N. C. C.

Last week, four weeks after its impressive advent upon the national banking scene, National Credit Corp. made a report about itself, told how it was getting on, what it was doing. John Maffit Miller Jr., N. C. C. director in the Fifth Federal Reserve District (Richmond, Va.) arose before the Investment Bankers Association in convention at White Sulphur Springs and reported:

1) About $400,000,000 of the Corporation's capital had been subscribed, with $200,000,000 more "in sight."

2) Calls for 10% of amounts pledged would be made this week.

The contrast of $400,000,000 with the $500,000,000 figure which was originally mentioned as N. C. C.'s objective, and with the billion which was later written into its charter, was not taken by Mr. Miller's listeners as an ominous sign. On the contrary, the fact seemed to be that the mere planning and organizing of N. C. C., in advance of its completion and operation, had profoundly ameliorated the conditions which had made N. C. C. seem necessary. Since credit is almost entirely psychological, the main effect of the national banking stabilizer was psychological, immediate, far ahead of its actual financial performances. It began to be seen that, with a $400,000,000 cash reservoir to draw on, N. C. C. might never actually have to advance any large sums to banks on the verge of trouble.

In the Chicago district George McClelland Reynolds, National Credit's chairman, said only $2,100,000 in loans had been approved. Other districts reported no loans at all. It was because of the small applications that it had not been thought necessary to call on subscribers for debenture payments. Instead the Corporation had just borrowed money from local banks and passed it along.

Other evidence of better banking conditions showed clearly last week in reports of the Federal Reserve System. Ratio of the twelve district banks' reserves to deposits & notes rose from 61.5% on Nov. 4 to 62.5% last week. Currency in circulation dropped $24,000,000 in the week ended Oct. 29, increased $63,000,000 the next week (about normal for any month-end), dropped again for the week of Nov. 11 by $26,000,000. The gold drain from the U. S. tapered off and for the past fortnight the Reserve showed a gain in holdings of $59,000,000.

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