| Show RUSH IN MADE I IBY BY BORROWE SI Banks From Atlantic To Middle West Report Unusual Demand By ny DARDEN COLFAX SpecIal l Correspondent of ot The Thi I Copyright ht 1923 WASHINGTON July The H-The 1 14 entire Atlantic seaboard from Maine to South rushed to the bank to borrow m ney durl during the past part two weeks according to returns to the tho reserve board made public today from the 36 chief banking institutions Institution In Inthe inthe Inthe the territory affected The amount of o money lent by thes banks bank during the tho fortnight aggregated more mor than on new loans loaM This is at the th rate I of at about for tor every bus bus- business iness Incas day of that period and stands as a new high record I The Tho Th boards board's returns show that the tho wave of borrowing In-I In in- in inland In Inland land as 8 a far as Ka Kansas City At AtI I CleVeland the force of the tho move move- movement movement movement ment was wa so strong strone that nearly In new loans were ex- ex extended ex extended tended by banks of that reserve i district By the tho time tho wave had reached Chicago however the boards board's compilation shows Its strength had waned consIderably New loans In that reserve district during the two weeks i totaled loss less than while at Kansas City the wave ae dribbled in with a comparatively puny total of at U- U 2 In new loans loan and had di- di dis entirely GROWn REVEALED Rr Elsewhere throughout the coun coun- country coun- coun country country try during the same time ers n not nt t anI only failed to increase their obligations but actually reduced then them The movement is one of the mot most remarkable ever noted In Washington Here Her Is the story tory of Increased borrowings in a nutshell Forty five banks through New England Ingland lent Emt ers borrowers an addi addi- additional addi- addi additional additional during tho the two weeks One Ono hundred and nine banks bank in New York City and locality In- In Increased increased In Increased creased their loans by Fifty banks In Philadelphia and other territory in the third reserve district Increased their two Eighty r banks In the fourth federal reserve district with head head- headQuarters headquarters headquarters quarters at Cleveland increased their loans Seventy-seven Seventy banks from Bat Bal timor Bal to South Carolina reporting to to the Richmond federal reserve bank increased d loans loan One hundred and six sin banks In inthe inthe the Chicago district increased loans 11 In the tb Kansas City district 77 71 banks Increased loans SOME FAXING B CK B iCK CK Against these Increases stand the repayments of ot borrowers borrower In five reserve distrIcts di resulting In a reduction in loans as aa follows Atlanta district thIrty nine thirty I banks a reduction of o St Louis district dl 36 banks a o re- re reduction re reduction I of MInneapolis district 29 banks a reduction of at Dallas district 62 52 banks a n reduction ot of ban Francisco l district 66 C ronks a reduction of ot 40 With the heavy Increase In hank bank s the total stands today ac- ac according according ac according cording to the s a figures ot at nearly 0 billion dollars an In- In increase In Increase crease creaso of o within sIx months and of more than 1000 within a 0 a jear 5 ear These figures represent the th combined loans of of tho the largest banks bank in the chief cities of ot the tho th United States They rhoy are tire veering rapidly toward the high mark marh set et In 1920 1 20 just lust prIor prior or to the tho period p of economic ro- ro readjustment re readjustment adjustment but ha base haie 0 not yet como come near the danger dancer line INTO MARKET Where did tho the money go The ans answer er as indicated by tho boards board's board tabulation Is almost as us startling as the tho tact fact itself It appears appear to have gone cono to the extent of at between 60 and 70 per cent cent into tho ho stock staCie market there is s no abSolute absolute absolute lute proof ot o this thi tile tao Indications all point to that conclusion Tho inference Is based on tho the character of the tho loans and disclosed In the boards board's reports New Yorks York's 10 banks tor for the tance lent on stocks and bonds bond during t the two weeks weeks- weeks an unusually high total den een for roaring bull markets Vo when hen the public Is buyIng like a drunken d sailor allor Other kinds of transactions In tho New York dIstrIct barely moved Halt Half or at the th new loans of at the New England banks were made on the tho same amo sort ort o of at se- se e the tho other half apparently to satisfy tho the legitimate require require- requirements requirements requirements ments of business 0 Philadelphia lent but a II million on stocks tock and bonds An- An An Another other oilier million was lent on govern govern- government ment covern-ment ment bonds bonds may my havo been hypothecated tor for stock tock mar mar- market market market ket purposes and purposes and the tho remainder seems to have hove gone eon to business en- en enterprIses en 1 sais bIX IS TO EXPAND But Dut In Cleveland the th stock tock mar mar- market market ket appears to haic ha made a heavY call upon the th banks for In that district or more snore than 60 per cent of the total was wa lent upon tho the security of at tocks stocks and bonds cleveland Cleveland bankers appear to have been satisfied with that form of for tor they did not demand government bonds bond the tha re- re report re report e port shows hows as m collateral tor for the tho ac- ac ac accommodation extended borrowers Forty per cent of the loans In iii In that dIstrict went Into business chan chan- channels chan chan- channels nd nels The Th boards board's figures afford orford sir vir vir- vir no Index as to the tho probable effect of the tho borrowing market but there thre appears to bo be no rca rea- reason rca NOn son to believe It will soon oon ho he b spent Rather it seems to be b accelerating The net in loans for tor tho country for forth divided in the the tho two weeks was ratio of forth forthe for the th first week weel of the tho fortnIght and ond for tor the th second Vero that ratio to be b maintained for tor tv two a weeks necks which more more which Is as 01 somewhat unlikely they here her would show borrowIngs of nearly |
