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F E D E R A L R E S E R V E BAN K O F RICHMOND General Business and Agricultural Conditions in the Fifth Federal Reserve District By CALDWELL HARDY, Chairman and Federal Reserve Agent RICHMOND, VIRGINIA, JULY 31, 1922. DISTRICT SUMMARY NATIONAL SUMMARY* The outstanding feature of the greater part of June was the continuance of business and industrial activity at the relatively high rate recently attained. In fact, production has shown further increases in some lines, while in those which normally would be noticeably affected by seasonal influences, decreases on the whole have been relatively slight. At the same time, prices have continued their upward ten dency. As the current month progressed the effects of the coal and railroad strikes began to make them selves felt. This influence has served recently to re strain productive activities in various lines, notably iron and steel. Relief to the situation is expected as the outcome of the plans recently announced by the Administration. The output in various lines of manufacture showed further improvement in June. This was particularly noticeable in the case of iron and steel, copper, automobiles, and tanning. Con struction activity has been well sustained. The amount of bituminous coal mined in June showed a considerable increase, but since the opening of the present month has fallen off greatly. Coal stocks have consequently been further drawn upon. Petro leum output continued large. A further reduction in the number of persons out of work was reported during June and scarcity of labor continued to be noted, especially in the building trades. Agricultural prospects are still very satisfactory for the country as a whole. In wholesale trade there was a general improvement. During June the volume of retail trade was well sustained though slightly less than in May. Financially there have been few developments noted for the month. Two Federal Reserve Banks, Dallas and San Francisco, reduced their discount rates. Of much interest has been the announcement by the Treasury calling for redemption on Decem ber 15, 1922, of approximately one billion dollars of the 4 3/4 per cent Victory Notes. Federal Reserve portfolios show little change while member bank loans other than those secured by stocks and bonds show a downward tendency. The period covered since our last Review was issued is usually a slack one in business circles, and this year the outlook is clouded by labor troubles in basic or necessary industries, but in spite of these conditions developments have not been unfavorable. Regularly reporting member banks show increased deposits and decreased rediscounts, with only a reg ular seasonal expansion in their outstanding loans to customers. Liquidation of frozen loans is being se cured throughout the District in considerable volume, this being stimulated by higher prices for agricul tural products, especially cotton. The Federal Re serve Bank of Richmond's reserve ratio on July 12, 1922, was 76.03%, compared with 75.81% on June 14, 1922, and 42.95% on July 13, 1921. Debits to Individual Account show lower totals than a year ago, for the first time in several months, but the decrease is comparatively small, and is confined chiefly to debits in two or three of the larger cities. Business failures reported for June by Dun’s Re view show a distinct decline both in number of in solvencies and in total liabilities involved in compari son with earlier months of the year, the June figures being the lowest reported since October 1921. In labor circles, involuntary unemployment has practi cally ceased to exist, and actual shortages of labor are reported in some skilled trades. Textile mills continue busy, with prospects for satisfactory profits becoming better. Cotton prices have advanced about a cent a pound within the past four weeks, and since May 1 a rise of approximately six cents has been witnessed, adding $30 a bale to the value of the farmers’ chief money crop, which however will af fect his future more than his present condition. With the exception of cotton in South Carolina and part of North Carolina, the agricultural outlook for this season is fairly good, and in some of the leading crops is better than at this time last year. Building operations on an extensive scale are catching up on the housing shortage that developed during the war. Wholesale trade is about normal for this season, and retail trade is fairly good, though the retail business has been retarded by unfavorable weather during the entire spring and early summer. Collections are dis tinctly better than they were in the winter and early spring. * This National Summary compiled by the Division of Analysis and Research of the Federal Reserve Board. CONDITION OF SEVENTY-NINE REPORTING MEMBER BANKS IN SELECTED CITIES. 1. 2. 3. 4. 5. 6. 7. 8. ITEMS Total Loans and Discounts (exclusive of rediscounts)...................................... $ Total Investments in Bonds and Securi ties ........................................................... Total Loans and Investments..................... Reserve Balance with Federal Reserve Bank......................................................... Cash in Vaults................................................ Demand Deposits.......................................... Time Deposits............................................... Discounted with Federal Reserve Bank.... July 5, 1922 418,973,000 119.871.000 538.844.000 34.296.000 13.736.000 329.278.000 146.329.000 9,264,000 June 7, 1922 $ 420,493,000 118.652.000 539.145.000 : 35,573,000 13.938.000 318.279.000 144.677.000 13.462.000 July 6, 1921 $ 416,063.000 122.359.000 538.422.000 33.478.000 15.763.000 303.500.000 119.602.000 74.423.000 The table above shows the principal items of condition reported by seventy-nine member banks in thir teen of the leading cities in the Fifth District. Since our last month’s Review was issued, in which we showed figures from eighty-one banks, some changes in the reporting list have taken place. Two member banks have combined in Baltimore, another is liquidating its affairs in Charleston, S. C., and another in Richmond has absorbed a heretofore non-reporting bank. These changes reduce the number of reporting banks from eighty-one to seventy-nine but do not materially alter the comparableness of the items of condition shown in the table, the several changes approximately balancing each other. The variations in the figures for the individual items between July 6, 1921 and June 7, 1922 compared with July 5, 1922, are relatively unimportant except for Items 6, 7 and 8. Item 6, Demand Deposits, shows a healthy increase in the July 5, 1922, figures over those reported a year ago and those reported a month ago, the increase over the July 6, 1921 total amounting to 8.5% and over the June 7, 1922 total amounting to 3.5% . Item 7, Time Deposits, likewise shows a substantial increase for July 7, 1922 over both of the preceding dates, the increase over a year ago amounting to 22.3% and over a month ago to 1.1% . Item 8, Discounts with the Federal Reserve Bank shows that borrowings from the Reserve Bank by the seventy-nine reporting members have decreased 87.6% during the past year and 31.2% during the past month. The increase pointed out in demand and time deposits, coming as they have without any increase in loans, would seem to indicate that the deposits are being swelled by an accumulation of surplus earnings of depositors or larger balances carried by business firms as collections improve and money becomes easier. DEBITS TO INDIVIDUAL ACCOUNT IN LEADING TRADE CENTERS. 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........................ . Raleigh, N. C...................... Richmond, Va.................... Roanoke, Va....................... Spartanburg, S. C............... Washington, D. C............... Wilmington, N. C.............. Winston-Salem, N. C........ Totals for 11 cities. Totals for 23 cities. $ $ DEBITS FOR THE WEEK ENDING June 7, 1922 July 5, 1922 July 6, 1921 4,137,000 $ 4,081,000 $ ............. 80,876,000 96,747,000 99,260,000 5,888,000 6,199,000 7,019,000 9,427,000 6,550,000 8,132,000 7,877,000 5,865,000 5,151,000 5,145,000 4,300,000 2,156,000 1,903,000 1,911,000 1,492,000 3,921,000 3,976,000 3,285,000 4,103,000 4,112,000 4,022,000 3,640,000 2,326,000 2,321,000 4,903,000 5,201,000 4,540,000 5,096,000 4,403,000 2,024,000 1,276,000 15,296,000 17,551,000 13,888,000 4,900,000 3,700,000 4,350,000 27,044,000 30,734,000 26,505,000 5,397,000 5,514,000 2,075,000 2,232,000 51,796,000 42,927,000 41,357,000 5,423,000 3,899,000 5,039,000 5,671,000 6,386,000 $ 235,539,000 $ 215,763,000 201,984,000 282,083,000 247,103,000 The accompanying table shows debits to individual, firm and corporation accounts in twenty-three cities of the Fifth Reserve District for the weeks ending July 5 and June 7, 1922, and also shows debits in eleven of the cities for the week ending July 6, 1921. The figures shown include returns from practically all the banks in the reporting cities, and therefore indicate with considerable accuracy commercial activity in the sev eral centers. For the first time in several months the total figures are lower for the most recent week listed than for the corresponding weeks a year ago and a month ago. However, seven of the eleven cities for which 1921 returns are available show larger debits for the week ending July 5, 1922 than for the corresponding period ending July 6, 1921, the total decrease being accounted for by declines in Baltimore, Charleston, S. C., Raleigh, N. C., and Wilmington, N. C. The decrease in Baltimore, which accounts for practically all of the decline, was due largely to a double holiday in Maryland, both July 3 and 4 being taken for Independence Day. Comparing the July 5, 1922 week with the one ending June 7, 1922, declines are noted in twelve of the twenty-three reporting cities, but the decreases were small in about half of them. A considerable part of the total decrease is due to the occurrence of the July fourth holiday in the week ending July 5. This holiday would have reduced the debits still further if the week had not also contained the first of July with its large volume of mid-year payments of interest, dividends, etc. FEDERAL RESERVE BANK OPERATIONS. During the month from June 14, 1922 to July 12, 1922, Cash Reserves held by the Federal Reserve Bank of Richmond fell from $111,157,820.98 to $105,862,197.22, a decrease of 4.8%. Between the same two dates Total Bills on Hand declined from $42,838,431.49 to $39,728,717.01, a decrease of 7.30%, and Federal Reserve Notes in Actual Circulation declined from $84,494,455 to $80,970,875, a decrease of 4.2% . Member Bank Reserve Deposits increased, however, from $55,174,855.15 on June 14 to $57,336,206.24 on July 12, a gain of 3.9%. The ratio of total reserves to Deposit and Federal Reserve Note Liabilities com bined was 75.81 % on June 14, 1922, but rose to 76.03% on July 12, 1922. On July 13, 1921, this ratio was 42.95 % , and at that time we were rediscounting with other Reserve banks $20,000,000 of our paper. BUSINESS FAILURES IN THE TWELVE FEDERAL RESERVE DISTRICTS ________ JUNE, 1922 AND 1921, City and District Number Boston, First.......................................... New York, Second................................ Philadelphia Third.............................. Cleveland, Fourth................................. Richmond, Fifth.................................... Atlanta, Sixth........................................ Chicago, Seventh.................................. St. Louis, Eighth................................... Minneapolis, Ninth............................... Kansas City, Tenth.... ........................ Dallas, Eleventh.................................... San Francisco, Twelfth....................... 1922 150 273 57 136 137 147 230 125 79 86 114 206 1921 136 232 71 98 82 130 140 102 31 73 105 Totals.............................................. 11,740 1,320 120 Per Cent Liabilities Increase or 1922 1921 Decrease $ 2,546,879 10.3 $ 4,888,902 4,736,685 17.7 7,642,247 1,939,408 —19.7 1,573,360 4,744,487 38.8 3,521,377 1,478,512 67.1 2,183 739 3,522,511 13.1 2,041,013 4,476,283 64.3 6,369,831 1,974,278 22.5 1,525,233 154.8 1,307,894 454,553 17.8 4,764,647 2,149,987 2,481,679 2,588,787 >8.6 1,412,345 2,557,188 71.7 31.8% $ 38,242,450 $ 34,639,375 Per Cent of Increase or Decrease 92.0 61.3 — 18.9 — 25.8 47.7 — 42.1 42.3 — 22.7 187.7 — 54.9 — 4.1 81.1 10.4% Business failures during June in the United States were 31.8% more numerous than during June 1921, but improvement is shown over recent months. Although Dun's Review reports 1,740 bankruptcies in June 1922, compared with 1,320 in June last year, the June 1922 number is less than for any other month since October 1921, when 1,713 failures were reported. Total liabilities involved in the insolvencies totaled $38,242,450 in June of this year compared with $34,639,375 during the corresponding month last year, an increase of 10.4% during the 1922 month. In the Fifth District, both the number of failures and the liabilities involved show greater percentage in creases over the June 1921 figures than are shown for the nation. June 1922 witnessed 137 failures in the territory embraced in the Richmond District, with liabilities amounting to $2,183,739, compared with 82 failures with liabilities totaling $1,478,512 reported for June 1921, an increase in number amounting to 67.1 % and in liabilities to 47.7% in June 1922 over the same month last year. However, like the national record, the number of failures in June in the Fifth District is the lowest number reported since October 1921. Total liabilities are also lower than for any previous month this year. The average liability per failure during June 1922 was $15,939 for the Fifth District and $21,978 for the nation, compared with averages in June 1921 of $18,030 for the Fifth District and $26,242 for the nation. The figures would seem to indicate that the larger firms have passed through their greatest depression, but a large number of the smaller, weaker firms are going down under the long continued strain of readjustment to more nearly normal conditions. LABOR— The coal miners' and railway shopmen’s strikes have pushed all other labor questions into the discard, and very little is now heard of involuntary unemployment. All reports received by us this month indicate that there is sufficient work for all who really want employment, though it is not yet possible in every case for applicants to choose their lines of work to suit their tastes. In a few lines, among them being several branches of the building trades, there is an actual shortage of skilled men, and contractors are here and there displaying a disposition to bid against each other for labor to carry on their undertakings. This condition is tending to check the building revival that appeared to be establishing itself on a sound basis. Nearly all of the industries in the Fifth District are making gains, and in consequence are adding new employees to their rolls from time to time. Among the corporations that have materially increased their working forces during recent months are the Richmond plant of the American Locomotive Company and the Newport News Ship building and Dry Dock Company. Textile mills, lumber plants, tobacco factories and furniture factories are employing approximately their usual number of workers. Road, street and sewer projects are giving work to large numbers of common laborers. It appears safe to say that if the coal and railway strikes could be settled promptly there would be no unemployment problem worthy of the name in the Fifth District, but it also appears quite likely that unless the two strikes are very soon settled there will be a great deal of unem ployment as a result of coal and transportation shortages. COAL— The United States Geological Survey, in its July 15, 1922 report on the production of bitu minous and anthracite coal, carries the following summary of the situation: “A new cause has arisen to limit the production of coal, namely, local congestion of traffic as sociated with the strike of the railway shopmen. Because of the uncertainties of the situation it is difficult to forecast production for the present week (July 10-15), but the records of the first four days suggest that the output of bituminous coal can hardly exceed 4,300,000 tons. Production of anthracite continues practically zero. Final returns on the week of Independence Day, the fourteenth of the strike, show that 3,936,000 net tons of soft coal and 23,000 tons of anthracite were produced, a total of all coal of 3,959,000 tons. The trend of production in the fifteenth week of the strike (July 10-15) may be gaged from the following table of cars of coal loaded daily. Monday’s loadings (14,952 cars) were lower than those of Monday in other recent weeks, yet 011 Tuesday loadings dropped to 12,829 cars, and on Thursday they fell to 11,584 the lowest on any Thursday since mid-April. 10th Week Monday ...... .....14,597 Tuesday ..... .....15.269 Wednesday .....15,999 Thursday .....16,325 Friday ........ .... 15,864 Saturday...... .... 13,991 92,045 nth Week 12th Week I 5,3H 16,622 17,032 16,432 16,073 13th Week 16,747 14th Week 11,039 15th Week 14,952 12,829 15,748 334 12,304 15,656 n ,979 16,402 14,521 11,584 15,980 14,631 12,523 12,603 13,993 65,027 93,136 95,463 The cause of the decrease was congestion of traffic resulting indirectly from the shopmen’s strike. The first districts to be affected were Logan and Eastern Kentucky, but in Western Kentucky and Southwestern Virginia also loadings soon began to decrease, and by Wednesday even the Pocahon tas, Tug River, and Kenova-Thacker districts were producing far below normal. In the non-union fields of Pennsylvania and in Alabama and the Far West no decrease in output had been reported up to Wednesday. No reports have been received to indicate any significant change in the number of men on strike. 15,474 15,849 14,905 14,884 13,933 13,465 88,510 Decreased output of coal means, of course, an increased draft upon the stocks of consumers, but the exact rate of depletion can not be stated because the present consumption is not accurately known.,, TEXTILES— The situation in the textile field has changed little during the past month so far as the Fifth District is concerned. Mills continued running approximately full time, and the outlook for future business is reported by all correspondents as good, but there is general agreement among our mill friends that the business they are now doing is returning little profit. Raw cotton has advanced something like two and a half cents per pound since June 1, but while prices of cloth have been very firm and have made some ad vances, all of our correspondents this month say that the advances have not kept pace with the rise in raw cotton. However, the mill authorities agree that this is a temporary condition, which is confidently expected to right itself when more accurate data on this year’s cotton crop become available. Practically all of our tex tile correspondents expect future changes to be toward higher quotations on manufactured goods rather than toward lower prices for raw cotton. Because they hold this view, the mills are not unduly urging their cus tomers to place forward orders at present price levels. COTTON— Price changes in cotton since our last month’s Review was written have favored holders and growers of the staple, an advance of a little more than a cent a pound having occurred. As we stated in our Review last month, the average spot price per pound paid in the Carolinas for middling cotton during the week ending June 17 was 21.15 cents, but during the week ending July 15 the average was 22.36 cents. On July 16, 1921, the average price in the Carolinas was 11.14 cents. The Department of Agriculture’s cot ton report as of June 25 showed a national condition of 71.2% on an acreage of 34,852,000 acres, indicating a probable yield of 11,065,000 bales this season. The report was considered bullish, and the release of the figures caused a jump of about $7.50 a bale, practically all of which gain has been held. The week ending July 15 witnessed a slight decline from the previous week, this decline being partly due to uncertainty re garding the effects of the coal and railway strikes, rather than to a bearish feeling in the market. The Census Bureau’s report on cotton consumption during June shows an increase over both May of this year and June of 1921, the increase over May amounting to 12,195 bales and over June 1921 to 45,952 bales. Consumption totaled 507,869 bales in June 1922, 495,674 bales in May 1922, and 461,917 bales in June 1921, linters excluded in all cases. Active spindles totaled 31,877,015 for June, compared with 31,653,061 for May 1922 and 32,760,904 in June last year. Active spindles in the cotton growing states show an increase over the June 1921 figures. Cotton on hand June 30, 1922 in consuming establishments amounted to 1,332,383 bales of lint compared with 1,419,836 bales on May 31, 1922, and 1,203,364 bales on June 30, 1921. Public warehouses and compresses held 1,936,025 bales of lint on June 30, 1922, compared with 2,561,007 bales on May 31, 1922, and 4,300,386 bales so held a year ago. Exports during June 1922 amounted to 491,079 bales compared with 469,397 bales in June last year, the export figures including both lint and linters. AGRICULTURAL NOTES— June weather was on the whole more favorable for crop development than that of earlier months this season, but was by no means ideal. During the first half of the month too much rail fell, and there were many cloudy days and cool nights. Cotton particularly is in need of dry, hot weather, both to promote proper development of roots and to check boll weevils. In the Fifth District, the Virginia cotton crop showed on June 25 a condition of 85 % of a normal on 51,000 acres; North Carolina showed a condition of 76% on 1,601,000 acres; and South Carolina showed a condition of 60% on 2,230,000 acres. These figures show acreage increases of 50% in Virginia and 13% in North Carolina over the 1921 acreages, but indicate a decrease of 15 % this year in South Carolina. The reduction is due to the severe ravages of the boll weevil last season and a virtual certainty of a repetition of the damage this year. South Carolina and Georgia are the only states that show decreased acreage planted to cotton, the average for the United States showing an increase of 10 % . The boll weevil is present in South Carolina in large numbers, and has practically covered the state to a greater or less degree, but the farmers are displaying considerable interest in methods of weevil control. North Carolina has yet not been much affected by the weevil, which has not reached Virginia at all. As we have said in previous issues of this Review, the weevil is apparently present in greater number this season than ever before, and the out come of the farmer’s efforts to control the pest is problematical. Virginia’s corn acreage is 1,942,000 acres, or 2% larger than last year. The condition of the crop is reported as unusually good except in the eastern and southeastern counties where there has been too much rain. The prospects point to a 54,349,000 bushel crop this year. North Carolina’s corn crop is below the average for the nation, the condition on July 1 being 79% of normal, which is 3% lower than the condition a year ago. South Carolina’s crop is also much below the average. Excessive rains in May and early June prevented proper cultivation of early plantings in central and southern counties where prospects are poor. In other sections of the state intermediate and late plantings are better and show promise of good yields. Corn acre age is 4% larger than last year. Tobacco is promising in Virginia, and growth is well advanced. There has been some damage from heavy rains, but this has been confined to low and poorly drained fields. Preliminary forecasts indicate a probable production this season of 161,515,000 pounds on an acreage of 209,000 acres, compared with 95,000,000 pounds last year on 167,000 acres. The average condition on July 1 was 92% of normal, which compares with 68% on July 1, 1921. North Carolina’s tobacco acreage shows an increase of 10 % , and a July 1 condition of 69%. The coastal plain counties have had entirely too much rain for this crop, resulting in a poor outlook, and the more northern counties also report poor conditions predominating. South Carolina reports an increase of 12% in tobacco acreage, with a condition of 65% on July 1 compared with 70% a year ago. The South Carolina tobacco crop is being cured at present, and markets will open about August 1. The tobacco is reported as of rather inferior quality, due to excessive moisture during the growing season. The wheat yield in the Fifth District was disappointing. Straw was heavy, but heads did not properly fill out, and therefore the grain is poor both in quantity and quality. Virginia’s white potato acreage is 4 % larger than last year, due to an increase in the early commercial crop, but the yield has been less than usual because of unfavorable weather and poor seed. A condition of 83% indicates a production of 15,214,000 bushels, compared with 14,688,000 bushels last year and 18,480,000 bushels in 1920. The sweet potato acreage has increased from 44,000 acres last year to 46,000 acres, and since the season has been favorable for this crop, the condition is unusually good, being 90 % against a ten year average of 87 %. North Carolina’s Irish potato crop is much better than last year, with a slight increase in acreage. July i condition was 83% of a normal. The sweet potato crop shows a 4% acreage increase, with a condition of 89%. South Carolina reports a condition of 80% for Irish potatoes, with a 10% in crease in acreage, and a sweet potato condition of 85% with a 20% acreage increase. BUILDING OPERATIONS FOR THE MONTHS OF JUNE, 1922 AND 1921. Permits Issued CITIES New Repairs 1922 1921 1922 1921 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 MARYLAND Baltimore.............. Cumberland.......... Frederick............... VIRGINIA Lynchburg............. Norfolk.................. Richmond.............. Roanoke................. WEST VIRGINIA Charleston............. Clarksburg**........ Huntington............ Parkersburg.......... NORTH CAROLINA Asheville................ Charlotte................ Durham................. Greensboro............ High Point............ Wilmington....... . Winston-Salem SOUTH CAROLINA Charleston............. Columbia............... Greenville.............. Spartanburg.......... DIST. OF COLUMBIA Washington........... Totals......... 564 33 9 20 127 166 121 83 103 34 28 32 43 32 17 60 26 41 24 27 350 1,940 New Construction 1922 1921 Increase or Per ofCent Decrease Increase Total or Valuation Decrease Alterations 1922 1921 496 1,481 1,449 $ 1,621,000 $ 2,608,880 $ 594,400 $ 721,800 131,341 146,835 17,315 36 16 31 9,550 14,100 5 8 143,150 17,290 166,400 30,400 25,797 12,350 13 43 10 458,650 58,071 544,337 40,483 55 32 53 742,824 211,565 137 97 107 1,592,066 147,665 470,275 *379,325 34,005 *150 52 21,860 388,058 336,061 33,339 107 25 25 24 33,675 17,390 10,475 252,594 *198,455 *139 26 100,000 25,000 70,000 45,000 8,732 249,830 159,550 55,862 46 25 85 8 482,675 79,500 73,275 15 5,500 21 2 100,550 62,850 4,875 650 16 5 7,015 240,843 49,150 28 19 12 2,332,980 7 304,250 29,680 2,050 6 2,669 14 85,000 3 77,500 5,500 13 29,015 46 85 75 245,737 142,575 31,807 215,911 137,025 11,165 25,800 28 29 24 75,900 100,375 18,285 13,074 38 69 91 119,200 113,050 14,065 58,175 18 27 22 71,415 27,945 9,640 6,240 24 34 21 923,448 534,280 231 705 500 4,987,337 1,393,855 1,665 2,790 2,530 $14,635,956 $7,542,643 $2,213,138 $1,754,784 ^Includes both new work and repairs. **Clarksburg, W. Va., not included in totals. Z0 $—1,115,280 — 33.5% 1 — 7,729 — 4.9 2 139,960 809.5 3 149,447 349.6 4 103,275 20.7 5 913,142 102.5 6 124,955 32.9 7 40,518 11.0 8 9 64,614 32.6 10 10,000 8.7 1 1 43,150 20.0 12 470,950 554.1 13 41,925 66.0 14 2,050,002 706.9 15 273,951 846.9 16 — 13,000 — 14.4 17 100,370 57.6 18 64,251 39.5 19 29,686 33.4 20 37,960 28.5 21 46,870 137.1 22 3,982,650 206.6 23 $ 7,551,667 81.2% —Denotes Decrease. Records of building permits issued in twenty-three cities of the Fifth District during June show a con tinuation of the construction activities that began with the opening of spring weather. Twenty-two of the cities for which last year’s figures are available for comparison show 1,940 permits for new construction issued in June 1922, with estimated valuation of $14,635,956, compared with 1,665 permits issued in June 1921, with estimated valuation of $7,542,643. Permits for alterations and repairs totaled 2,790 in June of this year, valued at $2,213,138, compared with 2,530 permits issued in June last year, valued at $1,754,784. Combined valuation of both new work and repairs or alterations during June 1922 totaled $16,849,094 com pared with $9,297,427 in June last year, an increase this year of $7,551,667, or 81.2% . This is the largest total valuation reported since the Reserve Bank began tabulating building statistics, and the number of per mits issued for new construction is the third largest ever reported, being exceeded only by the numbers for May of this year and June 1919. As in previous months, the majority of the permits issued are for residence or apartment house construction, but the great increase in valuation shows that business structures are beginning to be more numerous. As a result of the building activity that appears to be quite general over the entire United States, deal ers in building materials of all kinds are enjoying practically all the business they can handle, and building material prices are quite generally showing an upward tendency. There has as yet been few marked ad vances, but dealers in materials, particularly the manufacturers of lumber, contend that prices have been so low that there was little or no profit in sales for them. There is therefore, a strong tendency to advance prices whenever it is thought the trade will absorb them. FIGURES ON RETAIL TRADE As Indicated by Reports from Twenty-five Department Stores in the Fifth Reserve District for the first Six Months of 1922 Percentage of increase (or decrease) in net sales during the month named, 1922, over same month last year: June January February March April May — 5.4 —19.5 —13.0 —20.5 2.9 —3.5 Baltimore............................. — 3.4 —13.1 —11.5 —1.7 4.0 —14.0 Richmond............................. — 7.6 —10.5 —16.0 —4.2 —1.6 —12.1 Washington......................... —13.4 —5.6 —18.7 —26.2 —8.0 —21.0 Other Cities......................... — 7.0 —13.0 —19.0 —1.3 —2.5 —17.1 District Average...... Percentage of increase (or decrease) in net sales from January 1st, through month named, 1922, over net sales during same period last year: June January February March April May —16.6 —18.1 —12.6 —10.7 — 9.8 —19.5 Baltimore ............................. —14.0 —13.5 —12.7 — 9.7 — 6.9 — 6.3 Richmond............................. — 8.6 —12.1 —11.3 —13.2 —10.8 — 8.9 Washington......................... —19.9 —21.0 —22.5 —18.6 —15.8 —15.4 Other Cities......................... —15.2 —17.1 —16.7 —12.6 —10.5 — 9.8 District Average...... 1922, over net sales during the immedidecrease) in net sales during the month named, Percentage of increase (or ately preceding month this year. January February March April May June 17.6 — 7.4 — 1.2 —10.3 31.9 Baltimore............................. 2.4 — 0.7 42.9 — 0.4 1.3 Richmond............................. — 0,4 0.2 2.4 2.4 31.6 Washington........................... 14.2 — 7.3 1,9 — 6.9 34.3 Other Cities......................... — 2.4 — 1.2 — 5.8 10.3 33.3 District Average Percentage of increase (or decrease) in stocks at close of month named, 1922, over stocks at same date last year January February March April May June 7.6 5.1 0.7 1.4 0.2 3.3 Baltimore ............................. 6.4 1.8 — 0.5 9.7 9.4 — 1.8 Richmond............................. 3.6 13.2 11.3 8.8 6.2 6.2 Washington........................... 8.6 6.6 2.9 2.8 4.8 5.9 Other Cities......................... 8.5 3.6 2.5 8.5 3.3 4.3 District Average Percentage of increase (or decrease) in stocks at close of the month named, 1922, over stocks at close of pre ceding month this year: May January February March April June — 2.0 9.0 9.6 —2.1 —4.9 — 5.2 Baltimore............................. 7.0 — 8.7 4.7 —0.1 —3.1 — 3.2 Richmond.............................. 20.8 — 9.7 —2.8 — 2.4 8.7 —0.8 Washington............................ 10.0 —1.2 — 0.7 — 8.8 7.3 —0.1 Other Cities.......................... 12.5 8.6 —1.2 — 6.1 —3.5 — 3.4 District Average Percentage of average stocks at close of each month since January 1st, to average monthly net sales during the same period: January February March April May June 447.8 433.5 405.0 Baltimore .............................. 406.3 392.9 382.7 449.2 468.8 431.3 412.6 392.2 376.8 Richmond.............................. 414.3 456.5 438.9 427.5 416.4 Washington .......................... 407.6 572.6 624.0 592.3 556.0 533.1 Other Cities.......................... 525.5 434.1 475.6 456.3 433.1 District Average 419.5 409.7 Percentage of outstanding orders at the end of each month named, 1922, to total purchases of merchandise during 1921: January February March April May June 8.1 7.5 5.9 4.5 6.0 6.2 Baltimore.............................. 7.0 6.2 6.5 4.8 4.8 Richmond.............................. 4.4 3.7 5.1 3.2 2.9 Washington .......................... 3.7 5.2 5.5 3.8 5.3 4.0 5.9 8.4 Other Cities.......................... 6.0 6.3 4.8 4.2 5.4 District Average 5.9 It has been our custom during the past two years to publish retail trade averages in our July and Janu ary.Reviews for the first and second half year periods, in addition to the regular monthly figures published in other issues. We do this in order that our readers may have percentages for six months before them in convenient form for study. In accordance with that custom, we present herewith complete figures from twenty-five identical stores for the first six months of this year. Reviewing the averages for June, the only month not previously reported upon, a decrease in sales under June 1921 sales is noticed, the decline amounting to 7.0%. This decrease is accounted for by price changes and by unfavorable weather during much of June 1922. The entire retail season has been backward this year, and it is well known that trade lost early in a season is never recovered in full. Cumulative sales from January i through June 30 also show a decrease in comparison with the first half of 1921, but in the table given above it will be seen that the poor business done during the first three months of the year accounts for most of the decline in cumulative sales. The selling value of stocks on hand at the end of June was 3.3% larger than on the same date last year, but 3.4% less than at the end of May 1922. The percentage of average stocks on hand at the end of each month since January 1 to average monthly net sales during the same period is 409.7%. Outstanding orders for merchandise at the end of June amounted to 5.9% of total purchases dur ing the year 1921. WHOLESALE TRADE Percentage® Increase (or Decrease) in Net Sales During June, 1922, as Compared With May, 1922 and June, 1921. Number of reporting firms in each line............. Net sales (selling price) during June, 1922, compared with May, 1922............................... Net sales (selling price) during June, 1922, compared with June, 1921................................ —Denotes Decrease. Groceries Dry Goods 44 16 Shoes Hardware Furniture Drugs 18 9 11 19 0.7 9.5 —2.8 —4.0 1.9 —1.8 3.8 0.04 —8.7 —0.08 9.3 —1.6 We call attention to the addition of wholesale drugs to the list of lines from which reports are being re ceived each month, eleven drug firms having sent us figures showing their sales during June and May of this year and June of last year. These eleven firms are scattered over the Fifth District, and fairly represent the trends in that line of trade. The largest sales reported were approximately $175,000 in June 1922, and the smallest sales for the same month amounted to slightly more than $28,000, the average business of the eleven firms for the month being $67,293. The above figures are given in order to show the importance and the representative character of the reporting firms. The table given above shows that in June 1922 sales were larger in dollar value than in either May 1922 or June 1921 in groceries, dry goods and furniture, but were lower in shoes, hardware and drug circles. Little change has been made in either direction, however. Our reports from wholesalers this month agree that public feeling is more optimistic, and while retailers continue to buy cautiously and chiefly for immediate requirements, there is considerably more freedom in placing forward orders than has been evident for some time. Our dry goods jobber correspondents tell us that advancing cotton prices have tended to give mer chants more confidence in future values, and furniture manufacturers write that residence construction, to gether with higher prices for the lumber that enters into furniture making, has increased orders received from retailers to a considerable degree. The building work now under way has also helped the hardware trade. All signs indicate that collections are slowly but steadily improving. Data received this month from one hundred and nine firms for which information for previous months is available show that 85.3% of the re porting firms classed collections for June as either Good or Fair, compared with 81.4% so reporting for May, 72.6% for April, 70.1% for March, 56.9% for February, and 61 . 1 % for January. These averages show a steady improvement each month from the low point reached in February. The drug firms reported June collections as follows: four as good, five as fair, one as slow to fair, and one as slow. We give below the classified reports by lines for June, and for comparative purposes we have added the totals for the pre vious months of this year. The drug figures are omitted, since they are not available for earlier months. Collections Reported As Lines Sold Good Fair Slow P oor . Total Groceries..............................................................................8 33 3o 44 Dry Goods ................................................................ ..........1 n 4o 16 Boots and Shoes ...................................................... ..........2 16 2o 20 Hardware ............................................................................2 11 5o 18 Furniture... ................................................................ .............1_________8________ 1________ 1________ 11 June Totals........................................................ ..........14 79 15 1 109 82 18 1 113 May Totals...................................................................12 April Totals ___________________________ _____7 70 26 3 106 75 30 5 117 March T otals.................................................... ..........7 February Totals .........................................................9 57 43 7 116 January Totals.................................................. ..........8 61 33 11 1 13 (Compiled July 17, 1922)