The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-10-09
Make T|NG 0 /
CROPS FELT
BY BANKS
Federal Reserve Bulletin
Gives Causes Of Demand
for Credit
BY RICHARD HATTON

81 Recent increases In the 00manu
Tor credit and currency, both at
member banks and at the Federal
reserve banks, reflect primarily the
larger financial requirements at.
this time Of year arising from mar
keting, OF the crops, says the Fed
eral Reserve Bulletin made public
today.
borrowing for commercial and
agricultural purposes began to in
crease this year month earlier
the earlier marketing Of this years
crops, and between the end Of July
and the middle OF september total
borrowing Of this character In
creastnl considerably more than dur
ing the same period Of last year.
Seasonal growth In the demand for
currency to- pay for harvesting Of
crops and to meet the somewhat
larger pay rolls Of factory workers
has been the principal factor ac-
counting for the larger borrowing
by member banks at the reserve
banks during the past two months.
Demands upon the banks general
" increase ais the crop-moving sea-
son advances. and although the
larger part OF this years crop has
not yet left the farm, marketing Of
crops is now under way and at q
higher average Of prices than q
year ago, and banking develop
ments during the past two months
reflect the growing demand Tor
credit to finance this movement
OF crops.
.The volume Of agricultural
marlxetings since early in 1925 has
been smaller than last year, -
brought out BY the chart, synisAi
shows for all farm products the
course Of nnarketings from year 70
year since 1922 and the seasonal
tendency OF this volume to increase
greatly from the middle OF the year
until late III the autumn. The IN
crease since midsummer Of this
year reflects primarily tn move
nient Of cotton, Of which cetpts
at leading markets III Augtlst and
early September were greater than
at the same time In any other
recent year and exceeded those for
the same period last year BY nearly
500 900 bales. This early movement
OF cotton has been principally due
to the fact that dry weather
brought about early maturing Of
the crop. which resulted in GIN
nirlgs Of ATT, 900 bales to the mid
die OF September, so per cent
larger than ginnings up to this
date 81 year ago.
Z Livestock mafketings, which had
been exceptionally small in earlier
months. began to increase In
august, month earlier than last
volume than last year chiefly be-
cause receipts of hogs have been
considerably smaller. Marketings
of grain, though scasonally larger,
did not increase as much as usual
and were more than one-third
smaller than in 1924, owing prir-
cipally to the smaller crop of
winter wheat In the Southwest.
while marketings OF spring wheat
were larger than 81 year ago. Thus
the marketing agencies and the
banks, while not called upon in
recent months to finance so large
q volume Of farm products as last
year, have felt the increase In de-
mands upon them at an earlier
period than usual
During August and September
the amount Of Federal Reserve
Bank credit in use increased $685.,
900 900, which is $75.000!O00 greater
than the increase during this period
last year. The larger part of the
increase this year was in the form
of discounts for member banks,
which increased $165, 900 900, though
holdings of acceptances began to
increase after the middle of August,
partly in consequence of larger puri
chases OF grain and cotton bills.
The chief factor in the increased
use Of Federal Reserve Bank credit
was the increase during August OF
SOS 900 900 in the total money In cir
culation, and further increase in
September reflected in a growth of
SAC, 900 900 of Federal reserve notes
in circulation.