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Show TBENDS TRENDS FAVORABLE FAVORABLE.IN FAVORABLEIN ' . IN STATE BANKINGRecent BANKING BANKINGRecent Recent Figures Indicate Large LargeIncreases LargeIncreases LargeIncreases Increases in Deposits and andInvested andInvested andInvested Invested FundsImproement Funds FundsImpro Impro Impro\ Improement \ % ement In the condition of at state statebanks statebanks statebanks banks In almost atmost every respect during during1934 1934 Is shown by statistics recently as assembled assembled assembled sembled , , Robert M 1\1 1 \ Hanes , Pres dent dentWachovle dentWachovie dentWachovie Wachovle Wachovie Bank and Trust Company Company.Winston CompanyWinston . , Winston Salem , North Carolina , points pointsout pointsout pointsout out In an article In Banking 'Banklug Banklug ' ' * ' ' pub pubHshed publashed publlshed Hshed lashed by the American Bankers Banlccrs Asso Asao Assoclatlon Asaociation Assoelation clatlon ciation The figures on which this state statement statement statement the theQommfttee theCommittee theOonimlttee ment is based were gathered by Qommfttee Committee on State Bank Dank Research of oftbe ofthe ofthe tbe the assoclition assochUon association from trom 1 lepoita iepotts epol ts turmshed furnished furnishedby turmshedbY bY state bank supervisors throughoufthe throughoutthe throughout throughouf throughouttho tho the countrv'Der countrv country 'D\er 'D D er ' Ci n\er n er \ er since 1921 the nUllber 11111 um iber fiber of statebanks statebanks state ! banks has been declining declllling " Mr Hanes Hanessays Hanessays Hanessays says "Bet Bet "Between Between " " cn 1931 and 1934 the de de- decline decline decline - cline " was "as as iapid 1apid rapid Figures tor for December December31 31 , 1934 , showed that the tbe downward downwardtrend downwardtrend downwardtrend trend has not yet ended , but the de dedine decline dedine dine cline last year yenT was the smallest In Intwelve intwelve intwelve twelve yearsOJ years OJ " OJThere There are now , . he says , about tCIl ten tCIlthousand tenthousand tenthousand thousand state banks , which term in includes ineludes ineludes cludes eludes all state chartered Institution institutloni3 institutloni3With Institutionsft ! v . With 1th ith the exception of ot mutual sa savings savingsbanks savingsJanks vlng'3 vlng3 vlng'3banks ' banks ) The article arUc1e continues ' Even more significant was ine the euaIng euuIng I Ing of ot the decline derllne ot of deposits l1 ! l1state In state statebanks statebanks statebanks banks which had been going on since sincethe sincethe sincethe I the collapse of ot the stock market Doom boom Doomin boomin boomIn in 1929 In recent years for which figurea fig figut.Cs figur ut.Cs utCs urea . 9 are a available vallable the drop has been beenparticularly beenparticularly beenparticularly particularly abrupt Total deposits In Instate instate instate state banks declined from tram $20,395,7G 203957G $20,395,761 20395761 ? $ 20,395,7GJ000 203957GJ000 , , 000 on.December onDecember gnDecomber on , . ' December 31 , 1931 . , to $15,424 15424 ? $ 15.424.823,000'on 15424.823000on 15424823000on . , . , 823O 823,000 823000 , O on December 31 , 1933 The rec ree- ree red reelrd red3rd record - : ord lrd 3rd for 1934 shows a recovery to $17 17 $ $17(08,766 1708766 $ , 108,766 108766 ( , 000 at the year endSignificance end endSignificance Significance Slgmficance of or Increased Deposit Deposits Depos Deposits"It ts ts"It * "It It " is particularly gratifying to note notethe notethe notethe the expansion of ot deposits , since It was wastheir wastheir wastheir their decline which made necessary the theliquidation theliquidation I IliquidatIon liquidatIon ot'lnvestments otlnvestments of'investments ofinvestments ' , , the calling callingot callingof callingof ot of loans , and all the other phenomena phenomenawhich phenomenawhich phenomenawhich : which go under the name of at 'dEftatlon dEftatlon 'deflation deflation 'deflation'and deflationand ' : ' . and have brought banks so much critl criti criticlam critldsm critictsm dsm clam In recent years It is nov no { ( ( ? plain plainthat plainthat plainthat that this v . was as due to efforts eftorts effors [ bt bf the thebanks thebanks thebanks banks to place themselves In the pos possession possession possession session of ot enough liquid hqufd assets to meet meetthe meetthe meetthe the growing demands of depositors tor for torthe forthe forthe the return of ot a part of at the money which whichhad whichhad whichhad had been placed on deposit . ' That this Is tl tiue true ue Is borne out h b by } ) the themovement themovement themovement movement of Invested funds of ot state statebanks statebanks statebanks banks , which has paralleled that of ot de deposits deposits deposits posits These Invested funds loauft ( ( loan loans : and anddiscounts anddiscounts anddiscounts discounts plus Investments ) tor for state statebanks statebanks statebanks banks , dropped from $20291320,000 20291320000 $20 20 $ 291 320,000 320000 , , . at atthe atthe atthe the end of 1931 . , to $14 14 $ ! 916,773,000 916773000 H5,773OOO H5773OOO 915,773,000 915773000 , , at the theend theend theend end of 1933 By December 31 31,1934 311934 , 1934 . how however however however ever , they had recoveied recovered recovel ed to $15,7GL510 157GL510 $15,7G 157G ? $ 15,76v.5IO000 1576v.5IO000 1576v5IO000 , ,510 510 . , 000 . All of this gain Is account accounted d dfor for forby forby torby by the Inciease inclease increase in investments dUring daring during1934 1934 , the expansion amounting fo to o ap appro"Clmately approximately approtimately pro"Clmately proClmately proximately " 1,300,000,000 1300000000 $1,300,000,000 $1,300,000,000"As $ ? $ 1,300,000,000"As , , , "As As " tor for loans and discounts , they reg regIstered registered registered Istered a slight drop again in 1934 . , but butthe butthe butthe the rate of decline was much smallel smaller smallelthan smallerthan smalleithan than in previous years , which in itself itselfis itselfis Itselfis is progress Whereas the drop in loan loans loansand loansand and discounts amounted to approxl approxi approxlmately approximately approximately mately $3,300,000,000 3300000000 $ , , , In 1932 , and to ap approximately approximately approximately proximately $ $1,300,000,000 1300000000 $ , , , , in 1933 . , It Itwas itwas Itwas was less than $500 500 $ 000 000 in 1934 193f 193f"In 1934"In ' "In In " another respect the balance sheetfigures sheet sheetIgures sheefigures * I\gures I gures figures \ tor for December 31 31,1934 311934 , 1934 . , wfe wgre w were fe es especlally especially especially peclally pecially impressive Bills pay payable payable ble and andrediscounts andrediscounts andrediscounts rediscounts of at the state banks , . which whichat whichat whichat at the end of 1932 had reached a n de depression depression depresslon pression high of $669,709.000 669709.000 669709000 $669,709,000 $ , . , , had dropped haddropped thelow thplow by the close of last year to thp the low figure of $82,101.000 82101.000 82101000 $82,101,000 $ , , . , , . One must mustsearch mustsearch mustsearch search 1917to the records as tar far back as 1917 to find bills payable and rediscounts at of atstate ofstate ofstate state banks at a lower figure More Moreover Moreover Moreover over , It is reasonable to expect a further fdrther f fdrtherreduction furtherreduction rther rtherreducUon reduction reducUon duringthe of ot such borrowings during the current year : . " ' _ r , |