Evening star., 1929-01-01
SALES IRREGULAR
IN FIFTH DISTRICT
Reserve Bank Review Shows
Declines and Increases.
Less Unemployment.
BY EDWARD c. STONE.

In its monthly review of business
conditions in November in the ntth
district, which includes Washington and
vicinity, the Federal Reserve Bank OF
Richmond reports smaller sales in SIX
important lines of trade than in the
same month in 1927.
Sales of groceries during the first IL
months of 1923 slightly exceeded sales
during the corresponding IL months Of
1927 the review states However, dry
goods, shoe, hardware, furniture and
drug sales were less during the year
just closed.
There were larger stocks of groceries
and hardware on the shelves OF the
reporting firms on November 80 than
on November 80 a year ago, but dry
goods and shoe stocks were smaller.
During the past month stocks OF gro
Ceries increased but dry goods, shoe
and hardware stocks decreased, as Is
usual at this season.
The percentage Of collections in NO
vember to accounts receivable on the
lst of the month were higher in gro
CerieS, dry goods and shoes than IN
November, 1927, but were lower in hard
ware, furniture and drugs.
Bank Borrowings Reported.
On December Is, 1927, member banks
were borrowing S2l, ,32l 900 from the
Federal Reserve Bank of Richmond,
the review continued, as compared With
S39. 1856 900 on the corresponding date
last year. The circulation of Federal
reserve notes. which stood at $78 884. 600
a year ago, was $86,849, 900 at the mid
die of December this year. On the
other hand, the total earning assets of
the Richmond bank, which were $84,-
$4,000 on December Is, 1927, declined
to S69,577,000 on December Is, 1928,
the decrease in bankers acceptanceS
and United States securities owned eX-
ceeding the years increase in redis-
counts.
Member banks lowered their reserve
deposits at the reserve bank from $73,-
$4,000 at the middle of December last
wear to $7O,675,OOO on December Is,
this year in keeping with lower de-
posts in the member banks, the review
said. The cash reserves of the Federal
Reserve Bank of Richmond were ST.
$50 900 on December Is, 1927, and on
December Is, 1928, were $96,275,0OO.
The ratio of cash reserves to note and
deposit liabilities combined was 5O55
per cent at the middle of December last
year, but rose to 60.88 per cent on the
corresponding date this year.
Between November IA and December
i 4.
mediation to customers of the report
ing banks increased slightly. Loans on
Government securities rose $439 900
during the month, loans on other stocks
and bonds rose So, 1872 900, and all other
loans and discounts, which are largely
commercial at this season, rose $842, ,OO0
The reporting banks increased their
Investments in bonds and securities
during the period under review by
$796,0O0, but their reserve balance at
the reserve bank declined $402.OOO.
Some Loans Show Increases.
Between December IA, 1927, and De-
cember IL, 1923, total loans to GUS
toners remained practically the same,
rising only Sl62 900; but loans on mis-
cellaneouS stocks and bonds other than
Government securities rose $25, ,604 900
during the year. All other loans and
discounts declined $25, 1863, 900.
Loans on Government securities
changed little, declining $4,000 during
the year The reporting banks reduced
their investments in bonds and Securi-
ties $16,970,000 between the middle OF
December last year and this, and also
reduced their reserve balance by $2,494,-
600. Cash in the vaults of the GA banks
declined 81 $3.50 during the year.
Aggregate deposits decreased $780,
276,000 between December IA, 1927, and
December IL, 1923, demand deposits
declining S25,879 900 and time deposits
falling $4397, 900. The several changes
pointed out created a greater demand
for reserve bank credit from the report
ing institutions this year, and they in
creased their borrowing at the reserve
bank by $11,227 900 between December
ii, 1927 and December IL, 1928.
Building Program Enlarged.
A more extensive building program
than that of last Winter is giving work
to a comparatively large number Of
workers in the fifth reserve district.
Labor conditions In the fifth district
now appear to be reasonably good for
this season of the year, the review
says Much of the unemployment of a
few months ago has been relieved. The
factories of the district are nearly all
operating on full-time schedules, and
much road, street and other public
Improvement work is under way. Sea-
sonal demand for bituminous coal is
giving miners more hours of work.
Business failures in the fifth reserve
district were fewer in number in No
vember than in october. and also less
numerous than in November, 1927.
Local Firm Pays Dividend,
The Real Estate Mortgage g. Guar
antry Corporation yesterday mailed
checks amounting to $110,471.37 to
stockholders as of record of December
20, 1928, representing the semi-annual
dividend on the preferred stock of the
corporation at the rate of per cent
per annum. This is the eleventh divi-
dend which the corporation has de.
clared and paid since its incorporation
in June, 1923.