Evening star., 1933-12-05
{ 15,O)Q,0)O ADDED
T0COTT0N INCOME
noServe Bank Also Reports
Other Marked Advances
in Fifth District.
BY EDWARD c. STONE.


eral Reserve Bank of Richmonds
:,-onthly review of credit, business and
--ricultural conditions in the fifth dis
t-ict. in October and early November.
.oceived here today, reveals a gain of
y 5000 900 in cotton growers incomes.
agent William w Hoxton also reports
that tobacco growers will receive at
asst double as much for their 1888
c.Jp as they did last year. The review
explains:
Perhaps the most marked improve
71ent in basic conditions in the fifth
strict is IN cotton and tobacco grow
t'g sections In spite of a greatly. re-
Juced acreage this year, cotton pro-
tlction in the Carolinas and border
ccunties of Virginia exceeded produc-
ton in 1882, and the price this year
has been sufficiently improved to add
IN the neighborhood of Sl5000,000 to
the income of cotton growers in the
t,lree States. The tobacco crop of the
district is between rs and 80 per cent
'7rger than the crop of 1882.
and prices this year are also about 20
Ger cent or more above prices last year.
The growers Will probably receive at
least twice as much for their 1888 to-
Wholesale trade was in larger volume
han in October, 1882, in all five lines
or which figures are available, the in
2reaSes in dry goods and hardware be-
ng especially notable, and wholesale
collections were better than collections
) year ago in every line reported upon,
Mr.. Hoxton adds
Reserve Bank assets Gain.
Total earning assets of the Federal
Reserve Bank of Richmond rose by 81
$4,000 between the middle of October
md the middle of November. Redis-
counts for member banks declined by
2098.0 during the month. but the
>ortfolio of open market paper rose by
250.000 and the bank increased its
holdings of Government securities by
100000. Federal Reserve note cir
~ulation increased seasonally during
he past month, rising by S2,85l 900,
md member banks further increased
their reserve balances at the Reserve
bank, raising them by S9,680,00 be-
5ween October IS and November Is.
Member bank reserves are far in excess
ST legal requirements. The several
changes mentioned in the Statement
with others of less Importance, raised
The cash reserves of the Federal Re-
;erve Bank of Richmond by S12,443.000
between the middle of October and the
middle of November, and increased the
alto of reserves to note and deposit
liabilities combined by 2.52 points.
In comparison with condition figures
reported on November Is, 1882, the cor
-"esponding figures for November Is.
1888. show material changes in nearly
III items. Total earning assets OF the
Richmond Reserve Bank rose by S18,-
385 %w 600 during %w the year g IT, due entirely to
Government securities, when more tnan
cffset dec6lases of s11.492 900 in re-
}n0 1SeountS " 10 for = nsmber banks ano sl.453..
'aper. Federal Reserve note circulation
t the middle of November this year ex-
eeded the circulation Of year earlier
" S46 8o8, 900.
Member bank reserve deposits rose by
81 $50, 900 during the past year, due to
xcess reserves now being carried by
rlember banks at the Reserve bank.
he several changes in the statement
asulted in an increase in total cash
eserves amounting to 500, 100000 be-
ween November Is, 1882, and November
5, 1888, and caused rise of 7.35 points
I the ratio of note and deposit liabili-
.es combined.
Member Banks Increase Loans.
The % reporting member banks, Agent
-oXton says. increased their loans by
2.157.000 between october IL and No
amber Is, both this year, a seasonal
.se in all other loans" amounting to
3.T78,000, more than balancing a de-
line of Sl,62l 900 in loans on securities.
I banks in the larger CenterS borrow
lg by merchants to discount bills for
all merchandise at this season usually
xceedS liquidation of Indebtedness by
armers as a result of marketing of
gricultural products. Investments in
9curities, chiefly Government obliga-
ions, rose by S1,546,000 during the
lonth.
Aggregate deposits rose during the
)eriod under review, an increase of
100000 in demand deposits more than
fsetting decrease of S423 900 in time
spositS. The decline in time deposits
more than accounted for by transfer
Christmas savings funds from time
demand deposits after November l.
During the year between November
g. 1882, and November Is. 1888, total
oars in the reporting member banks
ecreased SIS, ,324 900, of which So POT 900
Vas in loans ON securities and S31l7,-
90 was in all other loans Investments
n securities rose by S29.44l 900 during
he year. and aggregate reserve balance
With the Reserve bank increased by S12,-
275,o00. the reserve balance on the
93S date being much larger than actual
requirements.
Other Highlights in Review.
Nineteen of the % cities reported
hinl1ar in fO- bo
period, and, if figures for Baltimore,
omitted the remaining 20 cities would
show an average increase of 1873 per
oentS in debts Price changes during
the past year no DOUBT account for part
of the rise in 1888 debts figures. but
much of the improvement Is due to an
actual increase in the volume of busi-
ness done in the later period.
In the fifth Federal Reserve district,
October, 1888 insolvencies numbered
only IA. and liabilities totaled only
5851 ,565, compared with 119 failures and
liabilities amounting to S1,933,670 re-
ported for October, 1882, decreases Of
80 per cent IN number of failures and
Sc per cent in liabilities for the 1888
month. The district record was better
than the national record in total lla-
bilities involved but was worse than
the national record in the number of
bankruptcies.
The number of failures in the fifth
district in october. 1888, was the lowest
for any October since 1920, and aggre-
gate liabilities were the lowest for any
month since June, 1920.
Public works projects largely designed
to give employment are getting started,
n
ytruction work. chiefly in residential
building Conditions in labor circles
are, of course, still far from satisfactory,
but distinct improvement has been
made in recent weeks and labor is much
better employed than was the case a
year ago. Mr.. Hoxton concludes.
Cleaned in Financial District.
The telephone was kept buzzjng this
morning while Lanier P. McLachlen,
president of the McLachlen Banking
ay,I 81 rl.,y -