Evening star., 1935-05-13
26 6bANKS ADDED
IN FIFTH DISTRICT
Annual Richmond Reserve
Report Cites Progress
During Year.
BY EDWARD C. STONE.

and that during the year 26 additional
memberships were registered, of which
81 were newly-organized national
banks and five State banks Nearly
all Of the new national banks re-
placed banks in the hands of con-
servators. During 1884 there we're SO
banks lost to the system because of
ljquidations, consultations and with
drawals, resulting in decrease of 12
members when the year ended, leav-
ing q total of 403.
Business and financial trends are
vividly pictured in the report prepared
by w. w. Hoxton chairman and
agent, and compared with conditions
in the previous year. The report re-
veals many striking percentage
changes. For example, debts to in
dividual accounts were up 20 per cent,
commercial failures and aggregate LA
bilities declined 43 and SO per cent,
respectively. insolvencies were the
lowest since 1920, and liabilities lowest
OF any year since 1929.
Consumption of cotton dropped Is
per cent. largely because of strike,
while tobacco manufacturing was far
above the 1888 rate. Construction i'm
proved, and as noted early this year,
retail and wholesale trade and collec-
tions were all we'll above the previous
year The Western drought helped
prices for Eastern farmers, thus off,
setting acreage reduction.
Business Volume Higher.
The Richmond Reserve Bank ham
died a larger volume Of business in
1884 than in the previous year, not
withStanding the vast amount of work
incident to the banking holiday in
1888, Mr.. Hoxton says. The number
of non-cash collections handled for
member banks declined by los per
cent, but the amount involved in the
collections rose over 27 per cent.
Transfers for member banks de-
creased. but again the amounts in
volved increased.
The number of checks handled by
the transit department was up 20.46
per cent and the aggregate amount
involved up 1888 per cent. Cur-
rency received and counted in 1884
exceeded the 1888 figure by 632 per
cent in the number of pieces, but off
13 per cent in amount. The number
Of securities handled rose 1870 66 per
cent last year, compared with 1888,
while the value of the securities han
died increased by 7772 per cent.
Total earnings Of the Federal Re-
serve Bank of Richmond in 1884
were sufficient to meet all expenses
and to show profit of s14.298, which
amount was added to surplus Cur
rent expenses Of the bank in 1884 ex-
ceeded expenses in 1888 by $89,351,
Chairman Hoxton's report shows.
General expenses rose materially, due
to a larger volume of work ir the
examination department, an increase
in the Richmond banks share in
Federal Reserve Board expenses and
contribution to the retirement system
OF reserve banks.
First Loans to Industry.
For the first time the bank started
in 1884 making loans direct to indus
try. Applications amounting to s10.-
765,819 were received, Of which S5,-
678,150 were approved, s4,O23,168 re-
jected, s1.064,50O still under consider
alton at the end of the year, and ST.
560,150 actually made and the funds
advanced.
The number of checks handled dur
ing the year was the largest on record
with the exception of 1929. The bank
did an immense amount of work
during the year in connection with the
handling of gold settlements. The
daily circulation of Federal Reserve
notes was UP AS per cent over the
1888 average.
There we're no changes in the Off
cial personnel in Richmond. or in the
Baltimore or Charlotte branches. The
total number of officers employed in
the three Offices at the end of the
year was TAO, decrease of as COM
pared with the close of the previous
year. OF the total number of en-
ployes at the end of the year, 12l were
assigned to special work for the Re-
construction Finance Corp, which re-
imburses the bank in full for their
salaries. according to the Federal Re-
serve agent.
Investment Bankers to Meet.
Y. E. Booker, head of local invest
ment firm and president of the Wash
ington Stock Exchange, will attend
the annual Spring meeting of the
board Of governors of the Investment
Bankers Association of America. at
White Sulphur Springs, May Is to 10.
He Is chairman of the Code Commit
tee In this territory and vice chairman
of the Southeastern group. Paul "
Keyser, general counsel Of the national
association, will also attend from
Washington
Definite plans for the organization
IL IL
started last January and recently pre-
sented to all the groups by President
Ralph T. Crane and Alden H. Little,
executive vice president of the asso-
citation, at meetings in % cities. All
SO members of the board of governors
are expected to attend the coming
sessions Many former members will
be present while all the members of
the associations Is national commit
tees have been invited. The attend
ance will pass the 400 mark.
Life Insurance week opened in
Washington with a breakfast at the
willard Hotel attended by some 400 of
the leading insurance leaders of the
city. F. George Clendaniel president
OF the District Underwriters Associa-
paign will continue until Saturday.
Today's Trading on Exchange.
The weeks trading on the Washing
ton Stock Exchange opened today
with $1,000 Washington Gas IS, 1858.
selling at 100, q new high mark for
the year, and the days only bond SALE
Capital Transit stock figured in two
small lot sales, both at 171a, new
low on the present move. The re-
manning trading was confined to Mer-
genthaler Linotype, which recorded
four 10-share transactions, all at 261k
There were no important changes in
bid and asked prices on other issues.
Holders of American Telephone &
Telegraph Co., stock in this city are
awaiting the dividend meeting this
week. The prevailing opinion seems
to be that the present dividend will
= -.&n;nad An+ior of tho Stnnk last