Evening star., 1936-12-05
TRADE LOANS Up
|NF|FTH DISTRICT
Richmond Reserve DiscIoses
Substantial Increases
During Month.
BY EDWARD C. STONE.


in IL leading cities in the fifth dis
trict showed good increases in COM
mercial and industrial loans in their
latest reports.
Between October IA and November
IL, both this year, loans increased
by $3,781 900, although loans on Sc
eurities declined by $4,000 during the
month. However, all other loans,
which are largely commercial or in
dustrial at this season, rose by So
800 900 during the four weeks. The
reporting banks reduced their in
vestments In securities by $1,l47,000
between October IA and November
IL, while their aggregate balance at
the Federal Reserve Bank rose by
$3,212,000. Cash in vaults declined
by $484,000 during the last month.
Demand deposits in the Al institutions
rose by $16,670,000 since the middle
Of October. but there was a. slight
decline of $588,000 in time deposits.
All figures in the statement are
higher for the 1886 date than for the
corresponding date last year. Loans
and discounts rose by s22. .791 900 dur
ing the year, loans on securities in
creasing by $2,338,0O0 and all other
loans rising by $20,453,000 Invest
ment in stocks and bonds rose by
e68,042, 900 and the reporting banks
added $29,054,000 to their reserve
balances at the Federal Reserve Bank
during the period under review.
Bank Deposits Work Higher.
Time deposits in Al reporting men,
ber banks in the fifth district and
aggregate deposits in II mutual saw
ings banks in Baltimore totaled
S409, ,750,l90 at the end of october.
1886, a higher figure than either
&40S,669,297 reported at the end Of
September this year or 1895. 5.163.714 at
the end Of October, 1885. The mutual
savings banks reported a higher total
Of deposits on October 81, 1896, than
on either of the earlier dates, and
time deposits in the Al member banks
also increased during the year, but
decreased slightly during the last
month.
The report. out today, also shows
commercial failures in the district
were 29 per cent fewer in October
than in October, 1885, but liabilities
involved were 43 per cent higher than
q year ago. Employment conditions
continued to improve and are now
the best in several years, the report
adds.
Demand for cotton textile products
has broadened and spot cotton prices
have moved upward. Tobacco will not
yield as much money this year as
last. the drop in production being
larger than the increase In price.
Building permits in fifth district cities
provided for more work than a year
ago and contracts totaled nearly as
much. Retail trade was II per cent
ahead Of October, 1885, and whole
sale trade was also better. Nearly all
crop yields were higher than earlier
estimates. the summary concludes.
Bankers Plan More Clinics.
Robert v. Fleming's work for the
American Bankers Association last
year Is to be revitalized. Washington
bankers have just been notified from
headquarters that three discussion
forum conferences will be held early
In 1897 by the A. B. A. The meeting
nearest the Capital will take place
In Pittsburgh. January % and 20.
Portland, Greg, will be host to the
second on February Is and 26, and
the third is scheduled for Atlanta,
Ca, March 1926. The purpose Of
the gathering is to provide opportunity
for an exchange of ideas on current
banking methods and practices.
Similar forums were inaugurated last
year under President Flemings ad-
ministration and proved highly bene-
ficial. The Washington banker urged
their continuance and President Tom
K. Smith has taken up the idea.
Adaptation of banking to the chang
ing economic environment. banking
studies and banking research are three
big goals at which the associations
leader is aiming this year. He defines
research as "the effort to find out
what we should do when we cannot
keep on doing what we have done
before"
Speakers at the conferences will
explain the research work of the
association particularly with regard
to Federal lending agencies. postal
savings and bank chartering. Lending
and investment problems, budgets,
public relations, operating expense
control and income from banking
services are among the bank manage
ment problems due for attention, the
announcement states.
Insurance Ruling Received.
Carl Smith Dow, Washington gen.
eral agent of the Pacific Mutual Life
Insurance Co. of California, has re-
ceived the full text of the judges
ruling, which as reported by the
Associated Press, was favorable to the
company. The company has done
business in Washington and nearby
States for a long time.
Judge H. M. Willis expressed the
opinion that the rehabilitation plan
must succeed" The public wants the
plan to succeed, the policyholders feel
the same way about it. "Very few
policyholderS will suffer even tenn
porarily," he said, adding that "the
company Is not inSolvent in the COM
n1ercial sense Of the word"
Judge Willis stated that the COM
pany Is 68 years old, has $500, ,000, 900
in insurance. 100000 policyholders,
$500 stockholders. and so or 10 general
agents with organized sales forces.
Tom K. Smith, head Of the A. B. A.,
and Jesse H. Jones, head of the R. F.
c.. have both issued words Of caution
this week. The banker hopes there
will not be another boom. Chairman
Jones does not believe that any run
away stock market" exists at present,
and says that prices are not "artifi-
cial" He warned that the outpouring
Of dividends caused by the undistrib-
uted earnings tax was not an index of
. company's earning power. That
varies from year to year and has to be
watched.
Peter A. Drury, founder and presi-
dent Of the former Merchants Bank &