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MONTHLY

REVIEW

o f Financial and Business Conditions

F ifth
FEDERAL

Reserve
District

June 30, 1937

Federal Reserve Bank, Richmond, Va.
B A N KIN G statements in the Fifth Federal Reserve
district showed some seasonal developments in May
and early June. At the Federal Reserve Bank of Rich­
mond discounts for member banks rose as a few banks
found it necessary to secure additional funds to finance
planting or marketing of crops or to replenish funds low­
ered by higher reserve requirements. Circulation of Fed­
eral Reserve notes declined moderately between the middle
of May and the middle of June, and member banks re­
duced their aggregate reserve balance at the Reserve
bank, probably to purchase Government securities. Re­
porting member banks increased their investments in
securities between May 12 and June 16, but the reserve
balance of these particular banks declined very little.
Their demand deposits decreased during the period under
review, but loans remained practically stationary. Debits
to individual accounts in 24 Fifth district cities declined
4.2 per cent from Aprill to May, a seasonal drop due to
quarterly payments in April, but debits last month ex­
ceeded May 1936 debits by 16.5 per cent.
Business in the Fifth district in May and the first half
of June moved at a slower rate than in the first quarter
of this year, but was above the volume of business done
a year ago. Part of last month’s slowing down was sea­
sonal, but in addition there were other adverse factors
at work. Employment conditions have been disturbed by
strikes in some localities, and there appears to be a tense­
ness between workers and employers in a number of in­
dustries. The commercial failure record in the Fifth
district in May was better than a year ago, but there were
more insolvencies than in April this year. Sales of new
passenger automobiles in May showed a smaller increase
over May last year than earlier months this year showed,
and fewer cars were sold last month than in May 1936
in the District of Columbia and West Virginia. Con­
struction work in cities and their suburbs held up well in
May, and building permits issued for urban work totaled
more than in any other month in seven years, but there
is less rural construction under way this year, due chiefly
to a decline in publicly financed projects. Coal mining
was 4.5 per cent above May 1936. Activity at cotton
textile mills slowed further in May as production which




exceeded new orders cut down the backlog of unfilled
orders. Cotton prices, in the face of a prospective in­
crease in yield and a reduction in mill demand, declined
further in late May and early June. Retail trade as
indicated by department store sales was only about 4 per
cent larger in May than in May last year, and wholesale
trade in May, while in the aggregate larger than a year
ago, compared less favorably with trade last year than
in most recent months.
The outlook for agricultural production at the middle
of June is much better than a year ago, but the price
situation is not so favorable. Except for tobacco, which
has been seriously damaged by blue mold, crop prospects
are notably better than a year ago, and if price declines
are not too great the farmers will experience a satisfactory
year. Wheat production in the Fifth district is estimated
to exceed 1936 production by 14.4 per cent, and the con­
dition of other small grains is considerably above last
year’s June 1 condition. Pastures in the district are
excellent, in contrast with the condition in June last
year when grass had not recovered from drought. Peach
production in all Fifth district states except South Caro­
lina was larger this year than last, and prospects indicate
a probable yield of apples about twice as large as last
year’s yield. The two Carolinas, the only States for
which data are now available, show much better condition
figures for the Irish potato crop than they showed last
year at this time.
There follows a statistical summary of conditions de­
scribed above:
May 1937
Debits to individual accounts (24
Cities) ............................................ $1,259,069,000
No. of business failures, 5th district
42
Liabilities in failures, 5th district..
310,000
10,049,599
Sales, 52 dept, stores, 5th district.. t
4,795,263
Sales, 55 wholesale firms in 5 lines..
Registrations, new passenger autos..
25,795
3,168
Building permits issued (31 cities)..
10,178,457
Value of bldg. permits (31 cities). . .
24.030.000
Value contracts awarded, 5th. dist.
29.980.000
Soft coal mined, U. S. (Tons)..........
309,778
Cotton consumption, 5th dist. (Bales)

May 1936

Change

$1,080,571,000
44
$
611,000
$
9,655,212
$
4,410,653
25,004
3,242
$
6,462,132
$ 2,3,417,657
26,010,000'
254,707

+ 16.5
— 4.5
— 49.0
+ 4.1
+ 8.7
+ 3.2
— 2.3
+ 57.5
2.6
+ 15.3
21.6

+
+

MONTHLY REVIEW

2

BA N K IN G CONDITIONS
Sta te m e n t:
A comparison of selected
items from statements of the Federal Reserve Bank of
Richmond, for the dates indicated, shows a recent increase
in discounts, chiefly due to seasonal needs of a few
member banks for additional funds with which to finance
crop planting or marketing of early farm products.
Higher reserve requirements this year make it necessary
for more banks to borrow for short periods to make tem­
porary adjustments than a year ago.
R eserve B a n k

ITEMS
Discounts held .....................................
Open market paper .............................
Industrial advances ........................... . , .
Government securities ..............................
Total earning assets .......................
Circulation of Fed. Res. notes .......... . ,
Members* reserve deposits ............... . ,
Cash reserves ........................................
Reserve ratio ........................................ .......

000
June 15
1937
$
703
149
2,603
133,035
191,564
216,530
309,709
70.39

omitted
May 15
1937
$
363
149
2,667
133,035
136,214
195,474
226,547
302,729
69.66

June 15
1936
123
120
4,124
116,716
121,083
173,502
156,467
281,707
71.56

$

S t a t e m e n t o f 41 R e p o r t i n g M e m b e r B a n k s : During
the past month investments rose $19,111,000, while de­
mand deposits declined $9,121,000 and borrowing from
other banks dropped $4,500,000 in the regularly report­
ing banks, other changes in the statement being relatively
immaterial. In comparison with figures on June 17 last
year, figures on June 16 this year showed increases of
$59,205,000 in loans, $32,408,000 in reserve balance at
the Reserve bank, and $56,931,000 in demand deposits,
while investments in securities decreased $12,652,000
during the year.
ITEMS
Loans & discounts ............................. .
Investments in securities .................
Reserve bal. with F. R. Bank ..........
Cash in vaults......................................
Demand deposits ...................................
Time deposits ........................................
Money borrowed ..................................

.

000 omitted
June 16
May 12
1937
1937
$241,336
$241,505
403,609
384,498
132,514
134,748
16,847
19,688
475,622
199,288
198,825
4,500

June 17
1936
$182,131
416,261
100,106
17,647
409,570
193,012
0

: Debits to individual,
firm and corporation accounts in member and nonmember banks in 24 Fifth district cities declined $55,846,000, or 4.2 per cent, in May 1937 in comparison with

D e b it s to I n d iv i d u a l A c c o u n t s

CITIES
Maryland
Baltimore ..........
Cumberland ........
Hagerstown ........
Dist. of Col.
Washington . . . .
Virginia
Danville ..............
Lynchburg ..........
Newport News ..
Norfolk .............
Portsmouth ........
Richmond ..........
Roanoke ..............
West Virginia
Charleston ..........
Huntington ........
Norlth Carolina
Asheville ............
Charlotte ............
Durham ..............
Greensboro ..........
Raleigh ..............
Wilmington ........
Winston-Salem ..
South Carolina
Charleston ........
Columbia ............
Greenville ..........
Spartanburg ----District, 24 Cities




May
1937

April
1937

May
1936

$ 354,792
9,200
8,692

$ 370,813
9,122
9,309

$ 2,98,790
8,044
7,788

265,533

280,253

8,712
15,616
9,430
49,293
4,139
144,669
33,107

8,460
15,732
9,954
52,591
4,240
150,047
33,375

59,127
20,549

55,157
19,744

41,208
18,926

+ 7.2
4- 4.1

13,121
59,721
24,383
18,404
34,422
10,436
39,355

13,884
62,930
24,238
18,741
40,096
12,240
42,419

10,701
49,510
20,079
22,321
28,098
9,848
32,025

18,755
27,297
20,633
9,683
$1,259,069

19,577
28,937
22,325
10,731
$1,314,915

15,424
25,594
16,958
7,165
$1,080,571

% of Change
Month
Year

— 4.3
+
.9
— 6.6

+ 18.7
+ 14.4
+ 11.6

237,754

-

5.3

+ 11.7

6,448
13,493
8,532
43,807
3,849
126,029
28,171

+
—
—
—
—
—
—

3-0
.7
5.3
6.3
2.4
3.6
.8

+
+
+
+
+
+
+

35.1
15.7
10.5
12.5
7.5
14.8
17.5

debits in April this year, a seasonal drop due to quarterly
payments made in early April. On the other hand, debits
last month exceeded May 1936 figures by $178,498,000,
or 16.5 per cent, reflecting a larger volume of trade this
year. Every reporting city except one shows a higher
figure for the 1937 month than for May 1936.
M u t u a l S a v i n g s B a n k D e p o s i t s : In addition to time
deposits in 41 reporting member banks, shown elsewhere,
10 mutual savings banks in Baltimore had deposits total­
ing $216,298,343 on May 31, 1937. This figure shows a
slight decrease from $216,372,167 on April 30, 1937, but
is 4.4 per cent above deposits totaling $207,112,843 on
May 31, 1936. A moderate decline in savings deposits
usually occurs at vacation time.

B U SIN E SS CONDITIONS
The labor situation in the Fifth district
continues unsettled on account of strikes which have oc­
curred in many localities. These disturbances were chief­
ly local in character, but the psychological effects have
been unfortunate and the rate of increase in employment
has slowed down materially. Prolonged strikes in other
sections of the Nation are beginning to affect workers in
the Fifth district by reducing demand for industrial
products manufactured in the district. Events of the past
few weeks appear to have reduced prospects for employ­
ment in industry in the near future, and the outlook is
less favorable than it was six weeks ago.
The following figures, compiled for the most part by
the Bureau of Labor Statistics from reports submitted by
a large number of identical industries, show the trends of
employment and payrolls in the Fifth district from March
to April 1937, the latest available figures:
E m ploym ent:

Percentage change from
March to April 1937
In number
In amount
on payroll
of payroll

STATES
.....................
D. of Columbia ............................. .....................
.....................
......................
.....................
South Carolina ......................................................

+ 2 .1
+
.4
— 1.6
— 1.7
+
.9
+
-6

+ 5.7
+
.4
— .4
— 11.8
+ 2.2
+ 4.6

F a il u r e s :
Business failures in the Fifth
Federal Reserve district in May 1937 showed a decrease
of 4.5 per cent in comparison with failures in May 1936,
and aggregate liabilities involved were 49 per cent lower
in the 1937 month. The following figures were reported
by Dun & Bradstreet:
C o m m e r c ia l

PERIOD

Total Liabilities
District
U. S.

1937...........................
1937...........................
1936...........................

42
36
44

834
786
832

$ 310,000
348,000
611,000

$ 8,364,000
8,906,000
15,375,000

+ 43.5
+ 8.6

5 Months, 1937...................
5 Months, 1936...................

236
218

3,972
4,541

$1,942,000
4,278,000

$46,624,000
77,996,000

— 5.5
— 5.1
+
.6
— 1.8
— 14.2
— 14.7
— 7.2

+ 22.6
+ 20.6
+ 21.4
— 17.5
+ 22.5
+ 6.0
+ 22.9

—
—
—
—

+
+
+
+
+

A u t o m o b il e N e w C a r R e g is t r a t io n s :
Sales of new
passenger automobiles reflect consumer buying power in
two ways, first, by the number of cars sold, and secondly,
by the class of cars taken. For example, the following
figures collected by R. L. Polk & Company of Detroit
show that the number of new cars registered in the Fifth
district in May 1937 exceeded the number registered in
May 1936 by 3.2 per cent, and analysis of detailed fig-

4.2
5.7
7.6
9.8
4.2

21.6
6.7
21.7
35.1
16.5

May
April
May

Number of Failures
District U. S.

MONTHLY REVIEW

ures shows that 65.1 per cent of the cars sold in May
this year were the three most popular makes, while in
May 1936 sales of the three made up 70.3 per cent of
all sales.
Registrations of New Passenger Cars

STATES

May
1937

May
1936

5,179
4,954
Maryland ..........
3,179
3,668
D. of Col.............
Virginia ............ 5,459
5,378
West Va..............
3,981
4,304
No. Carolina . . .
5,301
4,321
So. Carolina___
2,696
2,379
District ........
25,795
25,004

%

Change 5 Months 5 Months
1937
1936
+ 4.5
— 13.3
+ 1.5
— 7.5
+22.7
+13.3
+ 3.2

%

Change

20,80917,688
+17.6
13,415
14,868
— 9.8
2,3,101
20,410
+13.2
15,634
14,372
+ 8.8
23,993
17,745
+35.2
12,578
9,382
+34.1
109,530
94,465
+15.9

C o n s t r u c t io n :
Building in the Fifth Reserve district
continues to expand, especially in residential work in and
near cities. Permits were issued in 31 Fifth district cities
in May 1937 for work estimated to cost $10,178,457, the
highest monthly figure reported since April 1930, and
57.5 per cent larger than $6,462,132 shown for May 1936.
Twenty-two of the 31 cities reported higher figures for
May this year than last. Contracts actually awarded, as
reported by F. W. Dodge Corporation, show a total of
$24,030,000 in the Fifth district in May 1937, an increase
of only 2.6 per cent over $23,417,657 in awards in May
1936, but last year’s figure contained a larger number of
Government financed or aided projects in rural sections.
Of the May 1937 contracts, $10,766,900, or 45 per cent,
went into residential work, compared with 40 per cent in
May 1936.
Contract award figures for April 1937 and 1936 are
now available by States, and are as follows for the Fifth
Reserve district:

Construction
STATES
Maryland .....................................
D. of Columbia .........................
Virginia .......................................
West V irginia.............................
North Carolina .........................
South Carolina ...........................
District ...................................

Contracts Awarded
April 1937
April 1936
$ 5,269,100
$ 3,943,700
4,854,700
2,460,900
10,275,700
5,235,400
3,596,200
2,246,800
5,894,500
4,209,800
2,716,100______ 1,363,700
$32,606,300
$19,460,300

%Change
+33.6
+97.3
+96.3
+60.1
+40.0
+ 99.2_____
+67.6

Activity in cotton mills continued to
decline in May, both in the United States and the Fifth
’ district, but cotton consumption by mills was 26.1 per cent
in the United States and 21.6 per cent in the district
above consumption in May 1936. Consumption of cot­
ton by states in the district in May 1937, April 1937, and
May 1936, in bales, is shown below.
C otton T e x t il e s :

MONTHS
No. Carolina So. Carolina Virginia
May
1937...............
125,731
15,303
April
1937............... ............
183,425
133,239
15,589
May
1936................ ............
136,728
104,326
13,653
5 Months, 1937............ ............
5 Months, 1936............ ............

896,973
717,024

656,014
542,407

73,776
68,723

District
309,778
332,253
254,707
1,626,763
1,328,154

On May 20, 1937, the Department of Commerce issued
a report on spindle activity in the cotton textile industry
for the month of April. On April 30, 1937, there were
26,991,338 spindles in place in the United States, of
which North Carolina led all states with 22.5 per cent,
and South Carolina was second with 20.9 per cent. The
Fifth district as a whole had 45.8 per cent of all spindles
in place on April 30. In actual hours of operation per
spindle in place during April, South Carolina took first
rank with 399 hours, against a National average of 340
hours. North Carolina with a record of 348 hours was
above the National average, but Virginia with 312 hours
was below.




3

C otton :
Favorable growing weather over most of the
cotton belt, unofficial estimates of materially increased
acreage, and a falling off in orders for textile products,
tended to lower cotton prices during the past few weeks.
As a result, the average price for middling grade upland
cotton on ten Southern markets dropped from a high of
14.62 cents per pound on April 2 to 12.35 cents on
June 18.
Cotton Consumed and On Hand
(Bales)
May
May
1937
1936

Fifth district states:
Cotton Consumed ................
Cotton growing states:
Cotton consumed .................
Cotton on hand May 31 in
Consuming establishments .
Storage & compresses ........
United Stales:
Cotton consumed ...................
Cotton on hand May 31 in
Consuming establishments ..
Storage & compresses ..........
Exports of cotton .....................

309,778

254,707

Aug. 1 to May 31
This Year Last Year
3,112820

2,488,558

558,626

447,822

5,569,389

4,360,023

1,474,396
3,482,826

895,080
5,152,116

..........
..........

..........
..........

530,894

6,680,343

5,188,655

669,460
1,815,035
3,587,788
323,736

1,089,784
..........
..........
5,238,974
.............................
351,734 5,086,093 5,518,804

Cotton seed received at United States mills between
August 1, 1936, and May 31, 1937, totaled 4,454,079 tons,
compared with 3,703,562 tons received in the ten months
ended May 31, 1936. Of the receipts mentioned, North
Carolina mills took 232,808 tons this year and 223,487
tons last year, and South Carolina mills took 220,090 tons
and 206,878 tons in the two periods, respectively.
C oal M in in g :
Total production of bituminous coal in
the United States was 29,980,000 net tons in May 1937,
an increase of 15.3 per cent over 26,010,000 tons pro­
duced in April this year and 4.5 per cent over 28,684,000
tons mined in May last year.
In its June 12 report the Bureau of Mines gave State
production figures for April 1937 and 1936, and Fifth
district coal states, which dug 35 per cent of the National
total, were reported as follows, in tons:
STATES
West Virginia .
Virginia ...........
Maryland............
5th District . .
United States

Production
April 1937
8,305,000
726,000
78,000
9,109,000
26,010,000

Production
April 1936
8,443,000
796.000
130.000
9,369,000
30,454,000

Percentage
Change

- 1.6
— 8.8
— 40.0
- 2,8
-14.6

Production of cigarettes in
May 1937 exceeded production in April, the preceding
month, but production of cigars, smoking and chewing
tobacco, and snuff declined in the later month. Output
figures on tobacco products for May 1937 and May 1936
in the United States, according to the report of the
Bureau of Internal Revenue, were as follows:
T obacco M a n u f a c t u r in g :

Smoking & Chewing
Tobacco, Pounds ............
Cigarettes, Number ............
Cigars, Number .....................
Snuff, Pounds .......................

May 1937
24,639,079
13,069,936,403
430,628,149
2,917,691

May 1936 % Change
24,994,224
12,024,856,900
419,369,234
3,106,057

— 1.4
+ 8.7
+ 2.7
— 6vl

No State figures were released, but at the rate of produc­
tion attained by the Fifth district in 1936 the district
manufactured approximately 10,978,747,000 cigarettes
last month, or 84 per cent of the National total; 12,401,000 pounds of smoking tobacco and snuff, or 45 per cent
of the total; and 47,369,000 cigars, or 1 1 per cent of the
total. Taxes paid to the Federal Treasury on tobacco
manufacture totaled $45,245,852 last month, an increase
of 7.3 per cent over $42,171,318 paid in May 1936.

4

MONTHLY REVIEW

R e t a il T rade in

A G R IC U LT U R A L CONDITIONS

D epartm ent Sto res:

Net Sales
Net Sales
Stocks
Ratio May
May 1937
Jan. 1 to date May 31, 1937
collections
comp, with
comp, with compared with to accounts
May
same period May 31 Apr. 30 outstanding
1936
last year
May 1
1936
1937
+ 7.4
+ 8.9
+ 7.7 — 3.0
31.1
— .6
+ 3.2
+ 14.8 - 3 .9
26.3
+ 9.1
+ 12.2 - 1 .0
31.7
+ 4.1
+ 3.0
+ 6.2
+ 11.5 - 3 . 0
28.8

Baltimore (7)
Washington (7)
Other Cities (14)
District (28).
Same stores by
States, with
24 stores added:
Virginia (10)..
West Va. ( 9 ) ...
No. Carolina (7)
So. Carolina (11)
District (52)..

+ 4.3
+ 12.1
+ 7.9
+ 15.6
+ 4.1

+
+
+
+
+

8.5
17.5
11.4
17.0
7.1

W h o l e s a l e T r ad e, 55 F i r m s :

LINES

Groceries (21).
Dry Goods (7).
Shoes (6) . . . .
Hardware (11)
Drugs (10) . . .

Net Sales
May 1937
comp, with
May
Apr.
1936
1937
+ 13.7
— 1.9
— 1.1
+ 22.4
+ 10.1

— 8.1
— 8.1
-3 0 .7
— 4.2
— 5.1

Stocks
Net Sales
Ratio May
Jan. 1 to date May 31, 1937
collections
comp, with compared with to accounts
same period May 31 Apr. 30 outstanding
1936
1937
last year
May 1
+
+
+
+
+

15.1
7.2
17.7
25.9
11.5

+ 25.0 - 5 .0
+ 56.0 — 1.7
+ 30.5 — 8.7
+ 9.5 —2.3

111.9
38.9
61.0
47.3
66.8

Note: All figures in Retail and Wholesale tables represent percentage
changes except the collection ratios. Number of reporting firms shown in
parentheses.




A g r i c u l t u r a l N o t e s : Weather in early May w a s too
cool for best crop development, but the second half of
May and the first half of June witnessed warm tempera­
tures and crops improved materially in nearly all sections
of the Fifth district. Some crops are late, but they can
easily overcome this handicap if growing conditions are
favorable the balance of the season. Tobacco prospects
have been seriously decreased by blue mold, and there is
a scarcity of plants in certain sections, but otherwise the
agricultural outlook for production is much better than
it was a year ago. There is plenty of moisture in the
soil. The price situation is less favorable, but agricul­
tural authorities take the position that increased produc­
tion for most crops will compensate for lower prices.
Probable production figures for wheat are now available,
and are as follows for 1937 and 1936, respectively, in
Fifth district states: Maryland, 9,234,000 bushels and
8.980.000 bushels; Virginia, 9,310,000 bushels and 7,862,000 bushels; West Virginia, 2,262,000 bushels and 2,025.000 bushels; North Carolina, 6,648,000 bushels and
5.194.000 bushels; and South Carolina, 1,748,000 bushels
and 1,472,000 bushels. The district total production of
wheat this year of 29,202,000 bushels is 14.4 per cent
larger than the 1936 crop of 25,533,000 bushels.

(Compiled June 21, 1937)

MONTHLY REVIEW, June 30, 1937

FEDERAL RESERVE BANK OF RICHMOND

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)

Volume of industrial production in May continued at the level o f the
two preceding months. Commodity prices declined slightly in May and the
first three weeks of June.

IN DU STRIAL PRODUCTION

PRODUCTION, EMPLOYMENT AND TRADE

Index of physical volume of production, adjusted
for seasonal variation, 1923-1925 average=100.
By months, January 1929 to May 1937.
FACTORY EMPLOYMENT AND PAYROLLS

Indexes of number employed and payrolls, with­
out adjustment for seasonal variation, 1923-1925
average=100. By months, January 1929 to May
1937.
Indexes compiled by the United States
Bureau of Labor Statistics.

In May the Board’s seasonally adjusted index of industrial production
remained unchanged at 118 per cent of the 1928-1925 average. Output of
iron, steel, automobiles and lumber increased further. At cotton and
woolen mills and at shoe factories activity continued at a high level, while
at silk mills, meatpacking establishments and sugar refineries there were
considerable decreases. Crude petroleum production continued to rise and
output of bituminous coal increased somewhat, following a sharp decline in
April. Shipments of iron ore in May were larger than in the corresponding
month o f any previous year. In the first three weeks of June automobile
production declined seasonally and, largely owing to labor disturbances,
steel output was reduced to 77 per cent of capacity as compared with 90
per cent in May.
Value of construction contracts awarded in May was smaller than in
April, according to figures of the F. W. Dodge Corporation. There were
declines in awards for residential and other private projects, while con­
tracts for public projects increased. In the first half of June awards for
both private and public work were at a somewhat higher rate than in May.
Factory employment, which usually declines at this season, showed
little change from April to May and the Board’s adjusted index advanced
somewhat further. Employment in the durable goods industries continued
to increase while employment in other lines declined seasonally. Factory
payrolls remained at the April level, following sharp increases in earlier
months.
Distribution of commodities to consumers continued in May at the
level of other recent months. Sales at department stores and at variety
stores showed a seasonal rise and mail-order sales were maintained.

W HOLESALE P R IC E S

COMMODITY PRICES
Other
Commodities
/

k- ^

-A
P

Foods • •✓
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P

BANK CREDIT

[ / Fm5roducts
1932

1933

1934

Between the middle of May and the third week of June, prices of
grains, except Spring wheat, declined considerably and there were smaller
declines in cotton, cotton goods, wool, rubber and scrap, while prices of
most other commodities showed little change.

1935

1936

1937

Indexes compiled by the United States Bureau
of Labor Statistics, 1926=100. By weeks, 1932
to date. Latest figures are for week ending June
19, 1937.
M EM BER BANK R E SE R V E BALANCES

Excess reserves of member banks, which had been about $900,000,000
after the May 1 increase in reserve requirements, declined by about $180,000,000 during the week ending June 16, in connection with Treasury op­
erations, but increased in subsequent days and on June 23 were at a level
of $810,000,000.
At reporting member banks in leading cities holdings of United States
Government obligations, after several weeks of little change, increased
sharply during the week ending June 16, reflecting purchases of the new
issues of Treasury notes.
Commercial loans at member banks continued to increase in the four
weeks ending June 16. This increase was largely at banks in New York
City, which also showed a growth in loans to other New York banks and
to brokers and dealers in securities.
MONEY R A TES

Wednesday figures of total member bank reserve
balances at Federal Reserve banks, with estimates
of required reserves, January 6, 1932, to June 23,
1937.




The open market rate on 90-day bankers’ acceptances, which had been
reduced from 9/16 to 1/2 of 1 per cent on May 7, was further reduced
to 7/16 of 1 per cent on June 22. Other money rates have shown little
change in recent weeks.