Evening star., 1936-06-06
LOAN TOTAL LAGS
IN FIFTH DISTRICT
Volume on Securities Off
$1,653,0O While Others
Gain SAL, 900.
BY EDWARD C. STONE.

lral Reserve Bank OF R1chmond de-
Ained by S1,612,000 between April Is
Ind May IS of this year, and loans on
Iecurittes showed a drop of $1,653,-
700, while other loans rose by SAL, 900.
The monthly review received here
his week states that these same banks
increased their investment in stocks
Ind bonds by $25, 5,344,000 during the
month and their reserve balances at
The Federal Reserve Bank rose by
11,497 900.
Cash in vaults showed an increase
II $1,641 900 between April is and
May 13. Aggregate deposits rose by
$500, 900 during the four weeks
inder review, demand deposits gain
r1g $6, ,527, 900 and time deposits S277,-
700. None of the reporting banks was
borrowing on April Is or May 13.
Between May Is, 1885, and May 13'
1886, figures in the composite state
nent of the Al reporting banks show
several material changes. Total
cans and discounts rose by $6,542,-
700 during the year, loans on securi-
lies rising by Sl,375 900 and all other
OdnS TlSulS Uy SOI4O' yOOo'
The banks also increased their in
yestments in securities by s18,882 900
during the year, and added $780,
300 to their reserve balances at the
Federal Reserve Bank. Cash IN
Taults on the 1886 date showed an in
crease of $2,768,o0O over the amount
IN hand a year earlier. Total de-
posits rose during the year, demand
deposits gaining $37,066,000 while
line deposits declined Sl,6o9,0OO, the
,eview adds.
Heavy Construction Scars.
Heavy construction in the District
IF Columbia in the first three months
If this year was SGT per cent higher
han in the first quarter of 1885, the
.atest McGraw-Hill summary OF ma
ional business conditions states. Pas
,enger car sales in the first quarter
we're 13 per cent better than last year
and commercial car sales were % per
cent higher, the review says.
Household refrigerator sales were
especially active. revealing jump OF
S5 per cent over the same period a
year ago. New insurance was per
cent above the 1885 figure, although
most of the rest of the country re-
ported a falling off in this line.
The volume of checks drawn was Il
per cent higher than year ago and
electric output staged 2S per cent
advance during the same period. the
above gain of nearly 900 per cent In
heavy construction was the more
striking in view of the gain for the
whole United States of only 96 per
tent.
The country as whole wrote less
insurance than last year and the
power output average was far below
the mark set in the Capital. Just an
other instance where the District
stands way out in front in recovery
progress.
Virginian Would Absorb Roads.
The Virginian Railway has applied
to the Interstate Commerce Comm1s-
sion for authority to absorb prop
critics of virginian & Western Rail-
road Co. and Virginian Terminal Co.,
wholly owned subsidiaries.
The subsidiaries would be dissolved,
their outstanding bonds Cancelled, and
the properties subjected to the Vir-
rinian's first lien and refunding mort
gage. No new financing would be nee
essary.
The arrangement, the application
states, will make unnecessary the
maintenance of separate corporate or
ganizations, will simplify accounting,
and will result in economies in man
agement and financing.
New Prosperity Cycle Seen
Brokers in the financial district
and their customers are anxiously
awaiting more active markets. There
is a lot of talk about the political
conventions and the adjournment OF
Congress, conditions abroad, improv-
ed earnings at home, as well as the
very uncertain hope for a reduction
in margin requirements considered by
many to be higher than the rules OF
safety demand.
Henry Clews' review for this week
sees the beginning of a new pros
perity cycle following the depression
which eliminated several years ago.
Advancing prices in Wall Street may
be the rule rather than the exception
after Congress adjourns, the review
says, some quarters even predicting
vigorous upturn.
The country. basically, is on the
upgrade. Henry ClewS says, but adds
that recent colorless sessions, Of the
,.g markets have not added to bullish
enthusiasm.
Reilly Addresses Institute.
John A. Reilly, president of the Sec
. l., d National Bank, addressed grad
ultes of the National Capital Radio
Institute at the Willard Hotel last
night, outlining the remarkable prog
ress made by the industry in this gen.
Grafton. He told the graduates there
was challenge for them to do their
full part in the bettefment of the
services rendered. He added:
Most enterprises owe their existence
to the imagination of one man. How
ever, the ultimate success of the ven
ture may depend upon the combined
talents of several. In this program the
work OF the technical expert is most
important,
Every industry must necessarily
make use of finance in the develop
ment of its business. Finance is the
science Of money. The applicants for
use of this money therefore must DEM
onstrate not only an ultimate net
worth that would justify advances but
also it is becoming more important that
the management of the various enter
prises shall be of the highest order and
the conduct of business of such ma
ture as to produce substantial profit
for the investor. In the field of man
agement you gentlemen have a rare
opportunity for service"
Financial District Notes.
The District Institute of Certified
Public Accountants has just issued the
June Bulletin. Julius Sinker, chair
man of the committee on co-operat ton