Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-31
Borrowings GAIN
IN FIFTH DISTRICT
Reserve Bank Report Also In
dicateS Increase in Dis
counts for Members.
BY the Associated Press.

BY the Associated Press.
RICHMOND, Va, December 31.-Wn-
liam w. Hoxton of the Richmond Fed
eral Reserve Bank, in his December re-
view of credit, business and agricultural
conditions in the fifth Federal Reserve
district, said that the failure of farmers
to liquidate their Indebtedness this year
in normal volume adversely affected
supply merchants, banks in agricultural
sections and both retailers and whole
salers of general merchandise.
Increased borrowing from the Federal
Reserve Bank of Richmond by the
member banks was noted. Mr.. Hoxton
said the increased borrowing was partly
due to a desire to strengthen their cash
positions rather than by any additional
demand for commercial credit.
Discounts Increase.
For the same reason, he said, the Re-
serves Banks discounts for member
banks increased, the volume of Federal
Reserve notes in actual circulation also
rose by much more than the average
at this season.
Deposits in member banks declined
during the month between the middle
of November and the fifteenth of De-
cember Debts to individual accounts
showed a seasonal increase during the
four weeks ended Decembr 10. 1880, in
comparison with the preceding four
weeks this year, but were $50 per cent
less than the debts in the correspond
ing period year ago.
Commercial failures in the district in
November were more numerous than in
November last year, but this years
liabilities were less, the report said.
Mr.. HoXton said employment condl-
tons did not improve in November or
In early December, but on the con-
trary there seemed to be an increase III
the number of persons seeking work.
The textile industry was reported to
have made no further progress last
month, but appeared to have held the
slight gain reported in october.
Cotton prices after firming up be-
tween the middle of october and the
middle of November turned downward
again and went below nine cents per
pound at the middle of December, the
lowest figure since the early part OF
the World War.
Construction work planned or con-
tracted for in November was in less
volume than in November, 1929.
Reserve Ratio Gains.
The fifth district bank reduced its
holdings of Government securities by
$4,722 900 between November Is and
December Is, and cash reserves were
increased by S22,799, 900 during the same
period as a result of the changes in
rediscounts, open market paper, Govern
ment securities and othsr items.
The ratio of cash reserves to net and
deposit liabilities combined rose about
half a point during the month under
revi.w.
At the middle of December this year
rediscounts for member banks were only
81 083 900 less than on December 10,
1929. and total earning assets were only
S4,0O6 900 less on the 1880 date. The
Reserve Banks holdings of open market
paper decreased S6,367,000 during the
year, but the decline was practically
balanced by an increase of $6,444,0O0
in holdings of Government securities.
The volume of Federal Reserve notes
in actual circulation on December Is
was S9,255,000 above the amount on
December IS, 1929.