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MONTHLY REVIEW BUSINESS AND AGRICULTURAL CONDITIONS WILLIAM W. HOXTON, CHAIRMAN AND FEDERAL RESERVE AGENT RICHMOND, VIRGINIA Business in December, while not exceptionally good in the Fifth Reserve District, was up to sea sonal average, and on the whole compared favorably with December 1922, notwithstanding a year ago the country appeared to be entering a boom period. Business men of all classes are trading more cau tiously now than they did a year ago, but they are apparently buying what they need and a large volume of trade is going on. Condition reports of member banks in leading cities in the Fifth District show some increases in loans and rediscounts outstanding in comparison with January 1923, but indicate continued ability on the part of the banks to care for all legitimate needs of their customers. Deposits show a substan tial increase during the past month and are much larger than they were a year ago. The Reserve Bank’s ratio of cash to deposit and note liabilities combined is approximately the same as at this time last year. Debits to individual accounts show a larger total for the four weeks ending January 9, 1924, than for the corresponding four weeks ending January 10, 1923, and debits for the year 1923 con siderably exceeded those for 1922. Business failures were fewer in number in the Fifth District in De cember than in December 1922, and during the en tire year the District made a better record than the national average. Labor continues to be fully and profitably employed, and the reports of the various industries indicate that the supply and demand will remain fairly balanced for at least the next few months. Coal is plentiful, and soft coal is much cheaper than it was during the winter of 1922-1923. Textile mills are suffering from a scarcity of orders, but the mills in the Fifth District have not mate rially curtailed their operating time. During De cember Fifth District mills used 39.4% of the cot ton consumed in the United States. Cotton prices have recently shown some declining tendency, but are still around $50 a bale above the same period a year ago, and the yield in the District last fall was 35 -9 % greater than the 1922 crop. Building opera tions, especially of residences and apartments, con tinue in unusually large volume for this season of the year, and contractors are making extensive plans for spring work. Retail trade in December was some what slow on staple goods, due chiefly to the un seasonably mild weather, but a large volume of holi JANUARY 31, 1924 day business was done, and sales in the leading de partment stores exceeded December 1922 sales. Wholesale trade was seasonally dull, but was up to the average for the closing month of the year, and collections were better than in recent months. Busi ness in W est Virginia is slower than in other sec tions of the District because of a lack of orders for bituminous coal, but outside of that state, conditions are satisfactory. In writing our summary of conditions a year ago, in the Review dated January 31, 1923, we stated that the chief dark spot in the District was in South Carolina, in which state ravages of the boll weevil had cut the cotton crop to less than half the state’s usual production, but at the same time we called attention to the efforts being made by a few of the state’s leading farmers and others to overcome the pest. W e are glad to report this year that the e f forts put forth bore abundant fruit, and South Carolina has made a splendid recovery. The 1923 cotton crop was increa$etl:to.^5,eop#bales, a gain of 302.000 bales o.ver*»the i^|Ip'C^^ct/©rit ..The tobacco crop of ths^tejt^jfecreased from*3zp,45®^o# o pounds in 1922 ^j|yp6o,ooo pounds in 1923; forivppoduction incrM^ecl froiti 29,^95^00.bu ilds .£0 32,t5fjojooo bush£i§*>/ wheat pro<Jije£i$tf Ff&m 1,32^09*0 bu£lifcB^to 1,925,000 TDUsfiefs f the*o*af yfeld grew 9,^?W>oo b«shql§ .to 10,^28^000 bushelsj the Irish* • potato cro^* tn^ised*\fio 1pt!#45 oKtilQ;b^hels to 3.136.000 busfie?^; .rofe from 27.360.000 pounds to 32,300,000 pounds. Satisfac tory prices were received for practically all of the crops, especially for cotton and tobacco, and as a re sult a large volume of the frozen indebtedness we mentioned last year has been liquidated, farmers generally have gotten on their feet again, and mer chants have enjoyed a good volume of business all fall and winter. The successful efforts made during 1923 to raise cotton under boll weevil conditions has given new encouragement to the individual farmer, a psychological effect which reaches throughout the state and which promises well for the future. In the arduous task of combating the weevil, the influ ence of the newspapers was of incalculable value. They gave space freely to constructive ideas advanced by farmers and scientists, and many of them went to considerable trouble and expense in employing ex perts to write articles bearing upon the problems of agriculture. CONDITION OF SEVENTY-SIX REPORTING MEMBER BANKS IN SELECTED CITIES. an. 9, 1924 ITEMS Total Loans and Discounts (including all rediscounts) ................................. Total Investments in Bonds and Securi ties ....................................................... Total Loans and Investments.......... ........ Reserve Balance with Federal Reserve Bank.............. Cash in Vaults.... Demand Deposits Time Deposits.... Borrowed from Federal Reserve Bank.. 472,921,000 Dec. 5, 1923 ’$ 463,140,000 Jan. 10, 1923 $ 447,126,000 127,991,000 600,912,000 126,904,000 590,044,000 128,113,000 575,239,000 37,288,000 15,028,000 353,950,000 152,834,000 30,870,000 37,084,000 15,485,000 347,170,000 150,679,000 31,780,000 36,962,000 14,735,000 343,930,000 147,130,000 22,803,000 In the accompanying table we show the principal items of condition reported by seventy-six identical member banks on three dates, January 9, 1924, December 5, 1923, and January 10, 1923, thus affording an opportunity for comparing the totals reported for the latest date with those reported for the previous month and on the corresponding date a year ago. A ll of the items are comparable for the three dates. During the month between December 5, 1923 and January 9, 1924, total loans to customers in the report ing banks increased from $463,140,000 to $472,921,000, an increase being usual at the end of the year when many people meet their holiday needs by borrowing for a month or two. Investments in bonds and stocks in creased during the month from $126,904,000 to $127,991,000. Both demand and time deposits rose between December 5th and January 9th, demand deposits increasing from $347,170,000 to $353,950,000, and time de posits rising from $150,679,000 to $152,834,000. These gains are partly due to the increased volume of out standing loans to customers previously mentioned and the transactions which resulted therefrom, and partly to the depositing of dividend and interest checks soon after the opening of the year. Reserve balances car ried by the reporting banks at the Reserve Bank increased slightly during the month under review, rising from $37,084,000 to $37,288,000. A s a result of the decreased demand for cash after the passing of the holiday season, cash in vaults declined from $15,485,000 to $15,028,000 between December 5th and January 9th, and a continuation of crop marketing enabled the reporting member banks to reduce the volume of their rediscounts at the Reserve Bank from $31,780,000 to $30,870,000. It is interesting to compare the figures reported January 9, 1924, with those reported on January 10, 1923. This comparison is not intended to convey the idea that there were steady increases or decreases in the several items during the year, but it does show the relative resources and liabilities on the corresponding'dates of the two years, and indicates the net results of the year’s operations. Total loans to customers amounted to $472,921,000 on January Q , J924 compared with $447,126,000 on January 10, 1923, and as a result of this increased den^n^#f©f*^Q<|i^»orrgwing by the reporting banks at the Reserve Bank totaled $30,870,000 on January total of $22,803,000 on January 10th last year. Investments in bonds and j^ck$**.cf?ahged very little,#*srfartdm^ at $127,991,000 on January 9, 1924 compared with $128,113,000 on Janu9*y\i(5* 1923. Demand deposits*a3jrfopI>ted to $353,950,000 on January 9, 1924 and to $343,930,000 a year agoC&ftd tim^ fteppsifc afrjqCtfified Jo $15^,343^00 and $147,130,000 on the same two dates, respectively. Re, strife balance’*vv$i tfoS. ?§diy 3aj J8-£serve B£rtkfcVhich stood at $37,288,000 on January 9th this year, amounted ^^$36,962,000 on January 10, 1923, and ca$f*m .Vaults totaled $15,028,000 on January 9th compared with *^14,735 jDOp.op^the ccuises^ondingjckjte*^ je a r ago. * ' RESERVE BANK OPERATIONS During the five weeks between December 12, 1923 and January 16, 1924, Cash Reserves held by the Federal Reserve Bank of Richmond declined from $122,161,621.50 to $115,880,013.96. Federal Reserve Notes in Actual Circulation declined between the same dates from $105,205,365 to $92,701,420, and the volume of rediscounts held by the Bank fell from $53,752,150.35 to $45,696,304.90. On the other hand, Member Bank Reserve Deposits increased during the five weeks from $63,519,458.03 to $64,369,279.09. A s a result of the changes mentioned, the ratio of cash reserves to combined note and deposit liabilities rose from 71.80% on December 12th to 72.36% on January 16th. Comparing the figures for January 16, 1924 with those for January 17, 1923, it is remarkable that such slight differences are shown, since between the two dates business reached unprecedented heights and perhaps the greatest volume in history was transacted. Cash Reserves on January 16, 1924 amounted to $115,880,013.96 compared with $114,386,915.75 on January 17th last y ea r; Federal Reserve Notes in Actual Circulation this year totaled $92,701,420 compared with $92,103,795 in January 1923; Member Bank Reserve Deposits totaled $64,369,279.09 on January 16, 1924 compared with $61,769,090.07 a year ago; and Rediscounts for member banks totaled $45,696,304.90 in comparison with $37,861,697.98 on the corresponding date in 1923. The re serve ratio of cash to combined note and deposit liabilities was 72.36% on January 16th this year compared with 73.87% on January 17th last year. 2 SAVINGS BANK DEPOSITS Total deposits in the fifteen regularly reporting mutual savings banks in Baltimore increased during De cember, reaching at the end of. that month the highest figure reported for any date since the Reserve Bank began tabulating savings deposits in January 1920. On December 31, 1923, the combined deposits in the fifteen banks amounted to $140,660,507, compared with totals of $132,253,796 on December 31, 1922, $124,287,362 on December 31, 1921, and $121,238,025 on December 31, 1920. The December 1923 total shows an increase of 6.4% over deposits a year ago and a gain of 16.0% over deposits in December 1920. DEBITS TO INDIVIDUAL ACCOUNTS IN LEADING TRADE CENTERS TOTAL DEBITS FOR THE FOUR WEEKS ENDING CITIES Asheville, N. C........... Baltimore, Md............. Charleston, S. C......... Charleston, W . V a..... Charlotte, N. C.......... Columbia, S. C........... Cumberland, Md........ Danville, V a................ Durham, N. C.............. Greensboro, N. C....... Greenville, S. C......... Hagerstown, Md....... Huntington, W . Va.... Lynchburg, V a............ Newport News, Va.... Norfolk, V a.................. Raleigh, N. C............. Richmond, V a............. Roanoke, V a ................ Spartanburg, S. C..... Washington, D. C..... Wilmington, N. C.... . Winston-Salem, N. C. Totals........................ Jan. 9, 1924 $ 21,412,000 358.200.000 29.383.000 36.085.000 45.011.000 28.495.000 8.487.000 11.798.000 20.450.000 22.282.000 28.300.000 9.611.000 25.079.000 20.442.000 6.757.000 74.160.000 28.599.000 132.393.000 24.154.000 12.404.000 178.721.000 21.657.000 28.342.000 $1,172,222,000 Dec. 12, 1923 Jan. 10, 1923 $ $ 20,391,000 337.735.000 29.897.000 34.213.000 44.383.000 22.058.000 8.649.000 12.989.000 21.614.000 24.374.000 26.575.000 10.026.000 24.818.000 19.257.000 8.542.000 93.110.000 28.840.000 144.633.000 24.166.000 13.012.000 181.559.000 23.869.000 29.771.000 $1,184,481,000 17,346,000 360.090.000 24.456.000 39.226.000 36.603.000 22.554.000 7.987.000 12.247.000 18.005.000 19.884.000 18.300.000 8.715.000 27.428.000 23.069.000 7.146.000 66.338.000 32.100.000 134.170.000 22.928.000 10.287.000 181.891.000 21.931.000 30.992.000 $1,143,693,000 ANNUAL TOTALS** 1923 $ 259,243,000 4.508.542.000 352.698.000 455.846.000 492.377.000 293.327.000 108.912.000 120.445.000 235,817,000* 267.789.000 283.354.000 124.549.000 316.948.000 246.291.000 90,727,000 887.150.000 363,621^000 1.572.851.000 290.182.000 142.927.000 2.316.443.000 253.217.000 377.998.000 $14,125,437,000 1922 $ 213,849,000 4.333.915.000 297.862.000 393^348,000 377.394.000 262.462.000 95.466.000 116.245.000 206.837.000 199.524.000 101.179.000 248.733.000 220.704.000 84.547.000 792.889.000 259.459.000 1.405.410.000 262.664.000 110.217.000 2.151.437.000 252.843.000 320.895.000 $12,707,879,000 *Not included in Annual totals. **Figures shown for 1922 run from December 29, 1921 to December 27,1922, and those shown for 1923 run from December 28, 1922 to December 26, 1923, all dates inclusive. A s is our monthly custom, we show in the accompanying table total debits in the clearing house banks in twenty-three of the chief trade centers of the Fifth District during three equal periods of four weeks, ending on January 9, 1924, December 12, 1923, and January 10, 1923, thus affording an opportunity for comparing the latest four weeks period with (1) the preceding period and (2) the corresponding period last year. In addition to the figures for the four weeks periods, we show this month total debits for each reporting center during the years 1923 and 1922. During the four weeks ending January 9, 1924, aggregate debits in the twenty-three centers amounted to $1,172,222,000, compared with $1,184,481,000 reported for the four weeks ending December 12, 1923, a de cline of $12,259,000 during the month. This decline is seasonal, reflecting the large volume of holiday buying done previous to December 12th and the comparatively small volume of business done between Christmas and New Y ear’s. The four weeks ending January 9, 1924, with total debits of $1,172,222,000, show an increase of $28,529,000 over the total of $1,143,693,000 reported by the same cities during the four weeks ending January 10, 1923, twelve cities showing higher figures this year and eleven showing lower totals. The largest gains are shown in cotton centers, while the tobacco centers and coal centers show decreases, due to lower prices for tobacco and a lessened demand for coal in comparison with the corresponding period a year ago. The annual figures are complete for both years from all the reporting centers except Durham, N. C., which did not begin reporting until about the middle of 1922. Every individual city shows a higher total for 1923 than for 1922, indicating clearly the greater volume of business transacted in the District during the year just closed in comparison with the preceding year. I BUSINESS FAILURES IN THE TWELVE FEDERAL RESERVE DISTRICTS DECEMBER, 1923 AND 1922. 1923 1922 Per Cent Increase or Decrease 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 157 382 109 155 98 94 234 96 93 96 148 179 148 407 73 117 108 109 257 84 94 63 129 225 6.1 — 6.1 49.3 32.5 — 9.3 —13.8 — 8.9 14.3 — 1.1 52.4 14.7 —20.4 Totals........................................... 1,841 1,814 Number City and District 1.5# Liabilities 1923 1922 $ 2,149,587 18,710,337 2,272,823 3,006,938 7,413,606 1,370,250 5,148,003 1,954,500 2,842,381 2,199,495 2,046,743 2,500,067 $ 1,610,876 9,879,829 4,267,289 3,519,347 11,236,262 1,576,358 9,075,862 897,491 1,224,152 7,558,136 2,118,607 5,104,812 $ 51,614,730 $ 58,069,021 Per Cent of Increase or Decrease 33.4# 89.4 - - 46.7 — 14.6 — 34.0 — 13.1 — 43.3 117.8 132.2 — 70.9 — 3.4 — 51.0 11.1# j Business failures in the twelve Federal Reserve Districts totaled 1,841 in December 1923, with combinecjl liabilities of $51,614,730, compared with 1,814 failures in December 1922, with liabilities amounting t i $58,069,021, an increase in number of 1.5% and a decrease in liabilities of 11 .1 % during the more recent month. The number of failures and the liabilities involved in the December 1923 failures were both greater than in November, but an increase at the end of the year is a usual development. During 1923 the lowest number of failures during any month was 1,226 reported for September, and the lowest amount of liabilities was $28,673,276 reported for June. The month of January 1923, with 2,126 failures, led the year in number and October, with liabilities of $79,301,741, led in liabilities. Total bankruptcies in the United States during 1923 numbered 18,718, with liabilities amounting to $539,386,806, compared with 23,676 bankruptcies in 1922, with aggregate liabilities of $623,896,251. The liabilities in 1923 were swelled by many large insolvencies, not a few of them involving several million dollars in each instance. Dun’s Review states that 69.8% of the 1923 failures occurred among traders, 26.5% represented manufacturers, and 3.7% agents, brokers, and similar interests that cannot be properly classified as either traders or manufacturers. In commenting upon the year’s insolvency record, Dun’s Review states that relatively the best exhibit is made by the South Atlantic states, with a decline of 35.8% in the number of bankruptcies in comparison with the number reported in 1922. The states included in the Fifth District are included in the group of South Atlantic states covered by the above statement. In the Fifth Reserve District, failures in December 1923 numbered 98, with liabilities of $7,413,606, com pared with 108 failures reported in December 1922, with liabilities of $11,236,262, indicating declines in December 1923 of 9.3% in the number of insolvencies and of 34.0% in the aggregate liabilities involved. During the year 1923 total defaults in the Fifth District numbered 1,206, with liabilities amounting to $36,403,775, compared with 1,847 defaults with liabilities amounting to $46,617,428, a decrease of 34.7% in the number of failures during 1923 and a decline of 21.9% in the aggregate of liabilities involved. The average liability per failure in December 1923 was $75,649 in the Fifth District and $28,036 in the nation as a whole, compared with average liabilities in December 1922 of $104,040 in the Fifth District and $28,704 in the nation. LABOR— Nothing of particular interest has developed in labor circles since our last month’s Review was written. The demand for common labor has declined to some extent with the coming of cold weather, but there has not been enough change to cause any appreciable amount of unemployment. Skilled workmen are about as much in demand as during the past several months, enabling all workers to secure steady em ployment. Practically all the manufacturing establishments in the Fifth District are running full time, and are consequently using their normal quota of workers. No changes in wage scales have been reported during recent months. Farm labor continues scarce, the farmers being unable to offer wages that will compare with wages paid by road builders, street and sewer contractors, and builders in other lines, and in addition many workers, especially among the younger ones, prefer residence in the cities and towns on account of the greater opportunity offered for recreation and social activities. This preference for city life is as marked among the negroes as among the white population. COAL— The Department of the Interior, through the Geological Survey, states that the total produc tion of bituminous coal during 1923 was approximately 545,300,000 tons, an increase of more than 29 per cent over the 1922 production. In only three years— 1920, 1918 and 1917— has production exceeded that of 1923, and it is possible that when final figures for the year are checked 1923 will have exceeded 1917. A s a result 4 of the arrival of some severe weather, demand for coal picked up distinctly during the second half of Decem ber, and mines were enabled to increase working time to an appreciable degree. The Fairmont, Pocahontas, Tug River and Kanawha districts in W est Virginia reported particularly notable increases. Despite the im proved market conditions, however, lack of demand remains the dominant factor limiting production, in com parison with which all other factors are at present of little importance. No transportation troubles are re ported from any of the coal regions. The Geological Survey states that the year 1923 was remarkable for the steadiness with which production of soft coal was maintained during the spring and summer. Consumers pur chased heavily for storage during the summer, largely because the strike of 1922 had depleted stocks below a comfortable reserve. The year’s production of anthracite coal in 1923 is estimated between 95,500,000 and 95,650,000 net tons, an increase of approximately 74 per cent over the 1922 production, and but 3,000,000 tons behind 1918, the record year. O f course the great increase in 1923 production in comparison with 1922 is due to the long strike during the summer of 1922. A ll retail coal dealers have plentiful stocks of dency to decline in certain localities of the F ifth not plentiful, but dealers have been able to secure Prices of anthracite are more nearly up to the level soft coal in their bins, and prices have shown some ten District during the past month or two. Anthracite coal is sufficient to meet the pressing needs of their customers. of 1922 than prices of bituminous. TEXTILES— Textile mills in the Fifth District continue to find forward orders hard to secure as a result of reluctance on the part of jobbers and retailers to commit themselves until they can discover the con sumer’s attitude toward higher prices for cotton goods manufactured from higher priced raw material. Most of the mills used the opportunity offered by the Christmas holidays to close down from a week to ten days, but aside from this shut-down not very much curtailment in operations has been reported in the Fifth Dis trict. Cotton consumption figures gathered by the Bureau of the Census indicate that running time in December was fully equal to running time in November, except for Christmas week, the number of bales consumed in the three cotton manufacturing states in the District in December being only 13% less than the number of bales used in November. North Carolina mills consumed 94,202 bales in December, South Carolina mills used 80,509 bales, and Virginia mills used 7,331 bales, a total of 182,042 bales in comparison with 209,399 bales consumed in November 1923 and 184,253 bales consumed in December 1922. The Fifth District consumption during December amounted to 39.4% of national consumption. COTTON— The cotton market fluctuated rather widely during the past month, but on the whole the fluctuations tended to balance, and little net change resulted. In our Review last month we quoted 33.64 cents per pound as the average price for spot cotton in the Carolinas during the week ending December 8th. The following week, ending December 15th, the average price declined to 33.12 cents per pound and during the week ending December 22nd sank to 33.01 cents. The week ending December 29th witnessed a distinct recovery, however, the average price climbing to 34.10 cents. Part of this recovery was lost during the week ending January 5th, the average declining to 33.50 cents, but the week ending January 12th witnessed a rise to an average of 33.80 cents. On January 15th, the Census Bureau gave out the cotton consumption figures for December. The report showed 461,560 bales consumed in December, in comparison with 531,631 bales consumed in November 1923 and 527,945 bales in December 1922. Total consumption for the season to date, August 1st to December 31, 1923, amounted to 2,510,472 bales, compared with 2,662,204 bales consumed during the corresponding five months of 1922, notwithstanding the much higher prices which have prevailed. Cotton on hand in consuming establishments at the end of December 1923 amounted to 1,623,453 bales, compared with 1,438,818 bales on November 30, 1923 and 1,921,295 bales on December, 31, 1922. Public warehouses and compresses held 3,526,164 bales on December 31st, in comparison with 3,770,542 bales so held on November 30, 1923 and 4,074,945 bales on December 31, 1922. Imports during December totaled 35,601 bales, compared with 16,564 bales imported in November 1923 and 68,547 bales in December 1922. Exports in December amounted to 845,581 bales, compared with 770,002 bales in November 1923 and 607,853 bales in December 1922. The five months since August 1st witnessed the exportation of 3,323,951 bales, compared with 2,906,052 bales ex ported during the corresponding five months of 1922. The latest available ginning report was released by the Census Bureau on January 9th, and reported ginnings of 9,807,138 bales previous to January 1st. This figure was higher than the trade had expected and had a depressing effect on the market, but this feeling has been partially, if not wholly, removed as a result of higher consumption figures for December than were looked for. TOBACCO— The monthly tobacco sales report issued under the authority of the Virginia Commissioner of Agriculture states that 12,230,972 pounds of bright tobacco were sold in December, for an average of $20.03 Per hundred pounds, in comparison with 8,232,013 pounds sold in December 1922, for an average price of $28.77 Per hundred pounds. Danville led the bright markets in both number of pounds handled and aver 5 age price paid, selling 6,276,706 pounds for an average of $22.95 Per hundred during the month. Dark tobacco sales aggregated 6,059,199 pounds, for an average of $16.49 Per hundred, compared with 6,895,461 pounds for an average of $18.90 per hundred sold in December 1922. Lynchburg, with sales of 2,193,866 pounds, led the dark markets in volume of sales, but Bedford’s average of $18.25 per hundred was the highest average price. Total producers' deliveries to January 1, 1924, amounted to 87,852,510 pounds, of which 48,185,732 pounds were sold by auction warehouses and 39,666,778 pounds turned over to the Tobacco Grow ers Association. The total amount of tobacco that has been marketed is 61.4 per cent of the estimated pro duction for the year, while 62 per cent of the 1922 crop was marketed before the end of that year. December sales graded 21 per cent good, 37 per cent medium and 42 per cent common, compared with 1922 gradings of 30 per cent good, 39 per cent medium and 31 per cent common. These figures show clearly the inferior qual ity of the 1923 crop, and account for the comparatively low average price realized during December. In North Carolina, producers’ sales of tobacco in December totaled 45,313,838 pounds at an average of $20.28 per hundred pounds, compared with 17,617,152 pounds sold in December 1922, at an average of $28.24. The 1923 crop in North Carolina is estimated to be 50 per cent greater than the 1922 crop, but the quality of the 1923 crop is distinctly inferior to that of the previous year. Wilson led in sales in December with a total of 10,398,656 pounds, but Durham, with an average of $23.26 per hundred pounds, led in prices. Previous to January 1st the auction warehouses sold 262,233,695 pounds of the 1923 crop of 386,000,000 pounds, the average price for the season having been approximately $21.40 per hundred pounds. Very little of the North Carolina crop remains in the hands of producers, a large part of the 124,000,000 pounds not accounted for in the above figures having been delivered to the Cooperative Association. The Tobacco Growers Cooperative Association reports total deliveries by members in the Carolinas and Virginia previous to January 1, 1924, amounting to 118,267,149 pounds, of which 34,441,818 pounds were re ceived in the South Carolina belt, 23,804,430 pounds in the Eastern North Carolina belt, and 60,020,901 pounds in the Old Bright Leaf North Carolina-Virginia belt. AGRICULTURAL YIELDS, 1923 AND 1922— In order that our readers may have comparative fig ures in convenient form for the states comprising the Fifth Federal Reserve District, we are including a table herewith showing the yields of the principal crops in the several states, giving figures for 1923 and 1922. The figures are taken from official national and state agricultural department reports and represent the latest estimates on yields. Crop Corn (bu.) Wheat (bu.) Oats (bu.) I. Potatoes (bu,) S. Potatoes (bu.) Tobacco (lbs.) Cotton (bales) Peanuts (lbs.) H ay (tons) Apples (bu.) Sorghum (gals.) Year 1923 1922 1923 1922 1923 1922 1923 1922 1923 1922 1923 1922 1923 1922 1923 1922 1923 1922 1923 1922 1923 1922 Maryland 25,231,000 25,680,000 10,426,000 9 >537 >000 1,758,000 1,740,000 3,920,000 5,151,000 1,170,000 1,530,000 19,008,000 20,020,000 420,000 658,000 2,300,000 1,500,000 West Virginia 20,128,000 20,536,000 2,964,000 2,760,000 4,704,000 4,600,000 5,880,000 4,851,000 390,000 402,000 7,740,000 7,425,000 915,000 1,050,000 8,320,000 5,625,000 872,000 840,000 Virginia 53.563.000 52,248,000 11,145,000 10,375,000 3,586,000 3,320,000 14,136,000 16,585,000 5,280,000 6,210,000 134,680,000 156,750,000 50,000 27,000 122,760,000 78,000,000 1,009,000 1,300,000 9,800,000 8,960,000 1,140,000 1,222,000 North Carolina South Carolina 56,868,000 32,670,000 50,240,000 29 >399 >°°° 6,038,000 1,925,000 5,400,000 1,320,000 5,082,000 10,728,000 4,620,000 9,744,000 3,956,000 3,136,000 4,700,000 2,508,000 10,500,000 9,118,000 12,430,000 9,568,000 386,400,000 74,460,000 252,500,000 54,400,000 1,020,000 795,ooo 852,000 493,ooo 162,800,000 32,300,000 121,800,000 27,360,000 1,040,800 413,000 1,140,000 461,000 2,700,000 6,000,000 2,644,000 1,640,000 2,940,000 1,743,000 BUILDING OPERATIONS FOR THE MONTHS OF DECEMBER, 1923 AND 1922. Building permits issued in twenty-five leading cities in the Fifth District during December were fewer in number than in either November 1923 or December 1922, and December valuation figures were also lower than in either of the two months mentioned. Building inspectors reported a total of 1,245 permits for new work issued in December 1923 with total valuation of $9,712,922, compared with 1,366 permits issued in De cember 1922 with estimated valuation of $13,763,678. Most of the decreases are due to some decrease in building activity in the largest cities, especially in Baltimore and Washington, and to a lesser degree in Rich- 6 Permits Issued New Construction New CITIES 0 1923 1922 Z MARYLAND 1 Baltimore............. 2 Cumberland......... 3 Frederick.............. VIRGINIA 4 Lynchburg............ 5 Norfolk................. 6 Richmond............. 7 Roanoke............... WEST VIRGINIA 8 Bluefield............... 9 Charleston............ 10 Clarksburg........... 11 Huntington........... 12 Parkersburg......... NORTH CAROLINA 13 Asheville............... 14 Charlotte............... 15 Durham................ 16 Greensboro........... 17 High Point........... 18 Raleigh................... 19 Wilmington...... 20 Winston-Salem..... SOUTH CAROLINA 21 Charleston............. 22 Columbia.............. 23 Greenville............. 24 Spartanburg......... DIST. OF COLUMBIA 25 Washington.......... Totals Cent Increase or Perof Decrease Increase Total or Valuation Decrease Alterations Repairs 1923 1922 1922 1923 576 $ 2,971,920 $ 5,607,660 8 78,280 21,110 1 10,600 200 1923 1922 0 Z $ 312,120 $—2,290,620 — 38.7 fo 1 4,475 61,984 242.3 2 2,000 8,400 381.8 3 308 32 7 450 15 1 593 6 0 14 67 116 62 15 45 118 60 17 38 62 25 29 43 66 13 22,525 118,017 1,015,335 119,635 13,375 115,095 1,821,110 2,925 8,130 34,375 122,544 18,851 9,160 34,790 133,601 133,405 8,120 36.0 2,507 1.7 — 816,832 — 41.8 2,156 1.6 4 5 6 7 19 25 12 79 *13 12 44 11 65 0 27 3 16 *10 1 16 9 12 156,355 133,438 11,950 213,715 36,500 30,950 207,550 15,925 83,495 150,000 0 38,775 725 81,065 1,965 1,000 11,310 10,815 4,175 25,000 124,405 389.4 46,647 — 21.3 14,065 — 52.6 207,110 236.2 — 136,535 — 78.1 8 9 10 11 12 22 27 29 68 25 45 17 39 32 28 21 21 41 22 **17 26 34 3 4 19 9 2 6 56 16 5 4 8 6 0 216,409 160,570 38,000 93,154 93,015 184,500 ** 62,500 49,295 41,811 2,000 63,350 16,051 6,020 450 7,000 10,688 6,087 4,050 6,650 6,888 7,550 0 49 200,009 240,535 59,100 505,084 79,860 273,366 346,000 120,050 13,995 19,324 8.7 77,915 47.3 77,800 174.2 421,093 420.9 — 14.685 — 14.6 89,316 48.4 290,500 464.8 67,448 106.6 13 14 15 16 17 18 19 20 6 15 12 22 6 30 23 25 8 33 12 16 9 65 7 24 51,207 24,775 36,500 45,611 9,450 185,000 61,460 27,277 2,075 8,440 4,875 10,410 4,725 10,177 11,445 4,510 39,107 275.9 — 161,962 — 83.0 — 31,530 — 43.2 24,234 76.2 21 22 23 24 177 238 296 338 2,842,555 4,513,653 428,525 640,857 —1,883,430 — 36.5 25 1,245 1,366 1,285 1,305 $ 9,712,922 $13,763,678 $1,574,654 *Not included in totals. $ 657,240 9,289 0 — — $1,398,785 $—3,874,887 — 25.6<fo **Includes both new work and repairs. mond. Repair and alteration permits numbered 1,285 in December compared with 1,305 permits for the same class of work issued in December 1922, but valuation in December 1923 was $1,574,654 compared with $1,398,785 in December 1922. Total valuation for both new and repair work amounted to $11,287,576 in Decem ber 1923 compared with $15,162,463 in December 1922, the 1923 month showing a decrease of 25.6 per cent. During 1923 a total of 22,945 permits for new construction was issued in the reporting cities, compared with 21,245 permits issued in 1922, a gain of 1,700 permits for 1923, or 8.0 per cent. Valuation figures for new work totaled $145,488,354 in 1923 compared with $133,296,220 during the previous year, an increase of $12,192,134, or 9.1 per cent. The monthly reports received from building inspectors indicate that residence construction was more active in 1923 than in 1922, while important business and industrial projects were fewer. The preceding year had witnessed a building boom that was featured by a revival of building for business and industrial uses, however, and therefore some decline in that special type of construction was natural in 1923. A ll authorities agree that the outlook for construction work during 1924 is good, and contractors are mak ing plans for a large volume of spring work. In spite of the large number of residences built in 1922 and 1923, there is still a distinct shortage of small and medium sized dwellings, and present rent levels make the construction of such structures profitable. Money is not difficult to secure on mortgages and cheap and medium priced houses find ready sale if located in desirable sections. FIGURES ON RETAIL TRADE As Indicated by Reports from Twenty-seven Department Stores in the Fifth Reserve District for the last Six Months of 1923 December retail trade wras rather dull in staple lines, but the volume of holiday business was excellent, total sales running 4.8% above December 1922 and 5.5% above the average sales for December 1920, 1921 and 1922. From July 1st through December the reporting stores sold 6 .1% more goods than during the last six months of 1922. Stocks on hand were 5.5% larger in dollar value at the end of December 1923 than on 7 the same date in 1922, but were 20.4% less valuable than at the end of November 1923. The percentage of average stocks carried during the past six months to average monthly net sales during the same period was 373-7% , and outstanding orders on December 31, 1923 amounted to 4.4% of total purchases of merchandise during the calendar year 1922. Percentage of increase (or decrease) in net sales during the month named, 1923, over same month in 1922: Baltimore..................................................... ............ ........ Richmond..................................................... .................... Washington................................................. .................... Other Cities................................................. ...................... District Average............................... ...................... July 7.3 51.4 3.4 12.1 10.6 August 1.4 8.1 7.7 10.9 5.6 Sept. — 1.7 3.7 — 1.1 6.9 0.1 Oct. 6.4 23.8 15.7 12.6 12.1 Nov. Dec. 1.1 12.0 9.4 5.1 6.6 6.2 7.1 4.8 4.2 1.1 Percentage o f increase (or decrease) in net sales from July 1st, through month named, 1923, over net sales during same period in 1922: Baltimore..........................................:......... .................... Richmond..................................................... .................... Washington................................................. .................... Other Cities................................................. District Average.............................. ...................... July 7.3 51.4 3.4 12.1 10.6 August 4.2 28.0 5.5 11.5 8.1 Sept. 1.8 18.4 3.0 9.8 4.9 Oct. 3.4 Nov. 2.8 Dec. 2.4 15.6 20.1 18.1 7.2 10.7 7.4 6.6 6.6 9.6 6.5 8.9 6.1 Percentage of increase (or decrease) in net sales during the month named., 1923, over average sales during the corresponding months of 1920, 1921 and 1922: Baltimore.................................................... .................... Richmond.................................................... .................... Washington.................................................. .................... Other Cities................................................. .................... District Average............................... ...................... July — 4.1 41.4 — 3.4 — 4.8 August — 4.7 23.5 1.2 0.8 0.0002 1.4 Sept. — 3.2 13.7 Oct. 6.4 27.3 0.6 — 0.02 10.0 0.2 Nov. 0.5 17.3 0.4 0.3 8.9 2.2 0.3 Dec. 1.8 17.7 7.5 2.3 5.5 Percentage of increase (or decrease) in stocks at close of month named, 1923, over stocks at same date in 1922: Baltimore ...................................... *............. .................... Richmond..................................................... .................... Washington............................................................... ........ Other Cities...................................................................... District Average............................... ..................... July 10.3 28.8 8.4 9.2 10.9 August 7.9 32.3 3.9 14.3 9.2 Sept. 8.3 32.6 2.8 16.8 9.2 O ct 5.6 26.0 3.0 20.3 Nov. 7.2 29.5 3.3 Dec. 2.3 25.7 1.9 22.0 12.8 8.2 9.6 5.5 Percentage of increase (o r decrease) in stocks at close of the month named, 1923, over stocks at close of preceding month the same year: Baltimore.................................................... ..................... Richmond..................................................... ..... ................ Washington........................................................................ Other Cities................................................. ..................... District Average............................... ..................... July — 1.9 2.0 — 3.5 — 1.7 — 2.1 August — 1.3 2.3 3.2 5.4 1.7 Sept. 15.3 Oct. 8.4 11.2 8.8 10.1 11.9 12.1 13.1 9.4 9.2 Nov. —1.2 6.5 0.8 2.3 0.8 Dec. —21.5 —19.2 —18.4 —23.8 —20.4 Percentage of average stocks at close of each month since July 1st, to average monthly net sales during the same period: Baltimore.................................................... .................... Richmond.................................................... Washington ................................................ ...................... Other Cities................................................ ..................... District Average.............................. ..................... July 543.2 365.2 505.7 577.6 510.0 August 523.6 400.5 511.1 578.0 511.1 Sept. 506.4 410.8 504.4 586.3 504.8 Oct. 448.8 386.4 452.8 558.7 456.7 Nov. 422.8 385.4 434.8 549.2 438.4 Dec. 365.2 334.8 363.5 470.1 373.7 Percentage o f outstanding orders at the end of each month named, 1923, to total purchases of merchandise during 1922: Baltimore.................................................... ..................... Richmond.................................................... Washington ................................................ .................... Other C ities................................................ ..................... District Average.............................. ..................... July 7.7 13.9 9.3 13.0 9.4 August 9.8 13.0 9.2 11.8 10.1 Sept. 9.6 12.3 8.5 10.9 9.5 Oct. 6.1 8.3 6.1 8.0 6.5 Nov. 4.4 5.4 6.0 6.5 5.4 Dec. 3.7 3.3 5.1 6.3 4.4 —Denotes decrease- In the accompanying table we have reprinted the percentage figures on retail trade for the last six months of 1923, giving them thus collected for ready reference. A ll months show data made up from reports sent us by twenty-seven identical stores. 8 WHOLESALE TRADE Percentage Increase (or Decrease) in Net Sales During Dec., 1923, as Compared With Nov., 1923 and Dec., 1922. Groceries Dry Goods Number of reporting firms in each line______ 44 15 Net sales (selling price) during Dec., 1923, compared with Nov, 1923.............................. — 9.8 —43.0 —23.5 —16.6 —29.5 —15.6 Net sales (selling price) during Dec., 1923, compared with Dec, 1922................................ 10.7 —14.1 —19.4 3.1 — 1.4 — 0.6 Net sales during the entire year 1923, com pared with sales in 1922................................. 13.6 19.2 7.1 21.0 50.4 12.6 Shoes 14 Hardware 17 Furniture 7 Drugs 13 —Denotes decrease in latest period. The figures in the table show that sales in every line of wholesale trade reported upon were lower in December than in November 1923, but this is a regular seasonal occurrence. By the first of December retailers have bought practically all the goods they will need until after the Christmas season, and unless an unexpectedly large trade develops, necessitating many re-orders to fill in exhausted lines, the wholesalers se cure little business. This year the retailers did not experience any exceptionally active demand in December, and therefore refill orders were not numerous. Sales in December 1923, therefore, show declines under sales in December 1922 in all lines except groceries and hardware, in which increases of 10.7% and 3.1 % were re ported, respectively. W e have totaled the sales reported by all wholesale firms for which we have both 1922 and 1923 figures, and the results are very interesting. Every line reported upon shows an increase in 1923 over 1922 sales, the gains ranging from 50.4% in furniture lines to 7.1 % in shoes. Our calculations show that 44 wholesale grocery firms sold $38,087,793 during 1923 in comparison with $33,569,564 sold in 1922, 15 dry goods firms reported sales of $26,822,960 in comparison with $22,497,100 the previous year, 13 shoe firms reported $13,266,782 in comparison with $12,388,085, 17 hardware firms reported $14,611,971 in comparison with $12,080,232, 7 furniture factories reported $4,642,968 in comparison with $3,088,096, and 13 drug firms reported $12,817,618 in comparison with $11,388,367. The percentage increases are included in the table above. Collections improved somewhat during December in comparison with November, as is usual. The classi fications of collections made this month by 107 firms show that 92.5 % of them stated that collections were either Good or Fair, compared with 88.1% so classifying in November. The W est Virginia firms continue to furnish most of the Slow reports, due to the slump in the coal industry. W e show herewith the December classifications, together with the grouping given for the previous five months of 1923 and for December 1922. Lines G roceries................................................................................. D ry Goods ............................................................................ S h o e s ....................................................................................... Hardware ............................................................................... Furniture ............................................................................... Drugs ..................................................................................... December 1923 Totals........... November 1923 Totals........... October 1923 Totals............... September 1923 Totals........... August 1923 Totals............... July 1923 Totals...................... December 1922 Totals........... Collections Reported A s Good Fair Slozv Poor Total 17 25 2 0 44 4 9 1 o 14 1 9 3 o 13 6 9 1 o 16 2 4 1 0 7 5________8_______ o________ o________13 64 8 o 107 35 11 2 109 39 57 11 0 III 4i 59 27 8 75 3 113 28 70 1 114 15 20 76 16 1 113 27 8 o 118 83 (Compiled January 21, 1924) 9 BUSINESS CONDITIONS IN THE UNITED STATES. Compiled by the Federal Reserve Board. Production of basic commodities showed further decline in December and wholesale prices receded slightly. Christmas trade was somewhat larger than a year ago. Changes in the banking situation in January reflected chiefly an unusually large return flow of currency after the holiday season. PRODUCTION. The index of production in basic industries declined 4 per cent in December to the low point of the year. The decrease for the month reflected principally a large reduction in consumption of cot ton, but also reduced operations in the woolen, petroleum, sugar, and lumber industries. Production of pig iron and anthracite increased. The Federal Reserve B oards index of factory employment decreased 1 per cent, and was 4 per cent lower than in the spring. The largest decreases were at plants manufacturing food products and railroad equipment. Building contract awards in December were smaller than in November, but almost 25 per cent larger than a year ago. TRADE. Railroad shipments continued to decrease during December and were slightly less than in December, 1922. Loadings of coal and grain were smaller than a year ago, while loadings of miscellaneous merchandise and live stock were in larger volume. The volume of wholesale trade showed more than the usual seasonal decrease and was at about the same level as a year ago. Sales of meat, hardware, and drugs were larger than in December, 1922, while sales of dry goods and shoes were smaller. Retail trade, though larger in December, 1923, than in any other month on record, did not show as large an increase over November as is usual at the Christmas season. PRICES. Wholesale prices, according to the index of the Bureau of Labor Statistics, decreased less than one per cent during December. The chief reductions occurred in prices of fuel and building materials, while prices of clothing and metals increased, and prices of farm products remained unchanged. During the first two weeks of January prices of corn, wheat, pig iron, petroleum, and lumber advanced, while quotations on cot ton, sugar, and copper were lower. BANK CREDIT. The volume of credit extended by the Federal Reserve banks showed the usual sharp increase during the latter part of December in response to holiday requirements for credit and currency and financial settlements falling due on the first of January. W ith the passing of the seasonal demands there was an unusually rapid return flow of currency to the Reserve banks, reflected both in an increase of reserves and a decrease of Federal reserve note circulation. Member banks used the currency returned from cir culation to reduce their borrowings, with the consequence that the earning assets of the Federal Reserve banks declined by $360,000,000 during the four weeks following Christmas, or approximately $150,000,000 more than during the corresponding period of 1923. A t the middle of January the volume of Reserve bank credit outstanding was below $1,000,000,000 for the first time since early in 1918. Loans made largely for commercial purposes by member banks in principal cities declined between Decem ber 12 and January 16 to a point $264,000,000 lower than at the peak in October and to about the level of July, 1923. This decrease in loans, which was general throughout the country, was accompanied by a movement of funds to the financial centers and an increase in loans on securities, principally in New York. Easier money conditions in January were reflected in a further slight decline in the rate on prime com mercial paper to 4% per cent, compared with 4 ^ to 5 per cent in December, and in increased activity in the investment markets. 10 Index of 22 basic commodities corrected for seasonal variation (1919=100). Latest Figure— December 112. RESERVE BANK C R E D IT MILLIONS OF OOLLAftS 9000 Index of U. S. Bureau of Labor Statistics (1913=100, base adopted by Bureau) Latest figure —December 151. MILLIONS Of DOLLARS *♦000 --- , 2000 2000 Total Earning Asisets 1 A / ^VU-1\ % T d c. 1 Discount! 1 0 1919 1920 1921 1922 0 1923 1924 Weekly figures for member banks in 101 leading cities. Latest figures, January 9th. Weekly figures for 12 Federal Reserve Banks. Latest figures, January 16th. NOTE: The December index figure for should be 111. , given as 112 in the note under the chart above, 11 12
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