The bank opens business with a paid-up capital of $2,000,000 and a surplus of $400,000. It spends $50,000 in its own bank notes for furniture and fixtures. It discounts at six per cent. for various customers $4,000,000 of 60-day notes and bills receivable, the borrowers taking one-fourth of the proceeds in cash, one-fourth in the bank's own bank notes, and leaving the balance on deposit. Customers cash checks on their accounts for $600,000 receiving two-thirds of the amount in the bank's own bank notes and the other third in coin and other kinds of "lawful money." Other customers make deposits of $900,000, of which one-third is in "lawful money," one-third in the bank's own bank notes, and one-third in the checks of other depositors in the same bank. The bank buys at par $1,200,000 of railroad bonds, paying for them in its own bank notes. It pays with its own bank notes expenses for wages, stationery and taxes to the amount of $10,000. (b) What percentage of reserve is it carrying at the end of these operations? 15. Statement of a national bank. LIABILITIES | RESOURCES $ Thousand | $ Thousand Capital, 464. | Loans and discounts, 708. Surplus, 203. | Over-drafts, .1 Undivided profits, 53. | Bonds to secure circulation Circulation, 404. | (par value) 450. Deposits, 419. | Other stocks and bonds, 163. Due banks, 29. | Due from reserve agents, 105. | Due from banks, 21. | Banking house, 32. | Current expenses and taxes, 3. | Checks and cash items, 4. | Exchange for Clear. House, 11. | Notes of other banks, 15. | Gold, 30. | Silver, .9 | Legal tenders, 9. | Redemption fund in U. S. T. 20. ------- | ------- 1,572. | 1,572. What can you learn from this statement about the kind of business which the bank is carrying on, and its power to withstand a financial storm?