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usiness
C onditions
Reserv e
DISTRICT
S eventh
FEDERAL
Volume 12, No. 9
E A SO N A L influences have been largely responsible
for recent recessions recorded in Seventh district
industry and trade, and activity generally continues at a
higher level than a year ago. Among the mid-summer
declines, may be noted those in the automobile and agricul
tural machinery industries, malleable foundry operations,
in butter and cheese production, and in wholesale and retail
trade. The iron and steel industry has failed to experience
any noticeable slowing-down. F urniture shipments fell off
in July, but orders booked increased seasonally. Contrary
to the usual trend, production at slaughtering establish
ments and at shoe factories gained. As compared with
1928, the automobile and iron and steel industries are
m aintaining a higher level of activity, and wholesale and
retail trade are larger. Shipments by furniture factories
are ahead of a year ago, and output of agricultural m a
chinery continues heavier. Sales and production of butter
and those at meat packing plants gained in the com pari
son. A lthough July output of coal increased over a month
and a year previous, conditions in this industry show no
marked improvement. Flour mills of the district are op
erating at a lower level than a year ago, though production
increased in July, and the same is true of the leather
industry.
Building construction, as reflected in contracts awarded
in the district, fell off further in July, total awards and
those for residential building declining in both the monthly
and the yearly comparison. Residential building so far
this year totals 21.1 per cent under the same period last
year and all building is 10.5 per cent lower. Perm it figures,
however, moved upward in July, though aggregating much
less than a year ago at this time; excluding the city of
Chicago, where contemplated construction was not half
the volume of July 1928, perm its gained in the comparison.
Corn has progressed well in some sections of the district,
though deterioration of the crop has taken place in others
because of insufficient rainfall.
Small grain is being
threshed rapidly. A ugust 1 forecasts show the 1929 corn
crop larger than estimated a month ago, and oats, w inter
wheat, barley, rye, and hay less, but the trend remains the
same, with corn, oats, and barley smaller than in 1928, and
w inter wheat, rye, and hay larger. The potato crop is also
less. In fruits, the supply of grapes, pears, and apples
will be smaller this year and that of peaches greater. The
m arketing of w heat was very large in July, and trading
in grain futures on the Chicago Board of T rade totaled
S
September 1, 1 9 2 9
M O N T H L Y R E V IE W P U B L IS H E D BY T H E
F E D E R A L R E S E R V E B A N K O F C H IC A G O
Compiled A
unusually heavy. In contrast to the usual seasonal ten
dency, the m arketing of live stock increased over June.
Cattle on feed the beginning of August exceeded the
number a year ago.
A good demand for credit prevailed during July in many
cities of the district, with some increases in rates recorded.
Loans of the Federal Reserve to member banks and those
of the latter to customers were in greater volume the
middle of August than a month previous. Commercial
paper sales, transactions in bankers’ acceptances, operations
in the open bill m arket, and volume of paym ent by check
increased in July over June, but savings deposits declined;
as compared with a year ago, all except commercial paper
sales showed gains.
CREDIT
C O N D IT IO N S
AND
M ONEY
RATES
A well sustained demand for funds is reported in many
banking centers of the district, accompanied in some cities
by a rise in rates of from one-half to one per cent. Com
mercial loans as well as those on securities are in greater
volume in the district as a whole than a month ago. Rates
in Chicago are quoted at 6 to 7 per cent for over-thecounter accommodations and § /l 2 to 7 per cent on collateral;
commercial loans have shown considerable expansion the
past month, as is true likewise of security loans, although
the latter decreased in volume about the middle of August.
The average rate earned on loans and discounts by six
large banks in Chicago during the calendar m onth of July
was 6.29 per cent, compared with 6.22 in June and 5.46
per cent in July 1928. The prevailing rate in D etroit on
custom ers’ commercial loans during the week ending
August 15 was 6 per cent.
On August 21 the volume of bills and securities held by
the Federal Reserve Bank of Chicago totaled $159,381,000,
as compared with $135,539,000 on July 24 and $196,115,000
on A ugust 22, 1928. Loans to member banks displayed an
upward trend during the three weeks following July 24,
aggregating $126,340,000 on A ugust 14 against $101,920,000
on the former date; on August 21, however, they declined
to $121,926,000. T his item am ounted to $150,134,000 on the
corresponding date in 1928. The total of U nited States gov
ernm ent securities on A ugust 21 increased about two
million over a m onth previous, aggregating $25,973,000.
Federal Reserve notes in circulation on this date am ounted
to $330,416,000, showing a decline from the $334,425,000
reported July 24 and com paring with $278,177,000 on
A ugust 22 last year.
St 2 7, 1 9 2 9
P O S IT IO N O F T H E F E D E R A L R E S E R V E B A N K OF C H IC A G O
700
4 *\
1
-»
jv \
'{CV y lfl
T
\T / /vT
W
ILLS 0»SCOU*
1920
1921
1922
1923
1924
1925
192b
1927
1928
1929
M o n th ly a v e r a g e s of w eek ly figures. L a te s t fig u res, a v e r a g e s
of firs t th r e e w e e k ly r e p o rt d a te s In A u g u s t, 1929, in th o u s a n d s
of d o llars: F e d e r a l R e se rv e N o tes, 330,880; T o ta l B ills a n d S e
c u ritie s , 158,349; T o ta l B ills D isc o u n te d , 122,221.
Reflecting the active demand for credit prevalent in the
Seventh district, loans and discounts of reporting member
banks on A ugust 14 aggregated $2,694,242,000, representing
a rise of about seventy-five million since the middle of July
and of more than one hundred million since the first report
ing date in that month, July 3, when $2,585,366,000 was
reported. W hile the bulk of this expansion is attributable
to increased security and commercial loans in Chicago,
D etroit and other selected cities are also factors in the
rising trend. Investm ent holdings of reporting member
banks are lower than at the middle of July, $683,727,000 on
A ugust 14 com paring w ith $691,114,000 July 17. Demand
deposits have moved upward in recent weeks, although a
decrease from A ugust 7 was shown A ugust 14 when
$1,915,391,000 was reported as against $1,937,333,000 on the
first named date; on July 17 the aggregate had been
$1,876,534,000. Time deposits of $1,261,081,000 on August
14 marked a gain of nearly thirty million over the preced
ing week and compared w ith $1,228,115,000 July 17.
Commercial paper sales in the Middle W est increased
43.6 per cent in July over the preceding m onth and
decreased 9.3 per cent from a year ago, according to a
compilation for nine reporting dealers. Individually, how
ever, four dealers experienced an expansion over 1928 and
two concerns showed a recession in volume from June.
Supplies were better than a month previous and averaged
fair to good; demand improved also and ranged between
steady and strong. The sales of four Chicago dealers
aggregated less during the first half of A ugust than in
the corresponding weeks of the preceding month, with a
recession in the supply of paper as well as in demand.
July selling rates were 6 per cent for low and generally
6 % per cent for high, although a little paper moved at 6 ^
per cent; the custom ary charge ranged between 6 and
6*4 per cent. Q uotations opened on August 15 at 6 per
cent for low and 6 to 6>4 per cent for high, and averaged
about 6 to 6% per cent. The July 31 outstandings of five
dealers were 4.8 per cent greater than at the close of the
preceding month and 17.3 per cent smaller than last year;
outstandings of tw enty-three firms in the U nited States
aggregated $265,000,000 compared with $274,000,000 on
June 29.
The operations of five dealers in the Chicago open bill
m arket averaged on a weekly basis 12.6 per cent heavier
in quantity of purchases and 37.2 per cent smaller in volume
of sales from July 18 to A ugust 14 than in the preceding
period, and expanded 277.7 and 181.0 per cent, respectively,
over a year ago. Receipts from other offices declined 77.8
Page
2
per cent in the comparison with those of June 13 to July
17, but were 49.0 per cent larger than last year; shipments
to other offices increased 43.8 per cent over the preceding
month and 329.8 per cent over those of corresponding
period of 1928. Dealers reported a fair to very good
supply of bills, with demand rather light. Preference cen
tered on 90- and 60-day maturities. Acceptances covered
grain, packing-house products, machinery, cotton, coffee,
merchandise, artificial silk, electrical refrigerators, lumber,
furs, steel, wood pulp, coal, raw silk, precious stones, logs,
and woolen goods. Rates changed little from July 17 and
closed on A ugust 14 at 5 % per cent for 30- to 90-day paper
to 5 /4 and 5 % f°r m aturities of 120 to 180 days. A ugust
14 holdings exceeded those of the preceding month by 27.4
per cent and were 53.0 per cent above a year ago.
July transactions in bankers’ acceptances of the fourteen
reporting banks in the Seventh Federal Reserve district
totaled in excess of the preceding m onth and were much
heavier than in the corresponding period of 1928. The
volume of bills accepted by these banks increased 88.8 and
208.4 per cent in the respective comparisons, and sales
expanded 49.4 and 376.3 per cent, while purchases aggre
gated 13.9 per cent larger than in June. Individually,
however, four of the banks recorded a decline in acceptances
and a m ajority of banks reporting purchases showed a
recession in this item from the preceding m onth. Accept
ances reported for the first half of A ugust by three
Chicago banks were 9.6 per cent smaller than for the
corresponding weeks of July; bills were drawn for grain,
packing-house products, coffee, copper, cotton, machinery,
furs, iron, tea, phonographs and pianos, coal, silk, nuts,
and a large list of miscellaneous commodities. H oldings
gained 24.8 per cent on July 31 over the preceding period
and were 181.3 per cent above last year; portfolios con
tained 33.5 per cent fewer of the originating banks’ own
acceptances than a m onth previous. Liability for out
standings was 32.7 per cent greater than on June 29 and
75.9 per cent above a year ago. July purchases of the
Federal Reserve Bank of Chicago totaled $14,132,581 in
contrast to only $10,782,955 in June, and the bank had
$9,481,906 of this class of bills on hand at the end of
the month.
Volume of Payment by Check—A considerably expanded
volume of paym ent by check in July, as compared with
June and with July a year ago, was shown by the aggregate
of debits to individual accounts reported by thirty-eight
clearing house cities in the district. A rise of 8.8 per cent
took place in July as compared with the preceding month,
and of 22.2 per cent over July 1928. The four larger cities’
Chicago, Detroit, Milwaukee, and Indianapolis, increased
their total 9.6 and 23.8 per cent, respectively, in the two
comparisons. Thirty-four smaller reporting centers showed
a gain of 4.5 per cent over the m onth of June and one
of 13.3 per cent over July a year ago. The city of Chicago
reported increases of 11.2 and 26.7 per cent over June
and over July 1928. The dollar am ounts representing
volume of paym ent by check are shown in the table below;
(000 om itted)
J u l y , 1929
Chicago ................................................$4,944,770
Detroit, Milwaukee, and Indian
apolis ............................................... 1,834,645
J
u n e , 1'929
$4,445,223
J u l y , 1928
$3,902,532
1,740,081
1,573,418
Total four larger cities..................$6,779,415
34 smaller centers............................. 1,134,421
$6,185,304
1,085,140
$5,475,950
1,001,454
Total 38 centers.............................$7,913,836
$7,270,444
$6,477,404
Savings Deposits—The volume of regular savings
deposits in the Seventh Federal Reserve district totaled
1.8 per cent smaller on August 1 than a month previous,
and was accompanied by a decrease of 0.3 per cent in the
num ber of depositors and of 1.5 per cent in average
accounts, according to a compilation for 198 banks. Gains
of 2.7 per cent and 1.0 per cent in number of accounts
and aggregate deposits, respectively, were recorded over
a year ago, but average accounts showed a decline of 1.7
per cent. Slight increases over July 1 in the number of
accounts in both Iowa and W isconsin were the only
exceptions in which the individual states failed to follow
the general trend of the district. All states showed a
decline from the figures of a year ago in average accounts.
Individually, almost three-fourths of the banks reported
a decrease in deposits from July 1, while as compared with
August 1, 1928, 119 of the banks registered a gain.
Bonds—Little change took place in the bond m arket
during July, the situation rem aining about the same as
during recent m onths, with a small volume of trading,
resistance to price increases, and general dullness still pre
valent. New bond offerings for the period were below
those of June and a year ago. Prices fluctuated little
during July, although in the latter part of the month
and the first of August, the level in state and municipal
issues sank to approxim ately the lowest point of the year.
The active demand for convertible issues continues.
AGRICULTURAL PRODUCTION AND FOODSTUFFS
Prospects for corn continued to show marked improve
ment in the Seventh district until late in July, but the
crop suffered deterioration after the first week in A ug
ust, throughout a rather wide area, because of prevailing
dry w eather until late in the month. Good progress was
reported in the sections receiving local rainfall. A large
part of the crop ranged between the milk and dent stage
by August 20, while a portion of it had just started to
tassel. T hreshing of small grain advanced rapidly and
some fall plowing has been done. The United States Bu
reau of A gricultural Economics reports a larger number
of cattle on feed on A ugust 1 in the five states includ
ing the Seventh district than a year ago.
CROP PRODUCTION
Estimated by the U. S. Bureau of Agricultural Economics as of August 1
(In thousands of bushels unless otherwise specified)
S e v e n t h D is t r ic t
F orecast
F in a l
F orecast
U n it e d S tates
F in a l
5-Y r. A v.
1929
1928
1929
1928
1923-27
Corn .....................923,206
1,017,882
2,740,514
2,835,678
2,746,740
Oats .....................506,496
624,072
1,202,895
1,448.677
1,345,081
W inter wheat .... 58,342
36,411
568.233
578,133
549.257
Spring wheat
.... 4,724
6,582
205,652
324,058
260.411
Barley ................ 6 3 .8 6 3 (a )
8 4 .181(a) 304.381
356,667
208,783
Rye ...................... 8 .9 6 5 (a )
7 .2 6 4 (a )
41.028
41,676
54.793
Buckwheat ____ 1 .5 1 0 (a)
1 .514(a)
13,487
13,148
13.949
Flaxseed ...........
2 1 9 (f )
3 2 0 (f)
17,979
18,690
23,243
Potatoes (w hite) 59,641
76,982
372.812
464.483
382,755
Potatoes(sw eet) 1.549(b )
T,581(b)
80,117
77,661
78,045
Onions ......
5 .2 1 3 (a )
4 .3 7 5 (a )
18,563
12,383
............
Domest. cabbage*
1 2 5 (g )
10 3 (g )
8 3 1 (h )
7 1 5 (h ) ............
Canning crops
Green peas**..262,405(e)
242.063(e) 411,420
386,245
............
Sweet corn*_
3 4 3 (a )
2 9 6 (a )
697
536
............
Tomatoes* ......
2 6 4 (d )
1 9 3 (d )
1,272
965
...........
Snap beans*....
1 7 (g )
1 5 (g )
84
65
............
Apples
(total crop).... 17.8 8 5 (a)
19.970(a) 149,140
185,743
183,452
Peaches
.......... 4 .5 9 3 (d )
3 .4 4 9 (d )
45,362
68,374
52,224
Pears .................. 1.4 9 6 (d )
1.6 9 4 (d )
19,762
24,012
20,211
Grapes*
..........
8 9 (a )
9 1 (a )
2,061
2,671
2.250
Dry Beans .......... 6 .6 9 1 (c)
5 .972(c)
17,626
16,621
17,058
Tobacco** .......... 47,437
49,005
1,519,383
1,378.139
1',330,576
All tame hay*.... 21,806
16,781
97,421
92,983
92,810
*In thousands of tons. ** In thousands of pounds.
(a ) Five states including the Seventh district, (b ) Indiana.^ Illinois,
Iowa, (c ) Michigan and Wisconsin, (d ) Indiana, Illinois, Michigan, and
Iowa, (e ) Indiana. Illinois, Michigan, and Wisconsin. (f)_ Wisconsin
and Iowa, (g ) Indiana, Michigan, and Wisconsin, (h ) Five groups,
viz., fall, early, second early, intermediate, and late states.
FLOUR PRODUCTION IN THE SEVENTH DISTRICT
Changes in July, 1929, from previous months
P
Production (bbls.) ...........................
Stocks of flour at end of month
(bbls.) .......
Stocks of wheat at end of month
(b u .) ....................................... ..
Sales( volume) .................................
Sales (value) ....
- .....
C e n t C h a n g e F rom
J une
J uly
er
C o m p a n ie s
I n c lu d ed
1929
+ 3.1
1928
— 5.2
— 13.1
— 2.9
27
4-95.6
4-29.3
-j-37.0
4-27.9
—77.7
—75.4
27
1'2
12
Production includes wheat and other flours.
to wheat flour only.
29
Balance of items refer
Movement of Live Stock—The m arketing of live stock
at public stock yards in the U nited States increased in
July over the preceding month and a year ago. H og and
Iamb receipts exceeded the 1924-28 July average; those
of- cattle and calves declined.
LIVE STOCK SLAUGHTER
C a t t le
Yards in Seventh District,
July, 1929 .................... 218,161
Federally Inspected Slaugh
ter, U. S.
July, 1929 .................... 706,084
June, 1929 .................... 636,278
July, 1928 .................... 662,331
H ogs
L a m bs and
S heep
C alves
793,289
328,718
85,637
3,596,780
3,755,620
2,984,203
1,254,810
1,107,785
1,076,307
362,623
344 306
361,564
The movement of cattle, lambs, and sheep to feed lots
was greater than in June; shipments of feeder cattle de
creased and those of lambs, sheep, and calves increased
in the comparison with the five-year average for July.
AVERAGE PRICES OF LIVE STOCK
(P e r hundred pounds at Chicago)
'e e k E nded
A ug. 17,
1929
...$14.85
.. 10.00
.. 16.00
.. 10.90
... 9.75
.. 13.10
J uly
1929
$14.85
10.50
15.25
11.30
11.50
14.45
M onths
J une
1929
$14.20
10.90
13.70
10.75
11.50
15.25
of
J
u ly
1928
$15.00
10.00
14.85
10.70
12.60
15.60
Meat Packing—July production at slaughtering estab
lishments in the U nited States exceeded that of the pre
ceding month and was much heavier than a year ago.
Payrolls for the lagt week of the period increased 1.1 per
cent in number of employes, 1.7 per cent in hours worked,
and 0.1 per cent in total earnings over corresponding
figures for June. A m oderately good inquiry was expe
rienced in domestic m arkets for dry salt pork, smoked
picnics, and sausage; trade was active for boiled ham
and quiet for lard, bacon, veal, beef cows, and beef chucks.
Demand for lambs and for steer beef averaged fair during
the first two weeks but tended to drag after mid-month.
The value of sales billed to domestic and foreign custo
mers by fifty-five m eat packing companies in the United
States totaled 0.7 per cent greater than in June and 7.6
per cent in excess of last July. Domestic demand showed
some recession at the beginning of A ugust from a month
previous but averaged fair. Inventories of packing-house
products in the U nited States totaled slightly less on
A ugust 1 than on July 1, although they were above last
year and the 1924-28 average for the date. H oldings of
lard and dry salt m eats increased over the preceding period,
those of lard and frozen pork decreased in the compari
son with last A ugust, while stocks of dry salt pork de
clined from the five-year average. Chicago prices for the
m ajority of packing-house products averaged a little high
er than in June, although mutton, fresh skinned hams,
fresh picnics, and a few grades of beef were lower. Quo
tations for pork, veal, lamb, and m utton trended down
ward at the close of the month. Shipments for export were
somewhat less than in June; some companies experienced
an increase. A m ajority of the reporting firms found
the foreign demand for lard and meats rather quiet, though
Fage 3
somewhat better than in the preceding month; it was
fairly good at times. Prices in European m arkets con
tinued under Chicago parity but were nearer the domestic
basis than in June.
D airy Products—Butter m anufacturing in the Seventh
Federal Reserve district showed a seasonal recession of
8.9 per cent in July from the preceding m onth but ex
ceeded that of a year ago by 3.6 per cent, according to a
compilation for sixty-six reporting creameries. W eekly
statistics of the American Association of Creamery Butter
M anufacturers indicate that U nited States production was
about on a level with 1928, but less than in June. Sixtyeight companies in the Seventh district billed a 6.0 per
cent smaller tonnage of creamery butter to customers
during July than a month previous, the volume being 2.7
per cent greater than last year. Inventories of dairy prod-
ucts in the United States expanded as usual on A ugust 1
over the beginning of July, with stocks of butter and
cheese larger and with holdings of eggs smaller than last
year and the 1924-28 average for the month. Receipts of
American cheese at W isconsin m arkets from factories
within that state decreased 9.2 per cent during the four
weeks ended July 27 from the preceding period and were
8.1 per cent under a year ago; distribution from these
prim ary centers gained 5.8 and 7.6 per cent in the respec
tive comparisons. Smaller quantities of butter and eggs
and larger tonnages of cheese were received in Chicago
during the month than in June; receipts of cheese and
eggs decreased from last year, while those, of butter in
creased. Chicago quotations for eggs advanced and prices
of butter and cheese declined somewhat in July as com
pared with the preceding month.
INDUSTRIAL EMPL
WENT CONDITIONS
M anufacturing plants of the Seventh Federal Reserve
district report a decline of 0.2 per cent in employment
during the period June 15 to July 15, w ith a reduction of
5.0 per cent in the am ount of payrolls. The heavier pay
roll decline was mainly the result of lay-offs incident to
vacations and the taking of inventories. Figures for the
corresponding period a year ago show losses of 0.6 and
6.1 per cent, respectively, in employment and am ount of
pay. In the metals and metal products group, a decline
of 2.0 per cent took place in the number of men employed
and of 5.9 per cent in payroll amounts, as against cur
tailments of 4.1 and 8.9 per cent, respectively, a year
ago. The vehicles group, reflecting largely the trend
within the automobile industry, reduced em ployment 3.8
and payrolls 7.4 per cent, continuing the downward move
m ent that began last April. L ast year this group showed
a steady increase in the volume of employment, although
payroll am ounts declined 7.4 per cent during July—simi
lar to the loss reported this year. Groups including the
building materials also continued the downward trend of
previous months, with the losses generally heavier than
a year ago. O nly one group, that of food products, showed
a gain in payrolls as well as in num ber of workers; here
the gains were mostly of a seasonal nature, as in canning
and preserving, and in the m anufacture of beverages, ice,
and ice cream. Flour and cereals, dairy products, and
confectionery showed declines. Groups with increased em
ployment but a curtailm ent in payrolls, were the chemicals,
leather products, and paper and printing.
Reports on employment other than at m anufacturing
plants reflect a slight increase in the demand for labor,
especially for road work and in the coal mines. The ratio
of the number of applicants for positions available at the
free employment offices showed practically no change
during July, registering 113 per cent for Indiana and 231
for Iowa, as compared with 113 and 232 per cent, respec
tively, a month previous.
EMPLOYMENT AND EARNINGS— SEVENTH FEDERAL RESERVE DISTRICT
N um ber
I n d u s t r ia l G ro u ps
W
J u ly 15
1929
Stone, clay, and glass products..............................................................
eek
op
W age E arn ers
E nded
J u n e 15
1929
352,774
138,846
42,432
25,881
43,818
14,291
27,634
10,929
15,357
4,067
29,519
351,919
136,007
40,822
25,482
47,416
14,041
27,401
10,956
15,805
3,971
30,018
T otal E a r n in g s
P er C e n t
C hange
—
—
—
—
-f—
—
-f
+
—
+
0.2
2.0
3.8
1.5
8.2
1.7
0.8
0.2
2.9
2.4
1-7
W
J u l y 15
eek
1'929
$9,770,820
4,110,576
1,175,517
583,967
1,232,570
389,555
630,550
283,257
341,758
81,842.
941,228
E nded
J u n e 15
1929
$10,287,218
4,366,878
1,269,058
632,823
1,177,548
423,360
685,533
287,599
343,143
94,730
1,006,546
P er C e n t
C hange
— 5.0
— 5.9
— 7.4
— 7.7
+ 4.7
— 8.0
— 8.0
— 1.5
— 0.4
—13.6
— 6.5
COAL
Both the domestic and industrial coal m arkets of the
Chicago district remained quiet through June and July,
although greater activity was apparent just previous to
price advances on A ugust 1 for domestic sizes. Screen
ings prices have been steady in recent weeks. July out
put of coal from Illinois mines totaled 3,744,513 tons, iiv
creasing over the 3,318,758 tons produced in June and
over production last July of 3,136,914 tons. T he number
of mines in operation during the month averaged 141, em
ploying 41,475 men for 13.7 days, which compares with
143 mines, 40,904 men, and 12.8 days for June.
Page 4
U nited States output of bituminous coal in July, estim at
ed as 40,635,000 tons, compared w ith 38,073,000 tons in
the preceding month and 36,276,000 tons for July 1928;
the am ount was also greater than in the corresponding
m onth of 1927 but below the 1926 volume. Stocks of bi
tuminous coal in the hands of commercial consumers on
July 1 were smaller than since the fall of 1922, totaling
only 33,100,000 tons, or 3,800,000 tons below the am ount
on hand the first of April and comparing with 41,700,000
tons a year ago. Bituminous coal loaded at Lake Erie
ports during July for distribution to other lake ports ex-
needed the volume of July last year and of 1927; for the
season to the end of July the tonnage was considerably
heavier than in 1928 but only slightly
seven m onths of 1927.
above
the first
MANUFACTURING ACTIVITIES AND OUTPUT
Automobile Production and Distribution—The number
of passenger cars produced in the United States during
July (426,159) declined 5.8 per cent from the preceding
month but was 25.9 per cent greater than for the cor
responding month a year ago.
Truck production of
73,118 fell off 20.0 per cent and gained 37.2 per cent in
the respective comparisons.
A further recession was shown in retail sales of new
cars in July, but the volume sold remained above the level
of a year ago. W holesale distribution in the Middle W est
totaled smaller than in the preceding month or July 1928;
the bringing out of new models by certain of the m anufac
turers effected an increase in aggregate value over June,
but almost two-thirds of the firms reported declines in the
comparison. Used car sales were less than in June and
gained over a year ago. Stocks of both new and used
cars continued to decline, but remained heavier than on
the corresponding date of 1928. Of total retail sales by
forty dealers, 56.1 per cent were made on the deferred
paym ent plan, compared with 51.2 per cent a month previous
and 49.2 per cent for tw enty-tw o dealers last July.
MIDWEST DISTRIBUTION OF AUTOMOBILES
Changes in July, 1929, from previous months
P er C e n t C h a n g e F rom
J
New cars
Wholesale—
Number sold ......... ...
Value ...................... ...
Retail—
Number sold ......... ...
Value ...................... ...
On hand July 31 — ■
Number .....................
Value .............................. ..
Used cars
Number sold ............. ..
Salable on hand—
Number .................. ..
Value ...................... ..
J
u n e
u l y
C o m p a n ie s I nclu d ed
J
u n e
J
u l y
1929
1928
1929
— 3.6
+
6.7
—26.3
—26.7
36
36
24
24
— 9.3
— 9.3
+ 2 4 .4
+
7.8
64
64
40
40
— 14.6
— 20.0
+
+ 4 2 .2
51.0
65
65
41
41
—
6.9
+
2.1
— 10.0
—
+
+
1928
30.6
63
39
47.3
1'5.9
63
63
39
39
Agricultural Machinery and Equipment—A decline of
9.4 per cent in the sales of agricultural machinery and
equipment billed to domestic and foreign customers was
recorded in July from June, the recessions in the three
m ajor groups averaging 6.8 per cent in tractors, threshers,
and combination harvester-threshers, 11.6 per cent in light
machinery, and 14.0 per cent in barn equipment, according
to a compilation for seventy reporting m anufacturers in
the U nited States.
Sales of light machinery expanded 9.1 per cent over a
year ago, those of barn equipment gained 13.5 per cent,
and the volume of business in the heavy machinery line
increased 17.5 per cent.
PRODUCTION AND SALES OF FARM EQUIPMENT IN THE
UNITED STATES
Changes in July, 1929, from previous months
P er C e n t C h a n g e F rom
J u ly
J une
1929
Domestic sales billed............... ...........— 8.4
Sales billed for export........... ......... —13.3
Total sales billed..................... ........ — 9.4
Production .............................. ........ — 6.5
1928
+ 9.4
+ 3 2 .7
+ 13.2
+ 9.6
C o m p a n ie s
I n c lu d ed
70
39
70
69
Production computed from average employment during the month.
Sales based on value.
Iron and Steel Products—The aggregate of orders
received during July by Chicago district steel mills exceeded
the June volume, w ith shipments and specifications slightly
heavier and about equal to each other so that production
continued at the capacity rate of previous months. Con
ditions remain considerably more active than in the same
season of other years. Pig iron production in the Illinois
and Indiana district did not attain the June rate, but was
heavier than in July of previous years, a daily average of
34,912 tons com paring with 25,702 in June and 20,547 last
July. Pig iron output for the U nited States averaged
122,100 tons daily in July, as against 123,908 tons in the
preceding month and 99,091 tons a year ago, while steel
ingot production of 186,080 tons daily compared with
195,255 and 152,224 tons, respectively, a month previous
and last July.
H eavy shipm ents in July reduced the
unfilled tonnage of the United States Steel Corporation
from 4,256,910 tons on June 29 to 4,088,177 tons July 31;
unfilled orders on hand the same date in 1928 aggregated
3,570,927 tons.
The price situation at Chicago remains fairly steady,
plates, shapes, and bars showing no change but with sheet
and wire products prices somewhat weaker. Foundry pig
iron continues steady at $20 per ton. Scrap iron and steel
prices have strengthened in recent weeks.
Shoe Manufacturing, Tanning, and Hides— Preliminary
statistics of the U nited States D epartm ent of Commerce,
contrary to the custom ary trend at this season, show a
gain of 4.7 per cent during July over the preceding month
in shoe production of the Seventh Federal Reserve district.
The tanning of leather in the district increased over June
but aggregated less than a year ago; sales declined in both
comparisons.
Individually, however, half of the firms
reporting to this bank experienced an expansion in produc
tion and sales over the corresponding month of 1928.
Prices continued firm with a num ber of tannages higher
than in June. Chicago trading in packer green hides
increased, while the m arketing of calf and kip skins
decreased in July as compared with a month previous.
Shipments from the city and purchases by district tanneries
were reported as smaller in volume than in June. Q uota
tions for packer green hides and kip skins strengthened at
Chicago during July over the preceding month; prices of
country offerings and of calf skins eased.
Furniture—The usual seasonal gain in orders was
recorded during July; the aggregate volume of new busi
ness booked by tw enty-seven furniture m anufacturers in
the Seventh district increased 30.2 per cent over June, with
nine firms reporting declines in the comparison. The
volume totaled 3.5 per cent below last July, although the
m ajority of companies recorded gains. Shipments were
4.3 per cent less in the m onthly comparison but showed
an increase of 20.5 per cent over a year ago. Unfilled
orders on hand July 31 aggregated 31.8 per cent over the
amount held June 29, and 8.2 per cent over the correspond
ing date of 1928. An average rate of operations for nineteen
firms in July of 77.6 per cent of capacity compared with
81.3 per cent a m onth previous; in the comparison with
July 1928, however, the average increased.
Raw W ool and Finished W oolens—The raw wool m arket
displayed increased activity during July. Sales were in
good volume and prices remained fairly steady at the low
levels. In the comparison with June, sales showed a
marked improvement, and they were also above a year
ago. A report from the Bureau of the Census shows that
stocks of wool in dealers’ hands June 30 were much higher
than on M arch 31 and only slightly below the correspond
ing period of 1928. Stocks held by m anufacturers were
lighter than on M arch 31 or a year ago. M anufacturers
of finished goods in the Seventh district reported slight
increases in production for July, with sales rem aining pracP i |e 5
tically the same as in June. Some activity in the latter
part of the m onth was centered around the formal openings
of 1930 spring staples by the American W oolen Company.
Prices quoted showed reductions from Fall 1929 ranging
from 3 to 14 cents a yard, and from 4 to 16 cents a yard
in the comparison w ith Spring 1929.
BUILDING MATERIAL AND CONSTRUCTION ACTIVITIES
Reports from tw enty-tw o wholesale dealers and m anu
facturers of lumber in the Seventh Federal Reserve dis
trict show a decline in July from June of 0.3 per cent in
dollar sales, with a reduction of 3.7 per cent in the cor
responding board foot volume. Sales in dollars totaled
7.2 per cent larger than for July a year ago, but in board
foot measure were 4.5 per cent smaller. O utstanding
accounts declined 2.5 per cent during the month and were
3.3 per cent lower in the yearly comparison. The ratio
of accounts receivable to sales dropped to 132 per cent
from 137 at the close of June and compared with 143 a
year ago. Stocks on July 31 were approxim ately the
same as a m onth previous but somewhat smaller than
last year on that date. Prices showed a firming tendency.
Sales in dollar units, as reported by 278 retail yards,
aggregated 7.5 per cent less than in June and 16.0 per cent
above the July 1928 figure. O utstanding accounts showed
an increase of 4.5 per cent in the monthly and of 9.5 per
cent in the yearly comparison. The ratio of the accounts
to sales averaged 277 per cent at the close of July, as
compared with 251 and 302 per cent, respectively, a
m onth and a year earlier. Stocks were reported as show
ing little change. Receipts of lumber at Chicago were 1.1
per cent less than in June and 2.6 per cent below those
of a year ago. Shipments out of the city fell off 6.8 per
cent in the m onthly but gained 4.7 per cent in the yearly
comparison.
Building Construction— Contracts awarded in the Sev
enth district during July totaled $106,373,740, or 21.1 per
cent less than in June and 24.4 per cent below the figure
recorded for July 1928. This brings contracts awarded
for the year to date to $745,409,795, a total 10.5 per
cent less than the corresponding valuation a year ago.
Awards for residential construction alone showed declines
of 37.6 and 29.4 per cent, respectively, in the m onthly and
yearly comparison, with a cumulative loss for the first
seven m onths of the year am ounting to 21.1 per cent.
Perm it figures showed an upw ard trend during July in
estimated cost, 104 cities reporting an increase over June
of 11.0 per cent, while for fifty of these cities included in
our index on perm its the gain was 6.4 per cent. In the
comparison with July 19281, a heavy decline was recorded,
am ounting to 24.3 per cent for the fifty cities of the index
and to 18.7 per cent for all reporting cities. T he loss
shown in the yearly comparison reflected the decline in
Chicago where a total valuation of $14,151,000 for July
was less than one-half that of a year ago. Excluding
Chicago, 103 cities registered a gain of 14.1 per cent in
the monthly and of 3.7 per cent in the yearly comparison.
MERCHANDISING CONDITIONS
Wholesale Trade— Declines were shown in July from
June in all reporting lines of wholesale trade except drugs;
the recessions in the grocery and hardware groups, how
ever, were slight, and the m ajority of grocery and dry
goods firms recorded gains in the comparison. Only dry
goods and shoes recorded declines from July last year,
with the m ajority of dry goods firms in this comparison
also reporting increases and half the shoe firms. For the
first seven m onths of 1929, sales in all lines except shoes
gained over the corresponding period of 1928, the increases
being as follows: groceries, 2.3 per cent; hardw are, 7.8
per cent; dry goods, 7.4 per cent; drugs, 2.3 per cent; and
electrical supplies, 21.6 per cent. T he decline in shoes av
eraged 0.6 per cent. Prices in drugs, dry goods, and
shoes remained steady during July, those in the grocery
line were firm to upward, while the trend in hardw are and
electrical supplies was steady to downward.
WHOLESALE TRADE DURING THE MONTH OF JULY, 1929
Net Sales During Month
t»er C e n t
P r ec ed in g
M onth
Groceries ...............
Hardware .............
Dry Goods ...........
Drugs .....................
Shoes ............... ......
Electrical Supplies
C h a n g e F rom
S am e M o n th
L ast Y ear
(3 4 )— 0.3
(1 4 )— 1.3
(1 0 )— 6.2
(15)4- 5.1
( 8 )—23.3
(3 9 )— 3.4
(35)4- 9.4
(14)4-15.7
(1 0 )— 2.0
(15)4- 6.7
(8 ) — 7.2
(39)4-18.4
Stocks at End of Month
p er C e n t
P r ec ed in g
M on th
C h a n g e F rom
S am e M o n th
L ast Y ear
(2 4 )— 3.4
(1 0 )— 2.5
(8)4-12.6
(12)4- 4.6
(6)4-12.3
(3 2 )— 0.2
(2 3 )— 12.6
(10)4- 6.8
(8)4- 3.2
(12)4- 0.1
(6)4- 2.1
(32)4-26.8
Accounts Outstanding End of Month
P er C e n t C h a n g e F rom
R a t io to
P r e c ed in g S a m e M o n t h
N et S ales
M o n t h L ast Y ear D u r in g M o n t h
(3 1 )—
(1 4 )—
(1 0 )—
(13)4(7 )—
(3 9 )—
2.5
2.6
1.5
0.5
3.6
0.6
(3 2 )— 5.8
(14)4- 7.6
(10)4- T.3
(13)4- 0.4
(7)4- 4.5
(39)4-26.8
(32)
(14)
(10)
(13)
(7)
(39)
91.4
.196.4
319.2
137.2
364.5
137.8
Collections During Month
” er C e n t C h a n g e F rom
P r e c ed in g S a m e M o n t h
M on th
L ast Y ear
( 2 8 ) + 2.5
(10)4- 4.0
(9 )— 3.3
( 8 )— 1.0
(6 )—2T.4
(2 8 )— 2.7
(27)4-10.1
(11)4- 7.2
(9)4-10.6
(8)4- 4.2
(6 ) — 10.6
(27)4-20.3
Figures in parentheses indicate number of firms included.
Department Store T rade—July sales of 115 departm ent
stores in the Seventh district declined seasonally 22.3 per
cent from the June aggregate, though showing an increase
of 0.8 per cent over a year ago. Gains of 5.7, 3.2, and 2.6
per cent in the latter comparison for Detroit, Indianapolis,
and Milwaukee stores, respectively, were largely counter
acted by a decline of 0.9 per cent recorded in the Chicago
total and of 3.2 per cent in that for sixty-three stores in
smaller centers. In the first seven months of 1929, depart
ment store trade in the district has averaged 3.8 per cent
above the same period of 1928, sales in the larger cities
effecting the increase shown, as the total for the smaller
centers was slightly less than a year ago. A decline of
Page 6
1.3 per cent had taken place in stocks on hand between
the end of June and July 31, but the volume was 3.7 per
cent above the corresponding date last year. F o r the year
so far, stock turnover has averaged 2.17 times against 2.16
for the same period of 1928; the rate for the m onth of
July was .26, or the same as a year ago. July collections
totaled 5.6 per cent less than a m onth previous, though
increasing 14.0 per cent over last July, while accounts
receivable the end of the month declined 9.4 and gained
9.2 per cent in the respective m onthly and yearly com
parisons. Collections averaged 38.6 per cent of accounts
receivable the end of June, compared with 37.8 per cent
for the same period a year ago.
Chain Store Trade—The number of stores operated by
tw enty-tw o chains continued to gain in July, increasing
0.3 per cent over June, but aggregate sales fell off 4.0 per
cent and average sales per store were 4.3 per cent less.
The 2,674 units operated during July represented an expan
sion of 15.3 per cent over the corresponding month of 1928,
while total sales were 14.4 per cent larger and average sales
per store 0.7 per cent smaller. Cigar, grocery, and drug
chains were the only groups to record gains in sales over
the preceding month, with five-and-ten-cent, shoe, musical
instrum ent, furniture, and men’s and w omen’s clothing
chains showing declines; in the comparison w ith a year
ago, the grocery, drug, five-and-ten-cent, cigar, furniture,
and women’s clothing groups had larger aggregate sales.
Other Retail Trade—A seasonal decline of 27.9 per cent
from June took place in aggregate July sales of tw entysix retail shoe dealers and the shoe sections of tw enty-tw o
departm ent stores in the district; the volume sold totaled
4.4 per cent more, however, than for the corresponding
m onth last year.
The m ajority of departm ent stores
recorded declines in the latter comparison. Sales for the
seven months of 1929 have aggregated 5.6 per cent greater
than for the same period of 1928. A reduction of 9.8 per
cent was shown in stocks on July 31 from a month
previous, but the volume held was 0.6 per cent heavier
than a year ago. Dealers reported July collections as 1.8
per cent larger than for June and 8.9 per cent above last
year, while accounts receivable the end of the month fell
off 5.0 per cent in the m onth-to-m onth comparison and
increased 7.4 per cent over July 31, 1928. Accounts receiv
able averaged 66.1 per cent of July sales, compared with
a ratio of 65.1 per cent for June and 62.7 per cent a
year ago.
Sales of furniture in July likewise showed the custom ary
downward trend. T he volume of furniture and house
furnishings sold during that m onth by tw enty-four dealers
and tw enty-six departm ent stores totaled 14.4 per cent less
than a month previous, though exceeding sales in July
last year by 9.2 per cent. Sales made by dealers on the
installm ent plan fell 5.9 per cent below June but aggregated
9.7 per cent more than a year ago. Stocks on hand the
end of the month recorded little change from June 29 or
from the corresponding date of 1928. D ealers’ collections
increased 1.7 per cent in July over June and 4.4 per cent
over July last year, with installm ent collections declining
1.2 and gaining 0.2 per cent in the respective comparisons.
Accounts receivable July 31 were 4.6 per cent less than
at the end of June, but 2.5 per cent larger than a year ago.
In line with other phases of retail trade, July sales of
102 retail hardware dealers in the five states including the
Seventh district, declined 2.2 per cent in the aggregate
from June, but gained 12.7 per cent over a year ago, with
sales for the seven m onths of the year 2.6 per cent above
the same period of 1928. In the m onth-to-m onth com
parison, W isconsin furnished the single exception to the
downward trend, the volume of merchandise sold by dealers
in that state totaling 20.9 per cent greater than in June;
Illinois recorded a decline of 4.8 per cent, Indiana of 18.9
per cent, Iowa 18.6, and Michigan 9.6 per cent. As com
pared with July last year, sales in Illinois gained 1.5 pei
cent, in Michigan 10.6 per cent, and 33.8 per cent in W is
consin, while Indiana and Iowa showed declines of 2.8
and 2.3 per cent, respectively. Sales in the last two states
likewise have totaled less for the year to date.
M O N TH LY B U SIN E SS IN D IC ES COM PUTED BY FED ER A L R ESER V E BA N K OF CHICAGO
(In d ex numbers express a comparison of unit or dollar volume for the month indicated, using the monthly average for 1923-1924-1925 as a
unless otherwise indicated. Where figures for latest month shown are partly estimated on basis of returns received to date, revisions will be
the following month. D ata refer to the Seventh Federal Reserve D istrict unless otherwise noted.)
June
: July June July
No. of July June July
1928
1929
1929
1928
Firms 1929
1929 1928
Wholesale Trade—
Meat Packing— (U . S .)112.3
Net
Sales
(in
dollars)
:
121.0
111.6
...
59
120.5
Sales (in dollars) .....
Groceries ....................................................... 37 100.3 100.6
95.8
Casting Foundries—
88.3
Hardware ..................................................... 15 102.2 104.1
Shipments :
77.4
..................................................
10
Dry
Goods
82.6
79.0
82.9
72.8
Steel— In dollars ....
.. 15 101.1 101.3
98.1
92.7
90.7
D rugs ..................................
12
... 15 111.1 109.0
71.6
82.9
71.6
Shoes .................
8
93.3
77.1
71.2
84.0
60.8
... 17
81.5
Malleable— In dollars .....
Retail Trade (D ept. S tores)—
98.9
94.9
... 15 121.8 120.4
In tons ..........
Net Sales (in d o lla rs):
Stoves and Furnaces—
76.7 105.0
77.4
Chicago ......................................................... 30
95.3
98.4
86.8
... 11 111.4
Shipments (in dollars) ........
Detroit ......................................................... 4 119.5 162.4 109.3
Agricultural Machinery
82.6 100.5
80.0
Indianapolis ................................................ 5
& Equipment— (U . S .)88.0 113.8
84.3
Milwaukee .................................................. 5
.. 83 219.6 233.3 206.1 222.5
Domestic Sales (in dollars)
78.7
96.7
Outside ....................................... _............... 53
82.2
... 56 260.0 275.3 241.0 202.7
Exports (in dollars) ............
86.1 114.0
84.7
Seventh District ........................................ 97
.. 83 229.7 240.1 211.7 219.3
Total Sales (in d ollars)......
Retail Trade— (U . S .)—
... 82 159.5 174.2 142.5 142.6
80
106
Department Stores ........................................ 527
78
Chain S tores:
Furniture—
Grocery
...........................................................
34
227
222
199
73.6
97.0 129.1
.. 27 125.3
Orders (in dollars!
197
Drug ............................................................... 13 204
164
79.0
91.0
94.4
76.3
... 27
Shipments (in doll
161
Shoe ............................................................... 7 120
116
Electric Energy128
Five and Ten Cent..................................... 14 146
153
.. 8 149.7 147.4 142.1 137.7
Freight Carloadings— (U . S .)—
.. 8 207.0 199.4 181.7 169.9
Industrial Sales
143.1
96.7 118.5
Grain and Grain P roducts.........................
Flour—
71.7
71.2
Live
Stock ....................................................
71.5
92.0
89.8
87.6
94.3
.. 32
Production (
90.9
91.7
86.8
Coal
...................................................................
O utput of Butter by Creameries—
101.4
77.0
101.5
Coke .................................................................
... 74 162.1 177.7 156.7 170.7
90.0
98.1
87.7
Forest Products ............................................
.. 74 132.0 137.2 130.9 132.5
203.9 197.5 167.7
Ore ..... ....................... ......................................
Iron and Steel—
117.0 116.8 114.0
Merchandise and Miscellaneous................
Pig Iron Production
113.3 111.4 107.6
Total .............................................................
143.7 148.3 118.5 122.1
Illinois and Indiana...........................
Building Construction—
124.3 126.2 100.9 104.6
U nited States ......................................
Contracts awarded (in dollars) :
139.6 146.5 114.2 108.1
Steel Ingot Production— (U . S .)1—.
125.2 200.8 177.3
Residential ..................................................
76.2
74.8
89.1
85.6
Unfilled orders U. S. Steel Corp.......
155.3 196.9 205.4
Total .............................................................
Automobile Production (U. S . ) :
Permits :
144.6 153.6 114.8 120.9
Passenger cars ........................................
40.0
52.8
34.5
Chicago .......................
206.9 258.6 1'50.8 113.7
Trucks ...................... .................................
51.6
50.4 105.8
Cost......
Stamp Tax Collections—2
62.2
61.5
68.5
583.5 332.9 137.8 202.5
Sales or Transfers of Capital Stock.....
Cost.....
62.3
90.0 122.7
134.3
81.6
75.4
8 6 .6
Sales of Produce on Exchange— Futr :S
69.1
69.6
54.6
Des Moines ...............
123.6
54.5
Cost......
71.5
U. S. Primary Markets— 2
79.5
84.9
73.3
Detroit ........................
Grain Receipts :
34.0
33.4
40.8
50.3
83.6
Cost.....
73.3
90.9
Oats .......................................................
86.0
106.4 109.1
97.1 114.7
85.0
98.1
Milwaukee .................
Corn ............................... - .....................
140.8
95.9
Cost.....
77.5
284.8
76.2 226.4
44.9
W heat ....................................................
98.6 101.9
97.4
Others (4 5 ) ............. ................. Number
Grain Shipm ents:
38.1
21.2
39.4
111.0 112.5 116.7
37.9
Cost.....
Oats ......................- ..................- ..........
76.2
86.1
89.5
81.9
65.9
88.6
73.8
Fifty Cities ...............
Com .........................................................
78.4
44.5
73.7 103.7
Cost.....
54.5 100.3
127.6
W heat .....................................................
’Average daily production; ’First Illinois internal revenue district; ’Monthly average receipts 1923-24-25 = 100.
base,
given
June
1928
101.5
97.0
80.6
98.3
99.1
108.5
143.3
94.6
108.5
98.0
111.6
104
207
162
147
139
75.5
76.4
84.8
80.7
92.5
171.9
110.5
103.8
170.2
187.8
66.9
93.7
72.3
105.3
59.8
113.7
89.6
84.5
101.7
101.8
111.6
105.8
95.3
95.5
Page 7
IN D U S T R IA L
NATIONAL SUMMARY OF BUSINESS CONDITIONS
P R O D U C T IO N
( By the Federal Reserve Board)
N D U S T R IA L production decreased slightly during July, but continued
Iprices
at a higher level than in other recent years. W holesale commodity
increased further during the month, reflecting chiefly higher prices
of agricultural products. Loans for commercial and agricultural purposes
by reporting member banks increased during July and the first half of
August.
P r o duction
In d e x n u m b e r of p ro d u c tio n of m a n u f a c tu re s
a n d m in e r a ls co m b in ed , a d ju s te d fo r se a so n a l
v a r ia tio n s (1 9 2 3 -2 5 a v e r a g e = 100).
L a te s t
figure, Ju ly , 1929: 124.
WHOLESALE
(1926 =
1 00).
P R IC E S
O utput of m anufactures decreased in July, while mineral production
increased. Average daily output of automobiles, copper, tin, zinc, and
cotton and wool textiles decreased, and there was a small decline in the
production of iron and steel. In all of these industries, however, output
was larger than in the same m onth in earlier years. Activity increased
during July in silk and shoe factories and in m eat packing plants, and
there was also a larger output of bituminous coal and crude petroleum
than in June. Reports for the first half of A ugust indicate sustained
activity in the iron and steel and automobile industries, and a further
increase in the output of coal and petroleum.
Employm ent in m anufacturing industries decreased in July by less than
one per cent, while a somewhat greater decrease in payrolls was reported.
At this level, factory employment and payrolls, as in earlier m onths, were
larger than in any other year since 1926.
Value of construction contracts awarded in July was higher than in the
preceding month or in July 1928, reflecting chiefly a sharp increase in
contracts for public works and utilities. For the first half of August,
however, total contracts declined to a level below the corresponding
period a year ago.
The A ugust estimate of the D epartm ent of A griculture indicates a
wheat crop of 774,000,000 bushels, slightly below the five-year average,
and 128,000,000 bushels below last year’s production, and a corn crop
approxim ately equal to the five-year average crop, or about 100,000,000
bushels smaller than in 1928. The cotton crop is estimated at 15,543,000
bales, 7 per cent larger than last year.
L a te s t fig u re, J u ly , 1929: 98.0.
MEMBER
BANK
C R E D IT
D is t r ib u t io n
Freight carloadings increased seasonally during July and the first two
weeks of August, reflecting chiefly increased loadings of coal, grain, and
ore, while shipments of miscellaneous freight continued in about the same
volume as in June.
Sales of departm ent stores declined seasonally from June and on a
daily basis were about the same as in July a year ago.
P r ic es
1927
1928
1929
M o n th ly a v e r a g e s o f w e e k ly fig u res fo r r e
p o rtin g m e m b e r b a n k s in le a d in g c ities. L a te s t
fig u res, a v e r a g e s o f firs t th r e e w eek s in A u g u s t,
1929: L o a n s on S e c u ritie s, 7,602 m illion; A ll O th er
L o a n s, 9,380 m illion; I n v e s tm e n ts , 5,513 m illion.
MONEY
RATES
W holesale prices in July continued the rise which began in June,
according to the index of the Bureau of L abor Statistics, reflecting
chiefly higher prices for farm products and their manufactures, particularly
live stock and meats, grains and flour, and potatoes. Prices of hides
and leather also increased. W ool, rayon, and textile products declined
slightly in price. T here was a marked advance in the price of sugar, and
rubber prices also rose somewhat. Prices of petroleum and gasoline
declined and prices of iron and steel were somewhat lower.
D uring the first three weeks in August there were declines in the prices
of cotton, petroleum, beef, sugar, oats, rubber, and tin, and marked
fluctuations in prices of pork and wheat.
B a n k C redit
1925
W26
1927
1928
1929
M o n th ly r a t e s in th e o pen m a r k e t in N ew
Y ork: c o m m e rc ia l p a p e r r a t e on 4- to 6 -m o n th
p a p e r, a n d a c c e p ta n c e r a t e on 9 0 -d a y b a n k e r s ’
a c c e p ta n c e s . L a t e s t fig u res, a v e r a g e s of first
24 d a y s in A u g u s t, 1929: C o m m e rc ia l P a p e r
R a te , 6.08 p e r c e n t, A c c e p ta n c e R a te , 5.13 p e r
cen t; N. Y. R e se rv e B a n k D isc o u n t R a te , 6 p e r
cen t.
Pave 8
Loans for commercial purposes by reporting member banks increased
to new high levels during the four weeks ending A ugust 14, while
security loans, after increasing further during the latter part of July,
declined during the first two weeks in August.
Member bank borrowing at the reserve banks averaged $45,000,000 less
during the week ending A ugust 17 than in the week ending July 20,
reflecting increased sales of acceptances to the reserve banks, and further
imports of gold.
Open-m arket rates on call and time loans on securities were firmer
during the last half of July and the first week of August. D uring the
second week of A ugust rates on call loans declined, while rates on com
mercial paper in the open m arket advanced from 6 to 6 - 6 per cent. On
August 8 the discount rate of the Federal Reserve Bank of New Y ork was
increased from 5 to 6 per cent and the buying rate on bankers’ acceptances
was reduced from 5J4 to the m arket rate of 5 % per cent.
@FedFRASER