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BANKS OF VERY SOUND
Financial Statements Are Encouraging.
NEW YORK, Ameribanking situation indicated can sound by condition statements of leading banks as of December 31, showing an unusual degree of liquidity. Reports of the larger New York City banks December in response to the call of the of currency, generally show in deposits from the September call but sharp creases in liquid assets. The shrinkin deposits was natural in view of the closing of many of the smaller banks and bank have turned many of their assets into ready cash meet any withdrawthat might develop. While suspensions of banks last were unusually large, per cent of the banks that closed capitalized $25,000 der and located in towns less than 1,000 population, while 80 per cent were not even members of the Federal Reserve System. In addition, evidences of found in some of the institutions, indicating that the closings were not entirely due to any fundamental weakness in the banking structure.
981 Banks Closed. Bank suspensions during the first months of 1930 as reported by the Federal Reserve Board numbered 981 and involved deposits of while in the period from 1921 1929, inclusive, there were 5,642 suspensions, involving deposits of Failcontinued during December, maxed by the closing of the Bank United in York City. Few of these banks have yet opened their doors. The increase in 1930 bank suspensions, according to recent survey by the National City Bank of New York, is probably no greater than should have been expected in view of the severe drop in security prices, farm and other commodities and the slump in business generally. Reviewing the banking situation particularly with respect to the large number of suspensions in 1930, Rome C. Stephenson, president of the American Bankers' Association, declared today that to some extent the bank must take passive role, and that its policies reflect business practices. Many business firms, he said, are finding difficulty in meeting their obligations, that the difficulties of the banks are thereby increased. "Unfortunately," he said, "some investments and loans created by persons outside the banks which found their way into the banks in relatively few instances have flected business policies and condition that became more than usually in our business activities and contributed to the difficulty of "The vast bulk of bank assets, are 100 cent sound above all question.'
