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MONTHLY REVIEW CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS WILLIAM W. HOXTON, CHAIRMAN AND FEDERAL RESERVE AGENT FEDERAL RESERVE BANK OF RICHMOND RICHMOND, VIRGINIA ANNUAL SUMMARY JANUARY 31, 1934 1933 Debits to Individual Accounts (23 Cities).......................... $ 9,163,539,000 Number of Commercial Failures, 5th District.................... 1,515 Liabilities Involved in Failures, 5th District...................... $ 34,380,335 Cotton Consumption, 5th District Mills (Bales)................. 2,914,087 1,470,000 Cotton Grown in Fifth District (Bales)............................ Tobacco Grown in Fifth District (Pounds)...................... 717,765,000 Building Permits for All Work (31 Cities)...................... 21,360 Value of Permits for All Work (31 Cities)...................... $ 20,728,673 Value of Contracts Awarded, 5th District.......................... $ 102,465,338 Total Sales, 31 Department Stores, 5th District................ $ 82,605,561 46,842,579 Total Sales, 59 Wholesale Firms in 5 Lines........................ $ Bituminous Coal Production, U. S. (Tons)...................... 327,940,000 HE accompanying table contrasts some of the annual statistics for 1933 with those for 1932, and 1929 figures are included to allow for com parison with the year immediately pre ceding the depression. For the first time since 1929, several of the figures for last year show improvement over those for the preceding year. Cotton consumption in the Fifth reserve dis trict rose by 21 per cent in 1933 in comparison with 1932, textile mills having been especially active during the summer months. Wholesale trade in five lines showed an increase in total sales amounting to 14 per cent over last year, four of the five lines report ing increases. Dry goods sales rose 32.6 per cent in 1933, shoes rose 20.8 per cent, and hardware gained 31.1 per cent. Coal production last year exceeded pro duction in 1932 by 6 per cent, increased industrial activity in many lines requiring larger supplies of fuel. In both number of failures and in liabilities involved, the Fifth district insolvency record for 1933 showed marked improvement over the record for the preceding year. In agriculture, 1933 was a much better year than 1932 in every way. Favorable weather during most of T 1932 1929 $10,495,604,000 1,936 $ 54,233,281 2,403,441 1,410,000 417.130.000 27,781 $ 35,613,841 $ 157,483,234 $ 86,602,758 $ 41,089,711 309.710.000 $16,673,842,000 1,420 $ 24,705,654 3,039,884 1,625,000 725.109.000 42,122 $ 131,888,967 $ 385,963,047 $ 117,111,916 $ 63,287,820 534.989.000 the year produced larger yields per acre in most crops, and higher prices brought the farmers many millions of dollars more than they received in 1932. Many of the indices for 1933 which failed to reach 1932 levels made better comparisons than figures alone indicate. Debits to individual accounts figures, which reflect the volume of business passing through banks, lacked 13 per cent of equaling 1932 figures, but this was due in large part to the bank holiday last March and to the large sums which were frozen in closed banks after that date. Debits last year in nearly all cities in which no impor tant banks closed came relatively near the 1932 figures, and in eight cities debits last year were higher than in the earlier year. Total department store sales for 1933 failed by 4.6 per cent to equal 1932 sales, but sales in the last half of the year ex ceeded sales in the second half of 1932 by nearly per cent. The indices which showed the worst com parisons between 1933 and 1932 were those covering the construction industry. Building permits declined 23 per cent in number and 42 per cent in valuation in 1933 in comparison with the low figures reported in 5 MONTHLY REVIEW 2 1932, and contracts actually awarded last year fell ap proximately 35 per cent below those for 1932. In December, business continued to show improve ment in nearly all lines over the corresponding month of 1932. Department store sales in thirty-one stores averaged 7.4 per cent above sales in December 1932, and wholesale trade in four of five reporting lines also was better than trade a year earlier. Most of the changes between December 15 and January 15 in the statements of the Federal Reserve Bank of Richmond and regularly reporting member banks were seasonal, but a material increase in deposits in member banks was an interesting development. Debits to individual accounts figures in four weeks ended January 10, 1934, showed a seasonal increase over debits in the four pre ceding weeks, although the gain was somewhat smaller than in most years. Employment changed little during December. Coal production last month showed an un seasonable decline from November figures, and there was a considerably larger decrease in cotton consump tion by Fifth district mills than is usual between No vember and December. Cotton and tobacco prices both rose during December, and very much more tobacco was sold than a year earlier. Construction work pro vided for in both permits and contracts awarded was in very small volume, although the contract award fig ure for December was the highest for any month in 1933. Reserve Bank Statement $13,545,000. The several changes mentioned in the statement, with others of less importance, increased the cash reserves of the Richmond reserve bank by $10,977,000, and also raised the ratio of reserves to note and deposit liabilities combined by 1.69 points. A comparison of the figures in the statement of con dition for January 15 this year with corresponding fig ures a year ago shows that marked changes occurred during the year 1933. Rediscounts for member banks declined by $12,585,000 during the year, or approxi mately 76 per cent of rediscounts held on January 15, 1933. On the other hand, the reserve bank increased its portfolio of open market paper by $2,017,000 during the year, and holdings of Government securities rose by $32,532,000. These changes resulted in a net rise of $21,964,000 in earning assets during the year under review. Circulation of Federal reserve notes rose more than 50 per cent between January 15, 1933, and Janu ary 15,1934, increasing by $53,193,000, and in addition Federal reserve bank notes totaling $4,518,000 were in circulation at the middle of January this year, but none were outstanding a year earlier. Member bank re serve deposits rose by $39,590,000 during the year, and on January 15 this year were far above legal require ments. Cash reserves of the Federal Reserve Bank of Richmond rose by $76,210,000 between January 15 last year and this, and the ratio of reserves to note and deposit liabilities combined rose by 5.62 points. Member Bank Statement 000 omitted ITEMS Jan. 15 1934 Dec. 15 1933 Jan. 15 1933 ITEMS Jan. 10 1934 000 omitted Dec. 13 Jan. 11 1933 1933 Rediscounts held ---------------- $ 4,075 $ 5,587 $ 16,660 1,783 5,469 3,800 Open market paper------------46,031 78,563 78,563 Government securities ---------64,474 89,619 86,438 Total earning assets----------98,367 Circulation of Fed. Res. notes.... 151,560 159,434 0 4,559 4,518 Cir. of Fed. Res. bank notes— 77,062 51,017 90,607 Members* reserve deposits------1 Cash reserves-------------------- ‘ 76,355 165,378 100,145 64.34 68.27 69.96 Reserve ratio --------------------- Loans on stocks & bonds (in cluding Governments) _____ $ 59,030 $ 58,706 $ 60,650 109,293 113,952 115,114 All other loans_________ ___ Total loans & discounts------168,323 172,658 175,764 Investments in securities_____ 168,212 163,931 132,182 19,238 32,033 Reserve bal. with F. R. Bank.... 34,047 8,077 11,424 Cash in vaults______________ 11,081 Demand deposits___________ 195,011 194,720 159,153 Time deposits-------------------- 129,514 126,872 133,846 365 0 0 Borrowed frooi F. R. Bank___ Rediscounts at the Federal Reserve Bank of Rich mond declined further between the middle of December and the middle of January, dropping by $1,512,000, and the reserve bank's portfolio of open market paper also decreased by $1,669,000, these changes resulting in a decline of $3,181,000 in total earning assets during the month. There was no change in the holdings of Government securities, which make up most of the bank’s earning assets at this time. Federal reserve notes in actual circulation showed a seasonal drop be tween December 15 and January 15, decreasing by $7,874,000. Federal reserve notes always return from circulation in considerable volume as soon as holiday shopping is done and the marketing season for agri cultural products passes its crest. Circulation of Fed eral reserve bank notes, of which a small amount is outstanding, declined by $41,000 last month. Member banks continued to build up excess reserves at the Fed eral Reserve Bank of Richmond between December 15 and January 15, this item on the statement rising by The accompanying table shows the principal items of condition of twenty-eight regularly reporting member banks in the Fifth reserve district as of three dates, thus affording opportunity for comparison of the latest available figures with those of the corresponding dates a month and a year earlier. It should be understood 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 interval between the dates. During the month between December 13 and Janu ary 10, total loans and discounts held by the twentyeight reporting banks declined by $4,335,000, loans on securities rising $324,000 and all other loans, which are largely agricultural or commercial in character, de creasing $4,659,000. A decrease in loans at the end of the year is seasonal. The reporting banks increased their investments in stocks and bonds by $4,281,000 during the month, chiefly by the purchase of Govern MONTHLY REVIEW ment securities for temporary investment, and increased their reserve balance at the reserve bank by $2,014,000. Cash in vaults declined by $343,000 between December 13 and January 10. Aggregate deposits in the twentyeight banks increased by $2,933,000 last month, demand deposits rising by $291,000 and time deposits increasing by $2,642,000. It is unusual for deposits to rise while loans decline, but the insurance of deposits after Janu ary 1 probably accounts for at least part of the increase. None of the reporting banks were borrowing at the reserve bank on either January 10, 1934, or December 13, 1933. A comparison of the January 10, 1934, figures with those for January 11, 1933, shows increases in invest ments, reserve balance and in demand deposits during the year, but all other items declined. Total loans and discounts decreased by $7,441,000 between the middle of January last year and this, loans on stocks and bonds decreasing $1,620,000 and all other loans falling $5,821,000. Aggregate deposits rose $31,526,000 during the year, demand deposits increasing $35,858,000 but time deposits falling $4,332,000. The partial restora tion of confidence in banks after the banking holiday last March brought a considerable volume of funds out 3 of hoarding since that time, and the insurance of de posits after January 1, 1934, further tended to bring money into the banks. Investments in stocks and bonds by the twenty-eight reporting institutions in creased by $36,030,000 between the 1933 and 1934 dates, cash in vaults rose by $3,004,000, and borrowing at the reserve bank declined to nothing. On January 10, 1934, none of the twenty-eight reporting banks were borrowing at the Federal Reserve Bank of Rich mond, while on January 11, 1933, two of the reporting banks were borrowing a total of $365,000. Time and Savings Deposits Time deposits in twenty-eight reporting member banks and aggregate deposits in eleven mutual savings banks in Baltimore totaled $315,035,743 at the end of December 1933, a higher figure than $311,706,039 re ported at the end of November 1933, but materially less than $341,624,000 reported at the end of December 1932. Time and savings deposits in both member banks and mutual savings banks increased during De cember, but at the end of the year were lower in both member and savings banks than a year earlier. 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, Md. __ Huntington, W. Va.... Lynchburg, Va. ----Newport News, Va._ Norfolk, Va.............. Portsmouth, V a .----Raleigh, N. C...------Richmond, V a.------Roanoke, V a.______ Washington, D. C.__ Wilmington, N. C.---Winston-Salem, N. C.. District Totals Total Debits During the Four Weeks Ended Jan. 10, 1934 Dec. 13, 1933 Jan. 11, 1933 1932 $ 8,054,000 208,475,000 10.707.000 37.248.000 35.633.000 14.786.000 5.254.000 8.104.000 24.090.000 7.070.000 11.380.000 4.914.000 10.867.000 13.222.000 6.659.000 37.883.000 3.001.000 23.507.000 106.697.000 19.285.000 147.393.000 6.957.000 29.115.000 $ 7,337,000 194.283.000 9.212.000 33.329.000 32.573.000 12.619.000 4.989.000 11.276.000 34.573.000 7.047.000 11.582.000 4.398.000 8.876.000 12.340.000 7.316.000 36.356.000 3.470.000 16.370.000 109.551.000 17.437.000 146.427.000 6.425.000 25.431.000 $ 7,384,000 235.718.000 10.098.000 36.457.000 30.607.000 14.646.000 4.775.000 5.204.000 15.702.000 10.895.000 10.268.000 4,996,000 11.421.000 12.308.000 6.895.000 32.254.000 3.280.000 23.866.000 111.543.000 17.908.000 182.465.000 7.069.000 23.485.000 $ 95,917,000 2.558.838.000 114.121.000 364.820.000 427.865.000 169.169.000 62.901.000 70.204.000 267.860.000 68.149.000 133.835.000 57.006.000 115.370.000 149.411.000 73.912.000 399.850.000 37.651.000 183.925.000 1.270.484.000 213.197.000 1.956.138.000 74.720.000 323.482.000 $ $780,301,000 $753,217,000 $819,244,000 $9,163,539,000 $10,495,604,000 The accompanying table shows debits to individual, firm and corporation accounts in the clearing house banks in twenty-three leading trade centers of the Fifth Federal reserve district, three equal periods of four 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 1933 and 1932. Debits figures for four weeks ended January 10, 1934, showed a somewhat smaller than seasonal increase Annual Totals 1933 98,923,000 3.383.614.000 129.037.000 357.911.000 407.444.000 143.883.000 68.352.000 59.910.000 190.515.000 129.548.000 124.095.000 69.533.000 129.986.000 151.724.000 87.094.000 425.187.000 41.597.000 180.243.000 1.306.675.0000 232.036.000 2.353.554.000 91.845.000 307.612.000 amounting to $27,084,000, or 3.6 per cent, over aggre gate debits in the preceding four weeks, ended De cember 13, 1933, the increase being due in part to holi day trade but principally to the large volume of annual payments falling due on January 1. Of the twentythree reporting cities, seventeen reported higher figures for the more recent period, while six cities failed to show the seasonal increase. The declines in Danville and Durham occur nearly every year, and were due in part to holiday suspension of tobacco marketing. All 4 MONTHLY REVIEW of the larger cities except Richmond showed higher figures in the period ended January 10. In comparison with debits aggregating $819,244,000 reported for the four weeks ended January 11, 1933, this year’s figures for the corresponding period show a decline of $38,943,000, or 4.8 per cent. However, this figure does not reflect conditions in the district as a whole, since thirteen of the twenty-three cities reported higher figures for the 1934 period. The district decrease is due in large measure to lower debits in cities in which important banks were not able to reopen after the banking holiday last March. In Baltimore, Wash ington, Richmond and Greensboro relatively large sums are tied up in closed or restricted banks, and are not available for ordinary trade use. Total debits in the twenty-three reporting cities for 1933 showed a decrease of $1,332,065,000, or 12.7 per cent, in comparison with total debits in 1932. In view of the facts that all banks were closed approximately ten days in the spring of 1933, and that a considerable number of banks were not licensed to resume business after that time, the comparison is not nearly as un favorable as the figures alone would indicate. Eight of the twenty-three reporting cities reported higher fig ures for 1933 than for 1932, Charleston, W. Va., Char lotte, Columbia, Danville, Durham, Greenville, Raleigh and Winston-Salem, all of them except Charleston re flecting in large part improved conditions in cotton prices and textiles, and in the tobacco industry. Aggregate debits in the Fifth district last year were the lowest for any year since the Federal Reserve Bank of Richmond began compiling debits figures in 1922, and totaled 45 per cent less than aggregate debits in the record year 1929. Commercial Failures The business failure record in December in both the Fifth reserve district and the United States continued to compare quite favorably with the record for the cor responding month of the preceding year, according to figures gathered by Dun & Bradstreet, Inc. Failures in the Fifth district in December 1933 numbered 76, in comparison with 64 reported for November 1933 and 148 reported for December 1932. Liabilities in volved in last month’s insolvencies totaled only $1,544,968, a slightly higher figure than $1,495,124 in November but less than $2,741,688 in December of the preceding year. As a rule, business failures tend to rise in December because of the pressure of year-end settlements, but the rise this year was very slight. The National record for December also showed much im provement over December 1932, a total of 1,132 fail ures last month comparing with 2,469 insolvencies in December 1932, and aggregate liabilities last month totaling only $27,200,432 in comparison with liabilities totaling $64,188,643 in December a year ago. The year 1933 witnessed a very marked improve ment in insolvencies in comparison with 1932. There were only 1,206 bankruptcies in the Fifth reserve dis trict in 1933, compared with 1,936 failures in 1932. Not since 1923 have as few failures occurred in the district in one year. Liabilities totaling $30,049,977 last year are the lowest since 1929, and contrast favor ably with $54,233,281 reported for 1932. For the United States as a whole, there were 20,307 failures in 1933, with liabilities aggregating $502,830,584, compared with 31,822 failures for $928,312,517 in 1932. i j j Employment Except for further expansion in work designed by governmental agencies to give employment to needy persons, little change occurred in employment during the past month. It is extremely difficult to get data on unemployment, since there are indications that many , persons are now seeking work who do not ordinarily | labor away from home. This is especially true in rural i communities, in which many farm workers who have i little to do on farms in winter are supplementing their S cash incomes by working on road and other public : projects. In spite of the large sums being spent in wages on made work, calls on charitable and public relief agencies continue to be quite heavy. During 1933 a number of industries increased the quota of workers in their plants, but on the whole most of the improvement in employment conditions during the year were due to expansion of public works programs in some form. Coal Production Bituminous coal production in the United States in December 1933 fell below production in November, and also failed to equal production in December 1932. Last month 29,600,000 net tons of bituminous coal were mined, compared with 30,582,000 tons mined in November and 31,522,000 tons brought to the surface in December 1932. Total production for the calendar year 1933 exceeded production in 1932, however, apI proximately 327,940,000 tons dug comparing with 309,! 710,000 tons mined in the earlier year. Shipments of ! coal through Hampton Roads in December totaled apI proximately 1,543,927 tons, and total shipments from j January 1 through December totaled 17,281,732 tons. I Shipments through Hampton Roads ports totaled 16,! 585,217 tons in 1932. The December 22, 1933, report of the Bureau of Mines, Department of Commerce, gave bituminous coal production by states for the month of November. West Virginia led all states with 7,900,000 tons, Penn sylvania ranking second with an output of 7,660,000 tons. I | Textiles Operations of textile mills in the Fifth reserve dis trict not only showed a seasonal recession in December in comparison with November, but also fell behind the j rate of operations of December 1932. Cotton con; sumed in the district in December totaled only 158,124 j bales, of which 79,396 bales were used in North Caro■ lina mills, 70,745 bales were used in South Carolina mills, and 7,983 bales were used in Virginia mills, all i states reporting lower figures last month than for MONTHLY REVIEW December 1932. In November 1933 the mills in the Carolinas and Virginia consumed 217,461 bales, and in December 1932 they used 219,212 bales. Total consumption in the Fifth district in 1933 showed a material increase over 1932 consumption, however, 2,914,087 bales used in 1933 being 21.2 per cent more than 2,403,441 bales used in 1932. All of the increase occurred in the first eight months of 1933, May, June, July and August showing especially heavy gains in comparison with the corresponding months of the pre ceding year. Consumption of cotton in the Richmond reserve district in December 1933 totaled 45.39 per cent of National consumption, compared with 45.75 per cent in November 1933 and 49.77 per cent in December 1932. Cotton Statistics Spot cotton prices showed an upward tendency be tween the middle of December and the middle of Janu ary. In our Review last month we quoted the average price for 7/8 inch staple, middling grade cotton, on ten Southern markets as 9.90 cents per pound on Decem ber 15. The average price declined to 9.70 cents on December 22, but rose again to 10.08 cents on De cember 28, and continued upward to 10.37 cents on January 5 and to 10.71 cents on January 12, the latest date for which official quotations are available. A year ago, January 13, 1932, the average price on the ten markets was 6.03 cents. Cotton consumption in American mills in December 1933 totaled 348,393 bales, according to the report of the Bureau of the Census made public on January 13. This figure shows more than a seasonal decrease from 475,368 bales consumed during the month of Novem ber, and is 20.9 per cent less than 440,439 bales used in December 1932. Total consumption during the five months of the present cotton year amounted to 2,415,690 bales, compared with 2,342,005 bales consumed during the five months ended December 31, 1932. Cot ton an hand at manufacturing establishments on De cember 31, 1933, totaled 1,641,742 bales, compared with 1,573,744 bales held on November 30, 1933, and 1,530,040 bales held on December 31, 1932. Bales in public warehouses and compresses numbered 10,313,461 at the end of December, against 10,411,491 bales at the end of November, and 10,349,811 bales on December 31, 1932. Exports of cotton totaled 820,099 bales in December, compared with 915,304 bales sent abroad in November 1933 and 1,039,795 bales in December 1932, and exports in the five months of the present cotton year—August 1-December 31, inclusive—totaled 4,180,098 bales against 4,246,048 bales shipped over seas in the corresponding five months ended December 31, 1932. Imports last month totaled 14,013 bales, compared with 10,742 bales imported in December 1932. Consumption of cotton in the cotton growing states totaled 282,941 bales in December, compared with 371,318 bales used in December 1932. Last month’s consumption in the cotton growing states amounted to 81.21 per cent of National consumption, compared with 84.31 per cent of National consumption used in the cotton growing states in December a year ago. Of the 5 282,941 bales consumed in the cotton growing states last month, Fifth district states used 158,124 bales, or 55.89 per cent, compared with 59.04 per cent of South ern consumption attained by Fifth district mills in De cember 1932. Spindles active at some time during December 1933 numbered 24,840,870, compared with 25,423,348 in November 1933 and 23,799,742 in De cember 1932. Tobacco Marketing North Carolina tobacco markets sold 55,684,528 pounds of growers’ tobacco in December 1933, com pared with 23,723,024 pounds sold in December 1932. Total sales this season to January 1, 1934, amounted to 472.223.317 pounds, at an average price of $16.11 per hundred pounds, compared with sales totaling 268,421,876 pounds for $12.21 per hundred sold of the 1932 crop prior to January 1, 1933. Prices received in North Carolina last month averaged $17.25 per hun dred pounds, a much higher figure than $11.02 per hundred received for tobacco sold in December a year ago. Winston-Salem led in sales in December with 8,361,950 pounds, and Wilson ranked second with 7,555.317 pounds. In total sales this season, Greenville leads with 62,648,544 pounds, Wilson ranking second with 62,431,763 pounds and Kinston third with 42,870,837 pounds. Durham led in price in December with an average of $19.26 per hundred pounds. Virginia producers’ sales of leaf tobacco during De cember amounted to 19,499,633 pounds, for an average of $15.60 per hundred, compared with 13,406,192 pounds sold for an average of $9.60 per hundred in December 1932. Total sales for the season to Decem ber 31 were 62,662,182 pounds, approximately the same as the total sales for the entire season last year. Sales of flue-cured tobacco amounted to 16,239,894 pounds at an average price of $16.79 per hundred pounds, which is the highest December average since 1929. In December 1932, total sales of flue-cured tobacco amounted to 7,970,852 pounds, at an average of $8.50 per hundred. Fire-cured markets were open only a few days, consequently sales were much smaller than usual, the total for the month being 1,150,790 pounds compared with 2,298,042 pounds for December 1932. The average price of $6.86 per hundred for fire-cured tobacco in December 1933 compared with $8.18 in De cember 1932 and $4.64 two years ago. Burley sales during December were also smaller than usual as the markets closed after a few days. The total amount sold was 1,837,282 pounds and the average price was $11.91 per hundred, compared with December 1932 sales of 2,890,080 pounds and an average price of $14.08. Sun-cured sales of 271,667 pounds were slightly larger than sales in December 1932 when 247,218 pounds were sold. The average price was $6.78 per hundred pounds last month, compared with $5.98 a year ago and $5.22 two years ago. Warehouse men estimated that 37 per cent of the tobacco sold in December graded good, 40 per cent medium, and 23 per cent common, indicating a much better quality of tobacco than December 1932 sales which graded 19 per cent good, 36 per cent medium, and 45 per cent com mon. MONTHLY REVIEW 6 CROP ESTIMATES Crops Yrs. Maryland ...1933 1932 1931 Cotton (bales) -------------- .1933 1932 1931 Tobacco (lbs.) -------------- _1933 1932 1931 Irish Potatoes (bus.)-------- .. 1933 1932 1931 Sweet Potatoes (bus.)------ ....1933 1932 1931 Oats (bus.) ------------------ _1933 1932 1931 Wheat (bus.) --------------- __1933 1932 1931 Hay (tons) ------------------—1933 1932 1931 Peanuts (lbs.) -------------- —1933 1932 1931 Apples (b u s.)--------------- ......1933 1932 1931 Apples, Commercial (bbls.).—1933 1932 1931 Sorghum Syrup (gals.)— .....1933 1932 1931 Com (bus.) 14,000,000 16.440.000 20.710.000 W . Va. 13.920.000 11.150.000 12.934.000 ---------------- ---------------- 17.710.000 26.272.000 28.077.000 2.700.000 2.852.000 3.360.000 840.000 888.000 2,013,000 1,100,000 1.425.000 2.010.000 6.320.000 4.940.000 9.696.000 529.000 468.000 467.000 4.958.000 2.312.000 5.180.000 2.331.000 3.485.000 3.200.000 ---------------2.356.000 3.036.000 3.552.000 1.798.000 1.276.000 2.373.000 690.000 558.000 651.000 ---------------- ---------------- 1.312.000 1.368.000 3.458.000 219.000 252.000 650.000 4.200.000 4.191.000 12,954,000 700.000 833.000 1,700,000 ---------------- Virginia N. Carolina S . Carolina 36.918.000 26.928.000 43.061.000 38.000 34.000 46.000 90.725.000 55.616.000 102.435.000 8.649.000 9.682.000 14,278,000 3.885.000 3.610.000 4.750.000 3.360.000 3.237.000 4.838.000 7.425.000 6.253.000 13.266.000 992.000 757.000 1,039,000 111.150.000 154.080.000 176.320.000 10.900.000 7,830,000 21.117.000 1,800,000 1.963.000 3.500.000 315.000 200.000 210,000 Crop Estimates The year 1933 was an excellent one for farmers, both production and prices being much better than in 1932 for nearly all crops. The accompanying table of production figures for principal crops covering three years shows the figures by states in detail. Corn pro duction in the Fifth district in 1933 exceeded 1932 production by 23 per cent, and the farm value of the crop was 80 per cent higher. The cotton crop increased 4 per cent, and was worth 66 per cent more. Tobacco production rose 72 per cent, and the value of the tobacco grown rose 122 per cent. Wheat yield was 18 per cent higher in 1933, and the value was 85 per cent above the 1932 value. Hay yielded 17 per cent more last year, and the value of the crop rose 34 per cent, Apples increased in yield by 43 per cent and the aggre gate value of apples rose by 69 per cent. Sorghum syrup increased 5 per cent in yield and 21 per cent in value. Even the crops which declined in quantity pro duction showed increases in aggregate values for 1933. Irish potatoes yielded less last year, but the value of the crop rose by 58 per cent, and sweet potatoes, which 44.252.000 22,808,000 34.830.000 17.885.000 48.072.000 22.994.000 690.000 742.000 716.000 660.000 752,000 1,005,000 518.522.000 85.850.000 293.694.000 39.236.000 479.395.000 69.972.000 7.315.000 1.744.000 6.596.000 1.445.000 8.532.000 3.500.000 7.905.000 4.648.000 7.990.000 6.072.000 6.560.000 3.180.000 3.977.000 7.215.000 4.366.000 7.974.000 4.531.000 9.450.000 3.714.000 592.000 3.572.000 760.000 4.407.000 689.000 553.000 195.000 541.000 210.000 667.000 178,000 197.600.000 9.520.000 276.420.000 10,240,000 308.560.000 9.100.000 5.254.000 279.000 1.825.000 164.000 5.328.000 320.000 337.000 ---------------119.000 280.000 1,800,000 416.000 1,680,000 540.000 2,117,000 486.000 District Farm Value 131.898.000 107.233.000 147.771.000 1.470.000 1.410.000 1.803.000 717.765.000 417.130.000 685.059.000 22.739.000 24.060.000 32.870.000 17.278.000 18.560.000 16.503.000 18,008,000 20.038.000 24.381.000 19.849.000 16.801.000 30,431,000 2.959.000 2.534.000 3.002.000 318.270.000 440.740.000 493.980.000 21.945.000 15.378.000 43.177.000 3.056.000 3.167.000 6.130.000 2.531.000 2.420.000 2.813.000 $ 79,725,000 44.170.000 65.606.000 $ 71,257,000 42.954.000 54.057.000 $110,353,000 49.717.000 59.735.000 $ 22,812,000 14.429.000 19.830.000 $ 9,736,000 7.019.000 8.343.000 $ 10,170,000 6.751.000 9.100.000 $ 17,818,000 9,630,000 17,929,000 $ 34,883,000 26.092.000 36.933.000 $ 8,373,000 6,298,000 10,672,000 $ 14,407,000 8.548.000 18.371.000 $ 6,400,000 5.769.000 8.028.000 $ 1,403,000 1.159.000 1.496.000 also declined in production, rose in value by 39 per cent. The smaller oat crop in 1933 was worth 51 per j cent more than the 1932 crop. Peanuts rose by 33 per I cent in value. Commercial apples, which declined in I total production because of unfavorable weather and | insect damage, rose in farm value by 11 per cent. The chief money crops in the Fifth district were also more valuable in 1933 than in 1931, corn, cotton, tobacco, Irish potatoes, sweet potatoes and oats showing higher values for 1933, while wheat, hay, peanuts, apples, com mercial apples and sorghum syrup showed lower values for the later year. Construction i Building permits issued for work within the cor porate limits of thirty-one Fifth district cities num! bered 1,064 in December 1933, with estimated valua| tion figures of only $1,106,697, compared with 1,333 I permits issued in December 1932, for a valuation total J of $1,465,550. Last month the number of permits de creased 20.2 per cent and valuation figures fell 24.5 per cent in comparison with the low figures reported for MONTHLY REVIEW Building Permits Issued in December 1933 and 1932 CITIES Baltimore, Md........ Cumberland, Md. Frederick, Md........ Hagerstown, Md. .... Salisbury, Md. ---Danville, V a.------Lynchburg, Va....... Norfolk, Va--------Petersburg, Va....... Portsmouth, Va..... Richmond, Va........ Roanoke, V a.------Bluefield, W. Va..... Charleston, W. Va... Clarksburg, W. Va, Huntington, W. Va..... Asheville, N. C.-----Charlotte, N. C.-----Durham, N. C.-----Greensboro, N. C.— High Point, N. C.— Raleigh, N. C.------Rocky Mount, N. C... Salisbury, N. C.------Winston-Salem, N. G Charleston, S. C.----Columbia, S. C.____ Greenville, S. C.— Rock Hill, S. C...... Spartanburg, S. C.. Washington, D. C.— Totals Permits Issued 1932 1933 416 2 6 7 7 6 22 92 2 13 38 12 2 40 9 5 15 13 15 21 6 7 5 2 20 26 18 17 7 9 204 586 0 5 8 5 5 22 81 2 8 42 9 4 76 11 10 17 15 14 15 5 11 2 0 25 28 41 14 9 9 254 Total Valuation 1932 1933 $ 342,120 $ 482,520 0 400 3,500 2,455 12,875 28,800 3,625 10,525 320 1,200 18,271 58,925 60,870 41,345 175 900 3,065 4,475 48,964 43,576 6,764 25,438 108 5.050 49,055 25,261 980 2,100 2,000 7,310 19,376 19,020 20,555 63,846 22,895 27,950 5.591 24,027 23,414 4,850 12,700 9,515 11,590 85 2,025 0 5,050 11,415 10,566 9,230 3,358 142,768 4,060 17,150 5,275 11,825 1,975 1,620 322,830 418,815 $1,106,697 $1,465,550 December 1932. Seventeen of the thirty-one cities re ported higher valuation figures for December than for the corresponding month of the preceding year, but most of these increases were due to very small 1932 figures rather than to large amounts of work planned last month. All three of the largest cities, Baltimore, Washington and Richmond, reported even lower figures for December 1933 than for December 1932. During the entire year 1933, permits issued in the thirty-one reporting cities totaled 21,360, compared with 27,781 permits issued in 1932 and 34,484 permits in 1931. Estimated valuation figures last year totaled only $20,728,673, compared with $35,613,841 in 1932 and $80,739,801 in 1931. 7 Contracts awarded in December for construction work in the Fifth district, including both rural and urban projects, totaled $15,453,761, compared with $14,565,990 awarded in November 1933 and $12,584,650 in December 1932, according to figures collected by the F. W. Dodge Corporation. Of the awards in December 1933, $2,064,426, or 13.4 per cent, was for residential work, compared with $1,673,280, or 13.3 per cent, for this type of work in December 1932. Annual figures for 1933 on contracts awarded in the Fifth dis trict total $102,465,338, a decrease of 34.9 per cent in comparison with contracts totaling $157,483,234 award ed in 1932. Retail Trade, 31 Department Stores___________ Richmond Baltimore Washington Other Cities District December 1933 sales, compared with sales in December 1932: +16.3 + 6.8 + 4.0 +15.1 + 7.4 Total sales during 1933, compared with sales in 1932: + .9 — 4.0 — 7.3 — 1.9 — 4.6 Dec. 31, 1933, stocks, compared with stocks on Dec. 31, 1932: + 8.6 +15.5 +12.4 — 8.1 +11.1 Dec. 31, 1933, stocks, compared with stocks on Nov. 30,1933: —22.5 —22.5 —25.1 —24.2 —23.7 Number of times stocks were turned in December 1933: .594 .454 .518 .481 .495 Number of times stocks were turned during the year 1933: 4.13 3.577 3.631 3.13 . 3.606 Percentage of December 1, 1933, receivables collected in Dec.: 29.6 23.1 27.5 28.0 25.7 W holesale Trade, 59 Firms 21 # 7 6 13 Groceries Dry Goods Shoes Hardware 12 Drugs December 1933 sales, compared with sales in December 1932: + 4.8 +232 —28.8 +60.3 + 6.3 December 1933 sales, compared with sales in November 1933: —13.1 —41.3 —55.6 + .1 + 3.3 Total sales in 1933, compared with sales in 1932: + 72 +32.6 +20.8 +31.1 — 5.8 Dec. 31, 1933, stocks, compared with stocks on Dec. 31, 1932: +14.5(8*) +53.3(3*) +97.9(4*) +17.7(7*) Dec. 31, 1933, stocks, compared with stocks on Nov. 30, 1933: —17.8(8*) + 6.7(3*) +12.5(4*) — .6(7*) Percentage of Dec. 1, 1933, receivables collected in December: 76.4(12*) 46.1(4*) 69.2(6*) 44.6(11*) 55.9(8*) * Number of reporting firms. (Compiled January 20, 1934) MONTHLY REVIEW 8 BUSINESS CONDITIONS IN THE UNITED STATES (Compiled by the Federal Reserve Board) Industrial activity, as measured by the Federal Re serve Board’s seasonally adjusted index, showed an in crease in December, following upon four months of de cline. Factory employment declined somewhat, while employment by public agencies showed a considerable increase. vember by less than the usual seasonal amount. Dollar value of sales by department stores showed an increase slightly larger than is usual for December. Production and Employment The foreign exchange value of the dollar which had fluctuated around 64 per cent of parity from the end of November to January 13, declined to 62 per cent on Jan uary 17, and subsequently advanced to a range from 62 to 63 per cent. The Board’s index of industrial production, which is adjusted to allow for seasonal variation, advanced from 73 per cent of the 1923-1925 average in November to 74 per cent in December. For the fourth quarter of 1933 as a whole the volume of industrial output was 13 per cent larger than for the corresponding period of 1932. Activity in the steel industry, contrary to seasonal tendency, increased considerably in December and there was also an increase in the output of automobiles. Shoe production declined by an amount smaller than is usual in December. At textile mills, activity declined further by considerably more than the usual seasonal amount to about the low level of last spring. The number of employees at factories declined be tween the middle of November and the middle of Decem ber by somewhat more than the usual seasonal amount, reflecting chiefly reduction in working forces at cotton, woolen and silk mills and at clothing factories. At auto mobile factories there was a substantial increase in em ployment. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, increased further in December and the first half of January. There was a large increase in contracts awarded for public works and private construction also increased. In the fourth quar ter of 1933 as a whole construction contracts in 37 States totaled $500,000,000 as compared with $300,000,000 in the last quarter of 1932. Distribution Freight car loadings, particularly of miscellaneous freight, declined in December as compared with No Dollar Exchange Prices Wholesale commodity prices, which had shown a slight decline between the middle of November and the third week of December, advanced in the following month, reflecting chiefly increases in the prices of farm products and foods. Cotton and grains showed marked increases and livestock prices also advanced somewhat. Bank Credit At the reserve banks the seasonal return of currency from circulation after the holiday demand amounted to about $250,000,000 from the high point on December 22 to January 17. A large part of the funds arising from this inflow of currency to the reserve banks was added to the reserve balances of member banks, with the con sequence that these balances increased by January 17 to $900,000,000 in excess of legal requirements. The return flow of currency from circulation and the reduction of balances held by commercial banks for the United States Government were reflected in an increase of demand deposits at reporting member banks. Loans of the banks declined between December 13 and January 17, while holdings of United States Government and other securities increased. Short-term money rates in the open market, which had shown a slight advance in December, declined in January to the previous level.
