Evening star., 1921-12-27
RESERVE BANKS
CLEAN THE SLATE
End Borrowing Between
Banks-Sign of Betterment
Where Sadly Needed.
BY I. A. FLEMING.


the Dallas Regional Reserve Bank Of
the last 81 100000 of money borrowed
from other reserve banks the slate
between the twelve regional banks
is clear for the first time in 1921. On
December 90, 1920. all the cotton an6
grain banks were heavy borrowers for
a total of s120,194.000.
The wiping out of this large debt has
been made possible by the gradual
thawing out of credits extended that
seem TO be badly frozen but which
have gradually melted under the slow
but steady improvements and urgent
efforts of the banking officials
1t means that conditions are better
in the section of the country where
the damage was most serious, in the
agricultural and live stock districts
Moreover the change in the reserve
banks during, the past week have in
Varlably indicated improvement in
the heretofore borrowing banks,
While some of the strongest institu-
deiphia losing 4.3 points. Chicago 81
points and Boston 81 points.
The lending banks of the system
during the year were Philadelphia.
Boston and Cleveland. with Cleveland
the largest creditor bank That Boston
credits freely is in itself an evidence Of
the siowness of business year ago and
at later date in the great industrial
sections OF the cities named.
Cleveland, the largest lender. is in
the center of the great steel making
tire making, and brick industries
which were very dull at the close of
1920 and have been improving more
or less slowly since then.
Evidence of this recovery is seen
he. a nF
duction in the reserves Of the Cleve-
land Reserve Bank.
Light Trading in Locals.
Trading in local securities was de-
cidedly light today. as might be ex-
pected. with many out of the city
and others awaiting their checks from
investments before making new pur-
chases.
While sales were not numerous,
prices were decidedly firm, especially
on stocks which seemed to be favor
ed. Gas. at so, and Railway COM
mon, at 81, were both strncg. Bid of
63 for the preferred railway shares
brought counter proposition to sell
at 65.
Washington Gas 5s sold at 30 and
Potomac consolidated IS also at 90. The
bid on the per cent general mortgage
IS was l041a, with none offered under
l05.
Personal Mention.
F. w. Stone, vice president of the
National Savings and Trust COMPANY.
is spending the holidays with his
mother at his old home, Mount Yer
non, y. Y.
Hopeful for 1922.
BUSINESS. according to the theories
advanced by Wall street and by many
leading bankers, will be much bette.
in 1922 than it was in 1921 Thes
claims for 1922 have been advanced
quite freely of late.
There is a world of wisdom in the
remarks of the National Bank of Com
merce of New York on this subject:
conditions in the United States To-
day indicate that the year 1922 as
whole Will be more satisfactory f'
business than the year just ended. OF
forecast is that profits will depen
more on economy of operation thh"
on expansion of volume. With th.
many favorable factors now OPERA
ing. business men should not fear -
! make plans for the new year, but tht
should plan with care and conserva-
tism. and with constant effort toward
reduction of costs. Financial in
been made in reduction of excess
stocks of manufactured goods. Ac-
cumulatIons of raw materials havn
been reduced. The rate of productiog
in the major industries has show!
little change during the closing weeks
of the year. Losses in some lines
! have been offset by gains in others
the net result being that the gains
over the low level of the earlier
months of 1921 have been held.
The last twelve months have wit
messed great progress toward stable
| financial conditions in business Com
bined gold reserves of the twelve
federal reserve banks have increased
! by more than 40 per cent. while dis
counts for member banks have
dropped Sc per cent. and federal re-
serve notes in actual circulation
have declined IS per cent The fed
eral reserve system once more proves
to be system designed to care for
increases and decreases in the vol
ume of credit, with the requisite
elasticity to do this easily. The bet
terment in the position of member
banks, while not SO striking, is
nevertheless satisfactory.
Notwithstanding the consistent
/ improvement in financial conditions,
recovery in manufacture and trade
has been slow. Unemployment in the
chief countries shows little decline
from the high point reached early in
| the year. and it may well reach new
figures during January and Febru-
ary, when normally there is an in
crease in the number of those out of
! work in North America and Europe.
Manufactured goods continue to
move slowly and uncertainty into
| the channels of consumption"
Big Gain From Loss.
The New York Central reports for No
vember, gross, decrease. $6.941 1858; net
operating income, increase, S4,009, ,906.
Eleven months. gross decrease, s44,-
753 SIS: net increase, SAL, 1856, 791.
Evidently maintenance and equipment
| suffered.