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MONTHLY REVIEW
CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS
WILLIAM W. HOXTON,
C h a ir m a n a n d F e d e r a l R e s e r v e A g e n t
FEDERAL RESERVE BANK OF RICHMOND
RICHMOND, VIRGINIA
JUNE 30, 1934
cumulation of goods in their ware
H ERE were no outstanding devel
FIFTB FEDERAL RESERVE DISTRICT houses. South Carolina led all states
opments in business circles in the
in spindle activity in April, the latest
Fifth Federal reserve district during
month for which statistics are avail
May and early June. There were con
able. Spot cotton prices fluctuated continued signs of some tapering off from
sedirably between the middle of May
recent activity, as mentioned last
and the middle of June, but on the
month, but on the whole trade was
whole the movement of prices was up
about at seasonal level in comparison
ward. Tobacco factories continued full
with the past few months. Redis
time operations. Retail trade in de
counts for member banks at the Fed
partment stores in the Fifth district
eral Reserve Bank of Richmond con
made an excellent comparison with the
tinued to decline, finally falling below
volume of business in May last year.
one milion dollars. Member banks are
Wholesale trade in all lines except
nearly all in position to care for legiti
shoes for which figures are available
mate calls upon them for credit without
was in materially larger volume than
assistance from the reserve bank. Fed
trade in the corresponding month last
eral reserve notes in circulation made a
slight advance last month, an unusual development at year, and groceries, dry goods and drugs also showed
this season. Member bank reserve deposits were re gains in sales over those in April this year. Fertilizer
duced sharply between the middle of May and the mid sales this year were, larger than sales in the spring of
dle of June, due chiefly to purchase of Government 1933. No material change has yet occurred in con
securities for investment by some of the larger banks. struction work, which continues to be the greatest han
Reporting member banks in the larger cities of the dicap to the recovery program. Prospects for crops in
Fifth district showed practically no change in loans ,the Fifth district are quite varied, some sections having
during the past month, but their deposits declined mod had too much rain while drought conditions developed
erately. None of the regularly reporting member banks in other parts of the district. Fruit yields promise to
are borrowing at the reserve bank at the present time. be much less than last year in quantity, but the quality
Debits to individual accounts in twenty-three cities dur of commercial apples is notably better this year. Grain
ing five weeks ended June 13 showed a decrease of 7 crops are fairly good, on the whole. Growers of early
per cent under debits in the preceding five weeks, ended Irish potatoes are receiving disastrously low prices for
May 9, the decrease probably being due to some quar their crop, the lowest since 1928. North Carolina
terly payments in the earlier period. The record of farmers are getting around $1.65 per barrel, and Vir
commercial failures continued highly favorable, May ginia farmers about $2 per barrel, less commissions to
witnessing a 48 per cent decline in number of insolven selling agents.
cies in comparison with the number in May last year,
and liabilities being considerably less than half those Reserve Bank Statement
of the earlier month. Employment showed no mate
The figures in the accompanying table show principal
rial change in May and early June, except for short
ened hours of work in the textile field in June. Coal items from the condition statement of the Federal Re
production in May increased over April production, and serve Bank of Richmond as of three mid-month dates,
also exceeded production in May 1933. Fifth district June 15 and May 15,1934, and June 15,1933. During
textile mills operated at a slightly lower rate in May, the past month, rediscounts for member banks con
and restricted output further in June, to prevent ac tinued to decline, and on June 15 had dropped to less
T
MONTHLY REVIEW
2
000 omitted
ITEMS
June I d
1934
May 15
1934
June 15
1933
Rediscounts h eld ---------------- $ 888 $ 1,264 $ 15,003
219
290
193
Open {market paper------------53,717
Government securities ---------- 103,563 103,563
69,010
Total earning assets----------- 104,644 105,046
Circulation of Fed. Res. notes.. 142,769 142,321 142,937
62,864
Members’ reserve deposits------ 123,088 150,847
Cash reserves_____________ 189,025 214,196 176,678
70.93
74.94
Reserve ra tio -------------------65.51
than one million dollars. The portfolio of open mar
ket paper, which has been low for more than a year,
also decreased further last month. Holdings of Gov
ernment securities remained the same between May 15
and June 15. The decreases in rediscounts and open
market paper lowed total earning assets by $402,000
last month. Federal reserve notes in actual circulation
showed an increase of $448,000 between the middle of
May and the middle of June, a rise contrary to seasonal
trend. Member bank reserve deposits, which have been
much higher than the law requires, were reduced by
$27,759,000 during the month under review, chiefly due
to investments by member banks in recent issues of
Government obligations. In spite of the reduction, re
serve deposits continue very high. The several changes
in the statement previously mentioned, with others of
less importance, lowered the cash reserves of the Fed
eral Reserve Bank of Richmond by $25,171,000 be
tween May 15 and June 15, and also reduced the ratio
of cash reserves to note and deposit liabilities combined
by 5.42 points.
Comparison of the June 15, 1934, condition figures
with those for June 15, 1933, shows material changes
in most of the items. Rediscounts decreased by $14,115,000 during the year, falling from $15,003,000 last
year to $888,000 on June 15. Open market paper also
decreased by $97,000, but little of it was held either
last year or this. Holdings of Government securities
rose by $49,846,000 between June 15 last year and this,
an increase of over 90 per cent. Total earning assets
rose by $35,634,000 during the year, the increase in
Government security holdings greatly exceeding de
creases in rediscounts and open market paper. Federal
reserve note circulation changed only $168,000 between
June 15 last year and this but during the year there
were wide variations. Member bank reserve deposits
rose $60,224,000 during the year, member banks being
unable to employ their funds in satisfactory loans or
investments. The changes in the statement raised the
cash reserves of the Richmond bank by $12,347,000
during the year, but the ratio of reserves to note and
deposit liabilities combined dropped 9.43 points.
Statement of 28 Member Banks
Twenty-eight member banks in leading cities of the
Fifth Federal reserve district send weekly condition
reports to the Federal Reserve Bank of Richmond, and
the accompanying table shows totals of the principal
ITEMS
000 omitted
June 13 May 16 June 14
1934
1934
1933
Loans on stocks & bonds (in
cluding Governments) _____ $ 60,285 $ 59,750 $ 59,519
All other loans____________ 108,837 111,055 110,714
Total loans & discounts____ 169,122 170,805 170,233
Investments in stocks & bonds.. 169,097 170,099 142,940
Reserve bal. with F. R. Bank.... 47,466
51,262
22,812
Cash in vaults__________
9,312
11,324
10,440
Demand deposits __________
213,916 221,141
176,546
Time deposits_____________ 134,537 135,029 126,033
Borrowed from F. R. Bank._
0
339
0
items as of three dates. June 13, 1934, figures are
compared yith those for May 16, 1934, and June 14,
1933, thus affording opportunity for comparison of
the latest figures with those of the preceding month and
the preceding year.
j Between May 16 and June 13, both this year, changes
| in the condition figures were relatively small. Total
: loans and discounts decreased by $1,683,000, a drop in
j all other loans of $2,218,000 more than offsetting an inj crease of $535,000 in loans on securities. Investments
I in stock and bonds by the twenty-eight reporting banks
j decreased by $1,002,000 between the middle of May and
j the middle of June, and aggregate reserve balance at
! the reserve bank dropped by $3,796,000. Cash in vaults
: rose $884,000 last month. There was a decrease in
j deposits between May 16 and June 13, probably caused
i by customers’ investments in Government securities.
1Demand deposits decreased by $7,225,000 and time de
posits dropped $492,000. None of the reporting banks
j were borrowing at the tFederal Reserve Bank of Rich: mond on either May 16 or June 13.
All of the figures except loans and discounts show
material changes during the past year. Loans on stocks
l and bonds rose $766,000 between June 14, 1933, and
1June 13, 1934, but all other loans, which are chiefly
j commercial or agricultural, declined by $1,877,000, giv: ing a net decrease in loans and discounts of $1,111,000.
j Investments in securities, most Government obligations,
; rose $26,157,000 during the year, and the reporting
! banks increased their reserve deposits at the Federal
| reserve bank by $24,654,000. Cash in vaults rose $2,012,000. Deposits increased $45,874,000 between June
| 14 last year and June 13 this year, of which $37,370,000
I was in demand deposits and $8,504,000 was in time de| posits. A year ago two of the twenty-eight reporting
banks were borrowing a total of $339,000 at the FedI eral reserve bank, but none of them were borrowing
j on June 13, 1933.
i
Time and Savings Deposits
Time deposits in twenty-eight regularly reporting
: member banks and aggregate deposits in eleven mutual
• savings banks in Baltimore totaled $326,631,808 at the
j end of May 1934, a higher figure than either $326,402,| 521 in time and savings deposits at the end of April
I this year or $319,744,321 at the end of May last year.
| Reporting member banks showed a decline in time de
MONTHLY REVIEW
posits during the past month but gained during the past
year, while the mutual savings banks gained deposits
last month but showed a decline for the year.
Debits to Individual Accounts
000 omitted
Total debits, five weeks ended
June 14,
June 13,
May 9,
1933
1934
1934
Asheville, N. C— ....
Baltimore, Md...........
Charleston, S. C.......
Charleston, W. Va.—
Charlotte, N. C.-----Columbia, S. C..........
Cumberland, Md.........
Danville, Va..............
Durham, N. C..........
Greensboro, N. C.---Greenville, S. C.-----Hagerstown, Md. ......
Huntington, W. Va.....
Lynchburg, Va...........
Newport News, Va....
Norfolk, Va...............
Portsmouth, Va.........
Raleigh, N. C._____
Richmond, Va............
Roanoke, Va..............
Washington, D. C... .
Wilmington, N. C.....
Winston-Salem, N. C.
$ 9,381
299,020
12,397
52,660
49,792
19,567
7,045
5,440
22,355
12,055
14,606
6,841
13,126
15,041
7,540
46,351
3,607
19,132
123,755
21,420
196,330
8,559
29,334
$ 11,549
333,380
12,530
46,060
54,146
18,737
6,872
5,680
22,971
13,088
17,506
7,502
13,691
15,857
7,244
47,260
3,761
24,513
134,656
23,450
208,771
10,040
31,344
$ 8,642
237,962
11,325
34,560
41,978
10,789
6,017
4,909
21,384
3,746
13,110
5,337
10,577
13,158
6,576
38,009
3,762
14,074
.109,798
19,175
199,002
7,461
31,101
Fifth District Totals
$995,354
$1,070,608
$852,452
Debits to individual, firm and corporation accounts
in the banks in twenty-three trade centers in the Fifth
Federal reserve district are shown in the accompany
ing table for three equal periods of five weeks, ended
June 13 and May 9 this year and June 14 last year.
These figures reflect the volume of business which
passed through the banks in the several cities during
the periods under review.
In the five weeks ended June 13, 1934, aggregate
debits in the reporting cities amounted to $995,354,000,
a decrease of $75,254,000, or 7.0 per cent, in compari
son with debits during the preceding like period, ended
May 9. All of the reporting cities showed lower fig
ures for the more recent period except four, higher fig
ures being shown for Charleston, W. Va., Columbia,
Cumberland, and Newport News. At least part of the
decline in debits during the five weeks ended June 13
was due to inclusion of some quarterly payments in the
earlier period, ended May 9.
In comparison with debits reported for the five weeks
ended June 14, 1933, those for the corresponding five
weeks this year showed an increase of $142,902,000, or
16.8 per cent, part of which is probably accounted for
by higher price levels this year in many lines. All of
the reporting cities showed higher figures for the 1934
period except Portsmouth, Washington and WinstonSalem, and in these the declines were very small.
3
Commercial Failures
Dun & Bradstreet Monthly Review for June states
that business failures in the United States during May
1934 dropped to the lowest level since October 1920,
but the record in the Fifth district, while very favor
able, did not compare so well with other recent months.
In the United States there were only 977 bankruptcies
last month, with aggregate liabilities of $22,560,835,
compared with 1,909 bankruptcies and indebtedness of
$47,971,573 in May last year. In the Fifth reserve
district, May 1934 failures numbered 64, with total
indebedness of $1,706,753, compared with 124 failures
in May 1933 with liabilities totaling $3,875,986. In
comparison with number of failures in May last year,
those in May this year showed practically the same
percentage decline in the Fifth district as in the United
States as a whole, and the decline in liabilities was 3
per cent more in the district than in the nation. How
ever, fewer failures were reported in the district in
February, March and April, while the number of fail
ures in the nation last month was the lowest in nearly
14 years. Individual states in the Fifth district re
ported bankruptcies for May 1934 and May 1933 as
follows: Maryland 18 and 52, District of Columbia 9
and 9, Virginia 16 and 18, West Virginia 12 and 23,
North Carolina 9 and 22, South Carolina 0 and 0. All
of the twelve Federal reserve districts reported fewer
insolvencies and lower aggregate indebtedness in May
1934 than in May 1933, the Dallas and Atlanta districts
making the best records last month with 18 and 19 in
solvencies, respectively.
Employment
i
Widespread unemployment probably continues to be
the chief obstacle in the way of business revival in the
Fifth reserve district, although conditions are somewhat
better than they were a year ago, and apparently are
no worse than in other sections of the country. As we
pointed out last month, former CWA workers have not
been absorbed in private industry, but many of the
workers in the lower half of the district will not accept
farm work at wages the farmers can afford to pay.
Construction has shown only a small seasonal increase
since winter, and in this field unemployment continues
to be more prevalent than in other lines. The tobacco
industry continues operations on full time, coal pro
duction is fully up to seasonal levels, and the textile
industry is employing its full quota of workers, al
though each worker is temporarily on shorter hours
than in other recent months.
Coal Production
Production of bituminous coal in the United States
during the month of May 1934 amounted to 28,100,000
net tons, an increase over 24,772,000 tons mined in
April this year and also more than 22,488,000 tons dug
in May last year. On a daily basis, May output of
1,064,000 tons also exceeded output in both of the
earlier periods. Total production of soft coal during
the present calendar year to June 9 amounts to 164,-
4
MONTHLY REVIEW
Textile mills in the Fifth reserve district operated at
a slightly lower rate in May than in April, and at a con
siderably lower rate than in May last year. Fifth dis
trict mills consumed 233,324 bales of cotton in May
1934, compared with 227,550 bales in the shorter month
of April this year and 292,625 bales in May last year.
Of last month’s consumption, North Carolina mills used
118,285 bales, South Carolina mills used 101,146 bales,
and Virginia mills used 13,893 bales. Consumption of
cotton in the Fifth district in May amounted to 44.89
per cent of National consumption, compared with 47.13
per cent of National consumption for the district in
May last year. Demand for cotton goods was quite
irregular in May and early June, some lines securing
numerous orders while others found little call. Under
permission from NRA authorities, mills are curtailing
operations approximately 25 per cent during June and
July, to prevent accumulation of manufactured goods
during slack months.
The Bureau of the Census issued a report on May
21 on activity in the cotton spinning industry for April.
On April 30 there were 31,011,200 spindles in place in
the United States, of which 26,450,750, or 85.3 per cent,
were active a total of 7,260,010,234 spindle hours dur
ing the month, an average of 234 hours per spindle
in place. In the Fifth reserve district there were 12,580,026 spindles in place on April 30, of which 11,852,028, or 94.2 per cent, operated a total of 3,499,700,273 spindle hours in April, an average of 278 hours
per spindle in place. South Carolina with an average
of 308 hours per spindle led all states, North Carolina
with 253 hours ranked fifth, and Virginia with 251
hours ranked sixth, all being above the United States
average of 234 hours.
averaged 11.26 cents per pound for middling grade.
The week ended May 18 witnessed a rise to 11.43 cents,
but there was then a recession to 11.33 cents on May
25. In the last week in May and the first week in June
the price rose to 12.04 cents on June 8, but on June 15
the average price was again down slightly, to 11.97
cents.
Consumption of cotton in the United States in May
1934 totaled 519,765 bales, compared with 512,703 bales
used in the shorter month of April this year and 620,561
bales in May 1933. Total consumption for the ten
months of the present cotton season—August 1 to May
31—amounted to 4,977,772 bales, compared with 4,839,493 bales consumed in the corresponding period of
the 1932-1933 season. Manufacturing establishments
held 1,421,428 bales on May 31, compared with 1,584,746 bales held on April 30 and 1,392,209 bales on May
31, 1933. Public warehouses and compresses held 6,570,664 bales in storage at the end of May this year,
compared with 7,101,941 bales so held a month earlier
and 7,323,146 bales on May 31 last year. May exports
totaled only 284,764 bales, compared with 591,647 bales
sent abroad in May 1933. Exports during the ten
months of this cotton year totaled 6,769,369 bales, com
pared with 7,112,831 bales shipped over seas during the
corresponding ten months ended May 31, 1933, nearly
all foreign countries having taken less American cotton
this year. Spindles active at some time during May
numbered 25,891,366, compared with 26,450,750 in
April this year and 24,609,908 in May 1933.
Cotton growing states consumed 416,911 bales in
May, compared with 406,678 bales used in April and
513,954 bales in May 1933. Last month’s consumption
of cotton in the cotton growing states amounted to 80.2
per cent of National consumption, a higher percentage
than 79.3 per cent in April this year but less than 82.8
per cent in May 1933. Of the 416,911 bales of cotton
consumed in the cotton growing states in May, Fifth
district mills used 233,324 bales, or 56 per cent, com
pared with 57 per cent of Southern consumption at
tained in the district in May last year.
No official reports on the condition of the cotton crop
are issued until very late in the season, but unofficial
information indicates that cotton in the Fifth reserve
district has suffered from too much rain. During near
ly the entire month of May and well into June rains
fell so frequently in the lower half of the district that
farmers could not work their fields, and grass almost
choked out the cotton in some sections. Wet, moderate
weather is also favorable for weevil development, but it
is too early to estimate weevil damage. If the farmers
can clean the cotton fields and weather during the grow
ing season is clear and hot, weevils can be held in check.
Cotton farmers report difficulty in securing workers to
help clean fields of grass, laborers refusing to work for
customary agricultural wages.
Cotton Statistics
Agricultural Notes
Spot cotton prices fluctuated frequently during the
past month, but through a relatively narrow range. On
May 11 spot cotton prices on ten Southern markets
Maryland weather in May was unfavorable for
wheat, and prospective yield for 1934 declined about
380,000 bushels. The June 1 forecast of 7,201,000
bushels is over two million bushels below the average
045,(XX) tons, compared with 127,823,000 tons mined in
the same period last year, an increase this year of 28.3
per cent. Coal shipped through Hampton Roads ports
during the present calendar year to June 9 totaled 8,663,827 tons, compared with 7,476,929 tons shipped
through the same ports prior to June 9 last year.
The May 26 report of the Bureau of Mines, Depart
ment of Commerce, showed production figures by states
for the month of April. West Virginia with an output
of 6,642,000 net tons fell behind Pennsylvania, which
mined 7,290,000 tons, for the first month since June
1933. West Virginia led all states in production for
the first four months of 1934 with 34,049,000 tons,
Pennsylvania producing 32,914,000 tons. The coal pro
ducing states in the Fifth reserve district, West Vir
ginia, Virginia and Maryland, mined 30.3 per cent of
the National output of bituminous coal in April, and
in the first four months of this year they mined 29.7
per cent.
Textiles
MONTHLY REVIEW
production for the five years 1927-1931, but is nearly a
million bushels above the 1933 yield. The final out
turn of wheat will depend upon weather in June, which
in the past has proven to be the critical period for at
tacks of funguous diseases. The oat crop held its own
during May, and the June 1 fortcast of 280,000 bushels
compares favorably with a five-year average of 256,000
bushels and last year's yield of 221,000 bushels. A
condition of 82 per cent for hay this year is better than
74 per cent a year ago, weather conditions having been
nearly ideal for both hay and pastures. The apple crop
is much inferior to the 1933 crop, a June 1 condition of
36 per cent comparing with last year's condition of 62
per cent. The peach crop is practically a failure, the
reported condition on June J being only 15 per cent
compared with the five-year average of 63 per cent and
last year's condition of 54 per cent. Only about 99,000
bushels are expected this year, against 400,000 bushels
last year and a five-year average yield of 510,000
bushels.
Virginia crop prospects on June 1 were more un
certain than usual because of the great variation in con
ditions in different parts of the State. In Eastern coun
ties planting and growth of crops were retarded by ex
cessive rains; in Central counties crop prospects are
generally very favorable; in Western counties, especial
ly in the Southwest, extremely dry weather retarded
planting and growth. At this early date no definite
prediction concerning the principal crops such as corn,
cotton, tobacco and peanuts can be made, but the out
look for grains indicates an average or better yield this
season. Fruit prospects are poorer than usual due to
winter killing and frost damage in April. Prospects
for early potatoes, except in poorly drained sections,
are very good. In Central and Southern districts sev
eral rains gave farmers excellent seasons for trans
planting tobacco plants, and by the end of the month
a large part of the flue-cured tobacco had been set in
the fields. Wheat prospects showed little change dur
ing May. The total production for 1934 is estimated
to be 7,975,000 bushels, compared with 7,425,000
bushels last year and 9,582,000 bushels the average for
1927-1931. The outlook for rye and barley did not
change during May, and about average yields are indi
cated. Spring sown oats were injured by dry weather
in the Southwestern part of the State, which produces
a large percentage of this crop, and the yield is expected
to be below average. Hay prospects are quite irregu
lar, ranging from good in Eastern and Central counties
to very poor in the extreme Southwest. Hay crops can
still make rapid improvement if weather conditions are
favorable during June. The condition of all hay on
June 1 was reported at 70 per cent of normal, com
pared with 84 per cent last year, and a ten-year average
of 76 per cent. Pastures improved during May in all
sections of the State except in the Western and South
western districts where dry weather retarded the
growth. Apple prospects throughout Virginia are not
as good as had been expected earlier in the season, and
on June 1 conditions indicated only 32 per cent of a
full crop, compared with 62 per cent reported on June
1 last year and 54 per cent the average for the ten years
5
1922-1931. Unfavorable weather during April, espe
cially freezes on April 26 and 28, caused considerable
damage, particularly in poorly located farm orchards.
The quality of the fruit this season is excellent, and in
marked contrast to last year when aphis and scab
caused heavy damage. The season is not sufficiently
advanced to make a definite forecast of production, but
the quality of this year's commercial crop is so much
better than last year's that it is possible the 1934 yield
may equal last year's light yield of 1,800,000 barrels.
The peach crop throughout the State was seriously in
jured by sub-zero temperatures during February and
many trees failed to bloom. There are practically no
peaches except in the best located commercial orchards
and in a few farm orchards in the Southern and East
ern counties. The total production is estimated at
360,000 bushels, compared with 990,000 bushels last
year and average production for five years of 840,000
bushels.
West Virginia crops suffered from drought condi
tions last month. Thunder showers brought relief over
spotted areas, but some sections were left practically
untouched and in these sections hay crops are very poor
and pastures are turning brown. The drought hit the
western part of the State much harder than the Eastern
Panhandle. As late as the third week in May frosts
occurred in portions of the State, damaging fruit, gar
dens, and other vegetation. Corn planting was later
than usual this year and was not quite finished by June
1. The soil has been too dry for normal germination
of seed corn, and most of the com acreage planted
earlier in the season is showing plants only three or four
inches high. The June 1 condition of winter wheat
indicates a production of 1,675,000 bushels, compared
with 1,798,000 bushels harvested last year and a fiveyear average of 1,679,000 bushels. The drought had
a tendency to produce smaller heads and shorter straw
than a year ago. The condition of the oats crop was
only 59 per cent of normal on June 1, compared with
82 per cent a year ago and 83 per cent the ten-year
average. Some oats were harvested at the end of May
and the heads were not well filled, with the straw very
short. This condition was quite general in the western
portion of the State. Hay crops will be much smaller
this year than in 1933. The June 1 condition of all
tame hay was 54 per cent of normal, which is 24 points
less than the condition on June 1, 1933. The condition
of the West Virginia apple crop on June 1 was only
29 per cent of normal compared with 62 per cent in
1933. In the Eastern Panhandle section where the
largest crops of commercial apples are produced, crop
prospects are somewhat better but will probably not
measure up to those of 1933. Late frosts and the ab
sence of normal rainfall decreased the already poor
peach prospects so that on June 1 the growers reported
a condition of 8 per cent of normal, compared with 40
per cent in 1933 and 48 per cent the ten-year average.
From this indication a peach crop of 77,000 bushels
compares with the 1933 production of 396,000 bushels.
The Carolinas had favorable weather for farm work
until May, but during that month and into June there
was excessive rainfall, making it impossible to keep
6
MONTHLY REVIEW
grass out of the fields and to do late planting. On the
whole, however, crop prospects are about average in
the two states. Wheat production in North Carolina
this year is forecast at 4,260,000 bushels, a higher figure
than 3,714,000 bushels harvested in 1933 and a fiveyear average of 3,661,000 bushels. South Carolina
with a forecast of 850,000 bushels this year exceeds
592.000 bushels last year and 546,000 bushels the fiveyear average. The condition of oats on June 1 was
64 per cent in North Carolina and 67 per cent in South
Carolina, the former a lower figure and the latter a
higher figure than the conditions a year ago, but both
materially lower than the five-year averages. A pros
pective crop of 472,000 bushels in North Carolina and
a yield of 60,000 bushels in South Carolina both exceed
last year’s yields. Hay condition on June 1 was lower
in both states than on June 1, 1933, and pastures were
also poorer this year. Prospects for apples in North
Carolina are only 45 per cent of normal, compared with
64 per cent last year, but South Carolina's June 1 con
dition of 56 per cent is the same as the condition on
June 1 last year. Contrary to conditions in the upper
half of the district, the Carolinas have good prospects
for peaches, a crop of 2,278,000 bushels for North
Carolina exceeding the five-year average yield of 2,024.000 bushels and South Carolina’s crop of 1,610,000
bushels also bettering the five-year average production
of 1,142,000 bushels. North Carolina early potatoes
are nearly up to the five-year average condition, and the
South Carolina crop is better than the average.
Construction
Building permits issued in 31 leading Fifth district
cities in May 1934 numbered 2,223, compared with
2,302 permits issued in May 1933, a decrease of 3.4
per cent. On the other hand, estimated valuation fig
ures for all classes of permits issued last month totaled
$2,606,967, compared with $1,902,161 valuation for
permits issued in May 1933, an increase this year of
37.1 per cent. Sixteen of the thirty-one cities showed
higher valuation figures for May 1934 than for May
1933, but many of these increases were due to very
BUILDING PERMITS ISSUED IN MAY 1934 AND 1933
CITIES
Permits issued
1934
1933
Total Valuation
1934
1933
837
9
11
8
15
24
21
91
7
27
106
31
8
56
52
22
62
27
22
45
23
6
6
4
57
22
22
36
16
34
516
884 $1,003,800 $ 573,120
5,642
13,893
18
31,505
4,962
20
2,220
8,425
14
10,825
13,400
16
13,453
12,955
12
93,225
25,125
47
66,133
85,835
115
18,125
1,725
3
17,711
32,850
27
149,237
83,186
82
10,556
25,559
38
4,850
8,435
9
8,317
28,301
71
19,856
2,925
12
10,395
7,410
10
62,761
18,585
36
42,383
35,135
37
45,945
58,580
31
27,281
11,755
27
15,075
0
0
8,345
25,910
16
3,760
10,350
9
6,975
12,475
9
24,022
25,990
60
11,250
9,445
43
35,970
10,521
31
26,500
9,615
18
11,540
19,120
10
15,815
9,305
28
871,595
649,170
569
District Totals ___ 2,223
2,302 $2,606,967 $1,902,161
Baltimore, Md. -----Cumberland, Md.........
Frederick, Md........—
Hagerstown, M d.---Salisbury, Md............
Danville, Va..............
Lynchburg, ,Va......... ..
Norfolk, iVa.......... —
Petersburg, Va......... ~
Portsmouth, Va.........
Richmond, Va............
Roanoke, Va............ ..
Bluefield, W. Va. ..
Charleston, W. Va.....
Clarksburg, W. Va™
Huntington, W. Va.....
Asheville, N. C.-----Charlotte, N. C-------Durham, N. C-------Greensboro, N. C.---High Point, N. C.—
Raleigh, N. C.-------Rocky Mount, N. C...
Salisbury, N. C.-----Winston-Salem, N. C.
Charleston, S. C ---Columbia, S. C.------Greenville, S. C____
Rock Hill, S. C.........
Spartanburg, S. C---Washington, D. G....
low 1933 figures rather than to high figures this year.
Contracts awarded for construction work in the Fifth
reserve district in May this year totaled $14,324,525,
including both urban and rural construction, compared
with $5,409,292 in contracts awarded in May 1933,
according to figures collected by the F. W. Dodge Cor
poration. Of the May 1934 contracts, $2,945,860 was
for residential structures, approximately 21 per cent
of all contracts, compared with $2,379,177 for resi
dential work in May last year, or 44 per cent of all
contract awards in that month.
MONTHLY REVIEW
Retail Trade, 31 Department Stores
Richmond Baltimore Washington Other Cities District
May 1934 sales, compared with sales in May 1933:
+13.9
+19.7
+22.1
+21.8
+20.1
Jan.-May 1934 sales, compared with sales in Jan.-May 1933:
+23.4
+18.1
+18.1
+29.0
+19.7
May 31, 1934, stocks, compared with stocks on May 31, 1933:
+36.1
+27.8
+18.5
+11.9
+23.0
May 31, 1934, stocks, compared with stocks on April 30, 1934:
+ 4.0
— .1
— .1
— 1.5
+ 2
Number of times stock was turned in May 1934:
.352
.325
.368
.309
.343
Number of times stock was turned since January 1, 1934:
1.603
1.28
1.532
1.391
1.468
Percentage of May 1, 1934, receivables collected in May:
31.2
29.3
28.7
29.1
29.2
Department store sales in the Fifth Federal reserve
district in May 1934 averaged 20.1 per cent more in
dollar volume than sales in May 1933, the best record
made for any month since August last year. March
1934 showed a higher percentage increase in compari
son with March 1933 sales, but that comparison was
influenced by the change in the date of Easter. Wash
ington made the best record in the Fifth district last
month with an increase of 22.1 per cent. Cumulative
sales in the reporting stores in the first five months of
this year averaged 19.7 per cent above sales in the cor
responding period of 1933, the “Other Cities” stores
leading with an increase of 29.0 per cent.
Stocks on the shelves of the thirty-one stores on May
31, 1934, totaled 23.0 per cent more, at retail selling
value, than stocks on May 31, 1933, and also showed
a very small increase of 2/10ths of 1 per cent over
stocks on April 30,1934, the latter increase due entirely
to Richmond. Stocks were turned an average of .343
7
times during the month of May, a lower average rate
than .355 times for May last year, but since January 1
stocks have been turned 1.468 times, a slightly higher
figure than 1.466 times for the first five months of
1933.
Collections in 29 of the 31 reporting stores averaged
29.2 per cent of receivables outstanding on May 1, a
higher percentage of receivables collected during the
month than 24.6 per cent in May 1933. Collections
were better in all reporting cities last month than in
the same month last year.
W holesale Trade, 57 Firms
20
7
Groceries Dry Goods
6
Shoes
13
Hardware
11
Drugs
May 1934 sales, compared with sales in May 1933:
+24.0
+ 62
— 22
+20.0
+18.3
May 1934 sales, compared with sales in April 1934:
+19.1
+ 1.8
— 3.4
— 3.1
+ 2.3
Jan.-May 1934 sales, compared with sales in Jan.-May 1933:
+26.3
+36.9
+30.2
+5 22
+24.4
May 31, 1934, stocks, compared with May 31, 1933, stocks:
+12.9(8*) +127.7(3*) +20.9(4*) +16.6(7*)
May 31, 1934, stocks, compared with April 30, 1934, stocks:
_ 5.9(8*) — 4.5(3*) + 3.0(4*) — 5.1(7*)
Percentage of May 1, 1934, receivables collected in May:
79.9(11*) 39.9(4*)
58.7(6*)
42.1(11*) 65.3(7*)
* Number of reporting firmsi
The accompanying table shows in percentage form
how sales in five wholesale lines in May 1934 and in the
first five months of this year compared with sales in
May 1933 and in the first five months of last year. It
also shows changes in stocks on hand, and finally gives
the percentages of collections during May to total ac
counts receivable as of May 1, 1934.
(Compiled June 20, 1934)
8
MONTHLY REVIEW
BUSINESS CONDITIONS IN THE UNITED STATES
(Compiled by the Federal Reserve Board)
Industrial production increased slightly in May,
while factory employment and payrolls showed little
change. The general level of wholesale prices, after
remaining practically unchanged since the middle of
February, advanced sharply in the middle of June, re
flecting chiefly increases in the prices of livestock and
livestock products.
Production and Employment
Industrial production, as measured by the Board’s
seasonally adjusted index, advanced from 86 per cent
of the 1923-1925 average in April to 87 per cent in
May, as compared with a recent low level of 72 last
November. Activity at steel mills increased further
from 54 per cent of capacity in April to 58 per cent
in May, while output of automobiles showed a decline.
Lumber production continued at about one-third the
1923-1925 level. In the textile industries output de
clined somewhat, partly as a consequence of seasonal
developments. At mines coal production showed little
change in volume, while output of petroleum continued
to increase.
In the first three weeks of June activity at steel
mills continued at about the May level, although a de
cline is usual at this season. Maintenance of activity
reflected in part, according to trade reports, consider
able stocking of steel. Output of automobiles declined
somewhat, as is usual at this season.
Employment in factories, which usually declines
slightly between the middle of April and the middle
of May, showed little change, while employment on
the railroads, in agriculture and in the construction
industry increased, as is usual at this season. Increased
employment was shown at manufacturing establish
ments producing durable goods, such as iron and steel
and nonferrous metals, while employment declined at
establishments producing non-durable manufactures,
such as textiles and their products.
Value of construction contracts awarded, as reported
by the F. W. Dodge Corporation, has shown a decline
in the spring months, reflecting a reduction in the vol
ume of contracts for public projects. The volume of
construction work actually under way has increased as
work has progressed on contracts previously awarded.
Department of Agriculture estimates based on June
1 conditions indicated unusually small crops of winter
wheat and rye and exceptionally poor conditions for
spring wheat, oats, hay and pastures, largely as a con
sequence of a prolonged drought. The winter wheat
crop was estimated at 400 million bushels as compared
with a five-year average of 630 million bushels and an
exceptionally small crop of 350 million bushels last
season. Rains in early June somewhat improved pros
pects for forage and grain crops not already matured.
Distribution
Total freight traffic increased in May by more than
the usual seasonal amount, reflecting in considerable
part a larger volume of shipments of miscellaneous
products. At department stores the value of sales
showed an increase as is usual at this season.
Commodity Prices
During May and the first three weeks of June whole
sale prices of individual farm products fluctuated wide
ly, while prices of most other commodities showed lit
tle change. Wheat, after advancing rapidly during
May, declined considerably in the first three weeks of
June. Cotton continued to advance in the early part
of June. In the middle of the month hog prices in
creased sharply from recent low levels. Automobile
prices were reduced in the early part of June, and cop
per prices advanced.
Bank Credit
During May and the first half of June there was
little change in the volume of reserve bank credit out
standing. As a consequence of expenditure by the
Treasury of cash and deposits with the Federal Re
serve banks and a growth in the country’s monetary
gold stock, member bank reserve balances advanced
further to a level $1,800,000,000 in excess of legal re
quirements. In the week ending June 20, however,
excess reserves dropped to $1,675,000,000, reflecting
an increase in Treasury deposits at the Reserve banks
in connection with June 15 tax receipts and sales of
Government securities.
Total loans and investments of reporting member
banks increased by $80,000,000 between May 16 and
June 13, reflecting a growth in holdings of investments
other than United States Government securities and in
open-market loans to brokers and dealers, while loans
to customers declined. Net demand deposits increased
by about $400,000,000 during the period.
Money rates in the open market continued at low
levels. The rate on prime commercial paper declined
to 24-1 per cent in June, the lowest figure on record.
@FedFRASER