Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-03

Richmond Reserve Bank Re-
ports Big Increase in
Retail Field.

Spring trade opened we'll in the fifth
reserve district in March. and on the
whole the volume of business was larger
than in March of last year. says the
monthly review given out today by the
Federal Bank of Richmond. Construc-
ton work provided for last month in
permits issued in leading cities was
somewhat less than the volume of work
provided for in March. 1923, permits,
but nevertheless the months totals rep
resented an extensive building program.
Labor is much better employed now
than 1t was year ago.
Retail trade in March, 1929. was in
considerably larger volume than year
ago, chiefly due to good weather pre-
ceding the Easter holiday and sales of
department stores in the first quarter
of 1929 exceeded sales in the first three
months of 1928. Debts to individual
accounts figures, representing the
volume Of checks passing through the
banks of the district, were considerably
higher in amount during the four weeks
ended April 10. 1929, than in the pre-
ceding four weeks this year or the cor
responding four weeks in 1928.
Business failures in March in both
the fifth district and the Nation were
less numerous and liabilities were lower
than in March year ago Textile mills
oiC OPClatIIS az q LAsIleI TdCS imam at
this time last year. The weather this
season has been excellent for agri-
cultural activities, on the whole, and
crops are getting much earlier start
than in 1928.
Other Vital Factors.
On the other hand, there are some
unfavorable factors to be seen. Last
years crops were less profitable than
IN most years, and a large number of
farmers were unable to liquidate their
1923 obligations, which handicaps
them in their operations this year. One
result Of this weakened financial posi-
ton OF the farmer is a decreased use
OF fertilizer under the 1929 crops. In
textile mills at scattered points indus
trial disputes have led to Stoppages of
at least local Importance
Cotton prices declined last month,
coal production dropped below the
Ie1e level. and wholesale trade in
Match was 81 Smaller volume than in
March, 1928. Member banks in the
district have lower deposits than in
early April, 1928, and are, therefore,
borrowing more extensively from the
reserve bank than they were year ago.
Reserve Bank Operations.
The changes in the principal items of
condition in the statement of the Fed
eral Reserve Bank of Richmond be-
tween March Is and April Is, both this
year, were of seasonal nature, and of
about the usual volume. Rediscounts
for member banks held by the Rich
mond bank rose during the month
from $40, 706, 900 to $53.252. 900. reflect
ing the demand for credit for early
agricultural operations, including fer
tilizer purchases. Total earning assets
of the reserve bank rose from $56,047,-
900 on March Is to $64 $4,000 on
April IS, the rise being less than the
increase in rediscounts, because the
Richmond banks holdings of bankers
acceptances were reduced approximate
ly $4,000, 000 during the month.
Member banks reduced their reserve
deposits between March Is and April
Is from $66,911 900 to $66, O34. 900.
merely daily fluctuation. The season.
al reduction in Federal Reserve notes
in actual circulation continued last
month. decreasing from S73, 761 900 at
the middle Of March to $70,5180OO at
the middle of April The several
changes enumerated, with others of less
note, reduced the cash reserves of the
Federal Reserve Bank of Richmond
from 500, $40. 900 on March Is to $685.
2l4,000 ON April IS, and lowered the
ratio of cash reserves to note and de-
post liabilities combined from goal per
cent to 60.73 per cent between the
same dates.
In comparison with the figures re-
ported on April is, 1928 those reported
on April Is, 1929, show increases in all
items except member bank reserve de-
posits and reserve ratio. Rediscounts
for member banks o year ago totaled
S35,691 900, in comparison with $53,-
$4,000 on April is this year.
Gain in Earning Assets.
Total earning assets rose during the
year from $57, 1880, 900 to $64, 379. 900, the
increase in rediscounts during the year
being partly Offset by reduced holdings
OF bankers acceptances purchased in
the open market. Member bank reserve
deposits, which totaled $70,940,000 on
April is, 1928, declined to $66,034, 900 on
April is, 1929, partly due to lower re-
serve requirements on reduced COM
mercial deposits this year.
The circulation OF Federal Reserve
notes, while showing the usual seasonal
reduction, on April IS this year. totaled
S70,518,o00 in comparison with 59,948,-
600 in circulation on April IS, 1928. The
cash reserves of the Federal Reserve
Bank OF Richmond rose from $84 apo, 900
at the middle of April last year to
$S62l4,OO0 on the corresponding date
this year, but the ratio of cash reserves
TO note and deposite liabilities combined
declined from 1888 per cent on April
1920 80