Evening star., 1922-02-21
FEDERAL RESERVE
: BOARDS SHOWING
Eighth Report for 1921 Re-
veaIs Material Re-
ducti0n.

that during 1921 there was material
posits Of member banks. especially
in financial and manufacturing CEN
ters. and this was reflected in a de-
crease in the amount Of reserves re-
Quired to be carried with the fed
eral reserve banks, and. conse-
quently, in the amount Of member
bank borrowings.
Much the greater part of the de-
crease In member bank borrowings,
however. which shows gradual but
continuous decline from $685.. 100000
at the end of 1920 to about $1,144,-
to the reduction of over $900.00o,O00
in the volume of federal reserve
notes in circulation, caused by lower
price levels and by net imports OF
1867, 100000 of gold. practically all
Of which found it's way into the
federal reserve banks.
This decline in the volume Of re-
discounts which federal reserve banks
have been called upon to make for
member banks, together with the sue
cessive reductions in discount rates,
resulted in a decrease in gross earn
ings during the last half of the year,
when the gross earnings aggregated
$46, 900, as compared with $7s.-
$4,000 for the first half of 1921. and
S99.520.000 for the last six months OF
1920.
Slightly over SO per cent Of the
gross earnings for 1921, as against
SO per cent for 1920, came from paper
discounted for member banks. Daily
average of discounted paper held ag-
gregated s1,sO4, 100000 in 1921. as
Although the discounts for member
banks during 1921 were much smaller
in 1920, the number of bills and notes
discounted increased by about 200.
900, or from approximately 1,0O0,OO0
pieces in 1920 to about 1,250,0O0 in
1921.
Dallas Surplus Still Short.
The Federal Reserve Bank of Dali
las is now the only reserve bank
whose net earnings have not yet been
sufficient to enable it to accumulate
a surplus equal to it's subscribed cap
ital. All other federal reserve banks
have accumulated surplus funds in
excess Of their subscribed capital.
Out of their net earnings during
1921, after the payment of dividends.
the federal reserve banks transferred
$9.329, 900 to their normal surplus
accounts. $6.664.000 to their super
surplus" accounts, and paid $5S,s74.-
900 to the United States Treasury as
q franchise tax.
The feeling in local financial circles
that there may be some way to avert
the financial rocks for which the Co
1umbia Graphophone Company ap-
pears to have been headed was in
tensified yesterday by a sharp rise in
its two stocks, its common stock get
ting above 2 and it's preferred stock
advancing more than a point to 1OA.
The time for filing affidavits in the
ton, Del, has been extended until to-
day. About 60 per cent Of the COM
pany's per cent notes have been de-
posted under the agreement between
the committee and the noteholders,
which the committee feels is very
good showing, considering the man
ner in which the notes were scattered
among the holders. If the receiver
ship be forced. according to banking
interests concerned, only few cents
i. company's stockholders through it's
liquidation. but it was added that if
it be allowed to continue operating
without court Interference, there Is
a strong possibility that favorable
readjustment plan can be worked out
Quick Sale of W.. b. & A. Bonds.
Quick sale was made of the addi-
first mortgage bonds of the Wash
Electric Railroad Company. which
were offered yesterday by a selling
group of bankers. So many applica-
tions were made for the bonds that
the books were closed Immediately
after their opening.
According to preliminary estimates.
the Chesapeake and Ohio Railway
Company will show a surplus of $5,-
2Gs, 900 for last year, which is equiv
alent to a little more than per cent
on its stock.
This surplus is the lowest in five
years, except that of 1918. but is bet
ter than the average OF the hve nor
NAL years between 1910 and 1915.
Its surplus in 1920 was equivalent
to about 91s per cent on its shares.
Gross operating revenues were $685.
$4,000, a decrease of about per
cent as compared with 1920; operat-
ing expenses were reduced heavily
resulting in net operating income OF
20 per cent greater than in the pre-
expenses was 79 per cent last year, as
against Sc per cent in 1920.
Banks Closed Tomorrow.
Due to tomorrow being Washing
toms birthday anniversary. a legal
holiday in the District of Columbia,
all banks and exchanges will be
closed the entire day.
Personal.
Nathan B. Scott, chairman of the
board of directors of the Continental
Trust Company, is taking an extend
ed winter vacation in southern Cali
fornia.
Carl Robertson Kurtz of Stround,
kurtz & Co., will leave for Florida
the latter part of the week for
short vacation.