 and those held in their vaults $14,042,110. On September 1, 1909, the premium on United States bonds as shown by the banks' reports aggregated $14,721,196.01, and had been reduced by September 1, 1910, to $10,891,763.54.

Bonds, securities, etc., other than United States bonds, owned by the banks on September 1, 1910, aggregated $865,054,855, less by $51,325,445 than the amount held on September 1, 1909. Included in this class of assets on September 1, 1909, were $17,991,758.47 bonds on deposit with the Treasurer to secure public deposits. On September 1, 1910, the amount of bonds deposited for this purpose had been reduced to $10,927,191.01.

In connection with the possible acceptance of bonds other than governments for additional circulation under authority of the act of May 30, 1908, the following comparative statement of the aggregate amount of bonds owned by the national banks on September 1, 1909 and 1910, is of interest:

In the appendix to the report of the Comptroller of the Currency will be found a table containing details relative to investments in assets of this character by national banks located in each of the reserve cities and States.

to

Exchanges for clearing house, amounting to $329,725,534.43 on September 1, 1909, increased to $407,440,258.24 on January 31, 1910, decreased to $305,632,471.72 on March 29, increased $428,654,238.28 on June 30, and decreased to $284,962,685.13 on September 1, 1910. The net decrease during the year was $44,762,849.30.

Bills (circulating notes) of other national banks were held to the amount of $40,204,902 on September 1, 1909, reaching the maximum of $44,062,832 on March 29, 1910, and declined to $41,547,840 on September 1, 1910, which was $1,342,938 greater than on September 1, 1909.

The banks' holdings of legal tenders vary to a comparatively slight extent only. The holdings on September 1, 1909, amounting to $187,693,960, declined to $172,400,153, the minimum during the

year, on January 31, 1910. At the close of business on September 1, 1910, legal-tender notes were held amounting to $179,058,491.

The amount of gold and silver in the vaults of the banks on September 1, 1909, was $666,397,897.38; on November 16, $628,834,658.94; on January 31, 1910, $660,678,716.40; on March 29, $661,799,771.93; on June 30, $644,343,854.77; on September 1, 1910, $672,626,546.13. The average amount of gold held by the banks, as shown by each of the reports, was $504,694,219, and of silver $151,086,071 or 76.96 per cent in gold and 23.04 per cent in silver.

LIABILITIES OF NATIONAL BANKS.

The aggregate liabilities of national banks reached their maximum prior to the panic of 1907 on May 20 of that year, when they amounted to $8,476,500,000, a sum not reached until May 14, 1908, when they were reported at $8,594,600,000. Each report from that date until June 30, 1910, shows a steady and material increase, the maximum being reached on the date last mentioned, when the total was reported as $9,896,600,000. Between this date and September 1 there was a decrease in the banks' liabilities of $70,243,000, the decrease being mainly in individual deposits.

The liabilities of banks, exclusive of the amounts due depositors, other creditors, and holders of circulating notes, represent approximately 20 per cent of the aggregate liabilities and consist of capital, surplus, and other undivided profits. On September 1, 1909, the paid-in capital amounted to $944,642,067, the surplus fund $597,981,875.93, and other undivided profits $203,756,438.40.

The capital steadily increased, as shown by each report during the year, to $1,002,735,123.25 on September 1, 1910. This is the maximum amount of paid-in capital stock of national banks shown by any report during the existence of the system. The increase in capital was attended by approximately a corresponding increase in surplus, rising from $597,981,725.93 on September 1, 1909, to $648,268,369.97 on September 1, 1910. The undivided-profit account is more fluctuating and varied during the year from a minimum of $199,342,048.39 on January 31 to a maximum of $225,769,399.53 on September 1, 1910. The net increase in capital during the yearthat is, between September 1, 1909, and September 1, 1910-was $58,093,056.25, surplus $50,286,449.04, and undivided profits $22,012,961.13.

There has been relatively small fluctuation in the amount of United States deposits and deposits of United States disbursing officers during the year, though a net increase of $1,455,617.36 is shown. These funds on September 1, 1909, amounted to $48,704,883.27, and on September 1, 1910, to $50,160,500.63. Bills payable reached the lowest point during the year on January 31, 1910, amounting at that time to $27,718,183.71, and reaching the maximum, $72,847,849.63, on September 1, 1910. The increase on the latter date, as compared with September 1, 1909, was $36,618,871.34. The volume of notes and bills rediscounted was at its minimum and maximum on the same dates as bills payable, the extremes being $6,356,123.10 and $18,867,294.33. Comparing September 1, 1910, with the year prior, there is shown to have been a net increase in rediscounts of

$4,787,122.72, and a net increase in bills payable and rediscounts of $41,505,994.06.

The individual deposits steadily increased during the year from $5,009,893,079.79 on September 1, 1909, to $5,287,216,312.20 on June 30, 1910, but between the latter date and September 1 there was a decrease of $141,557,944.55, the amount on deposit at the latter date being $5,145,658,367.65. Comparing the returns on September, 1909, with those of September, 1910, there is shown to have been a net increase in individual deposits of $135,765,287.96.

Prior to March 29, 1910, while the individual deposits were classified in the reports made by the banks, the details were not incorporated in the abstracts. The expressed interest in this feature of the report was an inducement to the publication of the information in detail, and there is submitted herewith the amount of each class of individual deposits on March 29, June 30, and September 1, 1910.

Beginning with the call of November 27, 1908, an effort was made to ascertain the extent to which so-called "savings deposits" are held by national banks, in view of the fact that a number of associations conduct savings departments and others carry deposits classed as "savings accounts," although not in a special department. It further appears that in savings deposits are included both time and demand certificates. The question as to what should be reported as savings deposits has been the occasion of considerable correspondence, but the conclusion was reached that it was a question to be determined by the bank upon the advice that "all deposits accepted with the understanding between the officers of the bank and the depositors that they were savings deposits" should be so reported. The same question was raised in connection with the preparation of blanks for use by the National Monetary Commission in obtaining returns from the banks under date of April 28, 1909. The schedule provided for reporting deposits included the item "savings deposits," and the latter were characterized by the commission as

Deposits (a) which may be withdrawn on presentation of the pass book, or other similar form of receipts which permits successive deposits or withdrawals to be entered thereon; or (b) which at the option of the depositary may be withdrawn only at the expiration of a stated period after notice of intention to withdraw has been given; or (c) upon which no interest is allowed until the funds have remained on deposit for at least three months.

Beginning with the call of January 31, 1910, information was submitted with respect to the number of savings depositors, in addition to the amount of savings deposits.

65872°-FI 1910—23

While the following statement, relating to the number of savings depositors from January 31 to September 1, 1910, and amount of savings deposits from September 1, 1909, to September 1, 1910, indicates an increase in the volume of savings deposits in national banks, it is a question as to whether the apparent increase was not due to fuller returns rather than to an actual increase in deposits of this character. The number of banks reporting savings deposits increased from 2,010 on September 1, 1909, to 2,852 on September 1, 1910.

The number of reported savings depositors and amount of savings deposits on the dates indicated are as follows:

The original law required the maintenance of a reserve on deposits in all respects, but an exception was made with respect to United States deposits in the act of May 30, 1908. In determining the amount of deposits on which reserve is required to be held there is first ascertained the net balance due to other banks, to which are added dividends unpaid, individual deposits, and deposits of United States disbursing officers. From this gross amount the following deductions are allowed: Checks on other banks in the same place, exchanges for clearing house, bills of other national banks, and amount due from the Treasurer of the United States. The resultant amount of these deductions represents the sum of the deposits upon which is based the required reserve; that is, 25 per cent for reserve city banks and 15 per cent for all other banks. The amount of the reserve being determined, there is deducted therefrom the 5 per cent redemption fund which the law authorizes to be counted as a part of the reserve. The 25 per cent reserve required by central reserve city banks must consist of lawful money in bank; in other reserve city banks at least 124 per cent in bank, with a limit of 121 per cent with approved agents in central reserve city banks. Banks located elsewhere than in reserve cities are required to maintain a reserve of 15 per cent, of which at least two-fifths, or 6 per cent, must be in cash in bank and three-fifths, or 9 per cent, may be on deposit with correspondents in central or other reserve city banks.

While occasionally a bank is deficient in the amount of reserve required, the aggregate requirement for all banks is rarely deficient. During the period covered by the six calls ended September 1, 1910, the central reserve city banks, on deposits aggregating $1,500,000,000, held on four dates reserve in excess of the requirement ranging from $2,700,000 to $25,400,000, the maximum amount being held on September 1, 1910. On March 29, 1910, the average reserve in these banks was 24.92 per cent, a deficiency of $1,245,567, and on