New-York tribune., 1921-01-02

tober Is, and at the end of the year
stood at 3.263 millions, an increase OF
more than S0,0O0000 for the year
Downward Tendency in Deposits
Net deposits at the Reserve banks
show general downward tendency for
the year. the December 30 total of
l,oO42 millions being 1904 millions be-
low the maximum amount shown for
February 81 and 1869 millions below
the CORE spending total at the begin
ming of the year, decreases in reserve
and net deposits rehecting reductions
in demand deposits Of member bank :,
especially during the latter part of the
year
Federal Reserve note circulation, af-
ter the usual contraction at the begin
ming Of the year when return flow
of notes issued during the holiday sea-
son occurs, shows an almost uninter-
amount OF 2,S44 millions on January %
to a maximum Of 3,4oA.9 millions on
December %. The total of 3,3447 mil
lions on December 80 marks a reduc-
tion of 60.2 millions for the week, but
an expansion of 345.7 millions from the
beginning Of January, note expansion
rather than growth of deposits accom-
panying the increase in the borrowings
/ member ms. f era It's Z
bank note circulation shows practi-
cally steady decline from 259 millions
on January 2 to III millions on May
ii, but since thai date an increase to
Z17 millions on December 80 is noted.
Lose Gold Through Export
During the early part of the year the
Federal Reserve banks lost gold, large
ly through export TO South America
and to the Orient, and on March 26
total gold holdings were 1885 millions,
from January 2. Since that time, part
" as the result of gold shipments from
England in anticipation of the ma
turity of the Anglo-French bonds on
October Is, there has been an increase
in gold reserves. the total of 2,059 3
millions on December 30 being only
3,3 millions below the total shown on
January 2. During the latter part of
the year all the gold held with for
eign agencies except 3.3 millions held
b. the Bank Of France for Federal Re-
serve bank account was returned to
this country. Since the gold held
abroad was counted as part Of the
banks reserves, its transfer from
abroad has had no effect on the Re
serve ratio. Total cash reserves show
an increase of 1919 millions. or from
2,l2l.3 millions on January to 2,2l9. 2
millions on Decem Der 80, the larger
part OF the increase being due to de-
posit of silver by the United Sta .es
Treasury.
Interbank discounting showed a con-
siderable increase about The end Of
April. when nearly $l50000 600 of re-
discounted bills Were carried by the
Boston, New York and Cleveland banks
for seven other Reserve banks After
a slight recession these operations
cary in August, and on October 80 the
Boston, Philadelphia and Cleveland
banks reported maximum for the
year of over $2470 600 600 of bills held
under discount for eight other Reserve
banks. At the close of the year total
discounts of the above three banks in
cluded $115.3000 of paper discounted
for five other Reserve banks in the
South and Middle West.
Paid-in Capital Increases
During the year the paid-in capital
of the Federal Reserve banks increased
from S87 400 600 to 500 800, 900, or by
$12,100,000, cores sponding to an in
crease OF over = III 0OO 900 IN capital
and surplus of member banks This
gain is due primarily to increases in
capitalization Of existing member
banks and to a smaller extent 20 ac-
cesslons OF new members.
The reserve ratio of the Federal Re
serve banks, RS consequence of the
changes detailed above. is higher at
The end Of the year than at its begin
ming, the percentage being Asa on De-
cember 80. compared with 437 on Jan
uary 2. The ratio was brought up to
44.5 per cent on J ne 1S. and to ass
per cent, the maximum for the year
on December II. the Fridays following
two of the quarterly income tax dates