Show FEDERAL RESERVE BOARD FINDS BANKING BETTER washington D C A review by the federal reserve board indicates that the condition ot of operating banks particularly in country districts has improved in recent months as shown by the tact fact that these banks have been bee n able to reduce their indebtedness to toe the reserve banks to the reconstruction finance corporation and to others the july bulletin of the board in discussing these findings says at the same time progress has hag been made in in making aking a available V to depositors funds that had been t tied led up la in closed banks banks in financial centres bentres have been out of debt to the federal reserve banks for or a long time and in addition have had a large volume ot of excess reserves at the beginning ot of the year there were still many snail small banks throughout the country however that carried a considerable load of indebtedness country banks backs reflect improvement the liquidation of 0 indebtedness Indebted nesa by these banks reflects in part improvement pro ja in business and the consequent ability ot of customers to repay bank loans which long had been frozen it constitutes a strengthening strengthen log ot of the banking position the board pointed out that the reduction ot of member bank indebtedness has been continuous since the beginning of 0 1932 except for or a brief period during the banking crisis in the spring ot of 1833 1933 the review said in 1932 liquidation ot of indebted ness ot of member banks to the be reserve banks was accompanied by an increase ot of their borrowings borrowing from rom the tha reconstruction finance corporation po ration in tho the past year and a half however ho weyer indebtedness of member tanks to the reconstruction finance corporation his has aso apo been reduced |