New-York tribune., 1921-02-07
Loans by Banks
H7 Millions Less
Since October Is
Decreases i'm Investments
and Combined Deposits
Shown for Last Week i'm
Reserve Board Statement

BHTSCG
| WASHINGTON, Feb. 6.--Aggregate
reduction of 142 millions in loans and
| Investments, accompanied by COM
inensurate decreases in combined in
| diyidual and bank deposits, are indi-
| Gated in the Federal Reserve Boards
| consolidated statement Of condition on
January % of 829 member banks in
| leading cities.
| All classes of loans and discounts
show substantial reductions for the
week: Loans secured by United
States government obligations, by
about II millions; loans secured by
corporate obligations, by 90 millions,
and other (largely commercially loans
ard discounts by 40 millions. The to-
tai reduction for all classes of loans
and discounts was 95 millions, of which
o2 millions represents the reduction at
the New York City banks. Holdings of
United States bonds and Victory
aotes show decline of millions and
those of Treasury certificates, because
OF sales to ultimate investors and pur-
chases by the government, a decrease
of 34 millions.
For the New York City banks CORE
spending decreases of 2 millions in
notes and of 13 millions in certificates
are noted. Investments in corporate
securities, show reduction of s mill
lions for all reporting banks and of
. millions for the member banks in
New York City. The latter report
decline of 72 millions in total loans
and investments, or more than one
half OF the reduction shown under this
head for all reporting banks.
Accommodation Is Reduced
Accommodation of all reporting
banks at the Reserve banks shows a
reduction for the week from 1884 TO
1908 millions, or from f18 to lit per
cent of the banks total loans and in
vestments. For the New York City
| banks, mainly because of the large
Withdrawals of bank balances by coun-
try correspondents, borrowings from
the local Federal Reserve Bark show
an increase from 794 to 826 millions,
or from 14.6 to 1873 per cent, of the
total loans and investments of these
banks.
Since October 10, when maximum
| total of 1924 millions was reached,
loans and investments of reporting
banks declined by 9S7 millions, while
Reserve banks was reduced by 341 mil
| lions. For the same period member
banks in New York City show a re-
duction of 453 millions in loans and
discounts, as against decline of only
% millions in their accommodation at
the local Reserve bank
Government Deposits Decrease
Government deposits of all report
ing banks show q decrease for the
week of Ga millions, net demand de-
posits declined by about 112 millions,
while time deposits show a nominal
increase. For the New York City
banks an aggregate decrease of 9S
millions in net demand deposits is
shown, caused largely by the reduc-
tion of balances due to outside banks,
while government deposits at the New
York banks were "a millions less and
time deposits about Is millions less
than on the previous Friday
In keeping with the large decreases
in their demand deposits, the report
ing banks show aggregate reductions
of % millions in their reserve bal
ances, the corresponding reduction for
the New York City banks being about
12 millions. Cash in vault shows
further decline of more than mil
lions, largely outside of New York
City, the total of 337 millions being
only slightly in excess of per cent
of the net demand deposits of the re-
porting banks.