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FED E R A L R E S E R V E BANK O F RICHMOND General Business and Agricultural Conditions in the Fifth Federal Reserve District By CALDW ELL H ARD Y, Chairman and Federal Reserve Agent RICHMOND, VIRGINIA, APRIL 29, 1922. NATIONAL SUMMARY * Pronounced increase of activity has been char acteristic of many basic lines of industry during the past month. It has been particularly notice able in the metal working industries, while metal mining operations have also reflected the tend ency to an upward movement. In steel and iron manufacture it is now estimated that, taking the industry as a whole, about seventy per cent of plant capacity is being utilized. The automobile trade has shown a very decided gain. Active demand for building materials has had a fav orable effect not only upon the metals but also upon other lines of industry. The total value of building permits for March was almost twice as great as that for February and more than twice as great as that for March, 1921. The lumber industry has notably expanded operations. In cotton textiles the month has been much less en couraging. There has been a reduction in mill activity, largely due to the widespread strikes in the New England Districts. On the other-hand, demand for cotton goods has been fairly well sus tained. Boots and shoes have shown great ir regularity as between different producing dis tricts. Very much the same is true of the woolen manufacture. A conspicuous development has been the shifting of demand from worsteds to woolens. Leaving out voluntary unemployment, the result of strikes, added increase in the num ber of employees at work is noted. There has been a 2.5% increase during the month in the number of workers employed by firms report ing to the United States Employment Service. The improvement noted will, however, be off set to some extent by the widespread unemploy ment in the coal mining industry as well as in the New England textile centers. Wholesale and retail trade have reflected to some extent the improvement in industrial conditions. Such improvement is in part seasonal, but it also con tains an element of growth due to better busi ness conditions. Agriculturally the month has not been altogether promising. Spring planting has been retarded by the cold weather and con tinued rains. Prices continued relatively stable. The Federal Reserve Board’s wholesale price in dex for March advanced one point. Interest DISTRICT SUMMARY. There can be no serious doubt that the eco nomic and industrial forces working to bring about a restoration of general business activity are getting the upper hand over the deterrent factors. In spite of the uncertainty over the outcome of the tariff situation, and in spite of the coal strike, the New England textile strike, and high freight charges, March reports show a distinctly upward trend in general busi ness. Eighty-one regularly reporting member banks, located in thirteen cities of the Fifth District, have further reduced their rediscounts, and have increased their demand and time deposits and both their reserves and cash in vaults. Bills held by the Reserve Bank have continued to diminish, and the reserve ratio has correspondingly in creased. In consequence the Bank reduced dis count rates on all classes of paper from 5% to 4J^%, this reduction having gone into effect April 14. Debits to individual account in leading trade centers are higher than a month ago, and even exceed those of last year, reflecting the growth of banking transactions. The labor sit uation is distinctly improving. The outlook for textiles is thought to be good, though at present the industry is marking time. Farm product prices are holding the gains made in the past few months, and so far as can be judged at this season the prospects for this year are good. The pros pect for a full fruit crop this year is excellent. Building operations are very active, and as a re sult building materials are in strong demand. Wholesale and retail trade is responding to the general improvement, and Easter business was not unsatisfactory. Collections are at least hold ing their own, and are perhaps showing some im provement. rates have continued on a very low basis with slight tendencies to decline. An apparent shrink age in the use of commercial credit has been indicated by further falling off in the rediscounts of the Federal Reserve Banks, although an up ward movement is again to be noted in the loans and discounts of member banks in many parts of the country. * The National Summary supplied by the Division of Analysis & Research of the Federal Reserve Board. CONDITION OF EIGHTY-ONE REPORTING MEMBER BANKS IN SELECTED CITIES ITEMS 1. Total Loans and Discounts (exclusive of rediscounts) _________________ $ 2. Total Investments in Bonds and Se curities ____________________ ____ 3. Total Loans and Investments_______ 4. Reserve Balance with Federal Re serve Bank _____________________ 5. Cash in Vaults _____________________ 6. Demand Deposits __________________ 7. Time Deposits ----------- --------------------8. Discounted with Federal Reserve Bank April 5, 1922 ] 417,045,000 March 1, 1922 $ April 1, 1921 $ 415,055,000 434,005,000 113.096.000 530.141.000 116,066,000 531.121.000 125.774.000 559.779.000 32.788.000 13.691.000 305.482.000 134.147.000 31.032.000 31.905.000 13.409.000 300.890.000 129.411.000 35.273.000 33.250.000 14.010.000 315.619.000 117.412.000 73.255.000 The table above shows the principal items of condition reported by eighty-one identical member banks as of the close of business April 5, 1922, March 1, 1922 and April 1, 1921, thus affording com parisons of the April 5 figures with those reported a month ago and those reported a year ago. All items are comparable for the three dates, but the figures given are not comparable with those pub lished in previous issues of our Review, one of the banks that reported heretofore having been pur chased by, and merged with, a non-member bank. Between April 1, 1921 and April 5, 1922, all items in the table show decreases except item num ber seven, Time Deposits, which shows an increase of $16,735,000 or 14.3%, within the year. Be tween the two dates, Total Loans and Discounts decreased from $434,005,000 to $417,045,000, a con traction of $16,960,000, or 3.9% ; Total Investments in Bonds and Securities decreased from $125,774,000 to $113,096,000, a drop of $12,678,000, or 10.1%: Reserve Balance with Federal Reserve Bank de creased from $33,250,000 to $32,788,000, a decline of $462,000, or 1.4%; Cash in Vaults decreased from $14,010,000 to $13,691,000, a decline of $319,000 or 2.3%; Demand Deposits decreased from $315,619,000 to $305,482,000, a decline of $10,137,000, or 3.2%; and Rediscounts with the Federal Reserve Bank de creased from $73,255,000 to $31,032,000, a decline of $42,223,000, or 57.6%. A comparison of the figures for April 5, 1922, with those reported for March 1, 1922, shows in creases within the month in Total Loans, Reserve Balance, Cash in Vaults, Demand Deposits and Time Deposits, and decreases in Total Investments and in Rediscounts with the Reserve Bank. The in crease in loans is a normal development at planting time, and the decrease in investments is a result of the approach of Government securities to par. The increases in demand and time deposits are notable, and the increase in reserve balances naturally follows the growth in deposits. The decrease in rediscounts reflects in part the easier credit conditions of the District, and in part represents trans fers to the War Finance Corporation. DEBITS TO INDIVIDUAL ACCOUNT IN LEADING TRADE CENTERS For the W eek Ending CITIES April 5, 1922 | March 1, 1922 Asheville, N. C.*---------------------------------- $ Baltimore, M d . _— — ---------------------Charleston, S. C. _ -------------------- ------- ! Charleston, W . Va. ----- ---------- -------- ! Charlotte, N. C . ----------------------------------- ! Columbia, S. C. — ------------------------- ! Cumberland, M d . -------------------------------- 1 j Danville, V a . ------- -----------------------Greensboro, N. C. — — ----------------- — ! Greenville, S. C . -------------------------------— Hagerstown, Md. -----------------------------Huntington, W . Va. -------------- ------------Lynchburg, Va. ---------------------------------Newport News, Va. ---------------------------Norfolk, V a . ----------------------------Raleigh, N. C . ----- - — -----------Richmond, V a . ---------- ---------------Roanoke, V a . ___________ _______ _ — Spartanburg, S. C . ----------------- -----------Washington, D. C . --------------------— Wilmington, N. C . -----------------------------Winston-Salem, N. C . -------- ----------------- 4,058,000 92,773,000 6,480,000 6,581,000 6,095,000 7,368,000 1,907,000 2,230,000 4,088,000 3.279.000 2.672.000 4.523.000 4.526.000 1.712.000 16,688,000 3.600.000 27.898.000 5.272.000 1.975.000 44.219.000 6.044.000 5.736.000 $ Totals for 11 c itie s -------------------- $ Totals for 21 cities----------------- 1 218,967,000 255,666,000 $ * Asheville, N. C., not included in totals. 93^055,000 5.500.000 7.468.000 6.737.000 5.574.000 1.845.000 2.204.000 3.310.000 3.669.000 1.730.000 4.461.000 4.059.000 1.651.000 14.170.000 4.100.000 29.518.000 4.858.000 1.885.000 39.176.000 4.475.000 5.372.000 210,435,000 244,817,000 | April 6, 1921 $ 99^691,000 7.263.000 ~~ 5 756,000 ~ 4.949.000 3.177.000 14.152.000 4,000,000 24.628.000 loj?5~000 6.132.000 $ 215,316,000 The table presented herewith shows debits to accounts of individuals, firms and corporations re ported by the banks in twenty-one cities of the Fifth Reserve District during- the weeks ending April 5, 1922, and March 1, 1922, together with debits reported for eleven of the same cities for the week ending April 6, 1921. In addition, figures for Asheville, N. C., are shown for the week ending April 5, 1922, this city having begun reporting debits totals since our Review for February was issued. A comparison of the debits reported from eleven cities for the weeks ending April 6, 1921 and April 5, 1922, shows an increase within the year from $215,316,000 to $218,967,000, a gain of $3,651,000, or 1.7%. This increase shows the growing volume of business that is steadily becoming apparent in nearly all lines of trade. Increases during the 1922 week over the 1921 week were shown by Char lotte, N. C., Columbia, S. C., Greenville, S. C., Norfolk, Va., Richmond, Va. and Washington, D. C. In comparison with the week ending March 1, 1922, the figures from twenty-one cities for the week ending April 5, 1922, show an increase of $10,849,000, or 4.4%. Part of this increase between the two dates is seasonal, the April 5 figures including a considerable volume of quarterly payments in ad dition to the regular end-of-month payments that are included under both dates. All of the twenty-one cities show increases for the April date over the March date except Baltimore, Charleston, W. Va., Charlotte, N. C., Greenville, S. C., and Raleigh, N. C. FEDERAL RESERVE BANK OPERATIONS. Between March 15, 1922 and April 12, 1922, Cash Reserves held by the Federal Reserve Bank of Richmond rose from $81,840,834.14 to $89,187,283.53. Between the same two dates, Total Member Bank Reserve Deposits decreased from $55,176,242.22 to $53,648,262.26. Total Bills on hand fell from $75,332,726.27 to $65,822,315.56, and Federal Reserve Notes in Actual Circulation declined from $92,946,709 to $92,189,450. The ratio of total reserves to Deposit and Federal Reserve Note Liabilities combined was 54.62% on March 15, 1922, but rose to 60.13% on April 12, 1922. On April 15, 1921, this ratio was 41.21%. Effective April 14, 1922, the Federal Reserve B,ank of Richmond reduced its discount rate on all classes of paper from 5% to 4 ^ % , this reduction toeing made possible by the steady decrease in redis counts at the Reserve Bank, giving evidence of easier credit conditions throughout the greater part of the Fifth District. BUSINESS FAILURES IN THE TWELVE FEDERAL RESERVE DISTRICTS MARCH 1922 AND 1921. City and District Number 1922 1921 Boston, F ir s t __________________ New York, S e c o n d ____________ Philadelphia, T h ir d ____________ Cleveland, Fourth _____________ Richmond, Fifth ______________ Atlanta, S ix t h _________________ Chicago, Seventh __________ — St. Louis, E ig h th ______________ Minneapolis, N in th ____________ Kansas City, Tenth __________ Dallas, E leven th _______________ San Francisco, Twelfth_________ 217 478 96 202 215 221 336 173 103 100 107 215 88 248 63 88 123 152 138 108 27 66 98 137 Totals ___________________ 2,463 l 1,336 Liabilities Per Cent Increase 146.6 92.7 52.4 129.5 74.8 45.4 143.5 60.2 281.5 51.5 9.2 56.0 84.4% 1922 $ 8,066,696 14,656,044 6,848,734 4,159,463 3,787,550 5,559,986 13,189,340 2,529,541 3,764,602 1,720,146 2,121,725 5,204,365 $ 71,608,192 1921 $ Per Cent of Increase or Decrease 8,259,999 30,836,832 1,082,419 2,767,384 2,918,460 2,397,390 3,438,805 5,273,193 703,571 4,189,798 2,702,583 2,838,475 $ 67,408,909 2 .3 52.5— 532.7 503 29.8 131.9 283.5 52.0— 435.1 58.9— 21.5— 83.4 | 1 6.2% | The monthly summary of business failures furnished to us by Dun’s Review, reproduced herewith in tabular form, shows that March was another disastrous month for weak firms. Total bankruptcies in the United States numbered 2,463 compared with 1,336 in March, 1921, an increase this year of 84.4%. Total liabilities involved increased only 6.2%, however, thus sharply reducing the average liability per failure. In the Fifth District, specifically, March, 1922, witnessed 215 failures compared with 123 in March, 1921, an increase this year of 74.8%. Liabilities in March of this year totaled $3,787,550 compared with $2,918,460 last year, an increase this year of 29.8%. With the single excep tion of January, 1922, the number of failures in March was the greatest reported during any month since the Reserve Banks began tabulating the report, but in liabilities involved, March, 1922, was exceeded by January, November and December, 1921, and by both January and February of this year. All of the twelve Reserve Districts show more insolvencies this year than last, but lower liabilities are reported for March, 1922, than for March, 1921, by the Boston, New York, St. Louis, Kansas City and Dallas Reserve Districts. The average liability per failure fell from $50,455 for the nation and $23,727 for the Fifth District during March, 1921, to $29,073 for the nation and $17,616 for the Fifth District during March, 1922. LABOR—The coal strike is of course the outstanding development in labor circles since our latest Review was written, the effects of the strike being felt most strongly in West Virginia, though that state has probably been less hurt than most coal producing states, many of the West Virginia mines being non-union. A strike on the Western Maryland railroad, centering around Hagerstown, has in volved about 600 men, and has caused some disturbances and bitterness. But in spite of these new de velopments, in which the unemployment is voluntary on the part of the workers, evidence is accumu lating to show that the low point in employment has been passed, and that the number of unem ployed is steadily lessening. Before the coal strike began, the railroads were gradually reinstating the employees they had previously laid off. The shipyard at Newport News has added additional men in recent weeks, and approximately 1,000 men will probably be taken on soon for work on the Leviathan, which is expected to give employment to 1,500 men for a year. The American Locomotive Company is preparing to resume operations at its Richmond plant in the near future, sufficient repair and new work on locomotives having been secured to justify reopening the shops. This Company usually em ploys about 3,000 men at the Richmond plant when operating full time. An important firm writes us from Bluefield, W. Va., that “ We have very few people out of employment a Washington, D. C., report informs us that “All of the mechanics in the building trades are employed and there is a short age at the present time of bricklayers and in several other branches of the trade ;” a Lynchburg, Va., manufacturer writes, “ We are taking on some new men, and have a full complement of our old men at w ork ;” a Frederick, Md., report states that “ Business throughout our city is very good, and there is very little u n e m p lo y m e n ta Winston-Salem, N. C , correspondent informs us that “ The supply of help is abundant but there is no suffering for want of work that I can find in any direction;” and a writer from Franklin, Va., says, “ There does not seem to be any large surplus of unemployed people in and around this section.” The Public Employment Bureau in Richmond reports that “An increase was noted in the demand for men as general office clerks, butlers, chauffeurs, machine operators, un skilled white men for factory work, and skilled help, especially carpenters, slatters, tinners, metal workers and automobile mechanics. The demand for common labor was greater this month than for any month since the beginning of business depression in the fall of 1920.” TEXTILES—Recent developments in the textile industry of the Fifth District have not borne out the promises of earlier months of this season. The president of one of the large groups of mills in the Carolinas writes us that conditions in his business are not encouraging. He says that the market for dry goods has not been active and the country at large appears unwilling to absorb any large quan tities of textiles at prevailing prices. Another official states, however, that in spite of apparent set backs the business is gradually improving. A firm selling cotton mill machinery and supplies reports that the demand for supplies for machines already placed “ is what might be termed normal, but we are having .practically no business in the way of selling new machines.” The mills in the textile manufacturing section of this district are running approximately full time, but as the quotations above indicate, orders are not sufficient to take the output of the mills. The manufacturers contend that they are making very small profits. A certain amount of export sales in heavy and medium weight goods has recently given some encouragement to hope that things will gradually grow better. It ap pears that the best that can be said for the textile industry at this time is that it is marking time. TOBACCO—Practically the only tobacco markets in the Fifth District that were open during March were in Virginia. The following is a report issued by the Commissioner of Agriculture of Vir ginia for March, 1922: “ There were 3,574,886 pounds of tobacco sold for producers during March. Bright tobacco totaled 2,712,491 pounds, and dark 862,395 pounds. All markets have closed for the season ex cept Farmville, Bedford and Richmond. The revised report shows that producers’ sales for the season to April 1, 1922, amounted to 95,334,000 pounds, against 179,580,000 pounds last year, which was the largest crop on record. There are probably not over 1,500,000 pounds of tobacco still in the hands of the producers, so the total production for 1921 has been only 54 per cent of the 1920 crop. This heavy reduction was caused by a smaller acreage planted and a reduced yield per acre due to the unfavorable season. “ Prices declined during March largely owing to the poor quality of the tobacco sold. The average price of dark tobacco for March was$14.80 per hundred compared with $18.74 for February and $9.76 for March, 1921. Practically all the bright tobacco sold during March be longed to the medium and common grades, therefore, the average price was very low, being only $8.35 per hundred, against $13.98 for February, and $16.07 for March, 1921. “ The March sales consisted largely of the lower grades and only a few dark markets re ceived any quantity of good tobacco. The warehousemen estimated that the March sales aver aged 8 per cent good, 28 per cent medium, and 64 per cent common, while the February sales averaged 16 per cent good, 29 per cent medium, and 55 per cent common.” One of the leading leaf dealers in the District writes us as follow s: “ The leaf tobacco trade is in a far more healthy condition than it has been in the past two years and we think is gradually improving each month. Much liquidation has taken place on the part of the tobacco dealers; many of them have had to take severe losses, but so far we have heard of no failures and do not believe now that there are likely to be any disturbances of this character. The 1921 crop of tobacco is all sold and in the hands of either the manufactur ers or dealers and for the most part it has been absorbed by the manufacturers. Business is fairly good and prices are satisfactory ” There is a very active movement on foot to market most of this year’s tobacco crop through a Co-operative Association, and opinion as to the outcome of the plan is divided. One firm of leaf to bacco dealers writes us that “ We do not think the co-operative plan of selling bright tobacco will be a success, but it can terribly disorganize the tobacco business for one or two years.” Another dealer, considering the matter more carefully, informs us that the movement is headed by a “ very strong board of banker directors. The movement has many obstacles to overcome, and will encounter many difficulties, but so far the management has used marked discretion in every step. In the dark belt of Virginia we think the Association will be equally as strong, or stronger, than in the bright belt. Very able men have been selected to manage the two belts. Every move of the Association is being watched with more than passing interest by the trade and the public generally, for the tobacco crop is one of the largest money crops of the two Carolinas and Virginia, and North Carolina especially is vitally interested in that crop.” COTTON—After reacting against the low price of the first week of February, spot cotton turned downward again during the second week in March, and gradually fell from an average of 17.11 cents per pound, middling basis, for the week ending March 4, to 16.41 cents for the week ending April 1, but then turned upward again for a few days. The average price paid for spot cotton on 18 Carolina markets averaged 16.61 cents during the week ending April 8, but dropped back to 16.37 cents for the week ending April 15. All of these fluctuations covered a range of less than a cent a pound, and repre sent speculative movements in the main. During 1921 the average price in the Carolinas was between 10 and 11 cents during the month of March, and did not fall below or rise above those limits until the fourth week in June, at which time the price dropped to an average of about 9 ^ cents for one week. The Census Bureau’s report for March gave the cotton consumption for the month as 518,450 bales, against 438,218 bales in March a year ago. This consumption was on a spindleage of 31,875,212, which is a decline of 2,613,428, since January 1 of this year, and also a decline of 272,990 spindles as compared with March a year ago. Cotton held in consuming establishments on March 31, totaled 1,553,961 bales compared with 1,336,542 a year ago. Public warehouses and compresses held 3,765,804 bales on March 31, against 5,252,852 a year ago. AGRICULTURAL NOTES—The excessive rain that fell throughout the Fifth District during January and February continued well into March, but the weather during the latter half of the month was more favorable for farm work. As a result of the heavy precipitation, farm work averages from ten days to two weeks late, and more than that length of time in certain localities, particularly the clay soil section of the Carolinas. Winter wheat is reported officially as in good condition throughout the District, and the outlook is better than the national average. Corn has been planted in part of South Carolina, and the preparation of corn land is going for ward steadily in North Carolina and Virginia. Tobacco beds are being prepared and planted in the tobacco growing sections, and there are in dications of increased acreage over last year. Truck crops are reported to be advancing satisfactorily in the Eastern Shore section of Maryland and Virginia. The commercial crop of potatoes has been planted in South Carolina, but only fair stands are expected, due to excessive rain. Lettuce is ready for shipment in car lots from Beaufort County, South Carolina. The fertilizer problem is worrying the farmers, and comparatively little has yet been bought. Many farmers hafve debts unpaid from previous seasons, and therefore are unable to arrange to pay cash for fertilizer this year, but the fertilizer dealers are charging from $10 to $12 per ton more for goods sold on credit than when sold for cash, and in addition are requiring adequate security on the notes. In many cases farmers will be compelled to either reduce acreage or inadequately fertilize their crops. Until the crops are actually planted, however, it will be impossible to say how much fertilizer will be used, because there may be a rush of buying at the last minute. There is a very active co-operative selling movement among the cotton farmers of the District, and every effort is being made to persuade growers to sign contracts to sell through the Associa tion for five years. All classes of people appear to be interesting themselves in the movement, and the Governor of at least one state has announced his intention of making a speaking campaign to influence producers to sign up. Numerous banks are advertising their endorsement of the plan, and the press is almost solidly backing the movement. Perhaps more significant still, many farmers are signing the contracts, and thousands of bales have been pledged to the pool. An interesting feature of this activ ity is that it has so completely captured the attention of the farmers that the usual question at this season as to acreage is hardly being mentioned, except that writers on the boll weevil are caution ing growers not to plant more land than they can cultivate properly. BUILDING OPERATIONS FOR THE MONTH OF MARCH, 1922 AND 1921. Permit i Issued New Construction CITIES o 1922 1022 1921 fc M aryland 1 Baltimore................... 2 Cumberland............... 3 Frederick................... Virginia 4 Lynchburg................. 5 Norfolk....................... 6 Richmond.................. 7 Roanoke..................... W est V irginia 8 Charleston............... 9 Clarksburg**............. 10 Huntington................ 11 Parkersburg.............. N orth Carolina 12 Asheville .................. 13 Charlotte................... 14 Durham.................... 15 Greensboro .............. 16 High Point................. 17 Wilmington................ 18 Winston-Salem.......... South Carolina 19 Charleston................. 20 Columbia................... 21 Greenville.................. 22 Spartanburg............... Dist. of C o lum bia 23 Washington............... 395 23 3 Alterations Repairs New 1921 1922 1921 1922 1921 Increase or Per Cent, of Decrease, Total Increase Valuation or o Decrease fc 494 1,303 1,515 $3,068,000 $1,851,810 $ 811,900 $ 821,880 $1,206,180 21 37 170,243— 24 215,480 17,420 38,017 10,200 4 3 29,375 2,318 3,750 250 1 23,557— 45.1% 1 75.4— 2 79.6— 3 30 42 145 111 7 47 94 *125 16 92 92 61 14 61 100 81,300 313,540 1,010,256 353,820 22,550 443,757 926,359 *182,250 6,340 103,810 364,414 18,786 3,575 21,512 136,552 61,515 47,919— 311,759 190,356 235.5 10.3— 29.3 104.4 68 10 *130 116 35 14 32 214,044 10,945 376,360 100,000 343,114 24,964 129,023— *467,572 30,000 25,011 12,475 12,300 25,000 15,000 78,912— 80,000 35.1— 8 9 16 0— 10 177.8 11 *263 4 5 6 7 68 48 19 30 24 16 48 86 17 8 51 18 10 50 33 13 5 16 4 0 91 27 18 14 8 7 4 86 320,179 176,855 52,375 204, 235 50,415 98,500 270,410 103,793 9 2 ,F35 97,000 151,785 43,983 26,000 207,565 3,116 20,275 8,250 15,841 1,350 0 40,800 7,996 17,840 19,2oO 10,900 6,775 5, 400 29,170 211,506 86,755 55,575— 57,391 1,007 67,100 74,475 189.2 78.6 47.8— 35.3 2.0 213.7 31.5 12 13 14 15 16 17 18 25 36 27 23 23 15 30 35 30 93 25 57 24 90 40 20 39,435 108,430 108,368 12,719 184,793 101,335 127,860 75,059 10,100 29,172 7,800 9,519 15,565 29,317 14,585 4,650 150,823— 6,950 26,277— 57,471— 75.5— 5.3 18.4— 72.1— 19 20 21 22 400 203 561 531 2,989,091 1,460,715 290,453 91.3 23 253,569 1,565,260 Totals............ 1711 1,717 2,557 2,629 $9,990,099 $7,184,720 $1,823,975 $1,448,900 $3,180,454 1 ♦Includes both new and repairs. **Clarksburg, W. Va. not included in totals. 36.8% —Denotes decrease. The most active line of work in the Fifth District is building construction, reports from all over the district indicating the existence of a veritable building boom. Twenty-two reporting cities for which 1921 figures are available show 1,711 permits for new work issued in March, 1922, compared with 1,717 issued in March, 1921, a decrease of 6 permits under the corresponding month of last year, but figures showing total valuation for new work rose from $7,184,720 in March, 1921, to $9,990,099, in March, 1922, an increase of $2,805,379, or 39%. The March, 1922, valuation figures were the highest since April, 1921, and were exceeded in recent years only by that month and June, 1919. The number of new structures is greater than the 1,711 permits indicate, since numerous builders took out permits covering several houses, in some cases a single permit providing for the erection of an entire block of residences. For example, the 145 permits reported in Richmond covers 210 buildings, 89 of them being residences and 4 of them apartment houses. * Repair and alteration work shows activity, but is less marked than new construction. The com bined valuation of new work and repairs or alterations in March, 1922, amounted to $11,814,074 com pared with a total of $8,633,620 in March, 1921, an increase this year of 36.8%. Architects and build ers state that they are preparing plans for practically all the new work they can care for, and they believe that the activity in construction has not yet gotten fully under way. BUILDING MATERIALS—As a correlation to the activity in construction work, the dealers in building materials of all kinds are receiving many orders at remunerative prices. Lumber dealers re port some tendency toward higher prices, but few advances have yet been made. Orders received and lumber produced by mills having membership in the North Carolina Pine Association show steady increases. Reports issued by the Association show that for the weeks ending March 25, April 1 and April 8, orders received increased each week over those received during the previous period, an aver age of about 47 mills reporting. For the last two of the above mentioned weeks orders exceeded production 5.5%, and production was approximately 81% of normal capacity for the reporting mills. Manufacturers of fabricated steel for construction work are receiving many inquiries and an increasing volume of orders. Brick are in brisk demand and stone quarries are receiving sufficient orders to keep them busy full time. A large granite quarry reports orders that will require ninety days to fill. Municipalities and public utility companies are coming into the market again, and our correspondents are rather confidently expecting the railroads to resume purchasing within the next few months. A paint dealer writes that “in material we supply the building trade ........... have more orders than we can fill in regular running time, being compelled to work overtime three days a week trying to catch up.” . Exporters of lumber do not appear to be receiving orders comparable to the volume of business being gotten by dealers catering to the domestic trade. Reports from exporters inform us that their business during January, February and March has been decreasing, and they state that rates of ex change are still considered unfavorable by foreign buyers. They further state that the advantage in sterling exchange over other European moneys has caused a decided increase in the use of European and Asiatic woods in the United Kingdom. FIGURES ON RETAIL TRADE. As Indicated By Reports from Twenty-Four Representative Department Stores for the Month of March, 1922. 1 Percentage decrease in net sales during March, compared with March, 1921— i j| 1 Percentage decrease in net sales from January 1, through March 31, com pared with sales during the same three months of 1921_______________ ________1 Baltimore Richmond Washington Other Cities District -20.5 -11.5 -16.0 -25.7 -18.8 -18.1 -12.7 -13.2 -21.5 -16.5 31.9 42.9 31.6 30.4 32.8 7.6 6.4 11.3 9.2 8.9 9.6 4.7 8.7 7.3 8.6 433.5 431.3 438.9 616.0 456.0 5.9 6.5 3.2 3.8 4.8 j Percentage increase in net sales during! March, 1922, over sales in February,1 1922 __________________________________ i 1 ! Percentage increase in stocks on hand at the end of March, 1922, over stocks on hand at the end of March, 1921-------------Percentage increase in stocks on hand at the end of March, 1922, over stocks on hand at the end of February, 1922_____ Percentage of average stocks on hand at the end of each month since January l j to average net sales each month during the same period, three months________ ! !i Percentage of outstanding orders at thej end of March, 1922, to total purchases of: merchandise during the year 1921_____ ' 1 - Denotes decrease. Detailed reports were received for March from twenty-four representative department stores, re presenting eleven cities in the Fifth District. Net sales reported were 18.8% less in dollar value than sales in the same stores in March, 1921, but showed an increase of 32.8% over sales in February of this year. The large increase in March over February is a regular seasonal development and is due in part of course to the longer month. The decrease in March in comparison with the corresponding month of last year is not unsatisfactory in view of the fact that in 1921 Easter fell in March, but did not come this year until the middle of April. A considerable portion of the Easter trade, all of which was gotten in March last year, will be included in April’s figures this year. Stocks continue to increase in all of the reporting cities, the average value of stocks on hand at the end of March being 8.9% greater than the value on hand at the end of March, 1921, and 8.6% greater than at the end of February, 1922. The increase over February is of course seasonal. The large volume of spring trade that is normal in March has decreased the percentage of stocks on hand at the end of each month since January 1st to net sales during the same three months, this percentage at the end of March being 456%. Outstanding orders for merchandise at the end of March was 4.8% of total purchases by the re porting stores during the calendar year 1921. Thisfigure is lower than the ones reported at the end of January and February, indicating that the bulk of spring and summer goods has been received. WHOLESALE TRADE. Percentage Increase (or Decrease) in Net Sales During March, 1922, as Compared With February, 1922 ___ _________ and March, 1921. _____________________ Groceries Dry Goods Shoes Hardware Furniture 46. 16. 19. 19. 13. Net sales (selling price) during March, 1922, compared with February, 1922___ j 13.9 23.2 17.9 34.0 12.6 Net sales (selling price) during March, 1922, compared with March, 1921_____ i -10.1 -18.0 -24 2 -23.0 43.6 Number of reporting firms in each line_ j - Denotes decrease. For the month of March we received confidential reports from one hundred and thirteen whole sale firms. These reports show that net sales during that month were greater in all five of the re porting lines, than sales during February, 1922, the preceding month, but in all lines except furniture, March, 1922, sales were less than those reported for March, 1921. The table given above shows the percentage increase or decrease in sales between the different dates cited, and also shows the number of reporting firms in each line of business. Comments on general conditions made by the reporting wholesalers are interesting. A West Virginia firm, located in the non-union field, writes that if the coal strike lasts long enough his section will be bene fited and trade will improve, but the general opinion elsewhere in the District is that the strike has hurt wholesale business in all lines. A dry goods jobber says, ‘‘There would unquestionably have been a break in the market on cotton goods except for the strike of textile workers in the New England states. This strike has relieved the situation to an extent, and has stabilized the market.” A hardware jobber states that last year’s prices were nearly 25% higher than this year’s quotations, and says that this decrease should be kept in mind when comparing sales for this year and last. Several furniture manufacturers state that consumers are not buying furniture at retail as freely as price reductions justify, and they therefore fear that the reasonably satisfactory volume of orders received from re tail stores during recent months will not continue. A number of wholesalers comment on the bad condition of the country roads, and state that this condition has hurt their business during the winter and spring. Judging from the manner in which the reporting wholesalers classified their collections for March, conditions in this line are improving, in spite of the fact that a few of our reports stated that collec tions during March had been harder to make than in recent months. One hundred and seventeen firms classified their collections as good, fair, slow or poor, and of these, 70.1% reported them as either good or fair, in comparison with 56.9% so reported for February and 61.1% for January. We give below the classified reports from one hundred and seventeen firms for March, and for comparative purposes we have added the totals for January and February: Collections Reported As Good Fair Poor Slow Lines Sold Totals 5 31 10 0 Groceries .......................................... .................. 46 0 10 2 Dry Goods ........................................ ................. 5 17 0 11 2 Boots and S h oes.............................. ................. 6 19 0 14 5 0 19 Hardware .......................................... ................. 2 Furniture .................................................... ....... 9 4 1 16 7 75 30 5 March T ota ls............................ .................. 117 57 February Totals ......................................... 9 43 7 116 8 January Totals ........................................... 61 33 11 113 (Compiled April 17, 1922)
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