Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-26
NORTHWESTERN News


Yards were slightly larger than in De-
cember, but about fOur-ifths Of the
movement a year ago.. A decrease in
the receipts of cattle, and an increase
in the receipts of calves, both al COM
pared with last month anda yea ago.
are of outstanding Importance. The to-.
tai shipments in January when meas
ured in carloads were % per cen less
than a month ago and IA per cent less
than a year ago.
Banking Developments in. January.
Credit conditions in the Ninth Fed
eral Reserve District appear to have
improved during January, according
to the, Federal Reserve Bank state
ment@of condition of February 4 as.
compared with the statement of De-,
cembers 80, 1920. Between these dates
II million dollars was collected from
member banks, enabling US to repay
~rediscounts with other Federal Re-
serve banks to the extent Of IS mil
lion dollars. Federal Reserve notes re-
turned to this bank and redeemed to-
tailed ~ million dollars. To some ex-
tent this improvement in credit con-
ditions' was local rather than general.
49, aOAy Ia OoIINS OOlIO"cu
from their correspondents in other
Federal Reserve districts or sold or
collected maturing paper of outside
borrowers. | !
On February 4, the total acconmo-
dation given this district by the Fed
,eral Reserve bank exceeded that Of n
year ago by more than 8 million dol
lars: and total cash reserves were II
million dollars less. Meanwhile men,
Der bank reserve deposits with us were
reduced about 10 million dollars and
note issues more than 9 million dol
lars. The total accommodation on Feb
ruary 4 was $80,84o,099, Of which
more than A. millions consisted of ag-
ricultural and live stock paper, 20
millions of notes ecure by United
States bonds and certificates. and
about 16 millions of business p
Reports. received from 80 selected
member banks in the larger cities, or
February 4 as compared with Decem.
Der 81 indicate improved credit con-
! ditions because their customers paid
off 81 million dollars. Of which these
banks used II millions to reduce thei,
loans with the Federal Reserve bank
Declines of two million dollars each
, were experienced in demand and ii
time deposits. A small part of this i'm
provement was secured by a more
prompt transfer of ~unassorted curren.
cy and silver from member banl
vaults to the Federal Reserve bank.
The general banking situation in thu
northwest and the relations of Twi,
City banks with heir country CORE
spondents was made the subject of :
special investigation on January ~
1921. Reports from sixteen member
banks located in Minneapolis and St
Paul. when combined, show that tota
deposits declined more than rs mil
lion dollars in one year, while loan;
were reduced only to the extent of /:
million dollars. When the transaction;
with country correspondent bank
were segregated, it appeared that tn
! country banks had reduced their tota
roWlngs to the extent OF more than s.
million dollars in excess of a year ag,
on the same date. These sixteen Twill
City banks had loaned their countr,
customers on January 81, 1921, owe
IS millions and at the sanle time ha,
borrowed from the Federal Reserv,
bank but 38h millions. When a com
parison is made with a similar specia
investigation on October 20, 1920, i
appears that the sixteen Twin Cit,
banks reduced their loans to countr,
bankers during the intervening thre
months to the extent of three million
dollars, while, they reduced their re
discounts with the. Federal Reserv
bank during the same time SO million
dollars, 1t, is important in this connec
ton to direct attention to the fact tina
the Federal Reserve bank during tn
same period expanded its loans t.
country banks.
Discount rates of the Federal Re
serve bank remained unchanged, an
the rates on commercial paper an,
i. customers loans at banks RENAME,
unchanged at s per cent and tx pc
cent respectively. A year ago boil
commercial ape and customers
rate at banks was 6 per cent. Rate
charged by member banks on loans t
other banks increased one-half pc
cent and rates for bankers acceptanc
es increased from one-quarter to one
half per cent.
/ Credit conditions throughout the en-
tire United States. as reflected in tn
statements of condition of the lively
Federal Reserve banks combined o
Z, have noticeably improved. The tota
earning assets were reduced 81 pc
cent. Note circulation was reduced
per cent n the total reserves in
creased more tina 2 per cent. Howev
, er. some of this improvement in re
serves Is doubtless due to the fact tina
there has been some shifting Of gol
from the hands of the public an
other banks to the Federal Reserv
; banks in exchange for new paper mon
) ey which cannot be otherwise obtain
ed.
Banking Conditions on February Fl.
Country merchants have been niue
, more successful in collecting fror
their customers than have the coun
try bankers. Wholesalers have bee
able to collect their accounts n re
duce their debts to city banks, where
as the country bankers have not &C
complished very much in the same di
r%ection. The total loans of this ban.
! in the first three weeks of Februar
were reduced from 70 millions to Z
millions. This is to be accounted 70