Show TRENDS THEN DS FAVORABLE IN STATE BANKING recent figures figure indicate large increases In crae in deposits Dp olt and invested funds funda improvement in the th condition ot of state banks bank la in almost every respect during 1934 Is I 1 shown by statistics recently to lit sem bled robert M hauss hans president Wa wachovia chovis vl bank and trust truit company winston salem north carolina points out la in an article in banking published by the american bankers asso clation atlon cl the figures altures on which this statement li IS based were ga gathered therod by the committee on state bank research of the th association from reports report furnished by state bank supervisors throughout the country ever since line 1921 the number of state banks has ha been declining mr hanes hand mays between Betwee lL 1911 1981 and hit 1984 the decline wits wag rapid figures for december 31 1934 showed that abat the downward trend has not yet ended but the decline last lait year was the smallest la in twelve years year there are now hesayo he hei says about ton ten thousand state bankst bank which term includes all state chartered institutions with the exception of mutual savings saving banks banki the article continues continue even etan more significant was the ending of the decline of deposits in state banks bank which had been going on since the collapse col lapie of the stock market boom in 1929 in recent year years fo cdx figurea figure are available the drop dro phail his i been particularly abrupt total deposits in state otate banks declined from on december 21 31 1911 1931 to on december 31 1933 the record for 1934 shown show a recovery at the year end significance of increased deposits Depoi iti it is I 1 particularly gratifying to note the expansion ex of at deposits since ance it was wa their decline which made necessary the liquidation of investments the calling of loans and all the other phenomena which go under the name of deflation and have brought banks bank so 10 much dim clem in recent years year it Is I 1 now plain that this was due to efforts effort of at the banks to place themselves la in the possession of enough liquid assets to meet the growing demands of depositor stor or the return of a part of the money which had bad been placed on deposit that this Is true Is borne out by the th movement of invested funds of state banks which has paralleled that of deposits these invested funds loans and discounts plus investments tor for state banks dropped from at the end of 1931 to at the end of 1933 by december 31 1934 however they had recovered to all of this gain Is accounted for by the increase in investments 1934 the expansion amounting to approximately As for or loans and discounts they registered a slight blight drop again la in 1934 but the th rate of decline was much smaller than in previous years which la in itself Is progress whereas the drop in loans and discounts amounted to approximately in 1932 and to approximately in 1933 it was less than ta in 1934 in another respect the balance sheet figures tor for december 31 1931 were as especially ally impressive bills payable and re discounts of the state banks which at the end and of 1912 1932 had reached a depression high of had dropped by the close of last year to the low figure of one must search the records as tar back as 1917 to find bills payable and re discounts of state banks at a lower figure moreover it Is reamona reasonable ble to expect a further reduction of such borrowings during the current year |