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F E D E R A L R E S E R V E B A N K O F R IC H M O N D General Business and Agricultural Conditions in the Fifth Federal Reserve District By C A L D W E L L H A R D Y , Chairman and Federal R eserve A gen t RICHMOND, VIRG IN IA, OCTOBER 31, 1921 Signs that seem to point Textile manufacturers con to a healthy business revival tinue to receive increasing C O N TE N TS are slowly but steadily be orders, and are making some com ing more apparent in the profits out o f the new busi Fifth Reserve District, a de ness. Prospects in the cloth Introduction velopment that has its origin ing trade are fair, and the Condition o f M em ber Banks with the improved demand shoe business is good. H os Debits to Individual Account for cotton, cotton goods, and iery and knit goods manu M onthly Clearings facturers are operating their profitable prices for tobacco. Business Failures The cotton crop report, is mills full time, with suffi Textiles sued by the Department o f cient orders ahead to take Clothing Agriculture, as of Septem their output for several Foods ber 25, was more optimistic months. Food dealers re Coal than had been expected, but port good business in all Tobacco the prices have not declined lines during September, with Cotton seriously, and are hovering an increasing tendency for Building Construction persistently near the twenty jobbers to buy for future Retail Trade cent mark. The effects o f requirements. The coal out W holesale Trade the present prices for cot put is increasing steadily, ton and tobacco have been probably sufficiently to take felt in every line o f business care o f increased orders as in the District, and the reports received from lead industry gets back into operation. Tobacco and ing firms in numerous lines are full o f optimistic cotton are bringing the producer prices that ap predictions for the future o f business. pear to be sufficient to cover production costs, Condition reports received weekly from eighty and some liquidation is noted o f last year's obli three member banks in leading cities show in gations. Building construction in September was creased reserves and lowered borrowings from the particularly good, more permits having been is Reserve Bank. Other reports indicate that the sued than in the corresponding month in either selling o f cotton and tobacco has enabled many 1919 or 1920, and more permits than were issued banks to strengthen their position by reducing during any month in 1920. W holesale trade in loans due to other than Federal Reserve Banks. dry goods, shoes and furniture is considerably Debits to Individual Account at clearing house ahead in the volume o f sales for September, 1921, centers show business in the Fifth District rela in comparison with September, 1920. Sales re tively more active than the average for the United ported for September by sixty-six firms handling States, as shown by the Federal Reserve Board’s groceries, dry goods, boots and shoes, hardware weekly statement. Business failures in the Fifth and furniture show an increase o f 6% over August, District in September were 57.4% more numerous 1921 sales, and a decrease o f only 13.3% under than in September, 1920, but the average increase sales in September, 1920. Retail trade is tak for the twelve Federal Reserve Districts was ing on the usual seasonal briskness, though the 116.5%. The labor situation has not changed ma warm weather somewhat slowed down this de terially as compared with former months this year. velopment during September. CONDITION OF SEVENTY-EIGHT REPORTING MEMBER BANKS IN SELECTED CITIES. ITEMS 1. Total Loans and Discounts (exclusive of rediscounts) -------------------------- $ 2. Total Investments in Bonds and Se curities -------------------------------------3. Total Loans and Investments----------4. Reserve Balance with Federal Reserve Bank ___________________________ 5. Cash in Vaults--------------------------------6. Demand Deposits___________________ 7. Time Deposits -------------------------------8. Discounted with Federal R e s e r v e Bank ___________________________ * Includes some miscellaneous investments. October 5, 1921 September 7, 1921 October 8, 1920 I 405,391,000 :$ 403,523,000 $ 49$,064,000* 124.899.000 530.290.000 119,291,000 522,814,000 76,983,000** 573.047.000 30.732.000 14.089.000 287.413.000 117.646.000 28,723,000 14,200,000 291,629,000 117,776,000 35.947.000 18.389.000 341.126.000 105.791.000 68,168,000 81.925.000 66.983.000 i ** Government Securities only. In the table given above, the principal items of condition are shown for seventy-eight identical banks, located in thirteen cities o f the Fifth Reserve District, as of the close of business October 5, 1921, September 7, 1921, and October 8, 1920, thus giving comparisons for the current month with the pre ceding month o f this year and with the corresponding date last year. In the table, all items are com parable except items 1 and 2, these having been calculated differently in 1921 and 1920. Comparing the figures as o f October 5, 1921, with those as of October 8, 1920, all items show de creases between the tw o dates except item 7, Time Deposits, which continues to hold up remarkably well, having increased from $105,791,000 on October 8, 1920, to $117,646,000 on October 5, 1921, a gain of $11,855,000, or 11.2%. Every month this year has shown higher Time Deposits than the cor responding month o f 1920. The decrease shown in all items except number seven are as follows : Total Loans and Investments decreased from $573,047,000 as of October 8, 1920, to $530,290,000 as of October 5, 1921, a decline o f 7.5% ; Reserve Balance with the Federal Reserve Bank decreased from $35,947,000, to $30,732,000, a decline of 14.5%; Cash in Vaults decreased from $18,389,000 to $14,089,000, a de cline o f 23.4% ; Demand Deposits decreased from $341,126,000 to $287,413,000, a decline of 15.7%; and Discounts with the Federal Reserve Bank decreased from $81,925,000, to $66,983,000, a decline o f 18.2%. Comparing the figures as o f October 5, 1921, with those as of September 7, 1921, some interest ing facts are seen. Total Loans and Discounts increased within the month five-tenths o f one per cent., and Total Investments increased 4.7%. Reserve Balance with the Federal Reserve Bank also shows an increase, amounting to 7% , but Demand Deposits, Time Deposits, and Discounts with the Federal Reserve Bank all register declines for the month. The figures alone, however, do not indicate the full amount o f liquidation that has taken place, for at this time of the year there is a seasonal liqui dation in county banks, as crops are marketed, but there is also a seasonal increase in loans in the city banks to finance the merchants, wholesalers and buyers of agricultural products, the liquidation of which loans normally occurs later in the season. In view of this counter demand for loans, the small increase for this period in immaterial. The decrease in bills discounted with, and the increase in reserves with the Federal Reserve Bank show that the reporting banks occupy a stronger position than previously this year. DEBITS TO INDIVIDUAL ACCOUNT IN CLEARING HOUSE CITIES. For the Weeks Ending CITIES October 5, 1921 Baltimore, Md. ----------------------------------- $ Charleston, S. C---------------------------------Charlotte, N. C-----------------------------------Columbia, S. C. --------------------------------Greenville, S. C---------------------------- *------Huntington, W . Va-----------------------------Norfolk, V a . __________________________ Raleigh, N. C_______________________— Richmond, Va. ----------------------------------Washington, D. C--------------------------- ----Wilmington, N. C_____________________ Totals for 9 cities------------------------- $ Totals for 11 cities----------------------- October 6, 1920 September 7, 1921 112,468,000 6,186,000 6.554.000 6.591.000 4,582,000* 4.393.000 15.044.000 4,000,000 28.974.000 39.948.000 5,837,000* $ 224,158,000 234,577,000 $ 94,105,000 6.090.000 4.941.000 3.614.000 2,695,000* 3.566.000 10.723.000 3.700.000 22.759.000 29.998.000 4,016,000* 179,496,000 186,207,000 $ 124,101,000 7.461.000 7.360.000 6.928.000 6.196.000 19.359.000 4.280.000 27.589.000 38.992.000 $ 242,266,000 * Not included in Totals for 9 cities. Debits to Individual Account in nine clearing house centers for the week ending October 5, 1921, totaled $224,158,000, compared with a total of $242,266,000 reported from the same cities for the week ending October 6, 1920, a decline in debits for the 1921 week of 7.5%. The average decline between the tw o dates reported by 151 leading centers for the entire United States was 16.3%. As compared with the week ending September 7, 1921, the week ending October 5, 1921, shows an increase of 24.9%, “ which may,” says the Federal Reserve Board, “ be ascribed chiefly to large volume of end-of-m onth and end-of-quarter settlements effected during the week.” The national increase be tween the tw o dates mentioned was 15.2%. It will be noted that the percentage changes in both com parisons made herein show that the volume of business transactions in the Fifth District is above the national average. MONTHLY CLEARINGS. For Month of September CITIES No. 1920 1921 1 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Baltimore, Md. _______________ $ Charleston, S. C. ______ ______ Charleston, W . V a .____________ Charlotte, N. C. ______________ Columbia, S. C . _______________ Frederick, Md. _______________ Greensboro, N. C . _____________ Greenville, S. C . ______________ Hagerstown, M d .______________ Huntington, W . Va. --------------Newport News, V a . ___________ Norfolk, Va. __________________ Raleigh, N. C. ________________ Richmond, Va. ________________ Spartanburg, S. C. ___________ Washington, D. C. ___________ Totals____________________ $ 274,010,837 8,754,640 12,905,950* 10,277,091 8,061,354 1,732,487 4,758,954 6,993,800 2,525,739 6,432,671 1,515,049 25,845,458 5,832,358 158,136,667 2,997,252 66,754,029 584,628,386 j$ 419,609,008 14,216,834 $ 11,575,957 11,486,343 2,867,841 6,028,148 7,317,376 3,322,327 7,980,570 3,462,855 38,977,264 5,487,905 229,576,858 3,682,520 65,663,286 $ 831,255,092 ♦ Not Included in Totals Per Cent of Increase or Decrease increase or Decrease $ 145,598,171— 5,462,194— 34.7— 38.4— ””1,298,866— 3,424,989— 1,135,354— 1,269,194— 323,576— 796,588— 1,547,899— 1,947,806— 13,131,806— 344,453 71,440,191— 685,268— 1,090,743 lT2— 29.8— 39.6— 21.1— 4.4— 24.0— 19.4— 56.2— 33.7— 6.3 31.1— 18.6— 1.7 246,626,706— 29.7— No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 | — Denotes decrease this year. The table shows bank clearings reported by sixteen clearing* house centers in the Fifth District for the month o f September, 1921, together with comparative figures from fifteen of the cities for the corresponding month o f 1920. The table also shows the actual amount of increase or decrease in clear ings in each city, and the percentage gain or loss in September, 1921, compared with September, 1920. An examination o f the figures for the two months shows a decrease from $831,255,092 reported for September, 1920, to $584,628,386, reported for September, 1921, a decline of $246,626,706, or 29.7%. Increases were reported this year by Raleigh and Washington, but all other cities show lower figures, the greatest percentage decline being 56.2%, for Newport News, Virginia. The percentage rate of decline is approximately the same that has been reported for several months, and continues to register approximately the lowered level o f commodity prices and labor costs. BUSINESS FAILURES IN THE TW ELVE FEDERAL RESERVE DISTRICTS Number City and District Boston, F irst---------------------------New York, Second-------------------Philadelphia, Third______ ___ Cleveland, Fourth_____________ Richmond, Fifth ______________ Atlanta, Sixth_________________ Chicago, Seventh _____________ St. Louis, Eighth______________ Minneapolis, N inth_______ ____ Kansas City, Tenth____________ Dallas, Eleventh _____ ________ San Francisco, Twelfth________ Totals____________________ Liabilities Per Cent Increase 1921 1920 124 317 63 118 85 125 179 80 57 61 104 153 73 145 25 65 54 44 67 35 16 26 36 91 69.9 118.6 152.0 81.5 57.4 184.1 167.2 128.6 256.3 134.6 188.9 68.1 $ 1,466 677 116.5% $ 37,020,837 1921 2,725,247 10,439,409 978,713 2,815.406 1,692,840 2,328,764 6,777,026 2,383,404 980,471 1,042,641 2,872,281 1,984,635 1920 $ Per Cent Increase 1,360,762 14,551,283 1,417,524 1,348,681 1,646,417 500,371 5,679,728 352,873 99,730 466,451 864,924 1,265,544 100.3 28.3— 31.0— 108.8 2.8 365.4 19.3 575.4 883.1 123.5 232.1 56.8 $ 29,554,288 25.3% W e give herewith the table reported by Dun’s Review, showing the number of failures in the twelve Federal Reserve Districts for September, 1921 and 1920, with percentages of increase or de crease in both the number and the aggregate liabilities involved. The report shows 85 failures in Sep tember, 1921 in the Fifth District, compared with 54 reported in September, 1920, an increase this year o f 57.4%. In total liabilities involved, September, 1921, shows $1,692,840, compared with $1,646,417 for September, 1920, an increase o f only 2.8% this year. Am ong the twelve Reserve Districts, the Fifth District shows the lowest percentage increase in number and the third best record in total lia bilities involved. The September number of failures, 85, is the lowest reported this year, with the exception o f June, when 82 were reported, and total liabilities are lower than for any previous months this year except June and July, which were slightly lower than September. The average liability per failure in September in the Fifth District was $19,915, and in the United States was $25,252. LABOR — The labor situation in the Fifth District is little changed from the previous tw o or three months. The reports reaching- us vary widely as to unemployment, but in general it appears that there is not much more idleness than usual except in the larger cities to which labor tends to gravitate when jobs are scarce. There is much unemployment in the W est Virginia coal regions, and even the miners who are employed are w orking only part time, from two to four days a week, but the situation and the future outlook are better than they were a month ago. Construction labor is fairly well employed, but the coming o f winter makes the outlook for this class of labor somewhat proble matical. Building permits issued in September, however, appear to insure the building trades fairly steady employment for the fall months. Reports from individual cities indicate that in Richmond minor clerical and unskilled workers predominated among those applying to the Public Employment Bureau for work. Calls from employers were fewer for skilled labor, but the number of calls for clerical workers, semi-skilled workers, and common labor increased, especially for the last named. Roanoke reports labor plentiful, with the unemployment list no larger than a month ago. Labor is said to be well employed at Bristol, Virginia, Chester, S. C., R ock Hill, S. C., Winston-Salem, N. C., Greensboro, N. C., and Charleston, W . Va., but in N orfolk, Baltimore and some of the other larger cities the situation is not so encouraging. There is quite a general complaint among the workers that retail food prices have not declined in keeping with wholesale prices or wage reductions, and reduc tions in rents have been negligible. TEXTILES — The tendency toward improvement in the textile industry mentioned in our Review for August, continued during September, although the rate of increase in new business did not measure up to the increase in August over July. The Government cotton report released early in September disclosed a shorter supply of cotton than the earlier reports indicated and naturally there was a strong movement toward covering future requirements for cotton goods. The rapid increase in cotton prices, however, caused mills to be somewhat reluctant in accepting orders for future delivery, and some o f the mills either withdrew their lines from the markets entirely or named temporary prices on a higher basis. Some o f the mills also declined orders for deliveries later than the end o f this year. The higher prices set by the mills somewhat checked buying, but in spite of this tendency the mills have sufficient orders to keep them running full time, and many of them are sold out several months ahead. The manufacturers of tire yarns and fabrics appear to be getting very satisfactory orders, one large mill reporting that their business has increased 50% in the past month, and another chain o f mills reporting that they are not quoting for deliveries beyond 1921. Another large manufac turer writes that many mills have closed out nearly all their accumulated stocks and are operating at full capacity with production sold out well into the future. While prices quoted on cotton textiles have advanced with the rise in prices o f raw cotton, the mills state that their prices have not more than kept pace with the advance in raw materials, and that they are still running on a very narrow basis, with little profit to themselves. Fearing that drastic increases in quotations for textiles might have a disastrous effect upon the buying movement that is now developing steadily, the mills are showing a cautious disposition in raising their prices. CLOTHING — In the men's clothing trade, the usual seasonal activity is slow in beginning, due partly to continued warm weather and partly to a situation that has arisen between the consumers, retailers, and manufacturers, in which consumers are demanding a satisfactory suit, made o f good materials, for about $25, though the retailers claim that they cannot buy such a suit from the manu facturers at a price that will enable them to sell to the consumer for less than $40. The manufactur ers contend that the wages, cloth, sundries, and freight charges have not decreased sufficiently to en able them to produce clothing for the prices that are satisfactory to the retailers, the result being that there is marked reluctance in placing orders for future needs. In the overall trade, business is reported as good for September, though that was the first month this year in which anything like normal business has been reported. The hosiery mills are enjoying a satisfactory volume of business to keep them running full time, and this applies particularly to the mills that have made only slight advances in their prices since the recent rise in the prices for raw cotton. Reports indicate that re serve stocks in the hands of both retailers and jobbers are light, and unless advancing prices check the present buying tendency, the future in hosiery and knit goods lines appears bright. The retail shoe trade had a dull season in September, but business picked up during the latter part of the month, and is holding up remarkably well. Whether it be true or not is a question, but consumers generally think that shoe prices have reached a more reasonable level than clothing prices, a belief which has naturally caused the trade in shoes to be more active than in clothing lines. FOODS — September is usually an active month in the provision business, and this year is no ex ception, though depressed conditions in industry and unemployment in the leading cities have had a bad effect on the trade. Because of the nature of the business, however, the depression in industry and unemployment have influenced the grocery trade less than any other line. A large packing house agency reports to us that their tonnage of sales in September was equal to their tonnage in September, 1920, but writes that the money value of the products sold was much less. A large pack ing house and coffee roaster reports a tonnage sold in September far in excess of the tonnage sales in September of last year. Peanut cleaners and manufacturers report some improvement in their busi ness. but complain of freight charges, and say further that unemployment in the cities has reduced consumption of peanuts considerably. Canners of foods and fruit report that few packers operated this year, and say that wholesale grocers and jobbers are beginning to realize that there is a very small stock o f canned goods in the country. This realization has caused buying to be much more active of late, and the greater volume of orders has brought some stiffening in the prices quoted for canned goods. Some figures on food prices given out by the Department of Labor early in October are interesting. The figures show an average decrease in the cost o f all foods during the year ending September 15, 1921, amounting to 26% in Baltimore, 22% in Richmond, and 21% in W ashington, but at the same time the statement is made that retail food prices have increased since 1913 to an amount equal to 67% in Richmond, 65% in Washington, and 54% in Baltimore. COAL — For five weeks in succession, ending October 15, the production of soft coal has climbed steadily upward. During the week ending September 17, total production for the United States passed the eight million ton mark for the first time since early in June, and during the week ending October 8, the nine million ton mark was passed, for the first time since January. The rate of production is still below the average in normal years for this season, however, the usual production for October being at least eleven million tons per week in comparison with the 9,105,000 tons dug during the week ending October 8. Production for the year 1921, through October 8, is approximately 55,000,000 tons behind 1919, 106,000,000 tons behind 1920, and about 135,000,000 tons behind the war years, but con sumption for industrial purposes continues at a minimum, and therefore the shortage in stocks may not be as great as the figures indicate. The retail coal trade has been more active for the past month than previously, but there has been no marked increase. Prices have remained stationary in the re tail trade. TOBACCO — The bright tobacco crop is being marketed steadily on the North Carolina and V ir ginia markets. The crop is short, as forecasted in Federal and State government reports earlier in the season, but the prices realized for the tobacco seem to be fairly satisfactory to the growers. Prices have shown a rising tendency as the selling advanced, largely due to better grades coming on the floor. Th e grades from medium to fine are bought eagerly, and at prices that have on a few markets run as high as $60 to $70 per hundred pounds, but the prices offered for the common tobacco have continued low, and tend to keep down the market averages. Averages are running somewhat above $20.00 per hundred on most markets. The leaf dealers report an active business, especially for cigarette and smoking tobacco, and manufacturers are receiving their usual business for domestic consumption, but are not yet doing any appreciable foreign business. A tendency toward lower prices for manufactured goods is noticed, chiefly through the introduction of new brands of cigarettes and cigars offered in competition with the already established goods. COTTON — In our August Review, compiled as of September 15, we told of the rapid increase in cotton prices follow ing the Government report of a condition of 49.3%, writh an expected yield of 7,037,000 bales. On September 15, the average spot prices on reporting markets in North and South Carolina was 19.48 cents, middling basis, and the price fluctuated around that point until the close of the month, the highest price, 20.3 cents, being reached on September 28. Early in October the Government's final condition report for the season was issued, giving the condition as of September 25, as 42.2% of normal, with a forecast of production of 6,537,000 bales. Anticipating a more un favorable condition report than the above mentioned one, the market had previously discounted a loss of approximately a million bales from the August 25 report, and a reduction of only half a million bales caught the market over-bought, with a resulting liquidation that has slowly driven prices down about tw o cents below the average of 20.30 cents, reached on the Carolina markets on September 28. To the depressing effect of this report that was considered somewdiat bearish, has been added the disturbing influence of the threatened traffic tie-up, resulting in violent fluctuations and nervous movements through a range of approximately one cent. The crop is opening very rapidly, and reports indicate that by November 1, practically all of it will be open, and most of it picked. The top crop is disappointing, and boll weevil damage in South Carolina has been even more serious than appeared probable earlier in the season. The farmers are selling quite freely on the rises that touch twenty cents, but appear reluctant to sell for less. There is some disposition to hold for higher prices, but in the main the farmers appear to feel that, in view of the economy with which the crop was made this year, they can afford to sell at anything above twenty cents. BUILDING OPERATIONS FOR THE MONTHS OF SEPTEMBER, 1921 AND 1920 Permit s Issued New Construction C IT IE S o 1921 1920 fc Alterations Repairs New 1921 1920 1921 1920 1921 1920 Increase or Per Cent, Decrease, of Total Increaae Valuation or o Decrease fc M aryland 1 Baltim ore................... 2 Cumberland............... 3 Frederick.................. 358 27 1 339 1,229 12 21 1 0 809 $2,074,600 $ 290,700 $ 500,000 $ 242,700 $2,041,200 125,305 18 46,851 11,630 8,875 81,209 0 1,300 70 1,230 0 0 4 72 51 *61 4 15 72 120 6 26,425 6 1,495,202 122 687,111 *392,315 1 6,875 36 *82 16 1 2 3 382.7 145.7 1,757.1 V irginia 16 4 Lynchburg................ 28 5 Norfolk..................... 6 Richmond................. 126 7 Roanoke.................... *140 3 8 Staunton..................... W est V irginia 9 C h a r le s to n ............... 81 10 Huntington............. *125 11 Parkersburg............. N orth C arolina 12 Asheville .................. 13 Charlotte................... 14 D u r h a m .................... 15 16 17 18 Greensboro ............. High Point................ Wilmington................ Winston-Salem.......... South Carolina 19 Charleston................. 20 Colum bia................... 21 Greenville................. 22 Spartanburg.............. D ist . of 62 54 35 42 32 23 57 44 22 9 27 *20 12 19 38 5 8 19 4 6 80 21 35 38 34 22 8 18 16 14 11 26 27 369 118 162 C olumbia 23 Washington.............. 3 1,075 232,240 65,004 *70,145 1,950 4,300 37,828 99, 786 404,289 *157,434 2% 000 137,335 *230,147 40,000 8, 750 2,900 15,000 20,000 33,860 392,650 36,500 54,861 *30,825 338,000 49,700 20,312 5,000 5,625 15,825 575 11,100 21,501 6,283 1,800 5,550 7, 400 58 229,406 309,495 53,910 296, 675 62, 675 87,200 133,245 12 64 17 18 173, 302 135,192 114, 325 84,385 74,394 56,500 102,975 10,425 8, 405 21,492 12, 530 3, 948 425 1, 634, 6G0 2,740, 680 207, 284 7 14 5 9 2 ” 8 1,550 27,850 1,800 6,440 1,294,350 102, 689 619, 204 322,170 1,000 5,475 5 6 7 8 272,804 72,713— 20,000— 194.5 9 31.6— 10 33.3— 11 19,000 13,399 209,572 79,955— 17,485 250,239 32, 425 258,700— 91,647 522.0 12 20.3— 13 41.6 14 401.9 15 105.2 16 72.5— 17 145.2 18 24,780 23,655 15,660 13,270 82, 533 76,‘529 8, 220 64, 618 857,438 1, 756,174— Totals........... 1707 1,000 1,876 1,601 $8,710,306 $5,036,887 $1,012,441 $1,374,642 $3,311,218 ^Includes both new and repairs. 4 968.7 542.3 369.2 459.3 185.6 83.2 95.5 6.9 272.7 19 20 21 22 48.8— 23 51.6% —Denotes decrease. Permits for new construction issued in twenty-three of the leading cities of the Fifth District during September, 1921, totaled 1,707, compared with 1,000 issued in the same cities in September, 1920, a gain this year of 707 permits, or 70.7%. Total valuation of new work provided for in Sep tember amounted to $8,710,306, compared with $5,036,887 for September, 1920, an increase this year of $3,673,419, or 72.9%. Permits for alterations and repairs issued in September, 1921, totaled 1,876, compared with 1,601 in September, 1920, an increase this year of 275, or 17.2%. Total valuation for repair work in September, 1921, totaled $1,012,441, compared with $1,374,642 in September, 1920, a loss this year of $362,201, or 26.3%. In combined valuation for both new work and alterations or repairs, September, 1921, witnessed a total o f $9,722,747, compared with $6,411,529 in September, 1920, an increase this year of $3,311,218, or 51.6%. The record for the month is very gratifying, in that the number of permits issued for new con struction is higher than was reported for any month this year except March, and that month was only 11 permits ahead o f the September number. The number issued in September was greater than during any month of 1920, and greater than during any month of 1919, except June and July. The new work provided for consists chiefly o f dwellings and private garages. Baltimore reports 94 tw o-story brick dwellings, 73 tw o-story frame dwellings, and 1 four-story apartment house. Lynch burg reports 8 residences. Richmond reports 50 dwellings. Charleston, W . Va., reports 42 dwellings and 1 apartment house. Durham, N. C., reports 85% of building work to be small residences. Charleston, S. C., reports most of the work there for dwellings. In the reporting cities a large num ber o f additional dwellings are being built outside the city limits, these not showing in the permits issued by city authorities. Business in the building material field is fairly active, and reporters write that indications are bright for the future. Lumber is in better demand than in recent months, and a rising tendency in its price is mentioned in several letters from dealers. A prominent manufacturer of hardwood millwork reports a considerable gain in orders, especially from New England, northern New Jersey and around New York. Builders’ hardware is in demand for residence work, and brick dealers report some increase in orders. The railroads have not yet entered the market to any extent, which^ is said to be delaying the return to normal in building and construction material lines. Complaint against existing freight rates is heard on every side in the building material field. FIGURES ON RETAIL TRADE. As Indicated By Reports from Twenty-Five Representative Department Stores for the Month of September 1921. Baltimore Richmond Washington Other Cities District Percentage decrease in net sales during September under sales in September 1920 ________ _____ ___________________ —18.9 —12.9 — 11.8 — 19.8 —16.2 Percentage decrease in net sales from July 1 through September, under sales during the same three months of 1920_ —17.8 —11.7 — 6.1 — 13.0 —12.7 Percentage increase in net sales during September 1921 over sales in August 1921 __________________________________ 18.4 21.4 2.3 1.0 10.3 Percentage decrease in stocks on hand at the end of September under stocks on hand at the end of September 1920__ —21.1 —13.5 —17.5 —13.8 —17.9 Percentage increase in stocks on hand at the end of September over stocks on hand at the end of August 1921_______ 17.4 15.4 11.8 17.0 16.8 Percentage of average stocks on hand at the end of each month since July 1, 1921, to average monthly sales during the same three months_______________ 477.9 460.2 481.4 553.9 490.4 Percentage of outstanding orders at the end of September 1921 to total pur chases of merchandise during the calen dar year 1920_________________________ 7.9 12.7 6.4 6.3 7.7 N — Denotes decrease. Confidential reports received at the end o f September from twenty-five of the leading depart ment and general stores in the Fifth District show a decrease in the dollar value o f sales during that month in comparison with sales during September, 1920, amounting to 16.2%, the greatest decrease reported for any month this year in comparison with the corresponding month of 1920. Sales in September of this year were 10.3% greater than sales in August, however, but this is largely a sea sonal increase, as fall buying gets under way. In comparison with the cumulative sales from the first of July through the end of September, the three months this year show a decrease o f 12.7% under sales during the same three months of 1920. The selling value o f stocks on hand at the end of September was 17.9% less than stocks on hand at the same time last year, but 16.8% greater than the value of stocks on hand at the end o f August, 1921, a natural increase at this season of the year. The average value of stocks on hand during the three months since July 1, 1921, was 490.4% of average monthly sales during the same three months, the highest figure shown for any similar period this year, which would seem to indicate that the retailers are becom ing somewhat more confident of the stability of values and are. therefore grad ually increasing their stocks over the low point reached last spring. Outstanding orders for merchandise at the end of September, 1921, amounted to 7.7% o f total purchases o f merchandise during the calendar year 1920, but this figure is not quite as significant this season as in normal years, because retailers are buying a large part of their goods for immediate de livery and are placing as few orders for future delivery as possible. REPORT ON WHOLESALE TRADE. Net LINES SOLD _ — in September, 1921, Compared with Sales in August 1921 Sales in September 1920 7.5% 8.1 — 0.5 10.3 2.7 —30.5% — 3.4 18.5 —31.4 4.0 6.0% —13.3% Groceries (9)* --------------------------------------------------- j Dry Goods (7)*-------------------------------------------------- ! Shoes (8)* _ _____ -------- - -------- ! Hardware (19)* _ - — - — Furniture (23)*__ __________ ______ _______ ! Total Averages (66)*_ _ _ __ Sales ! *Number of reporting firms. The confidential reports on wholesale trade received from dealers in groceries, dry goods, boots and shoes, hardware and furniture for the month of September reflect the improved situation in the business activity of the Fifth District. All lines reported upon show increased sales over the preced ing month except boots and shoes, in which line sales wrere practically the same in September and August. In comparison with the corresponding month of last year, the September sales show up better than any previous month in 1921, the average for all lines reported upon being only 13.3% less than September, 1920, sales. The dollar value of business done in dry goods during September, amounted to only 3.4% less than in September, 1920. Boots and shoes sales were 18.5% greater than in September, 1920, and furniture sales were 4% greater this September than last. The grocery and hardware sales probably reflect the price declines since September, 1920. W e increased the number o f reporting furniture factories and jobbers during September, and the averages given herewith were made up from twenty-three reports. The follow ing table shows how the sixty-six wholesale firms classified their collections during September, 1921: Lines Sold Good Groceries _________________________ ___ 2 Dry G ood s________________________ ___ 2 Boot and S h o e s___________________ ___ 0 H ardw are_________________________ ___ 2 Furniture_________________________ ___ 3 TOTALS___________ ___ 9 Fair 6 5 7 14 16 48 (Compiled October 17, 1921) Slow Poor 1 0 0 0 1 0 2 1 4 0 8 1 Total 9 7 8 19 23 66