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MONTHLY

REVIEW

BUSINESS AND AGRICULTURAL CONDITIONS

W ILLIAM W. HOXTON. CHAIRMAN AND FEDERAL RESERVE AGENT

JUNE 30, 1926

RICHMOND, VIRGINIA
DISTRICT SUMMARY—

May business was in
larger volume than prospects at the end of April led
observers to expect, and on the whole exceeded the
volume of business done in May last year. Debits
to individual accounts each business day during the
four weeks ended June 9th slightly exceeded average
daily debits during the preceding period, ended May
1 2th, and were 6 per cent greater than debits during
the corresponding period a year ago, ended June
10, 1925. Business failures in the Fifth District
during May were fewer than in either April 1926 or
May 1925, and last month’s liabilities were also lower
than those of the preceding month or the same month
a year ago. Coal production in the District, although
at a lower rate than in earlier months, was above
seasonal average in May. Building permits issued in
May exceeded those of May 1925 in both number and
valuation. Retail trade in department stores was
nearly 10 per cent above trade in May 1925, and
was 12.5 per cent above average May trade during
the five years 1920-1924, inclusive. Wholesale trade
was also larger than in May a year ago in four of
six reporting lines, the two decreases being less than
1 per cent.

weather during the next few weeks, and Upon prices
next Fall for cotton and tobacco.

In spite of the large volume of business done in
May, however, the outlook for future business did
not improve. The textile industry is apparently no
nearer a solution of its problem than it was a month
ago, and operating time was reduced further during
May. The returns from this year’s agricultural op­
erations will play the leading part in determining
the volume of business during the latter half of the
year, and on the whole present indications are less
favorable than in other recent years. Cotton is late
and stands are poor, and in the Carolinas great dam­
age has been done in some sections by a long drought.
The Spring has been unusually cool and dry, and all
crops except apples—and in some cases truck and
small grains— have been greatly retarded in develop­
ment. It should be remembered, however, that crops
that appear virtually lost in June can with favorable
weather make a considerable recovery before harvest
time, and therefore present conditions should not
be regarded as conclusive. Much depends upon the

Between June 15, 1925, and June 15th this year,
changes in the condition statement of the Federal
Reserve Bank of Richmond were comparatively
slight. Rediscounts for member banks, which to­
taled $52,707,000 on June 15, 1925, dropped to $45,576.000 on June 15, 1926, and total bill holdings de­
clined from $62,610,000 to $57,590,000 between the
same dates. Member bank reserve deposits totaled
$64,040,000 011 June 15th, 1925, and $65,045,000 011
June the 15th this year. Federal reserve note circula­
tion was slightly higher on June 15th than a year
ago, an aggregate of $71,206,000 in actual circula­
tion on June 15th last year comparing with $71,989.000 in circulation on the corresponding date this
year. Cash reserves of the Federal Reserve Bank
of Richmond a year ago totaled $78,208,000, but on
June 15th this year had dropped to $76,709,000,
while the ratio of cash reserves to note and deposit
liabilities combined declined during the year from
57.40 per cent to 55.58 per cent.




RESERVE BANK OPERATIONS—

During
the month between May 15th and June 15th, both
this year, the volume of rediscounts for member
banks held by the Federal Reserve Bank of Rich­
mond declined from $48,916,000 to $45,576,000, a
seasonal recession, but the total of bills held by the
Reserve Bank rose from $56,388,000 to $57,590,000
as a result of an increase during the month from
$7,472,000 to $12,014,000 in acceptances purchased
in the open market. Member bank reserve deposits
declined from $65,355,000 on May 15th to $65,045,000 on June 15th, a mere daily change. The volume
of Federal reserve notes in actual circulation con­
tinued to decline, dropping from $74,013,000 to $71,989.000 during the month under review. The sev­
eral changes enumerated lowered the cash reserves
of the Federal Reserve Bank of Richmond from
$88,025,000 on May 15th to $76,709,000 on June
15th, and reduced the ratio of cash reserves to note
and deposit liabilities combined from 60.09 per cent
t0 55-S8 per cent.

The National Summary will be found on page 8

CONDITION OF SIXTY-EIGHT REPORTING MEMBER BANKS IN SELECTED CITIES
ITEMS
1.
2.
3.
4.
5.
6.
7.

Total Loans and Discounts (including
all rediscounts) ..................................
Total Investments in Bond and Securi­
ties ..................................................................
Reserve Balance with Federal Reserve
Bank ...............................................................
Cash in Vaults ............................................
Demand Deposits ......................................
Time Deposits ..................................................
Borrowed from Federal Reserve Bank....

June 16, 1926

May 12, 1926

June 17, 1925

$ 516,144,000
132.815.000
39.742.000
13.547.000
365.036.000
207.321.000
15.346.000

$ 521,854,000
135.658.000
38.682.000
13.783.000
372.844.000
207.029.000
16.147.000

$ 488,487,000
138.502.000
38.170.000
14.190.000
342.647.000
200.554.000
23.061.000

In the accompanying table, the chief items of condition for sixty-eight regularly reporting member banks
are shown as of three dates, June 16th and May 12th, both this year, and June 17, 1925, thus affording an
opportunity for comparing the latest available figures with those of the preceding month and the preced­
ing year. It should be understood that the figures mentioned for the different dates show the condition of
the reporting banks on the report dates only, and do not necessarily indicate that they were the highest or
lowest figures that occurred during the period reviewed.
During the month between the middle of May and the middle of June the pressure for credit in agri­
cultural sections normally lightens somewhat, crops being planted, fertilizer purchases arranged, and sales
of truck crops giving farmers some ready cash. This year the season is unusually late, and the demand
for credit has therefore not declined seasonally, but country banks have reduced their borrowing somewhat
from their city correspondents, enabling the latter to reduce their rediscounts at the Reserve Bank. Be­
tween May 12th and June 16th, the sixty-eight reporting member banks reduced their outstanding loans
and discounts to customers from $521,854,000 to $516,144,000, and their rediscounts at the Reserve bank
from $16,147,000 to $15,346,000. At the same time the sixty-eight banks built up their reserve deposits at
the Reserve bank from $38,682,000 to $39,742,000, and their time deposits rose from $207,029,000 to $207,321.000. Demand deposits, however, did not increase as they do in most years at this season, but instead de­
clined from $372,844,000 to $365,036,000, and the reporting banks reduced their investments in bonds and
securities from $135,658,000 to $132,815,000 during the month under review. Cash in vaults changed little,
dropping from $13,783,000 on May 12th to $13,547,000 on June 16th.
Compared with the figures reported on June 17, 1925, those of this year show a considerably larger vol­
ume of credit extended to customers by the reporting banks. Total loans and discounts, which stood at $488,487,000 on June 17th last year, rose to $516,144,000 011 June 16th this year, while aggregate borrowing by
the sixty-eight reporting banks at the Reserve bank declined between the same dates from $23,061,000 to $15,346.000. Total investments in bonds and securities by the reporting banks dropped from $138,502,000 to
$132,815,000 during the year, and cash in vaults also declined, from $14,190,000 to $13,547,000. On the other
hand, demand deposits rose from $342,647,000 to $365,036,000 and time deposits from $200,554,000 to $207,321.000. these deposit gains necessitating larger reserve deposits, which rose from $38,170,000 on June 17,
1925, to $39,742,000 on June 16, 1926.

SAVINGS DEPOSITS—

There was a seasonal decline in total deposits in fourteen regularly reporting
mutual savings banks in Baltimore during the month of May, but at the end of that month the total was
greater than on any other end of month date on record except April 30th this year. At the close of busi­
ness May 31st, aggregate deposits in the fourteen banks amounted to $154,327,333, compared with $154,783,083 on April 30th this year and $149,012,030 on May 3 1, 1925. Time deposits in sixty-eight regularly re­
porting member banks in thirteen leading Fifth District cities totaled $207,321,000 on June 16th, exceeding
the record total of $207,029,000 on May 12th this year and also the total of $200,554,000 on deposit in
the same institutions on June 17, 1925.

DEBITS TO INDIVIDUAL ACCOUNTS IN LEADING TRADE CENTERS
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 Reserve District during three periods of four weeks
each. The figures for the latest available period, ended June 9th, may be compared with those reported for
the preceding four weeks ended May 12th this year and with those of the corresponding four weeks ended
June 10, 1925.
Aggregate debits during the four weeks ended June 9th amounting to $1,220,528,000 showed a de­
crease of 1.5 per cent under the total of $1,239,007,000 for the preceding like period, ended May 12th, but
the later period contained over 4 per cent fewer business days than the earlier period, due to the Memorial
Day holiday and in Virginia and South Carolina to the Jefferson Davis Birthday holiday. Nine of the twentythree reporting cities showed higher figures during the four weeks ended June 9th than during the period ended



2

CITIES

TOTAL DEBITS FOR THE FOUR WEEKS ENDING
June 9, 1926

May 12, 1926

June 10, 1925

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.

$ 36,653,000
393,350,000
25,117,000
33,094,000
45,227,000
18,414,000
7,941,000
7,570,000
24,408,000
23,536,000
16,803,000
9,153,000
22,939,000
19,025,000
9,475,000
68,626,000
18,907,000
115,358,000
27,359,000
13,493,000
231,961,000
18,729,000
33,390,000

$ 36,344,000
406,450,000
24,164,000
32,242,000
49,442,000
17,468,000
8,729,000
7,737,000
20,646,000
27,073,000
19,436,000
9,664,000
23,610,000
19,325,000
8,658,000
73,713,000
13,895,000
115,370,000
26,445,000
14,132,000
228,423,000
19,457,000
36,584,000

$ 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

Total for 23 Cities......

$1,220,528,000

$1,239,007,000

$1,151,215,000

May 12th, while 14 cities reported lower totals for the more recent period. Most of the changes either way
were comparatively small.
Debits during the four weeks ended June 9th this year exceeded the total of $1,151,215,0 0 0 reported for
the corresponding four weeks in 1925 by 6 per cent, nineteen of the twenty-three centers showing higher fig­
ures for the period ended June 9, 1926, than for the like period ended June 10, 1925. Asheville led all re­
porting cities with a percentage gain of 46.6 per cent. An average increase of 6 per cent in debits this year
in comparison with a decrease of approximately 3 per cent ip the Federal Reserve Board’s wholesale price
index makes a very favorable showing for the volume of business done in the Fifth District during the
past month in comparison with the same month of 1925.

BUSINESS FAILURES

— Reviewing business failure returns for May in its issue of June 5th Dun's
Review says, “ The business mortality in the United States decreased substantially in May, both as to num­
ber of failures and amount of liabilities. Thus, 1,730 commercial defaults were reported, with an indebted­
ness of $33,543,318, these totals showing reductions of about 11.5 and 13 .1 per cent, respectively, from the
figures for the shorter month of April. During that period, failures numbered 1,957 and involved $38,487,321, while in March the number was 1,984 and the liabilities $30,622,547. Aside from the latter sum, the
indebtedness for May is the lightest reported for a single month since last October, while the number of de­
faults for May is the smallest for all months since last November. Comparing with the record for May of
last year, when the number of failures was 1,767 and the liabilities $37,026,552, the present returns show a
slight numerical decrease and a reduction of about 9.4 per cent in the indebtedness. The improvement over
the statistics for April of the current year extends to both the manufacturing and trading classifications, the
falling off in number of manufacturing insolvencies being especially marked. As to the liabilities, the trad­
ing division shows the largest decrease.”
Failures in the Fifth District during May followed the same trend as in the nation, falling below the
figures of both April 1926 and May 1925 in both number of insolvenies and liabilities involved. May 1926
witnessed 118 failures in the District, with liabilities totaling $1,963,570, compared with 134 failures and
liabilities of $3,320,683 reported for April this year and 13 1 failures for $5,752,331 reported in May last
year. In percentage improvement, the Fifth District shows up better than the national average.

COAL

— Following a seasonal trend, the rate of production of bituminous coal turned upward during
the first week in May, West Virginia’s output increasing perhaps more than any other state, enabling it to go
ahead of Pennsylvania in total production during the month. National production of soft coal during the first
132 working days of the current calendar year totaled 233,395,000 net tons, the second largest output for the
corresponding period of the past seven years, 1923 with 241,584,000 net tons alone exceeding this year’s
figure.
The production of anthracite coal since the termination of the miners’ strike has been at a higher



3

rate than during the preceding year, and reserve stocks are being steadily rebuilt. It remains to be seen,
however, whether production this summer can accumulate sufficient surplus to carry the country through
next winter without resort again to substitutes for hard coal.

TEXTILES

— Operations in textile mills were further curtailed during May when the consumption of
cotton by mills in the Fifth District amounted to only 209,204 bales, a decrease of 10.9 per cent under the
234,684 bales used in April and 18.0 per cent less than the 255,077 bales consumed in March this year.
May consumption was also 2.2 per cent below the 213,830 bales used in May 1925. North Carolina mills
used only 117,805 bales of botton in May this year, South Carolina mills used 81,904 bales, and Virginia
mills 9,495 bales, the North Carolina figures slightly exceeding consumption in May 1925 but the 1926 fig­
ures for South Carolina and Virginia falling considerably below those of the preceding year. Correspon­
dents among textile executives write that business is exceedingly hard to secure, practically all orders being of
a filling in nature, and complaint of unprofitable operations is quite general.

BUILDING OPERATIONS FOR THE MONTHS OF MAY 1926 AND 1925.
Increase or Per Cent
Premits Issued
New Construction
Alterations
Decrease
of
New
Repairs
of
CITIES
Increase 0
0
Total
or
z
1926 1925 1926 1925
1926
1925
1926
1925
Valuation Decrease Z
1 Baltimore, Md...... 598, 675 1,403 1,250 $ 4,209.600 $ 3,295,800 $ 674,760 $ 643,680 $ 944,880 24.0% 1
357,720
13,165
13,910
154,663 — 41.6 2
2 Cumberland, Md... 33 27 15 16 203,802
1
4 196,765
45,450
5,700
146,715 286.8 3
8
1,100
3 Frederick, Md...... 11
32,925
93,630
59,515 58.0 4
129,235
9,015
4 Hagerstown, Md... 26 36 25 16
4
59,435
10,695
5 35
57,786 301.0 5
17,546
8,500
5 Danville Va.......... 11
89,296
51,630
32,162
18,858
50,970 72.3 6
6 Lynchburg, Va..... 32 31 43 20
248,174
41,412
15,665 — 5.4 7
31,601
7 Norfolk, Va........... 62 121 65 48 242,320
4
6,141
17,966 95.9 8
5
30,550
17,375
1,350
7 10
8 Petersburg, Va.....
202,012 — 18.8 9
961,113
111,893
72,415
9 Richmond, Va. ... 153 182 83 108 798,579
270,512 58.5 10
356,740
105,454
10,326
10 Roanoke, V a ........ 121 94 59 53 722,380
50,950
46,125 — 45.7 11
97,550
7 12
3,950
3,475
11 Bluefield, W. Va... 24 22
12,549 13.0 12
73,625
23,075
7,497
12 Charleston, W. Va. 55 34 18 15 101,752
25,275
9,250
21,475 137.7 13
11,800
6,350
13 Clarksburg, W. Va 23 13 * 16 26
7
* 272,380
* 11,090
14
14 Huntington, W.Va. * 92
4
1,145
8 147,750
71,270 — 32.3 15
219,825
1,950
15 Parkersburg,W.Va 42 19
299,160
15,014
17,375
276,403 87.3 16
16 Asheville, N. C..... 102 45 68 46 577,924
350,426 — 31.3 17
8 19 760,599 1,082,050
10,300
39,275
17 Charlotte, N. C..... 76 64
305,957 98.4 18
299,878
37,885
11,200
18 Durham, N. C...... 40 34 26 11 579,150
205,739 — 43.4 19
443,335
128,825
30,765
19 Greensboro, N. C. 57 67 43 31 139,536
17,585
4,150
5.5 20
7 327,720
315,735
9,750
20 High Point, N. C... 83 76 15
283,330 75.9 21
8 637,425
366,949
18,954
6,100
21 Raleigh, N. C........ 41 78 12
64,965 132.7 22
7 19
98,745
35,450
15,190
13,520
22 Salisbury, N. C..... 23 16
13,800 — 36.6 23
5,000
5
5
17,200
32,700
6,700
23 Wilmington, N. C. 9 11
126,126 39.1 24
288,411
38,260
33,913
24 Winston-Salem, N. C. 89 89 53 82 410,190
25,862
147,218 306.8 25
87,700
107,510
22,130
25 Charleston, S. C ... 8 22 25 56
25,500
11,795
34,257 — 98,512 — 72.5 26
101,550
26 Columbia, S. C..... 12 24 30 56
— 100,500 — 51.0 27
8,150
48,305
188,940
48,285
27 Greenville, S. C.... 18 26 28 18
28,847 — 26.6 28
13,406
63,460
95,006
16,105
28 Spartanburg, S. C. 31 24 30 27
920,945 — 14.9 29
532,018
936,585
29 Washington, ,D. C. 274 139 382 510 4,323,670 5,649,182
Totals........... 2,061 1,992 2,511 2,479 $15,008,503 $15,059,053 $2,414,806 $1,768,808 $ 595,448
3.5%
* 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.
—

—

—

—

—

—

—

—

—

Twenty-eight Fifth District cities for which both 1926 and 1925 building permit figures are available
issued 2,061 permits for new construction in May this year, exceedingly slightly the 1,992 permits issued in
May 1925, but total estimated valuation figures of $15*008,503 for May 1926 were slightly below the total of
$15,059,053 reported for May last year. In alteration and repair work, permits issued this year numbered
2 ,5 11 compared with 2,479 issued in May 1925, while valuation figures for the work totaled $2,414,806 this
year and $1,768,808 last year. Total valuation figures for both new construction and alteration or repair work
amounted to $17,423,309 in May this year, an increase of $595,448 or 3.5 per cent, over the total for all
classes of permits of $16,827,861 in May 1925. A majority of the twenty-eight reporting cities exceeded
their May 1925 valuation figures, sixteen cities reporting higher figures this year while twelve cities re­
ported reduced totals. The largest percentage increases were due rather to comparatively low figures in May
last year than to exceptionally high figures this year, but increases representing real gains were reported for
Baltimore, Frederick, Roanoke, Asheville, Durham, Raleigh, Salisbury, and Winston-Salem.
The F. W. Dodge Corporation reports contracts awarded for construction in the Fifth District totaling
$ 31 >859,429 in May 1926, of which $15,390,459 was for residential contracts, compared with total awards
for $39,005,445 in April, of which $19,997,145 was for residential work.



4

COTTON

— Influenced by favorable weather conditions, large stocks of cotton on hand, and declining
consumption both at home and abroad, cotton prices have worked down to the lowest level reached since the
end of April 1922. In our May 31st Review, we traced weekly average spot cotton prices in the Carolinas
through the week ended May 15th, the average for that week being 17.22 cents per pound for middling
short staple. During the following week the average declined to 17.03 cents, and remained approximately
stationary at 17.08 cents during the seven days ended May 29th. A temporary upward swing during the first
week in June carried the average price to 17.19 cents, but the rise was not sustained, the average for the latest
week for which data are available, ended June 12th, dropping to 16.97 cents, the first time spot cotton prices
have gone below 17 cents in four years.
Cotton consumption continued to decline during May, falling below that of April this year and May last
year. The Census Bureau’s June 14th report gives May 1926 consumption as 516,758 bales, compared with
575,799 bales used in April this year and 531,668 bales in May a year ago. Total consumption for the ten
months of the present cotton year—August 1, 1925 to June 1, 1926—amounted to 5,47!,565 bales, compared
with 5,225,408 bales consumed during the corresponding ten months of the preceding cotton year. Cotton on
hand at manufacturing establishments at the end of May totaled 1,449,932 bales, compared with 1,639,174
bales a month earlier this year and 1,343,019 bales on May 31, 1925. Public warehouses and compresses held
2,964,824 bales in storage on May 31st, compared with 3,530,811 bales on April 30, 1926, and 1,139,652 bales
so held on May 3 1, 1925. Active spindles dropped to 32,267,410 during May, compared with 32,893,042 spin­
dles active in April this year and 33,136,926 spindles active in May a year ago. April exports of 419,459 bales
showed a decided drop below the 516,494 bales shipped over seas in April, but exceeded shipments of 330,967
bales in May 1925. Imports in May totaled 13,626 bales, in April this year 33,464 bales, and in May last
year 14,219 bales.
Consumption of cotton in cotton growing states totaled 363,475 bales in May, a lower amount than the
total of 404,014 bales consumed in April but more than the 359,010 bales used in cotton growing states in
May 1925.
The condition of this year’s cotton crop is quite spotted in the Fifth District, and is not up to the national
average. No official reports have been issued this year on the growing crop, but the best information avail­
able seems to indicate that in the cotton growing states as a whole the weather has recently been favorable for
growth, and the plants have made distinct progress, although the crop is still decidedly late. In the Fifth
District, the weather has been either too dry for proper germination of seed or too cool for development of
plants already up. Parts of the Carolinas have had reasonably satisfactory weather, but some of the best cot­
ton growing counties are suffering from a severe drought. In South Carolina the counties needing rain are
the same counties that suffered most from the long drought of last summer, and this year conditions are worse
than they were a year ago, the lack of moisture having been felt earlier in the season. Cotton can recover a
great deal of lost ground, however, if conditions are favorable during the balance of the season, but it is yet
difficult to estimate with any degree of accuracy the probable yield.

AGRICULTURAL NOTES

— M A R Y L A N D fruit prospects are bright. Apples and peaches set well,
the fruit is large for this season of the year, and the June drop left plenty of fruit on the trees to assure an
excellent yield. Other leading crops have been retarded by cool and dry weather, however, and in general
the farm outlook in Maryland is less favorable than at the same time last year. Corn planting was late,
the weather was unusually cold, and much damage was done by cut worms. Considerable replanting has
been done. Tobacco growers were forced to transplant when the weather was too dry, and the stands are con­
sequently poor. Plants set out were low in quality in many cases. Hay and pasture condition is very low,
averaging about 20 points below last year. Truck crops are doing moderately well. Strawberry returns
were fairly satisfactory and potatoes are making fairly good growth on an increased acreage.
V IR G IN IA farm work and the growth of all crops were greatly retarded by unfavorable weather during
May, and the condition of all crops on June 1st was below the ten year average, according to the monthly
report of the Virginia Crop Reporting Service. The work of planting corn, peanuts and tobacco, most of
which is usually completed by June 1st, was delayed, and a large percentage of these crops still remained to be
planted after that date. The corn crop came up fairly well, but owing to the unfavorable weather conditions
growth has been very slow and there has been damage from cut worms, making considerable replanting nec­
essary. Dry weather in the tobacco section delayed planting, and growers who set out plants during May had
great difficulty in getting a stand. Rains during the last of May and since the first of June were beneficial,
and farmers have been able to make considerable progress with their plowing and planting since that time.
Rain has not been sufficient to meet the crop needs, however, and the rains that have fallen have been more or
less local showers. Hay crops throughout the state are in very poor conditions, averaging 57 per cent of a
normal on June 1st in comparison with the ten year average of 80 per cent on the same date. Pastures de­
clined in condition during May because of the exceedingly dry weather. In many sections farmers had to
feed their stock, and many stated that this was the first time they had ever fed cattle during the month of
May. The poor condition of pasturage has retarded the growth of lambs and prevented cattle from making the
usual improvement. Virginia fruit prospects vary widely, apples promising a larger than average crop, while
most other fruits have been so seriously damaged by cold weather, late frosts, and lack of moisture that



5

very small yields are indicated. Apples seem to be setting unusually well, especially in commercial orchards,
the June ist condition averaging 70 per cent in comparison with the ten year average of 53 per cent. The
production of the two most important varieties, York Imperial and Winesap, is expected to be quite large,
Winesaps having set unusually well. The peach crop suffered severely from frosts, but most of the dam­
age was to farm orchards and commercial growers expect a moderate yield. Blackberries and huckleberries
have set well and with favorable weather may produce a good crop, but the strawberry crop was less than
was expected. Prices for strawberries were good, however, and growers probably got as much money for
their crops as a larger yield would have brought.
N O RTH C A R O L IN A has received some good rains and fairly warm weather since June ist, and farm
conditions have distinctly improved, according to the June n th report of the Crop Reporting Service of the
State Department of Agriculture. Rain has fallen in all sections east and north of Raleigh, but the south­
ern Piedmont and many western counties report that they are still greatly in need of rain. The principal
damage from the cool and dry weather was its effects on seed germination, especially on cotton, retarded plant
growth, and reduction in quality of truck and fruit. Corn is reported in better condition than other crops,
with good stands the rule and little replanting necessary. Corn prospects are considered bright. Wheat
averages from fair to very good. The expected yield per acre is slightly below the yield last year, but a
larger acreage this season is expected to increase total production for the state about 8 per cent. Tobacco has
suffered probably as much as any other crop from the dry weather. Stands are poor and irregular, and when
plants were set out it was generally necessary to water them. The recent rains were best in the tobacco
section, however, and although they were insufficient to supply the needs of the crop, they improved the
crop distinctly and farmers report good growth toward the middle of June. The season is from ten days
to three weeks late, however. Commercial potato crops averaged about 100 to 105 bushels per acre, but
many of the potatoes are smaller than usual as a result of the excessively dry weather. Shipments are
moving in quantities. Other truck crops in eastern counties were held back by the drought and are consid­
erably backward for the season, but have improved with recent rains. Some are still in need of rain, but
prospects are generally fair. A good crop of apples is expected, present conditions averaging 8 points above
the condition on June ist last year. The best conditions are in commercial orchards in the northwestern
counties. Hay prospects are very poor, and pastures are extremely dry and short.
SO U TH C A R O L IN A small grains produced one of the best crops on record this year, but other farm
prospects in the state are the poorest in the Fifth District. The northern and northwestern counties have
suffered a drought probably more severe than that of last summer, and stands of all crops in those sections
are very poor. The coastal counties have good crops, and the tobacco crop is making fairly satisfactory prog­
ress, but present indications are for lower yields in all crops this year except grains.

FIGURES ON RETAIL TRADE
As Indicated By Reports from Thirty-One Representative Department Stores for the
Month of MAY 1926
Percentage increase in May 1926 sales over sales in May 1925:
Baltimore
Richmond
Washington
Other Cities
D istrict
8.2
6.9
11.1
9.9
9.3
Percentage increase in cumulative sales from January 1st through May, over sales during the corresponding five
months in 1925:
1.6
2.0
8.0
3.6
4.2
Percentage increase in May 1926 sales over average May sales during the five years 1920-1924, inclusive:
0.5
33.5
23.7
8.3
12.5
Percentage increase in stock on hand May 31, 1926, over stock on May 31, 1925:
5.5
5.5
7.3
— 2.4
5.1
Percentage increase in stock on hand May 31, 1926, over stock on April 30, 1926:
— 3.5
— 0.4
— 4.2
— 3.5
— 3.5
Percentage of sales during May 1926 to average stock carried during that month:
27.0
26.1
29.1
23.9
27.3
Percentage of cumulative sales since January 1st to average stock carried during each of the five months:
126.2
129.5
136.4
111.3
128.0
Percentage of outstanding orders on May 31st, to total purchases of merchandise in 1925:
4.2
3.8
5.0
5.0
4.6
Percentage of collections in May, to total accounts receivable on May 1st this year:
25.2
27.7
39.0
32.8
29.3
— Denotes decreased percentage.
Retail trade during May in the Fifth Reserve District, as reflected in sales by thirty-one large department
and general stores widely scattered throughout the District, averaged 9.3 per cent larger in dollar amount




6

than sales made by the same stores in May 1925, twenty-three of the thirty-one stores reporting higher fig­
ures this year. Cumulative sales during the five elapsed months of 1926 exceeded sales during the corre­
sponding period last year by 4.2 per cent, and May 1926 sales were 12.5 per cent greater than average May
sales during the five years 1920-1924, inclusive.
Stocks of merchandise on the shelves of the reporting stores declined 3.5 per cent between April 30th
and May 31st, but 011 the latter date averaged 5.1 per cent larger than on May 3 1, 1925. The percentage
of sales to average stocks carried during May was 27.3 per cent, and the percentage of total sales since
January 1st to average stock carried during each of the five months was 128.0 per cent, indicating an annual
turnover rate of 3.07 times, almost exactly the same figure attained during the corresponding period of 1925.
May collections were slower than those of April, but were slightly better than in May last year. The
percentage of collections in May 1926 to outstanding receivables on May 1st was 29.3 per cent, compared
with 3 1.1 per cent of outstanding receivables collected during April this year and 29.2 per cent collected in
May 1925.

WHOLESALE TRADE, MAY 1926________ __________________ __
Percentage increase in sales in May 1926, compared with sales in May 1925:
36 Groceries
14 D ry Goods
11 Shoes
18 Hardware
5 Furniture
13 Drugs
— 0.7
10.8
18.0
7.6
0.8
— 0.1
Percentage increase in sales in May 1926, compared with sales in April, 1926:
— 0.8
— 2.4
2.2
— 0.1
13.8
— 5.2
Percentage increase in sales from Jan. 1, 1926, through May, compared with sales during the same five months
in 1925:
— 1.4
— 1.5
6.0
— 1.8
— 3.0
4.3
Percentage increase in stock on May 31, 1926, compared with stock on May 31, 1925:
3.9(10)
_ 1 8 .2 (6 )
— 1.3(5)
0.01(6)
Percentage increase in stock on May 31, 1926, compared with stock on April 30, 1926:
— 4.3(10)
— 8.9(6)
4.0(5)
— 5.6(6)
Percentage of collections in May to total accounts receivable on May 1, 1926:
67.5(22)
32.7(9)
33.1(9)
33.3(13)
44.3(3)
56.7(9)
— Denotes decreased percentage.
NOTE: The number of firms reporting stock and collection data in each group is shown immediately following
the percentages.
Ninety-seven wholesale firms in six important lines of trade reported 011 their May business. Increased
sales during the month in comparison with sales during May 1925 were shown in dry goods, shoes, hard­
ware and furniture, but sales of groceries and drugs were slightly below sales during the corresponding month
last year. In comparison with sales made in April this year, May sales gained in shoes and furniture, but de­
clined in groceries, dry goods, hardware and drugs. Total sales since January 1st were larger in shoes and
drugs than during the corresponding five months in 1925, but grocery, dry goods, hardware and furniture sales
were smaller this year than last.
Stocks on hand increased in shoes during May, but declined in groceries, dry goods and hardware. On
May 31st, stocks in grocery and hardware lines were larger than a year ago, but stocks of dry goods and shoes
were smaller.
Collections during May were slower than in April in all lines except groceries. The percentage of
collections during May to outstanding receivables on the first of the month naturally varied widely between
the several lines, ranging from 67.5 per cent in groceries down in the order named through drugs, furniture,
hardware and shoes to dry goods, which averaged 32.7 per cent.




(Compiled June 21, 1926)

7

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

Federal R esm e Board's indexes of factory employment and pay rolls (1919100). Latest figures, May, employment 94.8, pay rolls 108.8.
PER CENT

2001----------

PER CENT

---------- [200

WHOLESALE PRICES

Index of U. S. Bureau of Labor Statistics (1913-100, base adopted by Bureau).
.Latest figure-May 151.7.

Monthly averages of weekly figures for banks in 101 leading cities. Latest
figures are averages for first three weekly report dates in June.
PERCENT

6

W

\J

’I

1

T| --------

...

r\^Jr

v C V ”*
i /

Lr

Production in basic industries and factory employment declined
further in May, while wholesale prices advanced slightly for the
first time in seven months. The volume of trade at wholesale and
at retail increased, partly as the result of more favorable weather
conditions.
PRODUCTION. Activity in most lines of industry was smaller
in May than in April. The reduction was reflected in a decreased
volume of output as well as in a decline in the number of factory
workers and in total wage payments. The largest declines occurred
in the textile, leather and shoe and iron and steel industries. Pro­
duction of automobiles continued large in May. In the lumber,
cement, brick and glass industries activity was maintained and there
were seasonal increases in the output of certain food products. The
volume of building contracts awarded declined further in May, but
continued larger than in May of last year. Figures for the first
three weeks of June indicate further decreases and the volume of
contracts awarded was smaller in that period than in the corre­
sponding weeks of 1925. Recent declines in contracts as compared
with last year have been particularly large in Middle Western and
Southeastern districts. Reports by the Department of Agriculture
indicate that the composite condition of crops on June 1st was eight
per cent below the average condition on that date for the past ten
years and somewhat lower than the average condition a year ago.
On the basis of the June 1st condition the estimated yield of winter
wheat was 543,000,000 bushels, as compared with an estimate of
549.000.000 bushels made a month earlier and a final yield of
398.000.000 bushels in 1925.
TRADE. With more favorable weather in May than in the
preceding month, the volume of wholesale and retail trade increased
and was larger than in May of last year. Department store sales
exceeded those of earlier months of this year and total sales for
the first five months were larger than for the corresponding period
of any preceding year. Merchandise stocks carried by wholesale
firms were slightly smaller at the end of May than a month earlier.
Stocks of groceries, hardware and drugs were larger than a year
ago, but those of meats, dry goods and shoes were smaller. Ship­
ments of miscellaneous commodities were especially large.
PRICES. The general level of wholesale commodity prices,
according to the index of the Bureau of Labor Statistics, rose
slightly in May for the first time since last August. Price advances
were shown both for agricultural and non-agricultural commodities.
Among the principal advances were those in the prices of gasoline,
live stock and meat, while prices of grains and cotton declined.
BANK CREDIT. Growth in loans on securities and commercial
loans carried total loans and investments of reporting member banks
in leading cities in the middle of June to a new high point above
the total reached at the close of last year. At the Reserve banks
changes in the volume of credit outstanding during the month end­
ing June 23rd reflected chiefly the financial operations of the United
States Treasury around the middle of June. The temporary abun­
dance of funds caused by the redemption of maturing United States
obligations on June 15th caused a sharp decline in borrowings of
member banks, particularly -in New York City. As checks in pay­
ment of income taxes were cleared and collected, however, borrow­
ings at the Reserve banks rose to their previous level. Money rates
in general showed little change during the month. Rates on call
and time loans were slightly lower around the middle of June, but
in the third week were higher than in the latter part of May. Rates
on acceptances and on commercial paper remained practically un­
changed.

MC(NEYRATES
—
—
—

Comme,rcio/ Paper Fa ife
N.Y.Re,serve Bank Discount Rate
Accepti7/)ce Rate

..... 1

1925

1926

Weekly rates in New York money market; commercial paper rate on I to 6
. months paper and acceptance rate on 90 day paper.




8