The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE C ald w ell H ardy, BANK OF R I C H M O N D F ed eral R eserve agent General Business and Agricultural Conditions in the Fifth Federal Reserve District for the Month of January, 1920 (Compiled February 16, 1920) The new year, 1920, has opened prosperously, with no indications of any general business curtailment in sight. All classes of merchants are busy, reserve stocks are small and demands from consumers are increasingly active, especially for the better grades of merchandise. Wholesalers report practically no “after holiday” slump. The drygoods and textile jobbers are doing a very large volume of business, made up of many small orders. Retailers hesitate to contract far ahead at present prices, but are ordering more frequently so as to supply the constant demand from consumers. Jobbers of foods report large sales and the free purchase of luxuries and high grade goods by retailers and consumers. Stocks are low and several jobbers fear a shortage of supplies, with higher prices. Collections continue good and a more wholesome tendency to avoid speculative buying is reported in all lines. Borrowing is being Jimi^ed •to^uec^jar y purposes and efforts to restrict loans for speculation are being jae^fed?*’ Failures are* revy* liabilities lower still. ** *»*••* **«•* During January, 1920, there were thirj^*rfrre fatluKas.as.agaiy^t^iirty'f&ir jn January, 1919, but the gross liabilities for those in i^Vamoun1ted;f c * ' d r y ,943 as corritjared to liabilities of $617,155 for those in January, itjijj. This- wpul$, sherry to showrtllat th£ high prices have been unfavorable to small firms but have rfot*s%ffousK" ’dffecfed the larger, well capitalized houses. The greatest activity is found in the building trades and allied industries, the volume being limited only by the capacity of mills and the labor supply. The great demand for homes and residences is still unsatisfied, and there seems small chance of soon catching up with this need. Several cities report shortages of from 300 to 500 houses for homes, and at least one city has formed a Home Corporation to buy property and erect homes in numbers. Norfolk reports that “the building program in Virginia and North Carolina has not only not caught tip with the shortage existing during the war, but has not kept pace with normal build ing conditions required through the growth of the various communities.” FEDERAL RESERVE BANK OF RICHMOND BALAN CE SHEET AS OF FEB. 20, 1920 RESOURCES CASH RESERVES Gold Redemption Fund— Federal Reserve N o tes. . Gold with Federal Reserve A ge n t......... . . Gold Settlement F u n d ..................................................................... . Gold Certificates and C o in ......... Gold with Foreign A gencies.......... Legal Tender N o tes................ Silver Certificates and C o in .......... T o tal Cash R e serve s.. UNCOLLECTED ITEMS, ETC. National and Federal Reserve Bank Notes (Other B a n k s). . Federal Reserve Notes and Other Currency (Other B a n k s).. Nickel and Copper C o in ....................... . . . Checks and Other Cash Item s......... Exchange for Clearing H ouse........................................................ 5 % Fund against Federal Reserve Bank Notes (Our O w n ).. O verdrafts........ Transit Item s.............................................. T otal Uncollected Items, e t c . . P 9 , 720,552 49 3 3 ,380,145 00 28,355.91313 2,319.825 00 5,528,285 75 186,900 00 120,83175 $ 79,612,453 12 210,000 00 1,618,735 00 10 69 145,700 01 2,996,173 98 503,300 00 73,465 54 65,488,148 42 EARNING ASSETS Bills Discounted and B o u g h t......... U. S. Government Securities.. . 71,035,533 64 , 114 045,78215 13,494,600 00 $127,540,38215 LESS Unearned Discount and Reserves for Depreciation in U. S. Securities (after deducting accrued in terest)................ T otal Liquid Value Earning A ssets......... MISCELLANEOUS ASSETS Advance to U. S. Government for W ar Loan E x p en ses.. Other Deferred C h arges............. Real Estate and Equipm ent................................................. T otal Miscellaneous A s s e t s . .......... .. T O T A L R^SaCTk’C^:^. CAPITAL AND PROFiJS*. OFU.S-.' C apital Paid In », • Surplus........... Unapportioned Prcffits---- / .. .j .j. T o tal Capital •: V ; •*. 127,258,158 62 221,125 68 24,286 94 563,28412 808,696 74 . $278,714,842 12 /. , . j ......... LIABILfrflig **. • \ > * ... : / /• V.V; ^ • • ••• • ••• • • .............. ........................v ;*•••, ..................... . 282,223 53 . ... . • • • . * * • • • - *•••■ • . . * I ••• .V J............. NOTE CIRCULATION, DEPOSITS, ETC. Federal Reserve Notes in A ctual Circulation (Our O w n )............ Federal Reserve Bank Notes in A ctual Circulation (Our O w n).. U. S. Treasurer........... Member Banks’ R eserves........ Foreign Government C redits.. Cashier C h ecks........................................... Deferred A vailability Items (T ran sit)............... Reserve for Taxes Other than Franchise T a x ....... A ll Other L iabilities............................................. T otal Circulation, Deposits, e tc ............... T O T A L L I A B I L I T I E S ... , 4,540,200 00 5,820,462 63 702,725 28 11,063,387 91 : 129,632,050 00 11,644,752 00 1,515,868 77 60,296,335 88 3,542,408 75 78,115 33 60,905,892 05 19,970 00 16,061 43 267,651,454 21 $278,714,842 12 Memo: D ue U. S. Treasurer by Member Depositary B a n k s .. $1,494 00 The figures for building permits for January follow: December Number of Cities Reporting Number of Permits Issued.............. Estimated Cost of New Construction, Improvements and Repairs. January Decrease 23 2,178 21 2,066 2 112 $7,337,260 $6,932,197 $405,063 There is widespread dissatisfaction with the inefficiency of labor. Several reports give sixty to seventy per cent, of pre-war production as the best that can be gotten now. Wages of labor show no lower tendency, but, on the other hand, advances are noted in some particular lines. A majority of reports show, however, that labor is more abundant and better satisfied at present than it was thirty or sixty days ago. Cotton manufacturing plants are making large profits and there is considerable trading in mill stocks. Many mills are remodeling and replacing obsolete machinery with modern equipment. Furniture manufacturers can not fill their orders. Raw material, especially good grades of lumber and glass, is very hard to secure even at abnormally high prices. Coal producers are running below capacity, because of car shortage. Paper manufacturers are very active and far behind with their orders, with a shortage of pulp. The rag market is easing, due to large imports of rags. Demands for empty cars exceed the supply in every line of business reported and one shipper of perishable goods reports that it has been necessary to close one plant because of the impossibility of making deliveries before the goods are spoiled. Crops are bringing high prices, and indications are that farmers are purchasing new agricultural implements freely. The wagon trade is especially active, with factories rushed to fill orders and raw material scarce. The boll weevil was seriously felt last fall in South Carolina and reports indicate a general uncertainty regarding cotton planting this year over about half of that State. The Piedmont and eastern sections of South Carolina, however, have had unprecedented prosperity. Trading in real estate in these sections is very active and at high prices; much of it is specula tive and unhealthy. The North Carolina tobacco crop as reported has exceeded Government estimates already, with probably 3,000,000 pounds sJEllfcMt sale. Iiv.aaailion, approximately 3,000,000 pounds were raised in North Carolina but sold and reported in Tennessee or Virginia. The total value of this season’s crop is estimated at more than $165,000,000. Severe cold in South Carolina has hurt the truck crops on the coast, especially the producers of early cabbage plants. The truck acreage in vegetables and potatoes will be largely increased. The Beaufort area is planning for between 3,000 and 4,000 acres. Rail roads report the handling of three to four times as much seed stock as last year, but much of this stock was damaged in shipment by frost and therefore the acreage may be affected to some extent. Reports of epidemics of grippe and influenza seem to show some injury to trade and manufactures, because of the absence of numerous people from their customary business. In the northern part of this district these epidemics appear on the decrease but are giving trouble further South, many towns reporting limited quarantines. Clearings show an increase of 23.4% over the corresponding month last year. Money is in demand at full rates, but the needs of the district are being amply provided for. While deposits have shown some shrinkage, many banks, when deposits were at high water, invested freely in outside high-grade commercial paper. They are therefore fortified to some extent to meet a normal shrinkage in deposits and partially supply the demands for pitching this year’s crops.
@FedFRASER