The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1921-02-04

Der and ninety-two per cent of that
held a year ago. AS compared with
month ago. the stocks of corn exhibit
a phenomenal increase, ana the stocks
of rye a decrease of twenty-five per
cent. Wheat stocks on December 81.
totaled 9.355.760 bushels which was prac-
tically the same as a month ago but 10
Live stock Receipts
Receipts in December for all kinds Of
live stock in South st. Paul stockyards
were about one-half of those in Novem-
Der. AS compared with a year ago, the
total December receipts of all live stock
were less than three-fourths' and ship
ments less than two-thirds. Cattle re-
ceipts were less than one-half OF the
movement in December a year ago.
Stocks of frozen meats exhibited a
substantial decline in December in the
case Of beef and an excess in the case
of pork.
Banking Developments In December
A comparison of the December so
statement of condition OF the Ninth
Federal Reserve Bank with that of Dec
ember 3 indicates that the total accom-
mediation required by member banks lin
this district declined 71e million dollars
or more than Is per cent of the amount
on the earlier date. This bank reduced
Its borrowings from other federal re-
serve banks during the same period by
SO. 200, 900. 1t was able to do this by
reducing the total gold and lawful mon
ey reserves IN the sum OF Sf,UU',UUU, al
though 1t was necessary to redeem our
note issues to the extent of 10000 600
during the month. Member banks in
creased their reserve deposits with us
from other federal reserve banks.
81, 900. 900 was taken into our own as
sets. The combined reserve percentage
declined between the two dates, from
January 2, 1920. or about a year ago.
the total accommodation to this district
exhibited an increase OF $144O0. 600: and
our rediscounts with other federal re-
serve banks on December 80 were $14.-
100000. whereas year ago there were
none.
Reports received from thirty eight Sc
lected member banks in the larger cities
in this district on December 81 as COM
pared with December indicated de-
crease in the total accommodation to
oOO all of which was used to repurchase
rediscounts that had been placed with
the federal reserve bank. However.
these member banks borrowed between
from the federal reserve bank on their
own collateral secured notes. This was
necessary as they experienced decline
IN demand deposits Of 100000, al,
deposits of s3000.oO0. Their reserves at
the federal reserve bank were built nm
during the month to the extent of 81
Inasmuch as the net borrowings of
these banks in the larger cities from
the federal reserve bank declined 11h
millions, and as the total accommoda-
tion extended by the federal reserve
by 7fa millions. as shown above, it fol-
lows that the banks located in the
lcountry districts received additional ac-
extent of nearly $4,000, 900: Other evil
dence of this tendency will be found in
the classification of paper held by the
federal reserve bank at the close OF
hue rnI will
December 8. Between these dates there
was a reduction of nearly twelve mill
lion dollars in holdings of commercial
and Sd paper lar and ct
secured by certificates Of Indebtedness
while these were increases of two and
one quarter millions in live stock paper
one quarter Of million In agricultural
paper, two and one half millions in
notes secured by liberty loan bonds, and
more than a million in notes secured by
victory notes. 1t appears that the city
taking losses and reducing. their borrow
ings. whereas agricultural districts are
being carried for increasing amounts.
A statement of condition of the twelve
Federal Reserve Banks combined shows
that there was a decrease between Dec
ember 3. 1920. and January 1921. in the
total earning assets of 221 million dol
lars owing to a reduction of ia mil
lions OF bills discounted. reduction Of
Sc millions in notes secured by govern
ment collateral. and reductions in &C
ceptances bought and securities held.
There was a decrease in Federal Re
serve Notes outstanding of forty-two
millions which precisely equals the re-
duction during the preceding month
Member banks reserve deposits, how
ever, increased thirty-two, millions and
the total reserves were increased seven
ty-eight millions. The combined reserve
percentage improved 2.3 per cent be-
tween these dates. AS compared with
January 9. 1920. the total earning as
sets on January 7. 1921. exhibited an
increase of LAG million dollars, the notes
an increase of 80 millions. and the
gold and lawful money reserves an In
crease of ITS millions. The combined
reserve percentage on January Z. 1921.
was 46.4 per cent as compared with 45.4
per cent on January 9. 1920.
Banking Conditions On January a..
Our total net accommodation to this
district was reduced between December
80 and January 81 by more than eleven
million dollars. which enabled us to re-
duce our rediscounts about nine millions
to other federal reserve banks. but leav-
ing us with about six millions more OF
such rediscounts than one year ago. Fed
eral reserve notes declined. owing to the
trade and business readjustment pre-
vailing. to the amount Of more than
five millions.