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MONTHLY REVIEW CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS WILLIAM W. H O X T O N , C h a ir m a n a n d F e d e r a l R e s e r v e A g e n t FEDERAL RESERVE BANK OF RICHMOND RICHMOND, VIRGINIA 1931 SUMMARY Debits to Individual Accounts (24 Cities).--------- ,$13,536,067,000 1,574 Number of Commercial Failures, 5th District.-----Liabilities Involved in Failures, 5th District-------- . .. $ 34,880,659 2,507,332 Cotton Consumption, 5th District Mills, (Bales)--1,833,000 Cotton Grown in Fifth District (Bales)------------681,734,000 Tobacco Grown in Fifth District (Pounds)--------Farm Value, All Crops in Fifth District------------ .... $ 352,113,000 34,484 Building Permits for All Work (32 Cities)--------Value of Permits for All Work (32 Cities)-------- .... $ 80,739,801 Value of Contracts Awarded, 5th District---------- .... $ 243,595,366 Total Sales, 34 Department Stores, 5th District---- . .. $ 107,726,854 Total Sales, 63 Wholesale Firms in 5 Lines-------- .... $ 41,321,045 378,110,000 Bituminous Coal Production, U. S. (Tons)-------The accompanying summary shows in statistical form some of the leading activities of the Fifth Federal reserve district in 1931 in contrast with the two preceding years. Most of the fig ures for 1931 compare unfavorably with those of both 1930 and 1929. Debits to individual accounts figures for last year totaled 13.2 per cent less than debits in 1930, and 19.7 per cent below those of 1929. Commercial failures were practically the same in number last year as in 1930, and were only 10.8 per cent more numerous than in 1929, but the aggregate liabilities involved in 1931 insolvencies exceeded those of 1930 by 6.3 per cent and those of 1929 by 41.2 per cent. Cotton consumption in Fifth district mills increased 5.6 per cent last year over con sumption in the preceding year, but was 17.5 per cent less than cotton consumption in the district in 1929. Building permits issued in the Fifth district last year decreased in both number and in estimated valuation in comparison with the figures for the two preceding years, and contracts actually awarded for construction work in the district declined even more, indicating that the depression in building extended to suburban and JANUARY 31, 1932 1930 1929 $15,588,979,000 $16,851,269,000 1,572 1,420 24,705,654 $ 32,806,719 $ 2,375,299 3,039,884 1,818,000 1,625,000 817,651,000 725,109,000 649,480,000 $ 483,051,000 35,091 $ 42,122 97,992,273 $ 131,888,967 $ 352,912,092 $ 385,963,047 117,636,010 $ 115,013,920 $ 49,353,307 $ 64,176,273 $ 467,526,000 534,989,000 rural work as well as to city projects. Retail and wholesale trade in 1931 was materially smaller than trade in 1930 and 1929. Unemployment increased in 1931, and there were more wage re ductions than in 1930. Agricultural yields were excellent in the district in 1931, and on an acreage basis exceeded production of any recent year in most crops, but prices for crops were the lowest in many years and total income derived by farmers was much lower than in 1930 or 1929. This decrease in the cash return on the year’s farm ing, following the disastrous drought year and low prices in 1930, made it impossible for a very large percentage of the farmers to liquidate their indebtedness in the fall. As a result of this frozen credit, many banks found themselves unable to meet their obligations and were forced to close. At the end of the year, financial conditions were strained, especially in the lower half of the district, and member banks were leaning much more on the Federal reserve bank than they were at the end of 1930. Trade in December 1931 was up to seasonal level in comparison with the fall months of 1931, but was in MONTHLY REVIEW 2 smaller volume than trade in December 1930. De partment store sales last month were 9.7 per cent less than sales in December 1930, and four of five whole sale lines for which data are available also showed smaller sales in the 1931 month, shoe jobbers reporting the only increase. Between the middle of December and the middle of January, changes of great importance occurred in banking in the Fifth district, and a number of banks were forced to close in the Carolinas, the most outstanding of these being a State bank branch system in South Carolina. The unsettled conditions among the banks in the Carolinas greatly increased the demand for reserve bank credit, and consequently re discount holdings and note circulation of the Federal Reserve Bank of Richmond both advanced sharply during the past month, when under normal conditions both would have tended to decline. Deposits in mem ber banks decreased materially between December IS and January IS. Debits to individual accounts figures during the five weeks ended January 13, 1932, showed a seasonal increase over debits in the five weeks ended December 9, 1931, but fell 16 per cent below totals for the corresponding five weeks ended January 14, 1931. Commercial failures showed somewhat less than the seasonal increase in December over November, and were practically the same as in December 1930, but liabilities last month compared quite unfavorably with those of both November 1931 and December 1930. Employment showed no improvement in December, but mild weather lessened the usual seasonal increase in the number of unemployed. Coal production in De cember was below the daily rate of production in No vember, and was much less than in the preceding December. Fifth district textile mills used more cotton in December than in the corresponding month of the preceding year, but showed a seasonal decline in com parison with cotton consumption in November 1931. Cotton prices rose about half a cent a pound between the middle of December and the middle of January, but tobacco prices continued to decline. Building permits issued last month in the district increased over those of December 1930, but last month's estimated valuation declined 28 per cent. Reserve Bank Statement 000 omitted Dec. 15 Jan. 15 1931 1931 $ 36,081 $ 23,332 $ 44,736 Rediscounts held----------------11,528 7,384 9,650 Open market paper------------25,025 9,081 17,261 Government securities______ 700 700 0 Other earning assets-----------73,334 47,977 64,167 Total earning assets----------. 99,046 90,569 Circulation of Fed. Res. notes... 110,622 55,381 60,892 50,372 Members’ reserve deposits-----94,124 113,505 107,343 Cash reserves .......________ ... 58.86 64.09 72.71 Reserve ra tio -------------------ITEMS Jan. 15 1932 Rediscounts for member banks held by the Federal Reserve Bank of Richmond increased between the mid dle of December and the middle of January, contrary to the trend in most years. The increase was due chiefly to a desire of many member banks to strengthen their cash position because of bank failures. Rediscounts held on January IS totaled $8,655,000 more than those held on December 15. For the same reasons that caused the rise in rediscounts, the circulation of Fed eral reserve notes also increased during the past month, rising by $11,576,000 between December 15 and Janu ary 15. Member bank reserve deposits declined by $5,009,000 during the month under review, partly due to lower deposits in member banks and partly to with drawals of reserves by members needing the funds to meet customer demands on them. The reserve bank built up its cash reserves $13,219,000 between Decem ber 15 and January 15 by reducing its portfolio of open market paper $1,878,000 and disposing of $15,944,000 of Government securities. These changes reduced the total earning assets of the Federal Reserve Bank of Richmond by $9,167,000 between December 15 and January 15, but raised the ratio of cash reserves to note and deposit liabilities combined by 5.23 points. It is interesting to note that the January 15 figures for rediscounts and circulation of Federal reserve notes were lower than the figures reached earlier in the month, when the volume of rediscounts held rose above $47,000,000 and note circulation went above $115,000,000 for a day or two. In comparison with figures for January 15 last year, those shown on the statement of the Federal Reserve Bank of Richmond for January 15, 1932, indicate a much heavier reliance this year on the reserve bank by member banks. Rediscounts rose $21,404,000 during the year, nearly doubling the January 15, 1931, figure, and the amount of Federal reserve notes in circulation was $20,053,000 higher on the 1932 date. During the year, member banks reduced their reserve deposits by $10,520,000. The Richmond reserve bank decreased its portfolio of assets other than rediscounts by $5,214,000, but the material increase in rediscount hold ings raised the total earning assets of the Bank by $16,190,000 during the year. The increased demand for reserve bank credit this year lowered the cash re serves of the Federal Reserve Bank of Richmond by $6,162,000 below the relatively high figure on January 15, 1931, and also reduced the ratio of cash reserves to note and deposit liabilities combined by 8.62 points. Member Bank Statement ITEMS Jan. 13 1932 000 omitted Dec. 9 Jan. 14 1931 1931 Loans on stocks and bonds (in cluding Governments) _____ $144,624 $144,255 $171,228 224,712 231,172 272,116 All other loans-----------------369,336 375,427 443,344 Total loans and discounts— Investments in stocks & bonds.. 234,130 235,242 175,638 35,322 33,154 36,410 Reserve bal. with F. R. Bank.... 15,312 15,838 14,088 Cash in vaults-------------------295,997 309,528 332,427 Demand deposits __________ Time deposits -------------------- 224,457 229,639 239,462 16,003 6,121 22,617 Borrowed from F. R. Bank.— The accompanying table shows the principal items of condition of forty-nine regularly reporting member MONTHLY REVIEW banks in the Fifth reserve district as of three dates, thus affording an opportunity for comparison of the latest available figures with those of the corresponding dates a month and a year earlier. It should be under stood that the figures in the table reflect conditions as of the report dates only, and are not necessarily the highest or lowest figures that occurred during the in terval between the dates. During the month between December 9 and January 13, total loans and discounts held by the forty-nine re porting banks declined by $6,091,000, all of the net decrease occurring in agricultural and commercial loans. A decrease in loans at the end of the year is seasonal, but the liquidation this year was rather less than in most years. The reporting banks also decreased their investments in stocks and bonds by $1,112,000 during the month, and lowered their reserve balance at the re serve bank by $2,168,000. Cash in vaults rose by $526,000 between December 9 and January 13. Ag gregate deposits in the forty-nine banks declined $18,713,000 last month, demand deposits falling $13,531,000 and time deposits decreasing $5,182,000. The reduc tion in loans would naturally bring about a decrease in deposits, but the loss last month was much more than is accounted for by the repayment of loans. The un usual withdrawals caused the reporting banks to in crease their borrowing at the reserve bank by $6,614,000 between December 9 and January 13. A comparison of the January 13, 1932, figures with those, for January 14, 1931, shows increases in invest ments, cash in vaults, and in borrowing at the reserve bank during the year, but all other items declined. Total loans and discounts decreased $74,008,000 be tween the middle of January last year and this, loans 3 on stocks and bonds decreasing $26,604,000 and all other loans falling $47,404,000. Aggregate deposits declined $51,435,000 during the year, demand deposits falling $36,430,000 and time deposits $15,005,000. The decrease in deposits was materially less than might have been expected to accompany a larger decline in loans. Investments in stocks and bonds by the forty-nine re porting banks increased $58,492,000 between the 1931 and 1932 dates, cash in vaults rose by $1,750,000, and borrowing at the reserve bank increased by $16,496,000. Most of the increased borrowing occurred in the past four months. Savings and Time Deposits Savings deposits in twelve mutual savings banks in Baltimore increased slightly during December, prob ably due to the crediting of interest at the year’s end. Deposits on December 31 totaled $213,515,559, com pared with $212,948,740 on November 30, 1931, and $198,794,363 on December 31, 1930. In 1929, when employment conditions were much better than they were in either 1930 or 1931, deposits in the twelve re porting banks in Baltimore increased only $1,887,273, while in 1930 there was a rise of $9,745,618, and in 1931, the worst of the three years, deposits rose $14,721,196. Time deposits in forty-nine reporting mem ber banks declined during the past month from $229,639,000 on December 9, 1931, to $224,457,000 on January 13, 1932, and on the latter date compared un favorably with deposits aggregating $239,462,000 on January 14, 1931. It should be mentioned, however, that time deposits in reporting member banks do not represent actual savings accounts to as great a degree as they do in the deposits in mutual savings banks. DEBITS TO INDIVIDUAL ACCOUNTS CITIES Asheville, N. C----------------Baltimore, Md. ---------------Charleston, S. C.--------------Charleston, W. Va------------Charlotte, N. C.---------------Columbia, S. C----------------Cumberland, Md. _________ Danville, V a .------------------Durham, N. C.----------------Greensboro, N. C.------------Greenville, S. C.---------------Hagerstown, M d.------------Huntington, W. Va-----------Lynchburg, Va----- -----------Newport News, Va._______ Norfolk, Va______ _______ Portsmouth, Va............ .......... Raleigh, N. C.___________ Richmond, Va. __________ Roanoke, Va_____________ Spartanburg, S. C________ Washington, D. C-------------Wilmington, N. C.________ Winston-Salem, N. C._____ District T o tals_________ Total Debits During the Five Weeks Ended Jan. 14, 1931 Jan. 13, 1932 Dec. 9, 1931 $ 14,343,000 389,766,000 24.360.000 51.468.000 48.343.000 23.286.000 8.269.000 9.053.000 23.805.000 18.512.000 16.690.000 7.644.000 17.600.000 19.811.000 13.042.000 51.843.000 5.643.000 32.192.000 146.485.000 30.862.000 11.058.000 261.883.000 12.981.000 42.104.000 $1,281,043,000 $ 12,671,000 357,873,000 11.400.000 40.896.000 43.641.000 24.272.000 8.005.000 9.820.000 28.918.000 20.275.000 16.666.000 7.302.000 16.757.000 17.404.000 11.836.000 52.340.000 6,037,000 27.038.000 140.181.000 30.345.000 10.171.000 250.095.000 10.665.000 32.641.000 $1,187,249,000 Annual Totals 1931 1930 15,465,000 494.672.000 22.170.000 56.016.000 50.722.000 46.426.000 10.149.000 10.134.000 29.783.000 26.133.000 19.453.000 10.538.000 25.099.000 23.496.000 14.228.000 68.099.000 5,449,000 34.453.000 168.447.000 34.333.000 15.125.000 288,136,000 .17,014,000 40.097.000 $ 139,608,000 4.413.211.000 208.428.000 456.759.000 500.477.000 258.860.000 95.058.000 82.998.000 290.147.000 214.543.000 181.083.000 96.033.000 191.327.000 199.056.000 128.476.000 565.561.000 54.437.000 259.468.000 1.478.255.000 311.114.000 111.076.000 2.772.213.000 134.651.000 393^28,000 $ 298,131,000 5.165.821.000 290.223.000 502.862.000 582.145.000 303.263.000 112.145.000 98.781.000 321.971.000 257.023.000 218.680.000 116,180,000 251.691.000 231.174.000 138.258.000 681.618.000 58.573.000 $1,525,637,000 $13,536,067,000 $15,588,979,000 $ 287t663t000 1.655.672.000 365.827.000 144.674.000 2.899.966.000 170.001.000 436.637.000 4 MONTHLY REVIEW The table on page 3 shows debits to individual, firm and corporation accounts in the clearing house banks in twenty-four leading trade centers of the Fifth Federal reserve district, three equal periods of five weeks being given to allow for comparison of the latest available figures with those of the preceding like period and the corresponding period a year ago. In addition, total debits are shown by cities and the dis trict for the calendar years 1931 and 1930. Debits figures for five weeks ended January 13, 1932, showed a seasonal increase amounting to $93,794,000, or 7.9 per cent, over aggregate debits in the preceding five weeks, ended December 9, 1931, the increase being due in part to holiday trade but principally to the large volume of payments falling due on January 1. Of the twenty-four reporting cities, eighteen reported higher figures for the more recent period, while six cities failed to show the seasonal increase. Three of the six decreases, in Columbia, Durham and Greensboro, were probably due to closed banks in the later period, and Danville’s decline was due at least in part to the holiday suspension of tobacco marketing. All of the larger cities except Norfolk showed higher figures in the period ended January 13. In comparison with debits aggregating $1,525,637,000 reported for five weeks ended January 14, 1931, this year’s figures for the corresponding period show a de cline of $244,594,000, or 16.0 per cent. Only three cities, Charleston, S. C., Portsmouth and WinstonSalem, reported higher figures for the current period. The decreases in this year’s figures were due in part to a generally reduced volume of business and in part to lower prices in many lines. Total debits in the twenty-four reporting cities for 1931 showed a decrease of $2,052,912,000, or 13.2 per cent, in comparison with debits in 1930. The decrease was district wide, every one of the reporting cities showing lower figures for the later year. Washington, with a decline of only 4.4 per cent, made the best rec ord for 1931 in comparison with 1930, while Newport News and Portsmouth tied for second place with de creases of 7.1 per cent. The district total of debits in the twenty-four reporting cities in 1931 was the lowest for any year since 1922. Commercial Failures The pressure of year-end settlements usually causes business failures to increase in December, but this year the rise was chiefly in liabilities. Failures in the Fifth district in December totaled 140, compared with 139 in both November 1931 and December 1930. The in crease in comparison with the preceding month was the smallest reported for any December since 1923. Ag gregate liabilities involved in last month’s insolvencies made a much worse record than the number of failures, liabilities totaling $4,301,830 comparing with $2,570,911 for November 1931 and $3,131,419 for December 1930. In the United States, failures in December 1931 exceeded December 1930 failures by 9.2 per cent, but total liabilities in the nation decreased 12.5 per cent, chiefly due to very high figures in December 1930 in the Atlanta and St. Louis reserve districts. The year 1931 witnessed 1,574 failures in the Fifth reserve district, with liabilities totaling $34,880,659. These figures show increases of l/10th of 1 per cent and 6.3 per cent, respectively, over 1,572 failures and liabilities totaling $32,806,719 in 1930. The number of insolvencies last year was less than those of 1927 and 1922, but exceeded those of all other years since the World War. Last year’s liabilities compared more favorably with earlier years, being less than liabilities reported in five of the preceding twelve years. Employment There was no improvement in employment condi tions in December and early January, and the year ended with a larger number of unemployed than a year earlier. During 1931 the number of idle workers in creased gradually but steadily, and wage and salary reductions spread as business experienced the second year of depression. Weather this winter has been un usually favorable for outside work and seasonal addi tions to unemployment have probably been less than in most years. The mild weather has also helped the people who are out of work by reducing fuel and cloth ing requirements. Coal Production Bituminous coal production in the United States in December totaled 30,260,000 net tons, a higher figure than 30,110,000 tons mined in November, but on a daily basis December showed a decline from the out put of the earlier month. In December 1930, produc tion of soft coal totaled 40,222,000 net tons. Total production for the year 1931 was approximately 378,110.000 net tons, compared with 467,526,000 tons mined in 1930. Shipments of coal through Hampton Roads in December totaled approximately 1,812,000 tons, and total shipments from January 1 through De cember 31 totaled 20,445,000 tons. The January 2, 1932, report of the Bureau of Mines, Department of Commerce, gave bituminous coal pro duction by states for the month of November. West Virginia continued in first place with 7,790,000 tons, Pennsylvania ranking second with an output of 7,280.000 tons. Textiles Fifth district textile mills continued to operate in December at a higher rate than in December 1930, but showed a seasonal recession from the rate of operations maintained in November 1931. Cotton consumed in the district in December totaled 198,076 bales, of which North Carolina mills used 102,259 bales, South Caro lina mills used 86,96£ bales, and Virginia mills 8,851 bales. In November 1931 the mills in the Carolinas and Virginia consumed 212,884 bales, and in Decem ber 1930 they used 184,815 bales. Total consumption in 1931 amounted to 2,507,332 bales, an increase of 5.6 per cent over 2,375,299 bales consumed in 1930. Con sumption of cotton in the Richmond reserve district in December 1931 totaled 47.7 per cent of National con sumption, compared with 49.6 per cent in November 1931 and 45.6 per cent in December 1930. MONTHLY REVIEW Cotton Statistics Spot cotton prices between December 11 and Janu ary IS were higher than in the preceding month, but were about 3 cents per pound lower than in the corre sponding period of the preceding year. The advance last month was from an average of 5.77 cents per pound on December 11 for middling grade 7/8 inch staple upland cotton to 6.25 cents per pound on January 15. The rise in price was caused chiefly by a somewhat better foreign demand. Cotton consumption in American mills in December 1931 totaled 415,517 bales, according to the report of the Bureau of the Census made public on January 14. This figure shows a seasonal decrease from 428,870 bales consumed during the month of November, but is 2.5 per cent more than 405,518 bales consumed in De cember 1930. Total consumption during the five months of the present cotton year amounted to 2,195,935 bales, compared with 2,010,133 bales consumed during the five months ended December 31, 1930. Cot ton on hand at manufacturing establishments on De cember 31, 1931, totaled 1,630,543 bales, compared with 1,441,165 bales held on November 30, 1931, and 1,655,537 bales held on December 31, 1930. Bales in public warehouses and compresses numbered 10,425,945 at the end of December, against 10,695,797 bales at the end of November, and 8,375,943 bales on De cember 31, 1930. Exports of cotton totaled 1,181,089 bales in December, compared with 1,070,643 bales sent abroad in November 1931 and 765,775 bales in De cember 1930. Imports last month totaled 12,705 bales, compared with 5,986 bales imported in November and 4,461 bales in December 1930. Consumption of cotton in the cotton growing states totaled 344,362 bales in December, compared with 321,515 bales used in De cember 1930. Last month’s consumption in the cotton growing states amounted to 82.88 per cent of National consumption, compared with 79.29 per cent of National consumption used in the cotton growing states in De cember a year ago. Of the 344,362 bales consumed in the cotton growing states last month, Fifth reserve district states used 198,076 bales or 57.52 per cent. Tobacco Marketing North Carolina tobacco markets sold 65,058,914 pounds of producers’ tobacco in December 1931, com pared with 73,449,151 pounds sold in December 1930. Total sales this season to January 1, 1932, amounted to 422,631,212 pounds, compared with sales totaling 490,595,793 pounds sold of the 1930 crop prior to January 1, 1931. Prices received in North Carolina last month averaged only $6.74 per hundred pounds, a much lower figure than $12.54 per hundred received for tobacco sold in December a year ago. Wilson led in sales in December with 8,668,944 pounds, and Winston-Salem ranked second with 8,501,864 pounds. In total sales this season, Greenville leads with 56,786,554 pounds, Wilson ranking second with 55,852,222 pounds and Rocky Mount third with 35,741,472 pounds. Ashe ville, the only Burley market in North Carolina, led in price in December with $9.22 per hundred pounds, but 5 Mebane led the Bright tobacco markets with $8.83 per hundred. Virginia leaf markets sold 25,049,854 pounds of to bacco during December, at an average of $6.38 per hundred, according to warehouse reports to the Com missioner of Agriculture. Total sales for the season to December 31 were 62,902,461 pounds at an average of $7.42 per hundred pounds, compared with 76,851, 100 pounds at an average of $9.47 sold to December 31, 1930. Fire-cured sales last month amounted to 16,110,493 pounds at an average of $6.18 per hundred. The average price for flue-cured tobacco to December 31 is $7.62 per hundred pounds, the lowest since 1899, which averaged $6.31 per hundred. Sales of firecured tobacco amounted to 5,122,656 pounds in De cember, at an average of $4.67 per hundred, and the average price received for this type prior to Decem ber 31 was $4.73 per hundred. Burley sales totaled 3,321,325 pounds last month, at an average of $10.18 per hundred pounds. Sun-cured sales have been light this season, and in December totaled only 495,380 pounds. The average price of December sales was $5.22. According to estimates of warehousemen, De cember sales of all types graded 15 per cent good, 34 per cent medium, and 51 per cent common, compared with December 1930 grades of 13 per cent good, 29 per cent medium, and 58 per cent common. Among the individual markets, Danville led in December sales with 8,566,866 pounds, South Boston ranking second with 3,347,080 pounds. Abingdon and Richmond, Bur ley markets, led in price last month at $10.18 per hun dred, while Danville led all other markets at $7.11 per hundred. Crop Estimates Crop yields in the Fifth Federal reserve district in 1931 were much larger than yields in 1930, taking total figures for the district, and compared very favorably with the ten-year average production. The three states of Maryland, Virginia and West Virginia, which suf fered severely from the drought in 1930, accounted for most of the increase in yields last year, but the Caro linas also reported larger yields of all important crops except tobacco. Production of food and feed crops increased markedly in 1931. Prices for agricultural products in 1931 declined further, reaching in most cases the lowest levels in many years. According to the December 16 report of the Bureau of Agricultural Economics of the U. S. Department of Agriculture, the farm value of all crops grown in 1931 in the Fifth district was 27 per cent less than the aggregate value of 1930 crops, and 46 per cent below the 1929 value. West Virginia was the only state in the district whcih showed higher crop values for 1931 than for 1930, and even in West Vir ginia last year’s crops were 37 per cent below those of 1929 in value. Apples and sorghum syrup were the only crops in the Fifth district which were more valu able in 1931 than in 1930. We include a table showing crop yields in the Fifth Federal reserve district for 1931 and 1930, and be cause 1930 was exceptionally dry and therefore does 6 MONTHLY REVIEW not furnish a fair basis of comparison, production fig the table are estimates by the Department of Agri ures for 1929 are also shown. The 1931 figures are final official estimates by the Department of Agricul culture, and are based for the most part on December ture as of December 1. The farm values included in 1 prices. Crops Yrs. Corn (bus.) ____________ ...1931 1930 1929 Cotton ('bales') ............................1931 1930 1929 Tobacco (lbs.) ---------------- 1931 1930 1929 Irish Potatoes (bus.)-------- ...1931 1930 1929 Sweet Potatoes (bus.)-------...1931 1930 1929 Oats (bus.) ------------------ 1931 1930 1929 Wheat (bus.) ---- ----- ------- 1931 1930 1929 Hay (tons) ------------------- 1931 1930 1929 Peanuts (lbs.) ----------------...1931 1930 1929 Apples (bus.) ----------------- 1931 1930 1929 A n n f a c f n m m p r r t a l i h n K 1 1931 X\pj}iC2>9 vvIUUlCl tl<*i V 1930 1929 Sorghum Syrup (gals.)------------ 1931 1930 1929 ...1931 Estimated Crop Values-------------1930 Dec. 1 prices 1929 Construction Maryland W. Virginia Virginia N. Carolina S. Carolina 20.710.000 6,858,000 15.718.000 12.934.000 5,052,000 12.326.000 ----------- ----------- 31.540.000 16.625.000 24.750.000 3.360.000 2.520.000 3.390.000 2.013.000 630,000 1.629.000 2,010,000 1.470.000 1.316.000 9.696.000 11,063,000 9.108.000 469.000 309.000 484.000 5.328.000 3.906.000 5.513.000 3.200.000 2.394.000 3.780.000 43.061.000 16.478.000 35.187.000 43,000 42.000 48.000 106.276.000 112.530.000 119.794.000 14.160.000 13.689.000 15.244.000 4.750.000 2.960.000 5.076.000 4.838.000 2.630.000 2.642.000 13,266,000 9.160.000 8.607.000 993.000 424.000 988.000 165.240.000 100.080.000 158,620,000 21.889.000 7,700,000 13.054.000 3,500,000 1.450.000 3.100.000 210,000 80,000 122,000 $78,216,000 84,582,000 145,323,000 48.072.000 40.194.000 37.715.000 775,000 775.000 747.000 468.520.000 585.990.000 487.968.000 8.532.000 7.220.000 6.138.000 6.560.000 6.750.000 6.720.000 4.531.000 3.534.000 3.192.000 4.407.000 2.862.000 3,636,000 677.000 532.000 522.000 323.150.000 207.900.000 247.860.000 5.475.000 2.555.000 2.628.000 274,000 100,000 150,000 2.117.000 1.320.000 1.050.000 $136,160,000 213.171.000 257.685.000 22.994.000 22.200.000 20,184,000 1,015,000 1,001,000 830,000 70.070.000 98.600.000 87.084.000 3.550.000 2.835.000 2.600.000 3.180.000 4.655.000 5.029.000 9.450.000 7.912.000 8.485.000 689.000 340.000 520.000 178.000 144.000 144.000 13,000,000 11,200,000 11,760,000 374.000 300.000 180.000 ------------------------ 3.552.000 2.660.000 3,374,000 2.373.000 1.838.000 1.362.000 650.000 317.000 739.000 ------------------------ ------------------------ 3.582.000 1.650.000 2.200.000 580.000 330.000 455.000 12.954.000 4.306.000 5.716.000 1,597,000 680,000 1,400,000 ------------------------ $39,480,000 41.072.000 62.590.000 $27,043,000 25.569.000 43.138.000 Building permits issued in thirty-two leading dries of the Fifth Federal reserve district in December 1931 numbered 1,826, a higher number than 1,791 permits issued in the same cities in December 1930, but esti mated valuation figures for December 1931 totaled only $3,039,037, a decrease of 28.2 per cent under $4,235,329 valuation for permits issued in December 1930. Ten of the thirty-two reporting cities showed higher figures for December 1931 than for December 1930, Greensboro making the best record for the later month in proportion to population. The three largest cities, Baltimore, Washington and Richmond, reported rela tively low figures last month. During the year 1931, permits issued in the thirty-two reporting cities^totaled 34,484, compared with 35,091 permits issued in 1930 --------486.000 350.000 260.000 $ 71,214,000 118.657.000 140.744.000 and 42,122 permits in 1929. Estimated valuation fig ures last year totaled $80,739,801, compared with $97,992,273 in 1930 and $131,888,967 in 1929. Contracts awarded in December for construction work in the Fifth district, including both rural and urban projects, totaled $11,677,650, compared with $19,644,097 awarded in November 1931 and $28,139,023 in December 1930, according to figures collected by the F. W. Dodge Corporation. Of the awards in De cember 1931, $3,741,530 was for residential work, com pared with $7,934,998 for this type of work in De cember 1930. Annual figures for 1931 on contracts awarded in the Fifth district total $243,595,366, a de crease of 31 per cent in comparison with contracts totaling $352,912,092 awarded in 1930. MONTHLY REVIEW Building Permits Issued, Fifth District Cities, December 1931 and 1930 CITIES Permits Issued 1931 1930 Baltimore, Md............ 819 Cumberland, Md........ 6 Frederick, Md............ 11 Hagerstown, Md.......8 Salisbury, Md............ 16 Danville, Va.............. 8 Lynchburg, Va........... 24 Norfolk, V a.______ 72 Petersburg, Va.......... 2 Portsmouth, Va......... 17 Richmond, Va............ 68 Roanoke, Va.............. 18 Bluefield, W. Va 4 Charleston, W. Va..... 47 Clarksburg, W* Va... 9 Huntington, W. Va..... 14 Asheville, N. C.____ 18 Charlotte, N. C.____ 27 Durham, N. C.____ 8 Greensboro, N. C, ~ 32 High Point, N. C__ 18 Raleigh, N. C._____ 14 Rocky Mount, N. C... 5 Salisbury, N. C.____ 2 Wilmington, N. C 19 Winston-Salem, N. C. 32 Charleston, S. C. 32 Columbia, S. C_____ 33 Greenville, S. C........ 13 Rock Hill, S. C ..... 7 Spartanburg, S. C---7 Washington, D. C.__ 416 Totals ________ 1.826 Total Valuation 1930 1931 850 5 6 8 20 5 27 87 6 21 77 25 7 18 8 13 19 42 8 26 9 19 5 2 14 52 36 26 21 6 22 301 $ 801,600 $1,842,240 5,465 1,675 1,580 3,040 19,100 5,270 18,240 11,855 9,365 3,045 131,910 30,490 109,148 63,765 10,505 3,200 18,385 7,360 64,883 125,991 19,287 41,654 3,450 14,350 94,149 112,023 2,622 6,550 13,275 3,535 7,234 3,850 28,511 65,419 8,725 17,650 642,314 21,320 31,375 18,075 21,555 65,580 5,490 3,900 4,375 2,525 33,300 34,950 22,684 ,40,595 32,028 39,435 23,210 118,570 14,340 29,400 2,805 8,765 2,055 13,414 925,785 1,386,125 1,791 $3.039.037 $4235,329 Retail Trade, 34 Department Stores Richmond Baltimore Washington Oth. Cities District December 1931 sales, compared with sales in December 1930: —12.3 —10.7 — 7.4 —12.3 — 9.7 Total sales during 1931, compared with sales in 1930: _ 8.9 _ 7.8 — 2.1 —13.5 — 6.3 Dec. 31, 1931, stock, compared with stock on Dec. 31, 1930: —14.2 —13.1 — 6.8 —16.1 —11.3 Dec. 31, 1931, stock, compared with stock on Nov. 30, 1931: —24.2 —20.2 —23.6 —23.1 —22.3 Number of times stock was turned in December 1931: .591 .562 .62 .397 .567 Number of times stock was turned during the year 1931: 4.008 3.998 4.243 2.841 3.941 Percentage of Dec. 1, 1931, receivables collected in Dec.: 31.3 25.2 31.5 27.4 28.1 In comparison with sales during the early fall months, department store sales in the Fifth Federal reserve district showed the usual seasonal increase in December, but averaged 9.7 per cent less than sales in December 1930. In total sales for the year, reporting stores in the district showed a decline of 6.3 per cent in 1931 sales in comparison with total sales in 1930. 7 Stocks of goods on the shelves of the reporting stores declined 22.3 per cent during the month of De cember 1931, and at the end of the year were 11.3 per cent smaller, at selling prices, than stocks on hand at the end of 1930. Stocks were turned an average of .567 times during the month of December, and in the year 1931 stocks were turned an average of 3.941 times a higher figure than 3.62 times in the preceding year. Collections in December averaged 28.1 per cent of outstanding receivables on December 1, 1931, a higher figure than 27.3 per cent for November 1931, but slightly lower than 28.7 per cent collected in December 1930. W holesale Trade, 63 Firms 2!T 9 Groceries Dry Goods 6 Shoes 14 Hardware 12 Drugs December 1931 sales, compared with sales in December 1930: —14,7 —14.1 + 6.2 —13.3 — 8.8 December 1931 sales, compared with sales in November 1931: + 4.1 —25.0 -38.7 —13.7 + 1.9 Total sales during 1931, compared with sales in 1930: —17.1 —21.4 — 7.8 —22.2 — 8.8 Dec. 31, 1931 stocks, compared with Dec. 31, 1930 stocks: —22.6(8*) —31.0(4*) —20.0(5*) —13.8(7*) ----Dec. 31, 1931 stocks, compared with Nov. 30, 1931 stocks: —10.9(8*) —12.1 (4*) — 7.2(5*) — 1.9(7*) ----Percentage of Dec. 1, 1931, receivables collected in December: 60.3(14*) 36.9(6*) 48.2(6*) 27.7(11*) 49.3(8*) * Number of reporting firms! Wholesale trade in the Fifth Federal reserve dis trict in December, as indicated by reports from sixtythree firms in five lines, was in smaller volume in every line except groceries and drugs than in November, and in every line except shoes than in December 1930. The decreases in December sales under those of November were largely seasonal, and part of the decline in com parison with December 1930 sales was due to lower wholesale prices this year. Total sales for the year 1931 were smaller in every line reported upon than sales in 1930. All stocks at the end of December were smaller than at the end of the preceding month, a seasonal develop ment, and stocks on December 31 were also materially smaller than stocks a year earlier. Collections in December were better than in No vember in groceries and dry goods, unchanged in shoes, and slower in hardware and drugs. In comparison with collections in December 1930, those of December 1931 were better in shoes, but compared unfavorably in the other four lines. (Compiled January 21, 1932) MONTHLY REVIEW 8 BUSINESS CONDITIONS IN THE UNITED STATES (Compiled by the Federal Reserve Board) Industrial activity declined from November to De cember by slightly more than the usual seasonal amount, while the volume of factory employment showed about the usual decrease. Wholesale prices de clined further. Production and Employment Volume of industrial output decreased somewhat more than is usual in December and the Board's sea sonally adjusted index declined from 72 per cent of the 1923-1925 average in November to 71 per cent in December. Activity in the steel industry decreased from 30 to 24 per cent of capacity for the month, partly as a result of seasonal influences; in the first three weeks of January it showed a seasonal increase. Automobile output increased considerably in Decem ber from the extreme low level of the preceding month, and daily average output at shoe factories, which ordi narily declines at this season, showed little change. At textile mills production was curtailed by more than the usual seasonal amount. Number employed at factories decreased seasonally from the middle of November to the middle of De cember. In the automobile and shoe industries there were large increases in employment, while in the cloth ing industries employment declined; in most lines, how ever, changes were of a seasonal character. For the year 1931 as a whole the average volume of industrial production was about 16 per cent smaller than in 1930, reflecting large decreases in output of steel, automobiles, and building materials, offset in part by slight increases in production of textiles and shoes. Value of building contracts awarded, as reported by the F. W. Dodge Corporation, declined considerably more than is usual from the third to the fourth quarter, and for the year as a whole was 32 per cent smaller than in 1930, reflecting reduced physical volume of construction, as well as lower building costs. Distribution Distribution of commodities by rail declined by the usual seasonal amount in December, and department store sales increased by approximately the usual amount Foreign Trade Value of foreign trade continued at a low level in December and for the year as a whole exports showed a decline of 37 per cent from 1930 and imports a dedine of 32 per cent, reflecting in part the reduction in prices. W holesale Prices Wholesale prices of commodities declined from 68 per cent of the 1926 average in ^November to 66 per cent in December, according to the Bureau of Labor Statistics, reflecting decreases in the prices of many domestic agricultural products, sugar, silk, iron and steel, and petroleum products. During the first half of January prices of hogs, lard, and butter declined further, while prices of cotton, silk, coffee, and copper increased. Bank Credit Reserve bank credit, which had declined from the middle of October to the middle of December and had increased in the latter part of the month, declined again in the first three weeks in January. The growth in the latter part of December reflected a somewhat more-than-seasonal increase in the demand for currency, partly offset by reductions in member bank reserve balances and in deposits of foreign cen tral banks. In January the return flow of currency was considerably smaller than in other recent years, while member bank reserve balances continued to de cline. Acceptance holdings of the reserve banks, which had reached a total of $780,000,000 in October, have declined through maturing of bills held almost unin terruptedly since that time, and on January 20 totaled $190,000,000. The banks' portfolio of United States Government securities showed some increase over the level of* the early part of December, and discounts for member banks increased substantially. Loans and investments of member banks in leading cities declined further during December and the first I two weeks of January, reflecting reductions in loans on securities, as well as in other loans, and in investments. In the middle of January buying rates for •bankers' acceptances at the Federal reserve banks were reduced and open-market rates on 90-day bills declined first from 3 to 2 7/8 per cent and later to 2 3/4 per cent. Yields of high-grade bonds, after advancing for a period of about four months, declined after the turn of the year, reflecting a rise in bond prices.