Annual Report of the Comptroller of the Currency, 1908

Claims Supported by This Source

1. Public fund deposits in national banks were $223,117,082.61 on December 3, 1907; $170,700,222.87 on May 14, 1908; $118,576,923.89 on July 15; and $114,378,386.73 on September 23. Clearing house loan certificates first appeared in the report of December 3, 1907 (credit $74,461,026.61, debit $64,344,128.95) and disappeared by the July 1908 report (p. 5).
2. On August 22, 1907, national banks' deposits subject to reserve requirements were $5,256,085,097.14, with reserves at 21.33% and cash on hand at $701,623,352.52 (13.35%). New York City's reserves were 26.81%. By December 3, the national average was 21.31%, and country banks' reserves had increased from 16.88% to 19.17% (p. 5).
3. Explanation of Sections 1 and 3 of the Act of May 30, 1908: National banks with circulation secured by U.S. bonds of not less than 40% of their capital and a surplus of not less than 20% could issue additional currency up to 75% of the cash value of securities, including commercial paper, deposited with a national currency association, or up to 90% for state and city bonds. Issuance based on commercial paper was limited to 30% of the bank's capital and surplus. On July 15, 1908, national banks held $765,875,219.95 in state, municipal, and other bonds, sufficient to back additional issuance up to the legal limit (pp. 10–11).
4. During the Panic of 1907, 50 cities out of 106 clearing houses surveyed issued clearing house certificates. Total amount: $248,279,700. New York: $101,060,000; Chicago: $39,240,000; St. Louis: $15,965,000; Philadelphia: $13,695,000; Boston: $12,595,000; San Francisco: $12,339,000; Pittsburg: $7,445,000; New Orleans: $5,266,000 (totaling $207,605,000 for these 8 cities). Maximum outstanding balance nationwide: $219,857,500; New York: $88,420,000 (actual use estimated at under $74,000,000) (p. 64).
5. New York Clearing House committee report: Collateral $453,000,000 (commercial paper $330,000,000; stocks, bonds, etc. $123,000,000), interest at 6% $1,116,246. 20 out of 52 banks did not use the certificates. Comparison table for 1907 vs. 1893: issues $101,060,000 vs. $41,490,000; max. outstanding $88,420,000 vs. $38,280,000; max. to one bank $17,000,000 vs. $4,000,000. First issue Oct. 26, 1907; last issue Jan. 30, 1908; final retirement Mar. 28 (for 1893: June 1 to Nov. 1) (p. 65).
6. In the year ending June 30, 1908, individual deposits nationwide decreased by $315,100,000 (2.41%). In the Eastern states, while national banks increased deposits by about 5%, state banks decreased by about 8%, and trust companies by just under 12% (pp. 42–43).

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