Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-12-03
HOARD|NGREDUCED
; IN FIFTH DISTRICT.
Agent Hoxton Reports Funds
Being Returned to Meet
Demands of Trade.
BY EDWARD c. STONE.


sees evidences of improved basic con-
iitions" in the fifth district, in his
monthly review of credit, business and
agricultural conditions. Seasonal in
creases in trade are noted and de-
velopments indicate that boarded money
Is being returned to circulation.
Agent Hoxton states that demand
deposits in reporting member banks
increased between the middle of Octo-
Der and the middle of November, in
spite of decline in loans during the
same period. Further. the actual cir
culation of Federal Reserve notes of
the Richmond bank declined last
month, while ordinarily circulation rises
several million dollars in late october
and early November
Since other indicators show a sea-
sonal expansion In trade, with a re-
sultant need for more money with
which to transact business, the in
creased deposits and decreased circula-
ton show that additional funds are
coming into trade channels from
sources outside the banks.
RediScountS for member banks at
the Federal Reserve Bank of Richmond
declined slightly, liquidation of agri-
cultural loans in country banks ex-
ceeding the needs for commercial credit
at city banks. Savings deposits in
mutual savings banks increased in
October, and time deposits in report
ing member banks remained practically
unchanged.
Hoarded Funds Being Used.
The most interesting change In the
statement Is in the volume of Federal
Reserve notes in circulation, a decrease
of S2,072, 900 occurring at a season
when circulation is expected to increase
several millions Of dollars. The decline
probably indicates the return Of money
to- trade channels from boarding in
sufficient amount to provide for in
creased needs for money on account
Of Fall trade, Mr.. Hoxton adds.
A comparison of the November Is.
1882. figures in the statement of the
Richmond Reserve Bank with those of
November IS, 1881, shows the same ma
terial differences recorded in other re-
cent months.
The volume Of Federal Reserve notes
IN actual circulation decreased 1881, :
600 between November is last year and
this November is, 1882, being the first
midmonth date in q year which showed
lower circulation figures than the cor
responding date of the preceding year.
Since the Fall Of 1881 circulation has
been exceptionally high as a result Of
boarding, but 1t appears that during
October and November much money
was returned to circulation.
Member bank reserve deposits de-
creased $5,245,000 during the year. due
in part to lower deposits against which
reserves are carried and in part to a
reduction in the number of member
banks. Cash reserves of the Federal
Reserve Bank Of Richmond rose ST.
100000 between November Is, 1881,
and November IS, 1882, and the ratio
OF cash reserves to note and deposit
liabilities combined rose 7.94 points.
~ Savings Deposits Increase. S..
Time deposits in 40 reporting mem
Der banks and aggregate deposits in IL
mutual savings banks in Baltimore
totaled $438, $3.50, 140 at the end of Oc-
tober, 1882, higher figure than s437,-
821 1851 reported at the end of Sep
TENDER this year, but materially less
than the total of $45l ,914,o81 at the
end of October, 1881.
Savings deposits increased in mutual
savings banks last month, but time de-
posits declined slightly In reporting
AlCAibCl 0d1lhc, bkiC QCCilllC UClllk OuE 10
the transfer of Christmas savings funds
from time to demand deposits early in
November.
A comparison Of the total of $77s,-
$4,000 In debts reported for the four
weeks ended November 8, 1882, with the
total reported for the preceding four
weeks, ended October IL this year,
shows decrease of $50, 282 900, or "a
per cent. A decline during the more
recent period Is seasonal, due to heavy
payments of dividends and interest on
October /, but the decrease this year
was somewhat less than normally &C.
ours, Agent Hoxton asserted.
Weeks Bank Ciearings Lower.
Bank, clearings in Washington FOL
the week ended November so totaled
S12, 781 900 against s16,075, 900 in the
previous week and 48 per cent below
the same week last year. The sharp
drop is mainly due to the Thanksgiving
holiday.
All other cities were hit the same
way. Richmond reported clearings O.
S24, 1892 900 compared with $29 1892 ,00t
for the week ended November % ane
off 80 per cent from last year. Balti-
mere cleared s44,s74,O00 against $50.
261 900 in the previous week and dowr
80 per cent from last year. Norfoll
clearings were also far under the the
preceding week, as well as way behind
last year in the corresponding week.
Bank clearings In Al leading cities ir
the United States for the week ended
November 80 totaled $500 ,917 900, II
per cent under the previous week anc
much lower than the same week a veal
ago. -+..f
Heard in Financial District.
Eliot H. Thomson of the Washington
Lean g. Trust Co. gave very inter
esting address on the benefits Of tn,
Christmas savings clubs, before the Ad
vertising Club of Washington yesterday
Arthur A. Ballantine, Undersecretar,
of the Treasury, will address the Bone
Club of New York, December 10. at tn
Bankers Club
The General Electric Co. has declaret
the regular quarterly dividends OF II
cents on the common stock and /!
cents on the special $40 par stock, boil
payable January rs to stock of recor'
December l6.
Gov. Meyer Of the Federal Reserv
Board held a conference a few day
ago with the directors of the Mime
apolis Reserve Bank on the genera
agricultural and credit situation.
Other Financial Notes.
The third-quarter reports show tina
adjustment of costs to the price LEVI
has at last caught up with the recessio
in volume and price for good humble
of the industrials, says the Alexande
Hamilton Institute.
Loans either actually made and out
standing or authorized by the Railroa
Credit Corporation to railroads to met
their fixed interest obligations totale
$3S, 004, O82 on December l, 1882, &C
cording to the monthly report Of ths
corporation filed with the Interstat
Commerce Commission.
The wholesale food price index, 9
compiled by Bradstrset's Weekly. de
clined / cent following three successi'
gains which totaled Q cents. The inde
for November 20 is Sl.72. compared wit
Si73 for November %. A year ae
these 81 food articles had total prit
per pound of $2.05.