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MONTHLY REVIEW CREDI T, B U S I N E S S AND A G R I C U L T U R A L C ONDI T IONS WILLIAM W. HOXTON, CHAIRMAN AND FEDERAL RESERVE AGENT FEDERAL RESERVE BANK OF RICHMOND D ECEM BER 31, 1930 RICHMOND, V IRG IN IA N OVEMBER and the first half of December did not witness as much seasonal increase in general business as occurs in most years, the period mak ing on the whole a relatively poor record. In addition to the generally depressed conditions which have been more or less prominent throughout the year, the ill effects of the summer drought and low prices for agri cultural products became more in evidence as farmers failed to liquidate this year’s indebtedness in normal volume. This latest influence adversely affected supply merchants, banks in agricultural sections, and both re tailers and wholesalers of general merchandise. Mem ber banks materially increased their borrowing at the Federal Reserve Bank of Richmond between the mid dle of November and the middle of December, caused in part by a desire on the part of the banks to strength en their cash positions rather than by any additional demand for commercial credit. For the same reason that the reserve bank’s discounts for member banks in creased, the volume of Federal reserve notes in actual circulation also rose by much more than the average amount at this season. On the other hand, member banks reduced their outstanding loans slightly during the past month, but less than in most years. Deposits in member banks declined considerably during the month. Debits to individual accounts showed a sea sonal increase during the four weeks ended December 10, 1930, in comparison with the preceding four weeks this year, but were 8.6 per cent less than debits in the corresponding period a year ago. Commercial failures in the Fifth district in November were more numerous than in November last year, but this year’s liabilities were less. Employment conditions did not improve in November and early December, but on the contrary there seems to have been an increase in the number of persons seeking work. Bituminous coal production last month was in less volume than in either October 1930 or November 1929, and was probably not up to seasonal level. West Virginia dropped below Pennsyl vania in production in October and continued in second place through November. The textile industry in the Fifth district made no further progress last month, but appears to have held the slight gain reported in October. Cotton prices, after firming up somewhat between the middle of October and the middle of November, turned downward again and went below 9 cents per pound at the middle of December, the lowest figure since the early part of the World War. Final crop production figures now being released confirm earlier fears of drought damage, and the price situation for the chief money crops of the Fifth district continues unsatis factory. Construction work planned or contracted for in November was in less volume than in November 1929. Retail and wholesale trade in November was considerably below earlier months this year, and also compared unfavorably with trade in November 1929. Reserve Bank Statement ITEMS Dec. 15 1930 Rediscounts held ......................... $37,039 Open market paper....................... 11,796 Government securities ................ 12,261 Total earning assets.......... ....... 61,096 Circulation of Fed. Res. notes.... 106,241 Members’ reserve deposits.......... 60,578 Cash reserves .............................. 119,028 Reserve ratio ................................ 71.11 000 omitted Nov. 15 Dec. 15 1930 1929 $19,005 11,151 16,983 47,139 68,903 64,171 96,229 70.66 $41,122 18,163 5,817 65,102 96,986 63,998 102,422 63.39 Contrary to seasonal trend, rediscounts for member banks held by the Federal Reserve Bank of Richmond rose materially between November 15 and December 15, nearly doubling during the month. The increase of $18,034,000 was, as stated above, due in part to the desire of some member banks to strengthen their cash positions. As a corollary, the volume of Federal re serve notes in actual circulation rose by $37,338,000 during the month, much more than the usual seasonal expansion attributable to holiday shopping needs. A considerable portion of the increased volume of notes in circulation did not pass into channels of trade, but was stored for the time being in the vaults of com mercial banks as an emergency fund with which to meet any unusual calls for currency. Member bank reserve deposits declined by $3,593,000 last month, partly due to lower reserve requirements on reduced deposits and partly as a result of the desire to increase vault cash. The reserve bank reduced its holdings of Government securities by $4,722,000 between November 15 and December 15, and cash reserves increased by $22,799,- MONTHLY REVIEW 2 000 during the same period as a result of the changes enumerated in the statement and others of a more tech nical nature. The ratio of cash reserves to note and deposit liabilities combined rose about half a point dur ing the month under review. The changes which occurred in the statement of the Richmond bank last month brought the figures on De cember 15 rather closely in line with the figures of the preceding year. At the middle of December this year rediscounts for member banks were only $4,083,000 less than on December 15, 1929, and total earning assets were only $4,006,000 less on the 1930 date. The re serve bank’s holdings of open market paper decreased $6,367,000 during the year, but this decline was prac tically balanced by an increase of $6,444,000 in hold ings of Government securities. The volume of Federal reserve notes in actual circulation on December 15 was $9,255,000 above the amount on December 15, 1929, Member bank reserves were $3,420,000 lower on the 1930 date. The several changes mentioned, with others not discussed, raised the cash reserves of the Federal Reserve Bank of Richmond by $16,606,000 during the year, and also increased the ratio of reserves to note and deposit liabilities combined by 7.72 points. Member Bank Statement 000 omitted ITEMS Dec. 10 1930 Nov. 12 1930 Dec. 11 1929 Loans on stocks and bonds (in cluding Governments) .............. $171,397 $174,372 $191,049 089,272 292,969 314,677 All other loans.......................... 505,726 Total loans and discounts........ 460,669 467,341 188,809 156,978 Total inv. in stocks and bonds.... 182,401 38,367 38,861 38,934 Reserve bal. with F. R. Bank...... 11,852 14,058 13,376 Cash in vaults..................... .......... 354,130 Demand deposits........................... 344,875 354,121 Time deposits .................. ........... 245,375 256,825 233,107 6,465 20,543 14,042 Borrowed from Fed. Res. Bank.. The accompanying table shows the principal items of condition of fifty-four regularly reporting member banks in the Fifth reserve district as of three dates, thus affording an opportunity for comparison of the latest available figures with those of the corresponding dates a month and a year earlier. It should be under stood that the figures in the table reflect conditions as of the report dates only, and are not necessarily the highest or lowest figures that occurred during the in tervals between the dates. During the month between November 12 and De cember 10, total loans and discounts held by the fiftyfour reporting banks decreased by $6,672,000, loans on securities declining $2,975,000 and commercial and agricultural loans declining $3,697,000. A decrease in loans at this time of year is seasonal, especially in com mercial and agricultural loans, sales of farm products and fall merchandise putting farmers and merchants in funds with which to liquidate at least part of their obligations. In the latter part of November and early December the closing of a considerable number of banks, a large majority being small non-member banks, caused some member banks to increase their vault cash; a withdrawal of deposits in some localities also called for additional funds. These funds were secured by sale of $6,408,000 investments in securities, and an increase of $7,577,000 in rediscounts at the reserve bank. Cash in vaults rose by $2,206,000 during the month under review, while total deposits declined $20,696.000, demand deposits falling $9,246,000 and time deposits $11,450,000. Some decline in deposits occurs at this season in most years, partly due to liquidation of loans and partly for holiday trade, but this seasonal decline was considerably augmented this year. A comparison of December 10, 1930, figures with those for December 11, 1929, shows total loans out standing to be $45,057,000 less this year, loans on se curities declining $19,652,000 and all other loans de creasing $25,405,000. On the other hand, the invest ments in securities held by the fifty-four reporting banks rose by $25,423,000 during the year, and they reduced their rediscounts at the reserve bank by $6,501.000. Notwithstanding recent declines, aggregate deposits increased by $3,013,000 between December 11, 1929, and December 10, 1930, a decline of $9,255,000 in demand deposits being more than offset by an increase of $12,268,000 in time deposits. Reserve balance of the reporting banks at the reserve bank and cash in vaults changed little during the year, the for mer declining by $567,000 while the latter rose $682,- 000. Debits to Individual Accounts CITIES 000 omitted Total debits, four weeks ended Nov. 12 Dec. 11, Dec. 10, 1929 1930 1930 Asheville, N. C............. $ 13,044 414,943 Baltimore, Md........... .... 18,858 Charleston,, S. C...........37,394 Charleston, W. Va....... 43,223 Charlotte, N. C............. 23,241 Columbia, S. C.............. 8,445 Cumberland, Md........... 10,732 Danville, Va.................. 26,030 Durham, N. C............... 19,415 Greensboro, N. C......... 16,520 Greenville, S. C........... 8,510 Hagerstown, Md........... 19,494 Huntington, W. Va..... 17,448 Lynchburg, Va..... .......... 12,217 Newport News, Va..... 51,679 Norfolk, Va.................. 5,426 Portsmouth, Va............. 20,121 Raleigh, N. C............... 138,411 Richmond, Va.............. 30,641 Roanoke, Va................. 11,763 Spartanburg, S. C.......... 214,474 Washington, D. C....... 12,262 Wilmington, N. C....... 32,237 Winston-Salem, N. C.~ District T otals.......... $1,206,528 $ 28,125 389,863 20,873 33,303 42,575 23,068 8,421 8,338 26,411 18,262 15,682 8,193 16,953 15,257 10,238 50,092 4,198 23,040 135,316 25,549 11,717 218,339 13,582 32,324 $1,179,719 $ 24,918 397,600 24,400 44,173 52,092 23,376 9,347 14,155 29,579 24,506 21,070 10,582 24,490 19,011 11,258 68,670 5,225 20,954 148,219 32,946 15,807 239,299 15,804 42,064 $1,319,545 Debits to individual, firm and corporation accounts figures in the table, reported for three equal periods of four weeks each by clearing house banks in twentyfour leading Fifth district cities, show the usual in crease during the period ended December 10, in com parison with the four weeks ended November 12. Aggregate debits in the reporting cities totaled $1,206,528,000 during the four weeks ended December 10, an increase of $26,809,000, or 2.3 per cent, over the MONTHLY REVIEW total of $1,179,719,000 reported for the preceding pe riod this year. Among the twenty-four reporting cities, only seven failed to show the seasonal increase. Ports mouth showed the greatest percentage increase, 29.3 per cent, Danville ranking second with an increase of 28.7 per cent. Baltimore and Richmond gained 6.4 per cent and 2.3 per cent, respectively, during the later period, but Washington figures declined 1.8 per cent. The unusually large decrease in Asheville was due to bank failures, three of the seven banks which furnished figures for the period ended November 12 having been closed during the later period. In comparison with debits totaling $1,319,545,000 reported for the four weeks ended December 11, 1929, the total for the corresponding four weeks this year showed a decrease of $113,017,000, or 8.6 per cent, a part of which was due to lower price levels in many lines this year. The decline this year was quite general, only three cities, Baltimore, Newport News and Ports mouth, showing higher figures for the 1930 period. Washington reported a decline of 10.4 per cent this year, and Richmond’s figures were 6.6 per cent below those of the 1929 period. Savings and Time Deposits Twelve mutual savings banks in Baltimore reported total deposits at the close of business November 30, 1930, amounting to $198,623,483, a slightly lower figure than $198,704,801 of deposits at the end of Octo ber this year but a higher figure than $187,526,332 re ported for November 30, 1929. Time deposits in fiftyfour regularly reporting member banks totaled $245,375,000 on December 10, 1930, in comparison with time deposits aggregating $256,825,000 on November 12 this year and $233,107,000 on December 11, 1929. Some decline in savings and time deposits occurs in most years during November and December, due chief ly to withdrawals for holiday shopping, but the de crease reported for member banks between November 12 and December 10 was larger than usual. Commercial Failures Business failures in the Fifth reserve district num bered 12 1 in November, exactly the same number re ported for October this year but 23.5 per cent above 98 insolvencies in the district in November 1929. In aggregate liabilities involved, November showed a total of $1,718,380, a higher figure than $1,430,900 in Octo ber 1930 but 9.9 per cent less than $1,907,499 in No vember last year. The district increase in number of bankruptcies last month in comparison with those of the corresponding month last year was greater than the average increase of 13.1 per cent for the United States, but the decrease in Fifth district liabilities was much better than a National increase averaging 6.2 per cent. Employment Employment conditions did not improve during the past month insofar as regular work was concerned, but in some cities temporary jobs were given to a consider able number of heads of families by relief organiza tions. Plans for unemployment relief are numerous, 3 but are largely in formative stages and have thus far shown few results. Inclement weather for outdoor work and unusually depressed conditions in many agri cultural sections are adding to the number of persons seeking employment. The textile strike at Danville continues, but the mills involved are operating with reduced forces. Coal Production Bituminous coal mines in the United States dug 38,122.000 net tons of coal in November this year, a de crease from 44,150,000 tons mined in the longer month of October 1930 and also less than 46,514,000 tons mined in November 1929. Total output of bituminous coal in the United States during the present calendar year to December 6 (approximately 287 working days) amounts to 431,540,000 net tons, compared with 497,980.000 tons mined to the same date last year and 465.836.000 tons- in 1928. Shipments of coal through Hampton Roads in November totaled approximately 1,733,883 tons, and total shipments from January 1 through November 30 totaled 19,660,911 tons. The November 22 report of the Bureau of Mines, Department of Commerce, gave bituminous coal pro duction by states for the month of October. West Vir ginia was in second place with 11,134,000 tons, Penn sylvania ranking first with an output of 11,429,000 tons. Textiles The textile industry made no material progress in November, but held the slight gain reported in October. Nearly all Fifth district mills are on full daylight shifts, but few are running at night. The mills in the Carolinas and Virginia consumed 191,245 bales of cotton in November, of which North Carolina mills used 104,377 bales, South Carolina mills 82,319 bales, and Virginia mills only 4,549 bales, the last figure being unusually small because of the strike at Danville. In the longer month of October 1930 Fifth district mills consumed 195,520 bales of cotton, and in November 1929 used 243,209 bales. Consumption of cotton in the Richmon reserve district in November this year totaled 46.1 per cent of National consumption, compared with 44.0 per cent in October 1930 and 44.7 per cent in Novem ber 1929. Cotton Statistics Cotton prices turned downward again at the middle of November on ten leading Southern spot markets, and reached the lowest level in fifteen years at the mid dle of December. From an average price of 10.23 cents per pound on November 14 for 7/8 inch staple, middling basis, the price dropped to 10.05 cents on November 21, to 9.74 cents on November 28, to 9.66 cents on December 5, and to 8.99 cents on December 12, the latest date for which figures are available. On December 13, 1929, the average price for cotton on the same markets was 16.61 cents, and on December 14, 1928, the average was 19.14 cents. Condition figures in the Department of Agriculture’s final report of the year, issued on December 8, esti mated this year’s production of cotton as 14,243,000 bales, a decrease of 195,000 bales under the November 4 MONTHLY REVIEW 1 forecast and 585,000 bales less than final ginning figures on the 1929 crop. The report stated that final ginning figures for this season would depend upon whether the various factors were favorable for picking the part of the crop still in the fields. The production estimate for the Fifth district was reduced below the November 1 figure, all of the decline occurring in North Carolina. North Carolina’s probable production for 1930 was given in the latest estimate as 795,000 bales, a lower figure than 840,000 bales forecast a month earlier but more than 747,000 bales ginned in 1929. South Carolina’s forecast of 1,040,000 bales shows an increase over 1,030,000 bales predicted a month earlier, and is materially larger than final gin nings of 830,000 bales last year. The Virginia yield for 1930 is 42,000 bales, compared with 39,000 bales expected on November 1 and 48,000 bales grown last year. Total production in the Fifth district is there fore expected to be about 252,000 bales larger this year than in 1929, but in spite of the larger yield this year, prices have been so much lower that the total receipts from cotton in the Fifth district will be from 25 to 35 per cent less this year than for the shorter crop of 1929, calculations being based on December 1 prices. Ginning figures to December 1, released by the Census Bureau on December 8, showed 12,834,970 bales ginned from this year’s crop, compared with 12,853,166 bales of last year’s crop ginned before December. Cotton consumption in American mills in November totaled 414,887 bales, according to the report of the Census Bureau released on December 13. This figure shows a decrease from 444,494 bales consumed during the longer month of October this year, and is approxi mately 21 per cent below 541,153 bales consumed in November 1929. Total consumption during the four months of the present cotton year amounted to 1,606,037 bales, compared with 2,285,500 bales consumed during the four months ended November 30, 1929. Cotton on hand at manufacturing establishments on November 30 this year totaled 1,566,854 bales, com pared with 1,352,885 bales held on October 31 this year and 1,655,071 bales held on November 30 last year. Bales in public warehouses and compresses num bered 8,397,000 at the end of November, 7,542,596 at the end of October, and 5,812,658 on November 30, 1929. Exports of cotton totaled 907,649 bales in No vember, compared with 1,004,120 bales sent abroad in October this year and 1,048,760 bales in November 1929. Imports last month totaled 3,409 bales, com pared with 1,747 bales imported in October this year and 35,502 bales in November last year. Cotton growing states consumed 333,041 bales in No vember, compared with 424,437 bales used in November last year. Last month’s consumption in the cotton growing states amounted to 80.3 per cent of National consumption, compared with 78.4 per cent of National consumption used in the cotton growing states in No vember last year. Of the 333,041 bales of cotton con sumed in the cotton growing states in November, the Fifth district mills used 191,245 bales, or 57.4 per cent, a slightly higher figure than 57.3 per cent of Southern consumption attained by Fifth district mills in Novem ber last year. Tobacco Marketing North Carolina auction tobacco markets sold 141,608,883 pounds of producers’ tobacco in November 1930, at an average price of $13.92 per hundred pounds,' compared with 117,224,132 pounds sold for growers in November 1929 at $21.43 per hundred pounds. Total sales this season on North Carolina markets reached 415,481,856 pounds, compared with 400,083,645 pounds sold on the same markets prior to December 1, 1929. Last month Wilson led in sales with 19,352,243 pounds, but Greenville was a close second with sales totaling 18,586,166 pounds. Mebane led all North Carolina markets in average price paid in November with $17.53 per hundred pounds, Fuquay Springs ranking second with $17.00 and Durham third with $16.74 per hundred. In season sales Wilson re ports 61,566,015 pounds, Greenville being second with 52,469,560 pounds. Virginia tobacco markets sold 35,172,540 pounds for growers in November this year, practically the same amount as 34,721,246 pounds sold in November last year. O f the November 1930 sales, flue-cured sales totaled 30,261,415 pounds, fire-cured sales totaled 4,682,650 pounds, and sun-cured totaled 228,475 pounds. Prices received for tobacco last month were much lower than those received in November a year ago. Flue-cured tobacco brought $9.37 per hundred pounds in November 1930, compared with $18.97 in November 1929; fire-cured tobacco brought $8.03 last month and $14.53 last year; sun-cured tobacco sold for $7 and $10.23 per hundred in November 1930 and 1929, respectively. Warehousemen estimated that the quality of tobacco sold last month graded only 12 per cent good, 27 per cent medium, and 61 per cent com mon, compared with November 1929 sales averaging 29 per cent good, 41 per cent medium, and only 30 per cent common. Agricultural Notes Most of the farm work for the 1930 season has been completed, but final figures on crop production are not yet available. In the next issue of this Review a table will be printed, containing production figures for the leading crops of the Fifth district for 1930 and 1929. On the whole, 1930 has been one of the most un satisfactory years on record for agriculture in the states embraced in the Fifth district. Yields vary widely in different sections, the Carolinas harvesting crops about equal to or somewhat above those of aver age years, while in Virginia, West Virginia and Mary land the long drought of the past summer reduced yields to the lowest levels in many years, and in a few instances to the lowest figures ever recorded. The benefits which normally would have come to the Caro lina farmers from good yields were prevented this year by very low prices for their money crops, and of course the low prices intensified the disastrous effects of the drought in the upper half of the Fifth dis trict. Construction Building permits issued in the leading cities of the Fifth reservei district in November continued in small MONTHLY REVIEW volume in both number and estimated valuation. In No vember this year only 795 permits for new construction were issued in 32 cities, compared with 1,137 permits issued for similar work in November 1929, while valua tion figures for new work last month totaled only $4,777,062, compared with $5,092,899 in November last year. Combined valuation figures for both new con struction and alteration or repair work totaled $5,990,074 in November 1930 and $6,109,206 in November 1929, a decrease of $119,132, or 2 per cent, for the current month. The 2 per cent decrease last month does not tell the story of the real extent of curtailment in building, however, unless attention is called to the fact that the November 1929 valuation figures were 57 per cent below those of November 1928. In November this year, only 11 of the 32 reporting cities showed higher valuation figures than in November 1929, and several of these 1 1 increases were due to unusually small figures last year. Contracts awarded in November for construction work in the Fifth district, including both rural and urban propects, totaled only $15,067,295, compared with $22,870,261 awarded in November 1929 and $33,621,418 in November 1928, according to figures col lected by the F. W. Dodge Corporation. Of the awards in November thi§ year, $3,721,005 was for residential work, compared with $7,830,381 for this type of work in 1929. Retail Trade, 34 Department Stores Baltimore Washington Other Cities District 5 stores showed a seasonal increase during November, but at the end of the month were 9.7 per cent less than stocks on hand on November 30, 1929, part of this de crease being due to lower prices in many lines this year. The reporting stores turned their stocks .3 times in November, and between January 1 and November 30 the average turnover was 3.041 times, a higher figure than 2.969 times stock was turned in the corresponding 1 1 months in 1929. Collections during November in 33 of the 34 report ing stores averaged 28.3 per cent of receivables out standing on November 1, a slightly higher figure than 28.2 per cent reported for October 1930 but less than 29.3 per cent in November last year. Collections in Washington last month were slightly better than in November 1929, but Baltimore and the Other Cities showed lower percentages for the current month. Wholesale Trade, 67 Firms 24 Groceries 9 Dry Goods 7 Shoes 15 Hardware 12 Drugs November 1930 sales, compared with sales in November 1929: — 15.6 — 16.9 —12.6 —24.1 —14.7 November 1930 sales, compared with sales in October 1930: —18.0 —25.1 —28.1 — —22.3 — 12.0 Jan.-Nov. 1930 sales, compared with Jan.-Nov. 1929 sales: — 6.7 — 17.2 — 9.4 —16.1 — 6.1 Nov. 30, 1930 stocks, compared with Nov. 30, 1929 stocks: .......... — 7.0(9*) —19.9(4*) — 6.6(6*) — 13.8(8*) November 1930 sales, compared with sales in November 1929: — 15.2 — 6.1 — 13.7 — 11.6 Nov. 30, 1930 stocks, compared with Oct. 31, 1930 stocks: _ .6(9*) -4 7.9(4*) —21.5(6*) — 3.0(8*) .......... Jan.-November 1930 sales, compared' with Jan.-November 1929: Percentage of Nov. 1, 1930 receivables collected in November: 60.3(15*) 34.5(6*) 45.8(7*) 31.6(12*) 49.4(8*) — 1.8 — 1.8 — 8.1 — 3.0 Nov. 30, 1930, stock, compared with stock on Nov. 30, 1929: — 6.4 — 11.5 — 12.4 — 9.7 Nov. 30, 1930, stock, compared with stock on Oct. 31, 1930: .6 5.1 3.0 2.7 Number of times stock was turned in November 1930: .325 .323 .218 .3 No. times stock was turned between Jan. 1 and Nov. 30, 1930 3.227 3.241 2.398 3.041 Percentage of Nov. 1, 1930, receivables collected in November 28.3 24.6 32.0 32.0 Retail trade in the Fifth reserve district in Novem ber, as reflected in sales by 34 department stores, was considerably below seasonal volume in comparison with earlier months this year, and averaged 11.6 per cent less than in November 1929 in dollar amount. Only 6 of the 34 reporting stores showed larger sales in November this year than in November last year, and 3 of these 6 increases were probably due to store ex pansion and larger stocks. Washington stores as a whole reported smaller decreases in sales last month than the stores in other sections. Cumulative sales in the first 11 months of 1930 totaled 3.0 per cent less than sales in the corresponding period in 1929. Stocks of goods on the shelves of the reporting * Number of reporting firms. Wholesale trade in the Fifth Federal reserve dis trict was poor in November, a large majority of sixtyseven reporting firms in five leading lines showing smaller sales than in either October this year or Novem ber 1929. Part of the decrease in comparison with October was seasonal, and part in comparison with No vember 1929 was due to lower price levels this year, but the declines last month were greater than can be ac counted for by these two influences. In cumulative sales since January 1, all five lines show lower figures than in the same period of 1929, drugs making the smallest decrease with 6.1 per cent and dry goods the largest decrease with 17.2 per cent. Stocks carried by the reporting firms decreased in November, and at the end of the month were lower in all lines for which data are available than at the end of November 1929. The percentages of collections in November to ac counts receivable on the first of the month were lower in all lines than the percentages in October, and were also lower in all lines except shoes than the percentages in November 1929. (Compiled December 20, 1930) MONTHLY REVIEW BUILDING OPERATIONS FOR THE MONTHS OF NOVEMBER 1930 AND 1929. Permits Issued o fc New Repairs 1930 1929 ~1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 319 10 6 20 17 3 18 86 2 9 42 18 6 29 9 9 3 21 9 13 4 11 5 1 7 26 8 6 9 4 5 60 795 539 11 15 19 20 4 14 35 7 7 55 29 7 28 19 20 *4 33 11 25 17 14 9 5 14 15 23 17 18 9 13 81 1930 1929 New Construction Alterations o fc 1930 1929 1930 1929 763 1,064 $ 1,579,920 $ 1,720,080 22,865 1 5 13,818 9 7,175 1 19,092 0 26,340 1 26,910 8 17,995 10 22,425 2 15,900 8 215 13 11 328,435 37,955 46 298,348 67 184,665 6 9 8,000 21,300 16 13 3,500 10,770 56 63 194,143 329,863 14 25 28,632 93,238 1 3 f*7,760 9,465 6 12 28,260 46,165 11 8 20,472 9,417 5 3 17,795 151,000 28 42 9,135 22,840 43 45 141,670 136,178 8 5 184,229 59,162 18 19 17,300 647,236 7 0 13,500 144,500 7 7 18,038 287,925 4 3 1,060 5,975 3 0 7,000 15,100 11 5 7,000 53,350 38 89 13,945 35,645 33 34 234,060 19,140 28 39 106,300 53,900 13 18 ^30,095 131,850 6 10 "1,805 8,810 14 23 r 10,900 38,350 358 332 1,243,550 868,495 $ 366,240 675 5,172 0 2,155 840 3,940 23,343 5,500 9,280 118,786 4,585 150 304,325 9,800 16,000 11,050 17,083 *7,450 13,765 3,860 3,800 2,185 280 3,700 18,646 6,665 9,680 5,385 1,725 3,277 233,670 512,720 1,875 5 150 3,000 5,071 3,755 14,015 5,195 7,165 92,926 6,773 2,310 11,300 3,935 “ 1,830 16,110 48,615 4,400 9,555 0 4,450 2,200 1,137 1,576 SI,974 $ 4,777,062 $ 5,092,899 $1,213,012 T 2 $1,016,307 1,750 15,050 34,870 17,060 6,110 3,287 10,000 171,825 the above table reflect the amount of work provided for in the corporation >unt of suburban developments. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 sev- MONTHLY REVIEW 7 BUSINESS CONDITIONS IN THE UNITED STATES (Compiled by the Federal Reserve Board) Volume of industrial production and factory employ ment decreased further in November and wholesale commodity prices continued to decline. Distribution of commodities by department stores increased less than is usual for November. Production and Employment. Industrial production declined about 4 per cent in November, according to the Federal Reserve Board’s seasonally adjusted index. Output of iron and steel decreased further while the number of automobiles produced per working day continued at a low level. Daily average cotton consumption increased further by somewhat more than the usual seasonal amount and activity at silk mills continued to increase, while wool consumption decreased by an amount substantially larger than is usual in, November. Production at ce ment mills was reduced considerably, daily output at meat packing establishments increased less than the usual seasonal amount, and output of minerals de clined. Factory employment and payrolls showed decreases in November, reflecting in part changes of a seasonal character. The number employed in the clothing and shoe industries decreased by more than the usual amount, while employment at silk mills showed an increase contrary to the ordinary seasonal movement. In the industries producing building materials, includ ing lumber, cement, and brick, declines: in employment exceeded the usual seasonal proportions. In the auto mobile industry employment declined further but by an amount considerably smaller than is usual in Novem ber. Value of contracts awarded for residential building and for public works and utilities, as reported by F. W. Dodge Corporation, declined in November and con tracts for commercial and industrial building continued at the low levels of other recent months. In the first two weeks of December the daily average of total con tracts awarded was somewhat smaller than in No vember. According to the December crop report of the De partment of Agriculture, output of corn in 1930 was 2,081,000,000 bushels, about 500,000,000 less than last year, and 600,000,000 bushels less than the five year average, while the total wheat crop of 851,000,000 bushels was about equal to the 1924-1928 average. The cotton crop of 14,243,000 bales was slightly small er than in the two previous seasons. Total crop pro duction was about 5 per cent smaller than a year ago. Distribution. Freight car loadings decreased further in November by more than the ordinary seasonal amount. Expan sion of department store sales from October to Novem ber was smaller than usual, following a growth in October that was larger than usual. Wholesale Prices. The general level of wholesale commodity prices de clined further in November, according to the Bureau of Labor Statistics, and there were additional price declines in the first half of December, when several commodities, including silver and cotton, reached new low levels. From the end of October to the middle of December there were substantial decreases in prices of many other commodities, including corn, hogs, pork, hides, tin, and coffee, while prices of copper and rubber fluctuated widely, declining at the end of the period. Bank Credit. Loans and investments of reporting member banks in leading cities declined by about $250,000,000 during the three week period ending December 10, reflecting a further reduction of $69,000,000 in loans on securi ties, and a decline of $196,000,000 in all other loans, offset in part by a further small increase in invest ments. There was also a decline in time deposits, re flecting* in large part withdrawal of Christmas funds. In the! following week, December 10 to December 17, changes in the figures for reporting banks reflected in part the closing of a large reporting bank in New York city. This resulted in a decline in the reported assets and liabilities of New York city banks. Reserve bank credit outstanding increased by about $294,000,000 during the four weeks ending December 17, and there was also an addition of $30,000,000 to the country’s stock of gold. Discounts for member banks increased by $126,000,000, acceptance holdings of the reserve banks by $74,000,000, and their holdings of United States securities, including one day Treasury certificates issued in connection with December 15 fiscal operations, by $96,000,000. The increase in reserve bank credit outstanding reflected a large growth in the demand for currency by the public and by banks, re sulting in part from the currency requirements for the holiday trade, and in part from demand for cash from banks and from the public in regions where important bank failures occurred during the period. During November and the first two weeks of De cember money rates continued fairly steady at ex tremely low levels, with prime commercial paper at a range of 2%-3 per cent, and bankers’ acceptances at 1% per cent. In the third week of December there was a slight increase in rates for call and time loans on the New York Stock Exchange. The yields of highgrade bonds increased during the latter part of the period.