The statement shows that during the year there were 51 convictions, as compared with 45 for the preceding year. Among those convicted were 5 presidents of national banks, 2 vice presidents, 16 cashiers, and 28 minor officers, clerks and others. FEDERAL RESERVE SYSTEM. The Federal Reserve System commenced operations upon the opening of the 12 Federal reserve banks on November 16, 1914. The following table shows the growth during these three years: GROWTH OF FEDERAL RESERVE BANKS. The 12 Federal reserve banks opened for business on November 16, 1914. Statements of their assets and liabilities are issued weekly. The consolidated statements of the banks for the stated date in November 1914, 1915, 1916, and 1917 are as follows: Our reserve banking system has fully vindicated the claims made for it by those to whose labors and sagacity it owes its creation, and has fully proven its ability to meet strain, and pressure, and shock greater than any which possibly could have been foreseen at its inception. In times of far less strain and danger in the past our merchants and business men have found it difficult, if not impossible, to obtain money or credit, and sometimes have had to pay for temporary accommodations rates of interest as high as 100 per cent or more. During these past three years of extraordinary trial, including alike periods of extreme depression and of abounding prosperity, there has not been a time when business men entitled to credit were unable to obtain needed accommodation for the ordinary require ments of business and commerce in every part of the country, and at rates, for the most part, from 3 to 6 per cent. For much of the time the rates were nearer to 3 than 6. The assistance which the Federal reserve banks have rendered in the placing of the Government certificates of indebtedness or temporary short time loans, of which there had been issued from the breaking off of diplomatic relations with Germany to December 1, 1917, a total of $4,380,320,000 (of which $3,050,239,000 had been paid off) and in the handling as agents for the Government of the two Liberty bond issues aggregating $5,808,766,150, has been of inestimable value to the country. CONDITION OF NATIONAL BANKS AT DATE OF EACH CALL DURING THE REPORT YEAR. The national banks were called on for six reports of condition during the report year ended October 31, 1917, and details of the resources and liabilities, as reported at the time of each call, are shown in the following table: Abstract of reports of condition of national banks in the United States from Nov. 17, 1916, to Sept. 11, 1917. Includes U. S. certificates of indebtedness and excludes Liberty loan bonds. Abstract of reports of condition of national banks in the United States from Nov. 17, 1916, to Sept. 11, 1917-Continued. This item formerly included due from national banks other than approved reserve agents. 2 Should be deducted from deposits in computing reserve. Included with time deposits. Does not include dividends unpaid. RESOURCES. LOANS AND DISCOUNTS. Loans and discounts, including rediscounts of $169,434,000, increased steadily during the year, reaching their maximum of $9,224,682,000 at the call of September 11, 1917. The proportion of loans and discounts to total deposits at the time of the last report, September 11, was 69.7 per cent, as compared with 67.22 per cent on November 17, 1916. The amount of loans and discounts September 11, 1917, shows an increase as compared with September 12, 1916, of $1,311,451,000. Two changes have been made in the classification of loans and discounts. First, provision has been made for "acceptances of own bank purchased or discounted." This heading has been added in order that information may be at hand showing the extent to which the national banks have resorted to the practice of purchasing or discounting drafts accepted by themselves under the provisions of section 13 of the Federal Reserve Act. Second, loans secured by real estate which conform to the provisions of section 24 of the Federal Reserve Act have been separated from those which are not in conformity with the provisions of that section. Included under the latter heading are loans upon which real estate security has been taken for debts previously contracted to prevent loss, under authority of section 5137, United States Revised Statutes, and also loans unlawfully made upon the security of real estate. The changes in the amounts and percentages of the various classes of paper held by the banks at the dates of the June calls in 1915, 1916, and 1917 are shown in the following table: On demand, paper with one or more individual or On time, secured by stocks and bonds.. Secured by improved real estate under authority of Total........ The above table indicates a tendency on the part of the national banks to increase their holdings of commercial paper and of paper eligible for rediscount with the Federal reserve banks, and to limit their loans upon stocks and bonds. The increase from June, 1915, to June, 1917, in paper not secured by collateral was $1,385,943, while the increase for the same period in loans secured by stocks and bonds, including acceptances, was $685,845. AMOUNT AND CLASSIFICATION OF LOANS BY NATIONAL BANKS IN THE CENTRAL RESERVE CITIES, ETC. In connection with the foregoing general statement, and for purposes of comparison, there is submitted herewith similar information based upon the June 20, 1917, returns from the national banks. in each of the central reserve cities, other reserve cities, and elsewhere in the country. It will be noted that the increase in total loans already mentioned is quite generally distributed among all classes of banks. On demand, secured by other per- On time, secured by other personal under authority of section 24, Federal Reserve Act, as amended. Acceptances of other banks discounted. Acceptances of this bank purchased or discounted... Total. 1,901, 464 470, 032 125,048 2,496, 544 2,566, 036 3,895,098 8,957, 678 38, 360 14, 181 634, 200 335,941 407, 234 700, 198 291,490 1,261, 631 72, 112 63,345 16,274 43,050 7,380 1,113 789 2,669 THREE-YEAR COMPARATIVE STATEMENT OF LOANS BY NATIONAL BANKS IN RESERVE CITIES AND IN COUNTRY BANKS. The amount, distribution, and proportion of loans and discounts in the banks in the city of New York, in all central reserve cities, other reserve cities, and in country banks in June, 1915, 1916, and 1917, are shown in the accompanying table: |