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MONTHLY REVIEW BUSINESS AND AGRICULTURAL CONDITIONS WILLIAM W. HOXTON, C h a irm a n an d F e d e r a l R e s e rv e A g e n t RICHMOND, VIRGINIA JANUARY 31, 1925 Fall trade was slow in opening up in 1924, and Both the Reserve Bank and the commercial banks September, October and November were all some of the District are in stronger reserve positions than a year ago. The Reserve Bank’s ratio of cash to what disappointing, although distinct signs of im provement became visible in November as soon as combined deposit and note liabilities is materially the election was out of the way. December busi higher than it was in January 1923, indicating in creased reserve of credit for legitimate demands ness, however, exceeded expectations in nearly all that may be made upon it, and the commercial lines. A decided feeling of optimism has recently banks are rediscounting much less than they were developed in the business world, and on the whole the Fifth District appears to be in a condition that a year ago, and have considerably increased their investments in stocks and bonds. The financial re justifies this feeling. No boom in trade seems to sources of the banking public are evidenced by large be expected, but practically all of our correspondents increases in both demand and time deposits in com profess to believe that the next few months will mercial and savings banks and trust companies. witness enough trade to keep every one busy and to return reasonable profits to manufacturers, whole Labor is well employed for this season of the salers and retailers. There are a few weak spots year. There is more unemployment than was the in the District, but except in the lower half of case two or three months ago, but this is to be exSouth Carolina, where there was a virtual crop pSRied during the winter when much outside work failure in 1924, none of them are serious in com has to be postponed until more favorable weather parison with average conditions over a term of arrives. Textile workers and miners are better em years. Nineteen twenty-four witnessed lower yields ployed now than they were last fall and lumber in nearly all the leading crops in comparison with mills are using many unskilled laborers. Tobacco 1923 yields, but it should be remembered that ag factories are running full time. ricultural returns in the Fifth District were ex Retail trade in December was better than early ceptionally high in 1923 and the decrease in 1924 season business would have led one to expect, and probably appears more serious than it really is be wholesale trade was fully up to seasonal average cause the comparison is with 1923, an exceptionally in nearly all lines upon which accurate information good year. is available. The large volume of business done during December is evidenced by debits to indi The greatest improvement discernible in conditions vidual accounts at clearing house banks in twentyin the Fifth District now in comparison with a year three: I^ trict’s leading cities, these debits ago is probably in cotton manufacturing. In Jan durinp.tfifc ending January 7th exceeding uary 1923 mills were receiving almost no forward orders, and were either accumulating stocks or were% /•t!}«•dibits *durilrg* th^»*Jonr weeks ending December curtailing operating time, and conditions were slqwfjt/*. 10th, in spite of the £ jct#dtfit in most years comE*ara^elv little business.*is . transacted between but quite steadily growing worse. In contra§i* ChrfejwapJajf^ fJ ^ / Y e a r ’s!*!* . mills are at present receiving a considerable .vfliqlne of orders, and during the past two or throte'tiiQftths ##Bli!Mifig,##conkru€tion coriiffiiled in remarkable most of them have cleared away their surplfr&^tocks#. #volume during December, both*#lflj^number of perBetter still, conditions appear to be on the mend no^» • : Jrpits/^s|ite|**3 nd:#ibe: •estimated* valuation of the in contrast with the declining tendency in evident I Work* reported in December a year ago. 1923, which was it*seli a record breaking Decem ber. The volume of construction work for which Another industry in which conditions seem to have permits were issued in twenty-eight cities of the improved since January 1923 is coal mining. There Fifth District broke all previous records in 1924. has recently been a sharp gain in orders received A large amount of construction work goes a long for bituminous coal, and mine operations have in way toward assuring general activity, and there are creased accordingly, with resultant increases in pay as yet few signs of any material reduction in build ing operations in the Fifth District. envelopes and purchasing power. j The National Summary will be found on pages 9 and 10. CONDITION OF SEVENTY-FIVE REPORTING MEMBER BANKS IN SELECTED CITIES ITEMS 1. Total Loans and Discounts (including all rediscounts) ............................................ 2. Total Investments in Bonds and Securi ties ..................................................................... 3. Total Loans and Investments...................... 4. Reserve Balance with Federal Reserve Bank ................................................................ 5. Cash in Vaults................................................... 6 . Demand D ep osits............................................ 7. Time Deposits ................................................ 8 . Borrowed from Federal Reserve Bank.... Jan . 7, 1925 Dec. 10, 1924 Ja n . 9, 1924 $ 479,960,000 $ 476,426,000 $ 472,921,000 134.469.000 614.429.000 131.785.000 608.211.000 127.991.000 600.912.000 39.574.000 15.461.000 364.201.000 181.578.000 13.250.000 39.157.000 15.881.000 369.776.000 178.600.000 6,373,000 37.288.000 15.028.000 353.950.000 152.834.000 30.870.000 The accompanying table shows the principal items of condition reported by seventy-five identical banks as of three dates, January 7, 1925, December 10, 1924, and January 9, 1924, thus affording an opportunity for comparing the totals reported for the latest date with those reported for the preceding month and on the corresponding date a year ago. It should be understood, however, that the comments made herein apply only to the figures for the dates given, and have no reference to intervening dates on which figures may have been higher or lower than those quoted. Between December 10, 1924 and January 7, 1925, total loans to customers in the seventy-five reporting banks increased from $476,426,000 to $479,960,000, an increase being usual at the end of the year when many people meet their holiday requirements by borrowing for a month or two. This seasonal demand for ad ditional credit, together with dividend payments by the banks themselves and various other end-of-year trans actions, caused the reporting banks to increase their rediscounts at the Reserve Bank from $6,373,000 on De cember 10th to $13,250,000 on January 7th, but most of the increase was on short time notes to provide for temporary needs. During the month under discussion, investments in bonds and securities made by the re porting banks rose from $131,785,000 to $134,469,000, and their aggregate reserve balance at the Reserve Bank increased from $39,157,000 to $39,574,000. Due to les^ demand for cash after the Christmas season, cash in vaults declined from $15,881,000 on December 10th to $15,461,000 on January 7th. Demand de posits fell off from $369,776,000 to $364,201,000, probably as a result of heavy dividend and other annual payments on January 1st by depositing firms and corporations, but time deposits rose from $178,600,000 to $181,578,000. A comparison of the figures reported for January 7, 1925 with those reported on January 9, 1924 shows that during the intervening year the financial position of both the reporting banks and their customers im proved distinctly as a whole. During the year total loans and discounts granted to customers rose from $472,921,000 to $479,960,000, but deposits rose much more, reflecting a net gain in financial resources by the reporting banks' customers. Demand deposits increased from $353,950,000 on January 9, 1924 to $364,201,000 on January 7, 1925, and time deposits increased from $152,834,000 to $181,578,000 between the same dates, a combined increase of $38,995,000 in deposits. Total investments in bonds and securities made by the reporting banks rose during the year from $127,991,000 to $134,469,000; their reserve balance at the Reserve Bank rose from $37,288,000 to $39,574,000; their total cash in vaults increased from $15,028,000 to $15,461,000; and their rediscounts at the Reserve Bank decreased from $30,870,000 to $13,250,000. FEDERAL RESERVE BANK OPERATIONS Between December 15, 1924 a n d x9 25 > outstanding rediscounts for member banks at the Federal Reserve Bank of Richi^ojid.Vfejstfei^ a net decline, dropping from a total of $29,681,000 to $25,484,000, and the lessened a£tfef.*t3ie holidays caused the volume of Federal Reserve notes in actual circulation to .tieclitfs ’from $89,136,000 to* $^8^3,000. Member banks increased their reserve de posits during the month#**fr&m $65,168,000 to $6g,58o,tfpQ,*^)ut the cash reserves of the Federal Reserve Bank of Richmond d&tflhkd f?pgi.$?3a3§^crtC)Jto ^ 1 2 3 , 2 * ^ 2 As a result of the changes enumerated, the ratio of cash reser^€s/to combirifd*»lfofeVp4 liabilitie^#d§£lkied from 84.18% on December 15th to 83.03 % on Janua/^>i#5th. ’ * ..*%## On January* 1924,. rq^scoante hold* fry/Jhe Ffedejral* Reserve Bank of Richmond totaled $45,956,000, compared with $25,484,00^ } afifiai^.* ^5th» Ifbjs;ye&r, and during the year the circulation of Federal Reserve notes dropped from* to *$79,083,000. Member bank reserve deposits rose during the year from $62,611,000 to $65,586,000, and the cash reserves of the Reserve Bank increased from $112,244,000 to $123,222,000. The reserve ratio of cash to combined note and deposit liabilities increased from 70.0% on January 15th last year to 83.03% on January 15th this year. SAVINGS BANK DEPOSITS Total deposits in fourteen regularly reporting mutual savings banks in Baltimore amounted to $146,163,741 on December 31, 1924, the highest figure on record. A year ago, on December 31, 1923, deposits in these banks totaled $140,660,000; on December 31, 1922 deposits amounted to $132,253,796; on December 31, 1921 the total was $124,287,362; and on December 31, 1920 it was $121,238,025. 2 BINDING SLIP LIBRARY FEDERAL RESERVE BANK OF PHILADELPHIA Date ......................................................................... Binding N o............................................ ..... Author ..................................................................... ~W\G.r M ( C* *■+ C*# ^jucJUA<€kjL Title ....^ .................<Tr!J........ ;..... > - 4 $ . f; ..... ... . ........ ...................... .............................................. Volume................................................................... Color....( M i & d L f ! ................................................. Style .... .7T......................... ........................................ Vj Label EXACT LETTERING ....^ m M k p E s u L ...... ...1.v^.fiMKsJk*.. »* .^ J k k d k k d L .Ofcfit DEBITS TO INDIVIDUAL ACCOUNTS IN LEADING TRADE CENTERS TOTAL DEBITS DURING THE FOUR WEEKS ENDING CITIES Asheville, N. C.................. Baltimore, Md.................... Charleston, S. C................ Charleston, W . V a........... Charlotte, N. C.................. Columbia, S. C.................. Cumberland, Md......... ...... Danville, V a......................... Durham, N. C.................... Greensboro, N. C.............. Greenville, S. C.................. Hagerstown, Md................ Huntington, W . V a......... Lynchburg, V a.................. Newport News, V a......... Norfolk, V a......................... Raleigh, N. C.................... Richmond, V a..................... Roanoke, V a......................... Spartanburg, S. C........... Washington, D. C........... Wilmington, N. C.............. Winston-Salem, N. C....... Totals ....................... Jan . 7, 1925 $ 21,085,000 369.631.000 30.598.000 41.581.000 47.761.000 19.004.000 8.063.000 11.504.000 20.409.000 24.731.000 24.106.000 9.123.000 29.146.000 21.554.000 7.070.000 71.858.000 25.775.000 125.823.000 28.270.000 15.402.000 208.822.000 21.471.000 30.154.000 $1,212,941,000 Dec. 10, 1924 $ 20,373,000 371.900.000 24.121.000 35.567.000 45.030.000 19.739.000 8.425.000 13.484.000 22.373.000 25.655.000 25.210.000 9.137.000 26.384.000 19.210.000 8.538.000 82.468.000 23.799.000 132.778.000 26.040.000 17.504.000 197.434.000 21.469.000 30.598.000 $1,207,236,000 A N N U A L TO TALS* Ja n . 9, 1924 $ 21,412,000 358.200.000 29.383.000 36.085.000 45.011.000 28.495.000 8.487.000 11.798.000 20.450.000 22.282.000 28.300.000 9.611.000 25.079.000 20.442.000 6.757.000 74.160.000 28.599.000 132.393.000 24.154.000 12.404.000 178.721.000 21.657.000 28.342.000 $1,172,222,000 1924 $ 286,320,000 4.599.048.000 314.732.000 431.037.000 535.649.000 257.559.000 110.606.000 121.652.000 247.891.000 279.783.000 273.770.000 123.852.000 318.940.000 236.431.000 86,369,000 841.817.000 342.015.000 1.542.397.000 304.889.000 174.181.000 2.426.904.000 245.877.000 392.140.000 $14,493,859,000 1923 $ 259,243,000 4.508.542.000 352.698.000 455.846.000 492.377.000 293.327.000 108.912.000 120.445.000 235.817.000 267.789.000 283.354.000 124.549.000 316.948.000 246.291.000 90,727,000 887.150.000 363.621.000 1.572.851.000 290.182.000 142.927.000 2.316.443.000 253.217.000 377.998.000 $14,361,254,000 *Figures shown for 1924 run from December 27, 1923, to December 31, 1924, and those shown for 1923 run from December 28, 1922, to December 26, 1923, all dates inclusive. As is our monthly custom, we show in the accompanying table total debits in the clearing house banks in twenty-three of the chief trade centers of the Fifth Reserve District during three equal periods of four weeks, ending on January 7, 1925, December 10, 1924, and January 9, 1924, thus affording an opportunity for comparing the latest four weeks period with (1) the preceding period, and (2) the corresponding period last year. In addition to the figures for the four weeks period, we show this month total debits for each reporting center during the years 1924 and 1923. During the four weeks ending January 7, 1925, aggregate debits in the twenty-three centers amounted to $1,212,941,000, compared with $1,207,236,000 reported for the four weeks ending December 10, 1924, an increase of $5,705,000 during the more recent month. Larger debits during the period ending January 7th than during the corresponding period a month earlier is contrary to seasonal trend, and reflects either an unusually heavy last minute trade before Christmas or exceptionally large payments of interest, dividends, insurance premiums, taxes, etc., between December 10th and January 7th. The four weeks ending January 7, 1925, with total debits of $1,212,941,000, show an increase of $40,719,000 over the total of $1,172,222,000 reported by the same cities during the four weeks ending January 9, 1924, although only eleven cities reported gains while twelve cities reported lower figures this year. Im provement is noticed in the centers influenced by conditions in the West Virginia coal fields, while many of the tobacco and spot cotton centers show decreases. In comparison with total debits in 1923, debits for 1924 show a total increase of $132,605,000, rising from $14,361,254,000 in 1923 to $14,493,859,000 in 1924. Twelve of the twenty-three reporting cities showed larger figures for 1924, Spartanburg, S. C., leading the District in rate of increase with a gain of 21.9% and Asheville, N. C., coming second with a gain of 10.4%, the chief factor in both these large increases probably being construction work. BUSINESS FAILURES IN THE TWELVE FEDERAL RESERVE DISTRICTS DECEMBER, 1924 AND 1923. Business failures in the United States during December 1924 numbered 2,040, with liabilities amount ing to $45,279,281, compared with 1,841 failures and liabilities amounting to $51,614,730 in December 1923, an increase of 10.8% in number but a decline of 12.3% in liabilities during the more recent month. In the Fifth District, December 1924 insolvencies numbered 152 and combined liabilities were $2,771,624, com pared with December 1923 insolvencies numbering 98, with liabilities amounting to $7,413,606, an increase in number of 55.1 % but a decline in liabilities of 62.6%. Reviewing the year 1924 in comparison with 1923, an increase in both the number of failures and the total of liabilities is noted. During 1924 there were 20,615 insolvencies in the United States, with combined 3 P er Cent Increase or Decrease Number City and District Boston, F ir s t ......................................... New York, Second .............................. Philadelphia, Third ........................... Cleveland, Fourth .............................. Richmond, F ifth .................................. A tlanta, Sixth ....................................... Chicago, Seventh ................................ St. Louis, Eighth.................................. Minneapolis, N in th .............................. Kansas City, Tenth.............................. Dallas, Eleventh .................................. San Francisco, Twelfth....................... Totals.......................................... ........ 1924 1923 182 450 99 173 152 123 304 157 382 109 155 98 94 234 96 93 96 148 179 15.6 — 64.9 11.7 1,841 1 0 .8 100 94 111 52 200 2,040 15.9% 17.8 — 9.2 1 1.6 55.1 30.9 29.9 4.2 1.1 % Liabilities 1924 $ 4,847,858 82107,914 1,812,308 3,678,704 2,771,624 2,445,897 7,962,883 2,133,944 2,032,300 6,667,478 368,159 2,450,212 $ 45,279,281 1923 $ P er Cent of Increase or Decrease 2,149,587 18,710,337 2,272,823 3,006,938 7,413,606 1,370,250 5,148,003 1,954,500 2,842,381 2,199,495 2,046,743 2,500,067 125.5% — 56.7 — 20.3 22.3 — 62.6 78.5 54.7 9.2 — 28.5 203.1 — 82.0 — 2.0 $ 51,614,730 — 12.3% liabilities of $543,225,449, compared with 18,718 insolvencies and $539,386,806 in liabilities reported in 1923. The number of failures in 1924 increased about 10 per cent over the number in 1923, but liabilities increased less than 1 per cent. The average liability per failure dropped from $28,816 in 1923 to $26,351 in 1924. In the Fifth District, 1924 witnessed a total of 1,440 insolvencies, with liabilities amounting to $73,303,170, compared with 1,206 insolvencies with liabilities of $36,403,775 in 1923, the great increase in liabilities being due to one manufacturing failure involving about $40,000,000 of indebtedness. The figures contained in this section were taken from Dun's Review of January 10th. LABOR— There is at present a good deal of unemployment in the Fifth District, but it is probably almost entirely seasonal and appears to be somewhat less extensive than in most years. The volume of con struction work continues large, but a great deal of building has been delayed because of unfavorable weather during the past month or six weeks. Factory work, which is little influenced by severe weather, is going on unchecked, tobacco manufacturers running full time and textile mills steadily increasing their operations. Lumber mills are running full time when the weather permits, and the recent cold weather has increased the demand for coal, with a resulting increase in mining operations. A large amount of road building is either under way or is projected for the near future, and railroads are making improvements to their tracks, bridges, etc. Relations between workers and employers seem generally satisfactory throughout the District, no serious friction being noticeable. COAL— Xccording to the Geological Survey reports, the recent cold weather swelled the demand for coal throughout the country, and mine production increased sharply, reaching a daily average output of 2,092,000 tons during the week ending January 10th. From the middle of November the daily output of the bituminous mines exceeded production during the corresponding period a year earlier. Preliminary es timates of annual production during 1924 total 467,700,000 net tons, a daily average of 1,520,000 tons, com pared with a total 1923 production of 564,157,000 net tons, a daily average of 1,844,000 tons. Although considerably behind 1923 in total production, 1924 output exceeded that of either 1922 or 1921. At retail, coal was plentiful during the entire year 1924, and prices ruled approximately 10 per cent below the 1923 level. Retail dealers had sufficient stocks on hand during the year to fill all orders promptly, and consumers did not do much storing of coal, having no fear of a shortage. TEXTILES — The outlook in the textile field at the beginning of 1925 is much brighter than it was a year ago, and evidence to support this point of view is not lacking. During the past two or three months operations in the Southern mills have gradually expanded, stimulated by a broadening of demand for cotton goods, and lower cotton prices have enabled the mills to operate more profitably. Surplus stocks have been pretty well cleared out of the way, and the goods needed in 1925 will have to be manufactured. Mill ex ecutives state that there is little profit in their current business, except in some special lines, but they are at least paying expenses and are holding their forces together in anticipation of a larger and more profitable business a little later in the year. During December the Fifth District mills consumed 207,380 bales of cotton, compared with 204,764 bales consumed in November 1924 and 182,042 bales used in December 1923. The Fifth District consumption during December amounted to 39% of national consumption. COTTON— Spot cotton prices since the week ending December 13th have ruled from a quarter to half a cent a pound higher than during the first two weeks in December, and fluctuations have moved through a narrow range. The price paid cotton growers for middling cotton in the Carolinas averaged 22.40 cents per pound during the week ending December 13th, but the following three weeks witnessed a gradual rise, the price averaging 22.73 cents per pound during the week ending December 20th, 22.86 cents during the week ending December 27th, and 23.69 cents during the week ending January 3rd. The week ending January 10th witnessed a decline, however, the average price dropping to 22.97 cents. The week ending January 17th, the latest period for which figures are available, averaged 23.08 cents per pound. 4 Cotton consumption in American mills increased 8. i per cent during December in comparison with November, the number of bales used rising from 492,233 bales to 532,047 bales, in spite of the fact that Christmas holidays usually cut into December consumption quite heavily. In December 1923 American mills used 463,789 bales, 14.7 per cent less than in December this year. Cotton on hand in consuming estab lishments at the end of December totaled 1,319,265 bales, compared with 1,046,612 bales on November 30, 1924, and 1,623,453 bales on December 31, 1923. P*ublic warehouses and compresses held 4,623,863 bales on December 31, 1924, compared with 4,914,219 bales on November 30, 1924, and 3,526,164 bales on De cember 31, 1923. Cotton consumed in the cotton growing states in December amounted to 355,662 bales, compared with 347,548 bales in November 1924, and 308,466 bales in December 1923. December imports totaled 48,663 bales, compared with 17,549 bales in November 1924, and 35,601 in December 1923. Exports in December amounted to 1,075,923 bales, compared with 1,306,550 bales in November 1924, and 845,581 bales in December 1923. Since August 1st a total of 4,344,676 bales has been sent abroad, in comparison with 3,323,951 bales exported during the corresponding five months of 1923. TOBACCO— The monthly tobacco sales report issued under the authority of the Virginia Commis sioner of Agriculture states that 12,424,116 pounds of Bright tobacco were sold in December, for an average of $21.68 per hundred pounds, in comparison with 12,230,972 pounds sold in December 1923, for an average price of $20.04 Per hundred pounds. Danville led the Bright markets in both number of pounds handled and average price paid, selling 6,353,817 pounds for an average of $23.06 per hundred during the month. Dark tobacco sales aggregated 8,281,983 pounds, for an average of $20.68 per hundred, compared with 6,281,680 pounds for an average of $17.34 per hundred sold in December 1923. Lynchburg, with sales of 2,373,337 pounds, led the Dark markets in volume of sales, but Drake's Branch led in average price, selling 684,165 pounds at $23.50 per hundred. The total sales for the season to January 1st, including receipts of the To bacco Growers Co-operative Association amount to 79,318,732 pounds, compared with sales of 87,852,510 pounds to the corresponding date a year ago. The amount of tobacco that has been marketed is 54.3 per cent of the estimated crop for the season,while last year 55.1 per cent of the crop was marketed prior to January 1st. The grades of tobacco sold in December averaged lower than those sold in November, but were better than those sold in December 1923. In North Carolina, producers’ sales of tobacco in December totaled 29,327,163 pounds at an average of $23.60 per hundred pounds, compared with 45,313,838 pounds sold in December 1923, at an average of $20.28. Winston-Salem led in December sales, selling 5,855,876 pounds, Wilson ranking a close second with 5,596,690 pounds. The highest prices were paid at Mebane, which averaged $31.54 per hundred, and Durham, with an average of $27.07. Previous to January 1st the auction warehouses sold 208,385,480 pounds of producers’ tobacco, or approximately 75 per cent of the estimated crop, compared with 64 per cent of the 1923 crop that was sold previous to January 1, 1924. A number of the North Carolina ware houses have closed for the season, and nearly all of the crop is out of the growers’ hands, most of the un sold portion of the crop having been delivered to the Tobacco Growers Association. AGRICULTURAL NOTES— The weather during December and early January was unfavorable for farm work, and farmers did little except the chores. The rains and snow were beneficial to grain crops, however, and farmers in the northern part of the District filled ice houses. While the weather was un favorable for marketing tobacco, it was very favorable for ordering it, and probably the balance of the tobacco crop will be marketed quickly when the weather permits. Roads are badly washed and are deep in mud in many sections of the District, which of course handicaps the farmers in their marketing operations. In order that our readers may have comparative figures in convenient form for the states comprising the Fifth Federal Reserve District, we are including a table^herewith showing the yields of the principal crops in the several states, reports, and represent the latest estimates that are available, nearly all of them beagricultural departm ing final estimates. Crops Corn (bus.) Cotton (bales) Tobacco (lbs.) I. Potatoes (bus.) S. Potatoes (bus.) Oats (bus.) W heat (bus.) Hay (tons) Peanuts (lbs.) Apples (bus.) W . V irgin ia Y rs . M aryland 1924 1923 1924 1923 1924 1923 1924 1923 1924 1923 1924 1923 1924 1923 1924 1923 1924 1923 1924 18 ,538,000 25 ,231,000 15 ,260,000 20 , 128,000 21 ,420,000 21 ,384,000 3 ,818,000 3 ,920,000 1 , 170,000 1 ,170,000 2 ,074,000 1 ,758,000 8 ,532,000 11 ,520,000 740,000 405,000 7 ,200,000 7 ,740,000 4 ,944,000 5 ,880,000 360,000 390,000 4 ,704,000 4 ,704,000 2 ,574,000 2 ,964,000 1 ,146,000 915,000 ’ i,*749',006 2 ,300,000 *7,410,660 1923 8 ,320,000 5 V irgin ia N. C arolin a S. C arolina 3 5 ,679,000 53 ,563,000 30,000 50,000 139 ,100,000 150 ,960,000 19 ,200,000 14 ,136,000 5 ,175,000 5 ,280,000 4 ,394,000 3 ,586,000 9 ,628,000 11 ,145,000 1 ,370,000 1 ,019,000 74 ,100,000 122 ,760,000 15 , 184,000 10 ,000,000 4 4 ,514,000 56 ,868,000 765,000 1 ,020,000 278 ,320,000 386 ,400,000 4 ,500,000 3 ,956,000 10 ,500,000 10 ,500,000 4 ,644,000 5 ,082,000 5 , 544,000 6 ,038,000 829,000 1 ,041,000 152 ,945,000 162 ,800,000 6 ,450,000 2 ,700,000 21 ,862,000 32 ,670,000 750,000 770,000 41 ,360,000 74 ,460,000 3 ,8 8 5 ,0 0 0 3 ,296,000 6 ,230,000 9 ,118,000 7 ,704,000 10 ,728,000 1 ,548,000 1 ,925,000 178,000 353,000 22 ,400,000 30 ,400,000 BUILDING OPERATIONS FOR THE MONTHS OF DECEMBER, 1924 AND 1923. Permits Issued New Construction CITIES 1924 z 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 MARYLAND Baltimore............... Cumberland.......... Frederick............... Hagerstown* VIRGINIA Lynchburg............. Norfolk.................. Petersburg........... Richmond.............. Roanoke................. WEST VIRGINIA Bluefield................. Charleston............. Clarksburg............. Huntington........... Parkersburg.......... NORTH CAROLINA Asheville............... Charlotte................ Durham.................. Greensboro ........... High P oin t........... Raleigh................... Salisbury............... Wilmington........... Winston-Salem SOUTHCAROLINA Charleston............. Columbia............... Greenville.............. Spartanburg......... DIST. OF COLUMBIA Washington........... 570 17 8 1924 1923 308 32 7 *15 11 103 0 121 72 17 25 18 0 12 116 62 63 5 58 19 19 25 7 7 2 12 8 79 13 15 4 26 40 18 36 35 42 22 48 3 5 17 41 1923 593 $ 4,623,360 $ 2,971,920 78,280 31,391 6 11,640 10,600 0 *20,080 934 3 *5 14 67 1924 1923 100 10 6 8 Increase or Per Cent of Decrease Increase Total or Valuation Decrease Alterations Repairs New 17 38 3 62 25 0 27 3 16 10 2 0 *988 $ 657,240 $ 1,562,520 43.1% 9,289 — 55,548 — 63.4 0 1,040 9.8 1,305,627 1,125,275 22,525 118,017 5,750 1,015,335 119,635 22,525 60,446 1,225 69,382 10,533 8,130 34,375 8,311 122,544 18,851 23,695 43.6 531,721 348.9 — 12,836 — 91.3 237,130 20.8 997,322 720.2 23,925 49,250 23,660 264,855 15,650 156,355 133,438 11,950 213,715 36,500 5,125 4,200 2,285 12,330 840 0 38,775 725 81,065 1,965 — 127,305 — 81.4 — 118,763 — 69.0 13,270 104.7 — 17,595 — 6.0 — 21,975 — 57.1 21,207 3,100 7,575 12,655 3,400 2,995 300 8,400 20,106 41,811 31,825 623,667 0 2 2 14 17 39 5 48 6 220,000 56 166,840 6 7 45 8 33 51,207 24,775 36,500 45,611 2,600 20,517 1,960 2,075 8,440 4,875 10,410 428,525 25 45 7 $ 568,320 630 2 200,009 240,535 59,100 505,084 79,860 273,366 12,115 346,000 120,050 68 8 1923 397,783 398,812 15,600 130,850 82,615 175,501 7,075 27 29 34 3 4 19 9 1924 5 14 13 14 12 22 0 12 15 16 13,900 49,470 48,810 198,515 356 177 208 296 3,091,559 2,842,555 444,466 Totals......... 1,726 1,262 1,553 1,312 $13,127,455 $9,730,787 $1,307,122 15 ♦Hagerstown figures not included in totals 0 2,000 63,350 16,051 — — 6,020 450 775 7,000 — — — 10,688 — 177,170 159,377 99,275 377,630 135 95,320 5,515 124,600 56,208 73.3 65.7 — 81.1 — 72.5 0.2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 — 34.8 — 42.8 — 35.3 43.0 20 21 22 36,782 — 69.0 36,772 110.7 7,435 18.0 144,454 257.9 24 25 26 27 264,945 28 $1,583,740 $ 3,120,050 8.1 23 27.69b —Denotes decrease NOTE- The figures in the above table reflect the amount of work provided for in the corporation limits of the several cities, but take no account of suburban developments. Permits for new construction issued in twenty-seven reporting cities of the Fifth District during De cember totaled 1,726 with estimated valuation of $13,078,645, compared with 2,142 permits and valuation of $11,236,822 in November 1924, and 1,262 permits and valuation of $9,730,787 in December 1923. A l teration and repair permits issued in December totaled 1,553, valued at $1,307,122, compared with 2,168 permits and valuation of $1,381,873 in November 1924, and 1,312 permits and valuation of $1,583,740 in December 1923. In total valuation for both new work and alterations or repairs, December 1924 showed $14434,577, compared with $12,618,695 in November 1924, and $11,314,527 in December 1923. Although 1923 was a record breaking year in construction work, both the number and estimated valu ation of permits issued for new work in 1924 exceeded the figures of the previous year. The total number of permits issued in the reporting cities during 1924 was 25,191, with estimated valuation amounting to $162,566,001, compared with 23,940 permits and a valuation of $149,399,911 issued during 1923. The vol ume of construction work was quite generally scattered throughout the District, only one city, Charleston, S. C., falling materially behind its 1923 figures. Among the cities reporting increased operations in 1924, Asheville and Spartanburg stand out in percentage gain, and an enormous amount of work was under taken in Baltimore, Richmond and Washington. 6 FIGURES ON RETAIL TRADE As Indicated by Reports from Twenty-nine Department Stores in the Fifth Reserve District for the last Six Months of 1924 Baltimore .......................................................................................... Richmond ......................................................................................... W ashington....................................................................................... Other Cities ..................................... -.............................................. D istrict Average .............................................................. P e rce n ta g e of in crease (o r d e cre a se ) in net sales fro] during the sam e period in 1 9 2 3 : Baltimore .......................................................................................... Richmond ......................................................................................... W ashington....................................................................................... Other Cities ..................................................................................... District Average .............................................................. August — 7.0 — 1.1 — 4.3 — 5.0 — 5.3 Ju ly 4.2 — 5.9 6.6 0.3 3.3 Ju ly Sept. 6.1 16.2 15.9 2.8 9.8 Oct. — 1.9 1.7 — 4.6 — 4.9 — 2.8 1st through m onth nam ed, 1924, Nov. 6.6 2.7 2.5 — 4.8 1.4 14.7 7.9 1.2 7.2 over n et sales Ju ly 4.2 — 5.9 August — 1.5 — 3.7 Sept. 1.4 3.1 Oct. 0.3 2.7 Nov. 0.7 2.7 6.6 1.2 6.6 2.6 0.3 3.3 — 2.4 — 0.9 — 0.5 3.0 — 1.9 2.6 2.6 1.1 1.0 Dec. 1.8 — Dec. 2.2 5.9 4.1 — 1.6 2.8 P e rce n ta g e of in crease (o r d e cre a se ) in n et sales (i ring the m onth nam ed, 1 9 2 4 , over a v erag e sales during 922: the corresponding months of 1 9 2 0 , 19 2 1 and Baltimore .......................................................................................... Richmond .............................................. .......................................... W ash in gton ...................................................................................... Other Cities ............................................ ........................................ D istrict Average .................. ........................................... Ju ly — 0.9 33.3 2.9 — 5.7 3.6 August — 13.9 22.2 — 4.5 — 4.0 — 5.4 Sept. 0.3 32.1 18.0 2.9 9.7 Oct. 6.7 29.4 3.7 — 7.8 6.3 Nov. 2.1 20.5 4.8 — 7.6 3.6 Dec. 7.8 35.0 15.1 1.2 12.5 of m onth nam ed, 1 9 2 4 , over stocks on sam e d ate in 1 9 2 3 : Baltimore ................... ....... Richmond .......................... W ash in gton ........................ Other Cities ...................... D istrict Average July — 6.4 8.6 — 2.7 — 2.0 2.8 August — 6.9 7.1 — 6.5 — 6.3 — 5.6 Sept. — 5.5 5.8 — 4.1 — 5.0 — 4.1 Oct. — 2.4 9.0 — 5.4 — 9.9 — 3.4 Nov. — 2.1 Dec. 1.8 6.2 11.0 — 2.3 — 13.6 — 3.0 — 4.0 — 9.7 — 0.8 P e rce n ta g e of in crease (o r d e cre a se ) in stocks a t close of m onth nam ed, 1 9 2 4 , ov er stocks a t close of preceding m onth the sam e y e a r: Baltimore ............................................................... .......................... Richmond ............................................................ ... .......................... W ashington............................................................ .......................... Other Cities ..................................................................................... District Average .................................... .......................... Ju ly — 8.0 — 4.7 — 7.1 — 4.7 — 7.0 P e rcen tag e of av erag e stocks a t close of each month since Ju ly sam e period: Baltimore ............................................................... .......................... Richmond .............................................................. .......................... W ashington............................................................ .......................... Other Cities ..........................................................._____________ D istrict Average ................................... .......................... July 470.4 416.5 461.3 586.0 475.1 August 3.3 2.2 — 0.9 — 1.1 1.2 August 501.2 446.3 481.7 589.2 499.6 August 6.8 8.2 8.1 6.8 6.5 12.1 8.9 5.4 9.0 Nov. — 0.5 3.7 3.9 — 1.9 1.1 Dec. — 18.3 — 15.5 — 20.4 — 20.4 — 19.0 Sept. 475.5 425.3 452.0 575.0 474.0 Oct. 432.4 404.2 420.9 548.3 438.5 Nov. 404.4 402.1 406.5 533.5 418.5 Dec. 347.9 340.6 334.5 450.2 353.3 1 9 2 4 , to to tal p urchases of m erchandise Ju ly 5.5 Oct. 9.6 1st, to av e ra g e m onthly net sales during the P e rce n ta g e of outstanding o rd ers a t th e end of each month nam ed, during 1 9 2 3 : Baltimore ............................................................... .......................... Richmond .............................................................. .......................... W ashington............................................................ .......................... Other Cities ..................................................................................... District Average ................................... . Sept. 15.6 9.6 14.8 10.9 14.2 9.0 6.4 7.9 7.6 Sept. 8.3 10.4 7.1 7.4 8.0 Oct. 5.5 8.4 4.8 5.8 5.6 Nov. 4.6 4.8 4.2 5.3 4.5 Dec. 3.9 1.1 6.2 3.3 4.6 — Denotes Decreased Percentage. Retail trade in the Fifth District during December was exceptionally good in comparison with earlier months of the year. Sales in twenty-nine of the District's leading department stores were 7.2% greater than sales in December 1923, and 12.5% greater than average December sales during 1920, 1921 and 1922. This increase in business was done on smaller stocks, the selling value of goods on the shelves being 3.0% smaller on December 1st and 0.8% smaller on December 31st than on the corresponding dates in 1923. Stocks at the end of December were 19.0% smaller than a month earlier, November 30, 1924. The per centage of average stock on hand at the end of each month since July 1st to average monthly sales during the same period, six months, was 353-3%, in comparison with a corresponding average of 373-7% in the same stores during the second half of 1923, indicating a more rapid turnover during the fall of 1924 than during the preceding year. Outstanding orders for merchandise at the end of December amounted to 4.6% of total 1923 purchases. WHOLESALE TRADE December 1924. Dry Goods Groceries Shoes Hardw are Drugs Furniture 13 Number of reporting firms in each line............. 41 15 13 17 Percentage increase (or decrease) in net sales during Dec. 1924, compared with sales during Nov. 1924......................................... — 1.7 — 27.3 — 19.2 — 4.1 — 18.7 — 2.3 Percentage increase (or decrease) in net sales during Dec. 1924, compared with sales in Dec. 1923................................................... 4.9 4.1 — 4.6 3.4 18.1 14.5 Percentage increase (or decrease) in cumu lative sales from July 1st through Dec. 1924, compared with total sales during the last six months of 1923................................... 0.3 — 13.6 — 11.8 — 8.2 8.9 2.8 3 .4 (1 1 ) — 7 .2 (8 ) - 1 .0 (5 ) 3 .2 (4 ) 3 .9 (2 ) 9 .8 (9 ) — 1 3 .4 (7 ) -2 1 .1 ( 4 ) 4 .3 (3 ) — 2 2 .7 (2 ) Percentage increase (or decrease) in stocks on hand Dec. 31, 1924, compared with Nov. 30, 1924............................................................ . Percentage increase (or decrease) in stocks on hand Dec. 31, 1924, compared with Dec. 31, 1923............................................................ - 6 — Denotes decreased percentage. N O T E : The number of firms reporting stock figures for the dates compared is shown in parenthesis immedi ately after the percentage figure. All lines of wholesale trade reported upon showed lower sales in December 1924 than in November, but this is a seasonal development. Retailers usually put in their Christmas orders prior to December, and order as little as possible from then until after January inventories have been taken. In comparison with December 1923, the volume of business done in December 1924 was greater in groceries, dry goods, hardware, furniture and drugs, the only line reporting a decrease being shoes. In December 1923 retail trade was comparatively dull, and retailers did not have to place many last minute or fill-in orders, but in December 1924 retail trade probably exceeded expectations, and a considerably larger volume of fill-in orders had to be placed with jobbers and wholesalers. Collections improved slightly in December in comparison with November, but continued distinctly slower than in 1923. For comparison, we show below the classifications by lines of collections made by the same firms in December 1924 and December 1923, to which we have added the totals for all months since and including July. Lines Groceries__ Dry Goods ....... Shoes ................ Hardware ......... Furniture ......... ......... .... Drugs ............... December Totals ___ November Totals .. October Totals . . ...... September Totals ...... August Totals.......... July Totals .............. Good Fair 1924-1923 S IS 1 4 0 1 1 5 1 2 1924-1923 21 25 8 8 4 9 3 9 10 4 4 8 12 31 37 38 24 64 63 23 17 62 16 14 14 16 16 9 9 61 59 59 59 54 5i 69 65 67 December Collections Reported As Slow Poor Total 1924-1923 5 1 5 1 3 3 3 1 1 1 1 0 18 22 21 27 24 22 (Compiled January 20,1925) 8 7 9 10 5 14 14 1924-1923 2 0 0 0 0 0 1 0 0 0 0 0 3 0 3 1 1 1 0 1 0 3 1 0 1924-1923 37 37 14 14 12 12 15 is 6 13 6 13 97 IOI 99 IOI 97 IOI 99 IOI 103 98 103 98 BUSINESS CONDITION IN THE UNITED STATES. Compiled by the Federal Reserve Board Production and employment in December continued the increase which began in the autumn and whole sale prices advanced further to the highest level for the year. Railroad shipments of goods continued in large volume and trade, both at wholesale and retail, was larger than a year ago. PRODUCTION. The index of production in basic industries advanced about 10 per cent in December to a point 25 per cent higher than last summer but was still below the level of the opening months of 1924. Practically all of the 22 industries included in the index shared in the advance and the increases were par ticularly large in iron and steel, cotton manufacturing, coal mining, and meat packing. Among the industries not represented in the index the output of automobiles declined in December and was the smallest for any month in more than two years. Increased industrial activity was accompanied by an advance of about 2 per cent in factory employment, with larger increases in the metal and textile industries, and by a growth of nearly 5 per cent in total factory payrolls. Volume of building, as measured by contracts awarded, was less in December than in November, but continued unusually large for the season of the year. TRADE. Distribution of goods was greater in December than in the same month of 1923, as indi cated by larger railroad shipments and an increase in the volume of wholesale and retail trade. Christmas trade at department stores was greater thzn in the previous year, and sales by mail order houses and chain stores were the largest on record. Wholesale trade was seasonally less than in November but in practically all lines was larger than a year ago. Marketing of agricultural products was greater than for the corres ponding month of any recent year. PRICES. A further advance of more than 2 per cent in the Bureau of Labor Statistics index of wholesale prices carried the average in December 8 per cent above the low point of June and to the highest level since April 1923. Prices of all groups of commodities were higher, the principal increases being in farm products and foods. In the first half of January prices of grains, wool, coal and metals increased further, while sugar, dairy products, silk, coke and rubber declined. BANK CREDIT. A t the Federal Reserve banks the rapid return flow of currency after the holiday trade resulted, during the four weeks ending January 21st, in a reduction of earning assets about equal to that for the same period a year earlier. The net out-flow of currency from the Reserve banks during the month preceding Christmas amounted to more than $200,000,000, and the return flow after the Christ mas peak, reflected both in the increase in reserves and in the decline of Federal Reserve note circulation, was in excess of $300,000,000. Fluctuations in the earning assets of the Reserve banks during the past two months have reflected chiefly these seasonal changes in the demand for currency. The decline in discounts brought their total on January 21st to a smaller volume than at any time in 1924, and acceptances also showed a seasonal decrease. Holdings of United States securities, which have declined for more than two months, were about $175,000,000 below the level of last autumn and in about the same amount as at the middle of 1924. Net exports of gold, which gave rise to a demand for Reserve bank credit, amounted to $30,000,000 in December and were in larger volume during the first three weeks in January. The growth of demand deposits at member banks in leading cities during the three weeks ending in the middle of January, which has been greater than the increase in their total loans and investments, has reflected the return of currency from circulation. In the same period there was some increase in com mercial loans and a continued growth in loans secured by stocks and bonds. Holdings of investment se curities have decreased somewhat since the middle of November, particularly at the banks in New York city. Firmer conditions in the money market in December and the first few days in January were followed later in the month by declines in rates on commercial paper to per cent. (See page 10) 9 10
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