The Washington herald., 1922-02-03
RESERVE BANKING
STRENGTH GROWS
DURING JANUARY
Federal Board Reports
Financial Improvement
During Month.
TRADE UNCHANGED
Credit Conditions Strained in
Southern Areas Account of
Garry Over" Paper.
TRADE UNCHANGED

Financially, the month Of jan
uary has shown growth Ia the re-
serve strength of Federal Reserve
and member banks. according to
review of general business and
financial conditions by the Federal
Reserve Board. Commercial demand
for credit has tended downward.
while market quotations for money
have eascd. A lower rate on bank
kers' acceptances has become gen.
erai. Foreign exchange quotations
ahve fiuctuated within a consider
ably narrower range than during
December. Export figures still
show tendencies toward a small vol
ume Of business
Production and trade show no
striking departures from conditions
prevailing during the previous
month. At this season, IL is pointed
out, there usually occurs a period
OF slackening in various lines of
manufacture and this has been true
during the past month. Such recess
sion as there has been does nov.
however. go beyond the proportions
to be expected at this time of the
year. In a number Of lines pro-
ductive activity has been unusually
well sustained. The already pro-
nounced tendency toward stabiliza-
ton of prices has continued. the
Federal Reserve Boards price index
for December shows Production of
only two points compared with a
month earlier, while the United
States Bureau OF Labor statistics
shows on change in its index.
Crop Conditions.
But little change in crop cono,-
tions can be expected during the
winter season. Prices of staple
farm products have, on the whole,
about held their own with fair ex-
port demand The interest in the
agricultural situation now centers
season Some anxiety is expressed
with reference to credit conditions
in various parts of the West ana
South. due to the fact that banks
In those regions already hold con-
siderable amounts or paper repre-
senting the Garry over from last
year. Combined bank figures show
continued liquidation and recession
In the loan account. but this has
been far more pronounced In urban
and manufacturing sections than In
the agricultural districts. In gen
eral. liquidation. although still pro-
ceeding, has been retarded.
A slight increase in unemployment
Is attributable largely to seasonal
recession and indicates no impor-
tant changes in the general demand
for labor. Building operations have
been unusually well maintained,
especially for this season of the
~
ported for the corresponding month
a year ago.
Union Transfer Earnings.
The Union Transfer Company's
Washington branch was operated at
a net income of s2S.s51.5o. exclusive
OF any depreciation or income ana
excess profits tax. during the past
year. according to report of condi-
ton filed with the Public Utilities
Commission yesterday.
The local division. during the De-
riod. reported a steady gain month
by month with the single exception
OF February, when a deficit of
s51e.27 was reported.
washinkton Exchange.
Trading in local securities con-
.' tinued dull and embarrassing yes
terday, a tendency 20 decline being
shown Capital Traction sold off to
$40. Railway preferred to 66, with
Washington Gas Light stock re-
naming pegged at 49ik.
The bond list held strong, Poto-
mac Electric consol. SIS selling at 81,
and a small lot of Washington Gas
TVS sold at 1861.
Mutual Life Reports Gains.
Despite the universal business de-
preston. the Mutual Life Insurance
Company Of New York, reported a
prosperous year for 1921.
Tho new insurance paid for to-
tailed S343,750.Ss3. and the company's
outstanding insurance on December
81 aggregated s2.472,S51.77o. Pay
ments to policyholders in 1921 were
.ss5.23s,23s and receipts from policy
holders were sso.3os.sss. The COM
psny is purely mutual and has no
stockholders.
The assets on December 81. 1921,
were ssT7.505,4s5, the liabilities
s64s,453,s12, and the surplus or con-
tinuancy reserve was S2S,O51,5S7.
The increase in the surplus was
s4,sss.o44.
Next Forum Dinner.
The next forum dinner of the
Washington Chapter, American In
stitute of Banking, will be held
February . at Sis p. m, the place
Of meeting not vet decided, accord
ing to Francis G. Addison. jr., vice
president of the Security Savings
and Commercial Bank. The subject
to be discussed will be the new
income tax law as it affects the in
dividual.