Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-06-05
RESERVE BANK MAKES
THIRD ANNUAL REPORT
After Paving q Per Cent Dividend,
Undivided Profits Aggrc-
gate S232,043.
HALF GOES TO GOVERNMENT
Paid as Franchise Tax Under Fed
cral Reserve Act, and Other Half
Is Carried Forward to Surplus
Account.

After making liberal charges for
various items, paying dividends to
member banks in full al 6 per cent
to December 81. and laying aside 4
reserve for depreciation, there re-
manned undivided profits OF the Federal
Reserve Bank OF Richmond aggrcGat-
lag s232.243. according TO the third
annual report OF the reserve institu-
ton. which has just been made public.
one-half of these earnings-sllG.i1l-
was paid 20 the government as a fran
chisc tax under tho provisions OF the
reserve act, and the other half car
ricd forward to the surplus account.
The annual report shows 4 large in
crease in expenses. but gross earn
inrs for the year increased from s3l2,-
600 TO $4,000. productive assets from
!lQ,500.000 to S46,no0,o00 and net earn
;nEs from $4,000 to 100000 De-
posts of member banks increa Scd
from s25.0oo.Oo0 TO si5.ooo,00o due
partly to change in the law effect
ing the reserve requirement and partly
to tho expansion of deposits of mem
bcrs- This increase. together with the
growth in loans and bills purchased
from s7.ooJ,ooo to si2,oO0.o0o, are strik-
ing illustrators of the growth %.
wealth and volume OF business in the
district according TO the report
SUMMARY OF CONDITIONS
IN FIFTH DISTRICT
The report concludes with the fol-
lowing summary OF conditions in the
Fifth District:
The activities Of the government in
tho district at Charleston. w. Va. Nor
folk. Cape Henry. and the adjacent
waters in Virginia and army and avia-
tion camps at different points. have
become an active factor and element ir
the development OF the district. The
expenditure OF vast sums in connec-
tion with these developments has slim
ulated the demand for material and
labor. The maintenance OF them in the
future will pu; In circulation in the
district large sums for labor and sup
plies.
parties in this district desiring farr,
loans should apply TO the Federal Land
Bank TT Baltimore II located in Nir.
gina. West Virginia. Maryland. and
the District or Columbia and TO the
Federal Land Bank at Columbia IL 20
Gated in South Carolina ard North
Carolina.
There has been but one small and
unimportant member bank failure in
the district during the year.
IL is noted that some OF our packing
houses maintaining large distributing
plants throughout the country, includ-
ing this district, are arranging lines
OF "-sdit with our member banks pred
Gated apparently upon balances car
ricd with these member banks This
indicates 4 desire 10 finance in the dis
trict the approximate volume q. their
business therein. The pursuit Of this
method viii distribute their financing
more evenly throughout the country
instead of its being concentrated at
the location OF their main Office and we
regard II as healthy sign.
Earnings and expenses for thu wear
have been satisfactory, as indicated by
? payment 10 the government OF over
llh.oco-one half of our undivided
profits TO date. This result was reached
through the extension OF liberal ac-
con'modat!on TO our member banks AT
minimum prevailing rates. A moderat.
proportion Of our loans TO member
banks have no doubt been due 10 gov
eminent financing. and the amount OF
THIS VIII no doubt he maintained and
probably increased as other loans ar.
issued. Even in the event. however
OF peace and the curtailmcnt or elirni
nation OF further government financing.
we anticipate that the normal business
activities OF the district will max. n
demand on us for loans which will
maintain our earning power on SAT-
isfactory basis
The developments in the district Inv.
heen highly satisfactory and tho gen
era! ontl2oE. is favorable"