Evening star., 1936-07-06
BANK LOANS GROW
IN FIFTH DISTRICT
Richmond Bank Reports
Gain of S1,709,000
During Month.
BY EDWARD C. STONE.

Dul NY WUlltiis
BY EDWARD C. STONE.
Details from the monthly report of
the Federal Reserve Bank of Rich
mond, Just issued, show that between
May 13 and June 10 the Al reporting
banks increased loans by $l,709,000,
of which S430,000 was in loans on
securities and $1,279,000 was in all
other loans. Investment in securities,
chiefly Government issues, decreased
by s7,285 900 during the month.
The reporting member banks re-
duced their reserve balance at the
Federal Reserve Bank by $14,780, 600
between May 13 and June TO- while
total cash in vaults was the same on
both dates, the report states. Total
deposits in the Al reporting banks
rose during the month. a rise of
S3,l80,000 in demand deposits more
than offsetting decline of $780, 900 in
time deposits, a moderate decrease in
time deposits usually occurring at the
vacation season.
Between June II, 1885, and June 10,
1886, all items except time deposits
increased on the statement. Loans on
stocks and bonds rose by SLAB 900
during the year, and all other loans
rose by S8,933 600, a total increase of
Sl0376, 900. Investments in securities
rose by S9,553, 900. and reserve balance
at the Federal Reserve Bank increased
by S26,270000. Cash in vaults totaled
S468,000 more on the 1886 date than
a year earlier. Deposits rose $31 ,570,-
900 during the year. demand deposits
with an increase of S32. .457 900 off
setting a drop of s887.0O0 in time
deposits
Trade Holding Up Well.
In the first half of June trade was
fully up to the level of other recent
months. the report adds, and indus
trial activity was sustained at
higher rate than year ago. The
portfolio of open market paper de-
clined and industrial loans outStand-
ing declined. These loans made direct
to industry for working capital dropped
between May Is and June Is by
0,000 and on June IS lacked S266 900
standing at the same time last year.
Debts to individual accounts in %
trade centers in the fifth district were
145 per cent larger than in the middle
of June year ago. Commercial fail
ures we're larger both in number and
in amount than in MAY, 1885. when
the volume was unusually small. The
fifth district showed an increase OF
50 per cent in failures and 81 per
cent in liabilities over May year ago.
Employment continued to show dis
tinct improvement over the 1885 fig
ures, especially in the construction
fields and in the districts leading in
dustries. Cotton textile mills exceeded
May operations last year by 90 per
cent.
Building permits in 81 leading fifth
district cities numbered 3242 COM
pared with 1892 in May, 1885, an in
crease of 12.l per cent. Valuation
figures revealed an improvement of
10.4 per cent over May, 1885, the
Richmond Bank says.
Railroad Earnings Mount.
i EOullltIH
district for the first five months of
1886 had net railway operating in
come of S27,683, ,018, which was at the
annual rate of return of 2.o5 per cent
on their property investment For the
same period in 1885, their net railway
operating income amounted to $20,-
892736.
Gross operating revenues of the
class I railroads in the Southern dis
trict for the first five months in 1886
amounted to S201 54261o, an increase
of 1873 per cent compared with the
same period in 1895, while operating
expenses totaled sl53,O2O,2S3, an In
crease of 9.3 per cent
Glass I railroads in the Southern
district for the month of May had
net railway operating income of
S5,G1l,44O compared with s2,e31 ,949
In May, 1885
Class I railroads in the eastern dis
trict for the first five months in 1886
had a net railway operating income
of Sl3l,502,944, while for the same
period in 1885 net railway operating
income was Sl15,358,56l.
McLachIan Branch Is Opened.
The new southwest branch of the
McLachlan Banking Corp, at Twelfth
street and Maryland avenue, was
thrown open to the public for the
first time today, the former office hav-
ing been abandoned to make way for
the Bureau of Printing and Engray-
1ngs building program. President
Lanier P. McLachlan, Guy D. Cowl,
branch manager, and other membep
Of the staff were on hand to greet the
many visitors who called to admire the
new building and congratulate the
management.
The banking quarters were most at
tractive today, the new structure con-
tanning every banking convenience.
The architect, Arthur Heaton, received
much praise on the results of his eff
forts. The building not only stands
on the site OF the residence of the
first mayor of Washington, but is onlv
three doors from the first public school
in the city. This building was only
recently torn down for parking lot
enterprise The locality was most
interesting residential section until
the march of business changed the
map entirely.
500 Bankers Have Reservations.
Reports from San Francisco state
that more than 500 bankers have al
ready made reservations, three months
in advance, for the annual convention
OF the American Bankers Association,
to be held September 21-24. The large
number of early reservations is con-
sidered in San Francisco to indicate
better and better business conditions
all over the country. Washington, no
doubt, will send large delegation to
the Fall conclave, as it will be of
special interest to financiers here be-
cause Robert V Fleming is the A q