The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-03-03
CONNIE RCEAL
LOANS SHOW
|, INCREASE
!. Increased Industrial and
Trade Activity Noted by
Reserve Board.
By HARRY GUsACK.

BY HARRY GUSACK.
Increased Industrial and trade
activity, and large volume Of Dor,
rowing for commercial purposes
have characterized the business
situation since the beginning Of the
Year, according to a statement
issued today by the Federal Reserve
Board.
Wholesale trade in January in
creased IL per, cent and was in
somewhat Ian r volume than q
year ago. The extent Of business
activity is also indicated by the
volume of check payments, which
since the opening Of 1924 have been
at about last years level. The fact
that wholesale. trade and check pay
ments, both of which are expressed
in dollars, are as large as in Jam
.uary, 1928, while wholesale prices
are 3 per cent lower, indicates that
sthe physical volume Of trade is
larger than year ago. Retail
trade, as shown both by sales at
department stores and mail order
houses, is also in larger volume
than at the beginning, of 1923. In
fact, the sustained demand for
goods at retail, even throughout
the recent recession in productive
activity, has been . an important
factor in the business readjustment.
Bank Credit.
.A Increase in the volume of produc.
ton and trade since the opening of
the, year has been accompanied by
q growth Of loans for commercial
purposes at member banks in lead
ing cities. The volume Of these
loans, which had declined continu-
0uSly since early in October, in
creased in the latter part of
January and during the first two
weeks Of February. In the middle
OF February these loans were about
1872 100000. or per cent above
the level of year ago. The in
crease in this class Of loans &C.
counts for the large part Of the in
crease of credit extended by these
member banks. The years growth
IN loans has been largely offset by
decline in investment holding,
with the consequence that the total
leans and investments of these
banks are only. about $127, 900, 900
larger than year ago.
Loans Increase.
For all member banks, total
loans and investments increased by
nearly 1000, 100000 during 1923
and at the close of the year were
the highest on record, $4,000, ZOO, 900
above the low point of March, 1922.
The growth in the total volume of
member bank credit during the last
nine months of 1922 was due large
ly to the increase of their invest
ment holdings, while in 1923 it
was due TO the larger volume of
loans as investments remained
practically constant. Time deposits
continued to increase during the
year and were the chief source of
funds for additional lending
At the Federal reserve banks the
seasonal return flow of currency,
which was the factor responsible
for the decline in discounts during
the early weeks of the year, ceased
to be an influence in February
The low point in discounts was
reached on February 6, when they
We're slightly below $500 ,OOO. 900
and total earning assets below $780,
100000. For the following three
weeks an increase of over SIS ,O0O,-
900 in earning assets occurred.
During February there was an in
creased demand for currency which,
however, was not reflected in an
increase lin the outstanding volume
of Federal reserve notes, as it was
met largely by the payment of gold
certificates into circulation. Net
gold imports in January totaled
$4,000, 900. the largest imports,
with. a single exception, for any
month in the past two years.
Federal.American Survey.
Business barometers, as presented
in the Federal-American Survey for
March, indicate that despite the
political turmoil, business considered
in general has developed favorahly
during the past month.
While the Survey sees marked
contrasts in the indicators OF the
economic situation; it states that
building activity, industrial output
and wholesale and retail trade have
been entirely satisfactory with near
s1y every line, showing Improvement
over the preceding months.
/ Among the unfavorable factors
have been the sharp collapse in the
stock market, and the further de.
cline OF the French franc and other
foreign exchange. The uneasiness
of the stock market has been great
~ increased, by the political scan.
dals, says the report.