Evening star., 1922-05-14
ONE HUNDRED PER CENT GAIN
! IN BANK DEPOSITS SINCE 1916
Accumulation Likely to Start With
August-Less Retail Borrowing.
More Mortgage Loans
ny I. A. FLEMING.


=, ny L. A. FLEMING.
Money continues to accumulate IN
banks locally and throughout the
west, east and central northern
states. With the current month the
payment U. real, personal and in
tangible taxes will cut a big hole IN
deposits, yet the resumption OF the
steady Increase is likely to get under
way Immediately with coming of
June, and a year hence further
great gain in the total will probably
be shown.
Actual deposits of local institutions
as Of May 5, the date of the latest call
of the controller of the currency FOR
q statement of condition, were $1SS.-
O84,061. 1t would not be fair to leave
out the $5.sos.6sS deposits OF the Mer-
chants Bank and Trust company
simply because the Du Pont National
and the Merchants Bank are out OF
existence; indeed, comparison was
made some days ago..
An interesting feature of the COM
pilation of deposits, as made by A. +.
Savage. is found in the fact that. re-
ports cover deposits of forty-nine IN
stitutions reporting the largest record
and eleven more than reported March
Z, 1916, and still there's more to fol-
low
The total deposits on the latter date
were $90.536,64O. distributed as fol-
lows: National banks, S43,765,728, as
compared with Ss5.544.92O May OF
this year; savings banks. $l2,S65.-
5s3. as compared with s26,36S.739 May
8, and the trust companies. $33,905,32S,
as compared with S67,170.S66.
It will be observed that the three
groups of banks have maintained
their relative positions; that each has
gained over 100 per cent in the six
ing a larger percentage gain than
either of the other groups.
Perhaps a Permanent Change.
Any banker will tell you that the
borrowings of merchants are much
lighter than usual; that they are not
what they used to be at this season
Of the year. and the evidence also in
dicates that this condition is not
pertinent to this city alone.
1t is possible that the great retail
world has acquired a new method of
doing business; possible that here
after the new method of maintaining
a fair stock and keeping it up to par
with filling-in orders may be the rule,
and not the exception.
Many mercantile concerns have
been a long time reducing their last
great merchandise accumulation. just
as Corporations the country over nave
been engaged in reducing their in
ventories for the last three years,
when the great 1919-1920 era of 900
per cent prosperity passed out glim-
mering through the medium of the
buyers strike and the great deflation
movement
If merchants are able to supply the
demands of the public and to keep
stocks fresh from manufacturers and
jobhers, through more frequent or
dering. they have developed a valu-
able factor in modern merchandising,
reducing their carrying charges
lessening their insurance. taking
smaller losses on sales, saving space
and cutting down their interest ac-
count materially-butt they will also
reduce the demand for money and
make bankers seek for part of their
interest return elsewhere.
= Happening Right Now.
That is just what is happening
right now. And the gamers will be
the real estate and building interests
OF the more conservative class-litter-
ally of the investment class. rather
than OF the speculative operators
looking and holding for fancy prices.
A year ago mortgage money was
obtainable only at high rates. Au-
thentic Information regarding loans
Is not always available. Eight per
cent, the highest legal rate in the
ers, but the unknown part of it was
the plus commission" 1t has been
reported that as. high as per cent
additional has been paid. Then
per cent and commission became
the ruling rate. then 61a plus and on
the very highest grade frst-mortgage
loans during the last week some
money has loaned at per cent, some
with plus and some without
Outside insurance companies and
some of the larger trust companies
elsewhere are believed to be placing
p6rted was one of s3,20O, 900, Chicago
Money.
VIII Affect Reserve Earnings.
This movement, taking retailers
to some extent out Of the field as
borrowers. will also reduce the earn
ing power of the federal reserve
banks-that if it is a real movement
and one that will grow and con-
tinue.
Borrowings of merchants form a
part of commercial paper that may be
discounted by reserve banks.
The volume of the commercial sup
ply paper comes from the great job
bing and manufacturing concerns but
the retail merchants share will be
missed.
The lessened demand for manufac-
tured products, plus the dropping off
in the retail trade are. to a very great
extent, responsible for the very high
reserves now carried by the federal
reserve banks-money for which they
have no inquiry.
Bankers Convention.
All indications point to a record
convention when the District Bank
ers Association meets at Hot Springs,