This section is from the book "Banking, Credits And Finance", by Thomas Herbert Russell. Also available from Amazon: Banking, credit and finance (Standard business).
The statistics of chartered banks in Canada show that in the 41 years 1868-1908 the capital paid up rose from $30,507,447 to $96,147,526, the liabilities from $45,144,-854 to $762,077,184 and the assets from$79,860,976 to $941,290,619. The totals on deposit rose during the same period from $33,653,594 to $658,367,015 and the notes in circulation from $9,350,646 to $71,401, 697. The deposits in banks by the public in Canada payable on demand increased from $104,424,203 in 1902 to $169,-721,755, and payable after notice from $244,062,545 to $406,103,063. The total deposits by the public payable on demand and after notice increased from $348,-486,748 in 1902 to $575,824,218 in 1908, being $62.93 per head of the population in the first of these years and $82.92 in the second. Including deposits elsewhere than in Canada and balances due to Dominion and Provincial Governments, the whole amount of deposits in the banks increased from $390,370,493 in 1902 to $658,367,-015 in 1908. These figures are in each case averages computed from the monthly returns. The assets at the end of December 1908 aggregated $1,001,352,290.
Statement Showing Condition or tot Thirty-three Chartered Banks or Canada, September 30, 1909.
Resources. | |
Speice.......................................................................................................................... | $24,416,115 |
Dominion notes........................................................................................................... | 66,924,455 |
Deposits with Dominion government for security of note circulation............................ | 4,589,540 |
Notes and checks of other banks................................................................................... | 36,476,053 |
Loans to other banks in Canada, secured, including bills rediscounted....................... | 4,528,018 |
Deposits with and balances due from other banks in Canada......................................... | 8,899,299 |
Balances due from agencies of the bank, or from other banks or agencies in the United Kingdom.......................................................................................................................................................... | 12,121,278 |
Balances due from agencies of the bank, or from other banks or agencies elsewhere than in Canada and the United Kingdom........................................................................................ | 33,010,619 |
Dominion and provincial government securities......................................................... | 11,964,292 |
Canadian municipal securities, and British or foreign or colonial public securities other than Canadian........................................................................................................................................... | 23,307,111 |
Railway and other bonds, debentures, and stocks.......................................................... | 52,679,288 |
Call and short loans on stocks and bonds in Canada.................................................. | 56,124,620 |
Call and short loans elsewhere than in Canada......................................................... | 131,634,384 |
Current loans in Canada....................................... | 560,206,621 |
Current loans elsewhere than in Canada..................................................................... | 32,981,183 |
Loans to the government of Canada............................................................................. | 0 |
Loans to provincial governments............................................................................... | 2,385,998 |
Overdue debts............................................................................................................. | 7,473,439 |
Real estate other than bank premises............................................................................ | 1,685,475 |
Mortgages on real estate sold by the bank.................................................................. | 528,494 |
Bank premises........................................................................................................... | 20,344,993 |
Other assets............................................................................................................... | 11,090,109 |
Total............................................................................. | 1,107,371,570 |
Liabilities. | |
Capital stock................................................................................................................ | 97,596,901 |
Reserve fund............................................................................................................... | 75,937,663 |
Notes in circulation................................................................................................... | 79,207,441 |
Balance due to Dominion government after deducting advances for credits, pay lists, etc... | 3,730,276 |
Balance due to provincial governments..................................................................... | 17,977,103 |
Deposits by the public payable on demand in Canada.............................................. | 239,967,052 |
Deposits by the public payable after notice or on a fixed day in Canada..................... | 474,103,799 |
Deposits elsewhere than in Canada........................................................................... | 76,556,786 |
Loans from other banks in Canada, secured, including bills rediscounted...................... | 5,137,386 |
Deposits made by and balances due to other banks.................................................... | 6,072,405 |
Balances due to agencies of the bank, etc., in the United Kingdom............................... | 3,803, 118 |
Balances due to agencies of the bank or other banks or agencies elsewhere than in Canada and the United Kingdom............................................................................................................................... | 4,210,628 |
Other liabilities........................................................................................................... | 9,911,247 |
Excess of resources........................................................................................................ | 213,159,765 |
Total................................................................................................... | 1,107,371,570 |
By James G. Cannon.*
In the year 1892 there were not more than a half-dozen credit departments in as many banks in the United States, and during the entire period of the existence of the American Bankers' Association, from 1875 until that date, the subject of "Bank Credits" had never been discussed in a practical way by its members. Since that time, however, the subject has come up for discussion before many state bankers' associations throughout the country, and the introduction of credit departments in banks has become very general.
On February 9, 1895, the executive committee of the New York State Bankers' Association adopted resolutions recommending to its members "that they request borrowers of money from their respective institutions to give them written statements over their signatures of their assets and liabilities, in such form as the committee on uniform statements of the various groups might recommend." Acting upon these resolutions, nearly all of the groups of the New York State Bankers' Association adopted uniform statement blanks, and the example set by that association has been followed by many associations in other states.
* Vice-president of the Fourth National Bank, New York City.
In 1898, the National Association of Credit Men, a large and powerful organization of nearly 3,000 members, after a year's investigation of the subject, adopted uniform statement blanks which have ever since been widely employed.
On September 7, 1899, the American Bankers' Association, in convention assembled at Cleveland, Ohio, adopted a uniform property statement blank, to be supplied to its members, and thus placed the stamp of its approval upon the credit department for banks, at the same time instructing its secretary to set up in his office a model department, and to furnish information to its members regarding the working of the same.
These efforts were practically the beginning of credit research, and as we trace the subject during the past twelve years and note the growth of these methods and the many difficulties which have been overcome, we certainly feel that something has been gained by the agitation and discussion of bank credits, and much good has been accomplished.
 
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