The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1921-02-09
FEDERAL RESERVE BANK
UNUSUALLY CHEERFUL
Its Monthly Review Reports a
Continued Improvement Of
Credit Conditions

view iOIh, rtO. O.-OOunx III III
the statements made by Gov. Hard
ing of the Federal Reserve Boart
recently that all danger of a crisis
in financial affairs has passed ant
that the gloomy forebodings Of 9
/ year ago have given way to feel.
ing Of conservative optimism. re.
newed courage and restored conf.
dence, the Federal Reserve Bank
in its monthly review Of business
and trade conditions, declares that
the changed state Of mind which the
new year brought in has conceded
with an improvement in credit con-
ditions. 1t says:
Loans of the seventy-two men,
Der banks in New York City which
report weekly decreased between
Dec II and Jan. IA by $174,00O,-
900. or 8 per cent, and the loans
of the S29 member banks in the
principal cities throughout the
country, including New York City,
in the same period decreased $685.
600, 900, or per cent, Earning as
sets of the Federal Reserve Bank
Of New York from Dec. 20 to Jan.
81 decreased s72,000,000 and those
CT all Federal Reserve Banks, in
Guiding New York, decreased $780,
100000. The reserve percentage Of
the Federal Reserve System increas-
ed from 45.1 per cent. on Dec. %
to ASS per cent. on Jan. 81. The
Federal Reserve note circulation
decreased s290,000, 900, or about 9
per cent.
Among the New York City
banks the Movement of funds since
Jan. / has not been in accordance
with what would have been con-
sidered normal prior to the Euro
pean war. Then, after the turn Of
the year, funds usually returned to
New York City in large volume.
This January, however, just the re-
verse has been true. During Janu-
airy, up to the Gath, the principal
New York City banks have lost
nearly $500. 100000 in deposits, Of
which $60,0O0,0 900 represents with
drawals by out-of-town bank CORE
spondents. This loss of deposits
has necessitated, of course, heavy
drain of gold from this district to
other Federal Reserve Districts and
has led very recently to increased
borrowings by New York banks at
the Federal Reserve Bank.
Improved credit conditions
the country as a whole
have been reflected in the lower
rates at which the Treasury was
able to sell its certificates of in
debtedness on Jan. Is, in the re-
duction of about one-half Of ! per
cent. in the market rates for bank |
ers' acceptances and one quarter OF
/ per cent. in the rates for CONNER
cial paper, and in slightly lower
rates for call and time money based
on collateral. They have also been
in higher prices for Cow
eminent and corporate bonds. The
more confident state of the pub
lie mind, referred to by Gov. Har-
ding, has been reflected in the bet
Ter demand for many commodities
and in the steadier level Of this
banks index Of prices of twelve
basic commodities.
Conditions have been quite sim
lar in London. The reserve ratio
If the Bank of England has risen
rom 7.3 on Dec. 20 to 1887 on
Ian. 10. Note circulation has de-
lined about per cent. The rates
or money have eased fractionally
md investment securities have risen
omewhat in price,"
Indicating the increasing thrift
II the people, the Review says.
The aggregate deposits Of thirty
even of the largest savings banks
n New York State increased 10 per
ent. between Jan. 10, 1920. and
an. 10, 1921.
"The increase in deposits" it
avs. has been especially rapid in
'anks where considerable proper
ion of the depositors are manual
Particularly noteworthy
3 the large gain in the deposits Of /,
mpotant banks located in the
sections or outlying
esidential portions of the five