Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-03-29

combined reserve : percentage was
about one-half OF L per cent less. The
total accommodation on March 4
consisted of Al millions of agricultur-
a! and live stock paper, 14Nmillions
OF notes secured by United States
ponds and certificates: and about IA
millions Of business paper. OF the
collections made during the month.
more than two-thirds consisted of
business paper and collateral. notes
secured by government securities.
improvement in March.
Improvement continued during the
Two weeks of March ITO IS in which
there was a reduction in bills dis
counted or earning assets OF TX mill
lion dollars. a gain in member banks
net reserve deposits of about one mil
non, a decline in total notes outstand-
ing OF about X millions. and a gain,
IN total reserves of about IN millions.
However, the condition on March Is
was not as favorable as q year ago.
Tor money reserves were down 8 nils
lions, loans. to our district up 3 Is
millions, and member bank deposits
down Is millions. x =
Reports received from IS selected
emit banks in the larger cities on
March 4 as compared with February
4 confirm this improved credit condi-
ton because their customers paid of
3 million dollars. while net demand
deposits rose 8 millions, and payments
were made for notes r~ediscounted and
money borrowed from the Federal
Reserve bank totalling TX million
dollars.
Many Notes Retired.
Credit conditions throughout the
entire United States, as reflected in
the statement of condition of all fed
eral reserve banks combined on
March 4 as compared with February
4, AVE n~oticeably improved. The to-
tai earning assets were reduced about
80 million dollars, notes in circulation
were redeemed II retired to the ex-
tent of As millions, and total reserves
increased about so million dollars,
although member banks net reserve
deposits declined 81 million dollars.
AS a esult of the months operations,
the combined reserve percentage in
creased 1A per cen to sos per cent.
Thes favorable developments were
continued in the week ending March
IL by an increase in member bank
deposits of &c million dollars, al
though earning assets increased
more than Z million dollars. Total
reserves increased % millions. and
AioSNS iSuCSIIlCu dIO IctlYeu 10
the extent of about 81 millions.
Discount rates OF the Federal Re-
serve Bank are unchanged. March
l market rates on 4 and 6 months
commercial paper, and bank rates on
customers loans remained unchanged
at 8 per cent and tx per cent re-
spectively. A year, before such COM
mercial paper was selling at 6N per
cent and the customers rate at banks
was SIX per cent. During the month
ending March is market rates
changed slightly. There was an in
crease of Y of 1 per cent on bankers
a~cceptances. There were decreases
of Il of 1 per cent on long term COL
lateral secured paper, and on 80 to
60-day commercial paper; and of n
per cent or demand and 3 months
notes secHsed by prime collateral.
Hoards Are Larger.
Financial conditions are reflected
to a certain extent in the outstanding
volume of federal reserve notes. The
net reduction in the first four weeks
of the year was $6,379,o00 as COM
pared with a net reduction during the
same -four weeks in the preceding