Banks
Banks names 7 different subjects across the 6 encyclopedias on this shelf. Each is set out below.
Banks THOMAS, an English sculptor
Collier's New Encyclopedia (1921)
THOMAS, an English sculptor, born in 1735. He studied sculpture in the Royal Academy, and in Italy, 410 BANKS IN THE UNITED STATES where he executed several excellent pieces, particularly a bas-relief representing Caractacus brought prisoner to Rome, and a Cupid catching a butterfly, the latter work being afterward purchased by the Empress Catharine. Among his other works was a colossal statue of "Achilles Mourning the Loss of Briseis," in the hall of the British Institution, and the monument of Sir Eyre Coote, in Westminster Abbey. He died in 1805. BANKS IN THE UNITED STATES, financial institutions comprising (1) National banks; (2) State banks; and (3) savings banks, consisting of (a) mutual saving savings banks; and (b) (b) banks. These are general throughout stock the entire country. In addition to these, are (1) co-operative banks, common in New England, especially Massachusetts; (2) loan and trust companies, established in nearly all the large cities; and (3) building and loan associations, now represented in most of the States and Territories. The last three classes partake of some of the features of regular banking, especially in the reception of money on deposit, subject to call, and the payment of interest thereon. The first three kinds of banks only are here considered; the others will be found under their respective titles. National Banks. - There were on November 17, 1919, 19,129,842 depositors in National banks. These figures show that the depositors in the National banks of the country exceed in number onesixth of the total number of the population in that year. The number of depositors increased from 1910 to 1919 11,439,- 374, or 148.75 per cent. On June 30, 1919, there were 21,338 State banking institutions which included savings banks, private banks, and trust companies. The aggregate paid in stock in these institutions amounted to a combined capital of $1,318,716,000 and the total resources to $26,380,529,000. The deposits amounted to $21,744,046,000. The State banks numbered 17,225 with a combined capital of $785,727,000 and aggregate resources of $11,701,606,000. The deposits amounted to $9,046,919,000. There were 622 mutual and 1,097 stock savings banks in 1919. The deposits in the mutual banks amounted to $4,422,- 096,000 with 9,011,464 depositors. In the same year there were 1,377 loan and trust amounting to $7,959,969,000 and deposits companies with resources amounting to $5,696,030,000. There are approximately 3,500 private banks in the United States, of which only about 1,000 are under supervision of the State or National banking departments. The deposits in these banks amounted to $219,830,000. See POSTAL SAVINGS BANKS; BANKS, FEDERAL RESERVE; SAV- INGS BANKS; etc. The following tables, compiled from the report of the Comptroller of the 9), give a com- Currency (Dec. 1, 1919), prehensive view of the development of the National banking system in recent years: Number Date of banks Sept. 7, 1899. 3,595 Sept. 6, 1904 5,412 Sept. 1, 1909 6,977 Sept. 12, 1914 7,538 Nov. 17, 1919 7,865 Number Date of banks 3,595 Sept. 7, 1899 Sept. 6, 1904. 5,412 Sept. 1, 1909 6,977 7,538 Sept. 12, 1914. 7,865 Nov. 17, 1919. 1 Includes rediscounts. 2 Includes cash on hand and due from reserve agents. from other banks. History. The first bank in the United States was organized in Philadelphia in 1780, and a bank of North America was planned in 1781 and opened in 1782. The Massachusetts Bank was incorporated in 1784; that of New York was chartered in 1791, although since 1784, under Alexander Hamilton's "Articles of Association," it had been doing business. Alexander Hamilton also originated a plan for a United States bank, with a capital of $10,000,000, three-fourths to be paid in United States stock, at 6 per cent., by which plan was adopted and approved ved Washington in 1791. The bank was reorganized in 1816 with a capital of $35,- 000,000, the United States subscribing $7,000,000, with interest at 6 per cent., but in consequence of a general financial depression, was, the next year, in great danger of failure. Congress refusing to renew the charter, a State bank, called the United States Bank, was chartered in Pennsylvania, and eventually failing, the whole account was settled in 1856. The $28,000,000 deposited by shareholders was totally lost, while the Government realized $6,093,167 upon its investments of stock. State banks were afterward chartered in the interest of individuals and dominant political parties. BANKS IN THE UNITED STATES 411 BANKS IN THE UNITED STATES The charters were sometimes fraudulently obtained and currency issued to three times the amount of their capital, and, in 1814, 1837, and 1857, many of them suspended payment. A reform movement in bank currency was inaugurated in Massachusetts in 1825, and a "safety-fund" system, recommended by Mr. Van Buren, adopted in 1829. In 1838 the Free Bank Act passed the New York Legislature, which authorized any GROWTH OF NATIONAL BANKS BY FIVE-YEAR PERIODS [In thousands of dollars] Loans and Excess Total Reserve discounts 1 deposits held reserves $3,459,611 $2,496,751 $890,5692 $259,780 5,131,210 3,726,151 1,244,4652 334,678 5,128,882 1,605,9322 7,079,570 346,886 8,187,569 6,400,767 1,577,6662 116,955 17,467,853 12,240,718 1,264,4828 59,562 Surplus and Total undivided Circulation Capital resources profits $4,650,3551 $350,516 $200,346 $605,773 6,975,0871 583,137 770,778 411,231 9,573,9541 944,642 658,040 801,738 918,270 11,483,5291 1,060,332 1,011,482 680,879 22,444,992 1,153,752 1,340,300 3 Besides the $1,262,339,000 carried with reserve banks on Nov. 17, 1919, the member national banks held on that date cash in vaults amounting to $450,041,000 and had $2,443,599,000 due number of persons to form a banking association, subject to certain specified conditions and liabilities. On Feb. 25, 1863, the National banking system was organized, but the act establishing it was modified by that of June 3, 1864. This provided for a National Bank Bureau in the Treasury Department, whose chief officer is the Comptroller of the Currency. Under it National banks could be organized by any number of individuals, not less than five, the capital to be not less than $100,000 except in cities of a population not exceeding 6,000; in these banks could be established with a capital of not less than $50,000. In cities having a population of 50,000 the capital stock could not be less than $100,000. One-third of the capital was required to be invested in United States bonds, which were deposited in the Treasury for security, upon which notes were issued equal in amount to 90 per cent. of the current market value, but not exceeding 90 per cent. of the par value; and these notes were receivable at par in the United States for all payments to and from the Government, except for duties on imports, interest on the public debt, and in redemption of the national currency. On March 3, 1865, an act was passed by which the circulation of the State banks was taxed 10 per cent., which drove their notes out of existence. The original act authorized the issue of $300,000,000 of circulation; that of May 12, 1870, increased it to $354,000,000. The act of Jan. 14, 1875, authorized the unlimited issue of circulating notes, subject to the terms of the law, but made it the duty of the Secretary of the Treasury to retire legal tender notes to the extent of 80 per cent. of the additional circulating notes until the legal tender notes should be reduced to $300,000,000. The banks were required to pay annually 1 per cent. tax on their circulation, and 1½ per cent. on their average deposits and on their average capital not invested in United States bonds. By act passed March 3, 1883, the taxes on capital and deposits of banks, bankers and National banking associations, except such as were already due and payable, were repealed, and also the stamp tax on bank checks, drafts, orders, and vouchers after July 1, 1883. The original act of Feb. 25, 1863, limited the period of existence of the National banks to 20 years; but, on July 10, 1882, an act was passed, approved by the President July 12, which provided for the extension of the corporate existence of all National banks upon compliance with certain conditions, for 20 years. Many of the banks took advantage of the law, and reorganized under the act, though some of them under a different name. By the act of June 3, 1864, each association was entitled to an existence of 20 years from date of organization. The War Revenue Act of 1898 imposed a stamp tax of two cents on every bank check. Currency Act of 1900.- On March 14, 1900, President McKinley approved a new currency act, which, among other things, established the gold dollar as the standard unit of value, and placed at a parity with that standard all forms of money issued or coined by the United States. The bill also made a number of important changes in the regulations governing National banks. The law permitted National banks, with $25,000 capital, to be organized in places of 3,000 inhabitants or less, whereas the minimum capital previously was $50,000. It also permitted banks to issue circulation on all classes of bonds deposited up to the par value of the bonds instead of 90 per cent. of their face, as before.
Banks FEDERAL RESERVE circulation on them
Collier's New Encyclopedia (1921)
FEDERAL RESERVE circulation on them. As an alternative these bonds may be changed to 3 per cent. bonds without circulation. This provision is for the purpose of gradually retiring the note circulation secured by bond. Treasury notes made by the Government are offered as a new circulatory element. The Federal Reserve bank requiring these must place rediscounted commercial paper in the hands of a director who is designated as a Federal Reserve Agent. The circulation of these notes is guaranteed by the bank of a reserve in gold of 40 per cent. of their face value. The system is divided into three classes: Central-reserve cities, where the total reserves are required to be 18 per cent. of demand liabilities and 5 per cent. of time deposits; reserve cities, where the reserves are required to be 15 per cent. and 5 per cent.; and other banking centers where they must be 12 per cent. and 5 per cent. For two years after the law was passed the latter class was required to hold five-twelfths of its reserve in its own vaults; thereafter fourtwelfths. The remainder of the reserves of the banks in the reserve cities were to be gradually withdrawn until fivetwelfths had been so redeposited, and by the end of the third year the entire reserve must be held either in the banks' vaults or by the Federal Reserve bank. The reserves of reserve, and Central-reserve cities must be similarly readjusted until, in the former case, five-fifteenths are held in the banks' vaults, and sixfifteenths in the Federal Reserve bankin the latter case, six-eighteenths and seven-eighteenths, respectively. At the end of a period of three years the unassigned reserve shall be either in the banks' own vaults or the Federal Reserve bank. The Federal Reserve banks are not chartered primarily for profit. The capital of the Federal Reserve banks is owned by the member banks, subject to a cumulative dividend of 6 per cent. Profits in excess of this revert to the Government, with the provision that onehalf of these excess profits shall be diverted to the creation of a surplus fund for the Federal Reserve bank until the fund shall have reached 40 per cent. of the capital of that bank. Primarily the duty of the Federal Reserve banks is to act as the custodian and guardian of the bank reserves of their member banks. Next is their duty to render a service to their member banks, and through them in turn to the general public in equalizing and stabilizing interest rates. The Federal Reserve banks came into being in November, 1914, and notwithstanding that American bankers had gained through five years of discussion a better understanding of the deplorable defects in the American banking and currency system, the managers of the new Federal Reserve banks found that the welcome accorded them by the banks of the country at large was cool. This was because they did not really understand the new régime. The breaking out of the Great War was the immediate influence in their organization-requiring as it did the best banking talent and machinery in the country. The immense imports of gold from abroad following the outbreak of the war, and the general prosperity stimulated by war profits kept the system at once from proving its great value. For three years, from its formation up to our own entry into the struggle, in April, 1917, it was, however, gradually finding itself. When this great test came the Federal Reserve banks were prepared for its great responsibilities. During the first year of war the system took a high place in the confidence and esteem of both bankers and business men.
Banks FEDERAL RESERVE were to be formed
Collier's New Encyclopedia (1921)
FEDERAL RESERVE were to be formed, also controlled by the local banks which were members. This measure assigned to the National Reserve Bank-which should hold a reserve from all the banks, and rediscount the paper of the local associationsthe function of controlling the credit of the whole system and thus limiting local panics. It also has the power to issue notes on general assets to promote elasticity of the currency. It can also take up the bonds of the local banks which the government will gradually refund in 3 per cent. bonds that will find buyers in the general market. The National Monetary Commission offered a bill the year following which was essentially the same. The measure was taken up by the Special Session of Congress in 1913, and discussed in all its bearings till it was finally passed with some change on Dec. 23, 1913. Under this enactment the United States is divided for facilitating the banking inter-relations of the country into twelve districts whose headquarters are in twelve principal cities of the country inder the control of a Central Reserve Board. This board is composed of the Secretary of the Treasury (exofficio), the Comptroller of the Currency (ex-officio), and five bankers appointed for terms of ten years by the President. A Federal Advisory Council is also provided for, consisting of twelve members, one elected by each of the twelve district Reserve banks, to confer when necessary with the Board. Each district bank is governed by a directorate, three of whose members are the appointees of the Federal Reserve Board; the others appointed by the bank itself. Every National bank is required, and every State bank is permitted, under certain conditions, to subscribe to the stock of the Federal Reserve bank in its district to the extent of 6 per cent. of its own capital and surplus. In this way the paid-in capital of the twelve Federal Reserve banks at the date of our entering the war with Germany was about 56 millions; the largest bank, New York, having very close to twelve millions; the smallest, Atlanta, $2,414,000. The district banks have the power to create branches for dealing in Government and other securities, and to rediscount commercial paper for their associate members. They may also be called on by the Federal Reserve Board to rediscount paper for other Federal Reserve banks. The district banks are empowered to purchase from members Government bonds held for circulation, and take out
Banks FEDERAL RESERVE The law provides a complete system throughout the United States
Collier's New Encyclopedia (1921)
FEDERAL RESERVE The law provides a complete system throughout the United States, and for its administration by the United States courts in place of the different systems formerly in existence in the various States administered by State courts. In bankrupt bankruptcy proceedings, a debtor may turn over all his property to the court, to be administered for the benefit of his creditors, and then get a complete discharge from his debts. A bankrupt may of his own motion offer to surrender his property to the administration of the United States court and ask for his discharge in voluntary bankruptcy, or creditors may apply to the court to compel a bankrupt to turn over his property to be administered under the act for the benefit of the creditors in voluntary bankruptcy. The bankrupt who has turned over all his property and conformed to the provisions of the act, is entitled to a judgment of court discharging him from any future liability to his creditors. Provision is made in the act for allowing bankrupts to compromise or settle with their creditors by a proceeding known as composition proceedings, whereby, if a bankrupt and a majority of his creditors agree upon some basis of settlement, the same, if approved by the court, shall become binding upon all creditors.
Banks FEDERAL RESERVE
Collier's New Encyclopedia (1921)
FEDERAL RESERVE, the Federal Reserve system is primarily a result of the currency disturbances of 1907-1908 which were promptly followed by the passage of the Aldrich act providing for an emergency circulation not to exceed $500,000,000. The conditions of this bill were so strict, howeverhaving been framed just after an extreme crisis and suitable only for such an emergency-that no issue was ever undertaken under its provisions. It had stirred up legislative agitation of the subject, however, and in 1910 a commission under Senator Nelson A. Aldrich of Rhode Island, its original promulgator, set seriously to work on the whole question of banking reform. This National Monetary Commission spent three years in expert investigation of banking conditions here and in Europe. Senator Aldrich meanwhile offered in 1911 a reorganization plan the chief fea ture of which was a National Reserve Association, consisting of a central bank-whose stock should be distributed to other banks through the countrywhich should have the control through the election of a majority of the directors. Associate or local systems
Banks NATHANIEL PRENTISS, an American legislator and soldier
Collier's New Encyclopedia (1921)
NATHANIEL PRENTISS, an American legislator and soldier, born in Waltham, Mass., Jan. 30, 1816. At first a factory worker, he studied law, and became successively a member of the State and National Legislatures. He was Speaker of Congress ess in 1856, and in 1857, 1859, and 1861 was elected Governor of his native State. On the outbreak of the Civil War, he took a command in the army, at first on the Potomac, then at New Orleans, and finally on the Red River. Relieved of his command in 1864, he re-entered Congress, voting mainly with the Republican party. died in He Waltham, Sept. 1, 1894.
Banks LOUIS ALBERT, an American clergyman and writer
Collier's New Encyclopedia (1921)
LOUIS ALBERT, an American clergyman and writer, born at Corvallis, Ore., in 1855. He was educated at Philomath College and Boston University, and he entered the Methodist ministry in 1879. After several years as pastor in Kansas City he engaged in evangelistic work in 1911. In 1893 he was Prohibition candidate for governor of Massachusetts. He was the author of many books on religious subjects, including "Windows for Sermons" (1902); "The Great Portraits of the Bible" (1903); "The Religious Life of Famous Americans" (1902); "The Problems of Youth" (1909); "A Summer in Peter's Garden" (1913); "Ammunition for the Final Drive on Booze" (1917).
What Has Changed in the Last Century
Of the seven subjects gathered here, the long article on Banks in the United States is the one time has overtaken completely. Collier's counted 7,865 national banks and 21,338 state institutions in 1919 and treated bank suspensions as an old evil cured by reform; within fifteen years roughly 9,000 American banks failed, and the response was the 1933 Banking Act, which created federal deposit insurance and separated commercial from investment banking (that separation was largely repealed in 1999). Consolidation since has cut the total to fewer than 5,000 insured institutions, and the postal savings system the entry cross-references was closed in 1966. The short life of Thomas Banks, the sculptor who died in 1805, needs no correction at all: his monument to Sir Eyre Coote is still in Westminster Abbey and his Caractacus relief and colossal Achilles are still the works he is known by, though he is now most often met through the Falling Titan at the Royal Academy.
Written for this edition, 2026.