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MONTHLY

REVIEW

CREDI T, B U S I N E S S AND A G R I C U L T U R A L CONDI T I ONS

FEDERAL RESERVE BANK OF RICHMOND

RICHMOND, VIRGINIA

JANUARY 31, 1936

A N N U A L SU M M A RY
Debits to Individual Accounts (2 3 Cities).......................
Number of Commercial failures, 5th District...................
Liabilities Involved in Failures, 5th District...................
Cotton Consumption, 5th District Mills (Bales).............
Cotton Grown in Fifth District (Bales)...........................
Tobacco Grown in Fifth District (Pounds).....................
Building Permits for All Work (31 Cities).....................
Value of Permits for All Work (31 Cities)...................
Value of Contracts Awarded, 5th District.........................
Total Sales, 31 Department Stores, 5th District.............
Total Sales, 58 Wholesale Firms in 5 Lines.....................
Bituminous Coal Production, U. S. (Tons).....................

1935

$ 12 ,211 ,838,000
49 6

$

$
$
$
$

7,940,557
2 ,629,282
1 ,360,000
774 ,615,000
27,255
52 ,943,883
203 , 195,274
101 ,823,406
54 ,092,012
368 , 120,000

1934

1929

$ 10 ,963 ,718,000

$ 16 ,673 ,842,000

$

$
$
$
$

650
11 ,025,607
2 ,451,293
1 ,345,000
580 . 183.000
21 4 4 ^
30 ,876,926
185 ,791,734
94 ,313,531
54 ,393,066
359 .368.000

$

$
$
$
$

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
6 3 ,287,820
534 .989.000

OME important indicators of the
showed a decline in valuation of 60
volume of trade, industry and ag­
per cent from the 1929 valuation. Con­
tracts actually awarded in 1935 for all
riculture in 1935 and 1934 in the Fifth
types of consrtuction, including rural
Federal reserve district are included in
as well as urban projects, rose 9 per
the above table, and figures for the
year preceding the depression, 1929 ,
cent above the 1934 figures, but were
are also included for comparison. The
47 per cent less than contracts awarded
figures show that distinct progress was
in 1929 . Bituminous coal production
made in 1935 toward restoration of
in the United States in 1935 gained 2.4
pre-depression activity, though in most
per cent over 1934 production, but was
^Kj*Si>*c$nt below the tonnage mined
lines the level of activity was still con­
siderably below that of 1929 . Debits
\ in *1929.
p^rtment store sales in
’ * 1^35 , a s i n . the business done
to individual accounts figures, reflectby 31 stores, &icepripiti 1934 sales by 8
nig transactions through the banks of
the district, increased 11 per cent in
•
c.ent^.TQtal *sa»Jfes\iast year by 58
.
- - j./^olfeSafo'fiVihs in 5
lacked 1 per
1935 over 1934 , but were 27 per cent
/
•••* •*#(it!r*o3 Quailing 1934 *«$a4 although
*
£s,
below the record year 1929 . The num,
ber of commercial failures in the district d e c l i n e d * * 3 ©£ the 5 lines registered gains in 1935 . **<jWhe whole,
r t{veP£*go oil*:?*e&2 £br agriculture in the
pre cent last year in comparison with 1934 , and also
CasK i returns per pound or
showed a drop of 65 per cent under 1929 failures. Lia- Fiffth? fifetrici,*
biities involved in 1935 insolvencies were 28 per cent bushel for nearly all crops were lower than returns in
less than 1934 liabilities and 68 per cent under 1929 1934 . Production exceeded 1934 figures and also fiveliabilities. Cotton consumed in Fifth district mills year averages, but prices for all leading farm products
last year rose 7 per cent above 1934 consumption, but were materially lower in 1935 .
Reviewing developments of December and early
was 14 per cent less than the amount of cotton used
in 1929 . Building permits were issued in 1935 for 71 January, most changes were seasonal in nature. At
per cent more work than in the preceding year, but the reserve bank rediscounts and industrial loans de-

S




MONTHLY REVIEW

2

clined slightly and there was a seasonal drop in Federal
reserve note circulation with the passing of holiday and
crop marketing needs for currency. Member bank re­
serve deposits declined between December 15 and Janu­
ary 15 , in keeping with withdrawals of deposits at mem­
ber banks around January 1. Reporting member banks
increased loans and investments in securities last month,
while their cash in vault and deposits declined. Debits
to individual accounts figures in four weeks ended
January 8, 1936 , showed an increase of 2.5 per cent
over debits in the preceding four weeks, ended Decem­
ber 11, a seasonal increase, and also showed a gain of
13.1 per cent over debits in four weeks ended January
9 , 1935 . Employment showed practically no change
during the past month. Coal production in December
exceeded production in November and also was above
the output in December 1934 . Textile mills in the
Fifth district showed a seasonal decline last month in
cotton consumption in comparison with consumption in
November, but more cotton was used than in December
1934 . Building permits issued in 31 Fifth district cities
in December 1935 exceeded in estimated valuation those
issued in December 1934 by 125 per cent, and contracts
actually awarded for construction work in the district
exceeded those awarded in December last year by 114
per cent. Retail trade in the Fifth district in Decem­
ber, as reflected in department store sales, was 7.5 per
cent above the volume of trade in December 1934 , and
all five wholesale lines for which data are available
reported larger sales in the 1935 month than a year
earlier.
Reserve Bank Statement
ITEMS

Jan. 15
1936

000 omitted
Jan. 15
Dec. 15
1935
1935

313
72 $
58 $
Rediscounts held ...................... $
209
175
173
Open market paper..................
1,695
4,443
4,111
Industrial advances ..................
0
10
0
Foreign loans on gold...............
103,563
Government securities ............. 116,716 116,716
105,780
Total earning assets............... 121,060 121,414
186,082
158,406
Circulation of Fed. Res. notes.. 174,130
125,292
166,674 173,241
Members’ reserve deposits....
188,530
Cash reserves ......... ................. 236,062 252,878
64.93
68.91
67.05
Reserve ratio ...........................

The several changes mentioned reduced the cash re­
serves of the Federal Reserve Bank of Richmond by
$ 16 ,816,000 between the middle of December and the
middle of January, but lowered the ratio of cash re­
serves to note and deposit liabilities combined by only
1.86 points.
During the year between January 15 , 1935 , and the
same date this year, rediscounts for member banks at
the Federal Reserve Bank of Richmond declined by
$ 255,000 and the portfolio of open market paper de­
creased by $ 34 ,000 . On the other hand, loans direct
to industry, authorized under Section 13 -B of the Fed­
eral Reserve Act, as amended, rose by $ 2 ,416 ,00 0 , and
holdings of Government securities increased by $ 13,153 ,000 . The changes in earning assets resulted in a
net increase of $ 15 ,280,000 during the year. Federal
reserve note circulation rose by $ 15 ,724,000 between
January 15 last year and this, and member bank reserve
deposits increased by $ 4 1 ,382 ,00 0 .
The several
changes in the statement brought an increase of $ 47 ,532,000 in cash reserves of the Federal Reserve Bank
of Richmond, and the ratio of cash reserves to note
and deposit liabilities combined rose by 2.12 points.
Statement of 41 Member Banks
ITEMS

Jan. 8
1936

000 omitted
Jan. 9
Dec. 11
1935
1935

Loans on stocks and bonds (in­
cluding Governments) .......... $ 71,693 $ 71,008
All other loans......................... 132.898 128,487
Total loans and discounts.... 204.591
199,495
396.592 363,270
Investments in securities...... .
Reserve bal. with F. R. Bank.... 110,153 122,024
18,425
Cash in vaults...........................
16,694
Demand deposits ................ ..... 389,234 * 401,483
Time deposits ........................... 189,803 190,123
Borrowed from F. R. Bank....
0
0

$ 76,170
120,945
197,115
373,531
82,508
16,118
359,853
188,259
0

The accompanying table contains figures for the most
important items on the composite statement of con­
dition for 41 reporting member banks in 12 Fifth dis­
trict cities for three dates, January 8, 1936 , December
11 , 1935 , and January 9 , 1935 , thus affording oppor­
tunity for comparison of the latest figures with those
on the corresponding dates a month and a year earlier.
It should be understood that the figures in the table
, ••• ••«••• •••
are not the highest or lowest which occurred during the
Total earning assets of
Richmond decline^ b^j^5 ^ ^ 60 *V<ff\^^h#
T)^(^nibfcr 15 , periods covered, but represent the condition of the
banks on the report dates only.
1935 , and Januay]yAl5 > 4 ^36 . The portfolio* o*ff
.*
Between December 11 , 1935 , and January 8, 1936 ,
market paper ros^uy*$2,000 during the month, hofilmgsC*
^loans at the reporting banks rose by $ 5 ,0 9 6 ,0 0 0 , loans
of Government \Scurities\5edi4iijeji li»<*JJ§Lijgefl, and
stocks and bonds rising $ 685,000 and all other loans
discounts fpr^^ftember baaks*
$1&,000, in-**
fc
dustrial loans propped by $ 332 ,000 , and foreign loans * $fipf^asing $ 4 ,4 11 ,0 0 0 . Investments in securities rose
on gold decreased by*$i£),£)0Q, tfrc#lasl; n^ned jtero«<3Js- ^ * $ 3 3 ,322,000 during the month, but aggregate reserve
appearing from th^^fej^n^it
J *. fjll. balance of the forty-one banks at the Federal reserve
n
Between December 15 and January 15 there was a bank declined by $ 11 ,871 ,00 0 , and cash in vault de­
seasonal decline of $ 11,952,000 in Federal reserve notes creased by $ 1,731 ,00 0 . Deposits dropped $ 12 ,569,000
in actual circulation. Federal reserve notes always between December 11 and January 8, demand deposits
return from circulation in considerable volume as soon decreasing $ 12,249,000 and time deposits declining
as holiday shopping is done and the marketing season $ 320 ,0 0 0 .
In comparison with condition figures as of January
for agricultural products passes its crest. Member
bank reserve deposits declined by $ 6 ,567,000 in the past 9 , 1935 , those for January 8, 1936 , show increases in
month, but continued far above legal requirements. all items except loans on securities, which dropped







b i n d in g s l i p

LIBRARY
FEDERAL RESERVE BANK OF PHILADELPHIA

Date ....... .................................................................
Binding No..............................................................
Author .....................................................................
Title "W g M &
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Style .... ............................. !...L .1..4 1...:~ .$ J(IL ...*
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Label
EXACT LETTERING

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3

MONTHLY REVIEW

$ 4 ,477,000 during the year. On the other hand, all
other loans rose $ 11 ,9 53 ,00 0 , giving a net increase in
total loans amounting to $ 7 ,476,000 during the year.
Investments in securities, chiefly Government issues,
rose by $ 23 ,061,000 between January 9 last year and
January 8 this year, and aggregate reserve balance of
the reporting banks at the reserve bank increased by
$ 27 ,645,000 during the same period. Cash in vault
totaled $ 576,000 more on the 1936 date. A substantial
increase occurred in deposits during the year, demand
deposits rising by $ 2 9 ,381,000 and time deposits gain­
ing $ 1 ,544 ,000 . None of the reporting banks was
borrowing at the reserve bank on any of the dates in
the table.

Time and Savings Deposits

Time deposits in forty-one reporting member banks
and aggregate deposits in eleven mutual savings banks
in Baltimore totaled $ 394 ,194,334 at the end of De­
cember 1935 , a higher figure than either $ 393 ,958,574
reported at the end of November 1935 or $ 385 ,256,162
at the end of December 1934 . Time deposits in report­
ing member banks declined slightly during December
while savings bank deposits rose. Both member banks
and mutual savings banks registered gains in time and
savings deposits during the year 1935 .

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, Va...............
Durham, N. C.............
Greensboro, N. C........
Greenville, S. C.........
Hagerstown, Md. -----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 Totals

Total Debits During the Four Weeks Ended:
Jan. 8, 1936
Dec. 11, 1935
Jan. 9, 1935

$ 10.352.000

294.818.000
13.054.000
49.842.000
55.450.000
24.826.000
7.193.000
9.904.000
21.745.000
13.787.000
17.190.000
8.052.000
14.554.000
14.085.000
8.267.000
46.013.000
3.842.000
33.791.000
134.995.000
21.916.000
7.495.000
210.501.000
8.770.000
31.995.000

9.349.000
278,253,000
,13,480,000
44.871.000
52.902.000
20.966.000
6.828.000
12.489.000
30.116.000
14.143.000
15.638.000
6.785.000
14.367.000
13.934.000
8.964.000
46.304.000
4.181.000
21.985.000
142.433.000
20.963.000
7.493.000
204.693.000
8.525.000
37.074.000

$1,054,942,000

$1,029,243,000

Annual Totals
1935

1934

115.962.000
3.427.439.000
161.630.000
541.606.000
612.777.000
296.029.000
87.473.000
97.298.000
323.145.000
160.725.000
179.931.000
85.772.000
153.414.000
164.057.000
89.269.000
539.670.000
43.580.000
317.411.000
1.614.347.000
238.852.000

108.583.000
3.137.450.000
137.806.000
500.784.000
541.310.000
208.459.000
73.626.000
92.015.000
337.711.000
131.669.000
160.664.000
73.968.000
138.926.000
161.150.000
80.152.000
505.050.000
38.970.000
288.112.000
1.499.113.000
230.126.000

173*629*000
8 202.000
28.633.000

2*458*594,000
109.383.000
393.474.000

2,069,526!000
96.983.000
351.565.000

$ 932,491,000

$12,211,838,000

$10,963,718,000

$

8.774.000
265,156,000
12,626,000
50.162.000
44.546.000
18.025.000
6.434.000
8.482.000
18.356.000
12.213.000
13.529.000
6.205.000
12.229.000
13.550.000
7.115.000
40.041.000
3.347.000
36.583.000
124,909,000
19.745.000

.

♦Spartanburg, S. C., figures not included in Totals.

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 during three equal periods of
four weeks. In addition, total debits are shown by
cities and the district for the calendar years 1935 and
1934 .
Debits figures for four weeks ended January 8,
1936 , showed a smaller than seasonal increase amount­
ing to $ 25 ,699 ,000 , or 2.5 per cent, over aggregate
debits in the preceding four weeks, ended December
11 , 1935 , the increase being due in part to holiday trade
but principally to the large volume of annual payments
falling due on January 1 . Of the twenty-three report­
ing cities, fourteen reported higher figures for the more
recent period, while nine cities failed to show the
seasonal increase. The declines in Danville and Dur­
ham occur nearly every year, and are due in part to
holiday suspension of tobacco marketing. Of the six
largest cities in the District, Baltimore, Washington,




Charlotte and Huntington reported larger debits for
the more recent four weeks, while Richmond and Nor­
folk reported lower figures.
In comparison with debits aggregating $ 932 ,491,000
reported for the four weeks ended January 9 , 1935 , this
year’s figures for the corresponding period show an
increase of $ 122 ,4 5 1 ,0 0 0 , or 13.1 per cent, all of the
twenty-three cities increasing this year except Charles­
ton, W. Va., and Raleigh, N. C.
Total debits in the twenty three reporting cities for
the calendar year 1935 showed an increase of $ 1,248 ,120 ,000 , or 11.4 per cent, in comparison with total
debits in 1934 . All of the reporting cities except Dur­
ham show higher figure for 1935 than for 1934 . Ag­
gregate debits in the Fifth district last year were higher
than debits in any other year since 1931 .
Employment

Industrial plants in the Fifth district continue active,
and are using more workers than at any other time in

4

MONTHLY REVIEW

several years, but inclement weather interferred with
outside work of all kinds in December and the first
half of January, and extra help taken on for the holi­
day season was dropped after Christmas. Building is
increasing throughout the district, and workmen in
building trades find it easier to secure employment than
a year or two years ago, but little work is done on
farms at this season and agricultural workers are in
poor demand. Many workers in cities were given a
few days work in December and early January on
snow removal jobs, but a larger number of men were
thrown out of work temporarily by the snow and ice
storms.
Coal Production

Bituminous coal production in the United States in
December 1935 was higher than production in Novem­
ber, and also exceeded production in December 1934 .
Last month 34 ,829,000 net tons of bituminous coal were
mined, compared with 33 ,285,000 tons mined in No­
vember and 32 ,526,000 tons brought to the surface
in December 1934 . Total production for the calendar
year 1935 exceeded production in 1934 , approximately
367 .980.000 tons dug comparing with 359 ,368,000 tons
mined in the earlier year. Shipments of coal through
Hampton Roads in December totaled approximately
1 .763.000 tons, and total shipments from January 1
through December totaled 18 ,279,000 tons. Shipments
through Hampton Roads ports totaled 18 ,133,000 tons
in 1934 .
The December 2 8 , 1935 , report of the Bureau of
Mines, Department of the Interior, gave bituminous
coal production by states for the month of November.
West Virginia led all states with 8 ,572,000 tons, Penn­
sylvania ranking second with an output of 7 ,771,000
tons.
Textiles

Operations of textile mills in the Fifth reserve dis­
trict showed a seasonal recession in December in com­
parison with November, but exceeded the rate of
operations of December 1934 . Cotton consumption in
the district in December totaled 234,608 bales, of which
125,006 bales were used in North Carolina mills, 97,675
bales were used in South Carolina mills, and 11,927
bales were used in Virginia mills, all states reporting
higher figures last month than for December 1934 . In
November 1935 the mills in the Carolinas and Virginia
consumed 244,429 bales, and in December 1934 they
used 192,436 bales. Total consumption in the Fifth
district in 1935 showed an increase over 1934 con­
sumption, 2 ,629,282 bales used in 1935 being 7 per cent
more than 2 ,451,293 bales used in 1934 . Consumption
in all months of 1935 except in March, April and May
exceeded consumption in the corresponding months of
1934 . Cotton used in the Fifth district in December
1935 totaled 47.08 per cent of National consumption,
compared with 48.13 per cent in November 1935 and
46.11 per cent in December 1934 , and consumption in
the district during the calendar year 1935 totaled 46.7
per cent of National consumption against 44.5 per cent
in 1934 .




On December 2 1 , the Department of Commerce is­
sued a report on spindles in place, spindles active in
November, total spindle hours of operation in No­
vember, and average hours of operation per spindle
in place in November. On November 3 0 , 1935 , there
were 2 9 ,582,594 spindles in place in the United States,
North Carolina leading with 6 ,123 ,322 , or 20.7 per
cent of the total, South Carolina ranking second with
5 ,814,094 spindles, or 19.7 per cent, and Massachusetts
third with 5 , 106,640 spindles, or 17.3 per cent. The
Fifth district as a whole had 42.5 per cent of total
spindles in place in the United States at the end of
November. In actual spindle hours of operation, South
Carolina led all states for November with 1,784 ,491,191
hours, or 25.9 per cent of the National total of 6 ,8 9 7 ,420,223 hours, and North Carolina ranked second with
I ,662 ,730,586 hours, or 24.1 per cent. Georgia ranked
third in actual spindle hours of operations, with 13.8
per cent of total hours, although that State had only
I I .4 per cent of all spindles in place. Massachusetts,
with 17.3 per cent of spindles in place, showed only 10.7
per cent of total hours of operation in November. The
Fifth district, with 42.5 per cent of total spindles in
the United States in November, showed 52.2 per cent
of total hours of operation. In actual hours of opera­
tion per spindle in place, South Carolina with an aver­
age of 307 hours per spindle was in the lead, while
North Carolina ranked fifth with 272 hours and Vir­
ginia seventh with 241 hours. The average hours of
operation for the United States was 233 per spindle
in place.
Cotton Statistics

Spot cotton prices during the month between De­
cember 13 and January 17 were unsettled by the
Supreme Court decision on the Agricultural Adjust­
ment Act and prices declined materially soon after the
decision, but later the market rallied and prices recov­
ered about all they had lost. On December 13 , the
average price for middling grade upland cotton on ten
Southern markets was 11.73 cents per pound, but dur­
ing the following week, ended December 2 0 , the aver­
age price dropped to 11.56 cents. From this point the
price rose to 11.60 cents per pound on December 27 and
to 11.75 cents on January 3 , but as a result of the A A A
decision on January 6 cotton prices dropped to 11.32
cents on January 10 . Hope for new legislation to re­
place the A A A brought the average price of cotton
back to 11.72 cents per pound on January 17 , the latest
date for which official quotations are available.
Cotton consumption in American mills in December
totaled 498,329 bales, according to the report of
the Bureau of the Census made public on January 14 .
This figure shows a seasonal decrease from 507,836
bales consumed during the month of November, but is
19 per cent more than 417,344 bales used in December
1934 . Total consumption during the five months of
the present cotton season amounted to 2 ,415,888 bales,
compared with 2 ,134,094 bales consumed during the
five months ended December 3 1 , 1934 . Cotton on hand
at manufacturing establishments on December 31 , 1935 ,
totaled 1,427,484 bales, compared with 1,346,127 bales
1935

MONTHLY REVIEW

held on November 3 0 , 1935 , and 1 ,301,271 bales held
on December 31 , 1934 . Bales in public warehouses and
compresses numbered 8 ,386,784 at the end of Decem­
ber, against 8 ,629,812 bales at the end of November and
9 ,567,935 bales on December 31 , 1934 . Exports of
cotton totaled 877,480 bales in December, compared
with 1, 134,874 bales sent abroad in November 1935 and
504,685 bales in December 1934 , and exports in the five
months of the present cotton year—August 1-December
31 , inclusive—totaled 3 ,452,266 bales against 2 ,398,827
bales shipped over seas in the corresponding five months
ended December 3 1 , 1934 . Imports last month totaled
12,738 bales, compared with 9,982 bales imported in
December 1934 . Consumption of cotton in the cotton
growing states totaled 415,914 bales in December, com­
pared with 426,794 bales used in November and 329,993
bales in December 1934 . Last month’s consumption in
the cotton growing states amounted to 83.46 per cent
of National consumption, compared with 79.07 per cent
of National consumption used in the cotton growing
states in December a year ago. Of the 415,914 bales
consumed in the cotton growing states last month, Fifth
district states used 234,608 bales, or 56.41 per cent,
compared with 58.32 per cent of Southern consump­
tion attained by Fifth district mills in December 1934 .
Spindles active at some time during December 1935
numbered 2 3 ,391,370 compared with 2 3 ,193,734 in No­
vember 1935 and 25 ,072,972 in December 1934 .
Tobacco Marketing

Tobacco markets in South Carolina closed before
December, and markets in North Carolina and Virginia
took long holidays for Christmas.
North Carolina auction markets sold 2 7 ,863,693
pounds of tobacco for producers in December 1935 ,
compared with only 12 ,415,483 pounds sold in Decem­
ber 1934 , and total sales for the present season prior
to January 1 totaled 521 ,691,409 pounds, compared with
388 ,362,378 pounds sold of the 1934 crop before Janu­
ary last year. The average price paid for North Caro­
lina tobacco in December 1935 was $ 17.30 per hundred
pounds, against $ 17.82 per hundred in December 1934 .
The average price for the current selling season in
North Carolina, to December 31 , was $ 20.72 per hun­
dred, and the crop is the largest on record except for
the 1929 yield. In 1934 the average price to December
31 was $ 28.70 per hundred pounds, but in 1933 it was
approximately $ 16.00 and in 1932 it was only $ 12 .0 0 .
Winston-Salem led in sales in December with 7 ,089,581
pounds, and Durham ranked second with 3 ,751,890
pounds, but Oxford led the flue-cured markets in aver­
age price paid with $ 18.94 per hundred pounds. Ashe­
ville, the only burley market in North Carolina, sold
1 ,676,612 pounds last month for an average of $ 21.24
per hundred pounds.
Virginia tobacco sales during December 1935
amounted to 20 ,291,746 pounds for an average of
$ 16.50 per hundred pounds, according to warehouse re­
ports to the Commissioner of Agriculture. During
December 1934 sales amounted to 17 ,222,611 pounds at
an average price of $ 16.88 per hundred. Total pro­
ducers' sales to December 31 were 96 ,062,955 pounds,
and the average price paid was $ 20.81 per hundred,




5

compared with 79 , 198,197 pounds sold for an average
of $ 27.35 per hundred pounds during the corresponding
period in 1934 . Flue-cured tobacco sales in December
totaled 12 ,898,850 pounds for $ 17.55 per hundred,
compared with 9 ,315,429 pounds sold for $ 19.39 per
hundred pounds in December 1934 . Total sales of
this type through December amounted to 8 6 , 133,882
pounds, at $ 21.62 per hundred, and during the same
period a year earlier 6 9 ,663,932 pounds were sold, for
$ 29.19 per hundred. Sales of fire-cured tobacco in
December amounted to 3 ,241,620 pounds, at $ 10.48
per hundred pounds, compared with December 1934
sales of this type totaling 4 ,931,816 pounds, at $ 12.04
per hundred. Total sales of fire-cured tobacco through
December amounted to 5 ,777,797 pounds, at $ 10.75 per
hundred, compared with 6 ,558,899 pounds sold to De­
cember 31 , 1934 , for an average of $ 12.54 per hundred.
Burley markets opened on December 3 and sold 3 ,576 ,231 pounds for $ 19.31 per hundred pounds, the highest
December price for this type of tobacco since 1929 .
During December 1934 , Virginia markets sold 2 ,429,567
pounds of burley tobacco for an average of $ 18.80 per
hundred pounds. Sun-cured tobacco sold last month
totaled 575,045 pounds, and the average price was $ 9.49
per hundred, while 545,799 pounds of this type were
sold in December 1934 for $ 9.27 per hundred. This
type also brought the highest December price since 1929 .
Warehousemen estimated that December 1935 sales
graded 24 per cent good, 36 per cent medium, and 4 0
per cent common, compared with December 1934
grading of 22 per cent good, 39 per cent medium, and
39 per cent common. Danville led individual markets
in December sales with 7 ,300,916 pounds, South Bos­
ton ranking second with 2 ,952,308 pounds, and Dan­
ville also led the flue-cured markets in average price
paid with $ 18.41 per hundred.
Tobacco Manufacturing

On January 2 1 , the Commissioner of Internal Reve­
nue issued a report on taxes collected in December 1935
on manufactured tobacco products. December pro­
duction of cigarettes in the United States numbered
9 ,8 4 0 ,823 ,2 9 0 , compared with 9 ,2 0 9 ,839,473 cigarettes
manufactured in December 1934 . Smoking and chew­
ing tobacco production increased from 20 ,032,813
pounds in December 1934 to 2 0 , 191,573 in December
this year. Cigars manufactured declined from 317 ,563,442 in December 1934 to 312 ,973,813 in December
1935 . Snuff production rose from 2 ,675,919 pounds1
to 2 ,904,780 pounds during the year. In the month of
December 1935 , taxes on cigarettes totaled $ 29 ,525 , 153 ,
compared with $ 2 7 ,632,010 collected in the correspond­
ing month of the preceding year. Taxes on smoking
and chewing tobacco increased during the same period
from $ 3 ,606,035 to $ 3 ,6 3 4 ,6 4 3 , and cigar taxes fell
from $ 868,364 to $ 818 ,0 1 2 . Combined taxes to the
Treasury on all forms of tobacco manufacture totaled
$ 34 ,500,668 in December 1935 and $ 3 2 ,588,074 in De­
cember 1934 , an increase this year of 5.9 per cent.
Agricultural Notes

The year 1935 in the Fifth district was marked by
increased yields of nearly all leading crops, with mate­

6

MONTHLY REVIEW

rially lower prices per unit. As a result of this com­ the total value of the crop rose only 4 / 10ths of 1 per
bination, farmers received less money for more pounds cent. There was a gain of 11 per cent in the tonnage
or bushels. The accompanying table of production of hay in the district in 1935 , but the aggregate value
figures for principal crops covering two years and the of the crop declined 19 per cent. Peanut production
five-year average shows the figures by states in detail. increased 4 per cent, but the value of the nuts fell 4
Corn production rose 11 per cent over 1934 production, per cent. The total apple crop rose 63 per cent in
but the farm value of the crop declined 7 per cent in 1935 , but in spite of the fruit being of good quality
1935 . Cotton production was 1 per cent above 1934 the total value of the crop rose only 20 per cent. The
production, but the aggregate value of the crop de­ commercial apple yield increased 52 per cent in 1935 ,
clined 7 per cent. Tobacco yield was 34 per cent but the crop brought only 9 per cent more than the
higher than the 1934 yield, but the price was so much 1934 crop. Sorghum syrup decreased 5 per cent in
lower per pound that the total value of the tobacco production in 1935 , and the value of the syrup dropped
rose by only 2 per cent. Irish potatoes declined in pro­ by 1 per cent, this being the only agricultural product
duction 14 per cent in 1935 , but the crop in the United for which the unit price was higher in 1935 than in
In comparison with average production figures
States was so large that the total value of the Fifth 1934 .
district crop declined 1 1 per cent under the value of in the Fifth district in five base years 1928 - 1932 , pro­
the 1934 crop. The sweet potato yield rose 1 per cent, duction figures in 1935 were larger for all important
but the value fell 11 per cent. The oats crop rose 28 crops except Irish potatoes. The relatively low yield
per cent in output, but the value of the crop increased of Irish potatoes was due to reduced acreage, as a
only 6 per cent. Wheat production in the Fifth dis­ result of disastrously low prices for potatoes during the
trict was 11 per cent larger in 1935 than in 1934 , but i past two or three years.
Virginia

W .V a.

39.884.000
35.794.000
31.346.000

13.216.000
12.128.000
11,056,000

N. Carolina

S. Carolina

District

Farm Value

49.780.000
47.580.000
39.119.000

25.592.000
20.760.000
20.151.000

147.407.000
133.257.000
116.711.000

$107,710,000
115,731,000

30.000
35.000

585.000
629.000

745.000
681.000

1.360.000
1.345.000

$ 76,801,000
82,923,000

Tobacco (lbs.) ........................1935 26.350.000
1934 23.418.000
Av. 1928-1932 24.018.000

95.500.000
80.155.000
98.916.000

1.980.000 561.060.000
1.755.000 417.975.000
4.193.000 468.526.000

89.725.000
56.880.000
75.823.000

774.615.000
580.183.000
671.476.000

$157,644,000
154,510,000

Irish Potatoes (bus.)...... ........ 1935
1934
Av. 1928-1932

3.135.000
3.267.000
3.339.000

11.352.000
13.433.000
14.447.000

2.924.000
3.120.000
3.484.000

9.130.000
10,672,000
7.573.000

1.926.000
2.625.000
2.731.000

28.467.000
33.117.000
31.574.000

$ 18,428,000
20,797,000

Sweet Potatoes (bus.)..... ....... 1935
1934
Av. 1928-1932

840.000
750.000
1,374,000

4.060.000
3.910.000
4.316.000

8,000,000
8.856.000
6.819.000

5.192.000
4.428.000
4.569.000

18.092.000
17.944.000
17.078.000

$ 11,754,000
13,144,000

Oats (bus.) — ........................ 1935
1934
Av. 1928-1932

1.372.000
1.320.000
1.547.000

2.442.000
2.398.000
3.267.000

2.044.000
2.052.000
3.239.000

4.730.000
3.519.000
3.595.000

9.768.000
6.596.000
8.080.000

20.356.000
15.885.000
19.728.000

$ 10,696,000
10,111,000

Wheat (bus.) ........................... 1935
1934
Av. 1928-1932

8.323.000
7.934.000
8.648.000

8.714.000
8.092.000
9.220.000

2.538.000
1.974.000
1.643.000

5.198.000
4.340.000
3.653.000

980.000
765.000
575.000

25.753.000
23.105.000
23.739.000

$ 22,341,000
22,261,000

Hay (tons) — _____________ 1935
1934
Av. 1928-1932

561.000
578.000
458.000

1,113,000
948.000
858.000

724.000
502.000
615.000

652.000
699.000
561.000

210,000
201,000
180,000

3.260.000
2.928.000
2.672.000

$ 38,479,000
47,380,000

273.700.000
272.800.000
264.200.000

15.400.000
12.800.000
12,068,000

449.750.000
432.600.000
423.488.000

$ 14,607,000
15,282,000

276.000
244.000
251.000

28.968.000
17.776.000
25.822.000

$ 18,910,000
15,783,000

15.749.000
10.343.000
13.845.000

$ 9,980,000
9,174,000

2.230.000
2.356.000
1.982.000

$ 1,392,000
1,412,000

Crops

Yrs.

Maryland

Corn (bus.) ............... ............. 1935 18.935.000
1934 16.995.000
Av. 1928-1932 15.039.000
Cotton (bales) -.................... .....1935
1934

160.650.000
147,000,000
147.220.000

Peanuts (lbs.) ...................... ...1935
1934
Av. 1928-1932
Apples (bus.) .......... ............ ....1935
1934
Av. 1928-1932

2.412.000
1.102.000
2,053,000

16.695.000
9.275.000
13,160,000

5.610.000
3.630.000
6.947.000

3.975.000
3.525.000
3.411.000

Apples. Commercial (bus.)...... 1935
1934
Av. 1928-1932

1,200,000
615,000
1,286,000

10,710,000
6.562.000
8.228.000

3.060.000
2.475.000
3.690.000

779.000
691.000
641.000

Sorghum Syrup (gals.)........... 1935
1934
Av. 1928-1932




------------

280,000
335.000
161.000

1.470.000
1.650.000
1.428.000

480.000
371.000
393.000

MONTHLY REVIEW
Construction
Building Permits Issued in December
1935 and 1934
CITIES

Permits Issued
1934
1935

472
Baltimore, Md............
Cumberland, Md.........
5
Frederick, Md............
10
Hagerstown, Md........
23
Salisbury, Md...... ......
3
Danville, Va..............
18
Lynchburg, Va. .........
26
Norfolk, Va..............
83
Petersburg, Va...........
0
Portsmouth, Va. .......
11
Richmond, Va..... ......
80
36
Roanoke, Va..............
3
Bluefield, W. Va.
.
Charleston, W. Va...
115
Clarksburg, W. Va...
11
Huntington, W. Va...
Asheville, N. C.......... ■'"16
62
Charlotte, N. C.........
Durham, N. C...... .....
16
Greensboro, N. C.......
40
High Point, N. C.....
20
Raleigh, N. C............
8
Rocky Mount, N. C...
6
1
Salisbury, N. C.........
Winston-Salem, N. C.
47
33
Charleston, S. C........
23
Columbia, S. C..........
Greenville, S. C.........
14
20
Rock Hill, S. C
24
Spartanbure, S. C. ...
Washington, D. C...... 435
Totals .................... 1,661
*Not included in total.

Total Valuation
1935
1934

450 $1,113,240
6
15,450
2
4,894
11
16,675
7
8,425
6
68,990
10
14,450
90
142,437
3
0
7
5,335
61
129,583
29
65,950
8
650
100,375
60
1,093
13
11*
6,700
9,098
76
160,338
37
15
31,100
126,542
30
12,688
23
9
21,607
1,660
0
1
590
376,624
41
35.275
47
24
284,230
21
18,620
19,385
13
32,368
25
321
1,476,135
1,446

$4,300,507

$ 390,240
22,544
155
103,755
11,250
4,660
14,450
84,094
2,880
7,425
48,101
5,290
7,329
14,061
44,724
8,230
23,422
50,156
39,300
12,865
27,579
4,535
0
10
49,564
33,446
17,825
15,700
10,220
16,181
843,875
$1,913,866

Building permits issued for work within the cor­
porate limits of thirty-one Fifth district cities num­
bered 1,661 in December 1935 , with estimated valu­
ation figures totaling $ 4 ,300 ,507 , compared with 1,446
permits issued in December 1934 , for a valuation total
of $ 1 ,913 ,866 . Last month the number of permits
increased 15 per cent and valuation figures rose 125
per cent in comparison with the figures reported for
December 1934 . Nineteen of the thirty-one cities re­
ported higher valuation figures for December than for
the corresponding month of the preceding year, but
several of the increases were due to the very small 1934
figures rather than to large amounts of work planned
last month. Permits for single large projects built
with Government funds also accounted for several of
this year’s gains. All of the five largest cities, Balti­
more, Washington, Richmond, Norfolk and Charlotte,
reported higher figures for December 1935 than for
December 1934 . During the entire year 1935 , permits
issued in the thirty-one reporting cities totaled 2 7 ,2 55 ,




7

a higher figure than 21,443 permits issued in 1934 , and
estimated valuation figures last year totaling $ 52 ,943 ,883 exceeded the 1934 total of $ 3 0 ,8 76 ,926 .
Contracts awarded in December for construction
work in the Fifth district, including both rural and
urban projects, totaled $ 2 9 ,2 8 4 ,683 , compared with
$ 13 ,698,303 awarded in December 1934 , according to
figures collected by the F. W. Dodge Corporation. Of
the awards in December 1935 , $ 6 ,953 ,0 28 , or 23.7 per
cent, was for residential work, compared with $ 1 ,875 ,938 , or 13.7 per cent, for this type of work in December
1934 . Annual figures for 1935 on contracts awarded
in the Fifth district total $ 203 , 195 ,274 , an increase of
9.4 per cent in comparison with contracts totaling
$ 185 ,791,734 awarded in 1934 . A considerable part of
the contracts awarded in both years was financed by
grants or loans from public funds.
Retail Trade, 31 Department Stores__________
Richmond

Baltimore

Washington Other Cities

District

December 1935 sales, compared with sales in December 1934:
+ 4.7
+ 3.3
+12.5
+ 4.5
+ 7.5
Total sales during 1935, compared with sales in 1934:
-}- 4.3
-}- 1.8
+15.3
+ 4.5
+ 8.0
Dec. 31, 1935, stocks, compared with stocks on Dec. 31, 1934:
+ 7.5
+ .2
+ 5.6
+ 2 .8
+ 3.4
Dec. 31, 1935, stocks, compared with stocks on Nov. 30, 1935:
—20.4
—19.5
—22.4
—25.3 ,
—21.4
Number of times stocks were turned in December 1935:
.609
.579
.71
.561
.634
Number of times stocks were turned during the year 1935:
4.205
3.999
4.857
3.748
4.341
Percentage of Dec. 1, 1935, receivables collected in December:
33.6
29.6
27.3
29.3
28.9
Note: Sales and stock changes are percentages.

Wholesale Trade, 58 Firms
21

7

6

13

11

Groceries

Dry Goods

Shoes

Hardware

Drugs

December 1935 sales, compared with sales in December 1934:
+ 7.4
+27.0
+ 82
+ 5.6
+ 1.9
December 1935 sales, compared with sales in November 1935:
— 7.5
—30.1
—41.8
—13.9
— 7.8
Total sales in 1935, compared with sales in 1934:
+ 7.2
— 8.7
— 9.8
+ 7.6
+ 1.0
Dec. 31, 1935, stocks, compared with stocks on Dec. 31, 1934:
— 1.5(8*) — 8.6(3*) +19.8(4*) — 2.6(7*)
Dec. 31, 1935, stocks, compared with stocks on Nov. 30, 1935:
— 9.7(8*) — 3.0(3*) +11.8(4*) — 4.0(7*)
Percentage of collections in December to receivables Dec. 1:
109.9(12*)
45.2(4*)
68.5(5*)
47.8(11*)
64.5(7*)
*Number of reporting firms.
percentages.

(Compiled January

2 1 , 1936 )

All figures in the table are

8

MONTHLY REVIEW
BUSINESS CONDITIONS IN THE UNITED STATES
(Compiled by the Board of Governors of the Federal Reserve System)

Industrial production and employment showed &
further increase in December, when allowance is made
for the usual seasonal changes, and distribution of
commodities to consumers was in increased volume.

usual in that month. There was a further subtantial
growth in the volume of awards for publicly-financed
projects and residential ibuilding also increased.
Distribution

Production and Employment

The Board’s seasonally adjusted index of industrial
production, which takes account of the considerable
decline that usually occurs in December, advanced
from 98 percent of the 1923-1925 average in Novem­
ber to 103 percent in December, the highest level
readied by this index since the spring of 1930 . As
in other months during the last half of 1935 , the rise
in the index was due in large part to increases in out­
put of durable manufactures, particularly iron and
steel and automobiles. During the first half of Janu­
ary production of steel and automobiles increased some­
what, following declines in the holiday period. Out­
put at mines was also larger in December than in No­
vember. Activity at cotton and silk textile mills de­
clined less than is usual in December, while at woolen
mills there was a more than seasonal decrease in oper­
ation. Output at shoe factories increased.
Factory employment showed little change between
the middle of November and the middle of December,
when a slight decline is customary. The number em­
ployed continued to increase at steel mills, automobile
factories, foundries and machine shops, and at rail­
road car building plants. There was also an increase
in employment at shoe factories. Seasonal declines
were reported by many other important industries.
Factory payrolls were larger in the middle of De­
cember than a month earlier.
The value of construction contracts awarded in­
creased sharply in December, according to figures of
the F. W. Dodge Corporation, although a decline is




Sales at department stores and variety stores, as
well as sales by chain stores and mail order houses
serving rural areas, showed larger increases than are
usual in December. Freight-car loadings decreased by
less than the usual seasonal amount in December, and
the Board’s adjusted index increased from 66 percent
of the 1923-1925 average in November to 71 percent,
continuing the advance begun last August.
Commodity Prices

The general level of wholesale prices showed little
change during December. In the first three weeks of
January there was some decline in the general index,
reflecting in part lower prices for cotton gray goods,
flour, pork, and silk. Prices of hogs, rubber, and pe­
troleum increased.
Bank Credit

Excess reserves of member banks, which declined
by $ 600 ,000,000 in the third week of December, in­
creased by $ 3 20 ,000,000 during the following five
weeks, reflecting the usual seasonal return flow of cur­
rency from circulation, a decline in Treasury balances
with the Federal Reserve banks, and a small increase
in monetary gold stock. On January 22 excess re­
serves totaled $ 3 ,030 ,000 ,00 0 , as compared with the
peak of $ 3 ,300 ,000,000 on December 11 , 1935 .
Changes in the condition of reporting member banks
in leading cities between December 18 and January 15
reflected largely the influences of seasonal factors.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102