Full text of Economic Quarterly (Federal Reserve Bank of Richmond) : August 1925

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BUSINESS AND AGRICULTURAL CONDITIONS

W IL L IA M W . H O X T O N , C h a i r m a n a n d F e d e r a l R e s e r v e

RICHMOND, VIRGINIA

A gent

AUGUST 31, 1925

Business followed seasonal trends in the Fifth Dis
trict during July and early August, the total volume
of trade somewhat exceeding that of July 1924.
Correspondents profess to believe that the prospects
for a moderately active fall trade are good, and the
outlook probably improved during the past month.
None of the important business indicators show any
fundamental changes since the middle of July.
The Fifth District is largely agricultural, and the
prosperity of the farmer is vital. On the whole,
present indications are for larger yields in most of
the District’s leading crops, but the returns this year
will be unevenly distributed, and it is highly neces
sary that business firms survey local conditions care
fully in making plans for fall and winter business.
The cotton crop of the District is expected to exceed
that of 1924, but in Piedmont South Carolin? one
of the best business sections of the District, the crop
is very poor. On the other hand, southern and east
ern South Carolina, which were hard hit during the
past two years, have good cotton crops this year,

and the tobacco crop in eastern South Carolina is one
of the largest on record. In Virginia, this year’s
tobacco crop is approximately 40 per cent below the
1924 crop, which was in turn considerably below the
ten year average. Virginia’s fruit prospects are very
poor, and the same may be said for Maryland fruit.
Throughout the entire District conditions vary wide
ly from county to county, chiefly depending upon
the rainfall the different sections have received.
Prices of the chief money crops are not quite up to
those of 1924, on the whole. Tobacco prices are
approximately the same as last year, and truck crop
prices are considerably higher this year, but cotton
prices are more than enough lower this year to bal
ance the advance in truck prices. Corn and wheat
prices are much higher than last year, but these are
~pt money crops to any considerable extent, and ex
cept in Virginia and Maryland will add little to farm
income. In sections of the District in which corn
and wheat have to be purchased, the higher prices
will lower the farmer’s net returns from his year’s
work.

FEDERAL RESERVE BANK OPERATIONS
Member bank borrowing at the Federal Reserve Bank of Richmond increased slightly during the past
month, rising from $47,439,000 on July 15th to $50,872,000 on August 15th, and the circulation of Fed
eral Reserve notes also increased, rising from $69,637,000 to $70,819,000. On the other hand, member
bank reserve deposits declined from $66,150,000 to $65,378,000 during the period under review. The cash
reserves of the Federal Reserve Bank of Richmond rose from $83,382,000 on July 15th to $85,559,000 on
August 15th. As a result of the several changes in reserves, deposits and note circulation, the ratio of cash
to combined note and deposit liabilities rose from 60.97 per cent on July 15th to 6 1.18 per cent on August 15th.
On August 15th last year the Federal Reserve Bank of Richmond had a reserve percentage of 78.52,
compared with 6 1.18 per cent this year. Cash reserves amounted to $104,638,000 on August 15, 1924, in
comparison with $85,559,000 on August 15th this year; member bank reserve deposits totaled $60,867,000 in
comparison with $65,378,000 on the same date this yea r; and Federal Reserve notes in actual circulation
amounted to $70,050,000 in comparison with $70,819,000 this year. Last year at this time the Federal Reserve
Bank of Richmond was lending only $33,606,000 to member banks, but this year a total of $50,872,000 was
outstanding on August 15th.

The National Summary will be found on page 8

CONDITION OF SEVENTY-THREE REPORTING MEMBER BANKS IN SELECTED CITIES
ITEMS
1. Total Loans and Discounts (including
all rediscounts)........................................
2. Total Investments in Bonds and Securi
ties .........................................................
3. Total Loans and Investments....................
4. Reserve Balance with Federal Reserve
Bank .........................................................
5. Cash in Vaults..............................................
6. Demand Deposits..........................................
7. Time Deposits..............................................
8. Borrowed from Federal Reserve Bank....

August 12, 1925

July 8, 1925

August 13, 1924

$503,838,000

$496,200,000

$459,537,000

131.849.000
635.687.000

137.878.000
634.078.000

119.248.000
578.785.000

38.844.000
16.869.000
356.337.000
202.250.000
17.498.000

38.742.000
14.523.000
354.515.000
204.401.000
20.473.000

36.616.000
13.136.000
337.015.000
176.832.000
8,205,000

The accompanying table shows the principal items of condition reported by seventy-three identical mem
ber banks in thirteen Fifth District cities as of three dates, August 12, 1925, Ju ly 8, 1925, and August
13, 1924. Opportunity is thus offered for drawing comparisons between the figures for the latest available
date and those reported a month earlier and on the corresponding date last year.
During the past month there was a slight increase in the reporting banks’ accommodations to their cus
tomers, total loans and discounts increasing from $496,200,000 on July 8th to $503,838,000 on August 12th,
crossing the half billion mark on the latter date for the first time on record. The expansion in loans was ac
companied by a reduction in investments in bonds and securities from $137,878,000 to $131,849,000 between
July 8th and August 12th, and by an increase in demand deposits from $354,515,000 to $356,337,000. The
reporting banks also reduced their volume of borrowing at the Reserve Bank from $20,473,000 to $17,498,000,
increased their reserve balances at the Reserve Bank from $38,742,000 to $38,844,000, and raised their cash in
vaults from $14,523,000 to $16,869,000. Between Ju ly 8th and August 12th, time deposits declined from
$204,401,000 to $202,250,000, a more or less seasonal development at vacation time.
In comparison with the figures reported a year ago, August 13, 1924, those reported on August 12th this
year were larger in every item. During the year total loans to customers rose from $459,537,000 to $503,838,000; total investments in bonds and securities rose from $119,248,000 to $131,849,000; reserve balances
with the Reserve Bank rose from $36,616,000 to $38,844,000; and cash in vaults rose from $13,136,000 to
$16,869,000. The increases in resources just enumerated were made possible chiefly by an increase in de
mand deposits from $337,015,000 to $356,337,000; a gain in time deposits from $176,832,000 to $202,250,000;
and an increase in borrowing at the Reserve Bank from $8,205,000 to $17,498,000.

SAVINGS DEPOSITS
In five of the past six years, declines in total deposits were reported by fourteen mutual savings banks in
Baltimore during the month of July, and this year the total dropped from $150,220,063 on June 30th to $149,932,660 on July 31st. On the latter date, however, the aggregate of deposits was 4.6 per cent greater than
the total of $143,285,162 reported by the same banks on July 31, 1924. During the five and one-half years
since January 31, 1920, when the Federal Reserve Bank of Richmond began tabulating mutual savings bank
figures, deposits in fourteen Baltimore institutions have risen from $118,733,466 to $149,932,660 on July 3 1,
1925, an increase of 26.3 per cent. As pointed out elsewhere in this Review, time deposits in reporting mem
ber banks in the Fifth District also showed a seasonal decline in July, falling from a total of $204,401,000 on
Ju ly 8th to $202,250,000 on August 12th.

DEBITS TO INDIVIDUAL ACCOUNTS IN LEADING TRADE CENTERS
Debits to individual, firm and corporation accounts in twenty-three leading business centers of the Fifth
Reserve District during the five weeks ending August 12, 1925, amounted to $1,463,403,000, denoting a de
cline of 6.9 per cent in comparison with total debits amounting to $1,571,812,000 during the preceding five
weeks period, ending July 8, 1925, most of the decline being seasonal and due to the large volume of dividend
and semi-annual interest payments on July 1st. The decrease was uniformly distributed, nineteen of the
twenty-three cities reporting lower figures for the more recent period. The large increase in Raleigh’s fig
ures was caused by movements of State funds rather than to any marked increase in local business trans
actions.
The reporting cities, with debits aggregating $1,463,403,000 during the five weeks ending August 12th
this year, show an increase of 12.3 per cent over the total of $1,303,452,000 reported for the corresponding
five weeks ending August 13th last year, seventeen of the twenty-three cities registering gains.

TOTAL DEBITS FOR THE FIVE WEEKS ENDING
CITIES

August 12, 1925

July 8, 1925

August 13, 1924

Asheville, N. C................
Baltimore, Md................
Charleston, S. C............
Charleston, W . V a....... .
Charlotte, N. C............. .
Columbia, S. C...............
Cumberland, Md...........
Danville, V a...................
Durham, N. C...............
Greensboro, N. C..........
Greenville, S. C.............
Hagerstown, Md...........
Huntington, W. Va. ...
Lynchburg, V a..............
Newport News, V a.......
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.~.

31.350.000
497.766.000
23.405.000
39.521.000
50.959.000
16.961.000
11.689.000
11.760.000
28.884.000
20.647.000
24.347.000
11.975.000
29.400.000
21.703.000
9,837,000
70.004.000
60.691.000
142.110.000
28.452.000
15.092.000
257.933.000
18.874.000
40.043.000

36.498.000
520.333.000
25.144.000
41.947.000
53.075.000
20.562.000
10.960.000
13.039.000
26.928.000
26.790.000
26.910.000
13.658.000
30.278.000
25.580.000
10.410.000
82.362.000
39.285.000
159.729.000
30.936.000
16.790.000
300.943.000
20.206.000
39,449,000

30.452.000
433.025.000
24.624.000
38.998.000
43.576.000
20.837.000
10.874.000
9.291.000
21.671.000
23.462.000
19.331.000
12.653.000
28.399.000
20.712.000
8.838.000
81.079.000
28.311.000
134.473.000
26.063.000
13.514.000
215.500.000
19.371.000
38.398.000

District Totals.

$1,463,403,000

$1,571,812,000

$1,303,452,000

BUSINESS FAILURES IN JULY
In the August 8th issue, Dun's Review stated that “A progressive reduction in the number of commercial
failures in the United States has occurred during the last three months, and the July total of 1,685
the
smallest of the current year. It compares with 1,745 defaults in June, 1,767 in May, 1,939 in April, and
with 2,317 last January, the high point of the year. Moreover, last month’s total is little more than 4 per
cent in excess of the 1,615 failures of July 1924, despite the fact that the number of firms in business has
increased substantially since that time. Besides the favorable showing as to the number of defaults, the lia
bilities for July of the present year—$34,505,191—are also relatively moderate. They are not only consid
erably below those for June, but are less than the amounts for all other months this year, excepting March,
and are well below the $36,813,238 for July 1924. Further analysis of the record shows that there were fewer
large failures last month than in any previous July since 1919, those having liabilities of $100,000 or more in
each case numbering 42. This compares with 54 such defaults in July 1924, but in that month of 1919 only
7 large failures were reported.”
!
The failure record in the Fifth District during Ju ly was less favorable than the national record, 156
iiisolvenies with liabilities of $3,207,713 in J u l y '1925 comparing with 123 insolvenies and liabilities of
$2,675,646 in July 1924, increases this year of 26.8 per cent and 19.9 per cent in number and liabilities re
spectively.
L A B O R — In the Fifth Federal Reserve District, unemployment has increased somewhat since Ju ly 1st,
but is not yet marked in any particu-lar locality. Unskilled labor is not quite in as active demand, and in
dustrial plants are operating on summer schedules. Most of these developments are seasonal, however, many
factory managers using the vacation period as an opportunity to overhaul machinery or make other changes
that tend temporarily to restrict operations. Farm labor is more plentiful than for several years, and in
South Carolina the number of available workers is reported to be slightly in excess of demand. Cotton pick
ing will absorb all surplus by the middle of September, however. Workers in the building trades are not
as fully occupied as they were a few months ago in most of the cities of the District, and there are signs
that building construction is tending to show somewhat more recession than the normal seasonal decrease,
a natural result of two record breaking years in building.
C O A L — Since the end of June the production of bituminous coal has been steadily increasing, and dur
ing the week ending August 8th reached a daily average of 1,659,000 net tons, a larger figure by 320,000
tons than the daily average of 1,339,000 tons mined during the corresponding week of 1924. The daily rate
of production this year has exceeded last year’s rate since April 1st and total production to date during the
present calendar year now totals 285,493,000 net tons in comparison with 274,615,000 net tons mined during
the first seven months of 1924. West Virginia continues to lead all bituminous coal producing states, ex
ceeding its nearest rival by about half a million tons each week. Producers in the southern part of the State
are taking an increasingly optimistic view of the situation.

TEXTILES— Since the middle of July there has been a better market for textiles in secondary hands,
but practically no improvement in demand has been reported by manufacturers. The Fifth District mills con
tinue to operate less actively than during the winter and spring months, and July cotton consumption was less
than that of June, although it continued higher than during the corresponding month a year ago. Corres
pondents engaged in textile manufacturing express somewhat more optimistic views at present than they did
six weeks or two months ago, and a moderately satisfactory volume of business is now expected to develop
during the fall months. Stocks of manufactured goods have apparently been kept low, and any increase in
demand will have to be passed back to the mills almost immediately.
Cotton consumed in the Fifth District mills during July totaled 189,871 bales, North Carolina mills using
99,947 bales, South Carolina mills 81,197 bales, and Virginia mills 8,727 bales. In June this year the three
states consumed 197,998 bales, but in July 1924 they used only 140,863 bales.
COTTON— Between the middle of July and the middle of August, spot cotton prices in the Carolinas
fluctuated nervously as numerous crop condition and weather reports were issued by official and private
agencies, the change resulting in a net decline. In our Review last month we quoted the average price paid
in the Carolinas for middling cotton during the week ending July 18th as 24.36 cents per pound. The follow
ing week, ending July 25th, the average price declined to 24.09 cents, but rose sharply to an average of
24.98 cents during the week ending August 1st, the ri^e resulting from, the Department of Agriculture’s con
dition report released on July 24th, which report showed a heavy reduction in prospective production under
the estimate given in the report released earlier in July. From the middle of July weather reports were some
what more favorable, however, and during the week ending August 8th the average price of cotton in the
Carolinas declined to 23.77 cents, and continued the decline to 23.74 cents during the week ending August
15th, the latest period for which figures are available.
Since our July 31st Review was written^ the Department of Agriculture has issued two cotton condition
reports, reflecting conditions as of July i6thj and August 1st. The July 16th report showed a decided decline
in crop prospects, but between that date and jAugust 1st there was comparatively little change. The August
1st report estimated the probable yield this year at 13,566,000 bales, based upon a condition of 65.6 per cent
of a normal, compared with an estimate of 14,339,000 bales and a condition of 75.9 per cent on July 2nd this
year and a 1924 production of 13,618,751 bales. On August 1st last year the condition of the crop was 67.4
per cent of a normal, approximately 2 per cent above the condition on the same date this year. The August
1st condition in South Carolina was 62 per cent, compared with 79 per cent on June 25th this year and 60
per cent on August 1, 1924; the North Carolina crop was 75 per cent of normal on August 1st this year,
compared with 77 per cent a month earlier and 58 per cent a year earlier; and Virginia’s condition was 75
per cent on August 1st, compared with 83 per cent on June 25, 1925, and 51 per cent on August 1, 1924.
All of the Fifth District cotton states show a higher condition this year than on the corresponding date last
year, but the crop in South Carolina is in worse condition in the largest cotton growing counties, and it is
therefore very doubtful whether as large a yield will be gathered in that state this year as in 1924.
Cotton consumed in American mills during July totaled 483,898 bales of lint, according to the Census
Bureau’s report of August 14th. This figure compares with 493,765 bales used in June 1925 and 347,099
bales in July 1924. Total American consumption for the cotton year—August 1, 1924 to August 1, 1925—
amounted to 6,178,349 bales, compared with 5,680,099 bales consumed during the twelve months ending July
31, 1924. Cotton on hand in consuming establishments totaled 866,359 hales on July 31, 1925, compared with
1,12 3,8 13 bales on hand a month ago and 721,589 bales a year ago. Public warehouses and compresses held
514,196 bales on July 31, 1925, compared with 759,945 bales on June 30, 1925, and 673,925 bales on July 31,
1924. Imports of cotton in July totaled 9,927 bales, compared with 19,957 bales in June 1925 and 6,597 bales
in July 1924, while exports during July totaled 202,468 bales, compared with 217,786 bales in June this year
and 2 11,5 3 3 bales in July last year. Total exports during the year ending July 31st this year amounted to
8,195,896 bales, compared with 5,772,000 bales sent abroad during the twelve months ending July 31, 1924.
Active spindles in July numbered 31,760,596, compared with 32,309,896 in June 1925 and 28,728,754 in July
I92 4 .
Cotton consumed in cotton growing states in July amounted to 327,087 bales, compared with 337,651
bales used in June 1925 and 24 1,157 bales in July 1924.
North Carolina is expected to produce 1,114 ,336 bales of cotton this year, compared with 858,017 bales
ginned in 1924. Weevil damage prior to August 1st was less serious than had been feared, due chiefly to
the dry, hot weather which was unfavorable for weevil development. The dry weather caused excessive
shedding of squares and bolls, however, and brought an early maturity while the plants were still small.
Stands are rather irregular and spotted, especially in Piedmont counties. The first grown bolls were noticed
about three days earlier than last year. South Carolina’s 1925 crop is estimated at 849,400 bales, com
pared with 806,065 bales grown last year. The crop in the Coastal counties and in Eastern Carolina is far
better than on August 1, 1924, but conditions in the heavy producing Piedmont counties are distinctly less
favorable this year. On clay soils the cotton is very small and has little fru it; in fact, the plant is smaller than
usual throughout the entire Piedmont area. The weevil has done comparatively little damage this year.

Picking began in July, and one county reported two bales ginned during the month. Virginia expects to
raise 47,000 bales this year, compared with 38,000 bales grown in 1924. The growth of most plants is back
ward, and the number of bolls considered safe on August ist was very small. The crop on August ist was
generally in condition to respond quickly to adequate rains, and as the state has received several hard rains
since that date, it is probable that Virginia’s cotton has distinctly improved.

TOBACCO
N O R T H C A R O L IN A ’S tobacco condition on August ist was 74 per cent of a normal, compared with
81 per cent on July ist this year and 77 per cent on August 1, 1924. This year’s production is forecast at
297,184,000 pounds, which is 18 million pounds, or 7 per cent, above the state’s 1924 production, but is 28
million pounds, or 9.5 per cent, below the five year average. Prospects are unusually good in the Coastal
counties, the belt running through the northern Piedmont and mountain counties having suffered most from
the drought. Plants in this area are “ firing” badly, and the color of the tobacco is poor.
SO U TH C A R O L IN A ’S tobacco prospects are excellent, the August ist condition of 78 per cent com
paring with 55 per cent a year ago. The yield is forecast at 65,988,000 pounds, compared with 45,600,000
pounds grown in 1924. The South Carolina markets opened on August 4th, and large sales have been made at
satisfactory prices for the better grades. As is usual at the opening of the season, most of the tobacco mar
keted so far this year has been low grade.
V IR G IN IA ’S tobacco prospects have somewhat improved since August ist, on which date the condition
of the crop was 50 per cent, with an indicated yield of 82,280,000 pounds compared with 136,500,000 pounds
grown in 1924 and a five year average of 143,128,000 pounds. The weather was highly unfavorable in most
of the tobacco belt through June and July, and the plant is small, the leaves are short, and in some cases have
begun to burn. The hot, dry weather damaged the bright tobacco worse than the dark and sun-cured types.
Much land that was intended for tobacco this year was never set out because of the unfavorable weather,
and some of the late plantings made practically no growth.
M A R Y L A N D ’S tobacco condition on August ist was 75 per cent of a normal, with an indicated pro
duction of 18,750,000 pounds, compared with a 1924 yield of 21,420,000 pounds. During July the con
dition improved under more favorable weather, and cultivation still continues.

AGRICULTURAL NOTES
M A R Y L A N D . The corn crop in Maryland was reported to be 86 per cent of a normal on August ist,
with a prospective yield of 24,556,000 bushels, compared with 18,538,000 bushels gathered in 1924. The
acreage planted in corn this year was 8 per cent larger than last year. The wheat crop turned out well,
averaging 2 1 bushels per acre in comparison with 16.1 bushels the average for the past ten years. The
favorable weather during the winter resulted in well-filled heads and plump, heavy kernels. Maryland com
mercial tomato crops are mostly good* and the stands are well mixed between early, medium and late plants.
Early tomatoes are ripening and being picked, but yields have been reduced by the long dry spell. Late to
matoes are blooming and fruiting. The hay yield of the state is expected to be only 485,000 tons this year,
compared with 740,000 tons last year. Pastures and hay fields suffered from the persistent drought and
intense heat of June. During the: latter part of July rains benefited pastures, however. Prospects for apples
are poor this year, and the peach crop is only about a third of last year’s.
V IR G IN IA . Crop conditions throughout Virginia, with the exception of the Southwestern District, im
proved wonderfully between August ist and August 15th, according to the Virginia Crop Reporting Service.
The outlook was exceedingly unpromising previous to the rains of early August, but during the past two
weeks considerable progress has been made toward preparing land for fall crops, and seeding of the late
potatoes, crimson clover, turnips, etc., has made excellent progress. Corn prospects are much better than on
August ist, when a forecast of 39,462,000 bushels was made. The rain came too late to help the early corn,
and in some sections it was practically a complete failure, but the late crop is now in splendid condition. The
corn crop in Southwest Virginia is still in dire need of rain. Virginia’s wheat yield turned out better than had
been expected, a production of 10,934,000 bushels comparing favorably with 9,628,000 bushels in 1924. The
quality of the wheat is also unusually good, and with higher prices this year the crop is estimated to be about
$5,500,000 more valuable than the 1924 crop. The early potato crop was shorter than last year, 16,500 cars
shipped comparing with 23,100 cars in 1924, but the price this year averaged more than twice as high, and
the 1925 crop therefore brought the growers more money. The late crop has been seriously damaged by dry
weather, and a below the average yield is expected. The sweet potato crop was greatly benefited by rains
early in August, and is now making satisfactory progress. The outlook for peanuts is exceedingly promis
ing. The apple crop of Virginia is estimated at 7,624,000 bushels, compared with 15,184,000 bushels last
year. The peach crop is forecast at 392,000 bushels, compared with 1,218,000 bushels last year.

N O R TH C A R O LIN A . The corn condition in North Carolina was 72, per cent of a normal on August
1st, indicating a production of 41,878,771 bushels, a reduction of 6 per cent under the 1924 yield. The fore
cast of 9,801,000 bushels of sweet potatoes made on August 1st, was about 5 per cent more than the prot duction last year. Shipments of sweet potatoes have begun, and prices are reported very satisfactory. Hay
crops were cut by dry weather, and many pastures have been practically useless for weeks, but rains after
August 1st improved the hay and pasture prospects considerably. Apple yields will vary from very short to
fair. Commercial orchardists state that the crop is hardly half of last year's production. The quality of the
fruit is generally good.
SO U TH C A R O LIN A . Corn prospects in the northwestern section of South Carolina are the poorest in
years, but in other sections the crop varies from fair to good. The average condition on August 1st was 59
per cent, indicating a yield of 22,542,000 bushels compared with 21,862,000 bushels last year. The sweet
potato condition of 67 per cent forecasts a crop of 6,964,000 bushels, compared with 6,230,000 bushels in 1924.
A production of 1,350,000 gallons of sorghum syrup is indicated, compared with 1,302,000 gallons last year.
Peanut prospects are less favorable than a year ago, and the acreage is 30 per cent less than in 1924.

BUILDING OPERATIONS FOR THE MONTHS OF JULY, 1925 AND 1924.
Premits Issued

CITIES

New

Repairs

1925 1924

1 Baltimore, Md...... 475
29
2 Cumberland, Md...
5
3 Frederick, Md......
31
4 Hagerstown, Md...
5 Danville Va.......... *10
21
6 Lynchburg, Va....
124
7 Norfolk, Va.
1
8 Petersburg, Va.....
143
9 Richmond, Va......
78
10 Roanoke, Va.......
21
11 Bluefield, W. Va...
35
12 Charleston,jW. Va.
10
13 Clarksburg, W. Va
14 Huntington,W. Va. 142
18
15 Parkersburg,W.V a
57
16 Asheville, N. C .....
63
17 Charlotte, N. C__
35
18 Durham, N. C. ...
62
19 Greensboro, N. C.
75
20 High Point, N. C...
50
21 Raleigh, N. C........
12
22 Salisbury, N. C. ...
11
23 Wilmington, N. C.
68
24 Winston-Salem, N. C.
19
25 Charleston, S. C ...
16
26 Columbia, S. C.....
14
27 Greenville, S. C....
Spartanburg,
S.
C.
33
28
Washington,
D.
C.
413
29
Totals.......... 2,061

Alfprntinns

448
36
2
35
19
120
15
141
79
20
50
35
115
28
37
52
14
66
46
86
22
21
61
3
21
10
48
300

1925

1924

1925

1924

1925

845 1,459 $ 2,802,400 $ 3,385,920 $ 845,400 $
10
70,015
65,850
12,775
13
4
2
164,600
7,350
10,500
66,200
52,900
17
13
347,705
*14
*76,342
*17,485
14
9,310
30
39,877
59,065
32,672
60
40
511,960
591,888
9
895
35,121
6,951
5
89
603,702
100,722
84
665,677
278,136
14,600
37
38
144,160
14
74,025
95,850
2,625
3
93,774
170,344
21,695
12
30
3,200
2,285
93,325
8
18
, 8,500
9
26
352,465
431,635
“99,425
:33,800
2,950
' 7
7
33,069
62
82
333,630
458,723
23,460
12
375,090
269,585
7
252,506
67,000
22,550
17
,2
24
19
314,111
225,315
21,481
12
14
254,810
133,350
8,350
2
3,250
5
191,793
685,097
7,300
1
141,200
103,125
13
48,900
130,300
6,900
10
7
247,315
50,705
61
87
152,865
2,900
26,837
56
57,943
13
15,365
386,490
77,580
51
85
31,610
201,600
71,775
23
13
27
121,821
247,795
18,015
33
6,123,895
270,300
187
797’ 5,545,860

1,9301 1,682 2,943i $13,862,435 $14,698,303

$1,663,077

1924

Increase or Per Cent
Decrease
of
of
Increase 0
Total.
or
2
Valuation Decrease

770,640 $— 508,760 — 12.2#
18,865 —
1,925 — 2.3
1,700
166,050 1,834.8
334,405 505.1
86,413
175,794
2,944
439,472
17,560
48,675
75,510
6,470
44,625
12,200
17,470
18,175
1,800
26,675
6,365
1,200
50
42,300
58,503
9,420
36,661
23,375
62,870
421,515

—
—
—
—
—
—
—
—
—
—

—
—

57,915 — 45.9
223,050 — 29.1
30,219 — 79.4
276,775 — 26.5
136,936 — 46.3
67,875 — 47.0
130,385 — 53.0
94,310 — 94.5
115,295 — 24.2
6,375
6.6
109,494 — 23.0
110,790
38.5
206,256 299.8
83,602
33.2
123,445
88.4
491,254 — 71.6
45,325
43.9
116,800 — 67.7
86,652
41.0
72,460 588.1
287,614 251.8
138,060
145.1
170,829 — 55.0
729,250 — 11.1

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

$2,427,247 $—1,600,0381 — 9.3%

* Danville figures not included in totals
—Denotes decrease
NOTE- The figures in the above table reflect the amount of work provided for in the corporation limits of the several
cities, but take no account of suburban developments.

Twenty-eight Fifth District cities issued 2,061 building permits for new construction in July 1925, with
estimated valuation of $13,862,435, compared with 1,930 permits !and ^valuation figures amounting to $14,698,303 issued in July 1924. Total valuation of both new work and alterations or repairs totaled $15,525,512
in July 1925 and $17,125,550 in July 1924, a decline of $1,600,038, or 9.3 per .cent, during the 1925 month.
Fifteen of the twenty-eight cities reported a larger number of-permits for new work this year, but only twelve
cities reported higher valuation figures* A very large proportion of the permits issued last month were for
residence work. There are signs that most of the shortage of homes and apartments that developed during
and immediately after the war has been made up, Rents are no. longer advancing year by year, but instead
are showing some declining tendency in many localities. In Richmond, apartments, flats and houses are avail
able in all parts of the city. There is still an active demand fmmnbuyera for;good individual small houses,
however.

FIGURES ON RETAIL TRADE
As Indicated By Reports from Twenty-eight Representative Department Stores for the
Month of July 1925
Percentage increase in July 1925 sales over sales in July 1924:
Baltimore
Richmond
Washington
Other Cities
District
7.4
— 1.5
11.8
5.4
7.5
Percentage increase in sales from January 1st through July over sales during the same seven months in 1924:
1.9
9.7
6.0
1.2
3.8
Percentage increase in July 1925 sales over average July sales during the years 1920-1924, inclusive:
3.1
14.3
20.7
0.5
9.0
Percentage increase in stock on July 31, 1925, over stock on July 31, 1924:
7.0
7.2
— 8.2
— 6.7
0.6
Percentage increase in stock on July 31, 1925, over stock on June 30, 1925:
— 0.9
— 4.1
— 9.3
— 5.6
— 4.2
Percentage of sales during July 1925 to average stock carried during that month:
20.4
21.2
23.9
18.7
21.2
Percentage of sales from January 1st through July 31st, to average stock carried during the seven months:
179.1
179.1
184.7
141.3
175.6
Percentage of outstanding orders on July 31st to total purchases of merchandise in 1924:
5.9
8.8
11.6
6.8
8.3
— Denotes decreased percentage; other figures show gains.

Twenty-eight large department stores in the Fifth District sold 7.5 per cent more goods in Ju ly than in
July 1924, and 9.0 per cent more than the average during July 1920-1924, inclusive. Cumulative sales from
January 1st through July were 3.8 per cent larger than sales during the corresponding seven months last
year. Stocks on the shelves at the end of July were six-tenths of 1 per cent greater than on July 31st last year,
but were 4.2 per cent less than on June 30, 1925. Total sales during Ju ly were 21.2 per cent of stocks
carried that month, and cumulative sales since January 1st were 175.6 per cent of average stocks carried dur
ing each of the seven months. Outstanding orders for merchandise at the end of Ju ly amounted to 8.3 per
cent of total 1924 purchases.

_____________________________ WHOLESALE TRADE, JULY, 1925_____________________________
Percentage increase (or decrease) in sales in July 1925, compared with sales in June 1925:
42 Groceries
15 Dry Goods
11 Shoes
17 Hardware
6 Furniture
11 Drugs
2.1
3.5
— 9.9
— 0.8
34.1
5.7
Percentage increase (or decrease) in sales in July 1925, compared with sales in July 1924:
10.7
— 3.8
10.4
— 7.0
57.2
6.0
Percentage increase (or decrease) in sales since January 1, 1925, compared with sales during the corresponding
seven months of 1924:
4.0
— 7.8
— 3.0
— 7.1
18.8
2.4
Percentage increase (or decrease) in stock on July 31, 1925 compared with June 30, 1925:
3.6(10)
5.1(8)
— 2.5(5)
— 1.8(5)
— 7.8(2)
Percentage increase (or decrease) in stocks on July 31, 1925, compared with July 31, 1924:
4.0(9)
— 14.5(8)
— 21.4(5)
— 14.0(5)
— 2.4(2)
— Denotes decreased percentage.
NOTE: The number of firms reporting stock figures for the dates compared is shown immediately after the
percentage figure.

Wholesale trade in July was in larger volume than in June in groceries, dry goods, furniture and drugs,
but sales of shoes and hardware declined. In comparison with July 1924 sales, those of July 1925 showed
gains in groceries, shoes, furniture and drugs, while declines were reported in dry goods and hardware. Total
sales during the first seven months of this year exceeded sales during the corresponding period last year in
groceries, furniture and drugs, but sales in dry goods, shoes and hardware were lower than in 1924.
Stocks of goods changed little during July, increasing in groceries and dry goods and decreasing in shoes,
hardware and furniture. Stocks at the end of July were lower than a year ago in every line reported upon
except groceries, in which there was a small increase.
Collections were classified for July as follows:

Good

Fair

1925— 1924
July Totals ......................... ...... 10
14
_________________________________________________________________

Slow

1925— 1924
59
57

(Compiled August 21, 1925)
7

Poor

1925— 1924
1925 — 1924
20
2 1_______ 4
1

Total
1925— 1924
93
93

BUSINESS CONDITIONS IN THE UNITED STATES.
(Compiled by the Federal Reserve Board)

Production in basic industries turned upward in July, after a
continuous decline since January. Wholesale prices advanced fu r
ther and the distribution o f commodities continued in large volume.
PRODUCTION. The Federal Reserve Board’s index of pro
duction in basic industries, which makes allowance fo r usual sea
sonal variation, advanced by about 2 per cent in July to a point
nearly 20 per cent above the low level o f a year ago. Increased
output was shown fo r lumber, coal and cement, cotton consumption
declined less than usual at this season, while the output o f the iron
and steel industry and the activity in the w ool industry continued
to decrease. In nearly all the industries activity was greater than
in July o f last year. Am ong industries not represented in the
index the production o f automobiles, rubber tires and silk continued
to be large. The volume o f factory employment and earnings of
industrial workers declined further in July, seasonal increases in
the clothing, shoe and meat packing industries being more than
offset by decreases in the other industries.
Building contracts
awarded in July were in only slightly smaller volume than the
exceptionally large total reached in June and the total fo r the
first seven months o f this year exceeded that fo r any previous cor
responding period. Estimates o f the Department o f Agriculture
indicated a less favorable condition o f all crops combined on
August 1st than a month earlier. Expected yields o f corn, wheat,
rye, tobacco and hay were somewhat smaller than in July, while
the indicated production of oats, barley and white potatoes was
larger. According to present indications the yields o f all principal
crops, except corn and barley, will be smaller than last year. The
mid-August cotton crop estimate was 13,990,000 bales as compared
with a forecast o f 13,566,000 bales on August 1st.

J
v

PRODUCITION IN
BASIC IN!DUSTRIES

1
Index of 22 basic commodities corrected for seasonal variation <1919-100)
Latest figure-July 112.

TRADE. Freight car loadings during July were larger than
in June and exceeded those o f any previous July, and weekly figures
fo r August indicated a continued large volume o f loadings. Sales
at department stores showed less than the usual seasonal decline
in July and were 3 per cent larger than a year ago, and mail order
sales were considerably above those o f July, 1924. Wholesale trade
continued at the June level and was 6 per cent above the cor
responding period a year ago.

Index of U. S. Bureau of Labor Statistics (1913-100, base adopted by Bureau)
Latest figure-July 159.9.

1 ~

-/Y i V \r 7

PRICES. Wholesale prices advanced further by nearly 2 per
cent in July, according to the index o f the Bureau o f Labor Statis
tics. Prices of farm products and o f miscellaneous commodities
rose over 4 per cent, reflecting chiefly increases in live stock and
rubber, while in the other commodity groups price changes were
relatively small. The general level o f prices in July was 9 per cent
higher than a year ago, the rise being chiefly in agricultural com
modities. In August raw sugar, potatoes, silk, metals and fuel
advanced, while grains, leather, hogs and rubber declined.

DEPARTMEN1' STORE SA1.ES
— m' WITH SCASCINAL ADJUSTMENT
—
WITHOUT A DJUSTMEMT

Index of sale's o f 333 stores in 117 cities (1919-100). Latest'figures, July 128
adjusted, 96 unadjusted

—
I

...............

FEDERAL RESERVE
BANK CREDIT

I Earning Assets

/ V

rV /
—

—

**—

U.S. Sec1'
and
Acceptances

"A *

0
1922

1923

192**-

1925

Weekly figures foi 12 Federal Reserve Banks. Latest figures-August 19th.

BANK CREDIT. Demand fo r commercial credit at member
banks in leading cities increased in August and the volume o f
commercial loans on August 12th was larger than at any time since
the middle o f May, but still considerably below the level at the
beginning o f the year. Loans on securities increased between the
middle o f July and the middle o f August, while the banks’ invest
ments showed little change fo r the period. Discounts for member
banks increased at all the Reserve banks in recent weeks and the
total on August 19th was the largest in more than a year and a half.
The Reserve bank holdings of securities and bills bought in the open
market continued to decline, but total earning assets in the middle
o f August were near the high point fo r the year. During the latter
part o f July and the first half o f August conditions in the money
market were somewhat firmer. The prevailing rate on prime com
mercial paper, which had remained at 3% to 4 per cent since early
in May, advanced in August to 4 % per cent.
8

Full text of Economic Quarterly (Federal Reserve Bank of Richmond) : August 1925

FRASER