Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-06
RED|SCOUNTS DROP
IN FIFTH DISTRICT
Richmond Banks Earning AS
sets LoWered-Note Cir
cuIation Is Increased.

Rediscounts for member banks held
by the Federal Reserve Bank OF Rich
mond declined from 500, 691 900 at the
close of business September is to $751;
$4,000 on october Is, drop Of ap-
proximately SIS 100000, at the time of
the year when rediscountS tend to
either remain relatively constant or to
increase slightly. This reduction In re-
discounts lowered the reserve banks
total earning assets, but the bank
bought approximately $10,500,O 900 in
bankers acceptances in the open mar
ket during the month, which left the
net decline in earning assets only about
$5,0000 900, from $74,873, 900 on Sep
TENDER is to $40, 128, 900 on october IS.
Note Circulation.
However, rediscounts have since in.
creased to $57, 181 900 and earning
assets to $77.609,000 on october 81.
Federal reserve note circulation in the
fifth district rose seasonally from $751;
9S3 900 last month to $94, 688, 900 at
the middle of october. Member bank
reserve deposits declined from $685.
$4,000 at the middle of September to
$50, 089, 900 on october IS. The several
changes enumerated, with others of
less importance, raised the cash re-
serves of the Federal Reserve Bank Of
Richmond from $50, $50, 900 on Septem-
Der is to $87 $4,000 on October Is,
and also raised the ratio of cash re-
serves to note and deposit liabilities
combined from 5000 per cent to $500
per cent. The reserve ratio subsequent
ly declined to 1894 per cent on Octo-
Der 81.
A comparison Of the figures in the
reserve banks statement for October
is this year with the figures reported
q year earlier shows little change in
the amount of credit extended to mem
Der banks. Rediscounts rose from
$50, 666,000 at the middle of october
1928. to ISL 1852, 900 on october Is, 1929,
but the total earning assets of the
Richmond bank declined during the
year from $70,224,000 to $70,128,0 900.
The circulation Of Federal Reserve
notes increased materially, rising from
$e9 $4,000 last october to $s4, 6ss.ooo
this year, but it is probable that the
introduction of the new small currency
this year is still affecting this COM
parison.
Reserves Lower.
Member bank reserves were lower on
october is this year than on the cor
responding date last year, having
dropped from $67, 799 900 to &62, 08e, 900.
The changes mentioned resulted in an
increase in the Federal Reserve Bank OF
Richmond'S cash reserves from $7e,-
$4,000 on october is, 1928, to 7,444,-
900 on october is, 1929, and cores
ponding rise in the ratio of reserves to
note and deposit liabilities combined
from 56.04 per cent to $500 per cent
during the year.
Construction work provided for In
permits issued by building inspectors In
80 fifth district cities was In relatively
small volume in September, 1929. Per-
mits for new construction totaled ,460,
a larger number than 1918 permits for
similar work issued in September, 1928,
but valuation figures for new work
totaled only $8,509,917 in September
this year, compared with 1901 ,599 In
September, 1928. Baltimore and WASH
ington combined reported approximately
two-thirds of the total valuation last
month, although both cities showed ma
terially lower totals than for September
year ago. WinSton-Salem reported the
third largest valuation in September
this year, Asheville was fourth and
Greenville, s. c., was fifth, all three ex-
ceeding the figures OF Richmond and
pair work issued In September totaled
2,6l2, with estimated valuation Of
$685. ITS, compared with 2,229 permits
and valuation of 81 ,322,545 in Septem-
Der, 1928. Total valuation for all classes
of work included in the September, 1929.
permits amounted to $9,S33 ,0o2, q de-
crease of $4,561,0 52, or 3l.7 per cent,
under total valuation of $14,394, la for
all classes of permits issued in Septem.
Der year ago. Fourteen cities reported
larger figures this year, but 10 cities, ia-
Guiding the three largest ones, reported
decreased totals.
Contracts Awarded.
Contracts awarded in September for
construction work in the fifth district.
including both rural and urban projects,
totaled $22.711 $40, compared with $39,-
842,583 awarded in September, 1928, ac-
cording to figures collected by the r. w.
Dodge Corporation. OF the awards In
September this year, $6,626, $50 was for
residential work.