Evening star., 1932-02-06
MANY LOANS PAID
IN WESTERN BANKS
Money Has Come to Min
neapoIis Rapidly During Past
= Few Weeks, Says Survey.
Special Dispatch to The Star.

Special Dispatch to The Star.
MINNEAPOLIS, February 6.-The
ninth district Reserve Bank reports
that customers of country member
banks repaid loans to these banks at
an unusually rapid rate during the
fourth quarter of 1881. This conclu-
sion is based on preliminary tabula-
ton of the loans and investments Of
member banks in the district as of De-
cember 81. In the fourth quarter OF
1881 the reduction in loans to custo-
mers by country member banks was
Sl2700 900; IN the fourth quarter OF
1880 the reduction in customers loans
was Sc. 100000 in the fourth quarter OF
1929 the reduction was only S500000
and in the fourth quarter of 1928 the
reduction was Sl60O00O. OF the loan
reduction by customers Of country
banks during the last three months of
1881, a small part, about 81 100000,
was due to the elimination from the
wear end figures of member banks
which closed during the quarter. An
other small part of the reduction was
undoubtedly due to the writing of OF
certain losses, but even after allowance
for these two factors, the fact remains
from country banks was greater in the
latter part of 1881 than in the same
portion of any of the preceding three
years
Available evidence shows that the de-
crease in deposits of country banks dur
ing the quarter was more rapid than
the decrease in loans. This was evil
denced by reductions in their security
holdings and in balances due from cor
I,V,t NOy NlyC nd Inv lTO
their borrowings from other banks.
Country member banks decreased their
investment holdings Gncluding accept
.anceS, commercial paper, brokers' loans
and securitieS) by $11000000 during
the last quarter of 1881. During ap-
proXimately the same period, the
weekly reports of this bank show that
country member banks increased their
borrowings from the Federal Reserve
Bank nearly S2,000,000. Records OF
the group of city banks which report
weekly to this Office show that corre-
spondent balances for country banks,
including both member and non-mem-
Aber banks. decreased S9000000 during
the last quarter of 1881. The called
reports of these same city banks reveal
the fact that their loans to country
banks, including both member and nom
member banks, increased 81 900 900 dur
Ing the quarter.
~ During the year 1881, loans and in
nVeStmentS of country member banks
were reduced S56O00,000, or II per
cent. Loans to customers were reduced
$34. .OO0, 900 and investments were re-
duced S22000,000. Throughout the
year, country member banks maintained
their investments at higher totals than
their loans to customers.
=" The called reports Of city member
banks in the district do not reveal
clearly the city banking trends Of the
last quarter of 1881. because the depos
its Of a non-member trust company
and a savings bank were absorbed by
one Of these city banks during the
quarter, which enlarged the figures of
the group The figures. as reported,
show an increase of $6000,000 in loans
to customers and a decrease Of Sl4,-
100000 in investment holdings.
3" During the first two weeks Of Janu
airy. country member banks increased
their borrowings from this Federal Re-
serve Bank by small amount, which
was, nevertheless, sufficient to raise
their total borrowings to the highest
figure for any January since 1914.