Dividends on preferred stock to preferred capital. 4.11 4.72 5.88 5.51 5.19 3.08 Dividends on preferred and common stock to preferred and common capital.. 4.61 4.85 3.67 3.43 5.70 Dividends on preferred and common stock to capital funds.. 7.40 9.67 9.11 8.80 3.35 8.97 Dividends on preferred and common stock to preferred and common capital and 4.78 4.39 4.07 Net addition to profits to common and preferred capital and surplus.. 13.21 14.36 2.70 9.05 10.77 7.78 8.22 1 Represents aggregate book value of capital stock, surplus, undivided profits, reserves for contingencies, reserves for dividends payable in common stock, and retirement fund for preferred stock. 26 months ended June 30, 1936, when first called for separately. 3 Revised to include interest on balances with other banks which was published sep- 4 Amounts paid to officers as distinguished from employees other than officers, and the 56 months ended June 30, 1936. Such profits were also called for separately in the years ended June 30, 1927 to 1932. Beginning July 1, 1932, however, and continuing until • Includes stock dividends of $2,243,000. 10 Includes stock dividends of $21,853,000. NOTE.-The number of banks, capital stock, surplus, and capital funds used in this table are as of end of period. SIZE OF NATIONAL BANKS There has been a considerable increase in the size of national banks in the continental United States in the last 20 years. On June 30, 1920, there were 8,024 national banks and at that time there were 30,000 banks in all, contrasted with 15,000 in 1939. The national banks had an aggregate of loans and investments of $17,500,000,000 in 1920. On June 30, 1939, there were 5,203 national banks with $21,000,000,000 loans and investments. The average size of national banks in 1920 was $2,200,000 of loans and investments. This had increased more than two-fold by 1939 when the average size was $5,700,000 in deposits. In 1920, 66 percent of all national banks had loans and investments of $1,000,000 or less. This ratio in 1939 was 50 percent. In 1939, 70 banks had $50,000,000 or more of deposits and 220 banks had between $10,000,000 and $50,000,000. In 1920, there were only 37 banks with loans and investments of $50,000,000 or more. The average size of the 70 banks in 1939 with deposits of $50,000,000 or more was $246,000,000. The 37 banks in 1920 of this size averaged $141,000,000. The banks with over $50,000,000 in 1939 had 56 percent of loans and investments of all national banks. This size of banks had 30 percent of the loans and investments for national banks in 1920. The classification of national banks was by size of loans and investments in 1920, and was made a good many years ago. Because of the large volume of cash funds held in 1939 it seemed better to classify on the basis of deposits in that year. It is likely that a classification on the basis of deposits in 1920 would have yielded practically the same result as that on the basis of loans and investments. The following tabulation shows the distribution by size of national banks in 1920 and 1939: Size of national banks: On the basis of loans and investments, June 30, 1920, and deposits, June 30, 1939 The Federal statute requires each national bank to obtain and submit to the Comptroller periodically reports of its affiliates as defined in section 2 (b) and (c) of the Banking Act of 1933 as amended, the latest call, there were 960 national banks with 13,240 affiliates, 27 of which were holding-company affiliates. Under the waiver of requirement for reports of affiliates it was necessary for the banks to submit and publish reports of only 695 of their affiliates. The 27 holding company affiliates controlled 188 national banks, varying in number from 1 to 47 banks. NATIONAL BANKS IN THE TRUST FIELD The development of trust activities in national banks is reflected in a substantial manner by statistics compiled for the fiscal year ended June 30, 1939, which revealed that 1,884 of these institutions held fiduciary permits, with a combined capital of $1,283,456,939, and banking assets of $28,828,243,612, representing 36.17 percent of the number, 81.95 percent of the capital, and 86.88 percent of the assets of all banks in the national banking system. Trust departments had been established by 1,534 of these banks and 136,451 individual trusts were being administered with assets aggregating $9,283,907,276. Seven hundred and ninety of these banks were also administering 16,750 corporate trusts and were acting as trustees for note and bond issues amounting to $9,768,726,724. Compared with 1938 these figures represent an increase of 796 or 0.59 percent in the number of individual trusts being administered, a reduction of $135,109,766 or 1.43 percent in the volume of individual trust assets under administration; a decrease of 359 or 2.10 percent in the number of corporate trusts with a reduction of $449,679,948 or 4.40 percent in the volume of note and bond issues outstanding under which national banks had been named to act as trustee. Segregation of the number of fiduciary accounts in national banks reveal that 70,839 or 46.24 percent. were those created under private or living trust agreements; 65,612 or 42.83 percent were trusts being administered under the jurisdiction of the court and the remaining 16,750 or 10.93 percent were trusteeships under corporate bonds or note-issue indentures. Private trust assets comprised $7,380,865,555 or 79.50 percent of the total assets under administration while the remaining $1,903,041,721 or 20.50 percent belonged to court trusts. An analysis of the $7,817,871,227 of invested trust funds belonging to private and court trusts under administration reveal that 48.44 percent were in bonds, 32.16 percent in stocks, 7.04 percent in real estate mortgages, 7.33 percent in real estate, and 5.03 percent consisting of miscellaneous assets. The development of these activities in national banks is emphasized by comparing the record in 1939 with that of 6 years earlier, 1933, which reflects an increase of 36,095 or 35.97 percent in the number of individual trusts being administered; an increase of $2,972,249,523 or 47.09 percent in the volume of individual trust assets under administration; and an increase of 5,966 or 55.32 percent in the number of corporate trusts. Gross earnings from fiduciary activities aggregated $31,685,000 for the fiscal year ended June 30, 1939, as against $33,447,000 in 1938, a reduction of $1,762,000 or 5.27 percent. Three hundred and forty-three national banks were acting as trustees under 1,493 insurance trust agreements involving $66,789,867 in proceeds from insurance policies while 704 national banks had been named to act as trustees under 15,533 insurance trust agreements not yet matured or operative supported by insurance policies with a face value aggregating $589,663,725. Two hundred and fifty-nine banks were acting as transfer agents for 3,558 accounts involving $3,386,784,612, and 365 banks were acting as registrars of stocks and bonds for 4,772 accounts involving $4,591,425,805. An analysis of the new trust accounts placed on the books of the national banks between June 30, 1938, and June 30, 1939, reveal that 237 banks were named as trustees for 797 bond and note issues aggregating $651,987,692; 837 banks were named to act as individual trustees under 5,916 agreements involving $210,072,438; 756 banks were named to act under 2,705 executorships involving $169,484,603; 546 banks were named as administrators under 1,335 appointments involving $29,390,538; 501 banks were named under 2,036 guardianships involving $9,693,975; 8 banks were named to act as assignees in 9 instances involving $1,144,878; 21 banks were named to act in 35 receiverships involving $309,160; 122 banks were named to act as committee of estates of lunatics in 273 cases involving $3,478,356; and 389 banks were named to act 5,461 times in miscellaneous fiduciary capacities other than those enumerated above involving $1,069,381,438. Sixty-three banks were named to act as registrar of stocks and bonds in 145 cases involving $743,012,504 while 54 banks were named to act as transfer agents in 146 instances involving $48,298,287. The following tables show the activities of national banks in the trust field on June 30, 1939 and June 30, 1933, and by size of bank. Detailed tables in the appendix show trust activities first, according to capital of the banks; second, according to Federal Reserve districts, and third, an analysis of the type of investments held in trust. Changes in trust activities of national banks in 6 years Distribution of banks with trust powers and number and amount of trusts by size of bank capital, June 30, 1939 NATIONAL BANK NOTES OUTSTANDING There were, as of October 31, 1939, $180,700,000 of national bank notes still outstanding. BANKS IN THE DISTRICT OF COLUMBIA In addition to the national banks in the District of Columbia, which are supervised by the Comptroller of the Currency, the Code of Law for the District places under the Comptroller's supervision, savings banks and trust companies having a banking office in the District. On June 30, 1939, there were 13 of such institutions, 5 of which were trust companies, and 8 were stock savings banks. These 13 associations and 9 national banks in the District, a total of 22, had loans and discounts aggregating $105,000,000, an increase of $6,000,000 over the year earlier. Their investments of $131,000,000 were approximately the same as the year before. Cash and balances with other banks, including reserve balances, increased by $9,000,000 to $115,000,000. Total deposits were $324,000,000, an increase of $17,000,000 in the year. The demand deposits of $213,000,000 included $175,000,000 deposits of individuals, partnerships and corporations, an increase of $9,000,000. Time deposits amounted to $111,000,000, all but $12,000,000 of which were savings deposits. Surplus, profits, and reserves accounted for $27,000,000 of the capital funds which totaled $47,000,000. Figures with respect to the asset and liability items of banks in the District of Columbia on June 30, 1939, appear in the accompanying tables: Changes in principal items of assets and liabilities of banks in the District of Columbia, year ending June 30, 1939 Loans to brokers and dealers in securities and other loans for the purpose of purchasing or carrying stocks, bonds, and other securities. 3 All other loans, including overdrafts.. +.3 60 Total loans and discounts... 105 +6 |