Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-01
Washington Ticker
BY CLINTON COFFIN.
Associated Press Financial writer.

1
Perhaps the most significant record
| yet written on the quick succession OF
stock market panic and recovery, and
certainly the most encompassing sum-
mary, is contained in this weeks Fed
eral Reserve Board report on the move
ment of New York brokers' loans. Not
! only was the enormous sum of 81 $780,
000,00 paid back to banks and money
lenders IN one week, reducing the loan
totals to s5,538,Oo0, 900, but there was
extraordinary Encouragement of the
entire collateral lending account.
The picture of banks all over the
country calling home money they had
loaned on Wall Street, and of private
and corporate lenders doing the same
thing while banks in New York City
itself replaced part of the funds, is
clear in the figures. The board notes
that on october % private money
lenders and non-banking corporations
and institutions had loaned 1898, 000,-
600 on stocks and bonds. On october
30 this huge sum had been reduced by
nearly $l.400. 100000. the general as
sumption being that this was the money
which was used TO buy the stock bar
gains offered for a few hours as margin
accounts were being wiped ont.
Almost equally notable was the re-
duction of brokers' loans made by the
out-of-town banks. Between the same
two dates the total of such funds IN
New York was reduced from $1,733,-
600 900 to $l,o2e,0 100000. The New
York banks however are recorded as
having stepped into the breach, and
their call loans rose to $2,069 ,00c 900
from the $1,077,000,000 figure Of a
week before.
Much of the complaint which has
been voiced in and around Congress
over money situations that developed
with stock market booming has been
aimed at the lending done by out-of-
town banks. Possibly various resolu-
lions of inquiry aimed at the situation
will evaporate without action, and there
will be no inquiry. but it is certain that
if congressional committees ever do ap-
proach the subject, they will find the
total of the countryS bank funds that
are used in Wall Street at one Of the
lowest GIBBS during the next few weeks.
The reserve figures show that this
money went home in startling degree
within a week.
1t was also notable that the New
York banks made their advances with
comparatively little call upon reserve
bank funds. The Reserve Bank of New
York, apparently, was asked to advance
but $129 600, 900 to New York members,
making their reserve borrowings on
october 80 amount to $4,000, 900.
against Sal .000, 900 the week before It
was noticeable that on October 81 last
year, under normal conditions, the New
York member banks were borrowing
$3.50, 000, 900 from the reserve system, so
that the tremendous sums entering into
stock market play Of the week had al
most trivial effect on the reserve system.
After compiling carefully the totals
of all the gold produced in the world
during the last 400 years. the Federal
Bureau of Mines has discovered the
previously obscure fact that the long
time trend of gold production for the
world has been on the increase" This
conclusion is somewhat at variance with
general impressions in the field, but the
bureau clearly has the figures to prove
it, and the slow expansions proven in
the metals output unquestionably clears
UP any doubts that may have been
raised about the probable future per-
siStence of the gold standard for money
in the world. All of the theoretic doubts
as to the continuance of the gold stand
ard have been based largely on the
question of the maintenance Of gold
supply.
More than. half the grand total of
gold mined in the world for the past
435 years. or 5l6,273,000 ounces, was
produced in the first 81 years of the
present century," Scott Turner, director
Of the bureau, said in introducing the
study. This astounding increase rep
resents only the elimination of album
dant production that began with the
discovery of gold IN California :;
During recent years, the study finds
that gold production has been running