Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-01
BUSINESS STEADY
| IN FIFTH DISTRICT
Reserve Bank Reports Sea-
SonaI Trend Prevailed in
Recent Weeks.
BY the Associated Press.


RICHMOND, Va, April 1.-Business
conditions in the fifth Federal Reserve
district during February followed sea-
Sonal trends without Strikingly favor
able or unfavorable results, the review
Of February and early March trading.
announced here by William w. Hoxton,
chairman and Federal Reserve agent,
discloses.
Labor conditions did not improve
materially, but the outlook for future
employment frightened somewhat, the
review states.
The situation in textiles continued
unsatisfactory, and cotton consumption
in the fifth district during February
was much below that Of February last
year, but the fifth districts percentage
of total consumption was higher In
February, 1880, than in February, 1929.
Retail Trade.
Retail trade in department stores was
better than in February last year, 81
Of IS stores reporting showing larger
sales.
Wholesale trade also compared more
favorably with the trade of February
last year than other recent months
compared with the corresponding
month in 1929, three of five reporting
lines selling more goods last month
than in February, 1929.
Member banks in the district were
borrowing SIS per cent less from the
reserve bank on March Is. and in turn
were lending less to their customers.
Demand deposits in member banks
were down moderately this year in COM
parison with those a year ago, but de-
poSits in mutual savings banks in Bal
timore at the end Of February were the
highest on record, and time deposits In
reporting member banks were only
slightly lower than last year.
Contrary to the seasonal trend, men,
Der banks reduced their rediScounting
at the Federal Reserve Bank at Rich
mond between February Is and March
IS, early crop planting needs usually
bringing an expansion of reserve bank
credit at this season, the review ex-
planned.
Payments by check through clearing
house banks in the leading cities in the
fifth district were less in the four weeks
ended March IL, 1880, than In either
the preceding four weeks this year or
the corresponding period in 1929, but
the decline was not large.
Failures More Numerous.
Business failures, in the fifth district
in February this year we're more numer-
greater than in February last year, but
the figures for the current month were
compared favorably with other recent
Fehruarys, and the district record for
the month was better, both in number
of inSolvencies and liabilities involved,
than the average for the United States.
Coal production in February was less
than either January, 1880, or February
1929, chiefly due to warm weather
-. I'll
for fuel, the review stated.
Building permits issued and contracts
awarded in February we're below those
of February, 1929, in aggregate value
but the review noted signs that con-
| siderable amount of construction work
| is being planned for the near future.
| Tobacco markets closed after a sue
cessful season, the review stated. add
ing that sales probably totaled some
what above the previous years sales
and prices this year are slightly higher
on the whole.
Early preparations for this seasons
farm work are well advanced" it con.
| tinued, land Winter crops are in gooC
condition. On the whole, the farmers
| in the district seem to be in fair shape
to undertake the new seasons activi'
| ties, except in the cotton sections OF TIT
| two CarolinaS, where conditions arr
probably worse than they have been TO
a number of years, due to low yield
and poor prices for cotton"
About 80 per cent OF the decline II
member banks rediscountS was attrib
uted to a decrease in city bank borrow
ing, but there was a material drop II
country bank borrowing at time of tn
year when banks in agricultural sec
tons normally increase their reds
counting to meet crop planting need
the review asserted.
RediScounts.
At the middle Of March rediScount
for member banks held by the Fedora
Reserve Bank of Richmond were les
than half the amount on March i
last year, but large increase in Gov
eminent security holdings and a small
increase in bankers acceptanceS wer
| noted.
Twelve mutual savings banks In Bal
timore had aggregate deposits totalin(
$l91, 063,5 at the end of February
| the highest figure on record, compared
with 90,250,2 1858 on January 81 thl'
| year and $187, 823, 1892 on February %
| 1929. Time deposits in So reporting
| member banks on March IL, 1880, to-
tailed $240, III 900, practically the same
| figure reported on February IL thi:
| year, but somewhat less than $244, 1885,
| 600 of time deposits in the same banks
| on March Is last year, it was noted.
| Bankruptcies of business firms ir
| February numbered las, compared with
| 128 In February 1929, a lower record