The Birmingham age-herald., 1921-11-03
FEDERAL RESERVE
 RED|SCOUNT RATE
 HERE IS REDUCED
Rates of Atlanta Bank Cut 0ne- Half of One Per Cent Making Rate Now Five
 0ne-HaIf Per Cent
By Associated Press

Washington, November 2.-Reduc- tions of one per cent in rediscount rates of federal reserve banks at Chi csgo, Kansas City. and St. Louis and enc half of one per cent at re- serve banks at New York, Philadel- phia, Richmond, Atlanta, and San Francisco were announced today by the federal reserve board.
 Rediscount rates of the banks at Boston, Cleveland, Minneapolis, and Dallas have not been cnanged, as the heads of those banks have not as yet held meeting on the subject. Nrhe rates in force at the other banks which have not been changed as yet are: 5 per cent Boston, 5h per cent Cleveland and per cent Min neapolis and Dallas.
 The reductions were accomplished through applications made by the va rious banks and the directors of the Boston. Cleveland, Minneapolis and Dallas banks are expected soon to file such applications.
 Condition of the reserves of the banks and the general situation in the money market were said to be responsible for the reductions.
 Banks whose rates were lowered to Az per cent, were said to have re- serves of per cent and those whose rates were cut to , per cent nave re- serves of from 50 to 75 per cent: banks with rate of 5h per cent. 1t was said still have to rediscount with one another in order to maintain the lawful reserve of 40 per cent.
 Success of the treasury In floating it's new issues of 4A and 1 1z per cent certificatesa for which more than $500, GOO, 900 was subscribed to com bined offering of about s2oo,ooo,ooo wae indicated to have acted as feeler for the federal reserve banks In determining conditions in the money markets with respect to the proper levels for rediscount rates.
 New rates at the eight banks mak- ing reductions are as follows: Four and one-half per cent. New York and Philadelphia; five per cent, Chicago, St. Louis, Kansas City and San Fran cisco, and 5h per cent Richmond and Atlanta.
 The rates in force at the other banks which have not been changed as yet are: five per cent Boston; five and one-half per cent Cleveland and six per cent Minneapolis and Dallas. REDUCTION MADE AS
 AID TO BUSINESS
 Atlanta, November 2-The reduc- tion announced today by the Atlanta Federal Reserve bank on all classes of paper from 6 to 5h per cent was made in order to improve and assist business and agricultural interests in this district, according to state ment tonight by M. B. Wellborn, gov enor of the sixth district bank
 The period of marketing crops Is not nearly finished. and it is our de- sire to accommodate the farmers in disposing of their products" Mir Wellborn stated. We feel that we have taken an important step in this direction. through making a reduc- tion in our rates. The cost of orderly marketing has been lessened.
 Tt should be borne in mind that the reserve ratio of the federal re- serve banks, as whole, Is higher than it has been in many months Through this condition we have been able to make our reduction the statement concluded.
 Reductions In rates of one per cent were simultaneously announced by the federal reserve banks at Chicago. St. Louis. Kansas City, and decreases of ne-half of one per cent by the New York. Philadelphia, Richmond and San Francisco institutions.