Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-06
Borrowings on Stocks and
Bonds Gain, but All Others
Are Lighter.
DEPOSITS INCREASED
TOTAL OF $1,000, 900
Bankruptcies in Washington Area
6 Per Cent Above Number
Reported in May, 1929.
BY EDWARD c. STONE.


of Richmond, shows that from the mid
die of May to the middle of June the
So reporting banks in the fifth Federal
Reserve district increased their loans
on stocks and bonds by $4901 900, but
decreased all other loans by S4l09,000,
a net increase in total loans and dis
counts of only S792, 900, although de-
posts increased about S7000,000. Total
investments in bonds and stocks rose
81 1851 900 between May IA and June IL
and cash in vaults rose S2.544 900 dur
ing the same period. Aggregate re-
serve balances of the reporting banks at
the Federal Reserve Bank of Richmond
declined Sl,0l8,000 between May IA and
June II, little more than a daily fluc-
tuation. Total deposits rose S7344000,
net demand deposits increasing S1.36l,-
900 and time deposits rising S5,903,OOO.
A comparison of the June II, 1890,
figures with those for June II, 1929
shows some interesting changes, chief
among them being the marked de-
cline in borrowing at the Reserve bank
which dropped from S24 $4,000 last
year to only $500 900 on June IL this
year. At the same time the reporting
banks decreased total loans to their Gus
toners by S25,O90,000, drop of $40
$4,000 in all other loans much more
than offsetting a rise of S15,093 900 in
loans on securities.
says, that loans on securities do not rep
resent stock exchange or speculative
loans to as great a degree as was once
the case since business firms and cOrpo-
rationS as well as individuals borrow
for ordinary commercial purposes on
such collateral to considerable extent.
The reporting banks increased their in
vestments in bonds and stocks by So
100000 during the past year and their
cash in vaults rose S2667000.
Time Deposits Above 1929.
Total deposits in II mutual savings
banks in Baltimore declined from $685.
174,471 on April 80, 1880 to S195,057,-
S96 on MAY 81 but on the latter date
stood approximately 3 per cent above
S189,402. 208 on deposit in the same in
situations on May 81, 1879. The decline
in mutual savings bark deposits in May
appears to be seasonal bic, a drop during
that month having occurred in 8 Of
the past IL years. On June IL this year
SO regularly reporting member banks
had time deposits aggregatlrg S253,-
285,000, sum "a per cent above S247,-
02,o00 reported on May IA, 1880, and
So per cent above S239 ,215,000 on June
u. 1929. The time deposit figures for
member banks do not all represent saw
ings accounts, however as do the n1u-
tual savings bank figures.
Bankruptcies in the Fifth Reserve
district III May, 1880, numbered l24, an
increase Of 6 per cent over III failures
in May, 1929. but smaller number
than 100 insolvencies in April this year.
In number of failures, the district rec
ord for Nav was better than the ma
tional record, which showed an increase
of Is per cent in comparison with the
number of failures in May, 1929. LA
bilities involved in fifth district failures
last month totaled S3,067.805 an in
crease of approximately 30 per cent
over S2052 sos reported for May, 1929.
but a large decrease under S7,244,O2
for April, 1880.
Workers Await Construction Jobs.
Employment conditions in the fifth
reserve district, Mr.. HoXton continues,
have not improved as much this Spring
as many people expected they WOULD.
There is no very large number OF people
out of work at any particular place, but
throughout the entire district there are
workers in nearly every community VINO
cannot find employment. The indus
tries of the district, with the exception
of tobacco factories, and some Of the
ship wards, are operating below capacity,
and construction work on the whole is
below what might be called normal for
this season Of the year. In some cities
and at least one State in the district
plans for additional building and road
work are shaping up. distinctly improv-
ing prospects for additional employment
in the next few months.
Building permits issued in May for
new construction numbered 1,2l7, COM
pared with 1889 permits for similar
work issued in May, 1929. a decrease
this year of 81 per cent. Valuation fig
ures for new work totaled 81, 1888, 786 and
in
of 18 per cent. Alteration and repair
permits also showed lower figures this
year for both number and estimated
valuation. Total valuation in May for
all classes of work amounted to $9099,-
297, compared with $10.790,914 in May,
1929. a decrease of $1,691,617, or 15T
per cent, for the 1880 month.
Among the larger cities Baltimore,
Charleston, w. Va, and Washington re-
ported larger valuation figures this year,
but in all three instances the gains were
due chiefly to comparatively low figures
in May, 1929, rather than to an unusual
amount of work this year Norfolk,
Richmond. Charlotte and Winston-Sa-
lem reported lower figures than a year
earlier, Richmond showing especially
sman figures for the past month, the
review concludes. ..
Heard in Financial District.
During the past week in the local
financial district two new bank presi-
dents assumed their duties - John D.
Howard at the Seventh Street Savings
Bank, and Francis G. Addison, jr., at
the Security Savings & Commercial.
Francis T. Savage former local bank
president and organizer. has gone
abroad for the Summer, Trieste being
one of the leading places which he in
tends to visit.
The resignation of Peter A. Drury as
chairman of the board of the Merchants
Bank g. Trust Co. takes a prominent
figure out of the active banking field
AS director and stakeholder. however,
he will still manifest a deep interest in
the institution which he founded.
G. Bowie Chapman, resident partner
of Hartman & Co., has gone to his
Summer home, at Calais, Me, to pass
July and August. He has delightful
place on the shore of Penobscot Bay.
Karl w. Corby, partner in w. B.
Hibbs & Co., has been added to the
beard of trustees of the Columbia Hos
pital
With an aggregate gain Of over S.
100000 in deposits on the last call. local
bank officials are wishing that call
money was 20. per cent instead of 2 per
GENT,