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MONTHLY

REVIEW

BUSINESS AND AGRICULTURAL CONDITIONS

W ILLIAM W. HOXTON C H A IR M A N AND FE DE RA L RESERVE AGENT
RICH M OND, V IR G IN IA

DISTRICT SUMMARY. The volume of
business transacted in the Fifth reserve district
in November was up to seasonal average, and
in spite of the low cotton price prevailing this
year most observers are moderately optimistic,
on prospects for the first half of 1927. A t the
Federal Reserve Bank of Richmond rediscounts
held on December 15th were approximately 45
per cent below those of a year ago, and reports
from 68 regularly reporting member banks yhow
a lower total of outstanding loans to customers
this year. Bank debits figures during the four
weeks ended December 8, 1926, were slightly
below the figures for the corresponding period
in 1925, but the decline was probably accounted
for by a lower price level this year and the oc­
currence of one more holiday than in 1925. S av­
ings deposit figures are above those of Novem­
ber a year ago, and there was a smaller decline
in savings during November than usually occurs
in that month. Business failures in the Fifth
district were more numerous than in November
1925, but fell below those of October this year.
Labor is seasonally employed, with sufficient
work in prospect to hold out promise of steady
employment through the winter. Building con­
struction seems to be declining gradually from
the record figures of 1925, but is still above the
level of any other year. Coal production in No­
vember reached a record figure, and continued
unusually large in December. Bright tobacco
prices were high this season, and yields were
large enough to make the 1926 crop very profit­
able. Retail trade, as reflected in department
store sales, was well above the level of Novem­
ber 1925, and was nearly 4 per cent above that
of October, whereas November sales usually ex­
ceed those of October by less than 1 per cent.
Wholesale trade reported upon in November was
in larger volume than in November 1925 in all
lines except groceries, although seasonally below
the level of October.

RESERVE BANK OPERATIONS.
Between November 15th and December 15th,
both this year, the volume of rediscounts for
member banks held by the Federal Reserve Bank
of Richmond dropped from $37,160,000 to $27,-




D E C E M B E R 31, 1926
643.000, most of the decline occurring in the dis­
counts for banks in the larger cities. During the
same period the Reserve bank’s total bill hold­
ings declined from $52,190,000 to $39,895,000. On
the other hand, member banks built up their re­
serve deposits from $68,846,000 on November
15th to $69,940,000 on December 15th, and sea­
sonal demands for currency in connection with
holiday buying raised the volume of Federal R e ­
serve notes in actual circulation from $82,247,000
to $85,704,000 during the month. As a result of
the several changes mentioned, the cash reserves
of the Federal R eserve Bank of Richmond rose
from $108,791,000 on November 15th to $120,879.000 on December 15th, and the ratio of cash
reserves to note and deposit liabilities combined
rose from 68.86 per cent to 76.78 per cent during
the same period.
Reserve bank credit was outstanding in the
Fifth District in smaller volume at the middle of
December this year than at the corresponding
time a year ago. On December 15, 1926, redis­
counts for member banks held by the Federal
Reserve Bank of Richmond totaled $27,643,000,
compared with $39,974,000 held on December 15,
1925. Liquidation this season has been con­
siderably larger than in 1925, when a large vol­
ume of rediscounts were carried over to the new
year. The circulation of Federal Reserve notes
stood at $85,704,000 at the middle of December
this year and at $92,484,000 on the corresponding
date in 1925. Total bill holdings of the Federal
Reserve Bank of Richmond, which totaled $39,895.000 on December 15, 1926, amounted to $43',275.000 on December 15, 1925. Member bank
reserve deposits at the Richmond Reserve bank
totaled $69,940,000 this year against $66,813,000
last year. The cash reserves of the Richmond
bank on December 15th this year totaled $120,879.000, compared with $115,278,000 on Decem­
ber 15, 1925, and the ratio of cash reserves to
note and deposit liabilities combined was 76.78
per cent on December 15th this year and 72.10
per cent on December 15th last year. The de­
crease in the demand for Reserve bank credit
this year is chiefly in the banks of the larger
cities, but banks in agricultural sections have
liquidated their indebtedness more rapidly than
might have been expected under the existing low
prices for cotton and dark tobacco.

CONDITION OF SIXTY-EIGHT REPORTING MEMBER BANKS IN SELECTED CITIES
ITEM S
1.
2.
3.
4.
5.
6.
7.

T otal L oans and D iscounts (including
all red iscou n ts...........................................
T otal Investm en ts in B onds and S ecuri­
ties ...............................................................
R eserve B alance with F ed eral Reserve'
Bank .............................................................
Cash in V a u lts................................................
Demand D ep osits...........................................
Time D ep osits...................................................
B orrowed from F ed eral R eserve B an k -

Dee. 8, 1926

N ov. 10, 1926

Dec. 9, 1925

$5 1 6 ,2 5 2 ,0 0 0

$ 5 2 0 ,3 4 4 ,0 0 0

$ 5 2 9 ,4 7 6 ,0 0 0

1 3 1 .6 2 4 .0 0 0

1 3 5 .1 8 5 .0 0 0

1 2 9 .5 7 9 .0 0 0

4 0 .5 7 3 .0 0 0
16.2 8 4 .0 0 0
38 5 .1 5 8 .0 0 0
20 6 .2 4 4 .0 0 0
8,1 1 6 ,0 0 0

42 .6 1 2 .0 0 0
14 .6 8 8 .0 0 0
3 8 6 .8 5 5 .0 0 0
2 0 8 .9 7 2 .0 0 0
16 .5 7 0 .0 0 0

4 1 .6 9 7 .0 0 0
16.0 64.000
3 9 0 .9 4 8 .0 0 0
20 2 .4 8 0 .0 0 0
18.9 76.000

The accompanying table shows totals for the principal items of condition reported by sixty-eight
identical member banks of the Fifth Federal reserve district on three dates, December 8, 1926, No­
vember 10, 1926, and December 9, 1925. These data afford an opportunity for comparing the latest
available figures with those of a month and a year earlier.
A comparison of the figures for December 8th with those of November 10th, both this year, in­
dicates that the fall liquidation of indebtedness has been unusually good, payment of agricultural
loans exceeding the demand for commercial loans incident to the receipt of holiday merchandise.
Loans and discounts outstanding on December 8th were $4,092,000 below the volume of loans re­
ported on November 10th, and during the same period the sixty-eight banks reduced their rediscounts
at the Reserve bank by $8,454,000, or more than 50 per cent of the total volume of rediscounts a
month ago. Between November 10th and December 8th, the reporting banks reduced their invest­
ments in bonds and securities by $3,561,000, and their reserve deposits at the Reserve bank dropped
$2,039,000. Seasonal demands for currency caused an increase of $1,596,000 in cash in vaults, but de­
mand deposits declined $1,697,000 and time deposits declined $2,728,000 during the month under re­
view. A decline in time deposits at this season is a normal development.
On December 8th this year outstanding loans to customers of the sixty-eight reporting banks
totaled $13,224,000 less than the volume of loans on December 9, 1925. Investments in bonds and
securities rose by $2,045,000 during the year. A ggregate reserve balances of the reporting banks
at the Reserve bank changed little between the two dates, declining approximately $1,000,000, and the
amount of cash in vaults on December 8th this year was practically the same as on December 9th
last year. Demand deposits, in keeping with the decline in loans to customers, dropped $5,790,000
during the year, but time deposits rose by $3,764,000. The lessened demand for credit at the mem­
ber banks this year is indicated by their borrowing at the Reserve bank, which declined from $18,976,000 on December 9, 1925, to $8,116,000 on December 8, 1926, a decrease of $10,860,000 or ap­
proxim ately 57 per cent. This lessened demand for Federal Reserve credit seems due to a healthier
liquidation on the part of the customers of member banks rather than to a recession of current
business.

BUSINESS FAILURES —Dun's Review for December 4th, in commenting upon the business
failure figures of the past month, says, “ In view of the fact that the number of failures in the
United States invariably rises toward the close of a year, the increase reported for November is not
surprising. L ast month's total of 1,830 defaults is 3.8 per cent above the total of 1,763 reported for
October, and is 9.4 per cent in excess of the 1,672 insolvencies for November 1925. Y et in that year
the increase in November failures, compared with those for October, was 5.8 per cent, or more than
is shown in the present instance. The record of liabilities for last month is favorable, decreases being
shown from the amounts for both October this year and November last year. The indebtedness for
last month totaled $32,693,993, while for October it was $33,230,720, and for November 1925 was $35,922,421. With the exception of the year 1924, last month’s liabilities are the smallest reported for
November since 1920.”
Business failures in the Fifth District during November 1926 numbered 120, with liabilities of
$3,067,845, compared with 127 failures and liabilities totaling $3,394,205 in October, the District
therefore making a better comparative record last month than the national one. In comparison
with 91 failures and liabilities of $1,631,370 in November 1925, however, the November record this
year is not so favorable as the average for the country.



2

DEBITS TO INDIVIDUAL ACCOUNTS
TOTAL D E B IT S D URING TH E FO U R W EEK S E N D E D
C ITIES
A sh eville, N. C........... .
B altim ore, Md............ .
C harleston, S. C..........
Charleston, W. V a. .,
Charlotte, N. C...........
Columbia, S. C...........
C um berland, Md.........
D anville, V a .................
Durham, N. C...............
Greensboro, N. C. ....
G reenville, S. C......... .
H agerstow n, Md..........
H u ntington , W. V a.
Lynchburg, V a ............
N ew port N ew s, V a .—
N orfolk, V a................. .
R aleigh, N. C.................
Richm ond, V a ...............
R oanoke, V a................
Spartanburg, S. C. ....
W ashington, D. C. ....
W ilm ington, N. C. ....
W inston-Salem , N . C
T otals.............

Dec. 8, 1926
$

28 ,6 0 2 ,0 0 0
3 8 1 ,3 9 5 ,0 0 0
2 5 ,3 1 9 ,0 0 0
3 6 ,9 7 3 ,0 0 0
47,4 1 7 ,0 0 0
18,081,000
8,2 1 2 ,0 0 0
16,594,000
3 6 ,3 0 8 ,0 0 0
2 4 ,3 2 8 ,0 0 0
2 1 ,1 4 3 ,0 0 0
10.375.000
2 6 .8 6 1 .0 0 0
1 8 ,827,000
10,516,000
8 2 ,6 1 7 ,0 0 0
2 1 ,2 6 0 ,0 0 0
135,9 0 5 ,0 0 0
2 9 ,4 1 8 ,0 0 0
12 ,983,000
23 2 ,3 6 5 ,0 0 0
19,369,000
3 7 ,3 5 6 ,0 0 0

$ 1 ,2 8 2 ,2 2 4 ,0 0 0

N ov. 10, 1926
$

3 1 ,3 5 3 ,0 0 0
3 9 0 ,9 0 5 ,0 0 0
3 9 ,0 8 9 ,0 0 0
3 5 ,1 4 7 ,0 0 0
49 ,1 4 8 ,0 0 0
18,676,000
8 ,633,000
15 ,2 58,000
3 3 ,7 8 5 ,0 0 0
2 4 ,5 3 9 ,0 0 0
2 1 ,3 5 7 ,0 0 0
1 0 ,693,000
24 ,3 5 4 ,0 0 0
18 ,5 5 1 ,0 0 0
10,7 1 2 ,0 0 0
75 ,6 3 9 ,0 0 0
2 3 ,3 1 7 ,0 0 0
13 6 ,1 3 0 ,0 0 0
2 9 ,5 1 1 ,0 0 0
13,6 0 3 ,0 0 0
23 0 ,6 1 9 ,0 0 0
2 1 ,2 8 5 ,0 0 0
4 0 ,7 2 4 ,0 0 0

$ 1 ,3 0 3 ,0 2 8 ,0 0 0

D ec. 9, 1925
$

2 7 ,8 6 0 ,0 0 0
446,0 4 3 ,0 0 0
2 4 ,8 7 4 ,0 0 0
3 6 ,6 1 1 ,0 0 0
4 7 ,0 4 5 ,0 0 0
16,620,000
9,700,000
12,410,000
31,9 2 9 ,0 0 0
2 0 ,522,000
24 ,5 2 5 ,0 0 0
10,481,000
27 ,1 91,000
20 ,060,000
11,414,000
86,812,000
26,0 8 3 ,0 0 0
166,050,000
26 ,155,000
17,156,000
22 8 ,2 5 5 ,0 0 0
2 0 ,3 9 9 ,0 0 0
3 5,4 4 4 ,0 0 0

$1 ,3 7 3 ,6 3 9 ,0 0 0

Debits to individual, firm and corporation accounts in clearing house member banks in leading
cities furnish a good barometer of the volume of business transacted in the several cities during the
period or periods of time covered by the figures. According to this measure, general business in
the Fifth district during the four weeks ended December 8, 1926, was in somewhat smaller volume
than in either the preceding four weeks this year or the corresponding four weeks last year, but the
lower figures during the most recent period were due in part to the occurrence of two holidays in com­
parison with one holiday in each of the earlier periods.
During the four weeks ended December 8, 1926, twenty-three cities of the Fifth Reserve district
reported aggregate debits totaling $1,282,224,000, a slightly smaller figure than $1,303,028,000 reported
for the preceding four weeks, ended November 10, 1926, but on a daily average basis, counting busi­
ness days only, debits each day totaled $58,282,909 during the period ended December 8th and $56,653,391 during the like period ended November 10th. The decline in debits during the later four
weeks was general throughout the Fifth district, seventeen of the twenty-three cities reporting lower
totals than for the preceding like period.
In comparison with the four weeks ended December 9, 1925, when debits amounted to $1,373,639,000, the total of $1,282,224,000 reported for the corresponding period this year shows a decline of
6.7 per cent, but the four weeks ended December 8, 1926, contained two holidays while the cor­
responding period last year contained only one. On a daily basis, debits during the 1926 period
under review show an approximate decline of 2.4 per cent. Ten cities reported increased and thirteen
decreased figures for the 1926 period.

SAVINGS DEPOSITS —Contrary to custom, deposits in fourteen mutual savings banks in Balti­
more rose during November, increasing from $157,836,179 on October 3 1st to $158,178,254 on Novem­
ber 30th. In 1920 a slight increase in deposits was reported in November, but in each intervening
year November witnessed a decline in savings bank figures. A t the end of November last year the
same fourteen banks had deposits aggregating $150,891,556. Time deposits in sixty-eight regularly
reporting member banks followed the seasonal trend in November and early December, declining
from a total of $208,972,000 on November 10th to $206,244,000 on December 8th, but on the latter
date stood above the $202,480,000 reported on December 9, 1925.
LABOR—No developments of marked importance were noticed in labor circles during the past
month. Unemployment increased seasonally with the coming of winter weather and the winding up
of 1926 building programs, but the slackening was probably not more extensive than is normal at
this season. Prospects are good for steady employment for practically all workmen during the next
few months. Construction work continues in large volume, and a considerable road building program
is outlined for 1927 in the Fifth District. The return of British miners to the mines will undoubtedly
lessen the export demand for American coal, thereby reducing operations in W est Virginia and laying
off some miners, but a considerable time usually elapses after a long strike before reserves of coal



a

are rebuilt and demand shows any appreciable falling off. Fifth District tobacco factories are
operating full time, and some of them are expanding, thereby increasing the number of workers
needed. In the textile industry most mills are operating nearly full time, and prospects for a con­
tinuation of this scale of operations appear good. Local unemployment problems may arise here
and there during the next few months, but at present there are no signs that appear to indicate any
general surplus of workers, and mobile labor will probably be able to keep steadily at work.

BUILDING OPERATIONS FOR THE MONTHS OF NOVEMBER 1926 A N D 1925.
Permits Issued

0*

CITIES

z

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

New
1926

1925

1926

565
20
6
16
16
16
75
3
106
72
13
48
17
85
27
51
44
30
50
38
36
13
13
89
11
22
5
24
418

893
8
0
3
5
30
60
6
87
22
0
12
21
4
0
43
16
15
32
5
5
6
3
45
28
45
22
15
352

Totals........... 1,749

1,929

1,783

Winston-Salem, N. C.

Charleston, S. C ...
Columbia, S. C......
Greenville, S. C....
Spartanburg, S. C.
Washington, D. C.

Alterations

Repairs

618
23
4
27
17
17
68
1
110
60
8
31
21
35
20
46
34
38
49
43
41
14
22
84
16
9
8
17
268

Baltimore, Md......
Cumberland, Md..
Frederick, Md......
Hagerstown, Md...
Danville V a..........
Lynchburg, Va.....
Norfolk, Va....... .
Petersburg, Va.....
Richmond, Va.
Roanoke, Va.
Bluefield, W. Va...
Charleston, W. Va.
Clarksburg, W. Va
Huntington, W.Va.
Parkersburg, W.Va
Asheville, N. C .....
Charlotte, N. C.....
Durham, N. C.
Greensboro, N. C.
High Point, N. C..
Raleigh, N. C........
Salisbury, N. C.....
Wilmington, N. C.

New Construction
1925

1926

1925

832 $ 4,180,800 $ 5,176,320
5
7,120
64,285
3
21,550
11,545
8
42,160
24,230
11
98,590
45,231
17
17,601
10,715
42
120,375
94,499
3
240
8,700
60
481,300
353,554
19
200,100
270,245
1
23,875
214,400
12
49,515
85,838
8
78,315
16,150
4
41,400
391,860
4
32,800
47,400
37
513,425
570,209
237,600
7
153,687
3
258,202
82,475
28
614,840
1,172,745
7
200,800
198,725
8
138,855
47,350
6
49,295
34,700
49,800
3
35,450
52
190,720
536,725
29
14,942
25,230
47
26,395
146,657
16
16,700
72,525
57
68,740
88,610
456
3,067,650
4,514,980
1,785 $10,843,705

$14,495,040

1926
$ 505,566 $
52,290
0
475
16,562
18,526
19,080
2,790
55,546
15,640
0
11,128
11,375
6,100
0
32,715
11,600
13,380
9,892
1,600
2,650
2,580
3,800
38,950
7,860
46,223
7,245
2,250
317,175
$1,212,998

1925

Increase or Per Cent
Decrease
of
of
Increase
Total
or
Z
Valuation Decrease

403,200 - $ 893,154 — 16.0%
—
2,169
7,044 — 10.6
2,175
7,830
57.1
—
26,580
8,175 — 16.1
5,571
64,350
126.7
7,917
17,495
93.9
25,280
19,676
16.4
—
2,675
8,345 — 73.4
107,967
75,325
16.3
— 64,920 — 23.1
10,415
— 190,725 — 88.9
200
10,185 — 35,380 — 36.8
3,575
69,965
354.7
— 348,800 — 88.0
4,440
—
2,400
17,000 — 34.1
—
9,722
33,791 — 5.8
3,460
92,053
58.6
10,050
179,057
193.5
— 571,941 — 47.8
23,928
3,525
150
.07
10,900
83,255
142.9
1,290
15,885
44.1
4,000
14,150
35.9
— 353,402 — 60.6
46,347
11,920 — 14,348 — 38.6
— 86,130 — 54.3
12,091
— 52,695 — 68.8
4,115
— 37,663 — 34.7
20,043
658,220
—1,788,375 — 34.6
$1,434,360

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

—$3,872,697 — 24.3%

—Denotes decrease
N O TE- 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-nine Fifth District cities issued 1,749 building permits for new construction in Novem ­
ber this year, compared with 1,924 permits in October 1926 and 1,929 in November 1925. Valuation
figures for new work totaled $10,843,705 in November 1926, $10,718,950 in October 1926, and $14,495,040 in November 1925. For the past three months both the number of permits and the valuation
figures for new construction fell below the figures for similar w ork during the corresponding
months in 1925. November repair and alteration permits totaled 1,783, with estimated valuation of
$1,212,998, compared with 1,785 permits valued at $1,434,360 issued for the same class of w ork in
November last year. Total valuation figures for all classes of work in November 1926 were 24.3 per
cent below the totals of November 1925. Increases of more than 50 per cent in valuation figures in
November were reported by Frederick, Danville, Lynchburg, Clarksburg, Charlotte, Durham and
Raleigh. Richmond reported a small increase in both number of permits and estimated valuation,
but both Baltim ore and Washington reported lower valuation figures.
The F. W. Dodge Corporation reports contract awards during November in the Fifth District
totaling $44,318,401, of which $12,643,971 was for residential construction.

COAL— Bituminous coal production in November continued at a very high level, totaling ap­
proxim ately 59,739,000 net tons, a daily average rate of 2,400,000 tons compared with a daily average
of 2,100,000 tons mined in October. Daily production since March has exceeded production in all re­
cent years except 1923, and since the last week in September the record of all recent years has been
surpassed. Total production of bituminous coal this calendar year to December 4th amounts to 530,232.000 net tons, compared with 478,653,000 tons mined to the same date last year and a high figure of
526.084.000 tons mined during the corresponding 286 working days of 1923. Export figures continue
unusually large, shipments of cargo coal through Hampton Roads alone to December 4th this year



4

totaling 11,164,429 net tons, compared with 3,933,910 tons exported through the same port during
the corresponding period a year ago. W est Virginia continued in second place during November,
having dropped behind Pennsylvania in production during October.

TEXTILES —Conditions in the textile field changed little between November 15th and Decem­
ber 15th, although the comparative steadiness of cotton prices probably improved the prospects for
mills. Fo r months the m anufacturers have been faced by steadily declining cotton prices, which kept
jobbers’ and retailers’ orders at minimum levels, but since the price of raw material appears to have
settled, at least temporarily, the prospects for a larger volume of orders as soon as Jan u ary inven­
tories are taken appear good. Most of the mills in the Fifth District are operating at or near full
time. Cotton consumption in the district in November totaled 249,997 bales, compared with 236,566
bales used in October this year and 218,435 bales consumed in November 1925. L ast month North
Carolina mills used 136,969 bales, South Carolina mills 101,962 bales, and Virginia mills 11,066 bales,
the figures in every case being above those for either October 1926 or November 1925.
COTTON— Spot cotton prices in the Carolinas fluctuated through a narrow range during the
latter half of November and the first half of December. The average price for middling short
staple was 12 cents per pound during the two weeks ended November 27th, but in the week ended
December 4th the average dropped to 11.65 cents and in the latest week for which quotations are
available, ended December n th , the average price further declined to n . 17 cents. Much of the cot­
ton sold brought even lower prices, due to a large amount of cotton that was below middling
grade. In November and early December last year spot cotton brought approxim ately 19 cents per
pound.
In the final report of the year, issued on December 8th, the Department of Agriculture esti­
mated the 1926 cotton yield as 18,618,000 bales, which is m aterially larger than any crop ever raised.
Of the estimated total production, 14,644,966 bales had been ginned prior to December 1st. The
ginning figures were below expectations in trade circles, and are thought to indicate that the final
outturn of the crop may fall somewhat below the estimated yield for the year. Recognizing the
unusually large proportion of the crop remaining to be ginned after December 1st, the Department of
Agriculture states that it has made allowance for the probability of some loss of open cotton from
beating storms and for the tendency of grow ers to leave low grade cotton unpicked because of low
prices, but it further states that unfavorable weather conditions in December and Jan u ary might
increase the quantity of cotton left in the fields beyond the allowance made, thereby reducing the
final ginning figures next March below the estimated production for the year. It seems clear that
the final ginning figures are more dependent that usual upon weather conditions after the first of De­
cember.
Cotton consumption in American mills totaled 583,950 bales in November 1926, compared with
568,532 bales used in October this year and 543,488 bales in November 1925. Total consumption
for the four months of the present season—August 1st to November 30th—amounted to 2,224,239
bales, compared with 2,021,963 bales consumed during the corresponding four months last year.
Stocks of cotton on hand in manufacturing establishments totaled 1,497,844 bales on November 30,
1926, compared with 1,215,873 bales a month earlier and 1,457,456 bales a year ago. Public w are­
houses and compresses held 6,517,565 bales on November 30, 1926, compared with 5,469,809 bales so
held on October 31, 1926, and 5,206,563 bales on November 30, 1925. Exports in November of 1,486,224 bales exceeded 1,369,820 bales sent abroad in October this year and 1,206,786 bales exported in No­
vember last year, and total exports of 4,041,957 bales during the four months of the present season
are above the 3,696,417 bales shipped over seas during the corresponding period in 1925. November
imports totaled 41,441 bales, compared with 30,449 bales brought in in October 1926 and 27,007 bales
in November 1925. Cotton grow ing states consumed 425,490 bales in November, compared with
404,216 bales used in October and 382,438 bales consumed in November 1925. The cotton grow ing
states used 72.9 per cent of November’s consumption this year, compared with 70.4 per cent of the
November 1925 consumption.
Between November 1st and December 1st, the Department of Agriculture lowered its estimate
of production in South Carolina by 130,000 bales, but raised the North Carolina estimate 40,000 bales
and the Virginia estimate 7,000 bales. These changes resulted in a net decline during the month of
83,000 bales in the expected production of the Fifth District. The reduction in South Carolina was
due to the disastrous effect of cold weather on late cotton in the northern and western counties,
where large areas that promised well in late October were so affected by a succession of freezes in
November that cotton in the younger bolls rotted and many other bolls previously considered safe
have only partially opened and contain damaged and discolored cotton. Picking such cotton is dif­
ficult and expensive, and the amount of the crop now in the fields which will be picked and ginned is
very doubtful. In several counties of northwest South Carolina prospects were cut almost in half
by cold weather during November. The final production estimate for the state is 1,030,000 bales.
Ginning in South Carolina to December 1st totaled 841,597 bales, or 81.7 per cent of the year’s esti­
mated yield in comparison with 96.1 per cent of the 1925 crop ginned to the same date last year and
a five-year average of 93.6 per cent. North Carolina’s estimated yield of 1,250,000 bales is the



5

largest in the state’s history, and the per acre yield is also the largest ever gathered in that state.
Previous to December ist 1,000,361 bales were ginned, approximately 80 per cent of the year’s crop.
Much cotton remained in the fields in December, compared with nearly clean fields a year ago, and
with picking averaging more than $ 1 a hundred pounds for seed cotton or over 2 cents a pound for
lint, it is thought possible that a considerable amount of late and low grade cotton will not be gath­
ered. V irginia’s cotton crop turned out better than was expected, the final estimate being 55,000
bales. The late fall permitted much cotton to be picked which earlier in the season was not expected
to mature, but picking was delayed by frequent rains, and only 37,446 bales, or 68 per cent of this
y e a r’s crop, were ginned prior to December, in comparison with 85 per cent of the 1925 crop ginned
before that month.
I

TOBACCO—North Carolina tobacco m arkets sold 104,032,285 pounds of producers’ tobacco in
November at an average of $27.66 per hundred pounds. The number of pounds sold was 20 per cent
above 86,139,078 pounds sold in November last year, but this year’s price was only about 5 per cent
above the average of $26.17 per hundred paid during the same month last year. The increase in
pounds this year is due partly to increased production and partly to the suspension of Cooperative
Association receipts of members’ tobacco. W ilson led in November 1926 sales with 18 ,121,412 pounds,
W inston-Salem ranking second with 15,180,277 pounds and Greenville third with 12,315 ,18 1 pounds.
Mebane and Fuquay Springs showed the highest average prices during November with $32.10 and
$31.28 per hundred pounds, respectively. Sales in the Old Belt markets were mostly average to good
grades, and average prices were nearly 7 cents per pound higher than in November 1925, but in the
New Belt the tobacco sold was poor to medium, and averaged only a slight fraction of a cent a pound
above the average price in the same month last year. Total season sales of 294,496,257 pounds prior
to December amount to about 77 per cent of the Government estimate of the 1926 crop.
Virginia auction markets sold 36,092,499 pounds of producers’ tobacco for $8,425,100 in Novem ­
ber. Flue-Cured, or Bright, tobacco sold totaled 30,124,813 pounds, and brought an average price of
$26.35 Per hundred pounds, compared with 20,078,595 pounds sold for an average of $17.24 per hun­
dred in November last year. Fire-Cured, or Dark, tobacco sold in November totaled 4,773,506 pounds,
at an average of $8.07 per hundred, compared with 5,659,049 pounds sold for $18.69 Per hundred in
November 1925. Sun-Cured tobacco sold on the Richmond m arket totaled 1,194,180 pounds in No­
vember and averaged $8.51 per hundred pounds, compared with 339,425 pounds at $15.43 per hundred
sold in November a year ago. The feature of the tobacco season this year in Virginia is the opposite
price trend for Flue-Cured and Fire-Cured types. Flue-Cured tobacco is bringing approxim ately 50
per cent more than a year ago, while Fire-Cured tobacco is selling for less than half the 1925 price.
Fortunately most of Virginia’s tobacco is of the Flue-Cured type. In aggregate sales in November,
Danville with 13,791,652 pounds is far ahead of South Boston with 5,617,418 pounds.
Drake’s
Branch led in price with $27.97 per hundred, but sold only 514,677 pounds, while South Boston sold
over 5,600,000 pounds at an average of $27.31 per hundred. Lynchburg led in Fire-Cured sales with
1,599,401 pounds, but again D rake’s Branch led in price, selling 428,429 pounds of this type of to­
bacco for $9.55 per hundred pounds.
AGRICULTURAL NOTES—During the past month farm ers were busy with the usual round of
operations involved in winding up the season’s activities. H arvesting of most crops was finished,
cotton picking continued in the Carolinas and Virginia, hogs were butchered, wood was hauled, and
tobacco sold. Official figures on the yea r’s yields of the various crops are not yet available, but it
is evident that the results of agricultural work in the district have been very spotted this year. In
the Bright tobacco sections good crops were sold for high prices, but in the Dark tobacco counties of
Virginia the yield was not notably large and prices were disastrously low. The cotton farm ers of
the district raised a larger crop than in 1925, but the price this year was so much lower that the value
of the crop was many millions below last year’s crop, and in addition to the low price this year cer­
tain sections of the district did not share in the increased yield. The fruit crop was one of the
largest ever gathered, but the national fruit crop was also large and prices were consequently low.
The farm ers of the district raised more food and feed crops this year than in 1925, and cured an in­
creased tonnage of hay. They are consequently in better position to begin a new crop year than they
were a year ago, when they were faced by the necessity of buying nearly all supplies for both them­
selves and their live stock. On the whole, the agricultural population of the district probably received
considerably less money for their 1926 than for their 1925 crops, and in the sections dependent en­
tirely upon cotton or Dark tobacco the farm ers are less favorably situated than a year ago, but in
other sections of the district the year has probably measured about up to average.




6

FIGURES ON RETAIL TRADE
As Indicated By Reports from Thirty-one Representative Department Stores for the Month of NOVEMBER 1926
P ercen tage increase in N ovem ber 1926 sales over sales in N ovem ber 1 925:
B a ltim o re
R ichm ond
W a sh in gton
O th er C ities
D is tr ic t
3.4
15.3
7.6
8.2
6.3
P ercen tage increase in cum ulative sales from January 1st through N ovem ber, over sales during the cor­
responding eleven m onths in 1 925:
.8
5.5
5.4
3.3
3.2
P ercentage increase in N ovem ber sales over average N ovem ber sales during th e five years 1 9 2 0 -1 924, in ­
clusive :
4.9
41.6
27.6
2.8
16.0
P ercen tage increase in stock on hand N ovem ber 30, 1926, over stock on N ovem ber 30, 1 925:
— .1
7.3
4.6
1.3
2.4
P ercentage increase in stock on hand N ovem ber 30, 1926, over stock on October 31, 19 2 6 :
1.2
2.0
2.7
2.4
1.9
P ercen tage o f sales in N ovem ber 1926 to average stock carried during th a t m onth:
31.0
29.1
30.7
22.8
29.8
P ercen tage of cum ulative sales since January 1st to average stock carried during each o f th e eleven m onths:
2 80.6
290.1
300.5
2 41.1
284.1
P ercen tage o f ou tstan d in g orders on N ovem ber 30th to total purchases o f goods in 19 2 5 :
5.3
6.0
5.2
4.7
5.3
P ercen tage o f collection s in N ovem ber to to ta l accounts receivable on N ovem ber 1st:
24.7
28.7
37.8
32.7
28.9
— D enotes decreased percen tage.

Retail trade in the Fifth Reserve District in November, as reflected in sales by thirty-one leading
department stores, was 6.3 per cent above that of November 1925, and also exceeded the average
volume of sales in November during the five years 1920-1924 by 16 per cent. Total sales this year
since Jan u ary 1st were 3.2 per cent ahead of the record set during the first eleven months of 1925.
Stocks on the shelves of the reporting stores on November 30, 1926, were 2.4 per cent larger than on
November 30, 1925, and were 1.9 per cent larger than on October 3 1st this year. The percentage of
sales in November to average stocks carried that month was 29.8 per cent, and the percentage of total
sales since Jan u ary 1st to average stock carried during each of the eleven months was 284.1 per cent,
a slightly higher figure than 282.8 per cent attained during the corresponding eleven months last
year. Collections in November averaged 28.9 per cent of receivables outstanding on November 1st,
showing some improvement over 27.7 per cent of outstanding receivables collected in October.

WHOLESALE TRADE, NOVEMBER 1926
P ercen tage increase in N ovem ber 1926 sales, compared w ith sales in N ovem ber 1 925:
36 G roceries
12 D ry Goods
6 Shoes
15 H a rd w a re
5 F u rn itu re
12 D ru gs
— 5.4
11.1
18.5
13.6
22.1
1.3
P ercen tage increase in N ovem ber 1926 sales, com pared w ith sales in October 1926:
— 5.5
— 12.0
— 23.3
— 5.5
6.8
— 4.6
P ercen tage increase in to ta l sales since January 1st, com pared w ith sales during th e sam e eleven m onths in 1925:
— 2.9
— 2.9
8.4
3.2
— 4.4
<*
.4
P ercen tage increase in stock on N ovem ber 30, 1926, com pared w ith stock on N ovem ber 30, 1925:
— 4 .0 (1 2 )
— 1 0 .1 (5 )
3 1 .1 .(3 )
1 .6 (7 )
......... .........<P ercen tage increase in stock on N ovem ber 30, 1926, com pared w ith stock on O ctober 31, 1926:
5 .4 (1 2 )
— 1 .5 (5 )
4 .3 (3 )
— 4 .3 (7 )
P ercen tage of collection s in N ovem ber to to tal accounts receivable on N ovem ber 1, 1926:
6 8 .8 (2 2 )
3 4 .8 (8 )
3 3 . 9 ( 5 ) ________ 3 6 .6 (1 1 )____________ 3 2 .8 (3 )
5 2 .6 (8 )
■
— D enotes decreased p ercentage.
N O T E : The num ber o f firms rep ortin g stock and collection data in each group is show n im m ed iately fo l­
low in g the p ercentages.

Eighty-six wholesale firms in six important lines of trade reported upon November's business.
All lines except groceries show larger sales in November this year than last, but all lines except
furniture show seasonally smaller sales than in October 1926. During the eleven elapsed months of
1926, sales of shoes, hardware and drugs exceeded sales in the corresponding period of 1925, but
grocery, dry goods and furniture sales were smaller this year.
Stocks on the shelves of the reporting firms on November 30, 1926, were larger than a year
earlier in shoes and hardware lines, but grocery and dry goods stocks were smaller this year. In
comparison with stocks on hand a month ago, October 31st, stocks on November 30th were larger in
groceries and shoes, but were smaller in dry goods and furniture.
Collections in November were better than in October in groceries and dry goods, but were
slower in shoes, hardware, furniture and drugs.



(Compiled December 20, 1926.)
7

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

A ctiv ity in m an u factu rin g industries decreased in N ovem ber
and D ecem ber, w hile production o f im portant m inerals continued
at a high level. W holesale prices declined to the low est level in
m ore than tw o years. Firm er m oney conditions in D ecem ber re­
flected the usual seasonal requ irem en ts in connection w ith holiday
and en d-of-year activ ity .
PRO DUCTIO N. F a cto ry em ploym ent and pay rolls declined in
N ovem ber, reflectin g decreased activ ity in m any im portant indus­
tries, but ow ing to the large output o f m inerals, the F ed eral R e­
serve B oard’s index o f production in basic industries advanced som e­
w hat during the m onth. P roduction o f bitum inous coal and
petroleum in recen t w eeks has exceed ed all previous records, and
output o f copper and zinc during the m onth o f N ovem ber
was in unusually large volum e. P ig iron production also increased
sligh tly in N ovem ber, but steel m ill operations in th a t m onth and
in D ecem ber w ere considerably reduced. A utom obile production,
which is not included in the in d ex of production in basic industries,
declined sharply in N ovem ber fo r the second con secu tive m onth and
w as sm aller than in any m onth since A u gu st, 1925. T ex tile m ill
a ctivity w as m aintained during N ovem b er a t approxim ately the
sam e rate as in October. The value o f b uilding contracts awarded
show ed less than the usual seasonal decline in N ovem ber and was
sligh tly larger than in N ovem ber, 1925. A wards fo r the first h alf
of D ecem ber lik ew ise exceed ed those reported in th e corresponding
period of la st year.
A G R ICU LTU RE. The D epartm ent of A gricu ltu re estim ates the
value o f 55 principal crops raised in 1926, on th e basis o f D ecem ber
1st farm prices, at $ 7 ,8 0 2 ,0 0 0 ,0 0 0 , com pared w ith $ 8 ,9 5 0 ,0 0 0 ,0 0 0
in 1925. O f the decrease in the value o f crops the decline in the
value of the cotton crop accounts fo r $ 5 8 0 ,0 0 0 ,0 0 0 , and th at o f
the corn crop fo r about $ 2 6 0 ,0 0 0 ,0 0 0 , w hile the to ta l value o f the
w heat crop increased by n early $ 4 0 ,0 0 0 ,0 0 0 .

PER CENT

B A N K CREDIT. Loans and in vestm en ts o f m em ber banks in
lead in g cities increased by over $ 1 0 0 ,0 0 0 ,0 0 0 during the fou r w eeks
en d in g D ecem ber 15th, reflecting in part th e grow th in th e demand
fo r credit and currency th at; u su ally occurs in D ecem ber.
The
increase w as in loans on secu rities, w hile com m ercial loans declined
som ew hat from th eir seasonal high p oin t in N ovem ber. The volum e
of reserve bank credit show ed th e usual season al increase a fte r the
m iddle o f N ovem ber, but w as low er than in th e corresponding
period of 1925, partly because there w as a sm aller increase th is
year in the am ount of m oney in circulation. M oney m arket con­
ditions becam e slig h tly firmer in D ecem ber than at the end o f
N ovem ber. Com m ercial paper rates w ere unchanged but open-m arket rates on bankers' accep tan ces advanced by one-eighth of one
per cent and call rates on secu rity loans averaged higher fo r the
m onth.



8

----- [150

100

/ \ P a y rolls
— \
+J

A

/X /

VVv*N

1925

1926

Employment

50
FACTO|RY EMPLOY'MENT
A!4D PAY ROL LS

1 192^
1..........
1923

1922

Federal Reserve Board’s indexes of factory employment and pay rolls (1919100). Latest figures, November, employment 95.2, pay rolls 108.8.
PER CENT

200

150

SO
W H O LESALE PF (ICES

T RA DE. In N ovem ber distribution of m erchandise at w hole­
sale and retail show ed the usual decline from the a ctiv ity earlier in
the autum n. Compared w ith a year ago, how ever, w holesale trade
w as in about the sam e volum e and reta il trade larger. Sales o f
departm ent stores w ere about 7 per cen t larger than la st year and
th ose o f lead in g m ail order houses w ere 6 per cen t larger. Stocks
o f m erchandise carried by w holesale firms declined fu rth er in N o­
vem ber and w ere sm aller at th e end o f the m onth than a year ago.
Inventories o f departm ent stores, how ever, increased slig h tly more
than is usual in N ovem ber. F reigh t car loadings declined consider­
ably in N ovem ber and D ecem ber from the record high lev els o f Oc­
tober, although the m ovem en t of coal continued heavy.
P R IC E S. The gen eral lev el o f w h olesale prices declined in
N ovem ber and prices o f m any im portant basic com m odities decreased
fu rth er in th e first h a lf of D ecem ber. The B ureau o f Labor S ta­
tistics in dex of w holesale com m odity prices fo r N ovem ber w as 148,
the low est lev el since Ju ly 1924. B itu m in ou s coal prices increased
sharply during October and the early part of N ovem ber, but in
recent w eeks have declined by about tw o-thirds o f th e previous
rise. P etroleum prices have been reduced since early in N ovem ber,
and there have also been declines in pig iron, copper, zinc, lead
and silver. The fa ll in prices of agricultural com m odities, which
has lasted w ith fe w interruptions fo r over a year, continued in
N ovem ber. Grains, how ever, have risen som ew hat since the la tter
part o f th at month. The clothing-m aterials and h ouse-furnishings
groups have declined stea d ily in price during recen t m onths to
the low est lev els o f the post-w ar period.

PER CENT

isor

1

1

Index of value of building contracts awarded as reported by F. W. Dodge Cor­
poration. (1919-100). Latest figure, November 188.
BILLIONS OF DOLLARS

2

BILLIONS OF DOLLARS

2

I
1
RESEFWE BANKC:redit
Total
Reserve Bar
Credit 4
X
t

\

/

^
Di:icountsfor
MeiuberBanks-

W
r>

A

L U.S.Secuirities
\

Ky

Acceptsnces/C

v W

a/

V

Monthly averages of daily figures for 12 Federal Reserve Banks.
figures, averages of first 21 days of December.

Latest