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Bank Liquidation Aids Decline in Security Prices New York, Jan. 1 (AP). — The fall in security prices during the latter part of 1931 is attributed, partly, in the monthly review of the Federal Reserve Bank of New York, to an unusually heavy reduction of bank credit. In the second week of December, the review points out, the total loans and investments of weekly reporting member banks of the federal reserve system declined to a volume of $2,500,000,000 smaller than a year previous, and the deposits of these banks showed an accompanying decline of about $3,000,000,000. "Since September," it is stated, "the tendency toward credit reduction has been accelerated, as a decrease of investments has been added to the reduction in loans. This accelerated decline started with heavy withdrawals of deposits from banks, a considerable part of which represented the funds of foreign depositors, following the suspension of gold payments by Great Britain in September. "The ensuing rise in money rates was accompanied by a decline in the prices of high grade securities, and this decline in security values, together with the loss of deposits, appears to have set in motion a cycle of credit reduction which continued after the immediate cause ceased to operate." Bank Suspensions. Hammond, Ind., Jan. 2 (AP). — The Hammond National Bank and Trust company failed today and was placed in charge of R. L. Hopkins, national bank examiner. The bank had capital and surplus of $500,000 and $2,000,000 deposits at last examination. Hartford, Conn., Jan. 2 (AP). — The City Bank and Trust company did not open for business this morning. The bank was incorporated in 1851. In a report to the state banking commission the savings deposits were given at $16,961,220, commercial deposits at $8,622,227, capital $1,000,000 and surplus $2,000,000. Charleston, S. C., Jan. 2 (AP). — The People's State Bank of Charleston, with 44 branches in 41 towns and deposits at the time of its last statement of $24,443,690, did not open for business today. Its board of directors after a meeting, last night issued a statement saying it had decided to turn the affairs of the system over to the state bank examiners for a period of 30 days pending efforts toward reorganization. The bank, one of the oldest in the state, was capitalized at $2,000,000 and listed its total resources in its last statement, September 29, at $28,773,802. Owensboro, Ky., Jan. 2 (AP). — The Central Trust company of Owensboro failed today. Frozen assets were said to have caused the closing. The bank, established 43 years ago, had deposits of $2,481,124. Topeka, Kans., Jan. 2 (AP). — The closing today of the Home State bank of Junction City, was announced by the state banking department. Frozen assets was given as the reason for the closing. The bank's October 10 statement to the department listed $25,000 capital; $7,000 surplus; $160,000 deposits; $18,145 borrowed money, and $178,000 loans. Minneapolis Bank Stocks. Minneapolis, Jan. 2 (A. P.) — Bid. Ask. Close. First Bank Stocks..... 12 12 1/4 12 1/8 Northwest Bancorporation 21 1/4 21 1/2 21 1/4 Standard Statistics reports 68 unfavorable dividend changes last week compared with 86 in the preceding week. Dividends were reduced in 35 instances and omitted in 33. Favorable changes were made up of 12 extra dividends, two increased and two initial.