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Federal Reserve Bank
of Cleveland




1932

EIGHTEENTH ANNUAL REPORT
TO THE

FEDERAL RESERVE BOARD

ANNUAL REPORT
of the

Federal Reserve Agent
of the

Fourth Federal
Reserve District
to the

Federal Reserve Board

Covering Operations
for the
Calendar Year
1932

FEDERAL RESERVE BANK OF CLEVELAND




Directors and Officers, 1933
DIRECTORS
CLASS A
BEN R. CONNER, Ada, Ohio, 1933
CHESS LAMBERTON, Franklin, Pa., 1934
ROBERT WARDROP, Pittsburgh, Pa., 1935

CLASS B
J. E. GALVIN, Lima, Ohio, 1933
R. P. WRIGHT, Erie, Pa., 1934

G. D. CRABBS, Cincinnati, Ohio, 1935
CLASS C
W. W. KNIGHT, Toledo, Ohio, 1933
L. B. WILLIAMS (Chairman), Cleveland, Ohio, 1934
E. S. BURKE, JR.,(Deputy Chairman), Cleveland, Ohio, 1935

OFFICERS
L. B. WILLIAMS, Chairman of the Board
and Federal Reserve Agent

Wvf=•

Assis ant Federal

'

Keserve Agent
J. B. ANDERSON, Assistant Federal
Reserve Agent
TT

T7,

A - + + T ? ^ I I

E. R. FANCHER, Governor
M. J. FLEMING, Deputy Governor

H. Jr. iSST&SSSMSSS
p T A Y L O R > Assistant Cashier
C. W. ARNOLD, Assistant Cashier
G. H . WAGNER, Assistant Cashier

w

D. B. CLOUSER, Assistant Cashier

HOWARD EVANS Assistant Federal
Reserve Agent

p

A

E

A

B R

X s s i s t a n t Cashier
Cashier

CARTER> Assistant

F. V. GRAYSON, Auditor

CINCINNATI BRANCH
DIRECTORS
OFFICERS
THOS. J. DAVIS
FRED A. GEIER
B. H. KROGER
C. N. MANNING

C. F. MCCOMBS, Managing Director

C. F. MCCOMBS

H. N. OTT, Assistant Cashier

JOHN OMWAKE
GEO. M. VERITT

BRUCE KENNELLT, Assistant Cashier

B. J. LAZAR, Cashier

PITTSBURGH BRANCH
DIRECTORS

OFFICERS

A. E. BRAUN

J. C. NEVIN, Managing Director

RICHARD COULTER
A. L. HUMPHREY
P J. S. JONES

T. C. GRIGGS, Cashier

R. B. MELLON

F. E. COBUN, Assistant Cashier

J. C. NEVIN

JAMKS RAB




C. J. BOLTHOUSE, Assistant Cashier

— 2 —

EIGHTEENTH ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF CLEVELAND
Despite the low level of business activity, operations of the
Federal Reserve Bank of Cleveland were maintained at relatively
high levels in comparison with the preceding year, although certain
departments were affected more or less by factors not directly
related to the volume of business.
The total volume of credit extended amounted to $1,889,000,000,
anlincrease of approximately $300,000,000 over the preceding year,
notwithstanding that the number of banks accommodated was
reduced from 457 to 408.
The daily average of earning assets was $206,000,000, compared
with $127,000,000 in the preceding year. The greater part of the
difference is represented by increased holdings of Government
BANKS ACCOMMODATED
600

1 ill
M M

4 0 0

200

SEE

• • •
I9?2

1923

1924

•

1 11111 1
1926

1927

1928

1929

1930

1931

I9J2

1925

securities, which rose from slightly less than a $66,000,000 daily
average in 1931, to more than $138,000,000 in 1932. Bills discounted
for members increased from $40,000,000 to $63,000,000, not in
response to the demands of trade, but reflecting largely the discount
of paper to obtain currency to meet deposit withdrawals.
The total number of items handled by the Discount Department
increased from 37,533 in 1931 to 46,140 in the past year. Rediscounts
alone increased about 75 per cent, while the number of bankers'
acceptances declined from more than 9,000 in 1931 to less than 600
in the past year.
Holdings of Government securities were substantially increased
during the year in connection with the system's program of maintaining easy conditions in the money market and facilitating busi-




o

ness recovery. The volume of Government securities purchased by
this bank in the special investment account was practically double
that of last year, amounting to more than $341,000,000. In 1931 a
total of about $125,000,000 of bankers' bills was acquired. During
1932 bankers' acceptances purchased amounted to but $8,000,000.
BILLS PURCHASED AND ACQUIRED

During the past year the number of approved applications for
loans and rediscounts increased to 14,553 from 10,794 the year
before.
RESULTS OF OPERATION
Net earnings available for dividends, surplus and franchise tax for
the year amounted to $1,871,256.37. Of this amount $858,427.20 was
paid to stockholding member banks as dividends. There was transferred to surplus a total of $180,083.21 and the sum of $832,745.90
was credited to the account of the United States Treasurer as franchise tax in accordance with the law.
By reason of bank suspensions throughout the year, paid-in
capital stock decreased approximately $500,000, and for the first
time surplus fund, after restoration to surplus of reserve for depreciation on United States bonds which had previously been set up,
exceeded the amount of subscribed capital stock. After closing of
the books, the capital structure of the bank was as follows:
Capital stock paid in
Capital stock subscribed
Surplus

$14,100,600.00
28,201,200.00
28,293,727.32

MEMBER BANK CREDIT
The liquidation of bank credit which has been in progress since
1929 continued throughout the year. Total resources of all member
banks declined from $3,501,000,000 to $3,265,000,000, only a small
part of which is reflected in the suspension of member banks. The
loan account decreased from $1,807,000,000 to $1,538,000,000, while
investment account increased $47,000,000 to $1,105,000,000. Goven
ment securities owned increased slightly more than $100,000,(
while other securities declined about $55,000,000.




— 4 —

The total of demand deposits shows a decline of about $70,000,000
from a year ago, and the reduction in time deposits approximates
$90,000,000.
BILLS DISCOUNTED FOR MEMBERS
e

1II

iJS B G [

a_l_U

G U C

1

1932

During the year there has been a slight decrease in the ratio of
cash to deposit liabilities, an increase in the ratio of reserve to
deposits and of Government securities owned to deposits, the latter
item increasing nearly 30 per cent. In this same period the ratio of
loans to deposits has declined nearly ten per cent.
Strictly savings deposits held by fourth district members were
reduced about $100,000,000 during the year, or approximately ten
per cent; but the average account has declined only slightly—from
$411 in December of 1931 to $400 a year later.
Condition of Fourth District Member Banks
(Figures in Millions)

Total Loans and Discounts
Investments—All Other . .
Investments—Total

Government Deposits

Dec. 31,
1932

Deo. 31,
1931

Xet
Change

$1,538
591
514
1,105

$1,807
489
569
1,058

-$269
+ 102

$2,643

$2,865

-$222

1,263
1,243

1,334
1.334

33

29

+ 4

$2,539

$2,697

-$158

+ 47
-

71
91

MOVEMENT OF MEMBERSHIP

Changes in membership throughout the year were largely the
result of receiverships, or of purchases, mergers, and consolidations.
At the close of the preceding year there were 682 member banks.
During the year five national banks and one state bank were admitted
to membership. Fifty-four banks were stricken from the list of
members during the year, leaving 634 member banks as of December
31. The table below gives the detail of these changes.




— 5—

Changes in Membership

Withdrawals (evidenced by cancellation of Federal reserve bank stock.)

Purchases, mergers or consolidations
Receiverships
Voluntary Liquidations
State bank withdrawals

14
36
4
0

Additions

State banks
National banks
Number of banks — 12/31/31
Admitted during 1932

1
5
682
6

Withdrawals during 1932

688
54

Number of banks — 12/31/32

634

BANK SUSPENSIONS
In the Fourth District during the calendar year 1932 there were
58 bank suspensions, 23 of which were member banks and 35 nonmember banks. Of the suspended member banks 22 were national
banks and one a state bank. Total deposits of all suspended institutions amounted to $36,870,000, of which approximately $23,000,000
was in member banks and $13,000,000 in non-members.
It is of interest to note that during the year 19 banks, having total
deposits of nearly $70,000,000, were reopened. Deposits of reopened
banks were nearly double those of banks suspended during the year.
FEDERAL RESERVE NOTES
The volume of Federal reserve notes in circulation in the Fourth
Federal Reserve District throughout 1932 was substantially in excess
of the amount which normally would have been required because
of the low state of business activity. Following bank suspensions
in Toledo and Pittsburgh in the early fall of 1931, note circulation
rose rapidly. The usual seasonal contraction in January and February
of 1932 did not materialize, and the volume of notes of this bank
CURRENCY RECEIVED AND COUNTED
Of
DOLLAR!
riGURCS INDICATE M1UJOHS

Of PICCCS

l?00

ill

600

1|

I

•••

•400

1922

1923




1924

1925

1926

(927

•928

I9?9

BJO

1931

193?

in circulation remained practically unchanged until mid-September
when a slight decline occurred. At the end of the year, note circulation was approximately $100 millions in excess of the amount in
circulation in the boom year of 1929.
While without question some of this money is hoarded, there is
no way in which the amount can be determined. To an extent,
cash requirements have been increased in communities where bank
suspensions have occurred, and there is substantial reason to believe
that smaller business units and individuals are using cash in payment
of obligations to avoid taxes and service charges on checks issued.
Evidence exists also that large sums of public funds are maintained
by public treasurers in cash in places where banking facilities are
not available, or banks are unable to qualify as depositaries.
Total Cash Receipts and Disbursements
Receipts
$344,677,899.33
151,850,595.32
259,555,124.49
$756,083,619.14

Cleveland
Cincinnati
Pittsburgh

Disbursements
$348,270,123.31
153,450,131.71
266,183,210.77
$767,903,465.79

CASH RECEIPTS AND DISBURSEMENTS
2000

•N D I S B U R S E M E N T S

1600
1200
eoo
400

I»2J

1*23

Currency Received and Counted
Pieces
50,182,630
26,773,166
39,191,767

Cleveland
Cincinnati
Pittsburgh

116,147,563

Amount
$260,056,100
99,484,020
173,752,450
$533,292,570

Coins Received and Counted
Pieces
42,077,404
46,604,078
39,125,165
127,806,647

Cleveland
Cincinnati
Pittsburgh




— 7 —

Amount
$ 3,591,854
4,453,219
3,211,261
$11,256,334

COIN RECEIVED AND COUNTED
Of
DOLLARS

24

16

9BM!

e

•

• •

• • 1•

IB g 111
MO

_
'931

IM2

CHECK COLLECTIONS

During the year 73,237,653 checks were collected through the
Federal Reserve Bank of Cleveland, aggregating $14,271,000,000.
These figures represent declines of 11.7 per cent and 31.1 per cent,
respectively, from the preceding year. It is noteworthy that the
decline in the volume of checks handled during the latter half of the
year was much greater than in the first six months. This is occasioned
in part by the imposition of metered service charges, Federal taxes
on checks drawn on deposit accounts, and increased postal rates.
CHECK

COLLECTIONS

SESBSSSu
The daily average number of checks handled by this bank in 1932
was 15.8 per cent under 1930 and 12 per cent below 1931, the decline
in general business being responsible for part of the downward
movement in the past three years. During the latter half of the
year the number of checks cleared through this reserve bank was
close to the level of 1924.
The decline in the dollar volume of checks handled reflected, in
addition to the reduced volume of business, the lower level of prices,
wages, etc.
The falling-off in the volume of checks handled during the last
half of the year is confirmed by the drop in the index of bank
deposit turnover from an average of better than 65 in the first half
to less than 60 in the last half of the year.




Transit Department Check Clearings and Collections for Year 1932.
Cleveland
On Cleveland banks
On other banke in District No. 4
On banks in other Districts
On Treasurer of United States
Total
I temp sent to Cincinnati and Pittsburgh Branches

•i Items
5,767,976
21,411,303
929,803
1,470,292

Amounts
$3,278,646,621.64
1,618,678,656.85
70,771,612.45
245,522,019.69

29,579,434
303.276

$5,213,618,910.63
$ 27,996,540.75

Items
3,644,893
11,195,534
234,317
990,478

Amounts
$1,459,147,633.77
612,409,821.35
34,104,788.93
105,556,106.82

16,065,222
118,634

$2,211,218,250.87
$ 18,283,754.82

Items
8,106,221
17,727,490
972,123
787,163

Amounts
$5,544,808,812.15
972,815,998.46
238,839,899.16
89,384,444.89

27,592,997
107,624

$6,845,849,154.66
$ 32,485,819.31

Cincinnati
On
On
On
On

Cincinnati banks
other banks in District No. 4
banks in other Districts
Treasurer of United States

Total
Items sent to Main Office and Pittsburgh Branch
Pittsburgh
On Pittsburgh banks
On other banks in District No. 4
On banks in other Districts
On Treasurer of United States
Total
Items sent to Main Office and Cincinnati Branch
Recapitulation
Total number of items handled
Total amount of items handled
Items and amounts handled by both Main Office and
Branches and not duplicated in above figures

Items
73,237,653
529,534

$14,270,686,316.16
$

78,706.114.88

NON-CASH COLLECTIONS

In 1932, 405,733 items amounting to $332,183,976.91 were
handled through the non-cash collection department.
The number and amounts of items handled at the main office
and branches at Cincinnati and Pittsburgh are as follows:
Main Office
Cincinnati Branch .
Pittsburgh Branch
Total. .

NON-CASH




Number
336,610
37,132
31,991

Amounts
$252,296,197.89
46,923,966.17
32,963,812.85

405,733

$332,183,976.91

COLLECTIONS

9—

On items handled through the three offices, collecting banks
made collection charges on 31,075 items, aggregating $10,150,000.11,
at a rate slightly more than one-tenth of one per cent.
Member banks sent direct to other Federal reserve banks and
branches for collection, 76,153 items, aggregating $55,831,165.61.
FISCAL AGENCY OPERATIONS

During the year 1932 there were issued thirty-one series of
Treasury bills, nine series of certificates of indebtedness, and seven
series of notes. Allotments thereon in this district were as follows:
January 13
January 25
February 1
February 1
February 8
February 15
February 24
March 2
March 15
March 15
March 15
March 30
April 13
April 20
April 27
May 2
May 2
May 11
May 18
May 25
June 1
June 15
June 15
June 29
July 13
July 20
July 27
August 1
August 1
August 10
August 17
August 24
August 31
September 15
September 15
September 28
October 11
October 15
October 19
October 26
November 9
November 16
November 23
November 30
December 15
December 15
December 28

Ninety-one day bills
Ninety-three day bills
Six month 3%% certificates
One year 3 % % certificates
Ninety-three day bills
Ninety-three day bills
Ninety-one day bills
Ninety-one day bills
Seven month V/%% certificates
One year 3%% certificates
One year 2% certificates
Ninety-one day bills
Ninety one day bills
Ninety-one day bills
Ninety-one day bills
One year 2% certificates
Two year 3 % notes
Ninety-one day bills
Ninety-one day bills
Ninety-one day bills
Ninety-one day bills
One year VA% certificates
Three year 3 % notes
Ninety-one day bills
Ninety-one day bills
Ninety-one day bills
Ninety-one day bills
Two year 2V%% notes
Four year 3M% notes
Ninety-one day bills
Ninety-one day bills
Ninety-one day bills
Ninety-one day bills
One year \\i% certificates
Five year 3\i% notes
Ninety-one day bills
Ninety-two day bills
Four one-half year 3 % notes
Ninety-one day bills
Ninety-one day bills
Ninety-one day bills
Ninety-one day bills
Ninety-two day bills
Ninety-one day bills
One year % of 1% certificates
Four year 2%% notes
Ninety-one day bills




— 10 —

$

000
150,000
8,398,000
5,437,000
000
10,000
150,000
000
15,038,500
14,885,500
2,442,750
62,000
000
000
000
12,206,500
11,225,800
000
000
50,000
000
17,024,000
20,821,300
60,000
65,000
000
000
19,214,900
14,866,900
000
177,000
000
000
16,963,000
30,719,700
50,000
150,000
9,807,100
000
000
000
000
000
000
5,876,500
15,180,900
000

Government securities delivered on allotment numbered 29,597
pieces.
Government securities received for exchange of denomination
or form (within the issue) consisted of 36,572 pieces in coupon form
and 12,365 pieces in registered form, aggregating $129,465,000,
including $70,602,100, received for transfer by wire.
GOVERNMENT COUPONS REDEEMED
OF
DOLLARS

KX>

flOURCS

IN04CATC

THOUSANDS Or COUPONS

eo
60

40

20

• 1 1 11
I79OOJ

164001

I5500J

• 11 H

[51Ool

• •

^

hoOj

h90j

T270^

6

1929

1930

1931

•
L 270 J

1932

Wire transfers of Government short-term securities from other
districts to this district aggregated $30,846,600; from this district
to other districts, $70,602,100.
Government coupons redeemed totaled 2,420,106, aggregating
$46,576,063.17. Federal farm loan coupons redeemed totaled
287,027, aggregating $8,723,189.58.
Government obligations presented for redemption numbered 124
in registered form and 18,407 in coupon form and had a value of
$48,144,255.
Federal Farm Loan bonds and Federal Intermediate Credit bank
debentures presented for redemption numbered 29 and had a value
of $370,000.
Early in February the Cleveland office began to function as
custodian for Reconstruction Finance Corporation. At the close
of the year, about one hundred persons were employed in the organization developed for that purpose.
PERSONNEL
It is with deep regret that we record the passing away on June 2,
1932, of Mr. O. N. Sams of Hillsboro, Ohio, who had been a director
of this bank continuously since November, 1918. In a special election
to select a successor to Mr. Sams, Mr. Ben R. Conner of Ada, Ohio,
was elected. His term expires December 31, 1933.
In the annual election of directors, Mr. Robert Wardrop of Pittsburgh and Mr. G. D. Crabbs of Cincinnati were reelected Class A
and Class B directors, respectively, for three-year terms. Mr. C. N.
Manning, President of the Security Trust Company, Lexington,
Kentucky, was appointed a director of the Cincinnati Branch. Mr.




— 11 —

Richard Coulter, President of the First National Bank and Trust
Company, Greensburg, Pennsylvania, was appointed a director of
the Pittsburgh Branch.
NUMBER OF EMPLOYEES

There were no changes in the official staff throughout the year.
The number of employees, including those engaged in Fiscal
Agency and Reconstruction Finance Corporation operations whose
salaries are reimbursable to the bank, shows an increase for the yearoccasioned almost entirely by the employment of additional help in
connection with the Reconstruction Finance Corporation operations.
On December 15, through voluntary contributions on the part of
all officers and employees a fund was created through which employment for a six-month period was given to approximately fifty employees. This contribution and the resulting increased employment
represents a contribution by the officers and employees of this bank
to the National Share-the-Work Movement. Employment was
limited to the most deserving cases and some cases of acute distress
have been alleviated.
BANKING AND INDUSTRIAL COMMITTEE
On June 1, 1932, Governor E. R. Fanchcr of this bank appointed
a Banking and Industrial Committee consisting of fifteen members,
under the chairmanship of Mr. Lewis B. Williams of Hayden, Miller
and Company. The personnel of this committee follows:
W. M. BALDWIN, President, Union Trust Company, Cleveland,
J. J. BERNET, President, Chesapeake and Ohio Railway Company,
GEORGE D. CRABBS, President, The Philip Carey Manufacturing Co.,
HARRIS CREECH, President, The Cleveland Trust Company,
H. G. DALTON, Pickands, Mather and Company,
T. J. DAVIS, Chairman, First National Bank, Cincinnati,
E. W. EDWARDS, President, Fifth-Third Union Trust Company,
H. S. FIRESTONE, Chairman, Firestone Tire and Rubber Company,
HOWARD HEINZ, President, The H. J. Heinz Company,
H. C. MCELDOWNEY, President, Union Trust Company, Pittsburgh,
WM. COOPER PROCTER, Chairman, Procter and Gamble Company,
A. W. ROBERTSON, Chairman, Westinghouse Electric & Manufacturing Co.,
GEORGE M. VERITY, Chairman, The American Rolling Mill Company,
E. T. WEIR, Chairman, National Steel Corporation,
L. B. WILLIAMS, Hayden, Miller and Company.




— 12 —

Colonel Leonard P. Ayres contributed his services to the committee as economic advisor.
This committee was organized in an effort to encourage a wider
use of credit that had been made available through open market
operations of the reserve banking system, which took the form of the
purchase of approximately one billion dollars in United States
Government securities during the latter half of the year.
A survey was made of the credit requirements of industry in this
district, which developed the fact that while banks generally were
meeting the legitimate demands of business for credit for current
use there was a great demand for funds for capital purposes, or for
long-term loans secured by real estate mortgages.
Under prevailing conditions loans of this latter type were practically impossible to secure. Banks, in an effort to acquire or maintain
a greater than usual degree of liquidity, were making, in the main,
commercial loans of a type which were eligible for rediscount at
Federal reserve banks. In a number of instances, this committee was
successful in bringing borrower and lender together, generally in
cases where usual banking accommodations were no longer available,
as a result of suspensions, or where individual units had outgrown
their banking facilities.
Other activities of this committee were concerned with plant
rehabilitation, this work being organized under the direction of Mr.
Randolph Eide, President of the Ohio Bell Telephone Company.
This committee was instrumental in securing active cooperation on
the part of many manufacturers in pushing to completion projects
involving plant construction, additions, alterations, or the installation of equipment which otherwise might have been delayed.
Under the direction of Mr. John E. Galvin, President of the
Ohio Steel Foundry Company, a vigorous campaign was waged in a
Share-the-Work Movement, as a result of which many thousands
of workers were added to or retained on pay rolls who otherwise
would have been without regular employment.
The committee was instrumental in securing the appointment
by Governor George White of Ohio of what is known as the Farm
and Home Protective Committee, organized to prevent, so far as
possible, unjust and uneconomic foreclosures. The committee has
acted largely in an advisory capacity and in hundreds of cases has
served as mediator in rearranging mortgage terms between mortgagor
and mortgagee.
GENERAL BUSINESS CONDITIONS
In the year 1932 the general level of business activity, both in this
district and the United States, touched a lower level than any before
on record; production in almost every line of business was considerably smaller compared, not only with the years of prosperity, but
also with the relatively poor year of 1931. Operations declined quite
sharply in the first half of the year, the spring expansion in the major
industries and trade not being up to seasonal proportions. A low




— 13 —

point for all time on record was touched in July, judging by employment, retail trade, production in various lines, etc., but in the following few months a sizeable expansion occurred, after allowing for
seasonal variations. This brought business to the level prevailing in
spring, though some weakness developed in the closing months of
the year.
Because of the district's highly industrialized make-up and the
dependence of many local plants and factories on the iron and steel
and automobile industries, the general trend of employment and
operations followed closely that of those industries. It was new automobile production in the closing months of the year which held up
operations at plants in this district.
Industrial employment declined quite sharply, the index for Ohio
averaging 17 per cent lower in the entire year than in 1931 and in
December it was 63 per cent of the 1926 monthly average. This was
above the low point in August, the slight recovery in the fall months
being held until the end of the year. Payrolls dropped to a lower
level in the year than employment because of the reduction in wage
rates and in the number of hours worked, and the demands on relief
organizations increased sharply as purchasing power diminished.
Cost of living, based on an index of living expenses at Cleveland,
Pittsburgh and Cincinnati constructed from Bureau of Labor data,
dropped about nine per cent in 1932 and at the year end was 22.5 per
cent lower than in 1929 and also lower than since 1916.
As an indication of the decline in operations and trade, debits to
individual accounts at banks in 24 principal cities, representing
largely the volume of check payments, were 35 per cent smaller in
1932 than in 1931. The decline in prices, which at wholesale was
about 11 per cent in the year, according to the Bureau of Labor index,
accounted for part of the decline, and the reduction in the number
of banks, the check tax, etc., which caused more people to use cash
instead of checks, were other factors.
The volume of retail trade, as reflected by sales at large department stores throughout the district, was down 27 per cent in the year
and amounted to only 60 per cent of the average for the three years
1923-1925. The decline in retail prices in 1932 accounted for part of
the reduction, Fairchild's index of prices at department stores declining approximately 15 per cent in the year. Stocks of department
stores were quite sharply reduced, the dollar value at the year end
being 22.5 per cent lower than a year earlier. Collections held up
fairly well and a greater proportion of sales were for cash in the year
than in 1931.
In the wholesalefield,the decline in sales was not quite so sharp as
the reduction in retail buying, judging by reports from 70 firms in four
important lines. The dollar value of sales of these reporting units was
23 per cent smaller in 1932 than in 1931. Wholesale grocery sales
were down 22 per cent; drugs 15 per cent; hardware 26 per cent; and
dry goods 34 per cent. Chain grocery sales, per individual unit




operated, were down only eight per cent in the year, a smaller reduction than the drop in food prices.
Construction activity touched a new low level in 1932, total contracts awarded in the year amounting to only $127,084,000 in the
entire district. This compared with an average yearly volume of
$555,030,000 in the ten years 1922-1931. The reduction, 1932 from
1931, was 54 per cent. Residential building amounted to only
$22,355,000 in the year, a decline of 66 per cent from 1931. Public
works and utility building, relied upon to buoy up operations in times
of depression, were off 30 and 58 per cent, respectively, from 1931.
Final estimates of 1932 production of principal crops show that
the harvest of fourth district farms, compared with preceding years,
was substantially below the average of the entire country in all
cases except potatoes and wheat; in these two crops the reductions
were moderate. Changes in 1932 production from preceding years
are of only limited significance when compared with the decline in
farm prices and in gross agricultural income. In Ohio, gross cash
income of farmers from six principal crops was down 28 per cent
from 1931 and amounted to only 46 per cent of the five-year average
1924-1928. In addition to low prices, some crops were not sold
because of the oversupplied market. In the entire country gross
agricultural income in 1932 was estimated to be 25 per cent smaller
than in the preceding year and down 56 per cent from 1929.
A survey of the industrial situation reveals that output of pig
iron in the year was the smallest since 1896 and production was off
52.5 per cent from 1931. Steel ingot production was lower than since
1900 and the entire industry operated at an average rate of 19 per
cent of capacity, turning out 13,096,000 tons, a reduction of 48 per
cent from 1931. Output touched an all-time low in August, but
considerable improvement occurred in the two following months,
and, though a falling-off developed in November and December,
the year ended considerably above the low point recorded in summer,
after allowing for seasonal variations. During most of the year,
operations of local mills averaged somewhat higher than did those
in other sections of the country. This was due to the fact that demand
from the automobile industry, though limited, was relatively better
than from the railroad or construction industries and to the fact
that tin plate production was in fair volume. Local mills are more
dependent on the automobile industry than any other.
Iron ore receipts at Lake Erie ports in the entire year were only
2,707,000 tons, about one-fifth the amount received in 1931, and less
than the average amount received in a single month in recent years.
Production of automobiles in 1932 numbered 1,372,690 units,
the smallest number for any year since 1918 and 43 per cent below
output of 1931. This low level of operations affected production
of parts and accessories, tires, glass, etc., at many factories in the
district. In some cases, plants were closed entirely for part of the
time, while others operated on very reduced schedules, but the year
was not without some favorable developments. Stocks of new and




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used cars were sharply reduced in the period and the spurt in production in the two closing months of the year in preparation for the
annual shows and to provide dealers with new models was quite
beneficial to plants in this district.
The tire industry was adversely affected by the decline in automobile production, automobile registrations and the fact that cars
were being operated less, output being down about 17 per cent in
1932 compared with 1931. Crude rubber consumption in the year
was off 11 per cent and for the first time since the war more rubber
was consumed by factories in foreign countries than by domestic
ones. Price changes in both raw and finished products were disturbing elements. This caused tire production to fluctuate markedly
in some months of the year.
Coal production at local mines was 24 per cent less in 1932 than
in 1931, but considerable improvement occurred in the last half
of the year, output increasing until it exceeded the corresponding
period of the preceding year in December. Production costs and
prices declined in the year, the latter being lower than since 1922.
Shipments of coal from Lake Erie ports were off 20 per cent in 1932
from 1931.
Operations in the miscellaneous industries of the district were
generally lower in 1932 than in 1931, but the extent of the decline
varied widely. Shoe production was only 2.8 per cent smaller than
in 1931, though activity at local plants was much below the average
of preceding years. In the clothing industry production held up
fairly well, but price declines reduced the dollar volume sharply.
Paint factories operated at fair rate during the year, but demand was
lower than in 1931 because of the reduced building and industrial
activity. Most other concerns, including those engaged in the
production of electrical supplies, hardware, machinery, machine
tools, glass, china, pottery and paper, curtailed operations during
the year, though, as the period drew to a close, most plants were
running at levels considerably above the record low point touched
in earlv summer.




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