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MONTHLY REVIEW CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS WILLIAM W. HOXTON, CHAIRMAN AND FEDERAL RESERVE AGENT FEDERAL RESERVE BANK OF RICHMOND RICHMOND, VIRGINIA ARCH business in the Fifth Federal reserve dis trict showed a seasonal increase over February trade in some lines, but in others the developments of the month were disappointing. Deposits in report ing member banks increased during the past month, both demand and time deposits registering gains. At the same time the member banks failed to increase their agricultural loans as they usually do at this season. In consequence, they were able to increase their in vestments in securities and to reduce their rediscounts at the reserve bank, contrary to seasonal trend. At the end of March 1931 total deposits in twelve mutual savings bank in Baltimore were at the highest figure on record, and time deposits on April 15 in reporting member banks in the Fifth district were considerably above time deposits a year ago. Debits to individual accounts figures, representing payments by check, were seasonally larger during the five weeks ended April 15, 1931, than during the preceding five weeks, ended March 11, but were 15 per cent less than debits in the corresponding five weeks in 1930. The marked de crease in debits this year was due in part to lower price levels, but probably lower income tax payments this year also accounted for some of the decline. Busi ness failures in the Fifth district in March were more numerous than in any other March since 1922, and aggregate liabilities involved in the month's insolven cies were also exceptionally high. In comparison with the bankruptcy record of March 1930, the March 1931 record for the Fifth district was worse than the Na tional record. Labor conditions showed little if any real improvement in March, although there was some increase in such work as painting, gardening, etc. Coal production continues in less volume than a year ago, and West Virginia remains below Pennsylvania in out put. The textile industry apparently improved some what further in March, and cotton consumption in Fifth district mills showed more than a seasonal rise in March, but still was below consumption in March last year. However, the percentage of National con sumption attained by Fifth district mills was higher in March than in the corresponding month last year. Retail trade as reflected by department store sales rose 6 per cent last month in comparison with trade in M APRIL 30, 1931 March 1930, but most of this increase was due to the earlier date of Easter this year. Wholesale trade in March registered seasonal gains over February busi ness, but fell behind March 1930 business in all lines, except shoes, for which figures are available. Building permits issued in leading cities of the Fifth district in March provided for only a little over half as much work as was provided for in March 1930 permits, and contract award figures for March this year were also materially lower than those for the corresponding month a year ago. Spring weather was favorable for farming, on the whole. There was a deficiency in moisture until the middle of March, and consequently grain crops are in poorer condition than a year ago, but in the second half of March and early April gen eral rains put soil in excellent condition for plowing and planting, and stimulated growth of grains and pas tures. Cool weather through March delayed fruit tree development until serious danger from frost had passed, thus giving excellent prospects for this year’s fruit yield. On the whole, agricultural prospects are better than they were a year ago insofar as yields in the fields are concerned, but there has been no improve ment in the price outlook. Reserve Bank Statement ITEMS 000 omitted April 15 Mar. 15 April 15 1931 1931 1930 Rediscounts h e ld ----------------- $ 14,475 $ 17,611 $ 16,185 1,462 104 10,287 Open market paper--------------17,122 12,640 Government securities----------- 16,983 39,112 36,195 Total earning assets----------- 31,562 72,197 81,757 Circulation of Fed. Res. notes.... 78,483 61,141 66,057 Members* reserve deposits........ 62,075 Cash reserves______________ 118,223 114,267 111,399 79.75 77.68 82.41 Reserve ratio _____ _________ The volume of rediscounts held by the Federal Re serve Bank in Richmond declined $3,136,000 between March 15 and April 15, this year, in spite of the sea sonal need for credit at country banks and at city banks with country correspondents for crop planting and fertilizer purchases. The reserve bank reduced MONTHLY REVIEW 2 it’s holdings of open market paper by $1,358,000 dur ing the same month, and also lowered it’s holdings of Government securities by $139,000. These changes resulted in a net decline of $4,633,000 in the Bank’s total earning assets between March 15 and April 15. The circulation of Federal reserve notes dropped $3,274,000 during the month under review, a seasonal decline at a time when book credit rather than cash is needed. Member bank reserve deposits at the Federal Reserve Bank of Richmond rose by $934,000 last month, but this was probably no more than a daily fluctuation in the total balance. The several changes in the statement previously mentioned, with others of less importance, raised the cash reserves of the Rich mond reserve bank by $3,956,000 between March 15 and April 15, and brought the ratio of reserves to note and deposit liabilities combined up 2.66 points. A comparison of the April 15, 1931 figures with those reported for April 15, 1930, shows less demand for reserve bank credit this year. During the period, rediscounts for member banks held by the Federal Reserve Bank of Richmond declined $1,710,000, and the Bank’s portfolio of open market paper dropped by $10,183,000. These decreases in earning assets were partly offset by an increase of $4,343,000 during the year in holdings of Government securities, but there was a net decline of $7,550,000 in total earning assets. On April 15, 1931, the circulation of Federal reserve notes totaled $6,286,000 above the aggregate amount in circulation on April 15 last year, this increase probably being due to a stronger cash position in which many banks in the Fifth district are keeping themselves at present. On the other hand, member bank reserve deposits held by the Richmond bank were $3,982,000 lower at the middle of April than on the same date a year earlier, lower reserves being required against re duced deposits in member banks this year. The cash reserves of the Federal Reserve Bank of Richmond rose by $6,824,000 between April 15, 1930, and April 15, 1931, and the ratio of cash reserves to note and deposit liabilities combined gained 4.73 points. The increase in the Bank’s cash reserves during the year was due chiefly to the reduction in investments in open market paper. Member Bank Statement ITEMS 000 omitted April 15 Mar. 11 April 16 1930 1931 1931 Loans on stocks and bonds (in cluding Governments) -------All other loans-------------------Total loans and discounts---Investments in stocks & bonds— Reserve bal. with F. R. Bank.... Cash in vaults..____________ Demand deposits----------------Time deposits--------------------Borrowed from F. R. Bank.---- $161,826 $164,935 $196,047 262,266 269,015 296,383 424,092 433,950 492,430 222,909 181,735 157,979 38,092 38,596 38,263 15,732 11,296 13,777 331,198 329,004 346,839 259,033 250*023 246,220 4,677 5,763 3,720 The figures in the above table show the principal items of condition as of three dates for fifty-three mem ber banks in thirteen of the leading cities of the Fifth Federal reserve district. It should be understood that the figures shown reflect the condition of the reporting banks on the report dates only, and are not necessarily the highest or lowest figures that occurred during the periods under review. Demand for credit at the reporting member banks showed an unseasonal decline between March 11 and April 15, this year, loans on stocks and bonds de creasing $3,109,000 and all other loans declining $6,749.000, a total decrease of $9,858,000 during the month. On the other hand, the banks increased their investments in stocks and bonds by $41,174,000 be tween March 11 and April 15, and reduced their bor rowing at the Federal Reserve Bank of Richmond by $2,043,000. Cash in vaults declined $1,955,000 during the month under review, and aggregate balances of the fifty-three reporting member banks at the reserve bank decreased by $333,000. Deposits rose last month, de mand deposits gaining $2,194,000 and time deposits rising $9,010,000 between March 11 and April 15. In comparison with figures reported by the fiftythree member banks on April 16, 1930, those for April 15, 1931, show material changes in most items. Total loans and discounts decreased $68,338,000 during the year, loans on stocks and bonds declining $34,221,000 and all other loans dropping $34,117,000. On the other hand, the reporting banks’ investments in stocks and bonds rose by $64,930,000 during the year, very nearly the same amount as the total decrease in loans. The reserve balances of the fifty-three banks at the reserve bank showed only a daily fluctuation between the mid dle of April last year and this, but the banks’ cash in vault rose by $2,481,000. Aggregate deposits declined $2,828,000 during the year, demand deposits decreas ing $15,641,000 while time deposits increased $12,813.000. The reporting institutions were borrowing very little at the reserve bank on either April 15 this year or April 16 last year, but the 1931 figure showed a decline of $957,000. Savings and Time Deposits Twelve mutual savings banks in Baltimore gained in deposits during March, and reporting member banks also gained in time deposits. Aggregate deposits in the twelve mutual savings banks in Baltimore at the end of March 1931 totaled $204,327,056, compared with $202,179,485 on February 28, 1931, and $192327,234 on March 31, 1930. Time deposits in fiftythree regularly reporting member banks in the Fifth district totaled $259,033,000 on April 15, in compari son with $250,023,000 on March 11 this year and $246,220,000 on April 16, 1930. Debits to Individual Accounts Aggregate payments by check drawn on clearing house banks in twenty-four cities of the Fifth Federal reserve district are shown in the accompanying table for three equal periods of five weeks, ended April 15, 1931, March 11, 1931, and April 16, 1930, thus af fording opportunity for comparison of the latest fig ures with those for the preceding like period this year and the corresponding period a year ago. MONTHLY REVIEW CITIES 000 omitted Total debits, five weeks ended April 15, March 11, April 16, 1930 1931 1931 Asheville, N. G ------- $ 14,693 428,394 Baltimore, Md........ — 20,901 Charleston, S. C.----— 43,043 Charleston, W. Va_ _ 55,193 Charlotte, N. C.------28,966 Columbia, S. C ------9,070 Cumberland, Md......... 6,888 Danville, Va............— 28,650 Durham, N. C.--------22,487 Greensboro, N. C____ 19,001 Greenville, S. C_____ 10,435 Hagerstown, Md. ___ 18,756 Huntington, W. Va..... 19,320 Lynchburg, Va........ .... 12,119 Newport News, Va.— 54,290 Norfolk, Va. _______ 4,979 Portsmouth, Va. ____ 23,201 Raleigh, N. C ______ 142,501 Richmond, Va. ______ 29,268 Roanoke, Va. ____ 11,699 Spartanburg, S. C___ 290,882 Washington, D. C ___ 15,209 Wilmington, N. C.___ 52,447 Winston-Salem, N. C... Totals________ $1,362,392 $ 12,565 434,811 21,705 41,110 45,791 26,171 8,556 7,736 26,218 20,011 19,134 9,305 17,663 19,183 12,662 55,044 5,123 20,504 134,784 29,089 10,311 269,745 12,827 36,326 $ 32,743 533,466 28,300 51,933 64,454 32,593 10,164 7,786 31,957 29,252 23,110 12,153 25,606 22,894 12,786 66,605 5,661 31,547 152,418 36,422 13,881 309,440 19,523 54,079 $1,296,374 $1,608,773 Total debits in the reporting cities in the five weeks ended April 15 showed an increase of $66,018,000, or 5.1 per cent, over total debits in the preceding five weeks, ended March 11. The increase was seasonal, and was due chiefly to income tax payments on March 15 and quarterly settlements on April 1, both of these important dates falling in the latest five weeks. The seasonal increase was smaller this year than in most years, income tax payments on 1930 incomes proving considerably lower than taxes paid on incomes in other recent years. Seventeen of the twenty-four cities reported larger totals for the April 15 period, but seven cities failed to show the usual increases. AH of the larger centers except Baltimore and Norfolk re ported higher figures for the later five weeks. Winston-Salem made the greatest percentage increase, with Charlotte and Wilmington second and third, respec tively. A comparison of the debits figures for the five weeks ended April 15 this year with the figures of the corre sponding period ended April 16, 1930, shows a decrease this year of $246,381,000, or 15.3 per cent, the largest decline shown in any period for several years. Every one of the twenty-four reporting cities showed lower totals for the 1931 five weeks than for the same period last year. Commercial Failures The business mortality record in the Fifth reserve district in March 1931 was relatively bad. Failures numbering 168 exceeded the number of insolvencies in any other March since 1922, and, except for interven ing Januarys, were more numerous than in any other month since May 1922. Aggregate liabilities involved in March 1931 failures totaled $4,701,539, the highest figure reported for any month since April 1930, and 3 the highest March figure with two exceptions on rec ord. The number of failures reported last month was 33 per cent above the number of insolvencies in March 1930, and last month’s liabilities exceeded those of the corresponding month in 1930 by 78 per cent. National figures for March 1931 showed increases of 11 per cent in number of bankruptcies and 6 per cent in liabilities in comparison with figures for March 1930, a much more favorable comparison than the one for the Fifth district. Employment The pressure of unemployment showed some sea sonal improvement during the past month, but other wise the situation changed very little. A considerable amount of spring painting, papering, yard and garden work, etc., has given employment to a number of peo ple, but statistics available indicate that this seasonal work is not up to usual volume this year. Farmers are hiring some help to prepare land and plant crops, but there is a surplus of farm workers and in addition many farmers are not in position to hire help this season. There was some increase in construction work in March, but the volume of building in the Fifth dis trict is still materially below that of other recent years, and many workers in building trades are consequently unemployed or are able to obtain work for part time only. Coal Production Production of bituminous coal in the United States during the month of March amounted to 33,870,000 net tons as against 31,408,000 tons mined in February 1931 and 33,773,000 tons in March 1930. The in crease last month.in comparison with February ton nage was due to the longer month, daily average pro duction in March being nearly 1 per cent less than pro duction in February. Total production of soft coal during the present calendar year to April 11 (approxi mately 86 working days) amounts to 114,929,000 net tons, a materially smaller amount than for any other year during the past five. Coal shipped by water through Hampton Roads, Baltimore and Charleston, S. C., in March totaled 1,938,807 net tons, and since January 1, 1931, these ports have shipped 5,943,447 tons, or 66 per cent, of total tidewater shipments of bituminous coal. The March 21 report of the Bureau of Mines, De partment of Commerce, showed production figures by states for February. West Virginia with an output of 7,746,000 net tons was in second place, Pennsylvania with 8,690,000 tons ranking first. The three coal produring states of the Fifth district, West Virginia, Vir ginia and Maryland, dug approximately 28 per cent of all soft coal mined in February, the same percentage of the total that the district reported in February a year ago. Textiles Conditions in the textile industry continued to show some improvement in March, and daily consumption of cotton by Fifth district mills during the month rose 3.3 per cent over daily consumption in February. Or 4 MONTHLY REVIEW ders for textile products somewhat exceeded produc tion, further reducing surplus stocks in warehouses of the mills. Fifth district mills consumed 220,902 bales of cotton in March this year, of which North Carolina mills used 117,200 bales, South Carolina mills 92,954 bales, and Virginia mills 10,748 bales. In February 1931 Fifth district mills consumed 197,331 bales and in March 1930 used 224,881 bales. Consumption in the Fifth district was 45.03 per cent of National con sumption in March 1931, a slightly lower figure than 45.52 per cent in February this year, but higher than 44.30 per cent in March 1930. During the past two months the percentage of cotton consumed in the Fifth district in comparison with National consumption has decreased slightly, indicating a somewhat greater im provement in the textile industry in other sections than the Fifth district Cotton Statistics Spot cotton prices on ten Southern markets slowly declined during the past month, dropping gradually from 9.97 cents per pound, upland middling basis, on March 13 to 9.48 cents per pound on April 17, the latest date for which figures are available. The latest figure quoted shows a decline of $28 a bale under the mid-April 1930 price, and is $47 a bale lower than the price on the corresponding date in, 1929. Cotton consumption in the United States in March 1931 totaled 490,586 bales, compared with 433,510 bales used in February this year and 507,646 bales in March 1930. Total consumption for the eight months of the present cotton season—August 1 to March 31— amounted to 3,390,528 bales, compared with 4,316,387 bales consumed in the corresponding period ended March 31, 1930. Manufacturing establishments held 1,477,758 bales on March 31, compared with 1,547,759 bales held on February 28 this year and 1,758,171 bales on March 31, 1930. Public warehouses and compresses held 6, 642,648 bales in storage at the end of March this year, compared with 7,314, 450 bales, so held a month earlier and 4,198,077 bales on March 31 last year. March exports totaled 605,461 bales, compared with 432,996 bales sent abroad in February this year and ,477,678 bales exported in March last year. Ex ports during the eight months of this cotton year to taled 5,509,724 bales, compared with 5,770,764 bales shipped over seas during the corresponding eight months ended March 31, 1930. f Spindles active in March numbered 26,489,832, compared with 25,763,408 in February this year and 28,862,400 in March 1930. Cotton growing states consumed 383,552 bales in March 1931, compared with 341,216 bales used in Feb ruary and 393,906 bales in March 1930. Last month’s consumption in the cotton growing states amounted to 78.18 per cent of National consumption, compared with 77.59 per cent of National consumption used in the cotton growing states in March last year. Of the 383,552 bales of cotton consumed in cotton growing states in March, the Fifth district mills used 220,902 bales, or 57.59 per cent, compared with 57.09 per cent of Southern consumption attained in the district in March last year. Tobacco Marketing Virginia tobacco markets closed in February and March, and the Agricultural Statistician of the state has issued a report on the season’s sales. Producers’ tobacco sold for the 1930-1931 season totaled 131,966,925 pounds, compared with 126,825,002 pounds sold during the previous season. Although sales from the 1930 crop totaled about 4 per cent above sales from the 1929 crop, the current season’s average price of $8.61 per hundred pounds brought growers a total of only $11,359,000, in comparison with an average price of $17.53 for the 1929 crop which brought a total of $22,228,000. Flue-cured sales this year totaled 96,315,754 pounds, which sold at an average of $7.94 per hundred, compared with 92,949,878 pounds sold for an average of $17.36 from the 1929 crop. Fire-cured tobacco sold this season in Virginia totaled 23,324,643 pounds, at an average of $8.26 per hundred pounds, compared with sales totaling 22,811,016 pounds last season for which growers received $16.87 per hundred. Burley sales amounted to 8,949,672 pounds this season, at an average of $17.05 per hundred, compared with 6,930,130 pounds at an average of $24.45 last year. Sun-cured tobacco sold totaled 3,376,856 pounds at an average of $7.73, compared with 4,133,978 pounds sold during the previous season for an average of $13.23 per hundred. Among the individual markets, Dan ville led in total sales of flue-cured tobacco with 44,025,824 pounds, and Lynchburg led the fire-cured mar kets with sales aggregating 6,357,724 pounds. Danville also led in price for flue-cured tobacco with an average for the season of $9.30 per hundred, and Blackstone led the fire-cured markets with $11.59 per hundred. All burley tobacco was sold at Abingdon and all sun-cured at Richmond. According to estimates of warehouse men, this season’s sales graded 10 per cent good, 26 per cent medium, and 64 per cent common, compared with 26 per cent good, 39 per cent medium, and 35 per cent common last season. North Carolina markets sold 562,936,467 pounds of growers’ tobacco from the 1930 crop, at an average price of $12.85 per hundred pounds, compared with 481,456,650 pounds sold from the 1929 crop at an aver age of $18.40 per hundred. All North Carolina to bacco is flue-cured except 2,959,434 pounds of burley sold at Asheville this year, this being the first season a burley market has been open in the state. Wilson led all markets in total sales this season with 77,788,672 pounds, Greenville and Winston-Salem ranking second and third, respectively. In average price paid growers Fuquay Springs was first with $16.19 per hundred, fol lowed by the burley market at Asheville with $15.83 and Cathage with $15.60. The following figures show clearly how over production of tobacco in recent years has affected income received by North Carolina grow ers. Value Production Year $ 87,438,000 380,165,000 lbs. 1925 96,615,000 386,460,000 1926 108,248,526 485,419,400 1927 95,886,336 499,408,000 1928 91,473,000 502,600,000 1929 74,429,256 579,216,000 1930 MONTHLY REVIEW Agricultural Notes The 1930 agricultural season is quite late, weather having continued cold through most of March and moisture during the first two and a half months of the year being insufficient for plant growth. However, since the middle of March general rains have fallen over the entire district, and weather has been favor able for plant growth and farm work. Winter grains are in poorer condition than at this time last year, due chiefly to poor stands secured in the fall of 1930 as a result of dry soil at planting and germinating time. Pastures were very slow in providing grazing this spring, but grass grew rapidly in the first half of April. Fruit prospects this year are much better than a year ago, the lateness of the season having retarded budding until there is little danger from freezes or frosts during the remainder of the spring. Intentionsto-plant reports issued by the Department of Agricul ture indicate ;some probable reduction in acreage, but the surplus of cotton and tobacco accumulated in re cent years is so large that drastic reductions in acreage would have to be made to affect prices materially. Retail Trade, 35 Department Stores__________ Richmond Baltimore Washington Other Cities District March 1931 sales, compared with sales in March 1930: + 3.9 + 3.7 +13.3 — 3.8 + 6.3 Total sales in 3 mos. of 1931, comp, with 1st 3 mos. of 1930: _ 2.5 — 1.5 + 4.5 — 9.9 — .3 Mar. 31, 1931 stocks, compared with stocks on Mar. 31, 1930: —18.9 —11.9 —15.3 —17.4 —14.6 Mar. 31, 1931 stocks, compared with stocks on Feb. 28, 1931: — 1.0 + 9.4 + 6.9 + 4.3 + 6.7 Number of times stock was turned in March 1931: .362 .353 .353 .249 .34 Number of times stock was turned since January 1, 1931: .904 .895 .932 .619 .872 Percentage of March 1, 1931, receivables collected in M arch: 31.5 25.4 33.2 28.4 28.9 Department store sales in thirty-five leading stores in the Fifth Federal reserve district in March 1931 aver aged 6.3 per cent in dollar volume above sales in March 1930, but it is difficult to determine how large a part of the increase was due to the earlier date of Easter this year. All of the 1930 seasonal buying for Easter occurred in April, but this year March weather was good and Easter fell so early in April that a very large part of the seasonal buying was done in March. The good record of last month did much to make up for the relatively poor trade of January and February, and total sales during the first quarter of 1931 aver aged only 3/10 of 1 per cent less than sales in the first quarter of 1930, when prices were materially high er in many lines than they are at present. Stocks on the shelves of the reporting department stores rose an average of 6.7 per cent during March, a seasonal increase just before Easter, but on March 31 average stocks at retail prices were 14.6 per cent below stocks on hand on March 31, 1930. Stocks were turned .34 times in March this year, and during the first quarter of 1931 stocks were turned .872 times, a 5 higher figure than .74 times in the first three months of 1930. Collections in March 1931 in thirty-four of the thirty-five stores averaged 28.9 per cent of receivables outstanding on March 1, a better record than that of March 1930, when 27.4 per cent of outstanding re ceivables as of March 1 were collected during the month. Wholesale Trade, 65 Firms 24 9 6 15 H Groceries Dry Goods Shoes Hardware Drugs March 1931 sales, compared with sales in March 1930: —16.3 —29.9 + .1 —29.6 — 7.5 March 1931 sales, compared with sales in February 1931: + 9.1 + 9.1 +30.6 + 4.0 + 3.5 Jan.-Mar. 1931 sales, compared with sales in Jan.-Mar. 1930: —18.8 —32.4 —12.0 —31.0 — 4.4 March 31, 1931 stocks, compared with March 31, 1930 stocks: —16.7(8*) —26.2(4*) —14.4(6*) — 7.5(8*) ____ March 31, 1931 stocks compared with Feb. 28, 1931 stocks: + .2(8*) + .2(4*) — 2.0(5*) -1 .2 (8 * ) ____ Percentage of March 1, 1931 receivables collected in March: 58.7(14*) 35.8(6*) 25.3(6*) 29.4(12*) 57.4(8*) —Denotes decreased percentage. *Number of reporting firms. Sixty-five wholesale firms in the Fifth reserve dis trict sold more goods in March 1931 than in Febru ary this year, chiefly a seasonal increase, but in some lines the increases were perhaps greater than in most years. In comparison with March 1930 sales, how ever, those for March 1931 were materially lower in dollar amount in all lines reported upon except shoes, in which a small gain in sales was reported last month. All five lines for which data are available report lower total sales for the first quarter of 1931, in comparison with sales in the first quarter of 1930. Stocks of the reporting firms did not change mate rially during March this year, but on March 31 all lines showed smaller stocks than on the corresponding date a year ago, dry goods stocks decreasing most and hardware stocks least during the year. Collections in all five lines were seasonally better in March than in February this year, the percentages of collections during the month to receivables out standing on March 1 being larger than the percentages for the earlier month. Dry goods and shoe collections in March 1931 were also better than those for March 1930, but the percentages of collections in groceries, hardware and drugs were lower last month than in the corresponding month a year ago. Construction Building permits issued in March in thirty-one Fifth district cities provided for much less work than per mits issued in March 1930. Last month 1,133 permits were issued for new construction, compared with 1,275 permits in March last year. Valuation figures for new construction totaled only $6,250,824 in March 1931, against $12,099,867 for similar work in March 1930. Total valuation figures for all classes of work issued in March were $7,193,060, a decrease of $5,927,232, or 45.2 per cent, under valuation figures totaling $13,120,292 in March last year. Only six of the 31 re 6 MONTHLY REVIEW porting cities showed higher valuation figures for the 1931 month, and most of these increases were due to very low 1930 figures rather than to a large volume of work this year. No figures for March 1931 were obtainable from Huntington, West Virginia, and that city was therefore omitted from the table of building permits printed elsewhere in this Review. Contracts awarded for construction work in the Fifth reserve district in March this year totaled $30,615,813, including both urban and rural construction, compared with $43,220,110 in contracts awarded in March 1930, according to figures collected by the F. W. Dodge Corporation. Of the March 1931 contracts, $9,767,128 was for residential structures, compared with $10,356,810 for residence work in March last year. (Compiled April 21, 1931) BUILDING OPERATIONS FOR THE MONTHS OF MARCH 1931 AND 1930. © CITIES Permits Issued New 4 Repairs 1931 1930 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Baltimore, Md.------Cumberland, Md.----Frederick, Md-------Hagerstown, Md....... Salisbury, Md.------Danville, Va---------Lynchburg, Va.......... Norfolk, Va............... Petersburg, Va.......... Portsmouth, Va.____ Richmond, Va........... Roanoke, Va............. Bluefield, W. Va. Charleston, W. Va..... Clarksburg, W. Va..... Huntington, W.Va.__ Asheville, N.C.------Charlotte, N. C.-----Durham, N. C.____ Greensboro, N. C.__ High Point, N. C....... Raleigh, N. C.-------Rocky Mount, N.C..... Salisbury, N. C.____ Wilmington, N. C.___ Winston-Salem, N. C ..... Charleston, S. C.____ Columbia, S. C.____ Greenville, S. C.____ Rock Hill, S. C .____ Spartanburg, S. C..... Washington, D. C_ _ Totals------------- 1931 New Construction 1930 776 12 9 1 10 9 13 45 2 15 70 19 7 1931 1930 Alterations 1931 949 $ 1,901,160 $ 2,087,640 133,385 8 12,925 7,125 10,495 11 30,225 31,482 4 30,175 12 57,125 6,427 10 2,000 139,108 234,425 20 80,770 369337 41 4,000 17,250 4 26,021 26,200 26 409,383 246,115 70 95,653 27 130,077 283 123,000 2 73,770 10 4,116,358 51,730 11 1,787 *47,000 *7 6,145 32,700 49 32 121,265 414,935 164,800 15,900 5 88,985 22,148 19 59,350 2 25,865 12 33,660 40,395 26,735 18,400 .5 11,525 4,225 11 53,900 90,200 191,000 52 54,181 22 17,400 856,135 41,550 320,900 29 49 59,950 128,600 27,895 16 32,450 14 275,175 81,441 298 2,476,650 2,853,800 $ 465,600 3,829 5,895 3,310 3,750 7,570 4,673 22,171 225 8,785 41,491 4,682 1,825 2,950 9,700 1,133 1,252 1,739 1,816 $ 6,250,824 $12,052,867 $ 942,236 427 9 3 15 14 5 15 83 1 21 65 35 3 19 13 __ 15 28 6 14 13 11 9 4 9 14 13 22 10 13 6 218 498 13 19 20 26 5 32 94 5 21 68 39 8 40 12 *23 5 45 16 17 18 18 12 3 11 51 22 14 21 9 19 71 6 11 __ 16 43 6 49 4 9 2 0 8 46 31 30 24 9 15 442 6 ......... 8,851 41,133 10,656 21,445 9,500 5,549 500 0 13,300 23,250 5,688 17,950 13,043 3,435 3,740 177,740 1930 443,520 2,850 4,160 8,600 2,675 8,605 30,335 22,980 3,300 17,493 76,235 10,272 1,050 41,325 11,325 *2,550 22,932 12,780 1,550 11,155 800 3,300 3,145 500 3,200 35,671 4,425 14,640 28,384 6,065 4,913 229,240 Increase or Decrease of Total Valuation $— 164,400 121,439 — 1,635 — 6,547 — 25,875 3,392 — 120,979 — 289,376 — 16,325 — 8,887 128,524 — 40,014 — 121,942 —4,080,963 48,318 — — — — — — — — — — — — — — 40,636 265,317 139,794 56,547 24,785 4,486 10,980 6,800 26,200 149,240 37,472 276,040 83,991 7,185 192,561 428,650 o fc T2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 $1,067,425 $—5,927,232 — Denotes decrease. ♦These figures not included in totals. NOTE—The figures in the above table reflect the amount of work provided for in the corporation limits of the sev eral cities, but take no account of suburban developments. MONTHLY REVIEW 7 BUSINESS CONDITIONS IN THE UNITED STATES (Compiled by the Federal Reserve Board) F urther increase in industrial activity was re ported for the month of March, which usually shows little change from February. Factory em ployment and payrolls increased by the usual sea sonal amount between the middle of February and the middle of March. The volume of building con tracts awarded in March showed considerable growth, largely of a seasonal nature. The general level of wholesale prices continued to decline. Production and Employment. Industrial production increased 2 per cent further in March and the Federal Reserve Board’s sea sonally adjusted index stood at 88 per cent of the 1923-1925 average, compared with 104 per cent in March 1930. There was a considerable increase in daily average output of steel, which ordinarily shows little change from February to March, while production of automobiles increased by about the usual seasonal percentage. Activity at cotton mills increased slightly, contrary to the ordinary sea sonal movement, and there was a substantial in crease in output of shoes. In the first half of April steel mill activity declined. The number of men employed at factories in creased between the middle of February and the middle of March by about the usual seasonal amount. In the iron and steel and automobile in dustries somewhat larger than usual increases were shown and at textile mills and shoe factories, where the number employed ordinarily declines in March, substantial increases in employment were reported. In the agricultural machinery and petroleum re fining industries and at car building shops, employ ment declined contrary to the usual seasonal trend, and in the automobile tire and fertilizer industries employment increased less than usual. Volume of building contracts awarded in March increased considerably from February, according to the F. W. Dodge Corporation, reflecting in large part developments of a seasonal character. Con tracts for residential building increased seasonally and were in about the same volume as a year ago, while contracts for public works and utilities rose to the high level of March 1930. Agriculture. Definite improvement in moisture conditions in the drought area was an important development in March and the first week of April; supplies of moisture in the topsoil have been replenished, but the subsoil continued to be dry in certain areas, particularly in the spring wheat belt. Department of Agriculture estimates, based on April 1 condi tions, indicate a winter wheat crop of 644,000,00X3 bushels, about 100,000,000 bushels larger than the five-year average and 40,000,000 more than last year. Intentions to plant, as reported March 1, indicate a considerable reduction in spring wheat acreage, and an increase in acreage to be planted to corn. Distribution. Volume of freight-car loadings increased season ally in March and department store sales increased during the Easter season by about the usual amount. Prices. The general level of wholesale commodity prices continued to decline in March, according to the Bureau of Labor Statistics, reflecting chiefly re ductions in the prices of petroleum products, bituminous coal, and textile products. Prices of farm products increased slightly and there was a substantial advance in the price of hides. In the first half of April prices of many commodities, in cluding cattle, cotton, rubber, and coffee, declined, while the price of wheat advanced. Bank Credit. Loans and investments of member banks in lead ing cities, which had increased in the middle of March as the result of Treasury operations, showed a decline for every week between March 18 and April 8, but on the latter date were still $270,000,000 larger than four weeks earlier. Investment hold ings of these banks were at a new high figure on April 8, owing largely to an increase in their hold ings of United States Government obligations, while loans on securities as well as all other loans showed a decline for the four-week period. Volume of reserve bank credit has fluctuated since the middle of February around a level of $925,000,000. Continued imports of gold, deposited by member banks with the reserve banks, have provided the member banks with sufficient funds to meet an increase in the demand for currency. United States Government security holdings of the reserve banks have remained at the level of $600,000,000 established last summer, while discounts for member banks have continued to decline and holdings of purchased acceptances have fluctuated in response to temporary changes in the demand for reserve bank credit. Money rates showed little change from the mid dle of March to the middle of April. Rates on com mercial paper declined further from a prevailing rate of 2% per cent to a range of 2 ^ 4 -2 ^ per cent, while bond yields increased slightly.
