Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-01-04
Federal ReSerUe Bank
Issues StQtement on
Operations Of the Year

the year. On the other hand, holdings
| of other discounted paper which at
the opening of the year totaled 1863
millions show an almost steady
| growth, being in excess of 1900 mil
! lions at the end of September, and
| fluctuating between about 1900 and
1000 millions during the last three
| months of the year.
cat the end of the year, out of a
| total of 2,719.1 millions of discount
| ed bills about AZ per cent was COM
posed of paper secured by United
per cent Of a total of 2,231.2 mil
| lions held on the first Friday of the
year.
EARLY in t.! year the federal re-
serve banks raised their discount
rates en- commercial paper, but the
| influence of the higher rats is seen
in retarding the progress of borrow
| ings rather than in restricting them
In fact, total federal reserve bank
holdings of discounted bills, 2,231.2
millions at the beginning of the year,
increased by over 300 100000 millions
up to the end of April, and by an
other 200,000,000 millions during the
next four months. The peak of g.
1858 millions was reached on No
Vember 5, while the total held on De-
cember 80, 2,719.1 millions, is 1879
millions larger than at the beginning
| of the year.
Holdings of bills purchased in
open market show an almost uninter
rupted decline for the period under
review. From a total of 574.6 mil
decline to 255.7 millions on Decem-
Der 80 is shown, the decrease of 1883
millions being due largely to the in
| creased demand for this class of bills
by savings banks, trust companies,
also corporate and individual invest
Annrnpi9h1Q
shown in the amounts and classes
lof United States bonds held.
Fluctuations in the holdings of
treasury certificates during the year
are largely the result of the issu-
f an fi by the from time
pending collection of funds from de-
positary institutions. The largest
figures are shown for the four Fri
days following the quarterly income
to the, government by the reserve
banks for the redemption of tax GER
tificates were at their maximum. To-
tai earning assets of the federal
reserve banks, which stood at 3,181.S
millions on January 2, reached the
tober Is, and at the end of the year
stood at 1893 millions, an increase
of over 80 millions for the year.
met deposits of the reserve banks
show a general downward tendency
for the year. the December go total
lions below the maximum amount
shown, for February 81, and 1863
millions below the corresponding to-
tai at the beginning of the year,
it's rejecting reductions in demand
deposits of member banks, especial
ly during the latter part of the year.
Federal reserve note circulation,
after the usual contraction at the
beginning of the year, when a re-
holiday season occurs, shows an al
most uninterrupted expansion from
the minimum amount of $2,844, 0OO,-
900 on January % to a maximum of
3,409, 100000 on December %. The
total Of $3.344,700,000 on December
80 marks a reduction of s6O,2OO,OOO
for the week, but an expansion of
$345, 100000 from the beginning of
January, note expansion rather than
growth of deposits accompanying
the increase in the borrowings of
member banks. Federal reserve bank
note circulation shows a practically
steady decline from $259,000,000 on
January to SIT, 100000 on May IA,
but since that date an increase to
$2170OO,OO0 on December 80 is
noted.
During the early part of the year
the federal reserve banks lost gold,
largely through export to South
America and to the Orient, and on
March 20 total gold holdings were
$1,935, 100000, marking a reduction
of $128,OO0,OO0 from January 2.
Since that time, partly as the re-
suit of gold shipments from Eng
land in anticipation of the maturity
of the Anglo-French bonds on Octo-
Der Is, there has been an increase in
gold reserves, the total Of $685.
100000 on December 80. being only
100000 below the total shown on
January 2. During the latter part
of THE year all the gold held with
foreign agencies, except 100000
held by the Bank of France for fed
eral reserve bank account, was re-
turned to this country. Since the
gold held abroad was counted as
part of the banks reserves. it's trans
fer from abroad has had no effect
on the reserve ratio. Total cash re-
serves show an increase of $127,-
100000, or from $2,121,300,000 on
January 2 to $2,249, 100000 on De-
cember 80. the largest part Of the
increase being due to deposits of
silver by the United States treasury.
"1nter-bank discounts showed a