Evening star., 1922-08-11
RESERVE RATIO IS
UP TO 90 OPERCENT
lanston Strong-LocaI Sc
curities Quiet-Gov. Hard
ing Retires.
BY 1. A. FLEMING.

The ratio of reserve to deposit and
combined regional federal reserve
banks is now S04 pr cent. the high
point Of the year. indicating that the
banks are not making large use Of
their earning assets-or that the
earning assets are not earning as
they should be.
A year ago the banks in the re-
serve system were making money
from the employment of 1881, $4,000
or earning assets. Today they have
but $l.O2O,679.000 employed. At that
time the reserve ration was 65 per
cent and they had bills on hand for
$1.571 1910 as against but $52S, ,164.-
900 at this time.
In a word the demand for money
is not sufficiently active to make the
banks do rediscounting and ask re-
serve aid.
There is small profit in carrying so
per cent reserves. 1t is also evident
that the reserve banks are in SPLEEN
dId shape for crop moving.
Ihen, too. the War Finance Cor
poration mas announced that it has
tentatively approved the application
OF Mississippi cotton growers for
100000 for the orderly movement
The corporation also announces
that it has tentatively approved the
application of the Washington Wheat
Growers Association for 100000
to the association Of Idaho, 81, 500, 600; ;
of Montana. Sl,500.o0o. and to the
North Dakota association, $1,000. 900.
Advances of sl04.00o.O00 have been
made this year to cooperative mar
ketinG associations.
LanstOn, SOL,
Lanston crossed so on the local
stock market today. selling to S0l<
and closing very firm.
There was very little doing in the
general list, either of stocks or bonds.
SO many people are out Of town,
brokers. bankers and investors. that
the market is simply dragging its
weary way through August. but
holding with more or less tenacity
and no pressure to sell stock or bonds
in any quantities.
Railway common sold to the extent
of nifty shares, all in ten-share lots,
at 81. except one at 57a. The pre-
ferred was nominal.
Capital Traction 5s brought 9sA
and Gas Js "a.
Gov. Harding RetIres.
Failure on the part of President
Harding TO reappoint Gov. Harding
as head Of the Federal Reserve Board
has resulted in a vacancy in that
important office.
There has been quite a struggle be-
tween the east and near-weSt. on one
side, and the south and far west, on
the other, over the reappoitnment.
the former advocating the naming
Of Gov. Harding as his own success
sor. The opposition has been strong,
but the reported friendship Of Secre-
tary Mellon was supposed to be more
than enough to balance the scale in
favor OF reappointment.
Vice Gov. Platt. who was appointed
to serve from July % to August 10.
or unt1 further instructions, Is hold
ing the Office.
The federal reserve act makes no
provision for vice governor to sue
ceed the governor and it is possible
that complication may arise.
Some interests look for purely po-
litical appointment, although it Is
understood that Secretary Mellon is
opposed to such action
One persons guess is as good as
another's in this matter D. R. Girls
singer has been suggested. but if the
appointment is dictated by ABILITY
and Gov. Harding is not reappointed;
Gov. Strong of the New York Federal
Reserve Bank may be named.
July Clearinss Barometer.
The credit clearing house of New
/ ork clty mas tniS 10 say Oh pusiHeSs
during July:
In all sections except in the east,
Winch has been held back by the coal
strike there has been increased pur-
chasing as compared with July. 1921.
In three sections Pacific coast. north
ern and middle agricultural sections.
the business has been better than in
1917
In the country, as whole. there
has been slight. but significant. re-
duction in debt. which is contributed
by the thickly populated middle and
southern agricultural sections. while
in more sparsely settled sections in
debtedness is higher than before. Still
indebtedness is higher than Ave years
ago and higher than last year.
1T is. therefore. clear that purchas-
ing is going ahead in an active way.
but that the handicap OF the long
period of depression begun by the
buyers strike two years ago still
shows itself in excess Indebtedness"