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MONTHLY REVIEW C REDI T, B U S I N E S S AND A G R I C U L T U R A L CONDI T I ONS FEDERAL RESERVE BANK OF RICHMOND RICHMOND, VIRGINIA APRIL 30, 1937 Debits to individual accounts (24 cities)....................... ............. ....................... Number of business failures, 5th district.................................... Liabilities involved in failures, 5th district........... ...................... ....................... Cotton consumption, 5th district (Bales)..................................... Building permits issued (31 cities)........................................ ..... Value of building permits (31 cities)......................................... ....................... Value of contracts awarded, 5th district........................................ ....................... Total sales, 54 department stores, 5th district............................... ....................... Total sales, 56 wholesale firms in 5 lines...................................... ....................... Registrations, new passenger automobiles................................... Bituminous coal production, U. S. (Tons)................................... RAD E in the Fifth Federal Re serve district in March and early April not only showed the normal sea sonal rise over February, but con tinued in materially larger volume than in the corresponding period last year. The early date of Easter this year raised retail trade in department stores to about 18 per cent above the March 1936 figure, and carried sales in the first quarter of this year 12 per cent above sales in the first quarter of last year. Wholesale trade last month in four of five lines for which data are available also was in considerably larger volume than in March 1936. Registrations of new passenger auto mobiles in the Fifth district in the first three months of 1937 exceeded registrations of new cars in the cor responding period in 1936 by 31 per cent, an indication of increased consumer buying power this year. Changes in bank statements during the past month were rela tively unimportant. At the Federal Reserve Bank of Richmond there was a small increase in discounts, but maturing of some short term Government securities held by the Bank reduced total earning assets slightly. A seasonal decline in Federal Reserve notes in actual T March 1937 March 1936 $1,360,170,000 53 359,000 $ 358,117 2,975 9,692,773 $ $ 24,371,000 $ 10,387,445 6,048,802 $ 23,711 50,720,000 $1,088,418,000 50 $ 504,000 266,890 2,727 $ 6,587,201 $ 17,136,158 $ 8,707,058 $ 5,085,407 19,392 31,527,000 % Change +25.0 4- 6.0 —28.8 +34.2 + 9.1 +42.1 +42.2 +19.3 +18.9 +22.3 +60.9 circulation occurred between March 15 and April 15, and member banks re duced their reserve deposits. Report ing member banks increased loans and discounts last month, but reduced in vestments in securities, while their deposits rose moderately. Debits to individual accounts figures in twentyfour cities were 25 per cent larger in March 1937 than in March 1936, and showed a seasonal increase of about 19 per cent over February debits. Em ployment showed some increase during the past month, but labor trouble de veloped at a few points in the district and there appears to be considerable tension between workers and employ ers in several fields, notably in textiles and tobacco. Coal production in March was 61 per cent above March 1936 production, possibly because of fear that a coal strike might develop on April 1. In fact, a suspension of operations did develop in part of the Fifth district coal region, but the trouble was settled after about two weeks. Cotton textile mills set new records for cotton consumption in March in both the district and the United States, and South Carolina continued to lead the Nation in average hours of operation per MONTHLY REVIEW 2 spindle in place. Spot cotton prices advanced in the latter half of March to 14.91 cents per pound at the end of the month, but in the first half of April prices declined about $7 per bale. Building work continued to expand in March, valuation of city building permits issued rising 42.1 per cent and contracts actually awarded totaling 42.2 per cent more in aggregate amounts than corresponding figures in March 1936. The 1937 crop year is beginning favorably, with farm work normally advanced for the season in most of the district, fall sown grains in better condition than a year ago, and increased acreages intended for most leading crops, especially the major cash crops such as tobacco, potatoes and peanuts. No official informa tion on probable cotton planting is available, publication of such figures by the Department of Agriculture on that crop being forbidden by law. Reserve Bank Statement ITEMS 000 omitted April 15 March 15 April 15 1937 1937 1936 $ 414 Discounts held ................................... 120 Open market paper........................... . . . . ., 2,704 Government securities ..................... ........ 131,609 Total earning assets..................... ........ 134,847 Circulation of Fed. Res. notes................. 196,191 Members’ reserve deposits......................... 213,880 297,126 Cash reserves ...................................... . . . 69.85 Reserve ratio ..................................... . . . $ 149 120 2,762 133,417 136,448 198,155 224,183 311,518 70.54 $ 179 190 4,186 116,716 121,271 174,638 177,505 276,199 70.78 Items on the statement of the Federal Reserve Bank of Richmond nearly all declined between the middle of March and the middle of April this year, discounts for member banks, which rose by $265,000 during the month, being the only exception. No change occurred in the portfolio of open market paper, but advances direct to industry for working capital decreased by $58,000 and ownership of Government securities dropped by $1,808,000. The several changes resulted in a net decline of $1,601,000 in total earning assets between March 15 and April 15. Circulation of Fed eral Reserve notes declined by $1,964,000 during the past month, in keeping with the trend at this season, and member banks reduced their reserve deposits by $10,303,000. Cash reserves of the Federal Reserve Bank of Richmond dropped $14,392,000 between the middle of March and the middle of April, and the ratio of cash reserves to note and deposit liabilities combined declined by 69/100ths of 1 point. In comparison with condition figures at mid-April last year, those for April 15 this year show material increases in most items. Discounts held rose by $235,000 , while the portfolio of open market paper declined $70,000 and industrial advances decreased $1,482,000, all relatively small changes, but an increase of $14,893,000 in Government securities owned brought a net gain during the year of $13,576,000 in total earning assets. Federal Reserve notes in actual circulation rose by $21,553,000 between the middle of April last year and this, due chiefly to increased business activity this year and to higher price levels in many lines. Member bank reserve deposits increased by $36,375,000 during the year, partly due to higher reserve requirements but chiefly to an increase in surplus funds for which prof itable investment was not found. Cash reserves of the Federal Reserve Bank of Richmond rose by $20,927,000 since April 15 last year, but the large increases in note circulation and reserve deposits resulted in a decline of 93/100ths of 1 point in the ratio of cash reserves to note and deposit liabilities combined. Statement of 41 Member Banks ITEMS 000 omitted April 14 March 17 April 15 1936 1937 1937 Loans on stocks and bonds (including Governments) ......................... ................. $ 75,379 164,986 All other loans........................... ................. Total loans and discounts. . .................. 240,365 Investments in securities........ Reserve bal. with F. R. Bank. Cash in vaults........................... ................. 19,837 Demand denosits ..................... .................. 470,213 Time deposits ........................... Money borrowed ....................... .................. 0 $ 73,491 158,250 231,741 422,851 133,823 18,390 464,373 196,561 0 $ 69,816 126,133 195,949 369,241 115,386 16,044 408,141 193,159 0 The accompanying table shows the principal items of condition for forty-one regularly reporting member banks in twelve Fifth district cities as of three dates, thus affording comparison of the latest figures, those for April 14 this year, with figures for the preceding month, March 17, 1937, and for the preceding year, April 15, 1936. It should be understood that the fig ures are not necessarily the highest or lowest figures which occurred during the periods reviewed, but reflect the condition of the reporting banks on the report dates only. During the past month, loans and discounts rose by $8,624,000, of which $1,888,000 represented loans on securities and $6,736,000 represented all other loans, chiefly commercial, agricultural or industrial in char acter. On the other hand, the forty-one banks lowered their investments in securities by $32,581,000 during the past month, but about 70 per cent of this reduction was in one large institution. Aggregate reserve balance carried at the Reserve bank by the forty-one reporting banks declined by $5,197,000 between March 17 and April 14, but cash in vaults rose by $1,447,000 during the same period. Total deposits increased by $6,362,000 since March 17, of which $5,840,000 was in de mand deposits and $522,000 in time deposits. All figures in the composite statement show increases during the past year. Total loans and investments rose by $44,416,000, of which $5,563,000 was in loans on securities and $38,853,000 represented for the most part business loans. Investments in securities rose by $21,029,000 during the year, almost all of the rise being in Governments, either direct obligations or paper guaranteed by the Government as to principal and interest. Aggregate reserve balance of the report ing banks at the Reserve bank rose by $13,240,000 during the year, due to further accumulation of sur plus funds. Cash in vaults increased $3,793,000 be tween the middle of April last year and this, and aggregate deposits rose by $65,996,000, of which $62,072,000 was in demand deposits and $3,924,000 in time and savings deposits. None of the reporting banks borrowed at the Reserve bank or elsewhere dur ing the past year. 3 MONTHLY REVIEW Time and Savings Deposits Time deposits in forty-one reporting member banks in the Fifth district and aggregate deposits in ten mutual savings banks in Baltimore totaled $412,452,008 at the end of March 1937, a higher figure than either $411,099,516 reported at the end of February this year or $398,828,153 at the end of March last year. Both the savings banks and the member banks reported higher figures at the end of March than either a month or a year earlier, the savings banks gaining 4.7 per cent and the member banks 2.0 per cent during the year. The month’s gains were small fractions of 1 per cent. Debits to Individual Accounts CITIES 000 omitted March February 1937 1937 Maryland Baltimore ............... $ Cumberland .......... Hagerstown ............ Three Md. Cities . 385,316 9,549 9,121 403,986 D. of Columbia Washington ............ One D. C. C ity... 286,123 286,123 Virginia Danville ................. Lynchburg .............. Newport News . . . . Norfolk ................... Portsmouth .............. Richmond ................ Roanoke .................. Seven Va. Cities.. $ 333,259 7,456 7,412 348,127 March 1936 $ % of Change Month Year 317,878 7,367 6,946 332,191 + + + + 15.6 28.1 23.1 16.0 + + + + 21.2 29.6 31.3 21.6 236,526 236,526 227,178 227,178 + 21.0 +21.0 + 25.9 + 25.9 9,392 15,636 10,120 56,324 4,211 153,981 30,122 279,786 9,097 13,437 8,819 47,018 3,476 131,888 25,286 239,021 7,368 13,871 7,970 43,732 3.428 127,389 23,665 227,423 + + + + + + + + 3.4 16.4 14.8 19.8 21.1 16.8 19.1 17.1 + 27.5 + 12.7 27.0 + 28.8 + 22.8 + 20.9 + 27.3 + 23.0 West Virginia Charleston .............. Huntington ........... Two W. Va. Cities 54,988 20,381 75,369 44,570 15,573 60,143 44,041 13,521 57,562 H(-23.4 (-30.9 +25.3 + 24.9 + 50.7 + 30.9 North Carolina Asheville .................. Charlotte ........ . Durham ................... Greensboro ............ Raleigh ................... Wilmington ............ Winston-Salem . . . Seven N. C. Cities 13,500 69,320 26,895 20,076 42,873 12,603 43,422 228,689 10,896 54,915 25,946 17,540 35,768 10,137 35,106 190,308 10,876 51,887 21,275 14,498 34,716 9,270 36,531 179,053 [-23.9 -26.2 - 3.7 -14.5 -19.9 -24.3 -23.7 + 20.2 + + + + + + + + South Carolina Charleston .............. Columbia ................ Greenville ................ Spartanburg ............ Four S. C. Cities. 20,286 31,982 23,077 10,872 86,217 16,405 26,557 19,606 8,919 71,487 15,269 26,091 16,360 7,291 65,011 + + + + + 23.7 20.4 17.7 21.9 20.6 (-32.9 -22.6 -41.1 -49.1 + 32.6 District, 24 Cities $ 1,360,170 $ 1,145,612 $ 1,088,418 + 18.7 +25.0 24.1 33.6 26.4 38.5 23.5 36.0 18.9 27.7 Debits to individual, firm and corporation accounts in the banks of twenty-four Fifth district cities total ing $1,360,170,000 in March 1937 showed an increase of $214,558,000, or 18.7 per cent, over debits in the preceding month of February this year, and a gain of $271,752,000, or 25.0 per cent, over debits in the cor responding month of March last year. The increase during the past month, which was largely seasonal, was caused by income tax payments in March and the three extra days in March over1 February, but the rise over March 1936 figures was due chiefly to an in creased volume of trade and industry this year. Every reporting city showed larger figures for March 1937 than for either February 1937 or March 1936. Hunt ington with an increase of 30.9 per cent in March over February figures led all cities in percentage gain last month, and also led in gain over March 1936 figures with an increase of 50.7 per cent, but debits in that city were increased last month as a result of the flood in late January and early February. Employment Favorable weather for outside work stimulated sea sonal increases in employment in several fields in the Fifth Reserve district in March and the first three weeks in April, but industrial work in scattered locali ties was retarded by strikes and there is some fear of further labor trouble, especially in textile plans which have been operating at top speed. Construction work continues to expand, particularly residential work and projects financed by private capital. Unless strikes develop over a wide front, the outlook for employment during the rest of the year now appears better than at any other time since the depression began. The following figures, compiled for the most part by the Bureau of Labor Statistics from reports fur nished by a large number of identical industries, show the trends of employment and payrolls in the Fifth dis trict geographical divisions from January to February 1937, the latest available figures: Percentage change from January to February In number In amount on payroll of payroll States (-1.0 - .3 -1.4 H .3 -2.3 - .8 D. of Columbia ....................... West Virginia ....................... North Carolina ....................... South Carolina ....................... + + + + + + 1.8 .7 1.3 .6 2.8 Coal Production Total production of bituminous coal in the United States was 50,720,000 net tons in March 1937, an increase of 20.4 per cent over 42,110,000 tons mined in February this year and 60.9 per cent over 31,527,000 tons dug in March last year. On a daily basis, pro duction in March 1937 was only 6.6 per cent above February 1937 but 54.9 per cent above March 1936. Total output during the first quarter of 1937 was 133,770,000 net tons compared with 112,476,000 tons mined in the corresponding period last year, an in crease of 18.9 per cent. Shipments of coal through Hampton Roads ports to April 3 totaled 6,521,559 tons this year, 5,457,677 tons to the same date last year, and 5,885,031 tons to April 3, 1929. In its April 10 report the Bureau of Mines gave State production figures for February 1937 and 1936. and Fifth district coal states, which dug 27.7 per cent of the National total, were reported as follows: States West Virginia ............ Virginia ....................... Maryland ..................... 5th District .................. United States ............. Production February 1937 10,380,000 1,140,000 160,000 11,680,000 42,110,000 tons tons tons tons tons Production February 1936 10,103,000 1,045,000 188,000 11,336,000 41,154,000 tons tons tons tons tons Percentage chancre + 2.7 4“ 9*1 — 14.9 + 3.0 + 2.3 4 MONTHLY REVIEW Cotton Textiles An increase during March of 2.3 per cent in the daily cotton consumution in Fifth district textile mills was recorded over daily consumption in February, and total consumption rose 15.1 per cent, due to the longer month. Last month also showed an increase of 34.2 per cent over consumption in March 1936. The three textile manufacturing states in the Fifth district used more cotton in March than in any other month on record, but consumed only 46 per cent of the National total in comparison with 48.5 per cent used in the district in March last year. Consumption of cotton in the dis trict in March 1937, February 1937 and March 1936 was as follows, in bales: Months No. Carolina So. Carolina Virginia District March 1937................... ..... 198,392 February 1937................... 171,997 March 1936................. ..... 143,698 143,873 125,472 109,152 15,852 13,726 14,040 358,117 311,195 266,890 3 Months, 1937.................544,804 3 Months, 1936................. 431,207 397,044 324,323 42,884 41,023 984,732 796,553 On March 19, the Department of Commerce issued a report on spindles in place, spindles active in Feb ruary, total spindle hours of operation in February, and average hours of operation per spindle in place in February. On February 28, 1937, there were 27,103,076 spindles in place in the United States, North Caro lina leading with 6,063,902, or 22.4 per cent of the total, while South Carolina ranked second with 5,679,236 spindles, or 21.0 per cent, and Massachusetts third with 4,062,536 spindles, or 15.0 per cent. The Fifth district as a whole had 45.7 per cent of total spindles in place in the United States at the end of February 1937, of which 94.9 per cent were active at some time during the month. In actual spindle hours of operation, South Carolina led all states for February with 2,071,196,312 hours, or 24.8 per cent of the Na tional total of 8,352,662,()65 hours, and North Carolina ranked second with 1,915,610,429 hours, or 22.9 per cent. The Fifth district, with 45.7 per cent of total spindles in the United States in place in February, showed 50.0 per cent of total hours of operation. In actual hours of operation per spindle in place, South Carolina with an average of 365 hours per spindle ranked first, but North Carolina with 315 hours tied for sixth place with Mississippi and Virginia with 292 hours ranked no better than ninth. The average hours of operation for the United States was 308 per spin dle in place. Statistics on Cotton Spot cotton prices between March 19 and April 16 on ten Southern markets moved in a curve, rising from 14.16 cents for middling grade % inch upland cotton on March 19 to 14,91 cents on March 30, and then falling off to 13.48 cents on April 16, the latest date for which the average price is available. The decline in April began apparently as a result of selling by foreign interests following rumors that our Govern ment contemplated a reduction in the price of gold and continued on further selling pressure from both foreign and domestic sources. The later drop in cotton ! was also associated with a decline in the general level of prices of other commodities around the middle of April. The following figures show recent trends in the spot market, and comparitive per pound prices in nine earlier years on the corresponding Fridays near est the 1937 dates: Middling Grade, % inch Upland Cotton, Per Pound Years 1937 1936 1935 1934 1933 1932 1931 1930 1929 Mar. 19 Mar. 26 April 2 April 9 April 16 14.16 11.40 11.23 12.15 6.32 6.43 10.08 15.36 19.62 14.23 11.64 11.29 11.90 6.24 6.19 10.07 15.31 19.58 14.62 11.57 11.25 12.03 6.16 5.92 9.77 15.70 19.31 14.23 11.61 11.89 12.11 6.42 5.74 9.51 15.54 19.32 13.48 11.62 11.96 11.87 6.70 5.96 9.48 15.16 18.97 Cotton consumption figures as released by the Cen sus Bureau broke all previous records in March, and exceeded March 1936 consumption by 41.5 per cent. Bales of cotton consumed in the United States during the eight months of the present cotton year, beginning last August 1, totaled 29.7 per cent more than the cotton used during the corresponding eight months ended March 31, 1936. Consuming establishments on March 31 this year held 55.6 per cent more cotton than a year earlier, but cotton in public storage and compresses declined 23.3 per cent during the year. Cotton Consumed and On Hand (Bales) Fifth district states : Cotton consumed .............. Cotton growing states: Cotton consumed ................ Cotton on hand Mar. 31 in consuming establishments Storage & compressas.. . . March 1937 March 1936 Aug. 1 to Mar. 31 This yr. Lastyr. 358,117 266,890 2,470,789 1,956,957 642,440 466,775 4,415,155 3,425,504 1,711,123 4,925,740 1,113,743 6,452,752 .......... .......... .......... .......... United States: Cotton consumed ................ 779,302 Cotton on hand Mar. 31 in consuming establishmemits 2,079,862 Storage & compresses... 5,036,962 550,641 5,291,936 4,080,999 1,336,529 6,570,222 .......... .......... .......... .......... 404,741 4,389,199 4,814,360 Exports of cotton ................. 467,706 Cotton seed received at the United States mills be tween August 1, 1936, and March 31, 1937, totaled 4,392,789 tons, compared with 3,647,196 tons received in the eight months ended March 31, 1936. Of the receipts mentioned, North Carolina mills took 226,555 tons this year and 218,330 tons last year, and South Carolina mills received 215,498 tons and 198,184 tons in the two periods, respectively. The mills crushed 4,100,301 tons of seed in the period ended March 31 this year, and had 314,179 tons on hand at the end of the period, compared with 3,537,467 tons crushed in the eight months ended March 31, 1936, and 199,304 tons on hand on that date. Tobacco Manufacturing Tobacco manufacturing increased further in March 1937, and made a better comparison with figures for the corresponding month last year than was shown in February 1937. Output of tobacco products in March 1937 and March 1936 in the United States, according 5 MONTHLY REVIEW to the report of the Bureau of Internal Revenue, was as follows: March 1937 Smoking & Chewing Tobacco, Pounds ........ . Cigarettes, Number ......... Cigars, Number .............. Snuff, Pounds .................. 27,878,554 12,791,724,170 466,831,085 3,205,251 March 1936 26,996,069 11,193,046,810 377,167,052 3,319,160 % Change + 3.3 + 14.3 + 23.8 — 3.4 No production figures were released on a State basis, but at the rate of production attained by Fifth district States in 1936 the district manufactured approximately 10.745.048.000 cigarettes last month, or 84 per cent of the National total; 14,327,000 pounds of smoking to bacco and snuff, or 45 per cent of the total; and 51,351.000 cigars, or 11 per qent of the total. Taxes paid to the Federal Treasury in March 1937 on to bacco manufacture totaled $45,125,495, compared with $39,975,260 paid in March 1936, an increase last month of 12.9 per cent. Agricultural Notes The past winter was comparatively mild, and winter grains began spring growth in excellent condition. The average condition of wheat in the Fifth district on April 1 was materially better than a year earlier, al though cold weather in March retarded development. However, the cold delayed premature swelling of ap ple buds, and present indications point to good pros pects for apples this year unless very unfavorable weather occurs at blooming time. Intentions to plant figures released by the Department of Agriculture on March 19 showed that acreages of most crops will probably be increased in the Fifth district this year Maryland farmers indicated larger plantings of tobac co, cowpeas and soybeans, reduced acreage to oats, and the same acreages to corn, barley, hay, potatoes and sweet potatoes. West Virginia farmers intend to increase corn, tobacco, cowpeas and hay, reduce oats, and leave barley, potatoes and soybeans unchanged. Virginia acreages planted to corn, oats, barley, hay, soybeans, cowpeas, potatoes, sweet potatoes, peanuts and tobacco will all be increased this year, according to farmers’ reports. North Carolina farmers intend to shift extensively from certain food and feed crops to major cash crops. Increased plantings this year of barley, hay, potatoes, tobacco and peanuts are reported, while corn and sweet potato acreages will be reduced. South Carolina farmers plan to increase acreages planted to potatoes, tobacco, soybeans and cowpeas, but plantings of corn and bats will be reduced and hay, sweet potatoes and peanut acreages will remain ap proximately unchanged. Building Permits Issued in March 1937 and 1936 Permits Issued 1937 1936 CITIES 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......................... Winston-Salem, N. C............. Charleston, S. C......................... Columbia, S. C......................... Greenville, S. C......................... Rock Hill, S. C......................... Spartanburg, S. C....... ........... Washington, D. C................... 849 23 15 23 26 46 44 132 2 34 149 51 13 134 57 46 48 92 47 45 52 30 24 7 114 46 76 57 23 31 639 District Totals ................... 2,975 Total Valuation, 1937 1936 801 8 11 11 17 35 40 129 1 51 111 59 8 115 49 23 35 107 32 59 49 18 12 9 119 50 54 80 34 25 575 $2,157,960 23,270 28,430 32,345 16,725 141,389 283,721 130,555 3,500 16,756 394,616 113,628 45,840 230,555 76,482 329,315 56,115 272,931 167,052 104,325 55,915 424,840 181,520 21,275 264,415 72,507 159,216 126,042 42,315 106,383 3,612,835 $1,394,040 8,350 65,216 7,145 155,530 107,740 58,102 98,199 4,000 17,280 333,776 73,902 6,800 219,070 29,811 273,755 29,940 162,707 171,318 118,057 25,248 14,300 10,540 16,460 135,501 522,802 93,038 171,807 51,700 23,982 2,187,085 2,727 $9,692,773 $6,587,201 amounting to $9,692,773 showed an increase of 42.1 pter cent over March 1936 valuation of $6,587,201. Twenty-two cities reported more permits issued last month than in March last year, and twenty-three cities reported higher valuation figures. Contracts awarded for all types of work, and including both rural and urban projects, totaled $24,371,500 in March this year, of which $9,898,500 represented residential construc tion, compared with contract awards totaling only $17,136,158 in the Fifth district in March 1936, with $6,109,238, or 36 per cent of the total, being for resi dential work. Total awards in March this year ex ceeded the March 1936 awards by 42.2 per cent. Contract award figures as compiled by the F. W. Dodge Corporation are now available by States for February 1937 and 1936, and are as follows for the Fifth district: Construction Contracts Awarded States Maryland ............................... D. of Col................................ Virginia ............................... West Va.................................. No. Carolina.......................... So. Carolina.......................... District .......... i ........... . Feb. 1937 Feb. 1936 $ 4,097,400 7,274,800 4,833,900 1,211,400 2,297,500 2,158,400 $21,873,400 $ 2,943,800 2,376,700 1,640,800 1,230,100 2,527,200 ■ ; 2,681,700 $13,400,300 % Change + 39.2 4-206.1 -j-194.6 — 1.5 — 9.1 — 1Q.5 + 63.2 Automobile New Car Registrations Automobile sales figures are good indicators of con sumer buying power, and registrations of new passen ger cars in the Fifth Federal Reserve district in the Construction first three months of 1937 totaled 31 per cent more Building permits issued in thirty-one Fifth district than registrations in the corresponding period of 1936. cities in March 1937 showed marked improvement over; There was also a shift from the three most popular the figures reported for March last year in both num makes to higher priced cars, registrations of the three ber and total valuation. Last month 2,975 permits making up only 67.0 per cent of total new car regis were issued for all classes of work, compared with trations in the first quarter of this year in comparison 2,727 permits issued in March 1936, an increase of with 72.5 per cent in the first quarter last year. Reg 9.1 per cent. Total valuation figures for March 1937 istrations of new passenger cars in Fifth district States MONTHLY REVIEW 6 between January 1 and March 31 this year and last, according to figures compiled by R. L. Polk & Co., were as follows: Registrations of New Passenger Care 3 Months 1937 States 3 Months 1936 % Increase Maryland ................. ..................... ........................ ....................... West Virginia ............................... North Carolina............................... South Carolina............................... 10,959 7,175 11,641 7,063 12,697 7,213 7,419 7,000 9,427 5,978 8,578 4,915 1-47.7 - 2.5 -23.5 hl8.1 -48.0 -46.8 5th District ................................. 56,748 43,317 + 31.0 Retail Trade, 28 Department Stores Baltimore Washington Other Cities District March 1937 sales, compared with sales in March 1936: — j— 19.3 +14.0 +23.6 +17.6 Jan.-March 1937 sales, compared with sales in Jan.-March 1936: +13.6 + 9.0 +14.4 +11.6 Mar. 31, 1937, stocks, compared with stocks on Mar. 31, 1936: +10.3 +15.5 + 9.9 +12.5 Mar. 31, 1937, stocks, compared with stocks on Feb. 28, 1937: + 5.7 + 5.6 + 5.3 +5 .6 Number of times stocks were turned in March 1937: .357 .361 .343 .356 Number of times stocks were turned since Jan. 1, 1937: .885 .948 .845 .906 Percentage of Mar. 1, 1937, receivables collected in March: 31.8 27.7 31.8 29.7 In addition to the 28 stores which reported on sales, stocks, receivables and collections, sales figures alone were received from 26 other stores representing for the most part smaller cities and towns. The sales in these 2*6 stores have been combined with sales in the 28 stores in the above table, and percentage changes calculated on a State basis, as follows: Va. W. Va. N. C. S. C. District 12* 8* 7* 11* 54* March 1937 sales, compared with sales in March 1936: +22.3 +49.2 +27.8 +25.2 +19.3 Jan.-March 1937 sales, compared with sales in Jan.-March 1936: +14.5 +19.8 +17.4 +18.4 +12.4 ♦Number of reporting stores. Wholesale Trade, 56 Firms 21 Groceries 7 Dry Goods 6 Shoes 12 Hardware 10 Drugs March 1937 sales, compared with sales in March 1936: +20.5 — .1 +27.8 +27.6 +11.8 March 1937 sales, compared with sales in February 1937: +16.8 +17.2 +37.6 +30.4 + 7.2 Jan.-March 1937 sales, compared writh sales in Jan.-March 1936: +13.7 +10.1 +21.6 . +25.7 +10.7 March 31, 1937, stocks, compared with stocks on Mar. 31, 1936: +16.3(8*) +45.2(3*) +22.2(4*) + 9.5(7*) March 31, 1937, stocks, compared with stocks on Feb. 28, 1937: + 1.2(8*) + 3.3(3*) —16.5(4*) + 4.0(7*) Percentage of collections in March to receivables March 1: 120.9(12*) 41.5(4*) 48.7(5*)) 50.7(11*) 71.4(6*) ♦Number of reporting firms. (Compiled April 21, 1937) BUSINESS CONDITIONS IN THE UNITED STATES (Compiled by the Board of Governors of the Federal Reserve System) In March industrial activity continued to increase and payrolls at factories and mines showed a substantial rise. Prices of basic commodities after advancing rapidly in March declined in the first half of April. IND USTRIAL PRODUCTION Production and Employment Industrial production increased from February to March and the Board’s seasonally adjusted index ad vanced from 116 percent of the 1923-1925 average to FACTORY EMPLOYMENT AND PAYROLLS PERCENT PER CENT 120 120 110 A A 100 K 110 \ 100 A 90 7 * 90 Emp!<Dyment 80 - / / sj 70 \ Payrro!ls_^ 1 60 j 70 */ ' V* A.i I f / »/■ V 60 50 S i 50 J 80 40 40 30 30 1929 Index of physical volume of production, adjusted for seasonal variation, 1923-25 average=100. By months, January 1929 through March 1937. 1930 1931 1932 1933 1934 1935 1936 1937 Indexes of number employed and payrolls, without adjustment far seasonal variation, 1923-1925 average=100. By months, January 1929 to March 1937. Indexes compiled by the U. S. Bureau of Labor Sta tistics. 7 MONTHLY REVIEW 118 percent. The rise reflected a sharp increase in out put of minerals, chiefly coal, and an increase of some what more than the usual seasonal amount in manufac turing. The larger output of coal in March was due in part to stocking by consumers in anticipation of a pos sible strike at bituminous coal mines on April 1 when the agreement between mine operators and the miners’ union expired. A new agreement was reached on April 2 but, owing partly to the previous accumulation of stocks, production in the first ten days of April showed a sharp decline. During March activity at steel mills in creased seasonally and in the first three weeks of April was over 90 percent of capacity. In the automobile in dustry output showed about the usual seasonal increase in March and the first three weeks of April, considerable fluctuations during this period being largely in response to developments in the labor situation. Lumber pro duction expanded considerably in March, and there was a sharp rise in output of nonferrous metals. Cotton con sumption, which has been at an unusually high level in recent months, increased further in March and in actual amount was larger than in any previous month. Produc tion at woolen mills and shoe factories continued in large volume. Value of construction contracts awarded in March, as reported by the F. W. Dodge Corporation, was at about the same level as in February and substantially higher than a year ago. Privately-financed work increased, while the amount of publicly-financed work continued to decline. The increase in privately-financed projects re flected a larger volume of residential building and of fac tory and commercial construction. Employment and payrolls increased by considerably more than the usual seasonal amount between the middle of February and the middle of March. The expansion in payrolls was larger than in employment, reflecting in part a further rise in wage rates. In manufacturing, the principal increases in employment were in industries pro ducing durable goods, particularly steel, machinery, and lum,ber. The number employed in the production of nondurable manufactures showed slightly more than the usual seasonal rise. W HO LESALE P R IC E S PER C ENT Distribution Distribution of commodities to consumers showed about the usual seasonal increase from February to March. Mail-order sales expanded considerably but the rise in department store sales was less than seasonal, con sidering the early date of Easter this year. Commodity Prices Prices of nonferrous metals, steel scrap, rubber, cotton, and wheat, which had advanced rapidly in March, de clined considerably in the first half of April. Since the middle of March prices of coke, tin plate, and rayon have advanced and there have been smaller increases in a wide variety of other industrial products. Dairy products have declined, reflecting in part seasonal developments. Bank Credit In the four-week period from March 24 to April 21 ex cess reserves of member banks increased from $1,270,000,000 to $1,590,000,000, reflecting principally dis bursements by the Treasury from balances with Federal Reserve banks and purchases of U. S. Government obli gations by the Federal Reserve System. The bulk of the increase in excess reserves was at banks in New York City and Chicago. Total loans and investments of reporting member banks, which had declined sharply in March, reflecting sales of U. S. Government obligations, showed little change in the two weeks ending April 14. Loans to brokers and dealers in securities declined from the mid dle of March to the middle of April, while other loans, which include loans for commercial, industrial, and agri cultural purposes, showed a substantial increase. These loans have increased almost continuously over the past year. Demand deposits, after declining in March, increased somewhat in the first half of April, and there was an in crease in foreign bank balances, reflecting an inward movement of short-term funds from abroad. Money Rates The rate on prime commercial paper advanced from £4 percent to 1 percent in the latter part of March. Bond yields, which had advanced sharply in March, showed no pronounced change in the first three weeks of April. PER CE N T f10 BILLIONS OP DOLLARS M EM BER BA N K CREDIT BILLIONS O F D O L L A R S 24 100 Total Loan and Investme — 90 23 *ts 7 ^ 22 21 20 L 80 — II c /S^/4 ^ Obligations ... d 70 \ [ 60 s i+ S * Tote>1 Loans 50 Other Securities 40 30 1932 1933 1934 1935 1936 1937 1— ’34 Indexes compiled by the U. S. Bureau of Labor Statistics, 1926= 100. By weeks, 1932 to date. Latest figure is for week ending April 17, 1937. cities. 1935 '3 4 1 1935 Wednesday figures for reporting member banks in 101 leading September 5, 1934, to April 14, 1937.
@FedFRASER