East Oregonian : E.O. (Pendleton, OR) 1888-current, 1915-10-19
northwest BANKS
HAVE MADE SMALL
USE OF PRIVILEGES
DESPITE CROP MOVING PERIOD
REDISCOUNT PLAN NOT
MADE USE OF.
Report OF Federal Reserve Bank
Shows Little Money Was Needed
During August-FIVe out Of SO
in Oregon Used New Credit.

PORTLAND, ore, oct. 1s.-How
few banks Of the Pacific Northwest
at the present time have need Of the
rediscounting privileges Of the feder-
al reserve bank at San Francisco is
shown In the detailed report of the
federal reserve board for october /.
or the SO member banks in ore
gon in August only rive took advan-
tage Of their ability to rediscount OF
the rs in Washington but six redis-
counted during the month. This is
but 73 per cent OF the member banks
In the three states On August y
oregon had rediscounts to the value
of s57,SOO; Washington. 29OOG. Ida.
no. t33, 100; a total or $ll9,900 for
the three states, or nine-tenths OF l
per cent OF the total rediscOunts OF
all the member banks OF the United
States.
Notes for Large Amounts.
The Twelfth district bank iE Au-
gust rediscounted 22s notes to the
value of $44S,3O0, which is Just 2.5
per cent OF the total notes redis-
counted by the entire system and 81
per cent OF the amount, Only 43 out
of the 536 banks in the district. or SO
per cent, rediscounted during the
same month. The twelfth district
bank howver, led in one respect. OF
its redlscounts 1876 per cent were for
more than $4,000 each. which per.
centage is higher in this respect thar
for any other district for this denom-
ination Of note.
The twelfth district bank at San
Francisco on August 27 held redis-
counts valued at s1,462,400, or per
cent Of the total rediscounts held by
all Of the member banks OF the coun-
try. This volume was reduced on
September 27 to S1,255,OOO however
showing that the demands on the
member banks for funds for domes-
tic purposes had not increased
The volume Of bank acceptances
held by the San Francisco bank on
September q totaled s605, 900, and
has been growing week by week dur
ing the month. These are notes held
by the banks which represent a defi-
mite transfer Of goods from seller to
buyer or a trade transaction secured
by warehouse receipts. 1t il the
taking Of this class of paper by the
banks that the federal reserve board
is endeavoring to foster ana for
which the board has from time to
time made special discount rates
Rediscounts Are smaller
The total amount or commercial
paper rediscounted by all the feder-
al reserve banks in August was si2,.
233, 700, which was $1.OO4.5O0 lsss
than In July and s1,170,3O0 less than
In July and S1,70,3OO less than in
June Early in the summer, in re-
sponse to the appeal made by the
federal reserve board and following
the example of a great many of the
larger banks of the country. consid-
cradle paper was rediscounted with
the federal reserve banks in order
that they might get acquainted with
the rediscounting system. There has
been no natural growth in the vol
ume Of this business, indicating that
the banks are not in need OF this
service to any great extent at the
present time. The greater volume OF
rediscounts, anyway, are held BY the
southern banks. OF the 1910 banks
belonging to the system only $40 or
81 per cent, banks rediscounted IN
August.
OF the total volume Sl15662 OCr
federal reserve notes in circulation
600, an increase of $7500OO in the
the San Francisco bank held S2,626.
four weeks from August q.