New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-01-10
Reserve Banks Hold
40 Millions More of
Government Bonds
Sales to Establish Losses
for Tax Returns Reflect
ed; Further Liquidation
of Treasury Certificates

Psva ne Tvsb.~e's washtnosos Bu-eos
WASHINGTON. Jan. 9.--The Federal
Reserve Board statement on the condi-
lion. Of member banks In leading cities,
given out by the board at the close Of
he week ending yesterday. says:
Return dow Of currency. end Of
wear dividend payments by the banks
and building up Of balances TO meet In
crest and dividend checks issued by
industrial and commercial corporations
account for the principal changes IN
:he condition of December 81 Of $50
member banks in leading cities. The
number Of reporting banks shows a
slight decrease, due ~ bank consolida-
ions in Cleveland and New Orleans.
large amounts of currency, after serv-
:ng the needs of the holiday trade, were
returned to the banks during the week
and. after being credited to the Gus
<omers' deposit accounts, were used by
members to reduce their Indebtedness
20 the Federal Reserve banks.
"Com bined holdings of Liberty bonds
and Victory notes show further in
crease of 1876 millions. apparently in
connection with sales by holders to es-
sablish losses for income tax purposes.
s&iC
.hese securities since December be-
ing in excess of forty millions. On the
other hand, holdings of Treasury GER
.idcates due to additiona, distribution
among ultimate investors show a fur
+her liquidation Of 80 millions, the
end-of-year holdings being SIS millions
below the total reported at the begin
aing of the year.
Change in Loan Accounts
Loans secured by government war
week of 10 millions; loans supported
by corporate securities went up Al
millions, and other loans and invest
nents composed largely of CONNER
:ial loans and discounts) 10 millions.
For the member banks in New York
City, an increase of Is millions in Lib
srty bonds and Victory notes and re-
incticn of IS millions in Treasury GER
sificates are shown; loans at these
banks supported by government secu
rites increased during the week by 10
millions, loans secured by corporate
securities by As millions, while other
loans and investments declined by
about 8 mill ons.
''Total loans and investments. in con-
sequence Of TIE above changes, show
An increase for the week of "a millions
or all reporting institutions and of 81
Millions for the member banks in New
York City. The ratio of United States
var obI;gat ons and paper secured by
such obligations to total loans and in
vestments of all reporting banks.
.argely because of the great reduction
IN holdings of certificates and of war
loan paper, shows a reduction for the
year from 1871 to 12.1 per cent the cor
responding reduction for the New York
City banks being from 20.4 to 15.4 per
cent.
"Accommodat; of reporting mem
Der banks at the Federal Reserve banks
shows a reduction for the week from
2,176 to 2,1O3 millions, or from 10 to
1875 per cent of the Banks total loans
and Investments. The increasing ex-
tent to which the loan burden of the
member banks has been shifted during
the year to the Federal Reserve banks
is ev denced by the fact that since the
beginning Of tie year, when aggregate