Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-01
RED|SCOUNTS DROP
IN FIFTH DISTRICT
Chairman Hoxton Notes
Liquidation of Indebtedness
by Country Banks.
BY the Associated Press.

BY the Associated Press.
RICHBOND, Va. November RE
discounts for member banks held by
the Federal Reserve Bank Of Rich
mond declined by $1,471 900 between
September Is and October IS, this year.
the monthly review of the nth Federal
Reserve district, compiled by william
w. Hoxton. chairman, shows today.
Mr.. Hoxton, who is chairman and
Federal Reserve agent of the Bank of
Richmond, asserted that the Fall hqui-
dalton Of Indebtedness by country banks
more than balanced a small increase in
city bank borrowing.
Increase In Borrowings.
The review pointed out that at this
season Of the year banks serving agri-
cultural sections repay rediscounts with
funds received from crop marketing,
while city banks tend to increase bor-
rowing to meet the needs of merchant
customers in connection with their pur-
chases of Fall and Winter merchandise.
During the past month the Rich
mond bank. the review said. also de-
paper by 1887 900. This decrease. with
the declines in rediscount holdings,
lowered the total earning assets by
$3,358,000, or 10 per cent, the review
asserted
A seasonal increase in the circulation
Of Federal Reserve notes amounting TO
So, 283 900 occurred between the middle
of September and the middle of Octo-
Der, but member bank reserve deposits
showed only a daily fluctuation, in
creasing by $4,000 between the two
dates selected for comparison. These
changes, with others of less Importance,
Mr.. Hoxton said, gave q net increase
Of 1884 900 in total cash reserves Of
the Federal Reserve Bank Of Richmond
during the month, and raised the ratio
of cash reserves to note and deposit
liabilities combined by 1.57 points.
In a comparison of the figures on
the statement for october Is, 1880, with
corresponding figures reported on Oc-
tober, 1929, the review showed greater
changes in every item than occurred
during the past month. Rediscounts
for member banks declined $33, $50 900
during the year. drop of 648 per cent,
and the bank holdings of open market
paper decreased by $8,775 900, or SILL
per cent, in the same period.
Holdings Of U. S. Securities.
Meanwhile holdings of Government
securities rose by $15,174,000. The re-
auctions in rediscounts and open mar
ket paper were greater than the in
crease in Government securities, and
the Richmond banks total earning as
sets declined $26,751 900, or 38.1 per
cent, between october is, 1929, and
October Is, 1880.
The circulation of Federal Reserve
notes at the middle of october this
year showed a decline of $17,879 900 in
comparison with the circulation on the
corresponding date a year ago. The
decrease, the review said, was partly
due" to lower price levels this year.
especially for many agricultural prod
ucts, and to a generally lower level OF
business activity.
Member bank reserve deposits m
creased $1,733,000 during the year
under review, larger reserves being re-
uuired against increased deposits this
wear, the review said. The changes In
the items resulted in a net increase IN
cash reserves during the year totaling
So, 1872 900, and raised the ratio OF cash
reserves to note and deposit liabilities
combined by 1885 points.