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MONTHLY

REVIEW

BUSINESS AND AGRICULTURAL CONDITIONS

WILLIAM w. HOXTON,

C hairman

and

Fe d e r a l R e s e r v e

JULY 31, 1926

RICHMOND, VIRGINIA
DISTRICT SUMMARY. A t the middle of 1926,
business conditions throughout the Fifth Federal Re­
serve District appear to be fully up to seasonal aver­
age, but on account o f poorer crop prospects and a
strong probability o f lower cotton and tobacco prices
next fall than prevailed in 1925, the prospects fo r the
second half of the year are perhaps not so good as
they were on July 1st last year. However, it is too
early in the season to lay much stress on crop condi­
tion figures or on the signs that appear to indicate the
range of prices that may be paid fo r agricultural
product in the fall.
Business in June and during the first half o f this
year was fully up to seasonal average in practically
all lines of trade in the Fifth District, the textile in­
dustry alone finding conditions almost uniformly un­
favorable, and even in textiles there are signs of
slight improvement in prospects. Member banks of
the Reserve System in this District were borrowing
less from the Reserve bank at the middle o f July than
a year earlier, and customers’ deposits were notably
higher than at mid-year 1925. Savings deposits on
July 1st were the highest on record. Debits to in­
dividual accounts figures fo r five weeks ended July
14th this year showed the usual heavy volume of pay­
ments of dividends, etc., around July 1st, and exceeded
total debits fo r the corresponding five weeks o f 1925.
Aggregate debits for the past six months exceeding
those fo r the first half o f 1925 by half a billion dollars
testify eloquently to the large volume of trade done
in the Fifth District during recent months. Business
failures in June were few er in number and lower in
liabilities than in June 1925 or in any earlier month
this year, and the half-year witnessed both few er in­
solvencies and lower liabilities than the first half of
last year.1 Labor is seasonally employed, and a con­
tinuation of a heavy building program appears to as­
sure steady employment fo r most workers fo r several
months at least. Coal production is at a high rate
and up to seasonal average, while both retail and
wholesale trade compare favorably with corresponding
periods of other years.
The agricultural outlook in the Fifth District im­
proved distinctly during the month o f June and the
first half of July, but is still below that of 1925 for
most crops. Prospects now indicate lower yields of
tobacco and cotton this year in Virginia and Carolinas,
but it is too early to form any accurate estimate of
the year’s cotton yield. The development o f leading
crops in the District should be watched very carefully
during the balance o f the summer and early fall, since
these developments will necessarily play a very im­
portant part in determining the volume of business
done next fall and winter.



Agent

RESERVE BANK OPERATIONS — There
was a seasonal decline in the demand for Reserve
bank credit during the month between June 15th
and July 15, 1926, rediscounts for member banks
at the Federal Reserve Bank of Richmond drop­
ping from $45,576,000 on the earlier date to
$41,111,000 *on the later one. The circulation of
Federal Reserve notes also declined, from $71,989.000 on June 15th to $70,591,000 on July 15th.
Total bill holdings of the Reserve bank de­
creased between the two dates from $57,590,000
to $50,153,000. On the other hand, member
banks increased their reserve deposits at the
Federal Reserve Bank of Richmond from $65,045.000 to $67,459,000, and the Reserve bank’s
cash reserves rose from $76,709,000 to $89,467.000. The changes enumerated raised the
ratio of cash reserves to note and deposit liabili­
ties combined from 55.58 per cent on June 15th
t° 63-35 Per cent on July 15th.
A comparison of the principal items in the Re­
serve bank's statement for July 15, 1926, with
those for July 15, 1925, shows a smaller volume
of credit extended to member banks on the 1926
date. Rediscounts held by the Federal Reserve
Bank of Richmond totaled $47,439,000 on July
15th last year, but declined to $41,111,000 on the
corresponding date this year, a decrease of $6,328.000. Total bill holdings of the Reserve bank,
including Bankers’ acceptances purchased, which
amounted to $56,313,000 at the middle of July a
year ago, declined during the year by approxi­
mately the amount of decrease in rediscounts,
total holdings on July 15, 1926, being $50,153,000.
A slightly larger volume of Federal Reserve
notes was in actual circulation on July 15th this
year in comparison with a year ago, the total
having risen from $69,637,000 last year to $70,591.000 on the corresponding date this year.
Member bank reserve deposits rose during the
year from $66,150,000 to $67,459,000, and the cash
reserves of the Federal Reserve Bank of Rich­
mond increased from $83,382,000 on July 15,
1925, to $89,467,000 on July 15, 1926. The ratio
of cash reserves to note and deposit liabilities
combined was 60.97 Per cent on Juty 1S last
^h.
year and 63.35 Per cent on the corresponding
date this year.

The National Summary will be found on page 8

CONDITION OF SIXTY-EIGHT REPORTING MEMBER BANKS IN SELECTED CITIES
ITEM S

July 14, 1926

1. Total Loans and Discounts (including
all rediscounts) ......................................
2. Total Investments in Bonds and Securi­
ties ...............................................................
3. Reserve Balance with Federal Reserve
Bank ............................................ ..............
4. Cash in Vaults ..........................................
5. Demand Deposits ......................................
6. Time Deposits ..............................................
7. Borrowed from Federal Reserve Bank....

June 16, 1926

July 15, 1925

$ 512,649,000

$ 516,144,000

$ 494,995,000

139.194.000

132.815.000

137.623.000

41.017.000
14.109.000
378.285.000
209.082.000
14.345.000

39.742.000
13.547.000
365.036.000
207.029.000
15.346.000

40.999.000
14.155.000
357.881.000
204.352.000
18.366.000

The chief items of condition for sixty-eight regularly reporting member banks are shown in the
accompanying table, three dates being included to allow for comparison of the latest available figures,
those of July 14, 1926, with those of June 16, 1926 and July 15, 1925, the preceding month and the
preceding year, respectively. It should be understood that the figures shown 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.
Changes in the condition of the reporting banks between June 16th and July 14th, both this year,
were relatively slight, but indicated some decrease in the demand for credit at the reporting banks
during the month. Total loans to customers declined from $516,144,000 on June 16th to $512,649,000
on July 14th, and the banks reduced their borrowing at the Reserve Bank from $15,346,000 to $14,345,000. A t the same time holdings of investments in bonds and securities rose from $132,815,000 to
$139,194,000, and the reserve deposits of the reporting banks at the Federal Reserve Bank of Rich­
mond increased from $39,742,000 to $41,017,000. Cash in vaults also gained during the month under
review, rising from $13,547,000 on June 16th to $14,109,000 on July 14th. Improvement in the financial
status of the reporting banks' customers is indicated by material gains in deposits, demand deposits
rising from $365,036,000 on June 16th to $378,285,000 on July 14th, and time deposits rising from
$207,029,000 to $209,082,000 between the same dates.
In comparison with the condition figures as of July 15, 1925, those for July 14, 1926, show an in­
crease in total loans to customers from $494,995,000 to $512,649,000, but between the two dates bor­
rowing at the Reserve bank by the sixty-eight reporting banks declined from $18,366,000 to $14,345,000; investments in bonds and securities rose from $137,623,000 to $139,194,000; reserve balances with
the Reserve bank increased from $40,999,000 to $41,017,000; and both demand and time deposits in­
creased, the former rising from $357,881,000 on July 15, 1925, to $378,285,000 on July 14, 1926, and
the latter rising from $204,352,000 to $209,082,000 during the same period. Cash in the vaults of the
reporting banks remained practically the same, decreasing from $14,155,000 last year to $14,109,000
this year.

SAVINGS DEPOSITS— A t the close of business June 30, 1926, total deposits in fourteen mutual
savings banks in Baltimore amounted to $155,264,025, the highest figure on record and more than
$5,000,000 above the total of $150,220,063 on deposit in the same institutions on June 30, 1925. Sixtyeight regularly reporting member banks located in thirteen Fifth District cities also reported record
savings deposits at the middle of July, aggregate time deposits of $209,082,000 at the close of business
July 14, 1926, comparing with time deposits of $204,352,000 on July 15, 1925.
DEBITS TO INDIVIDUAL ACCOUNTS
The accompanying table shows total debits to individual, firm and corporation accounts in the
clearing house banks of twenty-three trade centers in the Fifth Federal Reserve District during
three periods of five weeks each, and in addition the table this month shows semiannual totals in
the several reporting cities for the first half of 1926 in comparison with corresponding figures for
the first half of 1925. The figures for the latest available five weeks period, ended July 14th, may be
compared with those reported for the preceding five weeks ended June 9th this year and with those
of the corresponding five weeks ended July 15, 1925.
Aggregate debits of $1,671,005,000 in the reporting banks during the five weeks ended July 14th
show a seasonal increase over the total of $1,517,919,000 reported for the preceding like period, ended
June 9th, the semiannual and quarterly payments occuring on and around July 1st increasing debits
totals materially. Nineteen of the twenty-three cities reported higher figures for the more recent
five weeks.
In comparison with the corresponding five weeks in 1925, ended July 15th, when debits totaling
$1,599,377,ooo were reported, the total of $1,671,005,000 for the five weeks ended July 14, 1926, shows
an increase of $71,628,000, sixteen of the twenty-three cities showing higher figures this year. Most



2

CITIES
Asheville, N. C.......... .....
Baltimore, Md........ .........
Charleston, S. C..............
Charleston, W. V a.......
Charlotte, N. C. ............
Columbia, S. C.................
Cumberland, Md.............
Danville, V a............... ......
Durham, N. C.................
Greensboro, N. C.............
Greenville, S. C...............
Hagerstown, Md.............
Huntington, W. Va. .....
Lynchburg, V a................
Newport News, Va. . ...
Norfolk, V a......................
Raleigh, N. C..................
Richmond, V a..................
Roanoke, V a.....................
Spartanburg, S. C..........
Washington, D. C...........
Wilmington, N. C...........
Winston-Salem, N. C. .
Totals.........................

TOTAL DEBITS DURING THE FIVE W
EEKS EN
DED
July 14, 1926
$

47,365,000
559,785,000
28,710,000
43.651.000
56.446.000
19,774,000
12,410,000
11,344,000
33,602,000
30,884,000
24,341,000
12,859,000
29.747.000
25.074.000
15.046.000
91.628.000
41,369,000
160,376,000
35,081,000
15.903.000
308,697,000
21.937.000
44.976.000

$1,671,005,000

June 9, 1926
$

46,434,000
491,373,000
31,468,000
40.398.000
56.366.000
22,870,000
10,744,000
9,431,000
28,884,000
29,449,000
21.538.000
11.543.000
29,186,000
23,639,000
11.746.000
85.226.000
21,607,000
141,325,000
33,533,000
16.788.000
288,707,000
22.090.000
43.574.000

$1,517,919,000

SEMIANNUAL TOTALS
1926

1925

36,170,000
532,174,000
24,834,000
43.042.000
53.370.000
20.316,000
12,342,000
14,169,000
27,712,000
25,949,000
26,314,000
13,953,000
30.345.000
25.061.000
9,948,000
79,897,000
64.011,000
157,256,000
31,240,000
16.936.000
296,226,000
20.078.000
38.034.000

$ 222,630,000
2,628,144,000
163.927.000
221.819.000
305.589.000
109,736,000
53.440.000
54.728.000
159,229,000
162,100,000
143,472,000
62,841,000
153.940.000
126.681.000
59,214,000
460.706,000
163',897,000
813,591,000
168.712,000
91,643,000
1,471,637,000
130.500.000
233.901.000

$ 150,186,000
2,436,728,000
158,338,000
215.008.000
293.361.000
123,132,000
52.283.000
57.161.000
135,715,000
137,484,000
141,744,000
62,026,000
161,660,000
118,773,000
48,537,000
419,500,000
205,888,000
786,472,000
152,966,000
94,805,000
1,383,460,000
124.236.000
200.026.000

$1,599,377,000

$8,162,077,000

$7,659,489,000

July 15, 1925
$

of the declines were in cities in which textile mills are located, and restricted operations with lower
prices for both cotton and cloth or yarn probably accounted for a considerable part of several de­
creases in debits.
Total debits for the first half of 1926 amounted to $8,162,077,000, exceeding the total of $7,659,489,000 reported for the first half of 1925 by slightly more than half a billion dollars, which shows
clearly greater activity in general business in the Fifth District during recent months. The increase
this year is the more striking when it is remembered that the 1925 figures were in themselves con­
sidered high, and also in view of the fact that wholesale price levels, particularly for cotton, tobacco
and textile products, were lower during the past six months than in the first half of 1925.

BUSINESS FAILURES— Dun’s Review for July 3rd, in commenting on the business failure rec­
ord for June and the half year in comparison with the corresponding month and half-year in 1925,
says, “The insolvency record for the month of June, which closes both the second quarter and the
half-year, is distinctly encouraging. Not only are the 1,708 commercial failures reported for June less
than those for any month since last November, but last month’s liabilities, $29,407,523, are the smallest
for all months back to September 1923. Comparing with the high point of the current year, reached
in January, the June returns show a numerical reduction of about 25.5 per cent and a decrease in
the indebtedness of more than 32 per cent. The falling off from the 1,745 defaults of June 1925, is only
a little over 2 per cent, but the liabilities for last month are nearly 20 per cent below the aggregate of
$36,701,496 in June last year.
Failures during the half-year, as to number, were practically the same as in the first six months
of 1925, but the indebtedness involved for this year to date is very much less than in any first halfyear period since 1920. Failures numbering 11,476, with liabilities of $209,898,501, for the past six
months, compare with 11,420 failures and $239,398,450 in liabilities during the corresponding period
last year. Going back to 1915, there were only two years, 1922 and 1915, the latter the year follow ­
ing the beginning of the war in Europe, when commercial defaults in the United States during the
first half of the year were larger in number than for the last six months. The increase, however, in
the last three years has only been on a par with the gain in the number of business concerns. The
very marked improvement as to the amount of liabilities shown for the last half year is most gratifying.”
Examining the figures for the Fifth Reserve District, June’s 96 failures were the lowest for any
month since last November, and compared favorably with 116 failures in June last year. Liabilities
in June totaling $1,719,126 were below those of any other month this year, and also were lower than
in June 1925, when they were $2,196,548. The first half of 1926 witnessed 772 insolvencies in the
Fifth District, with liabilities of $14,367,247, compared, with 792 failures with $20,388,341 of liabilities
in the first half of 1925.



3

LABOR— No changes of importance were noted in labor circles during the past two months.
W orkers are seasonally employed, with a moderate surplus in nearly all cities, but there does not ap­
pear to be any exceptionally large number of unemployed workers anywhere in the Fifth District.
There has recently been a considerable amount of shifting of labor from city to city in an effort to
get work on big projects just getting under way, and some contractors report trouble in keeping their
men on jobs nearly completed. More favorable weather for farm work since the middle of June has
increased the demand for agricultural workers, but the number of hands is adequate to meet all
pressing needs. Perhaps the best evidence of the extent of the demand for labor is the continuation
of high wage scales in all lines of work.
COAL— The daily production of bituminous coal, in accordance with seasonal trends, has been
gradually increasing since the first of May, and during the week ended July ioth averaged 1,658,000
net tons per day, the highest average since the middle of March. Total production during the first 161
working days of 1926, to July ioth, amounted to 280,157,000 net tons, a figures exceeded only once
during the past seven years for the corresponding period of the year. W est Virginia continued to lead
the country in total output during June and the first half of July.
The weekly rate of production of anthracite coal since February has exceeded that of 1925, but
total output during the present calendar year to July ioth amounted to only 38,697,000 net tons, ap­
proximately 7,800,000 tons less than during the corresponding period last year. The lower production
this year is due to the strike of the miners last winter, of course, rather than to any material de­
crease in demand for anthracite fuel.
Retail yards are adequately supplied with all grades of coal to meet customer demand. Many
yards advanced prices slightly on July 1st.
TEXTILES— Restrictions in operating time at textile mills in the Fifth District did not spread
further during June, of cotton consumption during that month is indicative of the rate of operations.
Cotton consumed in the three textile manufacturing states of the District during June this year
totaled 212,398 bales, of which North Carolina mills used 117,256 bales, South Carolina mills 85,476
bales, and Virginia mills 9,666 bales. In the longer month of May the Fifth District mills consumed
209,204 bales and in June 1925 used 197,998 bales. There has yet been little increase in orders for cloth
or yarn, but the Southern Yarn Spinners Association reports inquiries for yarn in considerable quan­
tities as more prevalent* than for some time past. The recent fluctuations in the cotton market have
had little effect upon yarn prices, but have influenced buyers to await more stable conditions. Spin­
ners’ prices are reported firm, with some recent advances listed. Stocks of yarn in dealers' hands and
at mills appear to be small. Complaints of small profits continue to reach us in our correspondence
with mill executives.
COTTON— Spot cotton prices in the Carolinas fluctuated back and forth through a range of ap­
proximately half a cent between the middle of June and the middle of July, all weekly average prices
in that period being below 17 cents. In our June 30th Review we quoted the average price paid for
middling cotton in the Carolinas during the week ended June 12th as 16.97 cents. The weeks ended
June 19th and June 26th averaged 16.62 cents and 16.64 cents, respectively. The first week in this
month, ended July 3rd, averaged 16.46 cents, but the two weeks ended July ioth and 17th averaged
16.78 and 16.82 cents, respectively, the slight rise probably being due to some fear of weevil and flea
damage. The coton flea is a new pest this year over most of the cotton belt, and it is problematical
as to how destructive it may be, but at least it is a disturbing factor at the present moment.
The Census Bureau's cotton consumption report for June, issued on July 14th, showed 518,504
bales used in American mills during the month, in comparison with 516,758 bales consumed in May 1926
and 494,083 bales used in June last year. Total consumption during the elevent elapsed months of
the present cotton year— August 1, 1925, to June 30, 1926— totaled 5,930,069 bales, compared with 5,709,491 bales used during the corresponding eleven months of the preceding year. Cotton on hand at
manufacturing establishments on June 30, 1926, amounted to 1,267,796 bales, compared with 1,449,932
bales held on May 31st this year and 1,126,127 bales held at the end of June last year. Bales in pub­
lic warehouses and compresses numbered 2,407,816 at the end of June this year, 2,964,824 at the end
of May, and 759,350 on June 30, 1925. Exports of cotton in June totaled 346,774 bales, compared with
419,459 bales sent abroad in May 1926 and 217,786 bales exported in June last year. Exports during
the eleven months of the present cotton year totaled 7,789,089 bales, compared with 7,993,408 bales
shipped out of the country during the eleven months ended June 30, 1925. Imports in June totaled
22,137 bales, compared with 13,626 bales in M ay 1926 and 19,957 bales in June 1925, while total im­
ports during the past eleven months amounted to 313,537 bales, in comparison with 303,401 bales im­
ported during the corresponding period of the previous year. Active spindles in June 1926 num­
bered 31,770,900, in May this year 32,267,410, and in June last year 32,287,564.
Cotton consumption in the cotton growing states totaled 365,467 bales in June, 363,475 bales in
May, and 337,768 bales in June 1925, while spindles active in cotton growing states numbered 17,007,


4

458 in June, 17,048,474 in May, and 16,760,756 in June 1925, The; number of spindles active in the
cotton producing states in June was larger than the number active in June 1925, contrary to the case
in other textile manufacturing sections.
On July 2nd the Department of Agriculture issued its first condition report on this year’s cotton
crop. As of June 25th, the report estimated the condition at 75.4 pef cent of a normal, in comparison
with 75.9 per cent on the same date in 1925 and a ten year average of 73.5 per cent. On the estimated
acreage of 48,898,000 acres, indications on June 25th pointed to a crop between 13,726,000 bales and
16.294.000 bales, probably around 15,635,000 bales. This year the Department will give three esti­
mates of production on each report date, one the usual figure based on all available data at the time
the estimate is made, and two others showing the highest production or the lowest production prob­
able if weather conditions from the report date to the end of the season are as favorable as those of
1924 and 1925 or as unfavorable as those of 1921, 1922 and 1923. The condition of this year’s crop in
the Fifth District on June 25th was considerably lower than on the same date in 1925, South Carolina
averaging 55 per cent in comparison with 70 per cent a year earlier, North Carolina averaging 63 per
cent compared with 77 per cent last year, and Virginia averaging 62 per cent compared with 83 per
cent in 1925. The crop has improved in all three Fifth District states since June 25th, however,
rains having fallen throughout the District and especially in the Piedmont counties of the Carolinas
where a serious drought was being felt late in June.
Virginia’s acreage in cotton this year is 93 per cent of the 1925 acreage, but the South Carolina
acreage this year is 103 per cent of the 1925 acreage and the North Carolina acreage is 101 per cent
of that planted in cotton last year.

AGRICULTURAL NOTES— M A R YLA N D wheat improved greatly during June, and the July 1st
estimate of production for 1926 was 9,614,000 bushels compared with 10,290,000 bushels grown in 1925
and a five year average of 9,535,000 bushels, Corn, on the other hand, is poor and a very short crop
is expected, production of 19,849,000 bushels indicated by the July 1st condition comparing with 25,560.000 bushels in 1925 and a five year average of 23,655,000 bushels. Corn in Maryland got a late
start, stalks are for the most part small and irregular, and cut worms are doing considerable dam­
age. Tobacco prospects indicate a probable production of 25,232,000 pounds this year in comparison
with 24,690,000 pounds in 1925 and 21,442,000 pounds the five years average. Plants were handicapped
by the long dry spell, but recent rains have brightened prospects considerably, Maryland fruit pros­
pects are described by the Agricultural Statistician of the State as “Uniformly good”. Apple pros­
pects on July 1st indicate a yield of 2,840,000 bushels compared with 1,870,000 bushels last year and a
five year average of 1,541,000 bushels. Peaches promise a production of 560,000 bushels compared
with 240,000 bushels gathered in 1925, and pears are expected to yield 378,000 bushels against 280,000
bushels last year. The July 1st condition of sweet potatoes indicate a yield of 1,444,000 bushels com­
pared with 1,290,000 bushels in 1925 and 1,202,000 bushels average for the past five years. The acreage
planted in potatoes is approximately 2,000 acres larger than last year, however, which accounts for
the prospective increase in yield. Weather conditions have been too dry and cool for the crop, and
the present condition is 5 points below average. Hay prospects in Maryland are mostly poor and
pastures are only fair. The weather has been unfavorable for grasses and hay crops, Clover is re­
ported a near failure.
T H E V IR G IN IA Crop Reporting Service reports great improvement in the wheat crop, excellent
prospects for apples, unusually light yields of hay, and low condition of pastures as the outstanding
features of the July 1st crop analysis. The mid-month report, however, issued on July 19th, states
that all crop improved during the first half of July. Rain during the last ten days of June broke
the drought in most sections. The wheat yield is turning out better than was expected, and the
quality of the wheat is especially good. Corn has made splendid progress and with favorable weather
to the end of the season the year’s production now appears likely to be above the average. Tobacco
has grown rapidly, and topping has commenced in the Southern part of Virginia, but the crop is still
backward and fields are quite irregular. Growers do not expect an average yield this year. The hay
crop is one of the lightest ever grown in the State, but weather conditions for cutting and curing have
been favorable. A large acreage has been planted in late hay crops, and if weather is favorable the
rest of the season these crops will supply a large quantity of feed. Most of the early potato crop has
been shipped. Yields were very poor and in recent weeks prices were so low that the season has not
been very profitable to the growers. Large plantings of late potatoes have been made. Peanuts are
backward in growth, but improved considerably during the past two weeks. Some peanut fields are
grassy. All fruit crops were greatly benefitted by the recent rains. Prospects for apples continue
to be exceptionally good. The fruit is beginning to develop size and apparently shows no bad effects
from the drought. Peaches are light, except in commercial orchards, but the fruit is sizing up well
and early, varieties are ripening.
NORTH CA R O LIN A corn and wheat crops are unusually good, according to the Agricultural
Statistician, and prospects for good yields are favorable. The early potato crop is much below aver­



5

age in yield per acre, but a larger acreage approximately balances the lower condition of the crop.
Sweet potatoes are considerably below last year in condition, but favorable weather may largely
remedy this situation. With practically the same acreage and a July ist condition of 66 per cent com­
pared with 81 per cent a year earlier, North Carolina’s tobacco crop promises a distinctly lowered
yield under that of 1925. Present stands are about 81 per cent normal. Grasses and hay crops have
developed wonderfully since June 20th, when rains fell over most of the State, and at present are
nearly up to normal. A considerable increase in acreage is reported for soy beans and cowpeas.
SOUTH CAR O LIN A wheat and oats produced the highest per acre yields this year on record for
that State, and corn prospects on July ist were better than those of last year. The tobacco crop
acreage is 5 per cent smaller this year than in 1925, and the condition of 60 per cent compares un­
favorably with 82 per cent on July ist a year ago. Nearly all crop condition percentages on July ist
this year were lower than those of July 1, 1925, but the prospects for this season were better than
they were on June ist, due to the rain late in that month. Rains fell throughout most of the State
during the first half of July, and crops probably improved somewhat further since the latest available
official figures were issued. The South Carolina tobacco markets are scheduled to open on August 9th.
which is later than is customary.

BUILDING OPERATIONS FOR THE MONTHS OF JUNE 1926 AND 1925.
Premits Issued

0

CITIES

z

New

Repairs

1926 1925
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
29

Baltimore, Md...... 620
Cumberland, Md...
25
34
Frederick, Md......
Hagerstown, Md...
28
15
Danville Va..........
39
Lynchburg, Va....
78
Norfolk, Va..........
4
Petersburg, Va.....
Richmond, V a ..... 146
96
Roanoke, Va.........
Bluefield, W. Va...
20
Charleston, W. Va.
61
Clarksburg, W. Va
31
Huntington, W.Va. * 70
Parkersburg,W.Va
29
Asheville, N. C..... 109
54
Charlotte, N. C.....
Durham, N. C ......
44
Greensboro, N. C.
75
High Point, N. C...
76
46
Raleigh, N. C.......
6
Salisbury, N. C.....
Wilmington, N. C.
9
Winston-Salem, N. C.
58
Charleston, S. C ...
13
Columbia, S. C.....
14
Greenville, S. C....
12
Spartanburg, S. C.
35
Washington, D. C. 162

A lt A r a fin n s

1926

1925

674 1,375 1,172 $
5
12
33
3
10
0
31
16
16
11
7
11
19
29
22
59
96
115
10
11
9
179
78
94
139
41
48
22
7
5
34
29
10
22
30
35
*
7
27
9
4
44
65
59
70
16
6
54
16
7
62
30
30
72
15
4
4
80
11
8
14
11
16
5
4
62
40
68
20
25
55
22
76
15
9
24
21
24
26
22
230
444
459»

1926

1925

1926

3,610,428 $ 3,780,480 $ 833,520 $
90,771
111,004
1,420
149,514
20,860
6,250
9,232
71,405
61,120
104,829
23,910
2,590
138,120
10,766
68,180
570,435
37,682
291,605
8,950
35,555
4,950
686,130
1,228,924
138,518
353,940
10,760
275,205
41,925
518,175
7,730
214,754
36,625
73,200
125,595
7,300
53,800
• 136,595
* 3,650
188,575
6,600
98,680
989,470
31,800
244,949
44,150
1,029,306
408,285
423,630
9,400
255,260
735,378
301,625
14,493
816,275
19,850
364,275
2,950
357,175
352,803
200
13,240
166,300
30,800
81,500
12,300
138,792
226,091
13,735
29,380
8,685
186,171
333,463
52,900
342,253
12,220
71,750
180,800
127,187
220,667
34,785
543,595
5.520,385
8,061,685

Totals.......... 1,939 2,030i 2,481 2,3931 $16,971,602 $17,729,399

$2,218,969

1925
648,480
15,777
0
9,145
47,680
40,775
55,195
7,800
195,202
32,616
850
7,100
6,520
3,300
42,370
23,500
6,400
13,140
1,305
13,450
4,505
11,000

78,350
13,926
73,167
6,180
11,265
777,697

Increase or Per Cent
Dprrpaap
of
of
Increase 6
1U U U
or
Z
Valuation Decrease
$
—

—
—

—

14,988
34,590
164,124
10,372
35,829
39,931
261,317
29,455
599,478
56,879
469,370
171,079
72,575

94,195
733,951
641,671
171,370
435,106
470,545
—
6.128
— 157,365
—
49,400
—
151,914
— 162,032
549,649
— 103,010
— 69,960
2,775,402

$2,145,695 $—

684,523

0.3#
— 27.3
2626.0
14.0
50.0
36.6
75.4
— 67.9
— 42.1
18.5
— 90.4
213.0
120.3
93.3
255.4
148.6
65.5
138.2
128.7
— 1.7
— 92.1
— 53.4
— 49.9
— 81.0
436.0
— 55.1
— 30.2
— 31.3
—

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
29

3.49b

* Huntington's 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-eight Fifth District cities
in June totaled 1,939, with estimated valuation of $16,971,602, compared with 2,061 permits and valu­
ation of $15,008,503 issued by the same cities in May this year and 2,030 permits and $17,729,399 valu­
ation for June 1925. Total valuation figures for both new and alteration or repair work totaled $19,190,571 in June 1926 and $19,875,094 in June 1925, a decrease this year of $684,523, or 3.4 per cent.
Sixteen of the twenty-eight reporting cities sent in higher total valuation figures for June this year
than for June last year, increases of more than 100 per cent being reported by Frederick, Charleston,
W. Va., Clarksburg, Asheville, Charlotte, Greensboro, High Point, and Columbia. Baltimore reported
approximately the same valuation as in June last year, Richmond reported a decrease of over half
a million dollars, and Washington reported a decrease of two and three-quarter million dollars.



6

FIGURES ON RETAIL TRADE
As Indicated By Reports from Thirty-One Representative Department Stores for the
____________________________________ Month of JUNE 1926____________________________________
Percentage increase in June 1926 sales over sales in June 1925:
Baltimore
Richmond
Washington
Other Cities
D istrict
— 2.0
13.2
.02
6.1
.8
Percentage increase in cumulative sales from January 1st through June, over sales during the corresponding six
months in 1925:
1.0
4.0
6.5
4.1
3.6
Percentage increase in June sales over average June sales during the five years 1920-1924, inclusive:
— 6.2
39.0
11.7
.2
5.5
Percentage increase in stock on hand June 30, 1926, over stock on June 30, 1925:
— .1
3.9
7.2
— 1.5
2.6
Percentage increase in stock on hand June 30, 1926, over stock on May 31, 1926:
— 4.6
— 5.5
— 4.1
— 3.7
— 4.4
Percentage of sales during June 1926 to average stock carried during that month:
26.0
29.8
29.2
22.2
27.0
Percentage of cumulative sales since January 1st to average stock carried during each of the six months:
152.6
160.2
166.1
134.0
156.0
Percentage of outstanding orders on June 30th to total purchases of goods in 1925:
5.6
3.4
7.8
4.5
6.1
Percentage of collections in June to total accounts receivable on June 1st:
___________23J9____________________ 27JS________
39.1____________________ 3L0____________________ 28.4
— Denotes decreased percentage.

Retail trade, as indicated by sales in thirty-one leading department stores in the Fifth Federal R e­
serve District, was eight-tenths of I per cent larger in June 1926 than in June 1925, and 5.5 per cent
greater than average sales in June during the five years 1920-1924, inclusive. Total sales during the
first half of 1926 exceeded sales during the first half of 1925 by 3.6 per cent.
Stocks on hand at the end of June, at retail prices, averaged 2.6 per cent above stocks a year
ago but were 4.4 per cent less than stocks on May 31st this year, a seasonal decrease. The increase
over last year’s stocks was due chiefly to store expansion in Richmond and Washington, average
stock in Baltimore and Other Cities being below those of 1925.
The percentage of sales in June to average stock carried during the month averaged 27 per cent,
and the percentage of total sales since January 1st to average stocks carried during each of the six
months was 156 per cent, indicating business at an annual turnover rate of 3.12 times.
Collections in June were not quite so good as in M ay this year or June last year. The percentage
of total collections in June to receivables outstanding on the first of the month was 28.4 per cent,
compared with 29.3 per cent of outstanding receivables collected in M ay 1926 and 29.6 per cent col­
lected in June 1925.

_____________________________ WHOLESALE TRADE, JUNE 1926______________________________
Percentage increase in sales in June 1926, compared with sales in June 1925:
34 Groceries
13 D ry Goods
10 Shoes
17 Hardware
5 Furniture
12 Drugs
.2
— 13.6
9.6
7.2
4.2
— 2.8
Percentage increase in sales in June 1926, compared with sales in May 1926:
3.0
— 11.6
— 19.2
.5
1.4
— 2.7
Percentage increase in sales from Jan. 1, 1926, through June, compared with sales during the same six months
in 1925:
— 1.2
— 3.2
6.5
— .6
— 1.8
3.2
Percentage increase in stock on June 30, 1926, compared with stock on June 30, 1925:
7.6(9)
— 17.9(5)
6.7(5)
8.0(5)
Percentage increase in stock on June 30, 1926, compared with stock on May 31, 1926:
— 4.9(9)
13.3(5)
7.0(5)
.4(5)
Percentage of collections in June to total accounts receivable on June 1, 1926:
63.1(20)
30.8(9)
31.4(8)_______________35.6(11)____________ 37.7(3)___________ 57.8(8)
— Denotes decreased percentage.
N O TE: The number of firms reporting stock and collection data in each group is shown immediately follow ­
ing the percentages.

Ninety-one wholesale firms reported on their June business in comparison with the preceding
month this year and the corresponding month last year. Grocery, shoe, hardware and furniture firms
sold more merchandise in June 1926 than in June 1925, while dry goods jobbers and wholesale drug­
gists reported declines in sales last month. In comparison with M ay sales, those of June were
greater in groceries, hardware and furniture, but sales of dry goods, shoes and drugs were less.
Total sales during the half-year just closed exceeded sales in the first six months of 1925 in shoes



7

and drugs, but grocery, dry goods, hardware and furniture sales were less than in 1925. Stocks on
hand increased last month in dry goods, shoes and hardware lines, but grocery stocks declined dur­
ing June. A t the end of June stocks of dry goods were smaller than those of June 30th last year,
but larger stocks than a year ago were reported for groceries, shoes and hardware. Collections , in
most lines were a little slower in June than in May, the percentage of collections to outstanding
receivables on June 1st being lower than the corresponding figures for M ay in all lines except hard­
ware and drugs.

(Compiled July 20, 1926)
BUSINESS CONDITIONS IN THE UNITED STATES.
Industrial activity was at the same level in June as in May and was slightly above the level of
a year ago. The average of commodity prices advanced further between May and June.
PRODUCTION. The Federal Reserve Board’s index of production in basic industries remained
unchanged in June. Production of iron and steel and activity of woolen machinery continued to de­
cline, and there were also reductions in the output of copper, zinc and petroleum, while cotton con­
sumption, the manufacture of food products, and the output of coal and cement increased. Produc­
tion of automobiles was smaller in June than in May and for the first time this year was less than
in the corresponding month of 1925. Declines took place in June in employment and payrolls for all
textile industries except woolen and worsted goods and men's clothing, and some of these industries
were less active than at any time since 1924. Building contracts awarded during June were slightly
less than in May and for the first time since early in 1925 were smaller than in the corresponding
month of the preceding year. Crop reports issued by the Department of Agriculture indicated a slight
improvement during June. The composite condition of all crops on July 1st was reported at 6.4 per
cent below the average July condition during the last ten years. The production of winter wheat was
estimated at 568,000,000 bushels, or 172,000,000 more than in 1925, and that of spring wheat at 200,000,000 bushels, or 71,000,000 less than last year. A production of 2,661,000,000 bushels of corn, or
8.3 per cent less than last year, is indicated in the same report. Cotton production, on the basis of
the July 16th condition, was estimated at 15,368,000 bales, or 718,000 bales less than the production
of last year.
TRADE. Total volume of wholesale and retail trade in June was larger than for the same
month in 1925. Department store sales declined seasonally in June, and wholesale trade in all lead­
ing lines except groceries also decreased during the month. Sales of mail order houses increased
more than usual in June, and were 5 per cent larger than in June 1925. Stocks of merchandise car­
ried by wholesale firms at the end of June were smaller than a year earlier, department stores con­
tinued to reduce their stocks, and their inventories, which had been considerably above last year’s
level earlier in the year, were at the end of June only about 1 per cent larger than a year ago. Freight
car loadings showed seasonal increases during June and continued through the first half of July at
higher levels than in previous years. Loadings of grains in the Southwestern states have been par­
ticularly large.
PRICES. The general level of wholesale prices, according to the index of the Bureau of Labor
Statistics, increased from May to June by less than half of 1 per cent. Prices of livestock and meats
advanced and there were small increases for silk, petroleum products, nonferrous metals, and chemi­
cals and drugs. Price decreases occurred in grains, cotton, textiles, building materials and house fur­
nishings. In the first two weeks of July prices of grains, flour, cotton, wool and hides increased
while those of cattle, hogs, silk and rubber declined.
BANK CREDIT. Loans and investments of member banks in leading cities at the end of June
were in larger volume than at any previous time, and after declining during the first half of July
were still $900,000,000 above the level of a year ago. Of this increase about $385,000,000 was in loans
on securities, $340,000,000 in commercial loans, and $175,000,000 in investments. Since the beginning
of 1926 an increase in commercial loans together with the growth of investments has more than off­
set the reduction in loans on securities. The demand for credit at the end of the fiscal year and the
increased currency requirements over the holiday were reflected in a growth of member bank bor­
rowing at the Reserve banks and on July 7th total discounts were near the highest point of the
year. W ith the return flow of currency from circulation after the holiday, discounts declined, and on
July 21st were in about the same volume as in the last half of June. The Reserve bank holdings
of acceptances and of United States securities changed little during the period, and the total volume
of Reserve bank credit outstanding in the third week of July was close to the June level. Money
‘market conditions were firmer in July, as indicated chiefly by increases in rates on call and time se­
curity loans. Rates on acceptances and on commercial paper were also slightly higher.
ted.

N O T E : Due to the unusual length o f the National Summary this month, the accompanying charts were omit­
The charts illustrate the text, but do not contain additional information.




8