The Washington times., 1928-02-14
BANKING CREDIT
DROPS


Ynents since the turn Of the year
have been 30 much under the
influence Of seasonal movements
that II 10 difficult to determine
the underlying less temporary
trends states the review Of the
month made public in the Fed.
eraI Reserve Bulletin yesterday.
The statement. which 4 issued
~ the Federal Reserve Board,
continues: ''The return flow OF
currency from circulation, which.
always sets In after December "a.
was in approximately the same
volume this year a. usual, the
decline in the currency demand
between that date and January %
being more than $500, 100000. An.
other seasonal movement has been
the flow OF funds to New York,
arising largely out Of first.of-year
divldend and interest disbursements
to security holders all over the
country seeking reinyestment In
the money market.
.'The volume Of member bank
credit. which reached its peak
on January 4, declined by nearly
$500. 900 GOO IN the following three
weeks. the decline being largely
In loans on securities, and being
accompanied by q decrease in bank
deposits, and consequently in mem.
Der bank reserve requirements.
Seasonal Influences.
Demand for reserve bank credit
diminished rapidly. and total bills
and securities Of the Federal Re
serve banks declined from $780,
OOO, 900 on December % to S1,17S..
900 900 on January Is. Notwith.
standing these seasonal influences,
conditions in the money market con.
tinued to be about the same 40 in
December, with a tendency at the
end Of the month toward firmer
s.The rate on call money. with
fluctuations, was at about the same
average level a. In December, ana
the rates on time money were soT1e.
what firmer. There was q slight
advance IN the rate fol bankers
acceptances, and the rate on com.
mercial paper, after declining
slightly at the turn Of thee year,
rose once more to the per cent
level. which It had maintained since
early autumn.
Among the influences working
against an easing IN mOnsy rates
was the sale during January q
more than $40, 900 900 Of Emitted
States securities BY the Federal Re.
serve banks out Of the system 3
securities offset the effect, In part,
OF the return flow Of currency. with
the consequences that member bank
borrowings at the reserve banks
declined less than would have other
wise been the case.
Theirs were also, lOnger.term in
Guences In the direction OF firmer
money rates. Reserve requirements
OF member banks increased rap.
idly IN the last half Of 1927, reflect.
ing q growth In the banks deposit
liabilities. and particularly In their
demand deposits. There was also
a decrease Of more than $500. 900, 600
In the country's stock Of mon
etary gold during the las. four
months Of the year through ex-
ports and through earmarkings for
foreign account.
Gold Exports Continue.
I'm January gold exports con-
tinued on q considerable scale, but
were for the most part offset by the
usual seasonal now Of gold from
Canada. 80 that there was little
change in the gold stock for the
month. The previous loss of gold
during the period Of the maximum
seasonal currency demand. however,
was a factor in the increased
volume Of member bank borrowings
at the reserve banks, and continued
to be an influence toward firmer
money conditions after the turn Of
the year."
The H. r. Bryarly and Brother
Agency. OF this city, won the 1927
intercity contest of the Home Life
Insurance Company, OF New York,
according to announcement made
by the company. The Washington
agency showed q paid for business
Of $1,S16.OOO. defeating the next
nearest agency by 31le.OOO. III. r.
Bryarly and Brother were heartily
congratulated by the home office on
their achievement. The Washing.
silver loving cup Of the company.
The following were elected at the
orga nizatlOn meeting OF the Wash.
ington Gas Light Company yester.
day:
Ord Preston, president; Robert d.
Weaver, vice president; George M.
Whitwell. secretary: Lawrence Town.
send. treasurer; Richard A. Ennis,
controller: Edward T. Stafford, as.
sistant secretary; Rawlins Hume,
assistant treasurer: c. Clay Bayly.
assistant controller: Thomas B.
Gardner. second assistant secretary;
A. Gray Dawson, second assistant
treasurer; John L. Schick, assistant
controller. and Minor, Galley and
Drury. general counsel.
Officers, directors and employees Of
the District National Bank were
entertained at dinner at the May.
flower Hotel on Sunday evening by