The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF RICHMOND General Business and Agricultural Conditions in the Fifth Federal Reserve District By CALDW ELL H ARD Y, Chairman and Federal Reterre Agent RICHMOND, VIRGINIA, JANUARY 31, 1922. DISTRICT SUMMARY. NATIONAL SUMMARY * The month of December, 1921, was one o f con Production and trade show no striking de partures from the conditions prevailing at the tradictions in developments in the Fifth District, time of the last report. At this season there but on the whole favorable signs predominated. usually occurs a period of slackening in various Condition reports from eighty-two member lines of manufacture and this has been true dur banks show that liquidation of frozen loans is ing the past month. Such recession as there has steadily, though slowly, continuing, and some of been does not, however, go beyond the propor tions to be expected at this time of the year. the banks are working into stronger positions. The Federal Reserve Board’s price index for De This seasonal liquidation, and slight increases in cember shows a reduction of only two points, as both demand and time deposits, has enabled compared with a month earlier, while the United member banks to reduce the amount of their States Bureau of Labor Statistics shows no borrowings from correspondents and at the Fed change in its index. On the productive side in eral Reserve Bank. Debits to individual account terest has been largely centered about the iron at clearing house centers compare favorably with and steel trade. The activity in that branch of 1920, and are nearer normal in the Fifth District business has, on the whole, been slightly on the than the national average shown by the Federal increase, the end of the year showing a slowing Reserve Board’s weekly statements. Good down due to the usual inventory period, while grades of tobacco are bringing profitable prices. during the first part of January better inquiry, Cotton was considerably higher than during De particularly from railroads, has tended to in cember, 1920, though sales were in limited quan crease the volume of orders on hand as well as tities. The consumption of cotton by spinners the activity of the plants. Demand for nonferwas ahead of 1920, and more spindles were in rous metals continues quiet. In cotton and opiera.tip^ Textile manufacturers have sufficient woolen textiles no material change has taken .them running full time, with place but in other manufacturing lines there has# • or‘$£rj. to* jgGpd. ior a continuation of the been, if anything, a moderate tendency toward;*improvement. Little change in crop condj*igli§! **•#demand. Builmng.^rp*erations, while showing the # seasonal slump, ar<5 ahead of operations at can be expected during the winter season*.TRri&s : tbte^.tifHe.*# yea^r/ago.‘ ••Retail trade in seasonal of staple farm products have, on the whota* &Bout gppjjsfettVr than been expected for held their own with fair export dem^tfi; /Minor December, ana twenty-twfCReading department agricultural crops, especially citrus%*i^uits .and sugar cane, have shown satisfactory yields; j./A.* • • stQres%rApQrt.§ales# 50% gfekter in dollar value slight increase in unemployment is attributable: ! : dim^*!De<SenlfcSeft^: 3.93d, than during November, : • largely to seasonal recession and indicates no im • “ 1921V* On the other hand, December reported the portant change in the general demand for labor. greatest number of business failures and the Building operations have been unusually well largest total of liabilities for any month during maintained, especially for this season of the year, the past three years, Dun’s Review reporting 212 being about double those reported for the cor failures, with liabilities of $5,679,487, in the Fifth responding months a year ago. Wholesale trade District. On the whole, the unemployment lines have shown great variation. Sharp declines situation has shown no improvement. Retail have occurred in dry goods and boots and shoes, trade in clothing and shoes has been unsatisfac while hardware sales, although not declining in tory, chiefly due to unseasonably mild weather. so marked a degree, have fallen off substantially. Coal production continues extremely low, with Groceries also show a lessened volume of de resulting stagnation of business in the coal re mand. In the Southern states the decline in gions. wholesale lines has been especially pronounced in dry goods and shoes. The figures, however, The feeling in practically all lines o f trade, as make a distinctly favorable showing as compared reflected in reports from leaders in the chief in with a year ago. In retail trade, buying demand dustries and business activities of the Fifth Dis in the manufacturing districts of the East and trict, is optimistic for 1922. No great increase North still shows improvement, while demand in in trade is expected, but a gradual, steady im the agricultural regions of the West and South provement is confidently looked for, and manu indicates sharp decreases as compared with the facturers, wholesalers and retailers are making corresponding period a year ago. plans accordingly. :. f * The National Summary supplied by the Division of Analysis & Research of the Federal Reserve Board. CONDITION OF EIGHTY-TWO REPORTING MEMBER BANKS IN SELECTED CITIES. ITEM S 1. Total Loans and Discounts (exclusive o f rediscounts) *___________ - ___2. Total Investments in Bonds and Se3. Total Loans and Investments —_™ 4. Reserve Balance with Federal Reserve Bank ___________________________ 5. Cash in Vaults 6. Demand Deposits _____ 7. Titrie Deposits 8. Discounts with Federal Reserve Bank January 4, 1922 December 7, 1921 January 7, 1921 419.678.000 413.703.000 440.698.000 119.334.000 539.012.000 119.356.000 533.059.000 119.857.000 560.555.000 30.890.000 15.844.000 308.082.000 128.136.000 49.188.000 32.064.000 14.559.000 300.329.000 125.523.000 53.103.000 34.191.000 21.057.000 340.129.000 108.531.000 70.547.000 The preceding table shows the principal items of condition for eighty-two identical reporting member banks, located in thirteen of the leading cities of the Fifth District, at the close of business January 4, 1922, December 7, 1921; and January 7, 1921, thus affording comparisons of the current month with the preceding month and with the corresponding date a year ago. All items are strictly comparable for the three dates. Between January 7, 1921, and January 4, 1922, all items decreased except number seven, Time Deposits, which item increased from $108,531,000 to $128,136,000, a gain of 18.1% within the year. Total Loans and Discounts (exclusive of rediscounts) decreased from $440,698,000 on January 7, 1921, to $419,678,000 on January 4, 1922, a decline within the year of 4.7%. Total Investments in Bonds and Securities decreased from $119,857,000 to $119,334,000 between the two dates, a decline of .4%. Total Loans and Investments decreased from $560,555,000 to $539,012,000, a decline of 3.8%. Reserve Balance with the Federal Reserve Bank decreased from $34,191,000 to $30,890,000, a decline of 9.7%. Cash in Vault decreased from $21,057,000 to $15,844,000, a decline of 24.8%. Demand Deposits decreased from $340,129,000 to $308,082,000, a decline of 9.4%. Discounts with the Federal Reserve Bank decreased from $70,547,000 to $49,188,000, a decline of 30.3%. Comparing the figures as of January 4, 1922, with those reported for December 7, 1921, in creases are noted in Total Loans and Discounts, Cash in Vaults, Demand Deposits and Time De posits, but decreases are shown in Total Investments in Bonds and Securities, Reserve Balances with the Federal Reserve Bank, and in Discounts with the Federal Reserve Bank. The figures in dicate a continuation of the impr^q^eijueftftnrJ^ie credit conditions of the Fifth District, which was noted in our Review last mo^tK,Ca^id.ij(*f^{tftfer reflected in the Federal Reserve Bank’s weekly pub lished statements. ^ •*.*%**•:•**** * •••••*•*• V* fiDERAL RESERVE B&I^/OJPERATIONS. Between DecQmfter*7, 192k* ^ jd ^ a fy ja cj-til; 1922, Reserves in the Federal Reserve Bank of RichmoncL4dl£crfeased frbitf ^38365* :to $70,5fe§90f55. Between the same two dates, Total Bills on Hartd\$ecreased from $99,245,288.17 to $§&,68l,7jJ5*.37; Federal Reserve Notes in Actual Circulation decreased from SliQ,§9*t21$*tt>*$1CI!%557J8<5}\ #«a{id Total Member Bank Reserves decreased from $53,665,057.01 to $5&V&46/^04.* Reserve Bank of Richmond is no longer redis counting with other Reserve*Hanks* DEBITS TO INDIVIDUAL ACCOUNT IN CLEARING HOUSE CITIES. For the W eeks Ending CITIES January 4, 1922 Baltimore, Md. ___________ ________ __ $ Charleston, S. C--------------- ------------- ----Charlotte, N. C.----------------------------------Columbia, S. C. ______________________ Greenville, S. C-----------------------------------Huntington, W . V a-----------------------------Norfolk, V a________ ___________________ Raleigh, N. C------------------------------ -------Richmond, Va. ----------- .-------------- —-----Washington, D. C_____________________ Wilmington, N. C.-------- -------------- -----Totals for 9 cities________________ $ Totals for 11 cities_______________ * Not included in Totals for 9 cities. December 7, 1921 121,929,000 7.600.000 8.504.000 7.071.000 5,198,000* 4.462.000 14.884.000 9,000,000 27.555.000 36.351.000 5,807,000* $ 237,356,000 248,361,000 $ January 5, 1921 112,746,000 5.455.000 6.365.000 5.526.000 4,181,000* 5.103.000 18.978.000 3.400.000 37.319.000 42.151.000 4,939,000* $ 237,043,000 246,163,000 $ 134,443,000 6.900.000 8.173.000 5.650.000 5.557.000 18.580.000 4, 900,000 31.967.000 39.955.000 256,125,000 Debits to Individual Account in nine clearing house centers for the week ending January 4, 1922, totaled $237,356,000, compared with a total of $256,125,000, reported from the same cities for the week ending January 5, 1921, a decrease for the 1922 week of 7.3%. The average decrease re ported by the Federal Reserve Board for 159 cities between the same two dates amounted to 18.1%, indicating a very satisfactory volume of trade for the Fifth District in comparison with the nation as a whole. Both the 1922 and 1921 weeks contained only five business days, the New Year’s holi day being included in them. In comparison with the week ending December 7, 1921, the week ending January 4, 1922, shows an increase of nine-tenths of 1 per cent, reports from eleven cities being available. While the week ending January 4, 1922, contained only five business days, the end-of-year payments helped to swell the debits, and more than offset the holiday. Four cities report lower debits for the week ending January 4, 1922, than for the corresponding week a month previous, these four being Huntington, Norfolk, Richmond and Washington. Raleigh reported a large increase between the two dates, but the clearing house informs us that this abnormal increase was due to the shifting of State funds at the end of the year. MONTHLY CLEARINGS. For Month of December CITIES No. 1921 1. Charleston, S. C . -------------------- $ Charleston, W . V a . ___________ Charlotte, N. C. ______________ Columbia, S. C . ----------------------Frederick, M d . ----------------------- 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Greenville, S. C . __ _________ Hagerstown, M d . -------------------Huntington, W . V a .___________ Newport News, V a . ___________ Norfolk, V a . __________________ Raleigh, N. C. — -------------------Richmond, Va. _______________ Spartanburg, S. C . ____________ Washington, D, C . ____________ Totals---------------------------- $ 1920 10,572,148 16,354,383* 9.206,073 8,904,946 1,643,016 5,844,624 6,875,686 2,303,139 7,471.500 1,991,656 34,194,775 6,861,633 208,985,060 3,089,859 86,309,102 $ 394,253,217 $ ♦ Not Included in Totals Per Cent of Increase or Decrease Increase or Decrease 13,391,886 $ 2,819,738— 21.1— $ 1,895^991— 2,227,157— 958,905— 90,941 925,112— 508,407— 1,713,242— 1,408,808— 5,402,629— 1,240,763 23,505,970— 155,516— 7,647,629 32,542,142— “17.1— 20.0— 36.9— 1.6 11.9— 18.1— 18.7— 41.4— 13.6— 22.1 10.1— 4.8— 9.7 7.6— 11,102,064 11,132,103 2,601,921 5,753,683 7,800,798 2,811,546 9,184,742 3,400,464 39,597,404 5,620,870 232,491,030 3,245,375 78,661,473 426,795,359 No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. — Denotes decrease this year. The table shows bank clearings reported by fifteen clearing house centers in the Fifth Dis trict for the month of December, 1921, together with comparative figures from fourteen of the cities for the corresponding month of 1920. The table shows in dollars the actual increase or decrease in clearings in each city, and the percentage gain or loss in December, 1921, compared with December, 1920. An examination of the figures for the two months shows a decrease from $426,795,359 re ported for December, 1920, to $394,253,217 reported for December, 1921, a decline of $32,542,142, or 7.6%. This is the smallest decline reported in comparison with the corresponding month of the previous year since September, 1920. The publication of statistics on “ Bank Clearings” in our Monthly Review will be discontinued as of January 1st, 1922. It is generally conceded that “ Debits to Individual Account” reflect more accurately the volume of trade than do “ Bank Clearings.” Therefore, only “ Debits to Individual Account,” reported from an enlarged list of centers, will be continued in our forthcoming issues. However, the cities that have been reporting clearings have been requested to report individual debits so no city need be dropped from representation in our Review. BUSINESS FAILURES IN THE TWELVE FEDERAL RESERVE DISTRICTS Number City and District 1921 1920 Boston, First - - ----- ----- New York, Second-------------------Philadelphia, Third_________ — Cleveland, Fourth_____________ Richmond, Fifth ---------------------Atlanta, Sixth-------------------------Chicago, Seventh -------------------St. Louis, Eighth---------------------Minneapolis, Ninth ----------------- Kansas City, Tenth----- —---------Dallas, Eleventh ______________ San Francisco, Twelfth------------- 190 551 124 180 212 190 302 142 100 100 197 156 155 338 76 75 97 130 163 104 44 86 124 133 22.6 63.0 63.2 140.0 118.6 462 85.3 36.5 127.3 16.3 58.9 17.3 Totals----------- ----------------- - 2,444 1,525 60.3 Liabilities Per Cent Increase 1921 $ 6,671,119 36,979,329 4.176.377 4,050,490 5,679,487 6,066,401 7,820,313 3,873,516 2,158,515 2,152,128 4.307,254 3,567,453 $ 87,502,382 1920 $ Per Cent of Increase or Decrease 6,682,883 21,538,235 4,317,296 2,210,441 1,872,700 3,125,655 5,868,677 3,030,670 1,150,260 4748,658 2,141,462 2,184,602 0.2— 71.7 3.3— 83.2 203.3 94.1 33.3 27.8 87.7 54.7— 101.1 63.3 $ 58,871,539 48.6% Figures showing business failures are furnished us monthly by Dun’s Review, and the report covering December is given herewith in tabular form. For the Fifth District, the month witnessed 212 bankruptcies, with liabilities of $5,679,487, compared with 97 bankruptcies with liabilities of $1,872,700 in December, 1920, an increase this year of 118.6% in number and 203.3% in liabilities. In both number of failures and liabilities involved, the December, 1921, figures were greater than any other month during 1919, 1920 or 1921. The average failure in December, 1921, in the Fifth Dis trict involved $26,790, and for the nation as a whole, $35,803. It is interesting to compare the year 1921 with the two preceding years, for which complete figures are available. In the Fifth District the year 1919 witnessed 355 bankruptcies with com bined liabilities amounting to $5,605,832, an average of $15,791 per failure, when prices were rising steadily, and consumers were spending lavishly. The year 1920 witnessed 538 bankruptcies, with liabilities of $13,100,323, an average of $24,350 per failure. Finally, 1921 witnessed 1,515 bankruptcies with liabilities amounting to $34,380,335, an average of $22,695 per failure. While failures have not been unknown among well established firms, the larger part of the insolvencies occurred among the firms that were organized between 1916 and 1920. Many of these new concerns were undercapital ized, and were managed by men with limited experience, who expanded their business, drew too freely upon their credit, and over-stocked with high priced merchandise. In view of the universal expansion of credit existing in 1919 and 1920, the number of failures during the past 18 months has not been surprisingly large, especially when compared with other periods of post-war readjustments. LABOR.—The month’s reports on employment are difficult to compare in a manner that will al low a definite conclusion as to whether the number of unemployed is increasing or decreasing. The ab sence of noticeable changes probably indicates that the situation has not varied materially during the past month. There is a steady but slow growth in the number of employees taken on by facto ries, but an offset to this during winter is lessened employment on outdoor work, and reduced de mand for farm labor. The outstanding development during the period under discussion has been the strike announce ment by street car operatives of the Virginia Railway and Power Company, in protest against the Company’s proposed wage reduction, applying to platform employees in Richmond, Petersburg, Nor folk and Portsmouth. Apparently no progress toward a settlement of the differences has been made at the time of writing. CLOTHING AND SHOES.—December sales in wearing apparel do not share materially in Christmas trade and therefore the volume of business shows only a small increase in sales of clothing or shoes. Also the mild weather of the fall season was unfavorable for selling winter clothing. Immedi ately after the holidays the usual clearance sales were put on in practically all stores, and the price re ductions stimulated buying to some extent. A large wholesale dry goods firm writes that since January 1, 1922, it has been securing orders in very satisfactory volume for immediate or early shipment. Con sumers continue to select serviceable and standard clothing rather than novelties, and more attention is given to quality than eighteen months ago. The fact is, buyers insist that value be given. COAL.—In speaking of the December production of bituminous coal, the United States Geologi cal Survey, in its report of January 14, 1922, says that the output of soft coal during the month was 30,975,000 net tons, an average per working day of 1,191,000 tons. This was the lowest production in any December during the nine years over which records of monthly output extend. The same report further states that, at present, production is less than consumption, with a resulting flow of coal out of storage. There was an increase, however, in production during the first week in 1922, the daily output being 1,437,000 net tons as against the average of 1,191,000 tons produced daily during December. In the retail coal trade, some softening in prices has been noted, leading dealers in several cities having lowered their quotations from fifty cents to a dollar a ton, but consumers are still showing a strong tendency to buy coal as they need it rather than fill their bins for the re mainder of winter’s requirements. TOBACCO.—The tobacco markets in North Carolina and Virginia were closed from December 20 until after New Year’s Day. Since the reopening, sales have been comparatively light, due to unseas onable weather for the preparation of the leaf for market, but larger sales are expected as soon as the weather moderates. The warehousemen estimate that about 80% of the year’s production has already been sold, Prices since the holidays have been a shade higher for the common to good grades, but fancy leaf and wrappers have declined slightly. The average price for bright tobacco in Virginia during December, 1921, was $20.38 per hundred pounds, compared with $21.34 during December, 1920, and dark tobacco averaged $17.95, compared with $8.93 the previous year. Consumers are beginning to share in lower tobacco prices, the manufacturers and retailers having reduced their prices on most cigarettes and some cigars during the second week in January. The retail price of ten cent cigarettes has been reduced to nine cents, and the twenty cent grades to eighteen cents. COTTON.—The decline in cotton prices, that had been evident since the first of November, changed to an upward trend with the week beginning December 19th, and subsequently registered a gain of one cent per pound. The prices paid for middling spot cotton on the Carolina markets averaged 16.13 cents per pound during the week ending December 17; 16.96 cents for the week ending December 24; 17.27 cents for the week ending December 31, and 17.46 cents for the first week of the new year. There was a drop during the week ending January 14, amounting to a quarter of a cent per pound, the week closing at 17.22 cents. The holiday need for ready money stimulated sales to some extent just before Christmas, but otherwise little cotton was sold except so-called “distress cotton,” that could not be readily financed. The Census Bureau has announced that cotton ginned in the United States to January 1 amounted to 7,884,272 bales, compared with 11,554,648 bales ginned to the same date last year, a de crease this season of 3,670,376 bales, or 31.8%. It is generally agreed that a considerably higher per centage of the total crop was ginned prior to January, 1922, than was the case prior to January, 1921. In the Fifth District specifically, North Carolina shows ginnings this season to January 1, amounting to 783,598 bales, compared with 754,080 bales ginned previous to January 1, 1921, and Virginia shows 16,078 bales this season compared with 13,752 to the same date last year. The de crease of cotton ginned in the Fifth District is confined to South Carolina, where this season’s gin nings to January 1 were only 770,558 bales, compared to 1,454,644 bales on the corresponding date a year ago. The three cotton states of the District combined show 1,570,234 bales ginned this season compared with 2,222,476 bales last year, a decrease of 29.3%. This decrease is practically all due to boll weevil ravages in the southern and central portions of South Carolina. On January 14th, the Census Bureau announced that cotton consumed by spinners in Decem ber, 1921, amounted to 511,800 bales of lint, compared with 295,292 bales consumed in December, 1920. The December, 1921 figures were slightly lower than those for November, 1921, but were higher than for any other month since July, 1920. The report further shows stocks in the hands of manu facturers totaled 1,737,771 bales on December 31, 1921, compared with 1,251,122 bales on December 31, 1920, but stocks in warehouses totaled 5,177,266 bales on December 31, 1921, compared with 5,623,646 on December 31, 1920. Spindles active during December, 1921, numbered 34,488,640, com pared with 29,914,154 in December a year ago. TEXTILES.—The situation in the textile industry of the Fifth District during the past two months has shown very little change and our correspondents express the view that the next few months will furnish a sufficient volume of business to enable mills to continue on full time. Our reports indicate that stocks of manufactured textiles at mills, or in secondary hands, are not large, and that under this condition the approach of spring is expected to increase the demand at the mills. No boom in the business is expected, but manufacturers generally feel that a gradual demand will result in a fair volume of business at reasonably satisfactory prices. A few mills are sold up well into 1922, and a manufacturer of knit underwear writes that his plant has orders to run it until May. The same plant reports that a year ago it had neither orders nor prospects of any. REPORT ON WHOLESALE TRADE. Net Sales in December, 1921, Compared With LINES SOLD Sales in November, 1921 Sales in December, 1920 Groceries (3 9 )* __________________________________ Dry Goods (1 6 ) * _________________________ .______ Shoes (19)* ______________________________ ______ Hardware (18)* _________________________________ Furniture (9)* __________________________________ —10.5 —38.2 —37.1 —20.5 — 6.8 — 17.9 — 1.1 38.2 — 17.5 447.3 Total (101)*________________________________ —24.2 — 3.2 ♦Number of reporting firms. Wholesale trade in the five reporting lines showed the usual seasonal dullness during December in comparison with the three or four months immediately preceding. The table given above shows in percentage form the increase or decrease in the dollar amount of sales made in December, 1921, in comparison with (1) sales in November, 1921, and (2) sales in December, 1920. Complete reports for the three months were received from thirty-nine wholesale grocery firms, sixteen wholesale dry goods firms, nineteen wholesale shoe dealers, eighteen hardware jobbers and nine furniture factories, a total of one hundred and one reports. The grocers show sales in December, 1921, 10.5% less than November, 1921, and 17.9% less than December, 1920. In dry goods December, 1921, shows a de crease of 38.2% under November, 1921, and 1.1% under December, 1920. Shoe sales were 37.1% less in December than in November, 1921, but were 38.2% greater than in December, 1920. Hardr ware sales fell 20.5% in December under November, and 17.5% under December, 1920. Furniture sales were 6.8% less in December than in November, but were 447.3% greater than in December, 1920. The average for all firms shows December, 1921, sales 24.2% less than November sales,^ and 3.2% less than December, 1920, sales. The Southern Furniture Exposition opens its mid-winter show at High Point, N. C., on January 16th. More than one hundred and fifty factories are ex pected to place exhibits, and the manufacturers are hoping for a considerable volume of new busi ness as a result of the opening. The reporting firms classified their collections as follows: Lines Sold Good Groceries _________________________ __7 Dry Goods ________________________ __1 Shoes _____________________________ __0 Hardware _________________________ __1 Furniture _________________________ __0 Totals________________________ __9 Fair 19 13 16 10 9 67 Slow 11 3 3 5 4 26 Poor Total 2 39 1 18 0 19 1 17 1 14 5 107 FIGURES ON RETAIL TRADE. As Indicated By Reports from Twenty-Two Representative Department for the Last Six Months of 1921. Stores Percentage of increase (or decrease) in net sales during the month named, 1921, over jame month last year: August September October November December July —18.9 — 5.9 —14.7 — 7.4 Baltimore ________________ _______________________ —16.9 —17.4 — 2.4 — 12.9 — 9.1 — 0.7 Richmond ________________ _______________________ —15.9 — 4.9 — 1.4 —11.8 — 8.0 0.7 Washington ______________ _______________________ — 4.2 — 1.4 — 15.2 —19.8 —12.4 —21.8 Other Cities _____________ _______________________ —10.1 — 8.4 — 16.2 — 5.6 — 11.7 — 9.7 — 13.2 — 4.5 District Average_____ _______________________ Percentage of increase (or decrease) in net sales from July during same period last year Tulv Baltimore ________________ _______________________ — 16.9 Richmond ____ __ ___ ____ _______________________ — 15.9 Washington _____________________________________ — 4.2 Other C itie s ____ :_________ _______________________ — 10.1 District Average_____ _______________________ —11.7 1st, through month named, 1921, over net sales August September October November December — 17.8 — 17.2 — 14.0 — 14.2 —12.5 —11.7 — 8.8 —11.0 — 6.7 — 8.8 — 6.1 — 4.5 — 2.9 — 5.4 — 3.8 — 9.3 —13.0 —13.7 — 15.6 — 15.0 —10.7 —12.7 —10.5 —11.1 — 9.5 Percentage of increase (or decrease) in net sales during the month named, 1921, over net sales during the? immediately preceding month this year: r i August September October November December Baltimore _ _______ ______ _______________________ —37.1 1.6 18.4 43.3 0.5 38.1 R ich m o n d ____ ________ ___ ________________ —29.2 — 7.2 21.4 37.2 — 3.2 61.7 Washington _______________________________ ____ —28.1 — 1.8 2.3 51.3 57.2 — 3.7 Other Cities — _________________________________ —19.5 — 3.9 — 3.3 38.7 64.8 — 5.2 District A v e r a g e __ ________________________ —30.1 — 1.5 9.5 44.4 50.0 — 2.1 Percentage of increase (or decrease) in stocks at close of month named, 1921, year: Tuly August September —21.1 Baltimore ____ ___________ _______________________ —27.8 —26.1 — 13.5 —16.9 —15.0 Richmond __ — .___ _________________ —17.5 W a sh in g to n ------------ _______________________ —23.9 —20.8 —13.8 Other Cities _____________________________________ —17.0 —16.8 —17.9 District A v e r a g e ___________________________ —23.8 —21.9 Percentage o f increase (or decrease) in stocks at ceding month this year: Baltimore _______________________________________ Richmond ______________________________________ Washington _____________________________________ Other Cities _____________________________________ District Average____________________________ over stocks at same date last October November December —18.7 — 8.6 — 4.3 1.6 —11.8 — 3.5 —16.3 — 9.9 — 7.0 — 9.9 — 7.1 —11.8 —15.8 — 8.4 — 5.9 close of month named, 1921, over stocks at close o f preJuly August September October November December 2.4 17.4 —21.9 — 1.7 — 4.2 6.7 15.4 4.8 —20.4 5.4 2.9 — 1.9 11.8 —20.7 0.8 8.9 0.3 — 2.3 —25.2 6.2 — 1.0 17.0 5.2 22 15.3 2.8 — 0.5 —21.8 7.1 — 22 Percentage of average stocks at the close o f each month since July 1st, to average monthly net sales during the same period. August September October November December July 431.6 463.2 475.1 477.9 407.1 350.1 Baltimore _______________ _______________________ 460.2 427.5 459.0 429.5 418.3 346.5 Richmond _______________ _______________________ 481.4 458.3 437.5 420.0 434.8 354.5 Washington _____________ _______________________ 511.5 553.9 534.8 475.6 510.8 529.7 Other C itie s _____________ _______________________ 490.4 449.8 474.3 431.5 453.3 369.3 District Average____________________________ Percentage of outstanding orders at the end o f month named, 1921,, to total purchases o f merchandise during 1920: August September October November December July 5.6 9.8 9.5 7.9 4.4 5.1 Baltimore _______________ _______________________ 12.0 12.7 8.9 12.5 7.4 5.7 Richmond _______________ _______________________ 6.4 5.3 6.9 7.6 3.2 2.8 Washington _____________ _______________________ 9.0 6.3 4.6 9.6 4.5 5.3 Other C itie s_____________ _______________________ 9.2 9.0 7.7 5.7 4.3 4.4 District Average___________________________ — Denotes Decrease. = = = = = = J Confidential reports from twenty-two department stores in leading cities of the Fifth District show a good volume of business during December, 1921. Net sales in dollar value during the month were only 4.5% less than sales during December, 1920, and were 50% greater than sales of the same stores in November, 1921. Cumulative sales from July 1 through December 31, 1921, were 9.5% less than sales during the corresponding six months of 1920. The selling value of stocks on hand at the end of the year was the lowest reported since July 1, 1921, indicating a fair disposal of fall merchandise. The value of stocks on hand at the end of December, 1921, was 5.9% less than at the end of December, 1920, and 21.8% less than at the end of November, 1921. From July 1, through December 31, the average stock on hand at the end of each month was 369.3% of average net sales during the same period. Outstanding orders on December 31, 1921, amounted to 4.4% of total purchases of merchandise during the calendar year 192°. In the table above, we show revised figures for the reporting stores for the last six months of 1921. The figures have previously appeared in our monthly Reviews, but are presented here for easy reference and comparison. BUILDING OPERATIONS FOR THE MONTH OF DECEMBER, 1921 AND 1920. Permit s Issued New Construction CITIES o 1921 1920 M aryland 1 Baltimore................. 298 2 Cumberland.............. 6 3 Frederick.................. 1 Virginia 4 Lynchburg................ 8 5 Norfolk..................... 20 94 6 Richmond................. 7 Roanoke.................... 58 8 Staunton................... 4 West Virginia 42 9 C harleston.............. 12 10 Clarksburg**............ 11 Huntington............... *77 12 Parkersburg............. North Carolina 13 Asheville ................. 38 32 14 Charlotte............ — 15 D urham ................... 28 16 Greensboro ............. 17 17 High Point................ 27 18 Wilmington.............. 12 19 Winston-Salem......... 38 South Carolina 16 20 Charleston................ 21 Columbia.................. 26 22 Greenville................. 18 23 Spartanburg.............. 31 Alterations Repairs New 1921 1920 1921 1920 1921 1920 Increase or Per Cent, of Decrease, Total Increase Valuation or o Decrease fc 213 8 5 622 7 0 632 10 2 4 14 37 *43 5 40 69 19 1 3 28 57 7,700 90,000 872,492 79,365 8,715 126,750 73,095 261,045 *71,040 950 38,848 96,734 8,075 500 3,300 21,734 92,993 121,400— 34,019 615,188 16,400 9,215 38 9 8 8 48,545 29,065 *137,335 86,000 63,110 2,730 2,785 24,350 36,185— *59,770 10,000 20,000 5,000 117,448 272,500 520,892 29,500 76,043 41,000 689,900 32,170 70,400 4,750 174,750 *18,000 21,350 42,100 4.087 32,450 13,695 5,540 300 6,050 13,535 7,050 2,680 1,287 13,776 11,500 9,138 46,570 59,700 19,995 75,510 16,650 14,900 1,900 10,700 <150o 9,794 4,235 6,120 9,990 10,940 3,590 4,400 287 2,012,807 104,780 369,810 *52 18 6 2 36 *14 10 11 24 12 8 5 11 4 11 10 1 3 ....... 5 60 46 10 2 5 11 17 63 16 27 53 308 12 47 7 13 $820,900 $ 989,450 $ 332,160 $ 302,000 $ 138,390— 10.7— 1 16,700 2,675 16,350 1,152 1,173— 6.2— 2 2,550 3 600,000 23,000 0 2,248.3 574,450 77,565 91,000 4 5 6 7 8 93 3— 35.9 173.8 23.1 41.4— 9 10 129 8 11 606.7 12 209.9 82,315 231,870 317.3 8,755.2 528,550 153,486— 81.4— 58,343 324.1 43.2 14,200 1,272.9 652,197 13 14 15 16 17 18 19 27,435 43,654 18,740 66, 530 103.0 168.9 341 3 440.6 20 21 22 23 194,368 2,083,469 696.5 24 D is t . o r C olum bia 24 Washington.............. 244 T otals........... 1135 592 1,321 1,188 16,729,617 $2,206,060 $ 974,270 $ 723,321 $4,774.506 •Includes both new work and repairs. **Clarksburg, W. Va. not included in totals. 163 0% —Denotes decrease. Building permits for new construction issued in twenty-three cities of the Fifth District dur ing December, 1921, show a continuation of the seasonal decline which began in November. The twenty-three cities reported 1,135 permits for new work in December, 1921, in comparison with 592 permits in December, 1920, with total estimated valuation of $6,729,617 for December, 1921, and of $2,206,060 for December, 1920. These figures show for the 1921 month an increase of 91.7% in number of new permits issued and of 205.1% in total valuation. In alterations or repair work, the gain during December, 1921, over December, 1920, was not so pronounced, the number of alteration or repair permits having increased 11.2% and the valuation of the work 34.7%. Combined valuation for both new construction and repairs or alterations during December, 1921, totaled $7,703,887, compared with $2,929,381 during December, 1920, an increase of 163%. On the last page of this Review is presented a chart showing in graphic form the total number of permits for new construction issued in the same twenty-three cities in the Fifth District, by months, for 1919, 1920 and 1921. NEW CONSTRUCTION WORK IN TWENTY-THREE CITIES DURING 1919, 1920 AND 1921. The chart shown herewith pictures the total number of building permits issued in twentythree of the leading cities in the Fifth District, by months, during the past three years. Because of wide fluctuations in building costs during 1919, 1920 and 1921, the actual number of permits issued more accurately represents the new construction than total valuation figures would do. The chart shows the crest of the building movement during the three years under discussion in June, 1919, but from that time to the end of the year each month except October witnessed a sharp decline in the number of permits issued. The first five months of 1920 exceeded the cor responding months of 1919, but beginning with May, there was hesitation in contracting for new work, and from June through December fewer permits were issued each month than during the cor responding months of the previous year. In the fall of 1920, however, it became increasingly evident that there was an acute shortage of dwellings, and various organizations began agitating the build ing of homes. Shortly after the beginning of 1921 the number of permits issued began increasing, and during March exceeded the number issued either during March 1919 or 1920. Every month thereafter witnessed a larger number of permits for new work than the corresponding months of 1920, and all months except June and July witnessed a larger number than the corresponding month of 1919. The average number of permits for new construction issued in 1919 was 1,394 per month. The average number in 1920 was 1,074 per month. The average number in 1921 was 1,430 per month, an increase over the 1919 average of 2.5% and over the 1920 average of 33.1%. If the figures from Baltimore, in which there was a building boom during 1919, were excluded, the 1921 figures would show an even greater gain over the two preceding years. (Compiled as o f January 14, 1922.)