Full text of Economic Quarterly (Federal Reserve Bank of Richmond) : January 1929

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MONTHLY

REVIEW

BUSINESS AND AGRICULTURAL CONDITIONS

__________________W ILLIAM W. HOXTON, CHAIRMAN AND FEDERAL RESERVE AGENT_________________

RICHMOND, V IRG IN IA

JA N U A R Y

ST A T IST IC A L SU M M ARY
Debits to Individual Accounts (24 C ities)________________
Number of Commercial Failures, 5th D istrict______________
Liabilities Involved in Failures, 5th D istrict______________
Cotton Consumption, 5th District Mills (Bales)____________
Cotton Grown in Fifth District (Bales)___________________
Tobacco Grown in Fifth District (Pounds)_______________ _
Building Permits for New Work (30 Cities)________________
Value of Permits for New Work (30 Cities)_______________
Value of Contracts Awarded, 5th D istrict__________________
Total Sales, 30 Department Stores, 5th District____________
Total Sales, 79 Wholesalers in 6 Lines____________________
Bituminous Coal Production, U. S. (Tons)_________________
The volume of business transacted in the
Fifth Federal reserve district in December and
early January was at seasonal levels, and showed
the usual advance over November business. The
weather was favorable for the Christmas trade,
and the stores appear to have disposed of most
of their holiday stock. Retail trade as reflected
in department store sales last month was a frac
tion of 1 per cent below the volume of business
done in December a year earlier, which had one
more business day than December 1928. Debits
to individual, firm and corporation accounts in
twenty-four leading cities during the four weeks
ended January 9, 1929, set a record for four
weeks, not only exceeding debits for the cor
responding periods ended December 12, 1928,
and January 11, 1928, but surpassing the previous
record pf the four weeks ended January 12, 1927.
Loans and discounts of sixty-three regularly re
porting member banks in the larger cities of the
Fifth district decreased between December 12,
1928, and January 16, 1929, and these banks also
reduced their rediscounts at the reserve bank.
On the other hand, country banks more directly
dependent on agriculture have not been able to
liquidate their indebtedness at the reserve bank
as promptly as the city banks, and last month
additional accommodation was extended to the
country banks in sufficient amount to increase
slightly the Federal Reserve Bank of Richmond's
holdings of member bank paper. On January
15, 1929, rediscounts held by the Richmond re
serve bank totaled approximately 50 per cent
more than rediscounts held on January 15, 1928,
and the circulation of Federal reserve notes was
also higher on the 1929 date. Deposits in mem
ber banks at the clbse of 1928 were materially
lower than a year earlier, time deposits as well
as demand deposits declining last year. Busi

ness failures in December in the United States

3 1 ,1 9 2 9

1928
$16,324,326,000
1,518
$
34,345,527
2,839,836
1,608,000
693,828,000
I 7>577
$ 142,554,376
$ 451,030,185
$ 104,816,085
$
75,541,288
492,755,000

1927
$16,392,202,000
1,611
$
41,835,046
3,128,933
1,622,000
719,678,000
x9>363
$ 114,279,872
$ 409,009,712
$ 104,441,338
$
79,580,956
517,763,000

and in the Fifth district were fewer and liabili
ties were lower than in December 1927. The
value of building permits issued in December for
new work was more than double the amount re
ported for new work in December 1927. Coal
production in December was below production
in November 1928, but exceeded that of Decem
ber 1927. Textile mills in the Fifth district used
less cotton last month than in either November
1928 or December 1927. Cotton exports in De
cember 1928 were about 30 per cent larger than
exports in December 1927, and spot cotton prices
showed an upward tendency after the New Year.
Tobacco marketing continued in December, and
prices for fire-cured and burley tobacco were
higher than in December 1927, but flue-cured to
bacco, which makes up the bulk of the crop in
Virginia and all of the crop in the Carolinas.
brought lower prices than in either November
1928 or December 1927.
An examination of the statistics at the top of
this page will show that the volume of business
transacted in the Fifth reserve district during
1928 was moderately below the level of 1927.
The total value of agricultural products raised
in the Fifth district in 1928 was considerably
lower than the value of the 1927 crops, chiefly
due to lower cotton, tobacco and potato prices
in 1928, and the farmers’ purchasing power in
1929 apparently will not equal their purchasing
power last year. However, a more extensive
building program is now under way than was
the case a year ago, and if construction work
holds up through the year the purchasing power
of workmen in building trades may make up for
the impaired purchasing power on the farms.
Some of the banks in the district are less favor• ably situated than in January last year, but the
unsatisfactory conditions are confined to a rela
tively small part of the district.

CONDITION OF SIXTY-THREE REPORTING MEMBER BANKS IN SELECTED CITIES
ITEMS

Jan. 16, 1929

Dec. 12, 1928

Jan. 18, 1928

Loans on Securities.......................................
All Other Loans and Discounts....................
Total Loans and Discounts....................
Total Investments in Bonds and Securities..
Reserve Balance with Federal Reserve Bank
Cash in Vaults
..........................................
Demand Denosits
..................................
Time Deposits
....................................
Borrowed from Federal Reserve Bank ......

$199,376,000
323.924.000
523.300.000
159.304.000
41.853.000
11.840.000
368.896.000
240.774 000
20.172.000

$192,609,000
335.035.000
527.644 000
154, 743,000
42,054.000
13.925 000
377,563 000
239.366.000

$166,707,000
357.201.000
523.908.000
175 610,000
45,106,000
13,294 000
387.359.000
246.039.000

2 4 fin? non

i s sis.onn

The accompanying table shows totals for the principal items of condition reported by sixty-three
member banks of the Fifth Federal reserve district on three dates, January 16, 1929, December 12,
1928, and January 18, 1928. These data afford an opportunity for comparing the latest available
figures with those of the preceding month and the preceding year. It should be borne in mind, how
ever, that the figures shown are not necessarily the highest or lowest figures that occurred during
the periods compared, but reflect conditions on the report dates only.
Between December 12, 1928, and January 16, 1929, “ Loans on Securities” increased by $6,767,000,
but “ All Other Loans” , which are largely commercial or agricultural, declined by $8,111,000, bringing
about a net decrease in outstanding loans to customers of $1,344,000 during the month. The report
ing banks increased their investments in bonds and other securties by $4,561,000 between December
12th and January 16th, and reduced their borrowing at the Federal reserve bank by $4,429,000. Time
deposits rose $1,408,000 during the month under review, but demand deposits declined $8,667,000, a net
decrease in total deposits of $7,259,000. Cash in vaults declined $2,085,000 between December 12th
and January 16th, the banks needing less currency after the holiday shopping season had passed. The
reserve deposits of the reporting sixty-three banks decreased $201,000 during the past month, a daily
fluctuation only.
The figures reported for January 16, 1929, compare closely in most items with those reported for
January 18, 1928. An examination of loan and discount figures shows an increase of $32,669,000 dur
ing the year in loans on securities, but loans otherwise secured and unsecured decreased $29,277,000
during the same time, a net increase in all loans and discounts amounting to $3,392,000. Total in
vestments of the reporting member banks in bonds and securities showed a decrease of $16,306,000,
probably due in part to higher returns on money loaned on securities than on bond and stock invest
ments. Deposits declined $23,728,000 between January 18, 1927, and January 16, 1929, demand de
posits decreasing by $18,463,000, and time deposits by $5,265,000, last year showing the first decline
in time deposits in several years. As a result of lower deposits, the sixty-three reporting banks re
duced their reserves at the Federal reserve bank by $3,253,000 between January 18th last year and
January 16th this year. Cash in vaults dropped $1,454,000 during the year under review. Aggregate
borrowing by the reporting banks at the Federal Reserve Bank of Richmond was $1,358,000 greater
in amount on January 16, 1929, than on January 18, 1928.
RESERVE BANK OPERATIONS—Member banks slightly increased their indebtedness at the
Federal Reserve Bank of Richmond during the past month, the volume of rediscounts held by the
Richmond bank rising from $39,886,000 on December 15, 1928, to $40,530,000 on January 15, 1929.
On the other hand, a reduction in bankers acceptances purchased from member banks and in the
open market lowered the total earning assets of the Richmond reserve bank from $69,577,000 on
December 15th to $65,898,000 on January 15th. The volume of Federal reserve notes in actual cir
culation followed the seasonal trend last month, rising from $86,849,000 on December 15th to approxi
mately $88,000,000 a few days before Christmas, and then declining after the holidays to $80,801,000
on January 15th. The decline in note circulation between Christmas and the middle of January was
less this year than in most years, and the actual circulation is now approximately $10,000,000 greater
than at the same time last year. Member bank reserve deposits dropped from $70,675,000 at the mid
dle of December to $68,294,000 at the middle of January. The several changes enumerated lowered
the cash reserves of the Federal Reserve Bank of Richmond from $96,275,000 on December 15th to
$86,934,000 on January 15th, and reduced the ratio of cash reserves to note and deposit liabilities
combined from 60.88 per cent to 57.20 per cent between the same dates.
On January 15, 1928, member banks were borrowing $26,405,000 from the Federal Reserve Bank
of Richmond, compared with $40,530,000 on the corresponding date this year, the increase being in re
discounts for country member banks. The circulation of Federal reserve notes, which stood at
$72,412,000 a year ago, was $80,801,000 at the middle of January this year. In spite of the increase
in rediscounts for member banks this year, reduced holdings of Government securities and bankers
acceptances purchased in the open market lowered the total earning assets of the Federal Reserve
Bank of Richmond from $80,228,000 on January 15, 1928, to $65,898,000 on January 15, 1929. Member
banks reduced their reserve deposits at the reserve bank from $73,176,000 at the middle of January

last year to $68,294,000 on January 15th this year, accounted for in part by decreased deposits in
member banks. The cash reserves of the Federal Reserve Bank of Richmond were $70,523,000 on
January 15, 1928, but on January 15th this year cash reserves totaled $86,934,000. The ratio of cash
reserves to note and deposit liabilities likewise rose during the year from 47.36 per cent on January
15, 1928, to 57.20 per cent on January 15, 1929.
DEBITS TO INDIVIDUAL ACCOUNTS
CITIES
Asheville, N. C...............
Baltimore, Md.................
Charleston, S. C..............
Charleston, W. Va..........
Charlotte, N. C................
Columbia, S. C...............
Cumberland, Md..............
Danville, Va.....................
Durham, N. C................
Greensboro, N. C............
Greenville, S. C..............
Hagerstown, Md.............
Huntington, W. Va........
Lynchburg, Va................
Newport News, Va..........
Norfolk, Va.....................
Portsmouth, Va...............
Raleigh, N. C.................
Richmond, Va...................
Roanoke, Va.....................
Spartanburg, S. C..........
Washington, D. C..........
Wilmington, N. C..........
Winston-Salem, N. C....
District Total...............

TOIAL DEBITS DURING THE FOUR WEEKS ENDED
Jan. 11, 1928
Jan. 9, 1929
Dec. 12 , 1928
$

31,554,000
410,430,000
27,360,000
45,123,000
57,931,000
27,247,000
8,960,000
11,692,000
31,122,000
26,419,000
22,681,000
10,293,000
22,799,000
21.456,000
10,550,000
74,171,000
6,291,000
27,446.000
149,255,000
30,871.000
15,941 000
258.416.000
18.655.000
46.440 000

$1,393,103,000

34,300,000
386,768,000
24,028,000
40,816,000
55,427,000
22,861,000
9,709,000
14,776,000
41,020,000
23,550,000
21,769,000
10,284,000
22581,000
18,511,000
11,455,000
65.342.000
6,715,000
23,202,000
148 530.000
28 800,000
15,976,000
264,388 000
17 873 000
39,921 000

$1,348,602,000

ANNUAL TOTALS
1928
1927

28.864 000
140 381.000
30 373.000
15 613,000
236.381.000
19.397.000
45.317.000

$ 376,123,000
4,945,085,000
315,921,000
477,480,000
690,297,000
292,398,000
116,643,000
126,441,000
373,997,000
301,850,000
282,995,000
128,120,000
272,981,000
243,080,000
121.517,000
789,082,000
70,444.000
297,228,000
1,721,458.000
352017.000
174,634,000
3,122.636.000
216 895 000
515,004 000

$1,359,025,000

$16,324,326,000

28,658,000
421,838,000
24,339,000
44,645,000
52,717,000
23,920,000
8 367,000
12.872,000
33,055 000
27,558,000
26,930,000
10,729,000
24,427,000
22.783,000
10,535,000
*69,326,000

410,047,000
5,051,802,000
333,174,000
472,139,000
658,854 000
280,914,000
113,594,000
138,970,000
390,348,000
308,372,000
303,219,000
131.092,000
300,723,000
240,270,000
122.329,000
*898,253,000
296 740 000
1,711 049,000
351,946.000
176,659,000
2,939.412 000
235 614 000
526 682,000

$16,392,202,000

* These Norfolk figures include Portsmouth debits a~so.

The accompanying table shows debits to individual, firm and corporation accounts in the clearing
house banks of twenty-four trade centers in the Fifth reserve district, three equal periods of four
weeks being given to allow for comparison of the latest available figures with those of the preceding
like period and the corresponding period last year. In addition, total debits are shown by cities and
the district for the calendar years 1928 and 1927.
During the four weeks ended January 9, 1929, the twenty-four cities reported debits aggre
gating $1,393,103,000, an increase of $44,501,000, or 3.3 per cent, over the total of $1,348,602,000 re
ported for the preceding four weeks, ended December 12, 1928. The dull business days between
Christmas and New Y ear’s tend to lower the debits total for the later four weeks, but very large
annual payments around January 1st more than balanced the small payments of the last week in
December. Sixteen of the twenty-four cities reported higher figures for the period ended January
9th.
In comparison with debits aggregating $1,359,025,000 during the four weeks ended January 11,
1928, the total of $1,393,103,000 reported for the corresponding four weeks this year shows an in
crease of $34,078,000, or 2.5 per cent. Exactly half of the reporting cities registered gains in debits
during the later period, but the gains averaged larger than the declines reported by the other half of
the twenty-four cities. Richmond and Washington reported larger figures for the 1929 period, but
Baltimore showed lower figures this year.
Aggregate debits in the twenty-four reporting cities for the year 1928 amounting to $16,324,326.000 were $67,876,000, or 4/ioths of I per cent, less than debits for the year 1927, when $16,392,202.000 were reported. During the first six months of 1928 debits ran ahead of debits during the
first six months of 1927, but between Ju ly 1st and December 31, 1928, the reporting cities fell behind
the figures for the last half of 1927 sufficiently to more than wipe out the larger figures of the first
six months of the year. Only nine cities reported higher totals for 1928 than for 1927, among them
being Richmond and Washington, while fifteen cities showed lower figures than for the preceding
year.
SAVINGS DEPOSITS—At the end of December 1928, twelve mutual savings banks in Baltimore
had aggregate deposits amounting to $187,161,472, the highest figure on record, compared with de
posits in the same banks totaling $186,045,529 on November 30, 1928, and $176,866,209 on December
31 , 1927. On the other hand, time deposits in sixty-three regularly reporting member banks, located

in thirteen leading cities of the Fifth reserve district, totaled only $240,774,000 on January 16th
this year, compared with $246,039,000 on January 18, 1928.
BUSINESS FAILURES—Business failures in the United States numbered 1,943 in December
1928, with liabilities totaling $40,774,160, compared with 2,162 failures and liabilities of $51,062,253
reported in December 1927. The seasonal rise in defaults in December over November was smaller
this year than usual. Failures during the entire year 1928 numbered 23,842, a record total and 3 per
cent above 23,146 failures in 1927. Liabilities in 1928, on the other hand, totaled only $489,559,624, a
6 per cent reduction from approximately $520,000,000 involved in 1927 insolvencies. The 1928 total
of liabilities was exceeded in six of the preceding seven years.
In the Fifth reserve district, December 1928 witnessed 113 bankruptcies, with liabilities aggre
gating $1,860,640, compared with 146 failures and liabilities totaling $zj.,424,24i in December 1927.
Failures during the year 1928 totaled 1,518 in the Fifth district, with liabilities amounting to $34,345,527, compared with 1,611 insolvencies and liabilities totaling $41,835,046 in 1927. The number
of insolvencies in the Fifth district in 1928 was exceeded only by those of 1927 and 1922, but last
year’s liabilities were lower than those of all years back to 1920 with the single exception of 1926.
LABOR— In contrast with conditions of a year ago, when a period of unemployment for many
workers appeared to have begun, labor is now fairly well employed for this season of the year. The
improvement over last January and the summer months of 1928 is due chiefly to the large building
program in the Fifth reserve district, although nearly all other employers of labor are using normal
quotas of workers. A few large plants in the district are shut down, but all of them have been
closed for some time and their workmen have been for the most part absorbed by other industries.
Prospects appear good for employment during the next few months, the outlook being considerably
better than it was a year ago.
BUILDING OPERATIONS FOR THE MONTHS OF DECEMBER 1928 AND 1927.

CITIES

Permits Issued
New
Repairs

1928 1927

1 Baltimore, Md.....
2 Cumberland, Md...

3 Frederick, Md...
4 Hagerstown, Md...
5 Danville, Va........
6 Lynchburg, Va....
7 Norfolk, Va.........
8 Petersburg, Va....
q
17 *Pnrt<;mniith Va
10 Richmond, Va.....
11 Roanoke, Va........
12 Bluefield, W. Va...
13 Charleston, W. Va.
14 Clarksburg, W. Va.
15 Huntington, W. Va.
16 Parkersburg, W. Va....
17 Asheville, N. C......
18 Charlotte, N. C....
19 Durham, N. C.
20 Greensboro, N. C.
21 High Point, N. C...
22 Raleigh, N. C.......
23 Rocky Mount, N.C.
24 Salisbury, N. C....
25 Wilmington, N. C...
26 Winston-Salem, N. C._
27 Charleston, S. C...
28 Columbia, S. C.....
29 Greenville, S. C. ...
30 Spartanburg, S. C.
31 Washington, D. C.
Totals.............

238
15
9

1928

239
7
9
14
7

582
3
4
5
7

2
*12

57
29

48
19
18

11
10

20
20

30
19

4
5
32
13
28
13

140

61
46
5
38

8
21

50
42
31
23
19

11
8
8

8
21

4
16
218

*7
31

3
3

12
0

5
29
23
3
19

1
10
2
1

7
49

46
15

386

1927

New Construction

1928

1927

443 $ 1,304,960 $ 814,100
2
172,700
15,315
0
111,000
304,400
23,955
1
28,380
32,370
5
4,295
56,490
17
10,240
86
51,835
131.845
25,670
2
18,250
*16.610
65
246,812
228,233
122,939
13
121,737
23,160
1
15,445
76,440
9
121,400
28,625
4
11,175
19,050
2
37,500
46,950
5
59,350
266,745
26
50,940
297,380
394,805
30
252,961
4
150,755
122,650
34
71,420
127,655
5
35,775
330.250
52,105
6
18,515
3
4,945
31.060
12,600
3
10,350
6
17,750
258,955
58
213.390
15,190
13
28.880
184,800
123,150
63
8.400
34
107,500
45,150
3,450
7
1,769 345
265 7,575 450

917 1,069 1,357 1,212 $11,552,164 $ 5,294,778

Alterations

1928

1927

$ 689,080 $
2 060

11,100

26.075
1,600
7,016
56.635
2,500
* 2,825
96,159
9,055
800
36.050
12,800

4,300
20.650
38.975
155.830
15,405
375
13.000
600
1,500
9.100
20.603
26.765
17.595
6.325
3.896
212 180
$1,498,029

Increase or Per Cent
of
Decrease
of
Increase
0
Total
or
Z
Valuation Decrease

214,000 $
965,940
94.0%
800 — 156,125 - 90.0
0
204,500 184.2
250
30,250 125.0
603 — 27,078 — 82.1
5,521 — 44,755 — 72.2
129,413
7,232
4.0
11 1 —
5,031 — 19.5
277,175
2,380
300
33,975
890

2,100

4,800
11,595

21,110

5,650
46.900
3,400
3.350
9,315
225
9,100
18,952
7,065
22.040
9,305
1,175
238 035
$1,079,535 $

— 162,437
5,473
—
7,215
47,035
—
5,540
16,350
11,900
— 206,750 i
115,290
47,974
— 82,725
— 94,905
287,795
— 22,285
— 17,185
7.400
— 43,914
33,390
— 66,095
96,120
— 38,979
5,780,250
6,675,880

— 32.1
4.4
— 30.8
42.6
— 18.8
77.3
23.0
— 74.3
36.2
18.6
— 48.8
— 72.4
519.0
— 80.1
- 54.9
38.0
— 15.8
150.0
— 32.0
542.9
— 84.1
287.9

1
2

3
4
5

8
9
10
11
12

13
14
15
16
17
18
19

20
21
22

23
24
25
26
27
28
29
30
31

104.7%

— 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.

Following the seasonal trend, the volume of construction work provided for in building permits
issued in the Fifth reserve district cities in December fell below the volume of wTork covered by
November permits, but last month was far ahead of December 1927* Permits for new construction

issued in December 1928 numbered 917, with estimated valuation of $11,552,164, compared^ with
1,069 permits for new work issued in December 1927, at an estimated cost of $5,294,778. Repair and
alteration permits issued in December 1928 numbered 1,357, with a valuation of $1,498,029, com
pared with 1,212 permits and a valuation of $1,079,535 issued for similar work in December 1927.
Combined valuation figures for all classes of work totaled $13,050,193 last month, an increase of
$6,675,880, or 104.7 per cent, over the total valuation of $6,374,313 reported for December 1927. Only
half of the thirty reporting cities showed higher figures for December 1928 than for December 1927,
but the increases were somewhat higher than the decreases in most cases, and a $5,780,250 increase in
Washington carried the December 1928 valuation to a very high level for this season of the year.
Total building permit figures for the entire year 1928 show a decrease in the number of permits
issued for new work in comparison with 1927, but valuation figures showed a substantial increase
last year. The thirty cities issued 17,577 permits for new construction in 1928, a decline of 9.2 per
cent from 19,363 permits issued in 1927, but the 1928 valuation of $142,554,376 was 24.7 per cent
higher than the $114,279,872 valuation of 1927.
The F. W. Dodge Corporation reports contracts actually awarded in the Fifth reserve district
totaling $29,972,785 in December 1928, of which $8,996,460 was for residential construction. Contracts
awarded in December 1927 totaled $37,285,000. During the year 1928 contract awards in the Fifth
district totaled $451,030,185, an increase of 10.3 per cent over $409,009,712 in total awards during
1927.
COAL—Bituminous coal production in the United States in December 1928 totaled approximately
43.380.000 net tons, compared with 46,041,000 tons mined in November 1928 and 41,114,000 tons in
December 1927. On the basis of preliminary figures, Pennsylvania took the lead in the output of
bituminous coal last month, West Virginia dropping to second place. Total production of soft coal
in the entire country during 1928 amounted to approximately 492,755,000 net tons, a decrease of
25.008.000 tons, or 4.8 per cent, from 517,763,000 net tons minded in 1927. Production in 1928 was the
lowest for any year since 1924, but from the first of April to the end of 1928 production exceeded that
of the corresponding nine months in 1927.
TEXTILES —Fifth district mills consumed 226,764 bales of cotton in December 1928, of which
North Carolina mills used 118,743 bales, South Carolina mills 100,748 bales, and Virginia mills 7,273
bales. In December 1927 the three states consumed 237,325 bales. During the calendar year 1928,
the three textile manufacturing states in the Fifth district consumed 2,839,836 bales of lint cotton,
compared with 3,128,933 bales consumed in 1927, a decrease last year of 289,097 bales, or 9.3 per cent.
Cotton consumption in the district in 1928 exceeded the number of bales grown during that year in
the district by a million and a quarter bales, total consumption being nearly double the yield of cotton
in Virginia and the Carolinas.
COTTON—Spot cotton prices averaged lower between the middle of December and the middle
of January than during the preceding month, but since the first week in January the trend of prices
has been upward. On December 14th the average price paid for middling short staple cotton on
ten Southern markets was 19.14 cents per pound, but on December 21st the average price declined
to 18.88 cents. On December 28th the price had risen to 19.07 cents, but on January 4th the average
dropped to 18.68 cents. From this point, however, the price rose to 18.89 cents per pound on Janu
ary nth and to 19.12 cents on January 18th, the latest date for which figures are available.
Cotton consumption in American mills in December totaled 534,352 bales, according to the re
port of the Bureau of the Census made public on January 14th. This figure shows a decrease from
610,884 bales consumed during the month of November last year, and is also slightly less than
538,786 bales consumed in December 1927, but December 1928, with five Sundays, contained one less
working day than December 1927. Total consumption during the five months of the present cotton
year amounted to 2,782,974 bales, compared with 3,041,352 bales consumed during the five months
ended December 31, 1927. Cotton on hand at manufacturing establishments on December 31, 1928,
totaled 1,740,892 bales, compared with 1,566,878 bales held on November 30, 1928, and 1,708,538 bales
held on December 31, 1927. Bales in public warehouses and compresses numbered 5,315,411 at the
end of December, against 5,252,843 at the end of November, and 5,655,574 on December 31, 1927. E x
ports of cotton totaled 1,058,013 bales in December, compared with 1,427,699 bales sent abroad in
November 1928 and 744,640 bales in December 1927. Imports last month totaled 39,630 bales, com
pared with 39,213 bales imported in November and 41,211 bales in December 1927. Consumption of
cotton in the cotton growing states totaled 405,315 bales in December, compared with 401,633 bales
used in December 1927. Last month’s consumption in the cotton growing states amounted to 75.85
per cent of National consumption, compared with 74.54 per cent of National consumption used in the
cotton growing states in December a year ago. Of the 405,315 bales consumed in cotton growing
states last month, Fifth reserve district states used 226,764 bales, or 55.94 per cent.
TOBACCO—V IRG IN IA leaf tobacco sales during the month of December totaled 21,259,340
pounds, compared with 30,055,877 pounds sold in November, and brought the total sales for this sea
son up to 73,844,053 pounds, which is approximately 60 per cent of the estimated production for the

year. The average price of flue-cured, or bright, tobacco was $17.16 per hundred pounds in Decem
ber, compared with $19.90 in November 1928 and $~o.8o in December 1927. Fire-cured, or dark, to
bacco brought an average of $9.86 in December, compared with $9.73 for this type in December a year
ago. Sun-cured tobacco prices rose in December from those *of November, but the December aver
age of $8.97 per hundred pounds was materially below the average of $11.78 paid in December 1927
for the same type. Danville sold 7,795,569 pounds of bright tobacco in December for an average
of $18.83 Per hundred pounds, leading the state markets in both number of pounds and in price paid.
Lynchburg led the dark markets, selling 1,098,384 pounds, but in price several markets averaged
higher. Richmond sold 582,408 pounds of sun-cured for $8.97 per hundred, and Abingdon sold 1,371,356 pounds of burley for an average of $30.01 per hundred pounds.
NORTH CAROLINA auction warehouses sold 50,503,248 pounds of producers’ tobacco in Decem
ber, at an average price of $18.95 Per hundred pounds, compared with 46,625,686 pounds sold in De
cember 1927 at an average of $21.73 Per hundred. Season sales to December 31st totaled 445,722,991
pounds, compared with 432,521,774 pounds sold by the auction markets to December 31, 1927. Green
ville led the North Carolina markets in sales in December with 7,549,752 pounds, Wilson with sales of
7,151,272 pounds ranking second, but Mebane with an average of $25.21 and Durham with $21.29
per hundred pounds ranked first and second in price.
AGRICULTURAL NOTES—The winter has been mild in the Fifth district, and all farm work
is well advanced except tobacco marketing in Virginia, which has been retarded by dry weather.
Little snow has fallen in the district, and there have been no ice or sleet storms thus far.
In order that our readers may have comparative production figures for the leading crops in the
states comprising the Fifth reserve district, we are including a table showing yields for 1928 and
1927. The figures are final estimates, and were obtained from official sources.
Yrs.

Maryland

West Virginia

Virginia

N. Carolina

S. Carolina

19.345.000
22.660.000

16.524.000
14.774.000

45.155.000
47.967.000

40.830.000
51.323.000

17.064.000
25.449.000

43.000
31.000

840.000
861.000

725.000
730.000

5.100.000
3.488.000

111,600,000
127,971,000

475,000,000
485,395,000

82,288,000
76,648,000

5.405.000
5.246.000

7.500.000
5.876.000

21.593.000
19.760.000

10,545,000
7,368,000

4.068.000
3.034.000

Sweet Potatoes (bus.) 1928
1927

1.500.000
1.584.000

204.000

220.000

6.335.000
5.805.000

7,840,000
10,146,000

4.214.000
5.300.000

Oats (bus.)

1928
1927

1.701.000
1.708.000

5.712.000
5.251.000

4.641.000
3.999.000

4.202.000
5.733.000

7,751,000
10,327,000

Wheat (bus.)

1928
1927

8.745.000
9.188.000

1.586.000
1.796.000

9.758.000
8.381.000

5.150.000
5.168.000

800,000
880,000

Hay (tons)

1928
1927

754.000
733.000

1,182,000
1,259,000

1.451.000
1.472.000

986.000
990.000

376.000
353.000

Peanuts (lbs.)

1928
1927

138.320.000
123.120.000

199.500.000
216.558.000

9,660,000
11,625,000

Apples (bus.)

1928
1927

2.190.000
1.700.000

5 , 000,000

8,750,000

16,100,000
6,600,000

5,000,000
1,825,000

480.000
363.000

Apples (Commercial)
(bbls.)

1928
1927

442.000
400.000

1.470.000
1.350.000

3.700.000
1.650.000

250,000
91,000

616,000
534,000

1,032,000
920,000

1.720.000
2.024.000

Crops
Corn (bus.)

1928
1927

Cotton (bales)

1928
1927

Tobacco (lbs.)

1928
1927

21.700.000
26.176.000

Irish Potatoes (bus.)

1928
1927

Sorphum Syrup (gals.) 1928
1927

1.296.000
1.846.000

FIGURES ON RETAIL TRADE

As Indicated By Reports from Thirty Representative Department Stores for the Month of December 1928
Percentage increase in December 1928 sales, compared with sales in December 1927:
Baltimore
Richmond
Washington
Other Cities
District
— 1.8
— 2.6
2.5
— 6.5
— .6
Percentage increase in total sales during 1928, over total sales in 1927:
— 1.3
2.3
3.3
— 6.2
.4
Percentage increase in December sales over December sales during the three years 1923-1925, inclusive:
.4
17.2
17.1
— 3.8
7.9
Percentage increase in stock on hand December 31, 1928, over stock on December 31, 1927:
— 1.2
— 4.0
— 4.2
— .2
— 2.4
Percentage increase in stock on hand December 31, 1928, over stock on November 30, 1928:
— 17.9
— 19.6
— 19.6
— 21.7
— 19.2
Percentage of sales in December 1928 to average stock carried during that month:
43.6
53.6
56.8
36.2
48.4
Percentage of total sales during 1928 to average stock carried each month:
323.3
373.8
368,9
249.8
334.7
Percentage of collections in December to total accounts receivable on December 1st:
26.2
31.0
32.6
28.4
28.9
— Denotes decreased percentage.

Retail trade in December, as reflected in department store sales, was up to seasonal average,
increasing 55 per cent over November sales and also averaging 7.9 per cent above average December
sales by the same stores during the three years 1923-1925, inclusive. Sales in December by thirty
stores fell 6/ioths of 1 per cent below December 1927 sales, but total sales in the calendar year 1928
were 4/ioths of 1 per cent above sales in 1927. Sales in Richmond and Washington in 1928 ex
ceeded sales in 1927 by 2.3 and 3.3 per cent, respectively, but sales in Baltimore and the Other Cities
were smaller.
Stocks on hand at the end of December 1928 were 2.4 per cent smaller than stocks at the end of
1927, and were 19.2 per cent smaller than at the end of November 1928. Sales during December
amounted to 48.4 per cent of average stock carried during the month, and total sales during the
calendar year 1928 were 334.7 per cent of average stock on the shelves at the end of each of the
twelve months. This indicates an average turnover during the year of 3.347 times, the stores in
Richmond leading with approximately 3.74 times.
Collections in December equaled 28.9 per cent of total receivables outstanding on December
ist, a slightly higher figure than 28.6 per cent of receivables collected in December 1927. Washing
ton, with 32.6 per cent, reported the best collections last month.
___________________________ WHOLESALE TRADE, DECEMBER 1928____________________________
Percentage increase in December 1928 sales, over sales in December 1927:
32 Groceries
10 Dry Goods
5 Shoes
15 Hardware
5 Furniture
— .2
— 5.9
— 19.2
— 3.6
— 8.7
Percentage increase in December 1928 sales, over sales :in November 1928:
— 11.7
— 32.8
— 52.6
— 13.4
— 42.3
Percentage increase in total sales during 1928, compared with sales in 1927:
.9
— 17.9
— 6.8
— 2.6
— 20.4
Percentage increase in stock on Dec. 31, 1928, over stock on Dec. 31, 1927:
9.4(11*)
— 13.0(4*)
2.9(4*)
— 1.5(8*)
Percentage increase in stock on Dec. 31, 1928, over stock on Nov. 30, 1928:
_ 6.3(4*)
— 6.2(4*)
— 3.1(11*)
— .3(8*)
Percentage of collections in December to accounts receivable on December 1, 1928:
63.6(19*)
39.2(7*)
47.2(5*)
37.8(12*)
21.2(3*)
-— Denotes decreased percentage.

13 Drugs
13.4
3.6

1.6

54.7(9*)

* Number of reporting firms.

Wholesale trade in the Fifth Federal reserve district in December, as indicated by reports from
eighty firms in six lines, was in smaller volume in every line except drugs than in either November
1928 or December 1927. The decreases in December sales under those of November were largely
seasonal, but the declines in comparison with December 1927 sales show actual decreases in busi
ness. Total sales for the year 1928 were also smaller in every line reported upon except groceries
and drugs, which gained 0.9 per cent and 3.6 per cent, respectively.
Dry goods and hardware stocks declined in December, while stocks of groceries and shoes in
creased. At the end of the year stocks in all of the four lines for which information was available
were less than stocks on hand December 31, 1927.
Collections in December were better than in November in all lines except groceries. In com
parison with collections in December 1927, those of December 1928 were better in dry goods, shoes
and drugs, but grocery, hardware and furniture collections compared unfavorably with those of the
corresponding month of the preceding year.

(Compiled January 21, 1929)
7

BUSINESS CONDITIONS IN THE UNITED STATES
(Compiled by the Federal Reserve Board)

Industry and trade continued active in December, and the general level of prices remained un
changed. Banking and credit conditions at the turn of the year were influenced chiefly by seasonal
changes in the demand for currency and by requirements for end-of-year financial settlements.
PRODUCTION. Output of manufactures decreased in December, but the decline was less than
is usual during the month, and the Board’s index was slightly higher than in November and above
the level of a year ago. Smaller than usual seasonal reductions were reported in the daily average
output of steel, pig iron, automobiles, copper, cement, silk and flour, while cotton and wool textiles
declined considerably. Meat packing increased in December, reflecting a larger output of pork prod
ucts, though beef and mutton production was smaller. Volume of factory employment and payrolls
was larger than at this season of last year. Production of minerals was in somewhat smaller volume
in December than in November, reflecting chiefly a large reduction in the output of bituminous and
anthracite coal. Production of copper and zinc ore on a daily basis was slightly smaller, while pe
troleum output increased. Preliminary reports for the first half of January indicate a steady in
crease in the output of petroleum and greater activity in the steel, automobile, coal and lumber in
dustries, following the temporary lull due to the inventory period at the end of the year. Building
contracts awarded in 37 Eastern states declined sharply during December, as in the preceding month,
and were smaller than in any December since 1924. The decline from November was attributable
largely to decreases in awards for residential building and public works and utilities. B y districts,
the largest declines over the preceding month were in the Cleveland, Chicago, Boston and Richmond
Federal reserve districts, while increases were reported in the New York, Philadelphia and Atlanta
districts.
TRADE. Department store trade showed greater activity in December than in the preceding
month, after allowance is made for the customary holiday increase. Total sales for the month were
the largest on record, exceeding December 1927 by 1 per cent, although there was one less trading
day this year. Increases over a year ago were reported for the New York and Philadelphia districts,
while substantial decreases occurred in the Atlanta and Minneapolis districts. Distribution at whole
sale declined seasonally and was smaller than a year ago. Freight car loadings in December and
the first half of January showed a slightly larger than usual seasonal reduction, but, as in earlier
months, were above a year ago.
PRICES. The general level of wholesale prices, as measured by the index of the United States
Bureau of Labor Statistics, remained approximately the same during December as in the preceding
month. Average prices of iron and steel, automobiles, copper and building materials continued to ad
vance slowly, and prices of farm products, after declining during October and November, also rose
in December, reflecting higher average prices for raw cotton, oats, rye and some grades of wheat,
offset in part by lower prices for corn and cattle. In the first three weeks of January the price of
rubber advanced sharply, and wheat, corn, potatoes and flour.also increased, while silk and sugar
declined somewhat, and hides reached the lowest level in more than a year.
BANK CREDIT. Banking and credit conditions in January were influenced chiefly by the sea
sonal decline in the volume of money in circulation. At the reserve banks the return flow of cur
rency from circulation resulted in a liquidation of member bank borrowing and small declines in re
serve bank holdings of acceptances and of United States securities. Total bills and securities showed
a decline of about $450,000,000 for the period from December 26 to January 23 and were in about the
same volume as in midsummer of last year. At member banks there was an increase in the total vol
ume of loans at the turn of the year, due chiefly to year-end financial settlements, and the temporary
withdrawal of funds loaned by corporations in the New York market. In January deposits and
loans of member banks declined to approximately the level of the early part of December. In the
money market, rates on call loans declined sharply in January, while rates on time loans on se
curities remained firm and rates on acceptances advanced.

Full text of Economic Quarterly (Federal Reserve Bank of Richmond) : January 1929

FRASER