Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-01
'RED|SCOUNTS GAIN
IN FIFTH DISTRICT
Monthly Review of Richmond
Bank Shows Higher
Credit Demand.
BY the Associated Press.

BY the Associated Press.
RICHMOND, Va, April 1.-The vol
ume Of rediscounts for member banks
held by the Federal Reserve Bank Of
Richmond increased from $36,999, 900
on February Is to $40, 706, 900 on March
is, 1t is stated In the monthly review
Of business and agricultural conditions
just issued by the Richmond Federal
Bank.
The increase in rediscount was due
to the seasonal increase in the demand
for credit incident to early agricultural
operations and the discounting Of bills
for Spring merchandise, the review
said. Because Of reduction of approx
imately $3,500,000 in bills purchased
and the Government security holdings,
total earning assets did not rise in pro-
portion to the increase in rediScounts,
middle of February to $56,047,000 at
the middle of March.
Reserve Deposits Reduced.
At the same time, the review contin-
ued the member banks reduced their
reserve deposits at the Reserve bank
from $68 1882, 900 to 6,911 900. Book
credit rather than cash being needed
at this season, the circulation of Fed
eral Reserve notes continued the sea-
sonal decline begun Immediately after
Christmas and dropped from $76, 704.-
900 on February is to 3,761 900 on
March Is.
These changes and others, the re-
view said, lowered the cash reserves
of the Federal Reserve Bank of Rich
mond from $98, 264, 900 on February IS,
to 1870 900 on March Is, and re-
FltInad tho rotin IF zach IN Y1nfc
and deposit liabilities combined from
$3.50 per cent to GAL per cent dur
ing the same period.
Material increases in rediscounts. for
member banks. total earnings assets,
and Federal Reserve note circulation
Is shown by figures reported March is
this year as compared with figures for
the same date last year. Lower figures are
shown this year, however, for member
bank deposits, cash reserve and reserve
ratio Rediscounts for member banks
rose from 1891 900 on March IS,
1928, to $40, 100000 on March Is, 1929.
Total earnings assets Of the Federal
Reserve Bank of Richmond rose from
$47,837 900 last year to $56,047 900 this
year.
Federal Reserve notes in actual cir
culation, which aggregated S62, 407, 900
db VAC hA4AN4C VA ASAdANAA AO~Sb yN1Ap w
tailed $73, 761 900 on March Is this year.
On the other hand member bank re-
serve deposits totaled ST. ,464,0 on
March Is last year and $66, 900 on
the corresponding date this year. while
the cash reserves of the Richmond
Bank declined between the same dates
from $96,513,000 to $93,970,000. The
changes in cash reserves. notes circu-
lation and deposits lowered the ratio
of reserves to note and deposit Nabil-
tiles combined from 71.4l per cent on
March Is, 1928, to 66.4l per cent on
March Is, 1929.
Business Failures Fewer.
Business failures in the fifth Reserve
district during February. 1929, were
fewer in number and lower in liabilities
involved than in February. 1928, while
both labor conditions and coal produc-
ton were reported to be better in Febru-
airy this year than last, says the review.
Business in February, which Is rela-
lively slack month in trade circles, this
year followed seasonal trends without
any marked deviation either way, the
review states. Credit demands at men,
Der banks and In turn at the Reserve
Bank increased moderately, chiefly to
meet the needs of farmers and mer-
chants for early agricultural operations
and the discounting Of bills for Spring
-