The Washington times., 1928-06-05
PREDICT N / v
HIGH IN BANK
GREDI
p RICHARD HATTON

1las June issue of the Federal Re
erVs Bulletin, made public lat
yesterday. contains the Following
statement on security loans AMI
Reserve bank credit:
Volume Of bank credit continued
- Increase III recent weeks ana Il
the middle Of May loans and invest
1nents 81 member banks in lead
tns cities were at new hlgl
level The growth III bank cTedi
ham been continuous and Tapls
since tK1a seasonal low point I'M TN
later psaE Oe February. Since thai
time the total volume Of credit ex
tended IN the reporting member
hanks has Increased BY nearly
GOO 900 600 Until the middle q
April this growth reflected in abon
equal measure increased spring de
lands Tor bank accommodate b
trade and Industry and growth II
the volume OF stock exchanges loans
10 Further Growth
since that time there has beer
10 further growth in the cornmer
8 demand Tor credit. and the en-
has BEEN Ia holdings
el tiles ana ia loans on st0elSs
aIla bonds and particularly e
lnen ID brokers and dealers Il
ies bill the New York Stoch
anse Acconp nying a. IN
dented volume az transac tipns
Oh ne exchange and contlnuec
rise q security prices. the N0lg.ills
~ 50 lied brokers' loans reached
record figure In the beginning q
nri4 and continued to 1ncreast
until the middle oe May In view
- "a raf,fd axnansi0n or bank
crssf IS TIE absence of additional
c1Iil1,eroia a demand. and the increas
Ire volume ~ bank loans used g
49, - - = =, ~ l1,c fYl securities
zI,s ~ 1880 i3eisr,svs, hanks further
~ xl',lss,S' S,sSs1I, january
fss.s. securities
$3.50 AZ, finds from
-. 1900 80
- Is
Nlka q "a y eAlas
tlonal Withdr VA or nAnat
ea caused by the continued 1e
raaaad for gold for export. 40
con sequence Of these dra.Agal'
ana some Increase ~ the reserve
Eaents Of member Danz'
there was iarse increase e Z. l -.
"a 3 - = = 49, - szs.... 8
and the volume q discount :.
g 10y wac le1ger tnan 81 ~. ~ y
tue q ssss - ,,,ssssl,e,
-. s $500 ,ariSs "a.
- - .s..s1 3. 49, ~ of,en
,,sTffcs,IarIv i
-, All s,,n1,sv Discount
-. - - lTnvv -Yorlx philadel
$3.50 sss1s45sIs,id AtIanta. and Dallas
- ..se i,s,sisa were raised III MAJ
@,s.s.s i sfn ~ ner cent. and THU
-. u - SesW IL effect III 10 Of ths
! ) sssss.ssi II eserVe banks.
xssrY.e k0ka1 volume of Reserve
$50, credit U.s. measured b epna
blre8 oldlfip Or discounts accept
aflcee ana United States securltles
49, larger III the middle of May
It'll the exception Of two DecemDeA
sona1 peaks. than at any otnei
time since the beginning ol lszz
Yile growth during April ano ntay
fnrtaernn0re. was more raplQ TO-
the same season Of any oLael
year since 1919 DuEinS liz lsssl 10
from The beginning q last $500 "a. Z.
Der. when the pressnL 9.sa ~ -. - 7,
sid psss. y 1880, - $500 bank credi
4 ssss1~fe fiil,r increased by aboli
Sefle Tl10 .o00
go an gI0e rnlxem
.s.-... .,,o,,.,,s,
lurlng sne 49, - .-as - -
about Ivy Vs0Vv " 49, !" - NJ. ~.
from e -. !, -. ~,
limited Htatess ~ tns 1sill.lll ~. -.
reserve bank creolL Lry 80
source 81 OFFSET ~ pat Dy e -
turn flow qr about N z0,VVv oL CT -
Tency from cirsssal atlon, 20 LnaL sn.
net effect qf these Two, lacsors ~
the period was % give rise 70 e
increase Of S275, Oe0iOVO IN the de
naand for Reserve bank credit e
the same time. the reserve require
l1ents Of member banks Increased
bv s126, 900, 900, occasioning al
equivalent further increase in TIT
demand Of member banks for credi
at the Reserve banks. The tota
increase Of $400, 100000 in Reserv'
hank credit. therefore, for the eigh
,,aonflns was the resultant OF gols
nxn0rfe. in excess of q decrease ii
Demand FOR currency. plus q con
esderafIe growth in member bani
Fsss1ss Esrs.Is = Commute.