Evening star., 1934-10-04
SMALL RISE SEEN
IN BANK LOANS
Upturn of Only 1888, 900 Re-
veaIed for Fifth Reserve
District.
BY EDWARD C. STONE.

w. w. f1OAUOll dsCilI VI OAlC ASNSAoA
Reserve Bank of Richmond, reported
today that during the four weeks be-
tween August is and September II,
the reporting banks increased their
loans by s333,oO small rise in view
of the fact that at this season mer-
chants usually call upon their banks
for loans with which to discount bills
for Fall goods. Loans on stocks and
bonds rose S51 900 last month, while
all other loans rose by S282 900. The
reporting banks increased their IN
vestments in securities $4,000 between
August Is and September II.
Aggregate reserve balances of the
% banks at the Federal Reserve Bank
rose by $5,386,000 during the month,
and cash in vaults increased by
sl.807,OOO. Demand deposits rose by
S8.752. 900 since the middle of August,
but there was a small decline in time
deposits amounting to S358,000. None
of the % reporting banks were bor-
rowing at the Federal Reserve Bank
during the past month.
On September 13, 1888, all figures in
the combined statement of the re-
porting institutions were smaller than
figures on September II, 1884, except
the loan and rediscount figures. Total
loans declined S12359,000 during the
wear. of which S2,132 900 was in loans
on securities and S10.227,000 was in
all other loans. RediscountS at the
reserve bank dropped from S268.OOO
borrowed by two of the reporting
banks on September 13, 1883, to
nothing on September II, 1884.
On the other hand the banks built
I'D their reserve balances at the Fed
eral Reserve Bank by S30,118,000 dur
ing the past year, and also increased
their investments in securities, chiefly
Governments. by S26,075000. Cash IN
vaults rose by S2,l65,000. Aggregate
deposits increased S52,450,000 between
the middle of September last year and
this. demand deposits gaining SAT, 1884,
600 and time deposits s4,666,0OO.
Construction Shows Upturn.
Recent weeks have witnessed some
improvement in construction, Agent
Hoxton states, although work con-
tinues in relatively small volume IN
the fifth district. His reports says IN
detail:
Building permits issued in August
in 80 leading cities OF the NTH Re
serve district numbered zoos, COM
pared with 1882 permits issued in
August, 1888, ar increase of lL6 per
cent this year, and estimated valua-
ton figures for last month totaled
S3.255, ,So7, an increase of 94.4 per cent
in comparison with valuation figures
totaling sl,675 ,062 in August last year.
TWenty-one of the 80 reporting cities
showed higher valuation figures for
the 1884 month Among the five larg-
est cities, Baltimore, Washington,
Richmond and Norfolk, increased,
while Charlotte decreased. Columbia,
S. c., made the best record in esti-
mated valuation figures in August,
1894, population of reporting cities
being taken into consideration.
Contracts awarded in August for
construction work in the fifth dis
trict, including both rural and urban
projects, totaled S12,11O,7l4. compared
with $6.l56,503 awarded in August,
1888, according to figures collected by
the F. w. Dodge Corporation. OF the
awards in August this year, $780,
354, or 149 per cent, was for resi-
dental work, while last year residential
contracts totaled 81 1,930,773, or 3l.4
per cent of all awards in August.
Winter Outlook Better.
Demand deposits rose last month,
but time deposits we're slightly lower.
Fewer commercial failures we're re-
corded, both in number and liabilities.
Employment was practically un-
changed.
Coal production is enjoying a sea-
sonal rise, while tobacco prices are
practically double those of last year,
greatly enlarging the purchasing power
of tobacco farmers.
The advance in cotton prices has
been ample to effect the reduced pro-
duction, Mr.. Hoxton announced. The
outlook for Winter business appears
better than year ago.
In agriculture, prospects for per
acre yields in the fifth district are
excellent this year, composite crop
condition figures on September l for
all States in the district being above
the 10-year average, with South Caro-
lima showing the highest figure for
the entire United States.
Housing Loans Expanding.
Information obtained in the f1nan-
cial district today indicated that the
District Bankers Associations special
two weeks advertising campaign is al
ready bringing about an increased de-
mand for loans for property improve
mentS
just now the banks here are calling
attention to the opportunities of bor-
rowing money for both home and busi-
ness building improvements and urg-
ing residents to take advantage of
the chance to make their properties
more valuable.
While figures we're not available to-
day to show how much of an aggregate
increase has been made in loan ap-
plications and loans granted, the pick
81 up has been gratifying. 1t is under
' stood that the banks as a group have
already made about 200 renovizing
loans involving somewhere around
100000 worth of work which other
wise might never have been started.
Frederick P H. Siddons, president of
the District Bankers Association, and
Francis G. Addison, jr, the bankers
representative before the National
Housing Administration are much
pleased with the increase in loan ap-
plications Both see great benefits to
the city in the amount of work that
will eventually be carried out.
Underwriters Open Season.
Members of the District of Colum-
bia Underwriters Association held
their first Fall meeting and luncheon
at the Willard Hotel this noon. NAL
colin Adam, a high official in the
Penn Mutual Life Insurance Co., was
the guest speaker. President F. George