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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
F
EBRUARY witnessed no material change in the
trend of business in the Fifth Federal reserve dis
trict in comparison with other recent months. The
month is usually a relatively poor period for trade, and
this year was no exception. Seasonal developments were
noted in most cases, and there were a few signs of better
adjustment to existing conditions. At the reserve bank,
rediscounts for member banks remained at about the
same level between February 15 and March 15, and on
the latter date were practically the same as on March
15, 1930. The circulation of Federal reserve notes de
clined seasonally last month, but the volume of notes
outstanding continued larger than a year ago. Out
standing loans by reporting member banks declined
moderately between the middle of February and the
middle of March, and demand deposits dropped by
about the same amount, but time deposits in member
banks and savings deposits in Baltimore savings banks
rose. Debits to individual accounts for four weeks
ended March 11, 1931, totaled 3.3 per cent less than
debits in the preceding four weeks, ended February
11, 1931, and 11.8 per cent less than in the four weeks
ended March 12 last year. Business failures in the
Fifth district in February this year showed a seasonal
decline in comparison with January, but were more nu
merous than for any other February since 1922. How
ever, liabilities involved in last month’s failures were
lower than those for all other Februarys, except 1929
and 1926, since 1920. Labor conditions showed no
material change during February. Bituminous coal
production in February was less than in either January
this year or February 1930, the latter comparison re
flecting decreased demand this year from industrial con
sumers. The situation in textiles improved somewhat,
sales of cotton goods having been reported as exceeding
production, and the danger of overproduction has been
greatly lessened by the abandonment of night work in
most Southern mills. Cotton consumption in the Fifth
district in February was less than consumption in Janu
ary this year or February 1930 in total bales, but on
a daily basis the February record was better than that
of January. Retail trade in department stores last
month averaged about 5 per cent less than the volume
of business done in February 1930, but a considerable
MARCH 31, 1931
part of the decrease was due to price declines during
the year. Wholesale trade also compared unfavorably
with February 1930 trade in most lines, but again price
changes played an important part in the decline. Build
ing permits issued in February in most of the leading
cities of the district were fewer in number and lower
in estimated valuation than in the corresponding month
last year, but a large volume of work provided for in
Washington brought the total valuation figure for Feb
ruary 1931 in the thirty-two reporting cities consider
ably above the February 1930 total. Tobacco markets
closed in February and March after selling a total crop
above that of last year, but this year’s prices were very
low and the quality of tobacco sold also compared un
favorably with the average quality in most years. W in
ter crops in the Fifth district are probably not up to
last year’s average condition, due to a lack of sufficient
moisture in the soil this season, and farmers are on
the whole in a much weaker financial position to under
take 1931 farming operations. Poor yields and low
prices for most agricultural products last fall resulted
in making 1930 one of the worst years on record for
agricultural interests in the Fifth district.
Reserve Bank Statement
ITEMS
000 omitted
Mar. 15, Feb. 15, Mar. 15,
1931
1931
1930
Rediscounts h e ld ----------------- $17,611
1,462
Open market pap er_________
17,122
Government Securities ______
Total earning assets----------- 36,195
Circulation of Fed. Res. notes.... 81,757
Members* reserve deposits------ 61,141
Cash reserves -------------------- 114,267
79.75
Reserve ratio ______________
$17,743
2,418
17,261
37,422
84,343
59,200
113,072
77.22
$17,289
12,918
17,322
47,529
77,297
65,932
105,262
72.96
Rediscounts for member banks held by the Federal
Reserve Bank of Richmond declined by $132,000 be
tween February 15 and March 15, both this year, a
change of no importance in amount but interesting be
cause at this season of the year rediscounts usually
increase somewhat as a result of increased needs for
credit to finance early preparations for crop planting.
The reserve bank reduced it’s holdings of open market
2
MONTHLY REVIEW
paper by $956,000 and it’s holdings of Government
securities by $139,000 last month. The reductions in
rediscounts, open market paper holdings, and Govern
ment securities totaled $1,227,000, by which amount
the Bank’s total earning assets declined between the
middle of February and the middle of March. The
month under review witnessed a seasonal reduction of
$2,586,000 in the circulation of Federal reserve notes,
a somewhat smaller reduction than occurs in most
years at the corresponding time. Member banks in
creased their reserve deposits at the reserve bank by
$1,941,000 last month, an unseasonal development. The
several changes enumerated, with others of less im
portance, raised the cash reserves of the Federal Re
serve Bank of Richmond by $1,195,000 between Feb
ruary 15 and March 15, and brought the ratio of
reserves to note and deposit liabilities combined up
2.53 points.
The figures in the statement for March 15, 1931,
in comparison with the March 15, 1930, figures, show
an increase of $322,000 in rediscounts this year, but
the Bank’s holding of open market paper on the 1931
date was $11,456,000 less than a year ago and Govern
ment securities owned dropped $200,000 during the
year. These changes resulted in an aggregate decline
of $11,334,000 in total earning assets as of the 1931
date. Member bank reserve deposits declined by
$4,791,000 between March 15, 1930, and March 15,
1931, lower deposits in member banks requiring lower
reserves. On the other hand, the circulation of Fed
eral reserve notes was $4,460,000 higher in amount this
year than a year ago, and the total cash reserves rose
by $9,005,000 during the year. The ratio of reserves
to note and deposit liabilities combined rose 6.79 points
between the middle of March last year and this.
Member Bank Statement
ITEMS
000 omitted
Mar. 11, Feb. 11, Mar. 12,
1931
1931
1930
Loans on stocks and bonds (in
cluding Governments) ___ .......
All other loans -----------------Total Loans and discounts....
Investments in stocks & bonds..
Reserve bal. with F. R. Bank....
Cash in vaults--------------------Demand deposits----------------Time deposits______________
Borrowed from F. R. Bank----
$164,935 $166,604 $195,870
269,015 270,129 300,992
433,950 436,733 496,862
181,735 183,600 151,534
38,596
40,319
39,870
15,732
16,689
11,168
329,004 333,269 353,101
250,023 246,342 240,171
5.704
5.226
5,763
The figures in the above table show the principal
items of condition as of three dates for fifty-three
member banks in thirteen of the leading cities of the
Fifth Federal reserve district. It should be under
stood that the figures shown reflect the condition of
the reporting banks on the report dates only, and are
not necessarly the highest or lowest figures that oc
curred during the periods under review.
During the month between February 11 and March
11, this year, the fifty-three reporting banks reduced
their total loans and discounts by $2,783,000, loans on
stocks and bonds declining $1,669,000 and all other
loans decreasing $1,114,000. Investments in bonds
and securities were reduced $1,865,000 during the
month, and the reporting banks also decreased their
reserve balances at the reserve bank by $1,723,000.
Demand deposits declined $4,265,000 between the mid
dle of February and the middle of March, but time
deposits rose by $3,681,000 during the same period.
The fifty-three banks increased their borrowing at the
reserve bank by $537,000 during the month.
The figures reported for March 11, 1931, show ma
terial changes in comparison with the figures reported
for March 12, 1930. Total loans and discounts de
clined $62,912,000 during the year, the decrease being
about equally divided between loans on stocks and
bonds and all other loans. With part of the funds
released by the reduction in loans the reporting banks
increased their investments in bonds and stocks by
$30,201,000 during the past year. Deposits declined a
total of $14,245,TOO between March 12 last year and
March 11 this year, demand deposits decreasing $24,097,000 while time deposits rose $9,852,000. Lower
aggregate deposits enabled the reporting institutions to
reduce their reserve balances by $1,274,000 this year.
There was practically no change in the borrowing by
the fifty-three reporting banks at the reserve bank
during the year under review, the amount borrowed
on March 11, 1931, being only $59,000 more than the
amount borrowed on March 12, 1930.
Debits to Individual Accounts
CITIES
Asheville, N. C.---Baltimore, Md.........
Charleston, S. C.---Charleston, W. Va...
Charlotte, N. C----Columbia, S. C.---Cumberland, Md. ...
Danville, Va............
Durham, N. C.-------Greensboro, N. C.---Greenville, S. C-----Hagerstown, Md.---Huntington, W. Va.....
Lynchburg, Va.------Newport News, Va.....
Norfolk, Va________
Portsmouth, Va_____
Raleigh, N. C.______
Richmond, Va__
Roanoke, Va__
Spartanburg, S. C___
Washington, D. C.___
Wilmington, N. C.___
Winston-Salem, N. C...
Totals----------
000 omitted
Total debits, four weeks ended
Mar. 11,
Feb. 11,
Mar. 12,
1931
1931
1930
10,141
348,858
17,857
33,620
37,197
21,258
6,961
6,335
20,634
16,174
15,536
7,516
14,210
15,205
10,247
43,611
4,168
16,712
105,465
23,347
8,475
214,142
10,285
29,514
$1,037,468
$
11,109
355,670
16,300
38,892
36,636
19,459
6,963
6,151
23,355
16,195
15,028
7,398
16,814
16,311
10,429
45,172
4,063
20,158
122,768
26,711
7,927
209,932
10,738
28,575
$1,072,754
$
22,102
384,451
20,715
37,345
45,876
20,709
8,735
7,630
25,622
20,364
20,381
8,929
20,172
21,420
10,256
56,077
4,869
16,383
118,328
30,558
12,452
217,768
13,196
32,253
$1,176,591
Aggregate payments by check drawn on clearing
house banks in twenty-four cities of the Fifth Federal
reserve district are shown in the accompanying table
for three equal periods of four weeks, thus affording
opportunity for comparison of the latest figures, for
the four weeks ended March 11, 1931, with those for
MONTHLY REVIEW
the preceding like period this year and the correspond
ing period a year ago.
Debits during the four weeks ended March 11, 1931,
were $35,286,000, or 3.3 per cent, less than aggregate
debits during the four preceding weeks, ended February
11 this year. Fourteen cities reported lower figures for
the later four weeks, while ten cities reported higher
figures. Among the larger centers, Baltimore, Charles
ton, W. Va., Huntington, Norfolk and Richmond re
ported smaller figures, while Charlotte, Washington
and Winston-Salem reported higher figures. In com
parison with debits reported for four weeks ended
March 12, 1930, those for the corresponding period
this year show a decline of $139,123,000, or 11.8 per
cent. Only two cities reported higher figures for the
1931 period, these being Columbia, S. C., and Raleigh,
N. C., in both of which State government transactions
this year brought the figures slightly above the 1930
figures. Newport News, Va., reported the smallest de
crease among the other twenty-two, only 9/100ths of 1
per cent. Lower price levels prevailing this year un
doubtedly account for a considerable part of the de
cline in 1931 debits in comparison with those of 1930.
Savings Deposits
Aggregate deposits in twelve mutual savings banks in
Baltimore at the end of February 1931 totaled $202,179,485, compared with $200,969,642 on January 31,
1931, and $191,063,540 on February 28, 1930. Time
deposits in fifty-three regularly reporting member
banks in the Fifth district also rose last month, total
ing $250,023,000 on March 11 in comparison with
$246,342,000 on February 11 this year and $240,171,000 on March 12, 1930.
Commercial Failures
Business failures in the Fifth reserve district in
February numbered 160, with liabilities amounting to
$2,381,789. These figures show a seasonal decrease
in comparison with 203 failures and liabilities totaling
$4,339,019 reported for January this year, and com
pare with 145 failures and liabilities amounting to $2,417,925 in February 1930. Although the number of
insolvencies in the Fifth district in February was the
largest for any February since 1922, liabilities last
month were lower than in February in any other year
except 1929 and 1926 since 1920. Failures in the dis
trict increased in February 1931 by 10.3 per cent over
failures in February 1930, but the National increase
was 13.3 per cent. In aggregate liabilities involved,
February this year showed a decline of 1.5 per cent
for the Fifth district in comparison with liabilities re
ported in February last year, but the National total
showed an increase of 16.1 per cent.
Employment
There were no changes of importance in employ
ment conditions in the Fifth district in February and
early March, but there does not appear to have been
any increase in the number of idle workers, which is
perhaps a slightly favorable sign. Unemployment in
creased steadily in most of the district through the
fall and early winter months, but relief measures which
3
began to operate near the end of 1930 checked the
growth in the list of people unable to find work, and
perhaps reduced the number of idle persons to some
extent. With the approach of milder weather, and
some signs here and there of greater industrial activity,
prospects for employment during the next few months
appear better than in other recent months.
Coal Production
Bituminous coal production in the United States
totaled approximately 31,408,000 net tons in February
1931, a smaller output than 38,542,000 tons mined in
January this year or 39,555,000 tons in February 1930.
Total production during the present coal year to March
7 (approximately 287 working days) amounts to 414,158.000 net tons, a smaller figure than for any other
of the past five years.
In its March 7 report, the Bureau of Mines, Depart
ment of Commerce, gave production figures by states
for January 1931. West Virginia mined 9,262,000
tons during that month, ranking second to 9,735,000
tons mined by Pennsylvania, and comparing with 12,163.000 tons produced in West Virginia in February
1930.
Tidewater shipments of coal through Hampton
Roads in February totaled 1,626,980 net tons, and
shipments this year since January 1 totaled 3,528,031
tons. Total shipments through all Fifth district ports
this calendar year to February 28 totaled 4,004,640 net
tons, approximately 65 per cent of 6,110,251 tons
shipped through all ports.
Textiles
Textile mills in the Fifth reserve district increased
operating time slightly during February, cotton con
sumption for the month on a daily basis exceeding
that of January. Fifth district mills consumed 197,333
bales of cotton in February 1931, of which North
Carolina mills used 103,144 bales, South Carolina mills
84,956 bales, and Virginia mills 9,233 bales. February
consumption figures for the district compare with
207,320 bales used in January this year and 216,798
bales used in February 1930. Consumption in the
district was 45.52 per cent of National consumption in
February 1931, a slightly lower figure than 45.65 per
cent in January this year, but higher than 43.85 per
cent in February 1930. For the second successive
month, sales of cotton textiles appear to have exceeded
production during February. Since the first of this
year a large majority of textile mills, including some
thing like /5 to 80 per cent of Fifth district mills, have
abandoned night work in an effort to stabilize opera
tions without overproduction. The movement began
as an elimination of night work for women and minors,
but was broadened to include all workers in the textile
industry.
Cotton Statistics
Spot cotton prices on ten leading Southern markets
continued to advance during the last half of February,
but turned downward again in March and at the mid
dle of the month averaged lower than the price a
month earlier. In our Review last month we quoted
4
MONTHLY REVIEW
the average price for upland short staple cotton, mid
dling basis, as 10.14 cents per pound on February 13.
On February 20 the average price was 10.20 cents,
and on February 27 reached 10.40 cents. The first
week of March witnessed a slight decline to 10.35
cents on March 6, and between March 6 and 13 the
price dropped to 9.97 cents. On March 14, 1930, the
average price on the same ten markets was 14.45 cents
per pound.
Carolina grew larger crops of cotton in 1930 than in
1929, but Virginia grew a smaller crop, due to the
severe drought last summer. The district total pro
duction of 1,817,119 bales in 1930 showed an increase
of 192,329 bales over the 1929 yield of 1,624,790 bales,
but the price was so much lower last fall than in 1929
that the growers did not realize nearly as much for
the larger crop as for the one of the previous year,
which in turn had witnessed relatively low prices.
Cotton consumption in the United States in Febru
ary 1931 totaled 433,510 bales, compared with 454,188
bales used in January this year and 494,396 bales in
February 1930. Total consumption for the seven
months of the present cotton season—August 1 to Feb
ruary 28—amounted to 2,899,942 bales, compared with
3,808,741 bales consumed in the corresponding period
ended February 28, 1930. Manufacturing establish
ments held 1,547,759 bales on February 28, compared
with 1,613,475 bales held on January 31 this year and
1,806,040 bales on February 28, 1930. Public ware
houses and compresses held 7,314,450 bales in storage
at the end of February this year, compared with 7,939,454 bales so held a month earlier and 4,858,243
bales on February 28 last year. February exports
totaled 432,996 bales, compared with 532,821 bales
sent abroad in January this year and 402,074 bales ex
ported in February last year. Exports during the
seven months of this cotton year totaled 4,904,323
bales, compared with 5,293,086 bales shipped over seas
during the corresponding seven months ended Febru
ary 28, 1930. Spindles active in February numbered
25,763,408, compared with 25,611,458 in January this
year and 28,920,162 in February 1930.
Tobacco Marketing
Consumption of cotton in the cotton growing states
numbered 341,216 bales in February 1931, compared
with 359,879 bales used in January and 381,365 bales
in February 1930. Last month's consumption in the
cotton growing states amounted to 78.71 per cent of
National consumption, compared with 77.14 per cent
of National consumption used in the cotton growing
states in February last year. Of the 341,216 bales of
cotton consumed in cotton growing states in February,
the Fifth district mills used 197,333 bales, or 57.83
per cent, compared with 56.74 per cent of Southern
consumption attained in the district in February last
year.
Virginia tobacco markets practically wound up the
season's sales in February, only a few markets re
maining open in March. Sales in February 1931
totaled 18,951,138 pounds of producers' tobacco, for
an average price of $5.15 per hundred pounds, com
pared with 13,685,725 pounds sold for an average of
$13.72 per hundred pounds in February 1930. Total
sales for the 1930-1931 season to February 28 amount
ed to 129,193,398 pounds, and the average price for
the season was $8.71 per hundred, while in 1929-1930
sales prior to March totaled 126,334,955 pounds and
the average season price was $17.55 per hundred
pounds. The increased sales on Virginia markets this
season in comparison with sales in the 1929-1930 sea
son were due to an increase in the amount of North
Carolina grown tobacco sold on Virginia auction floors.
Season sales of flue-cured tobacco in Virginia totaled
95,111,680 pounds, which sold for an average of $8.01
per hundred; season sales of fire-cured tobacco totaled
22,213,797 pounds and the average price was $8.51 per
hundred; burley tobacco sold this season totaled 8,949,672 pounds and the price was $17.05 per hundred;
and sun-cured sales to February 28 totaled 2,918,249
pounds, for an average price of $7.87 per hundred.
Sales of flue-cured and burley tobacco exceeded sales
of the previous year, but fire-cured and sun-cured sales
were less this year. Average prices for all types were
about half the averages for the 1929-1930 season, the
1930-1931 burley prices declining less than the price
for other types. Among the individual markets, Dan
ville led in season sales with 43,202,217 pounds, South
Boston ranking second with 20,197,325 pounds. Lynch
burg led the fire-cured markets with sales totaling
6,161,721 pounds, Blackstone ranking second with 5,343,461 pounds. All burley tobacco was sold at Abing
don and all sun-cured tobacco at Richmond.
The final ginning report on the 1930 cotton crop
was issued by the Census Bureau on March 20, and
showed the year's production to be 13,753,883 running
bales, the equivalent of 13,929,941 bales of 500 pounds
gross weight. The final ginning figure was 2.2 per
cent below the final crop estimate of the Department
of Agriculture made in December. In the Fifth dis
trict, all of the cotton growing states showed lower
ginning figures than the estimates of probable produc
tion. North Carolina ginned 774,537 equivalent 500
pound bales, compared with a forecast of 795,000
bales for the year, South Carolina ginnings totaled
1,000,629 bales, compared with a forecast of 1,040,000
bales, and Virginia ginnings totaled 41,953 bales
against a forecast of 42,000 bales. North and South
North Carolina auction markets sold 19,614,029
pounds of tobacco for growers during February this
year, for an average of $6.62 per hundred pounds.
Season sales total approximately 561,000,000 pounds,
and the average price was $12.90, compared with 481,456,651 pounds sold during the 1929-1930 season for
an average of $17.40 per hundred pounds. North
Carolina markets closed during February. Wilson led
in season sales this year with 77,788,672 pounds,
Greenville ranking second with 62,352,988 pounds.
Asheville, a new market this season, sold 2,959,434
pounds of burley tobacco, all other North Carolina
tobacco being flue-cured.
MONTHLY REVIEW
Tobacco Manufacturing
Fifth district tobacco manufacturers made approxi
mately 7,687,684,000 cigarettes in February 1931, com
pared with 6,898,979,000 cigarettes made in February
1930. The district manufactures about 87 per cent of
all cigarettes made in the United States, and also manu
factures smoking tobacco and cigars to a large extent.
The district pays approximately 77 per cent of all
tobacco taxes paid to the Federal government. Total
taxes on all types of tobacco manufactures in Febru
ary amounted to $32,973,987, of which about $25,390,000 was paid by Fifth district states, compared
with a total tax of $32,230,572 paid in February 1930,
of which the Fifth district paid $22,266,432. Cigar
and smoking tobacco production was less in February
this year than in February 1930, but cigarette and snuff
output increased this year.
Agricultural Notes
Little farm work is done in February and early
March. The weather this year has been favorable for
cleaning up fields, patching fences, and other work of
like nature. Very little spring plowing has been done,
the ground in many sections being too dry, and this
lack of moisture, especially the absence of snow, has
retarded growth of winter grain crops. Cold weather
retarded development of pastures, but the cold has
been helpful in retarding premature budding of fruit
trees. At present the outlook for agriculture in 1931
in the Fifth district is very poor, due to inability of
many farmers to finance this year’s activities, to lack
of moisture in the ground to serve as a reserve for
plant growth during the hot months of summer, and
to a very weak price position of cotton and tobacco, the
district’s leading cash crops.
Construction
Building permits issued. A detailed table of building
permits issued in the leading cities of the Fifth reserve
district in February 1931 in comparison with February
1930 appears elsewhere in this Review. On the whole
the record for February this year compares unfavor
ably with the February 1930 record, twenty-six of the
thirty-two reporting cities showing lower valuation
figures for the 1931 month. The total valuation figure
for last month for the thirty-two cities was higher than
last year, but the increase was due entirely to a large
volume of work provided for in Washington. Balti
more reported a moderate amount of work provided
for, Richmond, Norfolk, and the other larger centers
reported relatively small figures. High Point, N. C.,
in proportion to population, ranked next to Washing
ton in February valuation. The six cities which re
ported higher figures for February 1931 than for Feb
ruary 1930 were Frederick and Salisbury, Maryland;
Lynchburg, Virginia; High Point and Salisburg, North
Carolina, and Washington, D. C., the last named city
accounting for $5,159,315, or approximately 56 per
cent, of the total of $9,260,332 reported by the thirtytwo cities.
5
Contracts awarded for construction work in the Fifth
reserve district in February this year totaled $19,665,618, including both urban and rural construction, com
pared with $28,707,070 in contracts awarded in Feb
ruary 1930, according to figures collected by the F. W.
Dodge Corporation. Of the February 1931 contracts,
$8,127,853 was for residential structures, compared
with $7,854,565 for residence work in February last
year.
Retail Trade, 37 Department Stores
Richmond Baltimore Washington Other Cities District
February 1931 sales, compared with sales in February 1930:
—10.0
— 2.9
— 2.4
—15.8
— 5.1
Total sales in two months of 1931, compared with first two
months of 1930:
— 6.6
— 4.7
— .6
—13.4
— 4.4
Feb. 28, 1931 stocks, compared with stocks on Feb. 28, 1930:
—16.5
—11.3
—13.0
—16.6
—13.3
Feb. 28, 1931 stocks, compared with stocks on Jan. 31, 1931:
+10.5
-{- 5.1
-j- 7.2
-{- 4.6
-|- 6.3
Number of times stock was turned in February 1931:
.262
.272
.293
.187
.266
Number of times stock was turned since January 1, 1931:
.535
.547
.581
.368
.530
Percentage of Feb. 1, 1931, receivables collected in February:
31.1
24.0
30.7
26.3
27.1
Department store sales in the Fifth Federal reserve
district in February 1931 averaged 5.1 per cent less
than sales in February 1930, and were probably some
what below seasonal volume in comparison with sales
in January and other recent months. The decline in
comparison with sales last year, however, is at least
partly accounted for by generally lower prices this year.
Thirty-seven stores located in eighteen cities reported
on their February business, and among the individual
cities from which three or more reports were received
Washington made the best record with an average de
cline of only 2.4 per cent. In total sales during the
first two months of 1931, the 37 stores averaged a
decrease of 4.4 per cent in comparison with sales in
the first two months of 1930.
Stocks in the reporting stores increased seasonally
during February, rising by 6.3 per cent over those on
hand at the end of January, but on February 28 this
year averaged 13.3 per cent less than a year ago. Part
of this decline was also due to price changes. The
reporting stores turned their stock an average of .266
times during February, and between January 1 and
February 28 stocks were turned .53 times, both of these
averages exceeding those for the corresponding periods
in 1930.
The percentage of collections in February 1931 to
total accounts receivable on February 1 was higher
than the percentage for February 1930. Richmond
reported the highest collection percentage, while Bal
timore reported the lowest chiefly because of a relativly large volume of instalment accounts included in
the Baltimore figures.
6
MONTHLY REVIEW
W holesale Trade, 65 Firms___________________
24
9
Groceries Dry Goods
6
Shoes
15
Hardware
11
Drugs
February 1931 sales, compared with sales in February 1930:
—20.8
—36.1
—10.2
—28.1
— 4.1
February 1931 sales, compared with sales in January 1931:
— 8.7
— 4.9
+63.5
— 7.6
—14.9
Jan.-Feb. 1931 sales, compared with sales in Jan.-Feb. 1930:
—20.1
—33.6
—19.9
—31.7
— 2.8
Feb. 28, 1931 stocks, compared with Feb. 28, 1930 stocks:
—19.0(8*) —28.2(4*) —17.2(5*) — 7.3(8*)
Feb. 28, 1931 stocks, compared with Jan. 31, 1931 stocks:
— 6.7(8*) — 1.9(4*) + 4.1(5*) + .6(8*)
Percentage of Feb. 1, 1931 receivables collected in February:
53.4(14*)
31.8(6*)
23.3(6*)
27.8(12*) 56.6(8*)
— Decreased percentage.
* Number of reporting firms.
Wholesale trade in the Fifth district has not held up
during the past year as well as retail trade, probably
due in large part to changing methods of merchan
dising. In February this year five lines of trade for
which figures are available sold less than they sold in
February 1930, the decreases in percentage ranging
from 4.1 per cent in drugs to 36.1 per cent in dry
goods. Total sales in the first two months of 1931
show the same marked decline, business in January
having been about on a level with that of February in
comparison with the earlier year. Shoe sales in Feb
ruary showed a seasonal increase over January 1931
sales, but dry goods sales failed to show the usual
February gain.
Stocks of merchandise on the shelves of 25 report
ing firms were lower on February 28, 1931, than on
February 28, 1930, but shoe and hardware stocks in
creased over those on hand at the end of January.
Dry goods failed to show an increase in stocks last
month, contrary to seasonal trend.
Collections in February 1931 were slower in all
lines reported upon than collections in January this
year, and also compared unfavorably with collections
in February last year in groceries, dry goods and hard
ware. Shoe and drug collections were somewhat better
last month than in February 1930.
(Compiled March 21, 1931)
MONTHLY REVIEW
7
BUILDING OPERATIONS FOR THE MONTHS OF FEBRUARY 1931 AND 1930.
£
CITIES
Permits Issued
New
Repairs
1931 1930
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
30
31
32
1931
1930
New Construction
1931
1930
1931
Baltimore, Md-------Cumberland, Md.---Frederick, Md-------Hagerstown, Md.---Salisbury, Md.------Danville, Va.---------Lynchburg, Va------Norfolk, Va..........—
Petersburg, Va...... .
Portsmouth, Va.-----Richmond, Va.------Roanoke, Va.............
Bluefield, W. Va.
Charleston, W. V a....
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..........
Wilmington, N. C.__ _
Winston-Salem, N. C___
Charleston, S. C.____
Columbia, S. C.------Greenville, S. C.____
Rock Hill, S. C.
Spartanburg, S. C.....
Washington, D. C__
283
5
8
13
19
4
22
53
4
12
43
24
5
12
11
5
10
15
7
9
8
9
4
3
5
10
11
9
15
4
2
122
364
6
11
13
19
6
10
66
7
13
48
26
5
28
11
16
11
31
9
16
10
10
9
4
11
31
15
17
10
12
12
66
662 $ 2,402,880 $ 2,484,360
4,450
9
4,171
31,692
8
13,765
31,155
4
34,565
30,375
8
27,700
305
352
17
52,806
21
8,975
61,786
35
157,430
400
8
15,975
20
23,825
34,200
51
70,457
247,313
20
48,331
110,111
5
785
13,575
19,375
53,700
13
26,905
7
5,495
12,000
4
7,000
44
8,680
40,975
36
57,635
221,500
32,550
7
24,000
24,451
26
55,930
6
343,400
27,350
25,825
13
58,960
3,050
1
6,270
1
15,000
12,600
13,000
9
22.500
2,980
59
314,715
30,735
44
181.750
24
32,900
412,250
45,890
27
273.300
12,800
8
120,240
2,040
25
17,750
4,855,325
217
700,900
$ 354,600
825
43,181
350
3,475
2,150
8,300
44,170
700
6,430
0,833
59,951
2,350
1,583
9,375
890
20,355
10,891
3,039
7,766
21,400
9,375
750
0
3,800
14,505
15,865
6,705
7,025
3,210
3,665
303,990
Totals..................
766
923 1,341 1,439 $ 8,288,828 $ 5,744,637
$ 971.504
591
5
15
2
10
7
22
40
2
14
65
17
5
8
7
3
17
34
6
33
5
11
2
0
7
37
25
34
22
8
13
274
fc
1930
Increase or
Decrease
of
Total
Valuation
297,760
2,743
2,545
5,425
1,650
12,014
39,437
16,525
11,665
16,241
85,734
17,109
6,395
19,100
6,525
3,000
14,895
19,924
5,800
14,887
26,700
7,000
600
75
3,400
20,475
16,730
19,185
21,547
940
4,374
156,270
$— 24,640
— 1,639
58,563
— 8,485
4,500
— 9,911
12,694
— 67,999
— 26,540
— 20,186
— 211,757
— 68,938
— 16,835
— 51,842
— 18,560
— 7,110
— 26,835
— 172,898
— 11,311
— 38,600
310,750
— 30,760
— 3,070
2,325
— 9,100
— 317,705
— 151,880
— 391,830
— 241,932
— 105,170
— 16,419
4,302,145
T
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
30
31
32
Alterations
o
$ 876,670 $ 2,639,025
— Denotes decrease.
NOTE—The figures in the above table reflect the amount of work provided for in the corporation limits of the sev
eral cities, but take no account of suburban developments.
MONTHLY REVIEW
8
BUSINESS CONDITIONS IN THE UNITED STATES
(Compiled
by
the Federal Reserve Board)
Distribution.
Output of most of the important industries increased
more than seasonally in February; and although fac
tory employment advanced at a less rapid rate, the vol
ume of wage payments at factories also rose by more
than the usual seasonal amount. The general level of
commodity prices continued to decline.
Daily average freight car loadings showed little
change from January to February, while ordinarily
there is an increase at this season. Sales by department
stores increased slightly.
Production.
W holesale Prices.
Industrial production, as measured by the Board's
index, which is adjusted to allow for seasonal varia
tion, increased by 4 per cent in February from the low
level prevailing in December and January. On the
basis of the average for 1923-1925 as iOO the volume
of production in February was 85, compared with 82
for the two preceding months, and 107 for February
of last year. At steel mills activity increased consid
erably, and the output of automobiles advanced by
somewhat more than the usual seasonal amount. Out
put of shoe factories and textile mills increased sub
stantially, while the output of coal continued to de
cline. During the first half of March activity at steel
mills continued to increase.
Wholesale commodity prices declined further in Feb
ruary, and the Bureau of Labor Statistics index, at
75.5 per cent of the 1926 average, was about 18 per
cent below the level of a year ago. Prices of many
agricultural products decreased considerably, while the
price of cotton advanced further. In the first half
of March there were considerable increases in prices of
silver, livestock, meats, and hides, and declines in the
prices of petroleum and cotton.
Value of building contracts awarded in February
was slightly larger than in January, according to the
F. W. Dodge Corporation. An increase in residential
building was accompanied by a decrease in contracts
for public works and utilities, while awards for fac
tories and commercial buildings continued in small
volume. In the first half of March there was an in
crease in the daily average of contracts awarded, as is
usual at this season.
Factory Employment and Pay Rolls.
Factory employment increased slightly less than usual
in February, while factory pay rolls increased by more
than the seasonal amount from the low level of Janu
ary. In many industries the rate of increase in pay
rolls was about the same as in February of other recent
years, but in the automobile, shoe, woolen goods, and
clothing industries, the rate of increase was larger than
usual.
Bank Credit.
Loans and investments of member banks in leading
cities changed relatively little between the end of Janu
ary and the middle of March. Total loans on securi
ties declined, notwithstanding the growth in brokers’
loans in New York City, and all other loans showed
considerable further liquidation, while the banks’ in
vestments continued to increase.
Volume of reserve bank credit tended downward in
February and showed little change between March 4
and March 18. Funds arising from gold imports in
February were largely absorbed in meeting a seasonal
demand for currency, while in the early part of March
there was an increase in member bank reserve balances.
Money rates in the open market continued at low
levels from the middle of February to the middle of
March. Rates on commercial paper were reduced
from a range of 2}^-2j4 to a prevailing level of 2j4
per cent, while rates on 90-day bankers’ acceptances
remained at 1J4 per cent. Yields on high grade bonds
continued to decline.
@FedFRASER