New-York tribune., 1920-12-27
u. S. Deposits in
Banks Increased
By Tax Payments
Federal Reserve Reports for
Week Show Gain of 12O
Millions in the Holdings
of Treasury Certificates
S~os~ rns 7-tou~e,s wosns.o.o~ sureos

Ivo%~ fAe 7-tbu~e's Woshinoto~ Bureoe
WASHINGTON, Dec. 26.-Tax pay
, ments due on December Is and the
series Of government operations con.
neeted with the redemption and Issue
OF tax certificates were mainly re-
sponsible for the changes In the bank
ing condition indicated by December
II reports to the Federal Reserve
Board OF 824 member banks In leading
cities. About 400 millions Of govern
ment funds are shown on deposit with
reporting member banks, An increase of
383 millions for the week, which enabled
the member banks to reduce by 1l2
millions their borrowings from the
Reserve banks, notwithstanding the
largo increase in the reporting banks'
loans and investments.
Holdings Of United States bonds
and Victory notes show an increase OF
5.4 millions, while those Of Treasury
certificates went up about 1870 millions
at all reporting banks and 90.5 millions
at the New York City member banks.
Loans secured by government war OBJ
legations increased by 7.5 millions,
loans supported by corporate securi-
ties by 36.4 millions, and other loans
and investments. composed largely of
commercial loans and discounts, by
52.5 millions. For the New York City
banks a slight decrease in loans Sc
cured by government war obligations,
as against 25.S million increase in
loans supported by corporate securi-
ties and &C million increase in other
loans and investments, are shown.
Total loans and investments Of all re-
porting institutions are shown 2217 7
millions larger than on the preceding
Friday. the corresponding increase for
the New York City banks being 1922 6
millions.
Accommod odatioa OF reporting banks
at the Federal Reserve banks shows q
reduction for the week from 2,l44.l to
2,032 millions. or from 1879 to l2l per
cent Of the banks total loans and in
banks reduction in accommodation
at the local Reserve bank from S22. g to
1928 millions is shown. reducing the
ratio of accommodate from about Is
to 1874 per cent
1t may be worth while noting that
the large increase Of 1927 millions in
government deposits representing to a
large extent the proceeds of income
and excess profits taxes-is consider
ably larger than the corresponding in
creases shown for the earlier three
Fridays Of the present year following
the quarterly tax instalments The
New York City banks report CORE
spending increase Of 1908 millions FOX
the week, which. is likewise larger than
the gains shown on Fridays following
! The previous quarterly tax dates Other
demand deposits (net) show reduc-
ton Of 5l.l millions, while time de-
posts Eel! off 1913 millions. In New
York City net demand deposits in
creased by 21.8 millions, while time
deposits fell off 11.8 millions.
Reserve balances. in keeping with
the large reductions in member banks
borrowing from the Reserve banks, show
a decline of 3l.S millions, while cash
in vault shows ar increase for the
week Of about millions. For the New
York City banks decreases Of Al
millions in reserve balances and Of 2.7
millions in cash are noted.