Evening star., 1933-10-05
CREDIT EXPANSION
DRIVE CONTINUES
Richmond Reserve Bank
Adds to U. S. Bond Holdings
by s7,713,00O.
BY EDWARD c. STONE.

Richmond is still buying Government
securities to assist in expanding credit
Is revealed in the latest monthly re-
view of credit. business and agriculture,
Just received here. Government Securl-
ties held by the Richmond bank on Au-
gust Is of this year totaled $50 ,258 600
end on September IS had increased to
1871 900, an increase of S7,7l3,0O0
during the month
Debts to individual accounts figures
il five weeks ended September l3,
1888, showed 10 per cent decrease IN
comparison with the preceding five
weeks ended August g. but made ia
yorable comparison with debts for the
corresponding five weeks last year, II
OF % reporting cities showing higher
figures for the 1888 period. Commercial
failure figures for August were much
better than for August, 1882, in both
number of inSOlvencieS and liabilities
involved. and the fifth district record
compared favorably with that OF the
Nation.
The employment situation in the dis
trict is much better than in the first
hal. of this year and appears to be still
improving. Coal production in August
showed a seasonal increase over July
production and exceeded August, 1882,
production by wide margin.
Jump in Wholesale Trade.
Wholesale trade also showed marked
improvement in comparison with the
volume of trade in August last year.
Wholesale trade has improved so much
curing the past three months that Gu
mulative sales for the eight elapsed
months of this year in groceries, dry
goods, shoes and hardware have passed
To- f@r h.
months of 1882. In agriculture, pros
poets for yields in the fifth district are
good this year and much larger money
returns to farmers seem assured.
Tobacco markets in the lower section
of the district opened in August with
prices slightly better than those OF
1882. The tobacco crop in the fifth dis
trict is so much larger than last years
crop that even if no further advances
are made in prices the farmers will re-
ceive much larger money return from
this years sales. The districts cotton
crop is about 3 per cent smaller than
that of 1882, but this years price at
the middle of September was 25 per cent
higher than ths price last Fall and
cotton farmers will therefore receive
more money for this years crop.
The Richmond banks portfolio OF
open market paper, which has been
very small for some time, declined by
$4,000 during the past month, but
holdings of Government securities in
creased by S7,713,000. Total earning
assets of the Richmond Reserve Bank
therefore rose by S5,695,000 between
August Is and September Is. Federal
Reserve notes in actual circulation rose
seasonally last month. by 81 1.697000, al
though the increase was not as large
as in most years. Member banks de-
creased their Reserve deposits at the
Federal Reserve Bank of Richmond by
S2,430,000 during the month"; but at the
middle of September Reserve deposits
were far above the required level.
Marked Changes During Year.
A comparison of the condition figures
for September Is, l933 with those re-
ported for September Is, 1882, shows
marked changes in nearly all items. Re-
discounts for member banks declined
S13,103.000 during the year, and hold
ings of open market paper dropped by
S2256O00, but Government securities
held by the Federal Reserve Bank OF
Richmond increased by S20.838,000,
bringing a net gain of S5,479,000 in
total earning assets during the year.
The circulation of Federal Reserve
notes rose by $34,129,000 between Sep
tember Is last year and this, and mem
ber bank Reserve deposits increased by
S18,335 900. most of the rise in Reserve
deposits rejecting surplus funds in pos
session of the member banks.
The changes mentioned in the state
ment raised the cash reserve of the
Richmond bank by s48, $4,000 during
the year under review, and also raised
the ratio of reserves to note and de-
post liabilities combined by 7.44 points,
the report concludes.
Trust Company Votes Dividend.
The board of directors of the Wash
ington Loan g. Trust Co. at the monthly
meeting yesterday declared a quarterly
dividend of per cent, payable Novem-
ber /. to stockholders of record october
"a Books will be closed for transfer
from October "a to November l, in
elusive. President Harry G. Meem an
nounced today. This is the regularly
quarterly payment.
Gilbert N. Burdett and Henry w.
Brewer. members of the New York
Stock Exchange firm of Laidlaw & Co.,
passed yesterday in Washington inspect
ing the new offices of the firm recently
opened at 727 Fifteenth street, under
the management of G. Bowie Chapman.
The partners expressed themselves as
pleased with the handsome quarters and
layout of the local offices.
w. P. Stagg, Columbus, Ohio, inSur-
ance leader, told the Washington Life
Underwriters Association yesterday that
many people are now buying life in
surance as an investment. In 1923, he
said, cents out Of each 81 was
invested in life insurance, while at pres
ent about 7 cents of each 81 is so in
vested, increased interest in annuities
being the chief cause of the gain.
Thomas P. Morgan, jr.. president of
the local association, called attention
to the surprising gain in life insurance
in force in Washington at the end Of
1882, the increase being better than in
any other section of the United States,
he said. New insurance in this city
last year totaled over SOS ,000,0 900. while
$5,653,651 was paid out in benefits.
Heard in Financial District.
Thomas j. Groom vice president and
cashier of the Bank of Commerce &
Savings, was one of the unofficial repre-
sentatives of the District Bankers Asso-
citation at the first two world series
ball games in New York Karl w.
Corby partner in W. B. Hibbs & Co..
was another local flnancier who took
in the opening contests.
Sales of the F. W. Woolworth Co. in
September were 1l2 per cent better
cAioAi 1Ai OSPGNAlOSi q ySdl 4llSlC WcIc
five Saturdays this year. against four
last September. Sales for the first 9
months of 1888 are per cent behind
the same period in 1882
Stockholders of Virginia Carolina
Chemical Co. will vote at annual meet
ing October IL on proposal to reduce
outstanding 7 per cent cumulative prior
preference stock by 84,87l shares, this
amount being held in treasury.
Capital Traction SIS sold in $500 and
$1,000 denominations on the Washing
ton Stock Exchange today at SIS. up i
point. Washington Gas S. 1860, figured
in $1,000 transfer at 1041a.
SILVER QUOTATIONS.
NEIN X0PK OntnLnr Id d.