Evening star., 1937-02-03
PRICES FOR CROPS
BOON TOFARMERS
Higher Incomes in 1886 Off,
set Lower Yields in
Fifth District.
BY EDWARD c. STONE.

IN 1889, DuC uIllC prices were IlSiiei
for every agricultural product so
that gross money returns from all 1886
crops combined were higher than to-
tai returns from the 1885 crops. the
Federal Reserve Bank of Richmond
reports in a most complete compare
tive summary of Maryland, Virginia,
West Virginia and the Carolinas. The
outcome was most satisfactory, con-
sidering the outlook earlier in the year.
Corn production declined 9 per cent
from 1885 production, but the farm
value of the crop rose II per cent.
Cotton production was per cent
larger than in 1885. and the aggre-
gate value of cotton raised rose %
per cent.
Tobacco yield was l6 per cent less
than in 1885. but the 1896 price per
pound was better and the aggregate
value of the crop declined only per
cent.
Irish potatoes declined in produc-
ton 80 per cent in 1886, but the value
of the potatoes rose II per cent. The
sweet potato yield dropped l3 per cent,
but the crop value rose 10 per cent
The oats crop declined % per cent,
but the aggregate value OF oats
dropped only 6 per cent. Wheat pro-
duction in the fifth district was per
cent lower in 1886 than in 1888, out
last years crop was worth Is per cent
more than the preceding crop.
Hay tonnage declined % per cent
in 1886. while the value OF the hay
dropped 5 per cent Peanut produc-
ton fell per cent last year. but the
value of the nuts rose l3 per cent.
The total apple crop declined 45
per cent, while the value fell 20 per
cent. The commercial apple yield de-
clined 30 per cent in 1885, but the
aggregate value of the crop was only
l3 per cent less than in 1885.
Reserve Rise Lauded Here.
Opinion among Washington bank
ers is that the Federal Reserve gov
ernors made a wise move in raising
member bank reserve requirements at
this time and giving the banks ample
time in which to meet the new rules.
While bankers here see no pressing
need for the action right now, yet
they say that credit conditions some
times change with great rapldlty, add
ing that any time in the future, II
the RESERVE funds we're needed to meet
business requirements, the reserve
regulations could easily be reduced.
The Reserve Board took great care
in explaining the reasons for its &C
ton. After calling attention to the
enormous excess reserves held by the
banks, the board added that it lis
far better to sterilize part OF these
superfluouS reserves while they are
still unused than to permit credit
structure to be erected upon them
and then to withdraw the foundation
of the structure" The board added:
This action increases reserve re-
ouirements to the full extent author
lied by law. 1t is not the present in
tention of the board to request from
Congress additional authority to alb
sorb excess reserves by means OF ra!s-
ing reserve requirements.
The boards action does not re-
duce the large volume of existing
funds available for investment by de-
positors and should not. therefore,
occasion an advance in long-term in
terest rates or a restrictive policy on
the part of institutional and other in
vestors in meeting the needs for
sound business. industrial and agri-
cultural credit"
Branch Banking is Opposed.
Establishment of national bank
branches beyond the confines of the
State in which the parent organization
is located was condemned at meeting
here yesterday of the Executive Com
mittee of the National Association Of
Supervisors Of State Banks. Congress
is to be asked to amend existing Fed
eral laws. Chairman Luther A. Harr
announced.
o. H. Moberly, commissioner OF
banking in Missouri. has been elected
president of the national association.
It was also announced following yes
terday's meeting that G. P. Hood,
commissioner of banks for North Caro-
lima. had been named vice chairman
of the Executive Committee.
The committee has entered protest
over discrimination against State
banks under the social security act"
pointing to recent rulings that the
social security act eXempts national
banks and State members of the Fed
eral Reserve system. The association
wants all banks on the same basis.
U. S. Employees Organize Firm.
Two former Government employees
A. S. Mcleod and Leslie l.. Frey-have
just organized an investment counsel
firm here. Mr.. Mcleod is a graduate
Of the Massachusetts, Institute of
Technology. Harvard University School
Of Economics and Finance, and has
just completed six years service as an
actuary in the Treasury Department,
in charge of forecasting business
volumes IN the United States.
Mr.. Frey is graduate of the Uni
versity of Cincinnati and for years
was consulting engineer. For the
past three years he has been en-
ployed by the Government, first as
executive manager of the general N.
"a SOOc fautllOILIy dIlu ldJST DIS
assistant controller of the Home
Owners Loan Corp.
Heard in Financial District.
G. Bowie Chapman, resident man.
ager of the New York Stock Exchange
firm of Laidlaw & Co., left Washing
ton today for months trip to Mex
leo City and other points in Mexico.
Mr.. Chapman is an extended traveller.
His son Norris. is in the Government s
foreign service.
In an analysis of % industries the
brokerage firm Of Fenner & Beans
says that aviation manufacturing is
among the most favored at the pres
ent time. Demand for all types of
planes continues, operations are ex-
pected to be increasingly profitable
and untitled orders are at record lev
els, the survey asserts.
Today's Trading on Exchange.