New-York tribune., 1920-12-26
Discounted Paper
OF Reserve System
Shows Heavy Gain
Holdings l4l.5 Millions
Larger; Treasury Certili-
Gates Decline 8.43; Net
Deposits Grow Slightly
Erom 1hc Tribnne,s Washinaton Bureau

From The Tribnne's Washington Bureau
WASHINGTON, Dec. 25.-The Fed
eral Reserve Boards weekly bank state
ment to-day, as at close of business on
Thursday, December 90, 1920. indicates
aggregate increases Of about 14l.5 mil
lions in the holdings of discounted and
purchased paper, as against a reduction
of S4.3 millions in treasury certificates.
Large amounts of tax checks and
drafts passed through the clearing
houses during the week. resulting in a
substantial decrease Of the float" car
ried by the Reserve banks. Besides,
the government made its first call for
funds deposited the week before, caus-
ing the banks to resume their borrow
ings from the Reserve banks. Net de-
posits arc given as 6.7 millions larger
than the week before. Federal Reserve
note circulation shows the usual pre-
holiday expansion, the increase for the
week being more than GO millions,
VIII cash reserves increased by 14.3
millions. AS a consequence, the re-
serve ratio shows a decline for the
week from 45.5 to 45.1 per cent.
Government Paper Gains
Reserve bank holdings Ct paper Sc
cured by government war obligations
show an increase Of 1873 millions, other
Il counted paper on hand increased by
l16.7 millions, while holdings Of accept
ances purchased in open market went
up 6.5 millions. On the other hand, the
amount of Treasury certificates held
by the Reserve banks was S4.3 millions
less than the week before. This re-
duction was due chiefly to redemption
by the government Of special certifi-
Gates held by three banks. Total earn
ing assets Of the banks stood at 3,2S1
millions, an increase of '572 millions
for the week.
. OF tho total holdings of 1,177.3 mil
lions of paper secured by government
war obligations, 674.7 millions, or 81. 3
per cent, were secured by Liberty
bonds, So5.3 millions, or 25.9 per cent,
by Victory notes, and 1913 millions,
or 16.s per cent, by Treasury certifi-
Gates, as against 81, 25.5 and 17.5 pes
cent Of q corresponding total of 1859
millions shown the week before.
Discounted paper held by the Boston,
Philadelphia and Cleveland banks in
cludes 1902 millions of paper dis
counted for five other Reserve banks
in The South and middle West, COM
pared with about III millions the week
before, while acceptance holdings of
elusive of 60 millions of bank ac-
ceptances purchased from the New
\ lork bank.
Some Deposits Decrease
All classes Of deposits show lower
totals than the week before Govern
lacnt deposits by o.. millions; mem
hcrs' Reserve deposits by ia millions.
aad other deposits, com posed largely
OF foreign governmcnt credits and Fed
cral Reserve bani: cashiers checks, by
IA 8 millions. These reductions are,
however. more than offset hy de-
crease OF C6.1 millions in the "hoat !"
which is treated as deduction from
immediately available deposits. CAL
culated net deposits, accordingly, show
an increase Of Ct millions for the
"eek. Federal Reserve note circula-
non shows an increase for the week
of GO. 6 millions, compared with an in
srease Of eS. 8 millions for the CORE
spending week in 1919.
All of the car-marl;ed gold formerly
held by the Bank Of England for ac-