Full text of Economic Quarterly (Federal Reserve Bank of Richmond) : July 1925

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MONTHLY

REVIEW

BUSINESS AND AGRICULTURAL CONDITIONS

SggrjpP
WILLIAM W. HOXTON, C h a irm a n a n d F e d e r a l R e s e rv e A g e n t

RICHMOND, VIRGINIA

JULY 31, 1925

Business in the Fifth District was relatively bet­
ter in June than in May, although some seasonal
decreases in certain lines of trade were noted. The
volume of business done in June was distinctly above
that of June 1924, and correspondents in practically
all lines are optimistic on prospects for the second
half of 1925.
A year ago three outstanding unfavorable factors
were affecting the business outlook, but all of them
show improvement this year. The depression in the
textile industry continues, but is distinctly less
marked than in June 1924. Bituminous coal mines
in West Virginia are producing more coal than at
this time last year, and West Virginia appears to
occupy a stronger position in the coal mining in­
dustry than any other state. The agricultural out­
look is better than last year, when an exceptionally
late spring and excessive rain had delayed planting
and cultivation of the growing crops. June weather
was too dry this year in most of the Fifth District,
and certain sections, especially Virginia, will suffer

serious losses in yields unless general rains fall be­
fore August 1st, but on the whole the dry weather
has probably been more helpful than otherwise this
year. Farmers have their fields free of grass and
weeds, crops have been unusually well cultivated,
and the hot, dry weather favored boll weevil, control.
Other important business indicators point to good
prospects for the fall months. Bank deposits are
higher than ever before, testifying to the purchasing
power of the District, and labor continues well em­
ployed at good wages. Debits to individual accounts
are running well ahead of last year. Business fail­
ures during June in the Fifth District were less in
both number and liabilities than in June 1924. The
Carolinas appear to have fine tobacco crops, and cot­
ton is also more promising than a year ago in both
Carolinas. Building operations continue in record
volume, assuring steady employment for workers in
building trades, and both retail and wholesale sales
in June were in larger volume than during the cor­
responding month last year.

FEDERAL RESERVE BANK OPERATIONS
The volume of member bank borrowing at the Federal Reserve Bank of Richmond declined slightly
during the month between June 15th and July 15th, this year, falling from a total of $52,707,000 to $47,439.000, and member bank reserve deposits at the Reserve Bank rose from $64,040,000 to $66,150,000 be-^
tween the same dates. The volume of Federal Reserve notes in actual circulation declined from $71,206,000
on June 15th to $69,637,000 on July 15th. The changes in the items mentioned caused the cash reserves of
the Federal Reserve Bank of Richmond to rise from $78,208,000 to $83,382,000 within the month, and brought
a corresponding increase in the ratio of cash reserves to combined note and deposit liabilities from 57.40 per
cent on June 15th to 60.97 per cent on July 15th.
On July 15, 1924, member bank borrowing at the Federal Reserve Bank of Richmond totaled $44,934.000, compared with $47,439,000 on July 15th this year; member bank reserves on deposit at the Reserve
Bank totaled $59,425,000 last year and $66,150,000 this year; Federal Reserve notes of the Richmond Bank
in circulation totaled $71,305,000 on July 15th last year and $69,637,000 on the corresponding date this
year; and the cash reserves of the Federal Reserve Bank of Richmond amounted to $88,917,000 last year
compared with $83,382,000 this year. A year ago the ratio of cash reserves to combined note and deposit
liabilities stood at 66.61 per cent in comparison with 60.97 per cent on July 15, 1925.




The National Summary will be found on page 8

CONDITION OF SEVENTY-THREE REPORTING MEMBER BANKS IN SELECTED CITIES
ITEMS
Total Loans and Discounts (including
all rediscounts) ....................................
2 Total Investments in Bonds and Securi­
ties .......................................................
Total Loans and Investments................
Reserve Balance with Federal Reserve
Bank ...................................................
5. Cash in Vaults........................................
6 Demand Deposits ..................................
7. Time Deposits ........................................
8 Borrowed from Federal Reserve Bank....

.

.
.

July 8, 1925

June 10, 1925

July 9, 1924

$ 496,200,000

$ 487,868,000

$ 467,625,000

137.878.000
634.078.000

138.215.000
626.083.000

114.395.000
582.020.000

38.742.000
14.523.000
354.515.000
204.401.000
20.473.000

39.387.000
14.382.000
357.711.000
197.420.000
____17,384,000

35.459.000
13.712.000
332.100.000
172.072.000
____16,270,000

Between June ioth and July 8th, both this year, there was an increase in the volume of credit extended to
customers by the reporting banks, total loans and discounts rising from $487,868,000 to $496,200,000, and
rediscounts of the reporting banks at the Federal Reserve Bank also rose from $17,384,000 to $20,473,000.
Cash in vaults increased from $14,382,000 to $14,523,000 between June ioth and July 8th, and during the
same period time deposits rose from $197,420,000 to $204,401,000, reaching the highest figure on record. On
the other hand, total investments in bonds and securities declined from $138,215,000 on June ioth to $137,878.000 on July 8th, reserve balance with the Federal Reserve Bank of Richmond dropped from $39,387,000
to $38,742,000, and demand deposits declined from $357,711,000 to $354,5I5>000In comparison with the figures reported on July 9, 1924, those reported on July 8th this year show in­
creases in every item. A year ago the seventy-three reporting banks were lending their customers $467,625,000
in comparison with $496,200,000 outstanding on the corresponding date this year. Total investments in bonds
and securities amounted to $114,395,000 last year and $137,878,000 this year. Reserve balance with the Fed­
eral Reserve Bank rose during the year from $35,459,000 to $38,742,000, and cash in vaults rose from $13,712.000 to $14,523,000. Both demand and time deposits show large increases during the year, demand de­
posits rising from $332,100,000 to $354,515,000 and time deposits increasing from $172,072,000 to $204,401,000. On July 9th last year rediscounts at the Reserve Bank totaled $16,270,000, but rose to a total of
$20,473,000 on July 8th this year.

DEBITS TO INDIVIDUAL ACCOUNTS IN LEADING TRADE CENTERS
TOTAL DEBITS FOR THE FOUR WEEKS ENDING
CITIES

Asheville, N. C...........
Baltimore, Md............
Charleston, S. C........
Charleston, W. 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................
Raleigh, N. C.............
Richmond, Va............
Roanoke, Va..............
Spartanburg, S. C.....
Washington, D. C.....
Wilmington, N. C.....
Winston-Salem, N. C.
Totals..........

July 8, 1925
$

29,663,000
427,807,000
19,847,000
34,429,000
42,676,000
16,316,000
9,164,000
10,834,000
21,903,000
21,518,000
21,372,000
11,352,000
24,172,000
20,386,000
7,987,000
65,478,000
33,005,000
128,232,000
25,273,000
13,249,000
242,179,000
16,462,000
31,059,000

$1,274,363,000

July 9, 1924

June 10, 1925
$

24,986,000
379,378,000
20,603,000
30,085,000
43,091,000
16,306,000
8,380,000
7,421,000
22,091,000
19,853,000
19,766,000
8,881,000
24,222,000
17,436,000
7,891,000
63,815,000
25,249,000
109,383,000
24,065,000
12,402,000
219,343,000
16,480,000
30,088,000

$1,151,215,000

$

22,595,000
352,868,000
24,728,000
32,417,000
39,315,000
18,871,000
9,586,000
7,165,000
17,691,000
18,355,000
16,313,000
10,042,000
23,388,000
18,120,000
6,387,000
56,787,000
27,391,000
111,902,000
23,804,000
12,492,000
203,216,000
17,314^000
30,258,000

$1,101,005,000

Debits to individual, firm and corporation accounts in twenty-three leading business centers of the
Fifth District during the four weeks ending July 8, 1925, exceeded debits in the same cities during the four
weeks ending June 10, 1925, by $123,148,000, or 10.7 per cent, eighteen of the twenty-three centers re­
porting larger figures for the later period. The five decreases reported were very small. Total debits in the



2

reporting cities amounted to $1,274,363,000 during the four weeks period ending July 8th, and to $1,151,215,000 during the preceding like period, ending June 10th. A substantial increase during the July period
is seasonal, and is due to half-yearly payments made on July 1st.
In comparison with aggregate debits during the four weeks ending July 9, 1924, debits during the cor­
responding period this year show an increase of $173,358,000, or 15.7 per cent, and this increase represents a
genuine gain in the volume of business transacted during the period under review this year, since both pe­
riods contained the semi-annual payment date. Only four of the twenty-three reporting cities show lower
figures this year than in 1924, and all of the decreases were relatively small. Total debits during the four
weeks ending July 9, 1924, amounted to $1,101,005,000, compared with $1,274,363,000 reported by the
same cities during the corresponding period this year.

SAVINGS DEPOSITS
Total deposits in fourteen regularly reporting mutual savings banks in Baltimore passed the $150,000,000
mark at the end of June for the first time on record, the aggregate of deposits in the fourteen banks at the
close of business June 30, 1925, being $150,220,063. A month earlier, on May 31st, deposits in the same
banks totaled $149,012,030, and on June 30, 1924, the total was $143,760,471. As pointed out in the pre­
ceding paragraph, time deposits in seventy-three regularly reporting member banks amounted to $204,401,000
on July 8, 1925, compared with $197,420,000 on June 10th this year and $172,072,000 on July 9th last year.
This month is the first time on record that time deposits in the group of reporting banks crossed the
$200,000,000 mark.

BUSINESS FAILURES IN JUNE
Dun's Review for July 4th states that June failures numbered 1,745, with liabilities aggregating $36,701,496, a lower number than in any other month this year and the smallest liabilities for all months except
March- since last November. During June 1924 only 1,607 failures were reported and total liabilities were
$34,099,031, or $2,602,465 below the June total this year. For the six months ending with June, defaults
numbering 11,420 contrast with 10,785 for the first half of 1924, but this year’s indebtedness of $239,398,450 is much below the $304,459,959 of last year.
The failure record in the Fifth District in June was better than in June last year, 116 defaults for
a total of $2,196,548 this year comparing favorably with 126 defaults and liabilities of $2,701,150 in June
ig 24-

LABOR— No changes of importance were noted in employment conditions between the middle of June
and the middle of July. Workers are available for all classes of work except agriculture, and in agricul­
ture the supply and demand are more nearly balanced than a year ago, partly because the dry weather of the
past month has enabled farmers to keep their fields clean with less labor than was needed a year ago, when
excessive rain made fields very grassy. There is no marked surplus of workers in any trade ,although there
are some localities in which insufficient work is available to supply all workmen with jobs. Textile workers
are somewhat less fully employed than they were earlier in the year, due to restricted running time in the
textile industry, but the decrease in operations is not marked as yet.
COAL— Bituminous coal production in the United States totaled 37,167,000 net tons during June 1925,
compared with 31,433,000 tons in June last year and 47,054,000 tons in June 1923. West Virginia mines
produced more tonnage than in either 1924 or 1923, and continued to lead all coal producing states, exceed­
ing its nearest rival, Pennsylvania, by approximately a quarter of a million tons per week. West Virginia’s
relatively high production is said to be chiefly due to the large number of non-union mines in the state.
The Geological Survey’s annual report on commercial stocks of coal in the United States as of June
1st contains some interesting data. The report states that only 38,000,000 net tons of bituminous coal were
in reserve on June 1st this year, in comparison with 51,000,000 net tons on the same date last year. Stocks
have fallen steadily since January 1924, when 62,000,000 net tons were on hand. The June 1st stock this
year is the lowest reported for any date since March 1, 1923, and is the lowest for any comparable date on
record. Anthracite coal dealers had slightly more coal on hand on June 1st this year than on June 1st last
year, and 11 per cent more than on March 1, 1925, when stocks had fallen 14 per cent below those of Sep­
tember 1, 1924.
TEXTILES— The volume of business secured by textile mills of the Fifth District continued unsatis­
factory during June, and there were some further reductions in output, the amount of cotton consumed in
the three cotton manufacturing states of the District falling from 213,830 bales in May to 197,998 bales in
June. All of the Fifth District states showed higher consumption figures during June this year than in June
1924, however, North Carolina mills using 105,039 bales compared with 73,997 bales in June 1924, South
Carolina mills using 83,658 bales compared with 62,675 bales, and Virginia mills using 9,301 bales compared
with 6,591 bales. Reductions in operating time this year have generally taken the form of brief vacations,
during which mills were entirely closed, whereas last year many mills were running only three or four days
a week as a regular schedule. There does not appear to be much likelihood of any material improvement
in the textile industry until this year’s cotton crop is sufficiently far advanced to give a rather definite basis for
estimating next fall’s cotton prices.



3

BUILDING OPERATIONS FOR THE MONTHS OF JUNE, 1925 AND 1924.
Premits Issued
0
£
1
2
3
4
5
6

7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

CITIES

New

Repairs

1925 1924
Baltimore, Md..... 674
Cumberland, Md...
33
Frederick, Md.....
3
Hagerstown, Md...
31
Danville Va......... *11
Lynchburg, Va....
19
Norfolk, Va..........
59
Petersburg, Va.....
10
Richmond, Va. ... 179
Roanoke, Va. ..... 139
Bluefield, W. Va...
22
Charleston, W. Va.
34
Clarksburg, W. Va
22
Parkersburg,W.Va
27
44
Asheville, N. C.....
Charlotte, N. C....
70
Durham, N. C.
54
62
Greensboro, N. C.
High Point, N. C...
72
Raleigh, N. C.......
80
Salisbury, N. C....
11
Wilmington, N. C.
16
Winston-Salem, N. C.
62
Charleston, S. C ...
20
Columbia, S. C.....
15
Greenville, S. C...
9
22
Spartanburg, S. C.
Washington, D. C. 230

Altprntinne

1925

1924

1924

1925

1925

1924

Increase or Per Cent
Decrease
of
of
Increase 0
Total
or
2
Valuation Decrease

629 1,172 1,317 $ 3,780,480 $ 3,726,720 $ 648,480 $ 1,250,520 $— 548,280 — 11.0#
40,280 — 21,434 — 14.5
20
111,004
107,935
48
12
15,777
0
1
6,250
0
350 — 13,545 — 68.4
9
19,445
24
61,120
16
9,145
220,000
— 149,735 — 68.1
68
*11
*23,910
*47,680
48,141
22
30
17
68,180
37,936
40,775
22,878
26.6
50
372,030
55,195
31,753 — 56,983 — 14.1
120
115
291,605
12
9,450
8,900
5
9
35,550
25,000
7,800
25.8
102 1,228,924
161
195,202
75,764
94
681,358
667,004
88.1
34
162,652
32,616
15,375
129,794
275,205
111
48
72.9
4
850
900
36
5
284,150 121.0
233,975
518,175
21
7,100
53,350 — 50,619
77,569
47
10
73,200
38.7
33
6,520
26,630 — 34,985 — 36.7
12
68,675
35
53,800
10
38
4
98,680
103,700
2,300
3,500 —
6,220 — 5.8
62
42,370
59
269,872
21,700 —
4,253 — 1.5
37
244,949
19
64
6
23,500
30,660 — 88,330 — 17.0
408,285
489,455
4
14
255,260
1,456,500
6,400
6,850 —1,201,690 — 82.1
7
39
13,140
31,558
106,597
60
30
301,625
176,610
51.2
12
1,305
7,625
40
4
246,735 207.6
364,275
111,220
10
65
13,450
16,775 — 21,522 — 5.6
11
371,000
352,803
4
14
2,100
115,175 207.0
25
4,505
166,300
53,530
5
10
4
11,000
18,200 — 190,700 — 67.3
81,500
265,000
68
87
226,091
78,350
27,810
84,291
60
192,340
38.3
8
13,926
3,375
171,742 605.7
55
8
186,171
24,980
131
15
76
82,041
73,167
45,909 —
1,883 — 1.5
52,900
17
14
21
6,180
10,795 — 770,190 — 80.5
946,375
180,800
18
22
26
11,265
5,535 — 809,143 — 77.7
220,667
1,035,540
469 8,061,685
459
777,697
372,183
4,761,502 116.8
257
3,705,697

Totals......... 2,019 2,015 2,359 2,543 $17,705,484 $15,017,155

$2,098,015

$2,157,088 $ 2,629,256

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

15.39b

* Danville figures not included in totals
—Denotes decrease
NOTE- The figures in the above table reflect the amount of work provided for in the corporation limits of the several
cities, but take no account of suburban developments.

The number of building permits for new construction issued in twenty-seven of the Fifth District’s lead­
ing cities numbered 2,019 in June 1925, compared with 1,951 permits issued in the same cities in May 1925
and 2,015 permits issued in June 1924. The total estimated valuation figure was also higher last month than
during either the preceding month this year or the corresponding month last year, the June 1925 total being
$17,705,484, the May 1925 total $14,954,728, and the June 1924 total $15,017,155. Combined valuation of all
permits, covering both new and alteration or repair work, amounted to $19,803,499 in June 1925, which was
18.5 per cent above the $16,706,021 reported in May 1925 and 15.3 per cent above the $17,174,243 reported
in June 1924. Sixteen of the twenty-seven reporting cities showed larger totals of permits in June this
year than last, but in estimated valuation only eleven cities reported gains during the 1925 month, the larger
District total being due to exceptionally marked increases in Richmond and Washington. Charleston, S. C.,
with a percentage increase of 605.7 per cent, led the District, followed by High Point with a gain of 207.6 per
cent, Salisbury with 207.0 per cent, Bluefield with 121.0 per cent, and Washington with 116.8 per cent.
During the six months ending June 30th, the twenty-seven reporting cities issued 12,283 permits for
new construction, with total valuation of $96,987,915, compared with 12,128 permits and a valuation of $84,890,633 issued for new work during the first half of 1924, an increase this year of 1.3 per cent in number of
permits and of 14.3 per cent in total valuation.

COTTON— Spot cotton prices ruled higher from the middle of June to the middle of July than during
the preceding month. In our June 30th Review we traced the movement of prices in North and South
Carolina for short staple, upland cotton, middling basis, through the week ending June 13th, during which
week the average was 23.14 cents per pound. The following week, ending June 20th, the average price rose
to 23.68 cents per pound, and continued upward to 23.74 cents during the week ending June 27th. There was
a slight recession to 23.60 cents during the week ending July 4th, but the market turned upward again and
attained an average of 23.80 cents the following week, ending July n th. During the week ending July
18th an average of 24.36 cents was reached, the highest weekly average since March 28th.
The department of agriculture’s cotton condition report of July 2nd, based on June 25th conditions, esti­
mated this year’s probable production at 14,339,000 bales, compared with 13,618,751 bales grown in 1924.



4

The condition of the crop was given as 75.9 per cent of a normal. North Carolina’s condition was 77 per
cent, compared with 74 per cent on May 25 this year and 73 per cent on June 25th last year, South Caro­
lina’s condition was 70 per cent, compared with 71 per cent on May 25th and 69 per cent a year ago, and
Virginia’s condition was 83 per cent, compared with 72 per cent a month earlier and 61 per cent last year.
North Carolina’s percentage was the same as the ten year average, South Carolina’s figure was 1 point below
the ten year average, and Virginia’s figure was 3 points above. South Carolina showed the lowest condition
on June 25th in the entire cotton belt except Texas, which had an*average of 64 per cent. North Carolina
acreage is 4 per cent above the 1924 acreage, South Carolina acreage is approximately 10 per cent larger and
Virginia acreage is 10 per cent below that of last year. The national acreage shows an increase of between
8 and 9 per cent. The reduction in Virginia’s acreage is due to unsatisfactory yield and prices in 1924,
and to unfavorable weather at planting time in the spring.
Cotton consumed in American mills during June totaled 493,765 bales of lint, according to the Census
Bureau’s report of July 14th. This figure compares with 531,471 bales used in May 1925 and 350,021 bales
in June 1924. Total consumption for the season to date— August 1, 1924 to June 30, 1925— amounted to
5,694,451 bales, compared with 5,333,455 bales consumed during the eleven months ending June 30, 1924.
Cotton on hand in consuming establishments totaled 1,123,813 bales on June 30, 1925, compared with 1,348,304 bales on hand a month ago and 949,647 bales a year ago. Public warehouses and compresses held
759,945 bales on June 30, 1925, compared with 1,134,920 bales on May 31, 1925, and 882,197 bales on June
30, 1924. Imports of cotton in June totaled 19,957 bales, compared with 14,219 bales in May 1925 and
13,641 in June 1924, while exports during June totaled 217,786 bales, compared with 330,967 bales in May
this year and 230,979 bales in June last year. Totalexports during the eleven months ending June 30th
this year amounted to 7,988,029 bales, compared with 5,560,467 bales sent abroad during the eleven months
ending June 30, 1924. Active spindles in June numbered 32,309,896, compared with 33,147,632 in May
1925 and 29,219,484 in June 1924.
Cotton consumed in cotton growing states in June amounted to 337,651 bales, compared with 358,986
bales used in May and 247,240 bales in June 1924.
June weather was favorable for cotton in North Carolina, and the plants made good growth. Fields are
well cultivated, and stands are fair. Root lice in the Coastal Plain counties have damaged stands, but on the
whole prospects are considered excellent. No weevil damage has yet been reported, but experts expect con­
siderable damage from this source later in the season. In South Carolina conditions vary from excellent to
very poor. The early planted cotton in southern and eastern counties hit favorable seasons, and is now fruit­
ing rapidly. Later plantings encountered the drought, which prevailed from early spring, and there is com­
plaint of poor stands and slow growth in many localities in northern and western counties. The average date
for appearance of first squares and blooms was about a week earlier than in 1924. Weevil emergence was
very high this year, late reports showing about 20 to 1, but poison is being more extensively used than ever
before and the unusually dry and hot weather of June was favorable for weevil control. Virginia cotton
growers had great difficulty in getting a stand because of unfavorable weather in May, and much replanting
was necessary. The stand is better than last year, however, and while the growth of the plant is backward,
the crop has a good color and the fields are well worked. With favorable weather during the remainder of
the season Virginia cotton could make an excellent yield.

TOBACCO
N ORTH C A R O L IN A ’S tobacco acreage is 1 per cent above that of 1924, and the June 25th condition
of 81 per cent indicates a probable production of 333,428,000 pounds, compared with 278,320,000 pounds
grown last year. Due to the dry season thus far, cultivation of the crop has been unusually good. The
plants show dark green with heavy body and plenty of wax in most eastern counties. Plants are stocky.
Considerable blooming and buttoning out of plants has been reported from the Old Belt, where dry con­
ditions were serious in May and June, but recent rains have improved prospects in this area.
V IR G IN IA ’S tobacco acreage is 11 per cent less than last year, and prospects are poorer than usual.
Growers are quite discouraged, except on the eastern edge of the Bright belt where more favorable seasons
have resulted in a promising outlook. Based on the June 25th condition of 67 per cent, the state’s probable
production is only 107,749,000 pounds, compared with 136,500,000 pounds grown in 1924. The low acreage
is due to unfavorable weather at setting time. The condition of the Bright crop is spotted, and varies accord­
ing to the amount of rain the various sections have had. In the Dark Fired district, some tobacco is looking
well, but much of it was set with poor plants. If favorable seasons occur during the rest of the summer
much improvement may be made in this section, the crop being later than in the Bright belt. Rain is very
badly needed throughout the entire Virginia tobacco belt.
SO U TH C A R O L IN A ’S tobacco condition was 82 per cent of a normal on June 25th, with the acreage
approximately the same as in 1924. The crop is now being harvested and cured, and the auction warehouses
will open about the first of August.



5

AGRICULTURAL NOTES
M A R Y L A N D crops benefitted from rains during the latter part of June, corn and pastures especially
showing improvement. Corn is in splendid condition, and the dry weather in May and most of June enabled
the farmers to work it three or four times. Maryland wheat is turning out the best quality and the highest
per acre yields of any recent year, though a reduced acreage will cut the state’s total yield. Hay crops are
very short, and pastures are still reported poor in most sections. The recent rains have enabled farmers
to finish their tobacco planting. Much interest is being taken in good breeding sheep, and farmers are pur­
chasing purebred rams and ewes.
V IR G IN IA crops suffered during June from dry weather, and since July ist improvement has been
spotted. There are sections that have had practically no rains since early in May. The corn crop is be­
ginning to suffer in the central and southern districts, but prospects are still very promising. The wheat har­
vest has been completed, and threshing returns from all parts of the state indicate a larger yield than the
farmers had expected. Hay crops are very short, and the ground has been too dry to enable farmers to
replant their cut-over wheat fields in cowpeas and soybeans for hay, as is usually done. The early potato
crop has nearly all been shipped. Yields were lower than usual, but good prices compensated for the short
yield. The sweet potato crop is making fair progress, but has suffered from lack of moisture. Peanut pros­
pects are promising, this crop doing better in dry weather than any other Virginia crop. Fruit crop pros­
pects are very spotted. Some orchards have a fair crop of apples, while others have no fruit at all. The
quality of apples is above the average. The peach crop is very short, and there will be very few cars for
shipment. Owing to poor pasture conditions cattle have made little progress. The early lambs did not do
as well as usual, owing to poor pasturage.
N O R TH C A R O L IN A crops, with the exception of cotton, suffered from dry and hot weather between
June 15th and July 15th, but on the whole agricultural prospects in the state are fair and the farmers are
optimistic on the outlook. Corn is doing well in nearly all sections, and small grain crops are about up to
average years. Fruit and truck prospects are fair. Hay crops are spotted, the northern Coastal counties
having good crops while most other counties report a shortage. Throughout the entire state, however, local
showers have resulted in good fields of hay and fair pastures. Crops are remarkably clean and well culti­
vated, in contrast to the grassy conditions that existed last year.
SO U TH C A R O L IN A ’S corn crop is expected to produce 27,014,000 bushels this year, compared with
21.862.000 bushels in 1924. The acreage in corn this year is the smallest within the past ten years, but the
crop averages from fair to good. The Irish potato acreage was much reduced this year, and the year’s yield
is estimated at only 2,597,000 bushels, compared with 3,885,000 bushels last year. Cowpeas and velvet beans
have been reduced in acreage since last year, but the soy bean acreage has been increased from 40,000 acres to
80.000 acres, this plant having gained very rapidly in favor, both as a soil builder and a hay crop. The state’s
peach crop was only 831,000 bushels compared with 912,000 bushels last year, the decrease being due to spring
frosts and dry weather which retarded development.

WHOLESALE TRADE
_________________________________________ June, 1925__________________________________________
Percentage increase (or decrease) in sales in June 1925, compared with sales in May 1925:
42 Groceries15 Dry Goods
12 Shoes
18 Hardware
6 Furniture
13 Drugs
— 0.2 13.9
— 12.7
— 0.9
— 1.0
— 0.04
Percentage increase (or decrease) in sales in June 1925, compared with sales in June 1924:
6.0
16.8
4.8
— 0.01
21.2
8.1
Percentage increase (or decrease) in sales since January 1, 1925, compared with sales during the corresponding
six months of 1924:
2.9
— 8.4
— 5.5
— 7.1
12.7
1.9
Percentage increase (or decrease) in stocks on June 30, 1925, compared with May 31, 1925:
— 6.0(9)
6.9(8)
— 1.8(6)
— 4.1(5)
— 4.8(2)
.........
Percentage increase (or decrease) in stocks on June 30, 1925, compared with June 30, 1924:
— 4.3(9)__________ — 16.0(8)
— 21.5(6)__________ — 8.2(5)_____________18.5(2)............................
— Denotes decreased percentage.
NOTE: The number of firms reporting stock figures for the dates compared is shown immediately after the
___________ percentage figure.

Wholesale trade in June was slightly less active than in May, but in all lines reported upon except hard­
ware business was in greater volume than during June last year. June sales in dry goods exceeded May sales,
but in all other reporting lines declines occurred during the more recent month, the decreases in groceries,
hardware, furniture and drugs being very small. Sales during the first half of 1925 exceeded sales during the
corresponding period last year in groceries, furniture and drugs, but sales of dry goods, shoes and hardware
were smaller this year.
Dry goods stocks at the end of June were larger than at the end of May, but stocks were less in all
other reporting lines, while in comparison with stocks on June 30, 1924, those on hand June 30th this year
were less in all lines except furniture.




6

The reporting firms classified their June collections as follow s:

Lines
Groceries .............................
Dry Goods...........................
Shoes ...................................
Hardware ...........................
Furniture.............................
D rugs...................................
June T otals.........................
May T otals.........................
April Totals .......................
. March Totals .....................
February Totals .................
January Totals .................. .

Good
Fair
Slow
Poor
Total
1925— 1924
1925— 1924
1925— 1924
1925— 19241925— 1924
8 1 1
23
21
8
7
o
o
39
39
o
1
10
7
4 7
1
o
15
15
0
1
4 7
6 2
1 1
11
11
1 2
8 7
5 6
1 0
15
15
2
1
4
4
o
1
o
o
6
6
3____ 1_____ 8____ 9_____ 1____ 2_____ o____ o_____12
12
14
17
57
55
24
25
3
1
98
98
14
17
60
60
22
18
1 2
97
97
14
14
56
59
27
20
1 5
98
98
12
16
58
56
24
20
1 3
95
95
12
24
53
52
25
12
0 2
90
90
16
22
54
55
20
16
3
0
93
93

FIGURES ON RETAIL TRADE
As Indicated By Reports from Twenty-eight Representative Department Stores for the
Month of June 1924
Percentage increase in June 1925 sales over sales in June 1924:
Baltimore
Richmond
Washington
Other Cities
District
1.4
8.9
7.0
1.3
4.0
Percentage increase in sales from January 1st through June over sales during the same six months in 1924:
1.3
11.4
4.0
1.8
3.1
Percentage increase in June 1925 sales over average June sales during the years 1920-1924, inclusive:
— 1.9
21.1
6.4
— 4.7
3.1
Percentage increase in stock on June 30, 1925, over stock on June 30, 1924:
4.1
8.7
— 6.1
— 6.4
— 0.2
Percentage increase in stock on June 30, 1925, over stock on May 31, 1925:
— 1.8
— 4.1
— 3.9
— 3.8
— 3.0
Percentage of sales during June 1925 to average stock' carried during that month:
27.6
27.0
31.5
21.0
28.0
Percentage of sales from January 1st through June 30th, to average stock carried during the six months:
158.5
157.5
166.4
124.8
157.0
Percentage of outstanding orders on June 30th, to total purchases of merchandise in 1924:
6.1
4.1
4.2
6.5
5.2
— Denotes decreased percentage; other figures show gains.

Retail trade in June, as reflected by sales in twenty-eight representative department stores in the Fifth Dis­
trict, exceeded trade in June 1924 by 4.0 per cent. Total sales during the first half of 1925 were 3.1 per
cent greater than sales during the first half of 1924. June 1925 sales were 3.1 per cent larger than aver­
age June sales during the five years 1920-1924, inclusive. Stocks on hand on June 30, 1925, were two-tenths
of 1 per cent smaller than stocks on hand June 30, 1924, and 3.0 per cent smaller than on May 31st this year,
all stock measured at selling prices. Total sales in June amounted to 28.0 per cent of average stocks carried
during the month, and cumulative sales from January 1st through June were 157.0 per cent of average monthly
stocks carried during the six months’ period. Washington stores, with an annual rate of 3.33 times, showed
the most rapid turnover during the past six months. Outstanding orders for merchandise on June 30th
amounted to 5.2 per cent of total 1924 purchases.




(Com piled July 21, 1 9 2 5 )

7

BUSINESS CONDITIONS IN THE UNITED STATES.
(Compiled by the Federal Reserve Board)

Production of basic commodities and factory employment declined further in June, while railway freight
shipments and the volume of wholesale trade increased. Wholesale prices, after declining for two months,
advanced in June.

PRODUCTION. Production in basic industries, as indicated by the Federal Reserve Board’s index, de­
clined about i per cent in June to the lowest level since the autumn of 1924 but was 17 per cent above the
low point of last summer. Output of pig iron, steel ingots, lumber, newsprint and petroleum, and mill con­
sumption of cotton, declined in June, while production of bituminous coal, sole leather and wheat flour in­
creased. The number of automobiles manufactured during June was slightly less than in May. Factory
employment declined 1 per cent and factory pay rolls over 2 per cent between May 15th and June 15th, re­
flecting substantial declines in the automobile, boot and shoe, textile, and iron and steel industries. Building
contracts awarded during June were larger in value than during May and almost equalled the peak figure for
April. In square feet of floor space the June awards were a little smaller than those for May. Residential
contracts in June were the smallest for any month since February but greatly exceeded those of a year ago.
The Department of Agriculture's estimate of the condition of all crops combined on July 1st showed some
improvement from the month before. The corn forecast places it at approximately 550,000,000 bushels above
last year. The July 15th cotton crop estimate was 13,588,000 bales, compared with a forecast of 14,339,000
bales on June 25th.
TRADE. Freight car loadings were larger during June than during May, as is usual at that season,
and also considerably exceeded the figures for June 1924, the low point of last year. Sales at department
stores during June were seasonally smaller than in May, but totaled 5 per cent more than last year. It
should be borne in mind, however, that in June of this year there were 4 Sundays as compared with 5 in the
preceding month as well as in June 1924. Mail order sales were 6 per cent larger than in May and exceeded
the amount for June 1924. Sales of wholesale firms were 5 per cent greater than in May and larger than
in any June in the last five years. Department store stocks were reduced further in June but were slightly
larger than a year ago. Wholesale stocks of groceries, shoes and hardware were smaller at the end of June
than a month earlier but those of dry goods and drugs were larger. Compared with a year ago, stocks of
groceries and drugs were larger in value while stocks of dry goods, shoes and hardware were smaller.
PRICES. Wholesale commodity prices advanced 1.4 per cent in June, according to the index of the
Bureau of Labor Statistics, following declines in April and May. The largest increase for any commod­
ity group was for the Miscellaneous Group, which includes crude rubber. Prices of farm products, foods,
and fuel and lighting also advanced, while prices of building materials declined considerably. In the first
half of July quotations on flour, beef, hogs, wool, copper, petroleum, hides and rubber increased, while prices
of sugar, bituminous coal and hardwood lumber declined.
BANK CREDIT. A t member banks in leading cities the volume of loans on securities continued to
increase after the middle of June and during the first half of July was at a higher level than at any previous
time. Demand for bank credit for commercial purposes was relatively inactive and the volume of com­
mercial loans at reporting member banks remained near the low level for this year, although considerably
above the amount for the corresponding period in 1924. A t the Reserve banks the seasonal demand for
credit and currency was reflected in increased borrowing by member banks, which carried discounts at the
beginning of July to the highest level in more than a year, and notwithstanding the subsequent decline the
total on July 22nd was still at a relatively high level. Total earning assets on that date showed little change
as compared with the figures for four weeks earlier. Firmness in the money market at the close of the fiscal
year was followed by an easing of money after the first week of July. In the latter part of the month there
was again evidence of firmer money conditions. These changes were reflected chiefly in the movement of rates
for call money, quoted rates on prime commercial paper and on Bankers acceptances remaining throughout
the period at 3 3/4— 4 per cent and 3 1 / 4 per cent, respectively.
NOTE. Due to the unusual length of the National Summary this month, the charts which supplement the text
are omitted.




8