The Bismarck tribune., 1921-01-31

in the case Of calves was there a
\Qoticeable decrease in average weight
as compared with year ago and as
compared with the ten-year average.
Stocks of frozen meats exhibited a
substantial decline in December in
the. case-of beef and an excess in the
case Of pork. IN
Banking Developments in December
A comparison OF the December 80
statement OF condition Of the Ninth
Federal Reserve bank with that of
December 3 indicates that the total
accommodation required by member
banks in this district declined seven
and one.half million dollars or more
than 16 per cent Of the amount on
the earlier date. This bank reduced
it's borrowings from other federal re-
serve banks during the same period
10Y SO, 100000. 1t was able to do this
by reducing the total gold and lawful
money reserves in the sum Of $4,000
900, although it was necessary to re-
deem our note issues to the extent of
S$2,UJO,0OO during the month. Member
banks increased sthoir reserve depOs-
its with US 81, 100000 and Of their
PAPER purchased from other federal
reserve banks. $1,6OO,O0O was taken
into our own assets. The combined
reserve percentage declined betweeif
the two dates from 42.S to 1913 per
cent. AS compared with Janauy 2,
1920, or about year ago, the total
accommodation to this district exAib.
tied an increase Of $14,400, 900, and
our rediscounts with other federal re-.
serve banks on DECEMBER 30 were
~$14, 100000. whereas year ago there
Reports received from thirty eight
selected member banks In the larger
cities in this district on December
81, as compared with December 3 In.
dicated a decrease in the total &C
commodation to their customers OF
more than $4,000, 600, all Of which
was used to purchase; Tediscoltnts
that had BEEN placed with the Fed
cral} Reserve bank. However, these
member banks borrowed between these
two dates, more than $1,000, 900 from
the Federal Reserve bank on their
own collateral secured notes This
was necessary, as they experienced a.
decline in demand deposits Of $7,OoO,-
OyO, although there was "a gain in
government deposits Of $S,OOO, ,OO0.>
Their reserves at the Federal Re
serve bank were built up during the
month to the extent of $4,000, 900.
Net Borrowing.
lnasmuch as the net borrowing OF
these banks in the larger cities from
the Federal Reserve bank declined
eleven and ,one-third millions, and as
the total accommodation extended by
the Federal Reserve bank during the
same period decreased by seven and
one half millions, as shown above, 1t
follows that the banks located in the
country districts reeefveg an addi-
tional accommodation during the
month to the extent Of nearly $4,VOO,-
OO0 Other evidence Of this tendency
will be found in the classification OF
our paper held by the Federal ne.
serve bank at the close OF business
December 80 as compared with De-
J cember 8. Between these dates there
was reduction of nearly twelve mill
| ion dollars in holdings Of commercial
and business papeh and reduction
of nearly one and one-half millions
! in loans secured by certificates Of in
! debtedness, while these were IN
ereases Of two and one-founh mill
ions. in livestock paper, one-fourth OF
million in agricultural paper, two
and one-half millions in notes secured
! by Liberty loan bonds and more than
million in notes secured by Victory
notes. 1t appears that the city Gus
| toners are reducing inventories, tax
ing los1ss and reducing their borrow
/! ings, whereas agricultural dlstrlcts
tsare being carried for increasing
!! aQlounts.
! The discount rates of the Federal
! Reserve bank remained unchanged
! during December. Rates in the open
| market changed slightly. There were
| increases from one-fourth to one-half
per cent in long-term paper, whether
secured by cattle, warehoused goods