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MONTHLY
REVIEW
CREDIT, B U S I N E S S AND A G R I C U L T U R A L C ONDIT IONS
W ILLIAM W. HOXTON, C h a ir m a n
and
F e d e ra l R e se r v e A gent
FEDERAL RESERVE BANK OF RICHMOND
F E B R U A R Y 28, 1930
RICHMOND, VIRG IN IA
A Q A
began with business at or near seasonal
levels in the Fifth Federal reserve district.
On the whole the developments of the first
six weeks of this year compare favorably with those
in the same period last year. Speaking collectively,
the member banks in the district are in a more sat
isfactory condition at present than they were a year
ago. Their loans are lower this year, and their de
posits are also down somewhat, but their borrowing
at the reserve bank has been approximately cut in half,
while their investments, reserve balances and cash in
vaults show relatively little change. This Bank’s earn
ing assets are lower than a year ago, but the cash re
serves and the ratio of reserves to note and deposit
liabilities combined are much higher. Debits to in
dividual accounts figures in the leading cities of the
Fifth district have been running behind the figures
for the preceding year since last November, but prob
ably much of this decrease is due to lessened activity
in, stock trading this year and is therefore not indi
cative of any material decline in ordinary business pay
ments. Savings deposits in both mutual savings and
member banks are higher than a year ago, testifying
to large purchasing power in the district. Employment
conditions are less satisfactory now than in February
1929, but prospects for additional work improved dur
ing the past month. Coal production continues at sea
sonal levels, and with relatively low reserve stocks on
January 1st the prospects for fair demand during the
next f e w months are at least equal to those of
last year. Tobacco markets sold comparatively large
amounts of tobacco in January for prices somewhat
above the January 1929 prices for most types. The
tobacco manufacturing industry in the Fifth district
grew more in 1929 than the average for the Nation.
Retail trade in January was better than in the same
month last year in Maryland, the District of Columbia,
and. in West Virginia. Wholesale trade reported sea
sonal gains in January business over December, but
was a little lower than the volume of trade in January
1929. Finally, the situation in the construction field
improved in January in comparison with the past sev
eral months. Permits issued in January exceeded in
valuation those of December and also were larger than
the figures for January last year, and figures for con
tracts actually awarded last month were at approxi
mately the seasonal level.
The outstanding unfavorable elements in the situa
tion in the Fifth district are the very low cotton prices
and short yields of cotton in certain sections of the
Carolinas, the poor demand for cotton textile products,
an increase in commercial failures, and a marked de
cline in retail and wholesale trade in the Carolinas.
These weak spots in the business field have been re
flected to other lines, of course, and the effects have
been felt in other sections which have business deal
ings with the affected areas. The Eastern counties
in South Carolina are the most seriously affected by
the disastrous decline in cotton prices, the yield of cot
ton in those counties having been small last year, but
some cotton growing counties in North Carolina are
nearly as hard hit.
Reserve Bank Statement.
000 omitted
ITEMS
Feb. 15
1930
Jan. 15
1930
Feb. 15
1929
Rediscounts .................................. $ 21,149 $ 29,918 $ 36,999
Open market paper......................
14,124
11,736
15,736
Government securities ...............
9,902
9,902
2,775
Total earning assets............... $ 45,175 $ 51,556 $ 55,510
Circulation of Fed. Res. notes....
81,543
86,373
76,704
Members’ reserve deposits..........
64,114
65,775
68,082
Cash reserves ..............................
105,916
113,216
98,264
Reserve ratio ...............................
75.69
69.06
66.63-
Rediscounts for member banks held by the Federal
Reserve Bank of Richmond declined $8,769,000, or
29.3 per cent, between January 15th and February
15th, both this year, and on the latter date totaled $15,850,000, or 42.8 per cent, less than on February 15th
last year. About 80 per cent of last month’s decline
and approximately 60 per cent of the year’s, decrease
in member bank borrowing at the reserve bank was
in rediscounts for banks in the larger cities. The
Bank increased its portfolio of open market paper by
$2,388,000, or 20.3 per cent, last month, but assets
of this character dropped $1,612,000, or 10.2 per cent,
during the year. Government security holdings of the
MONTHLY REVIEW
2
Richmond bank remained unchanged from January
15th to February 15th at a figure $7,127,000, or 256.8
per cent, above that of February 15, 1929. The va
rious changes in earning assets during the month and
year resulted in a net decrease in total earning assets
of $6,381,000, or 12.4 per cent, between January 15th
and February 15th, and of $10,335,000, or 18.6 per
cent, between February 15th last year and the cor
responding date this year.
The circulation of Federal reserve notes declined
$4,830,000, or 5.6 per cent, between January 15th and
February 15th, a regular seasonal reduction, but on
February 15th this year circulation exceeded that of
February 15, 1929, by $4,839,000, or 6.3 per cent.
Member bank reserve deposits at the Federal Reserve
Bank of Richmond rose 2.6 per cent last month, being
$1,661,000 higher at the middle of February than on
January 15th, but a decline in reserve deposits of
$2,307,000, or 3.4 per cent, occurred during the past
year, chiefly due to lower aggregate deposits in mem
ber banks against which reserves must be carried. The
several changes mentioned, with others of less sig
nificance, raised the total cash reserves of the Rich
mond bank as of February 15, 1930, to a point $7,300,000, or 6.9 per cent, above the total on January
15, 1930, and $14,952,000, or 15.2 per cent, above the
total on February 15, 1929. The ratio of cash reserves
to note and deposit liabilities combined was 75.69 per
cent on February 15th this year, 6.63 points higher
than a month earlier and 9.06 points higher than on
February 15th a year ago.
Member Bank Statement.
Feb. 12
1930
Jan. 15
1930
Feb. 13
1929
Loans on stocks and bonds (in
cluding Governments) ............ $192,139 $188,682 $201,799
All other loans.............................. 302,464 309,650 316,055
Total loans and discounts...... $494,603 $498,332 $517,854
153.199
158,408
155,109
Total inv. in bonds & stocks......
41,241
37,979
39,709
Reserve balance at F. R. Bank..
11,412
11,481
11,147
Cash in vaults.......................... .
Net demand deposits................... 352,830 352,924 369,679
Time deposits .............................. 240,177 235,410 239,668
16,820
7,234
14,258
Borowed from Fed. Res. Bank....
The figures in the above table are totals of the prin
cipal items of condition as of the three dates for fiftyeight member banks in twelve of the leading cities of
the Fifth Federal reserve district.
Loans on stocks and bonds at the reporting member
banks increased $3,457,000, or 1.8 per cent, during
the past month, but on February 12th were $9,660,000,
or 4.8 per cent, less than loans on stocks and bonds on
February 13, 1929. All other loans declined last month
by $7,186,000, or 2.3 per cent, and at the middle of
February were $13,591,000, or 4.3 per cent, less than
a year earlier. Total loans and discounts show net
declines of $3,729,000, or 7/10ths of 1 per cent, in the
past month and $23,251,000, or 4.5 per cent, in the
year. Investments in bonds and securities by the re
porting banks changed relatively little during the year,
on February 12th being $1,910,000 higher than a
Debits to Individual Accounts.
000 omitted
CITIES
000 omitted
ITEMS
month earlier but $3,299,000 below the total on Feb
ruary 13, 1929. Aggregate reserve deposits of the
fifty- eight reporting banks on February 12, 1930, were
$1,730,000, or 4.4 per cent, less than reserves a month
earlier and $3,262,000, or 7.9 per cent, below the total
a year ago, last month’s decline representing little
more than a daily fluctuation while the year’s decrease
is accounted for by lower deposits against which re
serves are carried. Cash in vaults decreased slightly
last month as is usual at this season of the year, and
on the latest report date was $265,000, or 2.3 per cent,
less than a year earlier. Aggregate deposits made a
net gain of $4,673,000 between January 15th and Feb
ruary 12 th, a very slight decrease in demand deposits
being offset by a rise in time deposits. On February
12th this year aggregate deposits were $16,340,000, or
6.8 per cent, less than total deposits on February 13,
1929, the decrease being entirely in demand deposits.
Time deposits at the middle of February were $509,000 above time deposits on February 13th last year, a
very small figure but a significant one, this being the
first increase of time deposits over the corresponding
figure a year earlier since October 1928. The fiftyeight reporting banks reduced their borrowing at the
reserve bank still further last month, their rediscounts
at the Richmond bank declining between January 15th
and February 12th by $7,024,000, or 49.3 per cent,
and on the latter date being $9,586,000, or 57.0 per
cent, less than on February 13, 1929.
Total Debits, Five Weeks Ended
Feb. 12
Jan. 8
Feb. 13
1930
1930
1929
Asheville, N. C............. $ 30,180
Baltimore, Md..............
463,752
Charleston, S. C...........
24,940
Charleston, W. Va......
49,351
Charlotte, N. C....... .....
62,213
Columbia, S. C.............
28,426
Cumberland, Md...........
10,264
Danville, Va..................
12,297
Durham, N. C...............
32,370
Greensboro, N. C.........
25,522
Greenville, S. C...........
26,531
Hagerstown, Md...........
10,839
Huntington, W. V a.....
25,933
Lynchburg, Va.............
22,839
Newport News, Va.....
12,441
Norfolk, Va..................
68,183
Portsmouth, Va............
5,981
Raleigh, N. C...............
25,437
Richmond, Va...............
157,264
Roanoke, Va. ,..............
36,742
Spartanburg, S. C.......
16,324
Washington, D. C.........
{276,115
Wilmington, N. C.......
16,738
Winston-Salem, N. C...
48,832
District Totals ........
$1,489,514
$
33,098
503,697
31,750
59,089
65,181
33,500
11,093
14,958
<33,889
28,216
27,442
12,893
29,427
26,215
14,564
77,288
6,015
30,504
178,577
41,869
19,619
288,524
21,438
48,811
$1,637,657
$
30,565
468,501
31,468
47,737
69,943
28,676
11,088
12,035
39,530
29,786
29,497
12,287
26,730
23,643
12,316
75,486
6,273
37,256
172,261
34,045
17,674
320,584
20,297
54,070
$1,611,748
Aggregate payments by check drawn on the clear
ing house banks in twenty-four leading cities of the
Fifth Federal reserve district are shown in the ac
companying table for three equal periods of five weeks,
thus affording opportunity for comparison of the latest
MONTHLY REVIEW
figures, for the five weeks ended February 12, 1930,
with the preceding like period this year and the cor
responding period a year ago.
An examination of the figures shows a seasonal de
cline in total payments during the latest five weeks in
comparison with the preceding period ended January
8th. The earlier period was raised to high figures by
transactions in December preceding Christmas and by
large annual payments on or about January 1st. The
decrease this year was somewhat larger than occurs
in most years, however, and was district wide, every
city reporting lower totals for the five weeks ended
February 12th except Winston-Salem, N. C. The
average decline in the district in the later period was
slightly more than 9 per cent.
A comparison of the figures for the five weeks
ended February 12th this year with the corresponding
period ended February 13, 1929, discloses a decrease
for the 1930 period of 7.6 per cent, the most unfav
orable comparison with the same period of the pre
ceding year for any month since September 1928, and
the third consecutive month in which debits to indi
vidual accounts dropped below those of the preceding
year. In the five weeks ended February 12, 1930, only
four of the twenty-four reporting cities showed larger
figures than a year ago, these being Roanoke with an
increase, of 7.9 per cent, Charleston, W. Va., with a
gain of 3.4 per cent, Danville with 2.2 per cent, and
Newport News with 1.0 per cent. Baltimore showed
a very small decrease, but all of the other larger cities
declined materially, Washington decreasing 13.9 per
cent, Charlotte 11.1 per cent, Norfolk 9.7 per cent,
and Richmond 8.7 per cent. Winston-Salem, which
reported the only gain for the period under review
over the immediately preceding five weeks, showed a
decline of 9.7 per cent in comparison with the 1929
period. It is probable that the decline in check pay
ments this year does not actually represent as great
a decrease in general business as the figures might
indicate, the 1929 figures having been swelled to a
considerable extent by stock trading, of which there
appears to be much less this year.
Savings Deposits.
At the close of business January 31st, twelve mutual
savings banks in Baltimore had aggregate deposits
totaling $190,250,263, in comparison with $189,048,745
on December 31, 1929, and $187,929,960 on January
31, 1929. Time deposits in fifty-eight reporting mem
ber banks also increased last month and reached a level
above that of the corresponding date last year. Time
deposits in the fifty-eight member banks totaled $240,177,000 on February 12th, compared with $235,410,000
on January 15th this year and $239,668,000 on Feb
ruary 13th last year.
Commercial Failures.
Business failures in most years are at the highest
point in January, due to the strain of year-end settle
ments, and in January this year insolvencies in the
Fifth district numbered 184, compared with 116 in
December and 170 in January last year. However, the
district increase of 8.2 per cent during the year was
3
a little better than the National increase of 8.8 per
cent. Liabilities involved in Fifth district bankrupt
cies last month totaling $4,509,938 compared with $2,032,894 in December and $2,165,331 in January 1929,
the year’s increase of 108.3 per cent contrasting quite
unfavorably with the National rise of 13.6 per cent.
The number of insolvencies in the district last month
was larger than in any other month since January
1928, and the January 1930 liabilities were the largest
monthly total since November 1928.
Employment Conditions.
No material change occurred in employment con
ditions in the Fifth reserve district during the past
month, but prospects for additional work later in the
year improved. There is evidence of an increase in
construction activities to be begun during the first
half of 1930, and some industrial plants are reporting
increased orders. For example, a car manufacturing
plant in Richmond has recently announced receipt of
a large order for box cars from a leading railroad,
which will enable the company to give employment to
a large number of men for several months. A new
cigarette plant now nearing completion in Richmond
will open shortly, and will employ several hundred new
workers, most of whom will be women. On the whole,
the outlook seems to have improved distinctly since the
first of the year,, and with the approach of warm
weather to lighten the expenses of living the unem
ployment situation should be less serious than for the
past few months.
Coal.
Bituminous coal production in the United States in
January 1930 totaled 49,778,000 net tons, compared
with 46,200,000 tons mined in the shorter month of
December and 51,456,000 tons in January a year ago.
The increase last month in comparison with Decem
ber was larger than the longer month accounted for,
daily production being higher than in the earlier month.
Total production this coal year to February 8th (ap
proximately 265 working days) amounted to 449,510,000 net tons, a higher figure than for the corresponding
periods of the two preceding years but less than the
output in 1926-27. West Virginia continued to lead
all states in the mining of bituminous coal in January,
The United States Bureau of Mines, Department of
Commerce, issued a report on February 18th on com
mercial stocks of coal as of January 1, 1930. This
report showed an increase in the stock of bituminous
coal since October 1st, indicating production greater
than consumption during the fall and winter. Most
of the excess production over consumption occurred in
October. However, the reserve stocks on January 1,
1930, were the lowest for any corresponding date
since 1923. The cold weather this season increased
consumption, and in November, December and Janu
ary it was greater than in the corresponding months a
year earlier.
Textiles.
The textile industry in the Fifth district is probably
in worse condition than any other major industry, with
4
MONTHLY REVIEW
the possible exception of lumbering. Yarn and cloth
mills are operating below capacity, and are finding
buyers reluctant in placing orders except for immediate
or very early shipment. Some of the mills are ac
cumulating more manufactured stock in their ware
houses than they like, and there is much complaint
about low profits on the goods sold. Most of the
mills are keeping their employees at work on at least
part time, but some wage reductions have been an
nounced in the district. However, there is no con
certed action on wage reductions, the cases that have
occurred being worked out independently by each mill.
The textile manufacturing establishments of the
Fifth reserve district consumed 261,391 bales of cotton
in January this year, of which North Carolina mills
used 138,302 bales, South Carolina mills 110,519 bales,
and Virginia mills 12,570 bales. Consumption of cot
ton in the district totaled 290,146 bales in January last
year. The cotton used in the two Carolinas and Vir
ginia in January 1930 was 45.28 per cent of consump
tion in the United States for that month, and compared
with 43.42 per cent of National consumption used in
the same states in January 1929.
Cotton Statistics*
In our January 31st Review we quoted the average
spot cotton price on leading Southern markets on Jan
uary 17th as 16.80 cents per pound, but since that
time there has been a marked softening of the market
and the average price dropped below the 16 cents line
to an average of 15.70 cents on January 31st, and on
February 7th fell below the 15 cents mark to 14.67
cents. There was a partial recovery during the latest
week for which figures are available, and on February
14th the average price was 15.33 cents. This price was
3.49 cents per pound below the average on the cor
responding date in 1929, a decline of approximately
$17.50 per bale.
Consumption of cotton in the mills of the United
States in January totaled 577,235 bales, an increase
over 453,892 bales used in December but 13.6 per cent
below the January record of 668,286 bales set in 1929,
according to the February 14th report of the Bureau
of the Census. Total consumption of cotton in the
six months ended January 31st amounted to 3,319,837
bales, against 3,447,645 bales consumed in the cor
responding period of the 1928-1929 season. Cotton
on hand at manufacturing establishments on January
31, 1930, totaled 1,830,096 bales, compared with 1,844,248 bales on hand a month earlier, December 31st,
and 1,768,165 bales on January 31, 1929. Public
warehouses and compresses held 5,406,771 bales of
cotton in storage at the end of January, compared
with 5,914,422 bales in storage a month earlier and
4,615,312 bales a year ago. Bales of cotton exported
last month totaled 728,737, a smaller figure than 910,321 bales shipped over seas in December or 788,595
bales e x p o r t e d in January last year. January
1930 imports totaled 51,474 bales, compared with 36,190 bales in December and 54,939 bales in January
1929. Cotton spindles active at some time in January
numbered 29,198,134, compared with 29,069,510 in De
cember and 30,753,168 in January 1929.
Consumption of cotton in the cotton growing states
numbered 451,519 bales in January 1930, against 353,971 bales in December and 508,221 bales in January
last year. The cotton growing states used 78.22 per
cent of National consumption in January this year,
compared with 77.99 per cent in December and 76.05
per cent in January 1929. Of the 451,519 bales used
in Southern states last month, the three Fifth district
states which manufacture cotton goods, the two Caro
linas and Virginia, consumed 261,391 bales, or 57.89
per cent, compared with 57.09 per cent in January
last year.
Tobacco Marketing.
Virginia auction markets sold 30,822,463 pounds of
producers' tobacco in January, at an average price of
$17.97 per hundred pounds. Season sales to February
1st totaled 112,649,230 pounds, approximately 86 per
cent of the estimated sales for the season. In January
1929 sales of 24,348,739 pounds of tobacco brought
the season sales up to 98,176,637 pounds, which was
83.7 per cent of the year's total sales. Flue-cured to
bacco sold in January totaled 16,306,242 pounds, at
an average price of $16.46 per hundred, compared
with 11,971,795 pounds of this type sold in January
1929, at an average of $15.36 per hundred. Firecured tobacco sales in January were unusually heavy,
totaling 8,338,601 pounds compared with 7,730,008
pounds in January 1929. The average price paid for
fire-cured tobacco last month was $18.13, the highest
January price since 1925, compared with $12.45 in
January last year. Sales of Burley tobacco, all at
Abingdon, totaled 4,489,552 pounds last month, and
averaged $24.76 per hundred pounds, sales of this
type being the largest for any month on record. Suncured sales on the Richmond market totaled 1,686,098
pounds last month, and the average price received by
growers was $13.62 per hundred pounds. Danville
sold 8,569,154 pounds of flue-cured tobacco last month,
South Boston sold 3,959,303 pounds of the same type,
and Lynchburg with 2,276,172 pounds led the firecured markets. Petersburg led the flue-cured markets
in price paid with an average of $17.84 per hundred
pounds, while Drakes Branch paid an average of $21.69
per hundred for fire-cured tobacco, leading the markets
for that type. The quality of tobacco sold in January
1930 was better than in January 1929. The Burley
market at Abingdon closed early in February and some
flue-cured markets have also closed, but the remainder
will continue operations until about March 1st.
North Carolina auction markets s o l d 26,708,007
pounds of tobacco for growers in January, at an av
erage price of $16.80 per hundred pounds, compared
with 27,798,339 pounds sold for an average of $16.30
per hundred in January 1929. Total sales this season,
to February 1st, amounted to 473,047,438 pounds,
compared with 475,123,360 pounds sold prior to Feb
ruary 1 , 1929. Winston-Salem sold 7,666,598 pounds
in January 1930, leading all markets, while Henderson
with sales of 3,177,644 pounds and Oxford with 2,772,222 pounds ranked second and third, respectively.
In average price paid, Mebane led last month with
MONTHLY REVIEW
$20.62 per hundred pounds, Roxboro coming second
with $19.67.
Tobacco Manufacturing.
Internal revenue figures released by the Treasury
Department show the importance of the Fifth reserve
district in the tobacco industry. For example, in 1929
this district paid $291,565,933.55 in taxes on cigarettes
alone, out of a total of $357,205,753.91 paid by the
entire country. North Carolina paid taxes on ciga
rettes amounting to $223,168,258.44, and Virginia paid
$68,397,602.04, both leading the third state, New York,
by a very wide margin. North Carolina also led all
states with taxes totaling $22,824,616.10 on smoking
and chewing tobacco and snuff. Virginia paid $1,057,051.33 taxes on cigars manufactured, but this
amount was exceeded by six other states, most of
Virginia’s cigars being cheap package goods. Out of
aggregate tobacco taxes paid to the Federal Govern
ment in 1929 totaling $449,058,963.84, the Fifth dis
trict paid $321,630,291.55, or nearly 72 per cent. North
Carolina alone paid 54.9 per cent of all tobacco manu
facturing taxes last year. Total t a x e s collected
by the Government on t o b a c c o products in 1929
exceeded the 1928 taxes by 9.3 per cent, but the
amount paid by North Carolina increased 14.3 per
cent last year and Virginia’s aggregate tax rose 15.6
per cent. The third tobacco manufacturing state,
New York, showed a decline in 1929 taxes paid of
19.1 per cent in comparison with the 1928 figures. An
interesting feature of the Treasury Department report
was a gain in tobacco manufacturing taxes paid by
Kentucky of 105.7 per cent, due to an increase in
taxes paid on cigarettes from approximately $2,000,000
in 1928 to $11,000,000 in 1929.
Retail Trade, 35 Department Stores.
5
ginia. Of the 35 reporting stores, including those in
Baltimore and Washington as well as those in the
Other Cities, only 13 stores. reported higher figures
for last month. Percentage changes in sales varied
very widely, ranging all the way between an increase
in one store of 49 per cent down to a decrease in an
other of 41 per cent.
Stocks carried by the reporting stores at the end of
January 1930 were lower than stocks on hand a year
ago, and also showed a seasonal reduction in com
parison with stocks on hand on December 31st as a
result of the usual January clearance sales. The rate
of turnover of stock was slightly higher in January
this year than in the corresponding month last year in
most of the stores, but Washington showed a small
decline in this item. At this time in 1929 retail trade
in Washington was better than in most sections of the
district, however.
Collections in January averaged slower than in Jan
uary 1929, due to a falling off in Baltimore and Wash
ington. The Other Cities stores showed a larger per
centage of outstanding receivables as collected in Jan
uary! this year than in 1929.
Wholesale Trade, 69 Firms.
Jan. 1930 sales, compared with Jan. 1929:
27
Groceries
10
D ry Goods
5
Shoes
15
Hardware
12
Drugs
— 0.9
— 1.8
19.1
— 6.1
—17.9
Jan. 1930 sales, compared with Dec. 1929:
7.4
21.1
95.3
23.0
12.2
Jan. 31, 1930 stocks, compared with Jan. 31, 1929:
____ _
2.2(10*) —17.0(4*)
21.9(4*) — 3.6(8*)
Jan. 31, 1930 stocks, compared with Dec. 31, 1929:
9.2(10*)
8.4(4*)
10.5(4*)
1.8(8*)
_____
Percentage of Jan. 1, 1930 receivables collected in Jan.:
58.2(17*)
37.2(7*)
27.9(5*)
33.0(12*)
61.6(9*)
— Decreased percentage.
* Number firms reporting.
Jan. 1930 sales, compared with Jan. 1929:
Baltimore
Washington
Other Cities
District
10.0
1.6
h 9.7
2.8
Jan. 31, 1930 stocks, compared with Jan. 31, 1929:
— 3.5
— 0.5
— 5.8
— 3.0
Jan. 31, 1930 stocks, compared with Dec. 31,
1929:
— 6.9
— 6.3
— 6.1
— 6.5
Times stock turned in Jan. 1930:
0.270
0.253
0.187
0.244
Percentage of Jan. 1, 1930 receivables collected in Jan.:
27.____________ 1 31.7 _____ 341___________ 29.9
— Denotes decreased percentage.
This month we include figures in the table on retail
trade from thirty-five leading department stores in the
Fifth reserve district, an increase of five stores over
the number which reported regularly in 1929. Four
of the additional stores are located in North Carolina,
giving that state better representation in the statistics
than it had previously. Sales in January for the 35
stores as a whole were slightly larger than total sales
in the same stores in January 1929, but the increase
was almost entirely due to favorable returns from Bal
timore and Washington. Outside of those two cities,
only four stores reported higher sales in January this
year than in January a year ago, one of the four being
in North Carolina and the other three in West Vir
Wholesale trade in the Richmond Federal reserve
district was seasonally better in January than in De
cember, but was below the volume of business done in
January 1929, according to reports from sixty-nine
firms in five leading lines. All lines reported materially
larger sales in January than in December, shoe job
bers showing the largest increase, but all lines except
shoes reported lower sales last month than in January
last year. The unusual decline in drugs was due in
part to large sales in 1929 on account of an epidemic
of influenza.
Wholesale stocks increased in January, preparatory
for Spring trade, and at the end of the month stocks
of groceries and shoes were larger than a year ago.
Dry goods and hardware stocks were smaller this year.
January collections of receivables outstanding on
January 1st were slower in every line reported upon
than in January 1929, groceries showing the smallest
decline. Collections in January also compared unfav
orably with December collections in all lines except
drugs, which rose from 54.7 per cent of December
1 st receivables collected during that month to 61.6 per
cent of the January 1st receivables which were col
lected last month. The general decline in January
collections below those of December is unusual.
6
MONTHLY REVIEW
Building Permits Issued.
A detailed table of building permits issued in the
Fifth reserve district in January 1930 and January
1929 appears below. After an unfavorable record
during the closing months of 1929, building permits
in thirty-two Fifth district cities turned upward in
January and exceeded in estimated valuation the vol
ume of work provided for in January permits of the
preceding year. New work provided for in January
1930 permits was higher valued than permits for sim
ilar work isued in any other month since July 1929,
and was 10.8 per cent above estimated valuation in
January 1929. The actual number of permits issued
last month was less than in the corresponding month
of the previous year, but the average value of each
permit was higher in the 1930 month. The value of
alteration and repair permits issued last month was
less than in January 1929, chiefly due to unusually
high figures for this class of work in January last
year in several cities. Combined valuation figures for
all classes of permits issued in January 1930 exceeded
the January 1929 total by $414,103, or 4.3 per cent.
Exactly half of the thirty-two reporting cities showed
higher 1930 valuationfigures, the smaller cities com
paring somewhat more favorably with their 1929 rec
ords.-than the larger cities, of which only Baltimore,
Permits Issued
o
CITIES
~1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Baltimore, Md......
Cumberland, Md...
Frederick, Md......
Hagerstown, Md...
Salisbury, Md._....
Danville, Va.........
Lynchburg, Va.....
Norfolk, Va..........
Petersburg, V a .....
Portsmouth, Va....
Richmond, Va.......
Roanoke, Va........
Bluefield, W. Va...
Charleston, W. Va.
Clarksburg, W. Va.
Huntington, W.Va.
Asheville, N. C......
Charlotte, N. C .....
Durham, N. C......
Greensboro, N. C.
High Point, N. C...
Raleigh, N. C......
Rocky Mount, N.C.
Salisbury, N. C.....
Wilmington, N. C...
W
inston-Salem, N C._
.
Charleston, S. C....
Columbia, S. C .....
Greenville, S. C . .
Rock Hill, S. C.....
Spartanburg, S. C.
Washington, D. C.
New
Repairs
1930 1929
382
6
7
11
24
4
7
37
2
12
61
33
1
28
7
12
3
28
14
7
5
20
10
6
10
24
10
26
11
7
8
99
326
9
7
3
20
3
12
48
8
14
71
23
2
23
6
16
22
48
28
71
26
12
9
2
6
37
11
20
3
13
17
156
1930
758
3
8
3
7
12
23
49
2
15
45
12
2
5
2
1
33
18
3
18
3
12
2
0
8
35
33
21
27
7
18
345
1929
Charleston, W. Va., Huntington and Washington re
ported larger totals this year. Huntington reported
the greatest percentage increase over the January 1929
valuation figures, Salisbury, N. C., and Rocky Mount
ranking second and third, respectively, but the size of
the increases in Huntington and Salisbury were partly
due to low figures last year. Norfolk reported higher
figures for new construction last month than last year,
but a material decrease in alteration and repair work
resulted in a decline in the 1930 total for all classes
of work.
Building Contracts Awarded.
Contracts awarded for construction work in the
Fifth reserve district in January this year totaled
$27,432,558, including both urban and rural construc
tion, compared with $28,747,575 awarded in January
1929 and $27,606,830 in January 1928, the closeness
of the three figures apparently indicating about the
normal seasonal awards last month. Of the January
1930 total, $5,289,093 represented contracts for resi
dential types of construction, a considerably smaller
proportion of total awards than in either 1929 or 1928.
The figures in this paragraph were compiled by states
by the F. W. Dodge Corporation and rearranged ac
cording to reserve district lines by the Division of
Research and Statistics of the Federal Reserve Board.
Alterations
New Construction
1930
1929
*
1930
775 $ 2,232,960 $ 1,977,360 $ 363,840 $
1,500
3
14,540
5,827
7,345
3
22,150
28,980
440
4
8,555
18,525
8,550
10
73,700
42,450
4,508
9
1,225
4,250,
33,085
11
20,550
25,550
32,760
55
211,578
214,462
925
2
30,550
1,400
6,829
14
12.250
42.435
38,975
43
1,169,496
1,030.408
60,998
11
98,068
112,767
525
3
55
250
2,250
17
70,258
40,380
1,400
5
4,910
3,525
5,000
0
19,241
204.635
59,550
45
260.575
7,330
32
33.310
91,700
376.185
5,200
4
79,586
167,748
7,130
28
29,000
983.278
2,600
3
28.000
106.375
12,485
11
116,350
45,950
4,050
2
30,440
8,085
0
1
9,490
1,350
5,600
19
24,900
29,400
71
11,680
120,730
11,670
38
7,375
29,950
.6,265
31
83,700
33,600
16,000
30
58,650
12,600
9,470
5
15,200
9,575
2,625
14
17,350
40,150
3,010
475 4,311,700
2,155,375
228,470
1929
Increase or Per Cent
Decrease
of
of
Increase o
£
Total
or
Valuation Decrease
472,800 $
146,640
6.0%
525 —
7,738 — 51.4
3,950
10,225
39.2
1,950
8,460
80.5
7,550 — 30,250 — 37.2
2,720 —
1,237 — 17.7
10,265
27,820
90.3
80,335 — 44,691 — 15.3
4,000 — 32,225 — 93.3
9,886
27,128
25.1
35,031 — 135,144 — 11.2
70,882
4,815
68.9
275 — 26.2
995 —
18,128
14,000
33.3
1,735
1,050
37.9
190,394 989.5
0
116.600 — 310,295 — 82.3
70,700 — 321,875 — 72.0
5,450 — 88,412 — 51.0
37,276 — 984,424 — 96.5
750 — 76,525 — 71.4
68,435
14,450
113.3
25 605 288.2
800
7,990
150
532.7
17,500 — 16,400 — 35.0
— 154,602 — 86.9
57,222
8,589 — 24,899 — 64.6
56,775
9,325
132.3
33,635
21,885
97.5
7,550
700
73.5
— 22,790 — 52.8
3,000
1,981,725 — 77.5
403,070
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
Totals.............. 922 1,072 1,530 1,774 $ 8,959,493 $ 8,087,174 $ 976,365
4.3%
$1,434,581 $
414,103
— Denotes decrease.
NOTE—The figures in the above table reflect the amount of work provided for in the corporation limits of the sev
eral cities, but take no account of suburban developments.
(Compiled February 21, 1930)
MONTHLY REVIEW
7
BUSINESS CONDITIONS IN THE UNITED STATES
(Compiled by the Federal Reserve Board)
Industrial production increased in January from the j carload lots decreased slightly during the month, but
extreme low level of December. Factory employment, by a smaller amount than is usual at this season. Dur
which was in relatively small volume in the middle of ing the first two weeks in February there was some in
December, was further reduced by the middle of Janu crease in shipments, largely seasonal in nature.
ary, but preliminary reports indicate a slight increase
Department store sales in January, according to pre
in the three weeks following. There was a further liminary figures received by the Federal Reserve Sys
liquidation of bank credit and a decline in money rates. tem, were about 2 per cent lower than in the corres
Commodity prices continued to move downward.
ponding month of last year, this difference being about
the same as was shown the month before.
Production.
Industrial production showed an increase of about 4 Wholesale Prices.
per cent in January, according to the Board’s index,
Wholesale prices of commodities in January con
which makes allowances for the usual seasonal varia tinued to move downward. In general, fluctuations
tions. This increase reflected principally a larger out were small until the latter part of the month, when
put of automobiles, steel, cotton textiles, and shoes. decreases occurred in the prices of grains, cotton, wool,
Output of copper, cement, lumber, anthracite coal, and iron and steel, and petroleum. The prices of meats
flour declined, and the increase in bituminous coal out and livestock fluctuated over a wide range and aver
put was smaller than is usual for the season. In the aged higher in January than in December.
first two weeks of February steel plants increased their
In the first half of February the prices of hogs, pork,
rate of operation further, but continued to be less and cattle increased, while the prices of wheat, cotton,
active than in the corresponding period of last year. pig iron, petroleum, and textiles continued to decline.
Building contracts awarded showed little change in
January, a substantial increase in public works and Bank Credit.
utilities being in large part offset by a decrease in resi
Liquidation of member bank credit in January and
dential construction. In the first half of February the the early part of February was in substantially larger
daily average of contracts was lower than in January. volume than in the corresponding period of 1929. De
clines were reported in loans on securities and in all
Employment and Payrolls.
other loans, which continued to decrease in February
The number of wage earners employed at factories contrary to the usual seasonal trend. There was little
declined further between the middle of December and change in the banks’ holdings of investments.
the middle of January, and wage payments showed a
The volume of reserve bank credit outstanding de
larger reduction. In automobile and steel plants there clined by about $140,000,000 between the middle of
was an increase in employment in the month ending January and the middle of February. This decline
January 15th, and in recent weeks further increases was due in part to the reduction in member bank
have been reported for these industries. There were reserve balances which accompanied the decline in the
decreases in January in the number of wage earners banks’ loans and investments; in part to the continued
employed in the machinery, car-building and repairing, return flow of currency from circulation; and in part
lumber, and cement industries.
to gold imports, largely from Brazil and Japan.
During the three-week period ending February 3rd
Money rates in the open market eased further. Rates
the Bureau of Labor Statistics, on the basis of pre on commercial paper declined to a range of 4 yZ>-4$4
liminary returns, reported a slight increase in factory per cent, and rates on 60-90 day bankers’ acceptances
employment.
declined from 4 to 3% and later to 3% per cent. Dis
count rates at the Federal Reserve Banks of New York,
Distribution.
Chicago, Boston, and Kansas City were reduced from
Shipments of freight were in about the same volume Aj 2 to 4 per cent, and rates at Philadelphia, Cleveland,
/
in January as in December. Average daily loadings Richmond, St. Louis, Minneapolis, and Dallas from
of miscellaneous freight and merchandise in less-than- 5 to 4^2 per cent.
