Evening star., 1935-01-05
TRADE TOPS 1883
IN LEADING LINES
Fifth District Report Also
Stresses Return of Faith
in Banks.
BY EDWARD c. STONE.


ton, chairman and Federal Reserve
agent. announces that the year just
closed witnessed improved trade in
son with 1888.
In contract with the previous year,
he says. banks had no trouble and
the public demonstrated confidence in
them by notably increasing deposits,
this being partly due to the law
whereby deposits are insured up to
certain point.
In spite of continued unemployment
on very extensive scale, retail trade
during 1884 was much better than in
1888, wholesale trade followed retail
trade upward. commercial failures
were at very low level, collections
were distinctly improved, sales of both
new and used automobiles exceeded
those Of the preceding year, and farm
ers received more money for their
crops than in any recent year.
Tobacco growing sections benefited
by improved conditions more than
Others. but cotton and other farmers
also shared in the high returns from
agriculture.
Recent Changes Seasonal.
Most of the developments in fifth
district business between the middle of
November and the middle Of Decem-
Der were seasonal in character. Chair
man HoXton adds. In banking, re-
discounts at the Federal Reserve Bank
of Richmond increased very slightly,
after a steady decline over many
months. The bank also increased in
duStrial advances and commitments,
extended under section 13-B of the
Federal Reserve act Federal Reserve
notes increased seasonally during the
past month, but less than occurs in
most years.
Reporting member banks showed lit
tie net change in outstanding loans
between the middle of November and
the middle of December, but deposits
showed a moderate decline, partly due
to Withdrawals for tax paying and
holiday buying. Debts to individual
accounts figures in four weeks ended
December ~ showed a seasonal in
crease in comparison with debts in
the preceding four weeks, ended No
vember IA, and exceeded by 10 per cent
debts in the corresponding four weeks
last year.
Employment continued unSatiSfac-
tory. but in the cities there seemed to
be somewhat less than a seasonal in
crease in unemployment. Coal pro-
duction in November, figured on
daily production basis, exceeded pro-
duction in either October, 1884, or
November, 1888. Business failures in
the fifth district we're fewer in num-
md ~ jah
Der, 1884, than in either October, this
year. or November, last year.
Textile mills continued operations
at practically full time during Novem-
Der, and cotton consumption exceeded
that Of November, last year, when mills
restricted output in order to counter
act overproduction earlier in 1888.
Auction tobacco markets handled less
tobacco than in November, 1888, but
the cash returns from sales this year
were much larger than returns last
year. Tobacco manufacturing in 10
Vember was about 35 per cent above
November, 1888, cigarettes accounting
for most of the increase.
Yule Trade Best Since 1929.
Mr.. Hoxton reports that construc-
ton work continues to lag, although
the Government is stimulating some
repair and alteration work In Wash
ington ATT building permits were is
sued in November against 387 in No.
vember, 1888. The valuation of these
permits was 81 ,643.56 against only
S588.235 in November. 1888. In the
entire District valuation of the per-
nits issued was 927 per cent above
the low total in November, 1888.
Retail trade in November exceeded
the volume of trade in November 1888,
by more than II per cent, and pre-
liminary reports indicate that the first
half of December witnessed the largest
volume of trade since 1929 Whole
sale trade, while seasonally below the
level of October in all lines for which
figures are available, was well above
the level of trade in November, 1888.
Through December 12, the Federal
Reserve Bank of Richmond received
271 applications for loans direct to
industry totaling $9,922 900, of which
"a loans totaling S5,148,00O were rec
commended by the Industrial Advisory
Committee, with or without conditions,
and 80 applications for 81 ,551 900 are
still under consideration. OF the IA
loans recommended by the committee,
70 were approved by the Federal Re-
serve Bank of Richmond, and 81 ,367,-
900 was actually advanced to bor-
roWers.
Time deposits in % reporting men,
ber banks and aggregate deposits in
II mutual savings banks totaled $328,-
105,896 at the end of November, 1884,
q lower figure than S329,235,051 re-
ported at the end of October this year
but above S311, ,706,039 on November
80, 1888. The decrease occurred in
reporting member banks, the mutual
savings banks showing small increase
in deposits. Both member banks and
savings banks reported increased de-
posits during the year, the report says.
Early Closing Well Started.
The 2 o'clock closing rule adopted
by all the Washington banks is now
well started, after going into effect
January 2, following action by the
Clearing House Association. Notices
of the change in time were inclosed
in many of the December monthly
statements, while some banks gave
notice through the newspapers.
The Saturday schedule remains the
same as 1t has been, with the banks
closing at IL noon. On Government
pay days, on the 18th and last days
of each month, the banks will remain
open until $50 in all departments.
This means that customers can visit
the trust departments. pay notes, use
their safe deposit boxes or do any
other banking in which they may be
interested.
Frederick p H. SiddonS, president
of the District Bankers Association,
who was called to Florida by the
tragic death of relative in an auto
mobile accident, is expected back at
his Office in the American Security
g. Trust Co. on Monday.
Carl Bergman, president OF the
District of Columbia Building g. Loan
League, which comprises 19 associa-
tions, is another financier who is op-
-