Loans and discounts $739,743.27 Overdrafts, secured 973.08 U. S. bonds deposited to secure circulation 100,000.00 U. S. bonds pledged to secure U. S. deposits 1,000.00 Bonds other than U. S. bonds pledged to secure postal savings deposits 7,000.00 Other Securities 191,098.05 Stock of Federal Reserve bank 4,800.00 Banking House 30,000.00 Furniture and Fixtures 5,000.00 Due from Federal Reserve Bank 20,000.00 Due from approved reserve agents 89,919.25 Due from other banks 12,074.23 Checks on banks in same city 6,051.46 Outside checks and other cash items 13,171.83 Fractional currency, nickels, and cents 283.14 Notes of other national banks 1,295.00 Coin and certificates 38,604.05 Legal-tender notes 25,000.00 Redemption fund 3,500.00 ------------- $1,289,513.36 _Liabilities_ Capital stock paid in $100,000.00 Surplus fund 60,000.00 Undivided profits 40,877.46 Less current expenses, interest, and taxes paid 17,110.28 23,767.18 Circulating Notes Out-standing 98,500.00 Individual deposits subject to check 404,871.37 Certificates of deposit due in less than 30 days 596,335.82 Certified Checks 125.00 United States deposits 1,000.00 Postal savings deposits 4,913.99 ------------- $1,289,513.36 [33]~The Method and Extent of Credit Issue.--~Assume that a bank with a cash capital of $100,000 is opening for business in an isolated town and is the only bank in that town. How much can it lend? Ordinarily a bank lends by discounting a customer's note and by giving the customer a deposit credit upon its books for the proceeds of the note.... If, now, our bank in question lends $100,000, giving deposit credit for this sum, it has $100,000 of cash on hand against $100,000 of cash liability. Its statement will stand as follows: _Resources_ Cash $100,000 Notes 100,000 -------- $200,000 _Liabilities_ Capital Stock $100,000 Deposits 100,000 -------- $200,000 Now let it lend another $100,000. With its loans and deposits each standing at $200,000 its reserves are 50 per cent. of its demand liability. Only with $666,666 of loans will its reserves have reached ... [a] 15 per cent. limit: _Resources_ Cash $100,000 Notes (Loans and Discounts) 666,666 -------- $766,666 _Liabilities_