Evening star., 1935-04-04
INDUSTRIAL LOANS
REACH $3,4I,0OO
Richmond Reserve Expands
Volume of Direct Aid
During Month.
BY EDWARD C. STONE.

credit and agricultural conditions In
the fifth Federal Reserve district,
Chairman w. w. Hoxton of the Rich
mond Reserve Bank reports that up
to March IS the Reserve Bank had
made $3,476,000 direct loans to in
dustry for working capital under au-
thority of section 13-B of the Federal
Reserve act. This figure covers the
period since such loans were inau-
gurated. Between February Is and
March Is, the Richmand bank ex-
tended these industrial loans by $654,-
900.
Chairman Hoxton declares that the
outstanding feature in the business
picture during February was the in
crease in the volume of retail trade
as reflected in department store sales.
Not only were fifth district sales Is
per cent ahead of last year, but Feb
ruary sales in 81 leading stores were
ahead of January, this year. most
unusual record for this short be-
tween-Seasons month"
Another high spot brought out in
Agent Hoxtons detailed report, shows
that the commercial failure record
was the least unfavorable of any OF
the II Reserve districts, 80 business
insolvencies being reported with ag-
gregate liabilities of only S805,698.
Employment conditions failed to re-
veal any material improvement in the
second month of the year. Coal
mined was up IL per cent over last
year; textile mills consumed more cot
ton, but by the middle of March there
were signs of restricted operations, the
review adds. 1t was the quiet season
in the tobacco markets; tobacco prices
continued satisfactory and cigarette
manufacturing remained ahead OF last
year
Banks Earning Assets Grow.
Total earning assets of the Federal
Reserve Bank of Richmond increased
by S1o,6s2 900 between February IS
and March Is, both this year, OF
which amount s10000,000 was the
banks share in system purchases OF
Government securities, Agent Hoxton
said.
Industrial commitments on loans
made by member banks rose by $685.
900 between February Is and March
IS. each commitment being an agree
ment to assume liability on a certain
loan at the option of the lending
member bank during the life of the
commitment. There was a seasonal
decline in the circulation of Federal
Reserve notes amounting to S1,267,-
900 between February IS and March
Is. but member bank reserve deposits
rose by S1,905,000 during the same
period.
In comparison with condition
figures reported for March Is, 1884,
the corresponding figures for March
Is, 1885, show material increases in
most items. Rediscounts for men,
Der banks declined during the year
by $l,767,000, and the portfolio Of
open market paper dropped by $685.
900, but ownership of Government
securities increased by $4,000, 900.
On the 1885 date the bank mad So
476,000 in loans to industry for work.
ing capital outstanding, and also had
$1,000 outstanding in foreign loans
on gold, whereas a year ago the bank
had no loans of either type.
The changes in earning assets re-
suited in net rise for the year
amounting to S20,727 900. Federal Re-
serve note circulation at the middle
of March this year showed an in
crease of $6,418,O00 over outstanding
circulation a year earlier, and men,
Der bank reserve deposits rose by S42,-
509,000 during the year. Total cash
reserves of the Federal Reserve Bank
OF Richmond rose by $32, ,807 900 be-
tween March IS, 1884, and March IS,
1885.
Banks Gain in Deposits.
The % reporting member banks
the report reveals, increased their in
vestments jl securities by S8,833, 900
during the month, but their reserve
deposits at the Federal Reserve Bank
declined by S4,182 900. Cash in vaults
declined S240,000 between the middle
OF February and the middle of March
Deposits in the % banks rose Sl,184,-
600 last month, demand deposits
falling Sl35,000 and time deposits
rising $1,319,000.
Time deposits in % reporting banks
and aggregate. deposits in II mutual
savings banks totaled $685., ,O36,766 at
the end of February, 1885, a higher
figure than either S333,037,189 re-
ported at the end of January this year
or 1920, ,697, 1855 at the end of February
last year. Both the reporting member
banks and the savings banks gained
in deposits during the past month,
and both also registered gains for the
year.
Total debts in reporting cities
during the four weeks ended March
l3 amounted to $874,206,000, an in
crease of $38, ,799, 900, OF. 46 per cent,
over debts totaling $685., ,407, 900 re-
ported for the preceding four weeks
ended February 49, Closing of tobacco
markets tended to decrease debts
during the later four weeks, but early
payments of income taxes and pay
ment for Spring merchandise more
than offset that adverse factor. Four
teen OF the % cities, including WASH
1ngton, show higher figures for the
more recent period, Mr.. Hoxton an
bounced.
Trust Company Votes Dividend.
Directors of the Washington Loan
& Trust Co. at the monthly meeting
yesterday, declared a quarterly divi-
dend of per cent, payable May
to stockholders of record on April %,
President Harry G. Meem announced
today.
George L. Starkey, president of the
National Bank of Washington, left
the city today for a To-day visit at
Atlantic City. He went my motor and
may extend the trip before returning
to the bank.
John M Riordon, executive vice
president of the Bank of Commerce
& Savings, who has been taking a
rest at the Washington Sanitarium,
Takoma Park, Is doing well and is
glad to see friends. He has been con-
nected with the bank ever since it
was founded and has an enviable
banking record.
Richard Hatton, financial editor of
the Washington Herald, returned to
the banking district today after a
trip to Mount Pleasant, Iowa, where