Evening star., 1936-12-08
EARNING ASSETS
! OF BANK MOUNT
Richmond Reserve Discloses
Increase of $7,675,00O
Over 1885 Level.
BY EDWARD C. STONE.

oJ DNAnD Ss S4OXNGs
Total earning assets of the Federal
Reserve Bank of Richmond rose by
s7s75,0 900 between November Is, 1885,
and November IS, 1885, according to
the banks latest monthly review
reaching member banks in Washing
ton.
Discounts held dropped by $4,000,
open market paper held dropped by
$4,000 and industrial loans to busi-
ness firms for working capital dropped
by $1,05O, 900. On the other hand, the
banks holdings of Government Sc
curities rose by $8,794,000 during the
year, representing redistribution of
holdings between Federal Reserve
banks while the total holdings of the
system remained unchanged.
Actual circulation of Federal Re
serve notes rose by s20,057 900 during
the year, partly due to replacement OF
some national bank notes with Federal
Reserve notes and partly to increased
business activity this year. Reserve
deposits of member banks at the Rich
mond bank increased by S52,266, 600
between November Is last year and
this.
On November IS, 1886, cash re-
serves of the Federal Reserve Bank
of Richmond showed an increase OF
s76, 5000 over reserves on November
Is, 1885, and the ratio of cash reserves
to note and deposit liabilities combined
rose 4.53 points during the same
period.
Total earning assets of the Federal
Reserve Bank of Richmond declined by
5000 900 between the middle of Octo-
Der and the middle of November this
wear, discounts held decreasing by
S151, 900 and industrial advances for
working capital falling by $4,000.
Margin Views Given Board.
Comments on the Federal Reserve
system's proposed changes in Federal
margin regulations have been sub
mitted to the governors by the securl-
ties exchanges. The suggested changes
are intended to prevent 'in-and-out"
trading, which is not fully margined in
accordance with Federal requirements.
The Reserve Board proposes to elm
inate the three e-day grace period which
Is now allowed to elapse between the
time the purchase takes place and the
delivery of the required margin.
The proposed changes are generally
opposed by both brokers and Gus
TONERS. Brokers claim the present
rules are fair to everybody. They con-
slider it is not fair to put further re-
strictions on margin trading, thus fur
ther reducing the volume. Many Gus
toners say they often put in orders
well under the market for more stocks
than they expect to get, the idea being
to obtain the best possible prices. To
cover all orders with margins in ad-
vance would place a hardship on all
traders putting in more than one Or
der at time.
It Is reported here that the New York
Stock Exchange will ask that the three
days of grace be reduced to "a hours
instead of being eliminated.
Franklin Payment Started.
There was a grand rush to the De-
partmental Bank Building at 1726
PENNSYLVANIA avenue this morning,
when the old Franklin National Bank
started paying s25O,00O to the 1900
depositors. This is Is per cent OF the
remaining 35 per cent due former
patrons. It looked like Govern
ment pay day in the bank. The pay
ment coming just at this time takes
on the JOY of Christmas present
which the depositors do not want to
miss. S. M. Thrift is in charge, and
payments will be made at this location
during the next two weeks.
Hillary G. Hoskinson, second vice
president of the District Bankers As
sociation and one of the vice presi-
dents of the Riggs National Bank,
predicts the best Christmas business
here in years and says he would not
be surprised if it exceeded the boom
DAYS before the depression. The pres
ent large dividend disbursements and
the substantial amount of Christmas
Savings Club funds just paid out are
having an important influence on
present conditions, the banker added.
Roger W. Babson, head of the Bab-
son Statistical Service, will give an
address at the Raleigh Hotel next
Saturday at 10 am. before his WASH
tngton clients and invited guests on
the business outlook for 1887 For sew
eral years Mr.. Babson has come here
during the holidays and made
speech Of this kind which Is always
most interesting.
Reilly Addresses Accountants.
History of business and finance for
the past few years clearly reveals that
the adequacy of many of its systems
are. still in question, John A. Reilly,
president of the Second National Bank,
said in an address at Columbus Uni
versity last evening.
The problems of the immediate
future in the accounting field are so
complex that the best available talent
will have to be employed by captains
Of industry attempting to reach a
satisfactory conclusion
1.-THE members of the accounting
profession can no longer be satisfied to
assemble bookkeeping figures and re-
port their totals. Business and financial
leaders will expect you to develop
vehicles that will enable them to
properly systematic their businesses
In this field you will have rare op-
portunity for service which should be
very profitable to you If you success
fully conduct yourselves in your pro-
fessional work." Mr.. Reilly, formerly
professor of finance and credits at the
university, asserted.
Heard in Financial District.
c. j. Gockeler, chairman of the
Board of Governors of the Washington
Stock Exchange. presided at the daily
sessions while President Y. e. Booker
was attending the investment brokers
convention at Augusta, GA.
Daily average sales in small towns
and rural areas for October showed 9
larger increase in the South than ir
Is