State banking institutions, while 1,100, or 17 per cent, represented advances to national banks. In terms of dollars, the loans to State banks, amounting to $135,430,000, constituted 80 per cent of the whole, and the loans to national banks, totaling $32,828,000, 20 per cent. These figures show conclusively that, in times of stress, the nonmember banks in the country districts are in greatest need of access to a central reservoir of credit. Unquestionably, the failure of the Federal reserve system to recruit a larger number of country banks--I mean by that a larger number of country banks which are eligible for membership under existing law-was a fundamental factor in the recent situation, the importance of which can not be overemphasized. The agricultural interests would, in my opinion, benefit more by getting those banks into the system than in any other way. The Federal reserve system is at present composed of 8,235 national banks, with a total capital and surplus of $2,348,000,000 and aggregate resources of $20,916,000,000, and 1,648 State banks, with a total capital and surplus of $1,141,000,000, and aggregate resources of $11,026,000,000. The average capital and surplus of the national banks is $285,000, while the average capital and surplus of the member State banks is $692,700, showing that the Federal reserve system has not recruited to its membership even the State banks whose average capital and surplus would approximate the average capital and surplus of the national banks. Let me repeat that the average capital and surplus of the national banks is $285,000, while the average capital and surplus of the member State banks is $692,700. Now, there are 9,678 eligible nonmember State banks, that is, banks which are eligible for membership under the present limitations as to capital but which so far have refrained from joining. These banks are located for the most part in the agricultural sections and they have a total capital and surplus of $1,209,000,000, with aggregate resources amounting to approximately $9,000,000,000. Their average capital and surplus is $125,000. In the six great Corn Belt States-Iowa, Illinois, Indiana, Missouri, Nebraska, and Ohio-which produce 48 per cent of our corn and which have within their borders 45 per cent of the swine of the country and 25 per cent of the total number of cattle (other than milch cows), there are 3,621 banks, having a total capital and surplus of $315,000,000 and aggregate resources of $2,554,000,000, which are eligible for membership but which have failed to join the system. Illinois alone has 1,037 eligible nonmember banks, with a total capital and surplus of $109,000,000 and aggregate resources of $909,000,000; and in Iowa, which presented perhaps the most difficult problem in the Corn Belt territory when we began to function under the agricultural credits act, there are 740 eligible nonmember banks, with a total capital and surplus of $52,000,000, and aggregate resources of $436,800,000. All these banks are eligible for membership under the present law, but they are not members of the Federal reserve system. Therefore, in times of difficulty, they do not have access to the central reservoir of credits which the Congress evidently thought they should have for the benefit of the people of their communities. I have prepared a series of tables analyzing the banking structure of the country. These tables show, by States, the number, capital and surplus, average capital, and resources of the national banks, of the State banks and trust companies which are members of the Federal reserve system, and of the State banks and trust companies which are now eligible for membership in the Federal reserve system but which have not joined. They show also, by States, the number, capital, surplus and profits, deposits, and resources of the State banks which are ineligible for admission to the Federal reserve system under the present limitations regarding capital, and give similar information concerning the banks that will still be ineligible if the provision in the Capper-McFadden bill modifying the existing capital requirements is adopted. The data regarding the ineligible banks was compiled from the July, 1922, Rand McNally Bank Directory. I would like to ask the privilege of inserting these tables in the record. They have never been published, and I think they are important and will be interesting to the members of the committee. Mr. STRONG. Without objection, the tables will be inserted in the record. (The tables referred to are as follows:) TABLE I.-Consolidated statement showing by States, number, capital and surplus, average capital, and resources of national banks, as of September 15, 1922: of State banks and trust companies, members of the Federal reserve system, as of June 30, 1922: and of State banks and trust companies eligible for membership in the Federal reserve system but which had not joined on June 30, 1922. Total, United States.. 19,561 4,698,720 38,389 85,500 49, 177 377, 105 42,280 114, 370 39, 460 411,069 197 28, 640 145, 380 265,464 550 50,000 5,352 121 97 5,374 18, 178 187, 400 173, 855 44, 410 40, 656 36 5,079 1,357 635, 726 468, 480 141, 080 4, 132, 724 867 316, 523 53,909 64 5,383 365, 080 26 31,368 2,466, 734 84, 110 37,700 65 130,488 1,206, 460 007, 510 625, 094 425 280, 256 17 188, 715 10,365 609, 710 444, 040 68, 807 1,040, 896 3 312 39,810 127,600 19,000 6,333,330 194, 739 6 003 237, 332 83 18,646 224, 650 120, 696 18 350 3, 120 333,830 16,710 19, 436 55, 530 173,330 17, 175 211 208, 750 133 18, 044 85,520 9,243 69,500 95, 272 99, 461 20 1,631 81,550 301 48,840 162, 260 20,638 197 367,983 101 24,675 8,562 244,310 43, 460 92, 840 195, 218 16 1,168 156, 764 134, 220 1,071, 918 8,550 534,380 73,060 184 15,615 559 107, 486 192, 280 84,860 808, 547 187 99,705 18,069 104 16,967 96,630 100,332 422 163, 140 130,950 24 6,314 31,209 263, 080 73,950 49,699 34 163,039 5,652 77 11,707 152, 040 166, 240 45,512 46 5,001 108,720 106, 159 49 7,872 160, 650 35,739 56, 079 334 80, 114 28 239,860 501,983 177 50,360 3,835 136,960 284,520 360, 105 50,080 15 258 7,767 517,800 35,881 139, 070 35,755 142 359, 270 111 21,987 23,457 211,320 266,588 154,840 106, 123 54 5,789 107, 200 320 48,764 152,390 49, 156 93 372,345 6,635 121 21,745 179,710 183,039 71,340 43,526 15 4,575 305,000 574 74,290 129,430 32, 460 184 710,305 155 37,736 22,444 243, 460 121,980 156,846 352, 295 36 9,320 91 8,780 96,480 73,506 47 258,890 108,537 383 5,898 27,234 125, 490 56,693 71,110 249, 473 4 281 70, 250 1,478 40 2,601 65,030 15,335 240,210 40,926,521 8,235 2,348,038 285, 130 20,916,859 1,648 1,141,567 692,700 11,026, 082 9,678 1,209,115 124, 930 8,983, 580 34881-23-4 TABLE II.-National banks showing capital, surplus, and resources on September 15, 1922, classified by States. TABLE III.-State banks and trust companies members of the Federal reserve system on June 30, 1922, classified by States. TABLE III.-State banks and trust companies members of the Federal reserve system on June 30, 1922, classified by States-Continued. TABLE IV.-State banks and trust companies eligible for membership in the Federal reserve system, but which had not joined on June 30, 1922, classified by States.1 1 Eligibility is based on capital stock requirements. List does not include mutual saving banks without. capital stock and private banks which are not eligible for membership in Federal reserve system. Includes undivided profits. |