The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-01-08
RESERVE BANKS
GAINED IN 1917
Comparison With Figures NJ End of
1919 Show " hat system Has Done
10 Aid War Preparations
CONCENTRATE GOLD SUPPLY
Banks Hold $685., 300 900 More
Thnn Year AgO---Ecar Loans
80 Allies $500 900 ,O0e

Washington Jan. Principal
Development curing the last year in
the federal reserve banking system
are indicated to some extent in the
boards weekly statement issued to-
day showing The comparative figures
OF the condition NJ the be AXIS at ,ythe
close OF business on the last Friday
n 1915 and 1917,
Entrance OF the United States into
the war In April. 1871. and the estab-
Ishmeut or fiscal agent relations be-
tR cen the reserve banks ana the gov
aruiueat have altered considerably the
character Of the banks transactions
h5 shifting the buiE OF their busip ess
from he he.d Of commercial credit to
tlAt of 20 eminent finance. Besides
assisting tho government in the dota-
tion ~ the two liberty loans, the re-
serve banks handled all the Issues "
treasury certificate. OF Indebtedness.
amounting 10 over 81 600 100000.
Advances 20 the allied governments,
effected largely through the New York
bank amount 10 ever $500. 900 zoe.
Hhiea Wah concentf.a ed at the New
Trra bank largely through the gold
set, ament fund held with the board
by the reserve banks. The effect OF
LE eae operations Is seen partly in tho
large Increase during the year OF the
banks earning asssts.
over $4,000. goo Of the iotal gain
Hf &g42, 900 600 In earning assets rep
resents an increase IN discounted pa
per held hy the reserve banks About
- per cent Of the entire Increase in
discounts IL represented by war loan
paper. T. e. member banks collateral
~ - rs
treasury certificates or indebtedne ss
and cuHiumers' paper similarly secured
and radisCounted by member banks
The Increase from slt,200.900 to
SOS. 500 900 ia the amounts Of United
States short term securities Is due
largely TO the holdings OF over $4,000.
600 Of treasury certificates Of indebt-
etiness among the present assets OF
the banks. Little change Is shown In
The totals OF United States bonds held,
the reserve b0rks carrying but few
liberty bonds among their investments.
AcceptAuces on hand have more
than doubled, the increase being
especially large IN December. Hold
ings OF city and state warrants, which
at he end OF 9l6 stood at nearly So
eco ooe, have declined to about s1,-
000, 900. OF the total earning assets
discounts constitute AT present 81 per
cent as against 15a at the end of
I 1916, acceptances, 24.9 per cent. as
against 57.4 per cent; United States
securities. 10 per cent. as against
( GAS per cent, and warrants OIL per
cent az against ~ per cent
/ Successful operation OF the banks
was firthered by the enactment on
June p OF the amendments 20 the
federal reserve act. which provided
among other things, for transfer by
Nom bers OF all legal reserve to the
Federal Reserve banks, and permit
ted the issuance OF federal reserve
notes against gold, thus making pos.
sihle considerable concentration Of
the monetary stock OF gold at the
reserve banks.
The large gains IN gold reserves
St59t60 600 since June %. and 1894.
900 0Go since December 20. 1915 are
: due In Part to the payment OF reserves
/ by newly admitted state banks anc
trust companies tia3 In number since
June 92l. All the banks report Target
( gold reserves than q year ago, though
/ the relative gains of the several banki
are by no means equal. Thus the New
! York bank REPORTS a gain OF s3ss. 600.
G0o. while its proportion In the aRgre
gate gold reserves declined from so:
/ to 3s.s per cent.
/ Chicago's gain Of gold during th'
! year wAs si57,so0.oo0. while its shar
I IN the aggregate gold reserves shows
4 rise from SO To t2.7 per cent Othe
/ banks which Increased their RELATIVE
shares In the systems gold reserves arr
/ Phiiads ,rhia, from 81 10 10 per cent
I Cleveland from 50 to ~ per cent ant
San Frsnetaeo. from 40 TO 50 per cent
{ Earh Of the other banks shows Rol'
reserves below S per cent Of the tota
held nV the sV stem