Evening star., 1928-05-04
WASHINGTON AREA
| TRADE IS SEASONAL
Richmond Reserve Finds
! Building Heavier--RetaiI
Sales Also Gain.
BY EDWARD c. STONE.

BY EDWARD c. STONE.
Business was about st seasonal levels
IN March ard early April in the fiftk
Federal Reserve district. and in some
respects was better than in March last
year. according 10 the monthly review
made public by The Richmond Reserve
Bank To-Day.
The Volume Of construction work pro-
vided for in permits issued IN leading
cities and in contracts awarded foy
rural and urban construction was con-
sidersbly above the amount Of work
provided for IN March. 1927. and this
enlarged program of, building distinctly
leSsened the number of unemployed, al
though there is still n large number Of
idle workers,
Retail trade in March, as reflected IN
Department store business. WAS better
than in March last year and sales dur
ing the first quarter OF 1928 also eX-
cee0ed sales in the first three months
al 1927. Debts TO individual accounts
during the four weeks ended April III
exceeded debts for the corresponding
period a wear ago. and business failures
In the fifth district in March were less
numerous than in March last year, al
thoueh Last months liabilities were
larger.
The continued cold weather held back
DEVELOPMENT of fruit buds, and ConSe-
uuentlv prospects for a full apple crop
this year are much better than they
were in April last year. Fertilizer sales
in larger tonnage than in 1927 indicate
that farmers are stronger financially
this year and also promise increased
yields OF 1928 crops Il weather condl-
tons prove favorable during the grow
ing season. Cotton prices advanced
about ss q bale between the middle OF
March and The middle of April
Reserve Operations in Detail.
Chsnsss in the principal items Of
condition Of the Federal Reserve Bank
Of Richrlpn6 between March IS and
April Is were OF a seasonal nature. Re-
discounts for member banks rose dur
ing the month from S26.9Sl.0 600 10
$50. SOL 600, the increase rejecting ad-
oitional credit needs for crop planting
and fertilizer purchases. The Rich
n1ond banks total earning assets rose
py about the same amount as the IN
crease IN reolscounts. total earning as
sets on Marcn Is being S47.63T, 600 and
on April is Iotaling S57 $50 600
Federal reserve note circulation, the
reDort ADDS. decreased during the month
from s62. .40T 600 to $50, ,94S.0oo. book
credit rather than cash being needed
al this season. Member banks reduced
their reserve deposits from S1i $4,000
81 the middle OF March 10 S70.94o.000
at The middle Of Apra, merely daily
auctuaticn. The several changes III
The items enumerated reduced the cash
reserves of the Federal Reserve Bank
of Richmond froYn SOC, 81 3 900 on March
- Z I
cred the ratio of cash reserves 10. note
and deposit liabilities combined from
7I4I per cent to g. 63 per cent.
In comparison with the figures N the
Richmond banks statement for April
Is 1927. those in the statement Tor
April Is this year show considerably
greater use of Reserve Bank credit this
year. Rediscounts for member banks
held br the Federal Reserve Bank Of
Richmond totaled SO, ,975, 600 on April
is last year and s35, ,69l 900 on the cor
responding date this year. an increase
or IS per cent. The total earning as
sets Of the Richmond bank rose from
S40.499. GOO TO ST.. $50, 900 during ting
year Federal Reserve notes in actual
circulation declined during the year,
however. decreasing from S69 GIT 600 OF
April IS. 1927, to s59.s4s.o00 on April
Is, 1923
Member hank reserve deposits rose
from Sse.S42, 900 last year TO $40 .s40.-
600 this wear The cash reserves of the
hank. which totaied sl03.536. 600 at the
middle Of April last year. declined To
SS4.426.000 on April Is this year, and
the ratio Of cash reserves 10 note and
deposit liabilities combined dropped
from 1892 per cent 70 63.e3 per cent
during the same period.
New Member on Exchange Here.
james Ii. Johnston. member Of the
nrrn Of irving Sg Johnston, investment
bankers, ia the Woodward Building To-
day was elected By ifle board OF gov
eTnorx % membership in the Washlng-
ton STOCK Exchange.
Mr. Johnston Is a director in the
Liberty National Bank and is treasurer
of the Federal Storage Co.
The new member takes the seat Of
Carroll Pierce. president Of the First
National Bank. In Alexandria, Va, vino
has not attended the trading sessions
regularly for a long time. Today's ac-
ceasion makes TWO neE members added
70 the exchange roster within two
weeks.
Peoples Drug Leads Trading.
Peoples Drug Stores preferred led
ST shares changed hands al Ill, the
same as yesterdays close. Meraenthaler
soi9 in three l0-gasre lots a. i0l%s,
and Sanitary Grocery preferred ageln
came cur az is top i26 Lsnston reg
istsged III. while Washington Gas came
oUt IS lgnt volume ~ 90.
Capita Traction was traded IN a.
1885,. Potomac Electro Power 53z Per
cent preferred sold 70 the extent Of IS
shares ct s5iz and 95ss During the
session 500 shares of National Mortgage
Il Investment preferred changed aapCs
81 So. closing al 5=s Chestnut Farms
Dairy preferred sold al l0ssz.
Two bank stocks came oilt. five shares
~ National Metropolitan selling a. 505
and two al SD6 Riggs National figured
in one l0~snaTe lot transfer At 5l9
Bonds we're again firm on a faiT-slzed /
turnoseF Calling prices on the unlisted
stoeks s1owed very few changes this
Week
The exchange governors decided 10
EDspend operations here tomorrow be-
cause u tbe closing Ia New York.
Heard In Financial District.
Tlckers viii again be silent In the 90
90 brokers tomorrow ss the New Yefk
Etock Exehanae Suspends operations for
"ca9ehinR~Up' purposes. The STOCK de-
Livery windows, however, remain open.
X J M009aoe. banker and lecturer
or Credits" ~ the institute, lg the
proud p0aSessor o. a h2ndsoFlle walcn
charm presented by the members of his
class last evening.
Walter n. Dunlap. instructor ia Dusi@
nese toreesSting a. tDe institute. vas
sise remembered by his students last
evening when he Bak presented with a
fountain DEN and pencil set
g. " GtTaQs a. ca afe Offering an ia-
s1e ~ 81 900 900 HDteI lexington ffsl
g1oftgage PER cent sinking fund gold