Condition of foreign branches of national banks on June 20, 1917-Continued. [In thousands of dollars.] VOLUNTARY LIQUIDATION OF NATIONAL BANKS. Any national bank may be placed in voluntary liquidation by the vote of shareholders representing at least two-thirds of the stock (sec. 5220, R. S.). Meetings of shareholders for this purpose are called in conformity with the requirements of the articles of association, at which meeting, in addition to adopting a resolution for the liquidation, provisions are made, where practicable, either for immediate liquidation of the assets, and settlement with creditors and shareholders, or the appointment of a liquidating agent to settle the affairs of the bank as speedily as possible in the interest of both creditors and shareholders. Liquidations during the past year numbered 107, the capital of the banks being $14,367,500 and their total assets at date of closing or at the time the business was transferred to other banks aggregating $138,137,304.56. Of these banks, 21, with capital of $4,970,000 and assets of $50,777,687.65, were consolidated with other national banks; in a majority of these cases the capital of the continuing bank being increased, and the increase taken by the shareholders of the liquidating bank. Two banks with capital of $275,000 and assets of $3,480,338.53 were absorbed by other national banks, the shareholders of the liquidating banks acquiring no interest in the continuing business; 3 banks with capital of $325,000 and assets of $1,622,481.20 reorganized as national banks; 1 bank with capital of $100,000 and assets of $494,955.40 expired by statutory limitation and reorganized as a national bank. Twenty-five banks with capital of $4,130,000 and assets of $39,962,661.88 were absorbed by or consolidated with State banks and trust companies; 53 banks with capital of $4,517,500 and assets of $41,598,875.65 liquidated and reorganized as State banks; and 2 banks with combined capital of $50,000 and assets of $200,304.25 liquidated for the purpose of discontinuing business. From the foregoing it appears that 27 banks, with an aggregate capital of $5,670,000, liquidated for the purpose of reorganizing as national banks or consolidating their business with other national banks, which in many instances increased their capital stock and otherwise enlarged and strengthened their business and reduced expenses proportionately. The following table, arranged by States and geographical divisions, shows that during the year ended October 31, 1917, 176 national banks were authorized to begin business, with an aggregate capital of $11,590,000; that during this period 7 national banks, with aggregate capital of $1,230,000 and gross assets at date of suspension of $6,707,643.20, were placed in charge of receivers, and that 107 national banks were reported in voluntary liquidation, their aggregate capital being $14,367,500 and gross assets $138,137,304.56 at the time the business was transferred or discontinued: National banks organized, failed, and reported in voluntary liquidation during the year ended Oct. 31, 1917. ! Includes 1 bank with capital of $50,000 and assets aggregating $408,737.59, subsequently restored to solvency. 2 For 1 bank figures used are for call for Sept. 11, 1917. National banks organized, failed, and reported in voluntary liquidation during the year ended Oct. 31, 1917-Continued. 1 For 1 bank figures used are for call for June 20, 1917. ? Includes 1 bank with capital of $50,000 and assets aggregating $408,739.59, subsequently restored to solvency. FAILURES AND SUSPENSIONS OF NATIONAL BANKS. Seven national banks with aggregate capital of $1,230,000 were placed in charge of receivers during the year ended October 31, 1917, and 1 of these banks with capital of $50,000, was restored to solvency and authorized to resume business. The combined capital of the 6 insolvent national banks was $1,180,000 and their liabilities to depositors and other creditors at date of failure were $4,947,482. In the year ended October 31, 1916, 12 banks, excluding 1 which was subsequently restored to solvency, failed with aggregate capital of $755,000 and liabilities of $2,772,088. The date that each bank was authorized to commence business, date of the appointment of the receiver during the past year, the capital stock, and the circulation issued are shown in the following table: The first failure of a national bank was in 1865; from that date until the close of business on October 31, 1917, the number of such banks placed in charge of receivers was 586. Of this number, however, 37 were subsequently restored to solvency and permitted to resume business. The total capital of these failed banks was $95,770,920, while the book, or nominal, value of the assets administered by receivers under the supervision of this bureau aggregated $398,728,166, and the total cash thus far realized from the liquidation of these assets has amounted to $200,798,286. In addition to this amount, however, there has been realized from assessments of $50,740,740 levied against stockholders the sum of $23, 750,537, making the total cash collections from all sources $224,548,823, which have been disbursed as follows: In dividends to creditors on claims proved, amounting to $208,895,550, the sum of..... In payment of loans and other disbursements discharging liabilities of the bank other than those of the general creditors... In payment of legal expenses incurred in the administration of such In payment of receivers' salaries and other expenses of receiverships... Total...... $157, 501, 769 45, 993, 733 5,778, 462 10, 188, 614 3,733, 356 1, 352, 889 224, 548, 823 In addition to the funds thus distributed there had been returned, up to the close of business on October 31, 1917, to agents for shareholders, to be liquidated for their benefit, assets having a nominal value of $14,844,799. The book or nominal value of the assets of the 46 national banks that are still in charge of receivers amounted to $49,411,563. The receivers had realized from these assets at the close of business on October 31, 1917, the sum of $23,765,860, and had collected from the shareholders on account of assessments levied against them to cover deficiencies in assets the further sum of $1,804,897, making the total collections from all sources in the liquidation of current or active receiverships the sum of $25,570,757, which amount has been disbursed as follows: Total assets taken charge of by receivers (as above)...... Dividends to creditors (to Sept. 30, 1917).. Loans paid and other disbursements discharging liabilities of the bank other than those to the general creditors.. All other expenses of administration... $49, 411, 563 18, 030, 845 4, 558, 315 650, 133 500, 121 531, 717 1,299, 626 Returned to shareholders on account of rebates on assessments.. Total...... 25, 570, 757 The collections from the assets of the 540 national banks, the affairs of which have been finally closed, amounted to $177,032,426, and, together with the collections of $21,945,640 from assessments levied against the shareholders, make a total of $198,978,066, from which, on claims proved aggregating $180,956,035, dividends amounting to $139,470,924 were paid. 13034°-FI 1917-38 The average rate of dividends paid on claims proved was 77.07 per cent, but, including offsets allowed, loans paid, and other disbursements with dividends, creditors received on an average 83.63 per cent. The expenses incident to the administration of these 540 trusts-that is, receivers' salaries and legal and other expensesamounted to $14,285,105, or 4.09 per cent of the nominal value of the assets and 7.18 per cent of the collections from assets and from shareholders. The outstanding circulation of these banks at the date of failure was $27,317,239, which was secured by United States bonds on deposit in the Treasury of the face value of $29,556,050. The assessments against shareholders averaged 50.81 per cent of their holdings, while the collections from the assessments levied were 48.11 per cent of the amount assessed. The total amount disbursed during the current year to the creditors of 43 of the insolvent banks, in the 73 dividends declared, was $4,633,047. In the table following is summarized the condition of all insolvent national banks, the closed and active receiverships being shown separately: 1 Includes 37 banks restored to solvency. Includes capital stock of 37 banks restored to solvency. The affairs of 13 insolvent banks were closed during the year ended October 31, 1917, and in the accompanying table appears information relative to the capital, date of appointment of receiver, and per cent of dividends paid to creditors. |