Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-04-15
.RED|sCOUNT RATE HERE
IS REDUCED THIRD time
Cut to d II Per Gent An.
nounced by Federal Reserve
Bank of Richmond.
CONDITIONS pETrER. sEAy SAYS
Figure Is Now Effective in Nine of
the Dtstricts-Imprc>sion Ix There
VIII He No Further RcndJust-
ments of Rate.

| -
The third reduction in rediscount
rates at the Federal Reserve Bank Of
Richmond since November 3. when
| the rate was per cent was an
| nounced yesterday following n meet
| ing of the board OF directors OF the
institution. For several months past,
| the rediscount rate has been D pcr
cent and yesterday per cent was
| clipped OF. making the ratio on all
classes OF paper. 4 1-2 per cent.
| Governor George j. Seay issued the
following statement following the
| meeting ~ the directors:
Barking commercial and agricul-
tural conditions in the district have
| been gradually improving, and Il IS
| hoped and believed by most men In
these lines that conditions will con-
tnue to improve. The banks have
liQuidated considerable portion OF
their Indebtedness TO the Federal re-
serve bank and the result has been
rise in tho reserve position OF the
Federal reserve bank from the lowest
point. around 40 per cent to approx
imately co per cent. The Federal Re-
serve bank of Richmond. in the mean
time. having paid Off all OF the
money borrowed from other Federal
reserve banks
The reserve position Of the Rich
mond bank. however, is still next to
the lowest In the Federal reserve sys-
TEN. The reserve OF the Kansas City
bank has recently declined to n point
or two below that OF Richmond. al
though IT has recently been running
considerably higher.
Three OF the reserve banks are
still maintaining 5 per cent rate
on all classes of paper-Minneapol
Kansas City and Dallas. The Atlanta
bank reduced its rate from 5 per cent
70 4 l-2 per cent several weeks ago.
The liquidation in the Atlanta dis
trict of money borrowed from the re-
serve bank has proceeded much fur
Their than in this district. and the re-
serve percentage OF tho Atlanta bank
is now about IS per cent.
This Is the season Of the year,
when, under usual circumstances. de-
mands on the Federal Reserve Bank
of Richmond for agricultural pur-
poses increase, and heretofore. these
demands have usually attained their
maXimums in May or jane. Part of
the liquidation Of loans made 10 mem
Der banks by the Federal Reserve
Bank OF Richmond has been brought
about by the, sale of Liberty bonds.
and since all issues of these bonds
are now selling at about par, /, Is
not improbable that further loans
against the bonds may be paid of
BY sale OF the bonds
Three Districts in ; Per Cent Class
WASHINGTON. April l4.-Eeduc-
ton ot the rediscount rate by the
Federal reserve bank AZ Richmond
makes the 1-2 per cent rate et-
fective in nine Of the Federal re-
serre districts. The per cent rate
remains in efTec; IN the Dallas. Min
neapo.!s and Kansas City districts.
whether further rediscount rate ad-
:cstUsHts IN these three districts was
- bA expected ~ss no, indicated. but
- Impression was gained that there
1-oeae!y VIII De no further redis-
,c-1. -5.4 Rad !ustEan.s unless con-
-i:iocs 4. some o. the Eastern dis
--tcrE z1ould warrant per cent
rae