Evening star., 1933-11-11
D. C. BANK DEPOSITS
CLIMB S14,3Gl,429|
Capital Financiers Pleased
With Progress Made Here
in Last Ten Months.
BY EDWARD C. STONE.

to information brought to light since
the controllers condition call, as of
October 25.
On December 81, 1882, deposits in
the Capital national banks, savings
banks and trust companies totaled
02,843, ,145.09. The controllers next
call came on June 80, 1888, and showed
$212,904, ,324.15 on the books of these
financial institutions, and revealing a
gain in the six months between the
two condition statements Of $l0,056,-
1906
Reports since the call of October 25,
have raised total deposits in the Capital
to $217 ,20S, ,574.16, an increase since the
June call of $4,3O4, ,25O.01. Added to
the more than $l0,000,000 advance in
the first half year, the total gain for the
period of practically 10 months becomes
$l4,360, ,42907.
The figure is really larger than this
sum as several banks report that they
now have larger deposits than on the
date of the last call. Considering gen.
efal business and economic conditions,
bankers call the improvement gratifying.
While the amount of the gain Is only
modest, the fact that the trend is up
ward is what causes the most favorable
comment.
Better 1894 Business Seen.
In his recent talk in Washington on
the Commodity Price Outlook" Henry
H Stafford. Babson statistician, said
exceed last years by about Is to 20 per
cent. Moreover, many concerns long in
the red are now making profits again
and the advance in security prices will
benefit another important group Of
consumers With consumer purchasing
power on the upgrade, the outlook is for
increased buying of commodities in 1884,
which will help prices.
AS regards the business trend, he
said the tide turned a year ago and
there would have been some recovery
this year without stimulation from
Washington. However, with the admin
iStration throwing the entire resources
of the country back Of its recovery
drive, the business upturn has been
greatly speeded up.
The outlook for better business next
year constitutes another factor favor
able to higher commodity prices.
Changes in Richmond Holdings.
In comparison with condition figures
shown in the Federal Reserve Bank OF
Richmond's statement for october Is,
tober Is, 1888, show material changes
in nearly all items. Rediscounts for
member banks declined by $ll,335, 900
during the year and holdings of open-
market paper decreased by 1913 900,
but these were more than offset by an
increase during the year of $27,070, 900
in Government securities owned, and
total earning assets therefore rose byi
S13,82o, 900.
The volume of Federal Reserve notes
in actual circulation on the 1898 date
was much higher than the volume out
standing a year earlier, an increase of
$43,8s5, 900 being shown. Member
banks, with surplus funds on hand this
year, increased their aggregate reserve
balance at the Federal Reserve Bank Of
ber Is, 1882, and October Is, 1888.
Cash reserves of the Richmond bank
rose by $53,143, 900 during the year and
the ratio of cash reserves to note and
deposit liabilities combined rose by 4.3l
points
American Stores Sales Gain.
Sales of American Stores Co. for the
four weeks ended October % totaled
$8,564 1892, against SO, ,305, 1923 year ago,
an increase of 81 per cent.
Sales for four weeks ended September
80, 1888, showed an increase of IL per
cent as compared with corresponding
period of preceding year.
National Dairy Products Co., in which
there Is much local interest, has de-
clared the regular quarterly dividends
Of 80 cents on the common stock and
$l.75 each on the class A and B prefer
red stocks, all payable January 2 to
stock of record December 4.
Thomas H. McInnerney, president,
stated earnings in the first nine months
covered the full years dividend require
ments Of $1.20 share.
Note Ruling Aids State Banks.
Capital notes and debentures issued
to State banks are eligible as capital Of
such institutions. thus aiding banks in
20 States where preferred stock may not
be issued, and where capital notes or
debentures must be used to increase the
capital structure of financial institu-
tionS, according to ruling by Harvey
G. Couch of the Reconstruction Finance
Corporation, on behalf OF the non-
member preferred stock board.
1t is the intention of Reconstruction
Finance Corporation, the Federal Re
serve Board and the non-member pre-
ferred stock board to suggest to the next
Congress the advisability Of clarifying
the law to carry out the Interpretation
which has just been put into effect.
Heretofore the Federal Reserve Board
has specified that non-member State
banks wishing to qualify for member
ship had to have unimpaired capital
equal to the capital required of national
banks located in the same city. The
emergency banking act specifies that
preferred stock should be regarded as
capital.
member State banks which avail
themselves Of the opportunity OF selling
capital notes and debentures TO the Re-
construction Finance Corporation will
not only be assisted in qualifying for
Federal deposit insurance, which takes
effect January /, 1884, but will at the
same time prepare themselves for en-
trance into the Federal Reserve System.
which the deposit insurance act pro-
vides must be done by 1886.
Cleaned in Financial District.
Ernest E. Norris has been elected
director in the Southern Railway and
In the Alabama Great Southern Rail-
way Co. to fill vacancies caused by the
death Of Henry w. Miller. Mr.. Norris
is operating vice president Of the South
ern.
The Atlanta Federal Reserve district
made the best trade record in October
of any of the IL districts, reporting an
advance of IL per cent in sales over
October, 1892. Dallas and Cleveland
came next
Robert G. Baldwin, receiver for the
Commercial National Bank, will COM
mence distribution of checks next Mon
day IN payment of 80 per cent divi-
dend to the $4,000 depositors Of the
institution. When distribution Of the
dividend is completed it will make
total Of so per cent paid creditors, in all
about $4,000, 900.