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MONTHLY
REVIEW
BUSINESS AND AGRICULTURAL CONDITIONS
WILLIAM W. HOXTON, CHAIRMAN AND FEDERAL RESERVE AGENT
SEPTEMBER 30, 1926
RICHMOND, VIRGINIA
DISTRICT SUMMARY — August business in the Fifth
Federal Reserve District was up to seasonal average, and
on the whole prospects for the balance of the year seem
to have improved during the month. A moderate expansion
in loans to customers by member banks and a seasonal rise
in the circulation of Federal Reserve notes show that fall
trade is opening normally. Labor continues well employed,
assuring a large purchasing power for the next few months.
The failure record for the District compared favorably in
August with the record of last August and with other re
cent months. Coal production is very large as a result of
seasonal demand in this country and' the influence of the
British coal strike abroad. Textile mills are still operating
from hand to mouth, but stocks have been kept low. Valu
ation figures for building permits issued in August in twentyeight Fifth District cities exceeded the figures for all other
months this year except March, and were 41 per cent larger
than in August 1925. Official estimates on this year’s
cotton crop indicate increased production in both Carolinas
but the season is late and the crop is subject to serious
damage by an early frost and prices are lower than a year
ago. The tobacco crop of the Fifth District promises to
be a very profitable one. Although crops are generally
somewhat later than usual, the entire agricultural situation
in the District is distinctly improved over last year and
last month, with probably greatest improvement over 1925
in South Carolina and least improvement in Maryland.
Wholesale trade developed seasonally in August and com
pared fairly well with trade in August 1925, while depart
ment store sales in August exceeded sales in August 1925
by nearly 7 per cent. Collections were slower than in July,
but this is a seasonal development. Contrary to these de
velopments, however, debits to individual accounts during
the four weeks ended September 8th were below aggregate
debits for the corresponding period of the preceding year
for the first time in two years.
R ESER V E BANK OPERATIONS— Increased demands
for funds incident to crop marketing swelled the volume of
Reserve bank credit extended’ to member banks in the Fifth
District during the past month, the volume of rediscounts
held by the Federal Reserve Bank of Richmond rising from
$43,510,000 on August 15th to $46,014,000 on September
15th. Crop marketing requires a relatively large amount
of cash in comparison with the total volume of business,
and the volume of Federal Reserve notes in actual circula
tion rose between the middle of August and the middle of
September from $72,296,000 to $76,099,000. Total bill hold
ings of the Federal Reserve Bank of Richmond advanced
from $55,415,000 on August 15th to $57,306,000 on September
15th. Member banks in the Fifth District increased their
reserve deposits at the Reserve bank during the month under
review from $65,753,000 to $67,873,000. As a result of the
changes mentioned, with some reduction in Government
security holdings by the Reserve bank, the cash reserves
of the Federal Reserve Bank of Richmond rose from $84,902,000 on August 15th to $90,499,000 on September 15th,
and between the same dates the ratio of cash reserves to
note and deposit liabilities combined rose from 59.81 per
cent to 62.57 per cent.
The usual early fall increase in Reserve bank credit has
thus far been slightly less marked than a year ago, prob
ably due to the lateness of this year’s leading money crops.
The volume of rediscounts for member banks held by the
Federal Reserve Bank of Richmond at the middle of Sep
tember last year totaled $53,924,000, but on September 15th
this year totaled only $46,014,000. The circulation of Fed
eral Reserve notes, however, increased slightly during the
year, rising from $75,758,000 on September 15, 1925, to
$76,099,000 on September 15, 1926. Total bill holdings of
the Federal Reserve Bank of Richmond declined’ during
the year from $58,577,000 to $57,906,000, an increase in
bankers acceptances purchased in the open market partly
offsetting the decline in rediscounts for member banks.
Reserve deposits of member banks rose from $63,750,000
on September 15, 1925, to $67,873,000 on September 15,
1926, an increase partly due to higher reserve requirements
because of increased deposits and partly due to the easier
position occupied this year by the member banks. The
cash reserves of the Federal Reserve Bank of Richmond
stood at $81,703,000 on September 15th last year, but rose
to $90,499,000 at the middle of September this year, and
the ratio of cash to note and deposit liabilities combined
increased during the same period from 58.17 per cent to
62.57 Per cent-
The National Summary will be found on page 8
CONDITION OF SIXTY-EIGHT REPORTING MEMBER BANKS IN SELECTED CITIES
ITEMS
1. Total Loans and Discounts (including
all rediscounts) ......................................
2. Total Investments in Bonds and Se
curities ......................................................
3. Reserve Balance with Federal Reserve
Bank
......................................................
4. Cash in Vaults..............................................
5. Demand Deposits ........................................
6. Time Deposits ............................................
7. Borrowed from Federal Reserve Bank....
Sept. 15, 1926
Aug. 18, 1926
Sept. 16, 1925
$ 520,485,000
$ 514,930,000
$ 515,230,000
140.049.000
141,629,000
130,532,000
41.766.000
14.061.000
381.731.000
209.232.000
22.247.000
41,962,000
13,589,000
375,455,000
209,825,000
17,567,000
38,607,000
13,823,000
365,518,000
198,324,000
24,895,000
In the accompanying table, the principal items of condition reported by sixty-eight regularly re
porting member banks in thirteen leading cities of the Fifth District are shown, figures being included
as of the close of business September 15, 1926, August 18, 1926, and September 16, 1925. Thus an
opportunity is offered to compare the figures reported on the latest available date with those of the
preceding month this year and the corresponding date a year ago. It should be understood that the
figures mentioned refer to the report dates only, and are not necessarily the highest or lowest fig
ures that occurred between the dates compared.
Between August 18th and September 15th, both this year, total loans and discounts to customers
of the sixty-eight reporting banks rose from $514,930,000 to $520,485,000, a seasonal increase due
partly to loans for crop m arketing and partly to commercial loans to merchants in connection with
their receipt of fall merchandise. Total investments in bonds and other securities declined during the
month from $141,629,000 to $140,049,000, and the reserve balances of the reporting banks at the R e
serve bank declined from a total of $41,962,000 to $41,766,000. Cash in vaults increased slightly, rising
from $13,589,000 on August 18th to $14,061,000 on September 15th. Demand deposits rose from
$375,455,ooo to $381,731,000 between August 18th and September 15th, chiefly as a result of the in
creased loans to customers, but time deposits declined during the same period from $209,825,000 to
$209,232,000. The increase in loans to customers necessitated further rediscounting at the Reserve
bank, and the total borrowing of the sixty-eight member banks at the Federal Reserve Bank of Rich
mond rose from $17,567,000 on August 18th to $22,247,000 on September 15th.
A comparison of the figures reported on September 15, 1926, with those as of September 16, 1925,
shows the banks to be in a stronger position this year. Loans to customers on September 15th this
year totaled $520,485,000, compared with $515,230,000 on September 16th last year, and total invest
ments in bonds and securities aggregated $140,049,000 this year in comparison with $130,532,000 at the
middle of September last year. A ggregate reserve balances at the Reserve bank and cash in vaults
stood at $41,766,000 and $14,061,000, respectively, on September 15, 1926, compared with a reserve bal
ance of $38,607,000 and cash in vaults totaling $13,823,000 on September 16, 1925. Demand deposits
totaled $381,731,000 on September 15th this year and $365,518,000 on September 16th last year, and
time deposits rose during the year to $209,232,000 from $198,324,000 reported at the middle of Sep
tember 1925. Borrowing by the sixty-eight reporting banks at the Federal Reserve Bank of Rich
mond totaled $22,247,000 on September 15, 1926, compared with $24,895,000 on September 16, 1925.
SAVINGS DEPOSITS—A ggregate deposits in fourteen regularly reporting mutual savings banks
in Baltimore declined slightly last month, but the decrease was less than usually occurs during A u
gust. Deposits dropped from $155,255,756 on Ju ly 31st to $155,189,787 on August 31st. A year ago,
on August 31, 1925, aggregate deposits in the fourteen banks totaled $149,571,500. Time deposits in
sixty-eight reporting member banks also declined last month, decreasing from $209,825,000 at the
close of business August 18th to $209,232,000 on September 15th, but on the latter date were m ate
rially above the total of $198,324,000 in time deposits reported by the same banks on September
16, 1925.
DEBITS TO INDIVIDUAL ACCOUNTS IN LEADING TRADE CENTERS
The accompanying table shows the total of debits to individual, firm and corporation accounts in
the leading trade centers of the Fifth Federal Reserve District for three equal periods of four weeks,
ended September 8th and August 11, 1926, and September 9, 1925. The figures for the latest avail
able four weeks period, ended September 8th, may be compared with those reported for the preced
ing four weeks ended August n th this year and with those for the corresponding four weeks ended
September 9, 1925. The period ended Sepember 8th this year contained one business day less than
the period ended August n th , the Labor Day holiday occurring on September 6th.
A ggregate debits of $1,085,367,000 in the reporting banks during the four weeks ended September
8th show a somewhat larger decline under the total of $1,191,599,000 reported for the like period
2
TOTAL DEBITS FOR THE FOUR W EEKS ENDING
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..........
Sept. 8, 1926
$
31, 822,000
341,878,000
23,525,000
30,892,000
41,269,000
15,586,000
7,243,000
6,328,000
27,049,000
21,401,000
15,240,000
9,376,000
22,568,000
15,687,000
9,721,000
63,287,000
16,537,000
117,277,000
25,611,000
10,205,000
184,836,000
16,463,000
31,566,000
$1,085,367,000
Aug. 11, 1926
$
34,603,000
386,570,000
21,405,000
31,385,000
42,750,000
16,523,000
8,073,000
8,247,000
23,434,000
21,331,000
18,564,000
9,828,000
22,344,000
16,607,000
18,960,000
71,663,000
23,332,000
115,847,000
26,199,000
10,798,000
214,126,000
16,837,000
32,173,000
$1,191,599,000
Sept. 9, 1925
$
26,356,000
379,484,000
24.199.000
31.854.000
38,211,000
16,342,000
7,705,000
7,701,000
23,711,000
17,361,000
17,350,000
9,404,000
23,231,000
18,259,000
6,900,000
55,032,000
20,082,000
128,448,000
22,477,000
11,409,000
183,090,000
15,946,000
27,979,000
$1,112,531,000
ended August n th than is usual at this season, but the relatively large decrease is possibly due to
the late agricultural season, which is delaying the m arketing of important crops, especially cotton.
Eighteen of the twenty-three reporting cities show lower figures for the more recent weeks. A con
siderable part of the decline was of course due to the shorter period covered, the Labor D ay holiday
reducing the actual number of business days during the more recent period from 24 to 23 days, a de
cline of more than 4 per cent.
A ggregate debits of $1,122,531,000 during the four weeks ended September 9, 1925, exceeded the
total of $1,085,367,000 reported for the corresponding period ended September 8th this year. The
1926 period was the first one to fall below the corresponding period of the preceding year since the
fall of 1924. Thirteen cities reported lower figures this year, while ten showed higher totals.
BUSINESS FAILURES— “ Extending the improvement of the four immediately preceding months,
commercial failures in the United States for August show a further reduction,” according to Dun's
Review oi September 4th. “ The number of defaults reported for August is 1,593, which is slightly be
low the Ju ly total of 1,605 and compares with 1,708 insolvencies in Ju ne 1,730 in M ay and 1,957 in
April. It was during the latter month that the progressive decrease in number of iailures began, the
March aggregate being 1,984. The August defaults show some numerical increase over those for the
corresponding month of 1925, when the total was 1,513, and also are in excess of the number for A u
gust of both 1924 and 1923. The present showing is, however, relatively satisfactory when the larger
number of firms in business now is considered. Not only is the number of insolvencies for August
less than that for recent preceding months, but the liabilities are also smaller. The indebtedness of
$28,129,660 reported last month compares with $29,680,008 in Ju ly , about $29,400,000 in June, fully
$33,500,000 in M ay and approximately $38,500,000 in April. The high point of the year was $43,661,444
last January. Moreover, last month's liabilities, despite the increased number of failures, is mate
rially below the $37,158,861 of August 1925, and is, in fact, less than the amounts for August of all
years since 1919, when the commercial m ortality w as at an unusually low level.”
There were 107 business failures in the Fifth District in August, with liabilities totaling $1,438,713,
compared with 98 failures and $1,565,924 in liabilities in August 1925. A ggregate liabilities in August
were the lowest reported for any month since September 1924, and were the lowest August figures
since 1920.
COAL— Bituminous coal production in August totaled 46,352,000 net tons, compared with 43,472,000 tons mined in Ju ly and 41,992,000 tons in June. Total production this calendar year to Sep
tember n th was 374,753,000 net tons, compared with 336,108,000 tons produced during the same
period last year. The increase this year is due to two factors, one the anthracite strike which in
creased the demand for bituminous coal in the early months of the year, and the other the con
tinuation of the British coal strike, which m aterially increased foreign demands for American coal dur
3
ing recent months. Nearly 9,000,000 tons of coal were exported prior to September 1st, of which over
6,000,000 tons were shipped through Hampton Roads. Including coastwise shipments and bunker
coal, Hampton Roads handled 17,794,072 net tons between Jan u ary 1st and August 31st this year,
compared with 14,061,275 tons handled during the corresponding eight months in 1925. Retail coal
yards are busy filling orders, but coal in all sizes and quantity is immediately available. Prices have
been practically stationary since the first advances of the fall season went into effect six weeks or two
months ago.
TEXTILES—Reports from cotton mill executives early in September were more optimistic
in tone than in recent months, although curtailment of operations continues and nearly all buying is
□f the hand to mouth sort. Our correspondents nearly all profess to see somewhat brighter prospects
for fall and winter business, however, and mills are keeping stocks of manufactured goods low. The
Southern Y arn Spinners Association reports more numerous inquiries and considerable interest in
spots and near-by deliveries. The Association reports buyers having increased difficulty in filling
their needs. Cotton consumption in the Fifth District mills totaled 205,019 bales in August, compared
with 195,944 bales used in Ju ly this year and 170,194 bales in August 1925. North Carolina and V ir
ginia mills consumed less cotton in Augu$t than in Ju ly, but South Carolina mills used over 10,000
bales more during the later month. Total consumption in August in the Fifth District was 41 per
cent of National consumption and 57 per cent of consumption in cotton grow ing states.
BUILDING OPERATIONS FOR THE MONTHS OF AUGUST 1926 AND 1925.
Premits Issued
0
CITIES
z
: New
Repairs
1926 1925
1 Baltimore, Md. ... 501
Cumberland, Md...
28
4
3 Frederick, Md. ...
19
4 Hagerstown, Md...
9
5 Danville Va..........
30
6 Lynchburg, Va....
56
7 Norfolk, Va.
5
8 Petersburg, Va.....
92
9 Richmond, Va. ...
86
10 Roanoke, Va.
13
11 Bluefield, W. Va...
18
12 Charleston, W. Va.
17
13 Clarksburg, W. Va
14 Huntington, W.Va. * 60
21
15 Parkersburg,W.Va
54
16 Asheville, N. C.....
42
17 Charlotte, N. C__
20
18 Durham, N. C. ...
51
19 Greensboro, N. C.
62
20 High Point, N. C...
21 Raleigh, N. C.......
48
10
22 Salisbury, N. C.....
8
23 Wilmington, N. C.
94
24 Winston-Salem, N. C.
22
25 Charleston, S. C ...
17
26 Columbia, S. C.....
12
27 Greenville, S. C.....
25
28 Spartanburg, S. C.
29 Washington, D. C. 338
! NV»w■fY»netriir»f-inr»
1926
1925
1926
1925
1926
1925
679 1,278 1,157 $ 5,624.880 $ 5,686,320 $1,471,800 $
23
10
10
46,860
10,975
56,827
10
3
2
31,445
9,895
1,690
32
4
1,065
7
135,265
50,990
732,726
13
717,841
17
13
34,837
30
21
18,860
20,297
13
66,170
135
26,388
65
53
78,985
257,213
4
13,390
3
8
5,650
25,440
125
64
73
83,490
547,035
441,365
81
33
31
145,290
9,570
1,054,237
6,065
13
6
2
107,554
18,592
24,800
16
25
7
64,030
88,118
12
4,965
22
17
37,650
37,130
*
1
* 270,484
*
1,500
2,050
26
6
10
130,500
94,125
46
38
347,955
21,005
43
253,400
27,920
53
20
13
683,110
806,220
16
21,725
36
13
117,340
164,785
37
33
186,414
59,480
45
237,420
14,050
67
7
7
269,515
195,025
12
11
6,725
223,795
55
133,134
21
13
3
2,100
22,625
50,150
11
10
10,800
9
17,100
38,250
53
38
67
566,865
65,650
235,160
44
11,470
9
31
14,570
18,650
11,250
37
40
43,350
23
209,329
36
28,465
10
16
88,550
72,200
27
25
20
69,900
104,198
18,215
182
477
523 8,549,640
5,463,640
422,435
Totals.......... 1,702 1,829 2,349 2,258 $19,751,368 $15,044,026
$3,130,561
—Denotes decrease
* Huntington’s figures not included in totals.
NOTE-- The figures in the above table reflect the amount of work provide^
cities, but take no account of suburban developments.
Increase or Per Cent
Decrease
of
of
Increase 0
Total
or
Z
Valuation Decrease
222,840 $ 1,187,520
20.1 <jo 1
15,042
5,900
28.5
2
i,250 — 21,110 — 64.6
3
82,015
3,325
151.0
4
1,404,900 3,076.4
10,830
5
31,650
35,957
71.2
6
24,737 — 176,577 — 62.6
7
32,460
720
51.0
8
125,724 — 147,904 — 22.0
9
906,622
11,895
576.8 10
15,150
79,877 236.7 11
5,338 — 5.7 12
6,050 —
8,050 —
2,565 — 5.7 13
14
33,610
4,815
34.0 15
11,363
104,197
39.4 16
13,270 — 108,460 — 13.2 17
24,225 — 49,945 — 26.4 18
25,508 — 17,034 — 6.5 19
7,200
81,340
40.2 20
8,075
89,311
63.2 21
7,836 — 33,261 — 57.4' 22
11,700 — 22,050 — 44.1 23
49,031
348,324
122.6 24
3,822 — 12.8 25
11,212 —
11,335 — 166,064 — 75.3 26
28,755
16,060
32.6 27
3,883 — 19,966 — 18.5 28
3,007,960
500,475
50.4 29
$1,174,109 $ 6,663,794
41.19b
in the corporation limits of the several
The number of building permits issued in twenty-eight leading Fifth District cities in August
was lower than in either Ju ly this year or August last year, but valuation figures, chiefly due to large
gains in Baltimore, Danville, Roanoke and Washington, exceeded the figures of August 1925 and were
above all earlier months this year except March. Perm its for new construction in August totaled
1,702 with estimated valuation of $19,751,368, compared with 1,829 permits and $15,044,026 valuation
for similar work in August last year. Alteration and repair permits issued in August totaled 2,349,
with the very high valuation total of $3,130,561, compared with 2,258 permits and $1,174,109 in August
1925. Combined valuation for all classes of work totaled $22,881,929 in August 1926 and $16,218,135 in
August 1925, an increase this year of $6,663,794, or 4 1.1 per cent. In addition to the large gains men
4
tioned above, Hagerstown, Bluefield and Winston-Salem each reported valuation figures more than
100 per cent above those of August 1925.
COTTON—According to figures gathered by the Cotton Quotation Service of the Department of
Agriculture, spot cotton prices in the Carolinas declined nearly 2 cents per pound between August
14th and September 18th. During the week ended August 14th, the average price paid grow ers for
middling cotton was 17.90 cents per pound, but in the next five weeks the averages were respectively
16.93 cents, 17.36 cents, 17.43 cents, 17.26 cents and 16 ,0 1-cents,-the latter average for the week ended
September 18th being the lowest price reported since February n , 1922.
Cotton consumption in American mills in August totaled 500,652 bales, exceeding the total of
460,918 bales used in Ju ly this year and 448,665 bales in August 1925. The Census Bureau’s con
sumption report as of September 1st, issued on September 14th, reports cotton on hand in manufac
turing establishments at the end of August as 920,944 bales, compared with 1,096,521 bales so held on
Ju ly 3 1st this year and 680,527 bales on August 31, 1925. A t the end of August, public warehouses
and compresses held 1,715,593 bales, compared with 1,936,662 bales on Ju ly 31, 1926, and 1,040,178 bales
on August 31, 1925. Spindles active in August numbered 31,321,936, compared with 31,082,482 in Ju ly
this year and 31,269,774 in August a year ago. Cotton exported amounted to 391,329 bales in August
1926, compared with 365,522 bales sent abroad in Ju ly 1926 and 315,825 bales in August 1925. August
imports also increased, rising to 13,280 bales from 12,090 bales imported in Ju ly this year and 9,266
bales received from over seas in August last year. Cotton consumed in cotton grow ing states totaled
359,708 bales in August, 334,752 bales in Ju ly , and 302,604 bales in August 1925.
In our Review last month we discussed the Department of Agriculture’s cotton condition report as
of August 1st, at which time a condition of 69.8 per cent was expected to result in a production for
1926 of 15,621,000 bales. The reports of August 16th and September 1st indicated considerable deteri
oration in crop prospects, however, and forecast figures were lowered to 15,248,000 bales on August
1 6th and 15,166,000 bales on September 1st. The first half of September was generally favorable for
cotton development, however, and the Department’s report as of September 16th estimated the condi
tion at 59.5 per cent and the probable production as 15,810,000 bales, only 294,000 bales under the large
crop of 16,104,000 bales ginned in 1925.
The Census Bureau’s ginning report to September 16th shows how late the crop is this year and
clearly indicates the unusual hazards the crop still has to overcome. Ginnings to September 16th this
year of 2 ,5 11,3 17 bales compares with 4,282,066 bales in 1925 and 2,665,793 bales in 1924 ginned prior
to the middle of September.
During August and early September prospects for cotton improved in South Carolina, the condi
tion figure rising from 53 per cent on August 1st to 55 per cent on September 16th, but North Caro
lina’s condition declined between August 1st and September 16th from 70 per cent to 69 per cent and
Virginia’s condition dropped from 72 per cent to 66 per cent. South Carolina’s probable production
this year is 1,057,000 bales, compared with 889,000 bales ginned last year. The crop in the middle belt
and in the south and east is better than last year, and the improvement since the middle of August
in the upper counties of South Carolina appears to indicate a larger crop there also, but much of the
cotton in that section is very late, is poorly fruited, and is dependent upon favorable weather to an
unusual degree. North Carolina’s crop estimate on September 16th, was 1,199,000 bales, compared
with 1,102,000 bales grown in 1925. The crop is from two to three weeks late, and insect damage
and shedding are noticeable. W eevils did comparatively little damage prior to September, but may
do serious harm to the late crop before the end of the season. V irginia’s prospective yield of 47,000
bales compares unfavorably with 53,000 bales produced in 1925. The crop has improved somewhat
since the August rains, but the growth is backward and the crop is so late that much of it is in danger
of an early frost. The crop is fully two weeks later than last' year.
TOBACCO— SO UTH C A R O LIN A tobacco markets sold 20,787,591 pounds of producer’s tobacco in
August at an average price of $24.89 per hundred pounds, compared with 23,238,117 pounds sold for
$17.81 per hundred in August 1925. The crop this year is estimated at 57,548,000 pounds, about 13,000,000 pounds less than the crop last year, but if August prices are maintained the balance of the
season this yea r’s crop will probably exceed last year’s crop in value between two and three million
dollars.
NO RTH C A R O LIN A had only seven m arkets open in August. Sales for grow ers totaled 9,983,519 pounds, at an average of $24.78 per hundred pounds, compared with 11,8 12,18 8 pounds for $18.23
per hundred sold on the same m arkets in August 1925. M arkets in the New Bright belt opened on
September 7th, and prices were from 35 to 50 per cent above those of last year, some scattered piles
selling as high as 100 per cent above 1925 prices.
V IR G IN IA m arkets are not yet open. Tobacco improved distinctly during the latter half of A u
gust/and on September 1st a crop of 135,626,000 pounds was forecast, compared with 129,497,000 pounds
5
grown in 1925. The greatest improvement was in the Bright crop, although the prospects in the Dark
and Sun-cured sections are also quite encouraging. Bright tobacco is of exceptionally good quality
this year, and Sun-cured is ab6ve the average, but in the Dark belt much of the leaf is large arid
coarse, so the quality will not equal that of the Bright types.
AGRICULTURAL NOTES— M A R Y L A N D . H eavy rains in August hurt M aryland peaches,
melons, shocked grain, tomatoes and tobacco, but helped late corn, potatoes and grasses. Most crops
are below their ten year average of condition. On the whole, M aryland’s agricultural prospects ap
pear below those of 1925, although prospective yields this year of potatoes, sweet potatoes, tobacco,
apples, peaches and pears are above those of last year. Tomatoes for canning indicate only about 50
per cent of a normal yield and in the big producing areas on the Eastern Shore are ripening very slow
ly, with considerable scalding and rotting.
V IR G IN IA crops all improved after the rains of the latter half of August, and prospects on Sep
tember 1st were for larger yields in nearly all crops than last year. Corn prospects are now excel
lent, a crop of 44,212,000 bushels forecast this year comparing with 36,058,000 bushels harvested in
1925. The oat crop turned out above expectations, the heads being well filled. The oat straw was
quite short, however, and a large part of the crop had to be cut for hay. Late potatoes improved
slightly during late August and early September, but prospects are still below the average. The total
yield of potatoes this year is forecast at 11,934,000 bushels, compared with 11,340,000 bushels last
year. Sw eet potatoes made considerable improvement during the latter half of August, and a fair crop
is expected. The commercial crop is later than usual, however. A production of 5,120,000 bushels is
predicted this year, compared with 3,996,000 bushels gathered in 1925, most of the increase being due
to increased plantings. Total production of hay this year is expected to be 884,000 tons, compared with
768.000 tons last year. Pastures improved wonderfully between August 15th and September 15th, and
are now in excellent condition. Good fall grazing appears assured. The commercial apple crop in
Virginia is expected to amount to 3,325,000 barrels, compared with 1,400,000 barrels last year and
1.478.000 barrels the average production during the five years 1921-1925. Most orchards have unusual
ly heavy crops of apples, although occasionally some are found which bore heavily last year that have a
light set of fruit. The season is later than last year, consequently harvest will be delayed from ten
days to two weeks. The apple m arket has been very slow developing and thus far few sales have
been reported. The fruit is coloring well and with the ample supply of moisture in the soil will be well
sized. A s there has been less injury from diseases and insects than usual the quality will be unusually
fine.
N O RTH C A R O LIN A crpp prospects, after an adverse spring and very dry summer, have improved
markedly since the middle of August, and now promise comparatively good yields in nearly all crops.
The cotton crop appears likely to break all previous record for North Carolina, a good and profitable
tobacco crop seems assured, and corn shows a condition equal to any corn crop in several years. The
fruit crop is unusually good. Pastures and hay crops are now doing well, and soy beans and cowpeas
are looking better than for several years. Pecan trees promise a heavy yield.
SO UTH C A R O LIN A prospects are better in every crop this year except tobacco than in 1925, and
in the case of tobacco this year's prices will make that crop more profitable. Prospective yields are
m aterially higher than a year ago, and prices are the principal concern of the farm ers at present. The
per acre yield of small grain crops was the highest in the history of the state, the peach crop was the
largest on record, the corn crop of 24,552,000 bushels is 5,000,000 bushels above last year’ s yield, and
hay, sweet potatoes, sugar cane, sorghum for syrup, cowpeas, soy and velvet beans range in condition
from good to excellent and promise fine yields.
W E S T V IR G IN IA crop prospects improved during the past month as a result of rains, but on
the whole conditions in the state appear to be somewhat less favorable than a year ago. Low er yields
are forecast this year for corn, oats and hay, while larger yields are expected of buckwheat, potatoes,
sweet potatoes, tobacco, and sorghum. Most of the indicated increases are chiefly due to larger acre
age this year, however, rather than to improved condition of the grow ing crops.
FIGURES ON RETAIL TRADE
As Indicated By Reports from Thirty-One Representative Department Stores for the
Month of AUGUST 1926
Confidential reports from 3 1 leading department stores
District showed sales in August 6.8 per cent above sales
above average August sales during the five years 1920-1924,
through August this year were 3.9 per cent above aggregate
scattered throughout the Fifth Reserve
in August a year ago, and 15 per cent
inclusive. Total sales from Jan u ary 1st
sales during the first eight months of
1925-
Stocks of merchandise on the shelves of the reporting stores declined slightly in August, the de
crease averaging one-half of 1 per cent, but at the end of August stocks averaged 1.5 per cent above
6
Percentage increase in August 1926 sales over sales in August 1925
Richmond
Washington
Other Cities
Baltimore
District
7.7
12.1
2.0
6.8
3.7
Percentage increase in cumulative sales from January 1st through August, over sales during the corresponding
eight months in 1925:
4.9
6.9
3.5
3.9
1.2
Percentage increase in August sales over averge August sales during the five years 1920-1924, inclusive:
35.0
23.6
11.7
15.0
3.7
Percentage increase in stock on hand August 31, 1926, over stock on August 31, 1925:
— 1.0
1.5
— 4.0
5.0
9.1
Percentage increase in stock on hand August 31, 1926, over stock on July 31, 1926:
— .3
.2
.6
— .5
— 1.4
Percentage of sales during August 1926 to average stock carried during that month:
21.6
22.2
23.2
20.4
22.1
Percentage of cumulative sales since January 1st to average stock carried during each of the eight months:
195.9
204.8
213.8
174.5
200.6
Percentage of outstanding orders on August 31st to total purchases of goods in 1925:
8.3
9.2
9.1
7.2
8.7
Percentage of collections in August to total accounts receivable on August 1st:
20.3
23.2
34.3
28.9
24.4
— Denotes decreased percentage.
those of August 31, 1925. Outstanding orders for fall merchandise at the end of August totaled 8.7
per cent of last year’s purchases, a seasonal increase over outstanding orders at the end of Ju ly.
The rate of stock turnover was slightly more rapid during August than in Ju ly, sales last month
averaging 22.1 per cent of stocks carried. Cumulative sales since the first of the year amounted to
200.6 per cent of average stock carried during each of the eight months, indicating an annual turnover
rate of 3.009 times. The rate of turnover during* the first eight months of 1925 was 2.982 times.
Collections in August averaged 24.4 per cent of receivables outstanding on August 1st, a slightly
smaller percentage than 27.1 per cent of outstanding receivables collected in Ju ly this year and 24.6
per cent collected in August 1925.
WHOLESALE TRADE, AUGUST 1926
Percentage increase in August 1926 sales, compared with sales in August 1925:
35 Groceries
12 Dry Goods
8 Shoes
17 Hardware
5 Furniture 13 Drugs
— 2.6
— 4.6
8.9
7.1
10.6
— 1.4
Percentage increase in August 1926 sales, compared with sales in July 1926:
— 2.8
65.4
48.4
8.1
60.62.8
Percentage increase in total sales since Jan. 1st, compared with sales during the same eight months in 1925:
— 1.9
— 4.2
7.3
1.6
— 8.6
1.4
Percentage increase in stock on August 31, 1926, compared with stock on August 31, 1925:
1.0(12)
— 9.75(5)
22.2(5)
3.5(9)
Percentage increase in stock on August 31, 1926, compared with stock on July 31, 1926:
2.3(12)
.3(5)
— 5.6(4)
1.4(9)
Percentage of collections in August to total accounts receivable on August 1} 1926:
64.3(21)_____________ 28.4(8)____________ 24.5(6) _________ 26.4(12) ____________ 34.5(3)___________ 57.3(9)
— Denotes decreased percentage.
NOTE: The number of firms reporting stock and collection data in each group is shown immediately following
the percentages.
Reports received from 35 wholesale grocers, 12 dry goods jobbers, and 13 wholesale drug firms
show lower sales on the average in August 1926 than in August a year ago, but 8 shoe jobbers, 17
wholesale hardware firms and 5 furniture factories report larger sales in August this year than last.
In comparison with Ju ly sales this year, August sales registered increases in all lines reported upon
except groceries. Cumulative sales during the eight elapsed months this year exceeded sales in the
corresponding period of 1925 in shoes, hardware and drugs, but grocery, dry goods and furniture
sales were lower this year.
Stocks increased during August in groceries, dry goods and hardware, but declined slightly in
shoes. At the end of August 1926, stocks of groceries, shoes and hardware were larger than at the
end of August 1925, but dry goods stocks declined during the year.
Collections in August were slower than in Ju ly in dry goods, shoes, hardware, furniture and drugs,
but were slightly better in groceries. Slower collections in August is seasonal, however.
(Compiled September 20, 1926)
7
BUSINESS CONDITIONS IN THE UNITED STATES.
(Compiled by the Federal Reserve Board)
Industrial activity and distribution o f commodities continued
in large volume in August at a level higher than a year ago. The
general level o f wholesale prices receded further in August, reflect
ing price declines fo r agricultural commodities.
PRODUCTION. The index o f production in basic industries,
which is adjusted fo r the usual seasonal variations, declined slightly
in August, but this decline was accounted fo r by the fact that there
were five Sundays in August against fou r in July. Textile mill ac
tivity and production o f steel ingots^ zinc and petroleum increased,
while the output o f pig iron, lumber, coal, copper, cement and sugar
was smaller than the month before.
Automobile production in
creased considerably in August and was larger than in any month
since April. Factory employment and pay rolls, after declining in
July, increased in August, as is usual at this season o f the year.
Building activity, as measured by contract awards in 37 states east
o f the Rocky Mountains, was in larger volume in August than in
July or in any other previous month with the exception o f August
1925. In eastern and southeastern states the volume o f building
was smaller in August than a year ago, while in the middle west
contracts awarded were larger. Contracts fo r residential structures
were smaller than last year, while those fo r industrial buildings and
fo r public works and public utilities were substantially larger. Crop
conditions improved in August, according to a statement by the
Department o f Agriculture. September forecasts of yields of com ,
barley, hay, tobacco, and most fruit and vegetable crops were above
those made in August, while expected yields o f oats and spring
wheat were slightly less. A cotton crop o f 15,810,000 bales was
indicated on the basis of the condition of the crop at the middle of
September. The crop, however, is later than last year and ginnings
up to September 16 amounted to only 2,511,000 bales, compared
with 4,282,000 bales prior to September 16, 1925.
Index of 22 bask commodities adjusted for seasonal variation (1919-1O0L
Latest figure-August 116.
... -------
PER CENT
<
150 r
^V \
V \,
)
/ \ P a y rolls
/
100
Employment
50
FACTCIRY EMPLONfMENT
Al
PAY ROL LS
1
1
Federal Reserve Board’s indexes of factory employment and pay rolls (1919' " ).l. Latest figures, August, employment 94.4, pay rolls 107.7.
100
1.
i1
R E SE F IV E BAN K C: r e d i t
V
Total
Reserve Bai
Credit 4
scourrts for
m b er Banks^
f\l 7
(
7)
0^ rv y
{
\
1922
USSecuiritfeS
Acceptan c e s X
v y
1923
y*/
,
1925
Monthly averages of daily figures for 12 Federal Reserve jBanks. Latest
figures, averages of first 23 days of September.
2
BlkUOMS
Of DOLLARS
-----------------
BILLIONS OF DOLLARS
TRADE. Volume o f wholesale trade and o f sales at department
stores increased in August and retail sales were larger than a year
ago. Stocks o f dry goods and shoes carried by wholesale firms were
smaller at the end o f August than last year, while those o f gro
ceries and hardware were larger. Inventories o f department stores
increased in preparation fo r autumn trade, but this increase was
less than is usual at this season and at the end o f the month stocks
were smaller than a year ago. Freight car loadings in August con
tinued higher than in the corresponding months o f previous years
and fo r the weeks o f August 28 and September 4 exceeded all
previous weekly records. Loadings o f grain continued large and
shipments o f merchandise in less-than-carload lots, miscellaneous
commodities, ore and coke were conhiderably larger than in the
corresponding period o f previous years.
PRICES. Wholesale commodity prices, according to the index
o f the Bureau o f Labor Statistics, declined over 1 per cent in
August, reflecting largely price decreases fo r grains, livestock and
meat products. Prices of clothing materials, fuels and metals in
creased between July and August, while prices o f cotton, wool,
sugar, building materials and rubber showed little change. In the
first half o f September prices of grains, cattle, sugar, bituminous
coal and coke advanced, while prices of raw cotton, silver and bricks
declined.
BANK CREDIT. Increased demand fo r bank credit in con
nection with the harvesting and marketing of crops and autumn
trade, together with an increase in loans on securities, was reflected
in a considerable growth between the middle o f August and the
middle o f September in loans of member banks in leading cities.
The banks’ holdings o f investments also increased, though there was
a decrease in investments at banks in New York City, and total
loans and investments on September 15 were larger than at any
previous time. The volume of reserve bank credit increased by
about $90,000,000 between August 18 and September 22, partly in
response to seasonal demands fo r currency. Discounts fo r member
banks rose in September to the highest frgure fo r the year, and ac
ceptance holdings also increased, while United States securities de
clined by about $55,000,000. Money rates continued to rise in
September. Rates on commercial paper advanced by one-fourth per
cent to 4V 2-4% per cent, and rates on security loans also averaged
higher than in August.
8
@FedFRASER