Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-06
DECREASE IN BANK
LOANS IS REPORTED
Fifth District Reserve lnsti-
!. tutions Also Increase
Deposits.
BY EDWARD C. STONE.

Yifty-two member banks In the Fed
efal Reserve Bank Of Richmond de-
creased their loans during the past
month, but increased their deposits
nearly 100000. Details received here
today from Reserve Agent william w.
reporting member banks decreased their
loans on stocks and bonds by $4.s35, 600
between June II and July IS this year,
and their agricultural, commercial and
industrial loans declined by S7,746,000,
q total drop In loans and discounts OF
1881 900. Contrary u the usual
course, deposits did not decline corre-
gpondingly to the decrease In loans, but
actually increased during the month,
demand deposits rising Si03l 900 and
time deposits increasing $4,7l4,000. The
81 banks increased their investments in
securities by "A, e05, 900 between June II
and July rs, and also built up their re-
serve deposits at the Reserve Bank by
S2,542, 900. Cash In vaults declined
the banks reduced their rediscounts at
the Federal Reserve Bank Of Richmond
By 81, see 900.
Comparison Of the July Is, 1891, fig
ures with those for July is, 1880, shows
a continuation Of O marked shift from
loans to investments for the funds OF
the reporting institutions. Total loans
and discounts in the 81 banks dropped
eco, 325 900, or nearly 10 per cent, dur
ing the wear, and at the same time in
veStments in stocks and bonds rose by
sac ,20s, 900, approximately 20 per cent
Demand deposits also declined during
the wear. but the decrease was only
Si6.105 900, or 4.6 per cent, and was
more than compensated for by an In
crease Of $21. 76s, 900. or 80 per cent,
N time deposits: The, Ine other i,e,. items ms
wear. aggregate Reserve balance with
the Federal Reserve Bank Of Richmond
declining el,a56,O00, rediscounts Of the
reporting banks at the Reserve Bank
decreasing $e5e, 900 and cash In vaults
rising $2,8S3.000.
Earning Assets Larger.
Rediscounts for member banks held
hy the Federal Reserve Bank Of Rich.
niond declined slightly last month, and
on July Is were less than Tediscounts
held 4 year earlier. Tfe banks hold
iuax of Government securities doubled
during the year, however, and therefore
total earning assets Of the RICHMOND
Bank were larger at the middle OF Jniy
than on the corresponding cate N 1sSU,,
Mr.. Hoxton reports.
washington Leads 0ther Cities.
uithe complete report on retail trade
washington again leads al other cities
In the NTH district. As already noted,
the Kain in department store trade here
was 81 per cent over June year ago.
The average for the whole territory was
"a per cent. Baltimore trade was up
2.s per cent, Richmond lost o.6 per cent
and group Of other cities lost s.e per
cent.
Hfth district that reported gain n
retail trade in the f1rst half OF 1881.
This gain was al per cent. The re-
serve district Is q whole was on ~ per
cent, Baltimore was down So per cent
and Richmond trade declined Is per
cent compared With the tirst half o.
1880. A group Of other cities suffered
On IL per cent drop.
Farmers In better Position.
Agricultural developments IN June
able on the whole. and Nlziie the out
look for money crops II not good from y
price standpoint, production prospects
In the fifth district are better than in
average years, and are Tar above those
OF 1880 In the sections Of the district
which we're damaged by the drought last
Summer and FalL IN practically al
sections Of the district farmers have
large acreages in crops used primarily
abba them to get along next Winter on
less cash than they needed last Winter,
when they had very little food for them.
selves or feed for their stock chiefly aA
o result Of the disastrous drought.
LotaI Market MAKES REGARD.
Trading on the washington stock
Exchange today made 4. record for the
Summer, being the liehtest Of any day
since the warm weather struck the Ma
tional Capital. There were Just three
transactions. The frst sale was 10
shares Of Potomac Electric Power 5la
Per cent preferred ct the strong price
Of liist.
The second sale was transfer Of
seven shares of MergenthAler Linotype
at TIN, about the same quotation as
has prevailed In this issue for some
time
The final sale was 10 shares Of Capt.
tai Traction at 40K, same as yesfer-
days quotation and about 3 points un-
der the price Of two weeks ago
Washington bank cieAriags Tor today,
$3.50 oS7 g.