postal savings deposits are to be considered as "time deposits" against which a reserve of 3 per cent must be maintained. Lawful money in vault and balances due from national banks, formerly reserve agents, no longer may be counted as a part of the legal reserve which national banks are required to maintain. Forms prescribed for the calculation of reserve in the different classes of national banks will be found on pages 161, 162, and 163. DEVELOPMENT IN NATIONAL BANKING. The following table shows the growth in the aggregate resources and liabilities and in the various items making up the total since the Federal reserve system went into effect. The first figures given are those shown by the fall report of the year preceding the establishment of the Federal reserve banks; next come the first figures rendered after the establishment of the reserve banks, the fall calls for 1915 and 1916, and four calls for 1917. It will be noted that because of the reduction of reserve requirements $447,797,000 less cash is held than on October 21, 1913, while between the date of the opening of the Federal reserve banks, November 16, 1914, and September 11, 1917, balances with Federal reserve banks were built up from nothing to an aggregate amount of $1,172,810,000. During the period from October 21, 1913, to September 11, 1917, the combined capital, surplus and profits increased by $146,410,000; total deposits increased from $8,346,011,000 to $13,234,297,000, and loans and discounts from $6,288,338,000 to $9,234,289,000. Liabilities of national banks on account of acceptances, which were not authorized prior to the passage of the Federal Reserve Act, amounted to $138,231,000 on September 11, 1917. Principal items of assets and liabilities of national banks, 1915–1917. Principal items of assets and liabilities of national banks, 1913-1917-Continued. Gross assets of national banks as shown by the returns of June 20, 1917, were $16,290,000,000. Their loans and discounts were $8,967,000,000 and their investments in bonds, stocks, and other securities, $3,013,000,000; or a total of these assets of $11,980,000,000, over 70 per cent of gross assets. It will be noted by reference to the table following that the gross earnings were equivalent to an average of 5.6 per cent of the amount of loans and investments in bonds, stocks (other than Federal Reserve Bank stock), and other securities. The percentage ranged from a minimum of 5 per cent for banks in Eastern States to a maximum of 7.21 per cent in Western States. The rate in Hawaii was 7.28 per The table in question follows: cent. National banks organized, liquidated, and closed annually from 1863 to October 31, 1917, are shown in the table following. Number and authorized capital of national banks organized and the number and capital of banks closed in each year ended October 31 since the establishment of the national banking system, with the yearly increase or decrease. Aggregate. 11,094 1,133,955,982 2,874 502, 330, 160 2586 95,770,920 7,941 Deduct de crease..... Net increase. Add for banks restored to solvency.. Total net increase. 642,907, 982 307 107,053, 080 The increase during the year was 63 banks and the net decrease in capital was $3,957,500, as one insolvent bank with a capital of $50,000 was restored to solvency by its shareholders and permitted to resume operations. Includes 37 banks restored to solvency. Changes due to increases and decreases in capital stock of existing banks do not appear in this table. The total authorized capital stock on Oct. 31 was $1,096,637,865, the paid-in capital, $1,096,199,747, including the capital stock of liquidating and insolvent banks which have not deposited lawful money for the retirement of their circulating notes. |