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MONTHLY REVIEW
CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS

WILLIAM W . HOXTON,

CHAIRMAN AND FEDERAL RESERVE AGENT

FEDERAL RESERVE BANK OF RICHMOND

RICHMOND, VIRGINIA
trade and
FEBRUARYfully Federal industry
in the Fifth
reserve
district was
up to seasonal

March 31, 1935

levels in nearly all lines. Perhaps
the outstanding feature of that
month’s business was the unusually
large volume of retail trade as re­
flected in department store sales.
February sales in thirty-one leading
Fifth district stores not only ex­
ceeded February 1934 sales by near­
ly 13 per cent, but also exceeded
January 1935 sales, an increase
which seldom occurs in the short,
between-seasons month. In bank­
ing, rediscounts at the Federal Re­
serve Bank of Richmond rose slight­
ly between the middle of February and the middle
of March, and the Bank increased its industrial
loans for working capital and its holdings of Gov­
ernment securities. Federal reserve note circula­
tion showed a seasonal decline during the month,
but member bank reserve deposits rose. Reporting
member banks showed practically no change in out­
standing loans, while investments in securities in­
creased and time deposits rose. Debits to individ­
ual accounts in four weeks ended March 13, 1935,
showed a seasonal increase over debits in four
weeks ended February 13 this year, and totaled 12
per cent more than debits in four weeks ended March
14 last year. The commercial failure record of the
Fifth district for February was excellent, and was
better than the National record in both the number
of bankruptcies and liabilities involved. There were
only 39 business insolvencies in the district last
month, and aggregate liabilities totaled only $805,698. Employment conditions failed to show mate­
rial improvement in February, but on the other
hand may have become slightly worse. On the
whole, however, there was little net change in the
situation. Coal production held up to seasonal level,
and on a daily basis exceeded January production.
Coal mined last month exceeded the February 1934




tonnage by nearly 12 per cent. Tex­
tile mills in the Carolinas and Vir­
ginia consumed more cotton in Feb­
ruary than in that month last year,
but showed a seasonal recession in
consumption under January 1935
figures. Spot cotton prices declined
considerably in the first half of
March, and tended to unsettle the
cotton textile market. Toward the
middle of March a movement to­
ward restriction of operations ap­
peared to be forming among textile
mills. The final ginning report on
the 1934 cotton crop, released by
the Census Bureau on March 20,
showed only 1 per cent decrease
from the final production estimate made by the
Department of Agriculture early last December.
Tobacco markets were either closed or were clean­
ing up the end of the crop in February, and sales
were very small. Prices averaged lower than those
in earlier months of the season, but were satisfac­
tory for the grades of tobacco sold. Tobacco manu­
facturing continued to exceed production a year
earlier in cigarettes and cigars, but smoking and
chewing tobacco produced in February was less
than in the corresponding month last year. Build­
ing permits issued in February 1935 exceeded the
permits issued in February 1934 in twenty-four of
thirty-one reporting cities in the Fifth district, but
contracts actually awarded amounted to less than
half the awards in the same month last year.
Wholesale trade in February exceeded February
1934 trade in groceries, hardware and drugs, but
sales of dry goods and shoes were smaller during
the 1935 month. Farm work was somewhat handi­
capped by wet weather in February and early
March, but winter crops are growing normally and
the soil is in excellent condition for continued
growth and for Spring cultivation.

FIFTH FEDERAL RESERVE DISTRICT

MONTHLY REVIEW

2

Reserve Bank Statement
ITEMS
Rediscounts h e ld --------------Open market paper-------------Industrial advances------------Foreign loans on gold---------Government securities --------Total earning assets---------Circulation of Fed. Res. notes...
Members’ reserve deposits----Cash reserves------------------Reserve ra tio -------------------

000 omitted
Mar. 15 Feb. 15 Mar. 15
1934
1935
1935
$

152
204
3,476
7
113,563
117,402
154,112
143,169
199,146
64.87

t

131 $ 1,919
204
1,193
2,822
0
0
0
93,563
103,563
96,675
106,720
155,379 147,694
141,264 100,660
204,763 166,339
67.37
65.30

Total earning assets of the Federal Reserve Bank
of Richmond increased by $10,682,000 between Feb­
ruary 15 and March 15, both this year, of which
amount $10,000,000 was the Bank’s share in System
purchases of Government securities. Industrial
loans for working capital under authority of Sec­
tion 13-B of the Federal Reserve Act rose by
$554,000 during the month, and the Bank shared in
foregn loans on gold to the amount of $7,000. Re­
discounts for member banks rose $21,000 between
the middle of February and the middle of March.
Industrial commitments on loans made by member
banks rose by $185,000 between February 15 and
March 15, each commitment being an agreement
to assume liability on a certain loan at the option
of the lending member bank during the life of the
commitment. There was a seasonal decline in the
circulation of Federal reserve notes amounting to
$1,267,000 between February 15 and March 15, but
member bank reserve deposits rose by $1,905,000
during the same period. The several changes enum­
erated, with others of less important, lowered the
cash reserves of the Federal Reserve Bank of Rich­
mond by $5,617,000 during the past month, and re­
duced the ratio of cash reserves to note and deposit
liabilities combined by 2.5 points.
In comparison with condition figures reported for
March 15,1934, the corresponding figures for March
15, 1935, show material increases in most items.
Rediscounts for member banks declined during the
year by $1,767,000, and the portfolio of open mar­
ket paper dropped by $989,000, but ownership of
Government securities increased by $20,000,000.
On the 1935 date the Bank had $3,476,000 in loans
to industry for working capital outstanding, and
also had $7,000 outstanding in foreign loans on gold,
whereas a year ago the Bank had no loans of
either type. The changes in earning assets resulted
in a net rise for the year amounting to $20,727,000.
Federal reserve note circulation at the middle of
March this year showed an increase of $6,418,000
over outstanding circulation a year earlier, and
member bank reserve deposits rose by $42,509,000
during the year. Total cash reserves of the Fed­
eral Regerve Bank of Richmond rose by $32,807,000
between March 15,1934, and March 15,1935, but on
account of increases in note circulation and mem­
ber bank reserve deposits the ratio of cash reserves




to note and deposit liabilities combined declined a
little less than half a point.

Statement of 28 Member Banks
ITEMS

Mar. 13
1935

000 omitted
Feb. 13 Mar. 14
1934
1935

Loans on stocks and bonds (in­
cluding Governments) ____ _ $ 57,900 $ 57,881 $ 59,593
94,753
95,380 112,284
All other loans-----------------Total loans and discounts---- 152,653 153,261 171,877
212,160 203,327 180,431
Investments in securities.....
57,112
36,611
Reserve Bal. with F. R. Bank....
52,930
12,111
11,443
Cash in vaults-------------------11,871
Demand deposits __________ 237,606 237,741 203,215
Time deposits-------------------- 136*747 135,428 132,759
0
0
Borrowed from F. R. Bank._
_
0

The accompanying table shows the principal
items of condition of twenty-eight regularly re­
porting member banks in the Fifth reserve district
as of three dates, thus affording opportunity for
comparison of the latest available figures with those
of the corresponding dates a month and a year
earlier. I t should be understood th at the figures in
the table reflect conditions as of the report dates
only, and are not necessarily the highest or lowest
figures th at occurred during the interval between
the dates.
Between February 13 and March 13, both this
year, loans and discounts declined $608,000, an unseasonal decrease when borrowing by merchants to
discount bills for Spring merchandise tends to in­
crease. However, Easter is later this year than in
most years, and therefore merchants are probably
receiving goods later. Loans on stocks and bonds
rose $19,000, but all other loans, which are chiefly
commercial and industrial at this season, dropped
$627,000. The reporting banks increased their in­
vestments in securities by $8,833,000 during the
month, but their reserve deposits at the Federal
reserve bank declined by $4,182,000. Cash in vaults
declined $240,000 between the middle of February
and the middle of March. Deposits in the twentyeight banks rose $1,184,000 last month, demand de­
posits falling $135,000 and time deposits rising
$1,319,000. None of the reporting institutions were
borrowing at the reserve bank on either February
13 or March 13.
During the year between March 14, 1934, and
March 13, 1935, discounts at the reporting banks
fell by $19,224,000, of which $1,693,000 was in loans
on securities and $17,531,000 was in all other loans.
On the other hand, investments in securities, chiefly
Government issues for short time investment, rose
by $31,729,000 during the year, and the banks in­
creased their reserve deposits at the Federal re­
serve bank by $16,319,000. Cash in vaults rose
$428,000 during the period under review. Aggre­
gate deposits in the tw enty-eight banks increased
by $38,379,000 between March 14 last year and
March 13 this year, demand deposits rising by
$34,391,000 and time deposits increasing $3,988,000.

MONTHLY REVIEW
None of the reporting banks were borrowing on
either the 1934 or the 1935 dates.

Time and Savings Deposits
Time deposits in twenty-eight reporting banks
and aggregate deposits in eleven mutual savings
banks in Baltimore totaled $335,036,766 at the end
of February 1935, a higher figure than either $333,037,189 reported at the end of January this year or
$320,697,855 at the end of February last year. Both
the reporting member banks and the savings banks
gained in deposits during the past month, and both
also registered gains for the year.

Debits to Individual Accounts
CITIES

000 omitted
Total debits, four weeks ended
Mar. 13,
Feb. 13,
Man 14,
1935
1935
1934

Asheville, N. C._____
Baltimore, Md............
Charleston, S. C.......
Charleston, W. Va—
Charlotte, N. G ------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......1
____
Portsmouth, Va.........
Raleigh, N. G..........
Richmond, Va. .........
Roanoke, Va............ Washington, D. C... .
Wilmington, N. C.__
Winston-Salem, N. C

$ 7,813
245,473
11,213
37,215
47,981
26,059
6,042
5,190
19,204
11,418
15,146
5,962
10,982
11,222
6,266
43,441
2,892
21,762
112,298
17,454
175,712
7,873
25,588

$ 7,644
227,109
11,400
36,393
44,778
23,349
5,737
6,168
20,095
11,445
13,113
5,278
11,138
12,243
6,150
38,554
2,899
25,531
113,163
17,205
163,517
7,345
25,153

$ 7,347
232,802
9,993
35,045
39,641
14,860
4,919
4,769
19,567
8,453
13,628
4,626
10,262
12,509
5,776
33,266
2,749
15,146
102,878
17,094
151,922
6,799
25,049

District T otals___

$874,206

$835,407

$779,100

Debits to individual, firm and corporation ac­
counts figures in clearing house banks in twentythree leading 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 available
figures, those for four weeks ended March 13,1935,
with corresponding figures a month and a year
earlier.
Total debits in reporting cities during the four
weeks ended March 13 amounted to $874,206,000, an
increase of $38,799,000, or 4.6 per cent, over debits
totaling $835,407,000 reported for the preceding
four weeks ended February 13. G osing of tobacco
markets tended to decrease debits during the later
four weeks, but early payments of income taxes and
payment for Spring merchandise more than offset
that adverse factor. Fourteen of the twenty-three
cities show higher figures for the more recent
period. Of the five largest cities, increases were
reported by Baltimore, Washington, Norfolk and




3

Charlotte, but Richmond reported a decrease of
eight-tenths of 1 per cent. Greenville, S. C., with
an increase of 15.5 per cent, led all cities in per­
centage gain during the month.
In comparison with debits reported for the four
weeks ended March 14 last year, debits for the cor­
responding four weeks this year show an increase
of $95,106,000, or 12.2 per cent. Twenty-one of
the tw enty-three reporting cities show higher fig­
ures for the 1935 period, Durham and Lynchburg
being the only ones to fall below last year’s totals.
The declines in these cities were chiefly due to re­
duced activity in tobacco marketing in February
this year. Columbia with an increase of 75.4 per
cent and Raleigh with 43.7 per cent led all cities in
percentage increases during the 1935 period, but
both of these cities include many State transactions
in their debits. Among the cities not influenced by
movements of State funds, Greensboro led with an
increase of 35.1 per cent, Norfolk ranking second
with a gain of 30.6 per cent.

Commercial Failures
In commenting on the business failure record for
February, the Dun & Bradstreet Monthly Review
says, “Business failures in February again declined
both in number and in amount of liabilities. The
record for the month just closed shows 1,005 busi­
ness defaults in the United States, against 1,184 in
January, 1,049 in February a year ago, and 2,378 in
February 1933. The total indebtedness involved in
February failures this year was $18,737,657, com­
pared with $18,823,697 in January, and with $19,444,718 and $65,576,068, respectively in February of
the two preceding years.” The recession in Febru­
ary in comparison with January was not quite so
marked as in other years, but it is again necessary
to go back to 1920 for a year in which the number
of business defaults in February was as low as for
that month this year. In the Fifth Federal reserve
district, the February record in both number of in­
solvencies and in aggregate liabilities involved was
better than in the Nation as a whole. There were
only 39 bankruptcies in the district last month, a
decline of 37.1 per cent in comparison with 62 fail­
ures reported for February last year, while the de­
crease in the United States was 42 per cent be­
tween the same two months. Last month’s liabili­
ties totaling $805,698 in the Fifth district showed
a decline of 5.3 per cent in comparison with liabili­
ties totaling $850,365 in February 1934, while the
National decline in liabilities was only 3.6 per cent.
In the Boston, Philadelphia, Atlanta, St. Louis, Dal­
las and San Francisco districts failures in February
this year exceeded failures in February last year,
while fewer failures were reported this year in the
New York, Cleveland, Richmond, Chicago, Minnei apolis and Kansas City districts. In liabilities inj volved in February 1935 failures, the New York,
St. Louis and San Francisco districts showed larger
j figures than liabilities in February last year, but all

4

MONTHLY REVIEW

other districts showed lower figures for the 1935
month.

Employment
The number of workers engaged in industry
seems to have declined slightly in the Fifth district
between the middle of February and the middle of
March, chiefly due to some curtailment in March in
operations in the textile field. Farm work has been
delayed on the whole by wet weather, postponing
employment of agricultural workers. Construction
work continues at a low level, practically all pro­
jects of importance under way being public work
done with Government funds. Coal production held
up through February, giving work to the usual
number of miners in the Fifth district, and ship­
yards are employing a relatively large number of
men. A larger number of persons are now em­
ployed in various branches of the automobile in­
dustry than was the case a few weeks ago.

Coal Production
Bituminous coal production in the United States
totaled approximately 34,423,000 net tons in Feb­
ruary 1935, a seasonally smaller output than 36,393,000 tons mined in January this year, but 11.7
per cent more than 32,606,000 tons dug in February
1934. February had two less working days than
January 1935, however, and therefore on a daily
basis last month’s average production of 1,440,000
tons exceeded daily production of 1,394,000 tons in
January. Total production during the present coal
year through March 9 amounted to 335,134,000 net
tons, an increase of 1.6 per cent over 329,768,000
tons dug to the same date last year.
Tidewater shipments of coal through Hampton
Roads ports this calendar year through March 9,
totaled 4,085,777 net tons, a higher figure than
3,813,233 tons shipped through the same ports to
March 9 last year.
The Bureau of Mines has issued a report on pro­
duction of bituminous coal during 1934 by states.
W est Virginia led all states with 98,190,000 tons,
Pennsylvania ranking second with 89,223,000 tons
and Illinois third with 40,905,000 tons. Fifth district
coal producing states, Maryland, Virginia and W est
Virginia, mined a total of 108,950,000 tons, or 30.4
per cent of National production of 358,395,000 tons.
In 1934 Fifth district states produced 31.2 per cent
of National production.

Textiles
Operations in cotton textile mills in the Fifth
reserve district continued on full time under code
allowance through February, but in th at month and
in March some goods began to accumulate in the
mill warehouses and curtailment of output is now
under consideration. A few mills have closed for
an indefinite period, to allow demand to catch up




with production. Cotton mills in the district con­
sumed 220,301 bales of cotton in February 1935, a
decrease of 12.3 per cent under 251,186 bales used
in January 1935 but an increase of 4.7 per cent
over 210,481 bales consumed in February 1934. Of
the 220,301 bales used last month, North Carolina
mills accounted for 111,855 bales, South Carolina
mills used 95,951 bales, and Virginia mills 12,495
bales, all higher figures than those for February last
year. Consumption of cotton in the Richmond re­
serve district in February this year totaled 46.1 per
cent of National consumption, compared with 45.9
per cent of National consumption for the district in
January 1935 and 44.1 per cent in February 1934.
On February 21, the Department of Commerce
issued a report on spindles in place, spindles active
in January, total spindle hours of operation in Jan­
uary, and average hours of operation per spindle in
place in January. On January 31, 1935, there were
30,825,944 spindles in place in the United States,
North Carolina leading with 6,141,354, or 19.92 per
cent of the total, South Carolina ranking second
with 5,852,012 spindles, or 18.98 per cent, and Mass­
achusetts third with 5,544,712 spindles, or 17.99 per
cent. The Fifth district as a whole had 41.03 per
cent of total spindles in place in the United States
at the end of January 1935. In actual spindle hours
of operation, South Carolina led all states for Janu­
ary with 1,959,862,279, or 26.1 per cent of the Na­
tional total of 7,510,017,095 hours, and North Caro­
lina ranked second with 1,592,806,047 hours, or 21.21
per cent, while Massachusetts had 964,661,506 hours,
or 12.85 per cent. The Fifth district, with 41.03 per
cent of total spindles in the United States in place
in January, showed 49.98 per cent of total hours of
operation. In actual hours of operation per spindle
in place, South Carolina with an average of 335
hours per spindle ranked first, Virginia with 307
hours ranked second, and North Carolina with 259
hours ranked sixth. The average hours of opera­
tion for the United States in January was 244 per
spindle in place.

Cotton Statistics
Spot cotton prices dropped materially between the
middle of February and the middle of March, and
for the first time since March 1933 reached a lower
figure than at the corresponding time in the pre­
ceding year. On February 15, 1935, the average
price for upland short staple cotton, middling grade,
on ten Southern markets was 12.54 cents per pound,
and the price rose to 12.58 cents on March 1. The
price then turned downward, and on March 15
averaged 11.37 cents per pound. On March 16,
1934, the average price was 12.15 cents.
Cotton consumption in the United States in Feb­
ruary 1935 totaled 478,291 bales, compared with
546,787 bales used in January this year and 477,046
bales in February 1934. Total consumption for the
seven months of the present cotton season—August
1 to February 28—amounted to 3,152,892 bales,

MONTHLY REVIEW
compared with 3,400,277 bales consumed in the cor­
responding period ended February 28, 1934. Manu­
facturing establishments held 1,161,117 bales on
February 28, compared with 1,193,748 bales held on
January 31 this year and 1,656,776 bales on Febru­
ary 28, 1934. Public warehouses and compresses
held 8,373,059 bales in storage at the end of Feb­
ruary this year, compared with 8,964,280 bales so
held a month earlier and 8,636,596 bales on February
28 last year. February exports totaled 390,294
bales, compared with 465,711 bales sent abroad
in January this year and 628,457 bales exported in
February last year. Exports during the seven
months of this cotton year totaled 3,254,832 bales,
compared with 5,547,907 bales shipped over seas
during the corresponding seven months ended Feb­
ruary 28, 1934. Consumption of cotton in the cot­
ton growing states numbered 380,643 bales in Feb­
ruary 1935, compared with 436,220 bales used in
January and 375,109 bales in February 1934. Last
month’s consumption in the cotton growing states
amounted to 79.58 per cent of National consump­
tion, compared with 78.63 per cent of National con­
sumption used in the cotton growing states in Feb­
ruary last year. Of the 380,643 bales of cotton used
in cotton growing states in February, the Fifth
district mills used 220,301 bales, or 57.88 per cent,
compared with 56.11 per cent of Southern consump­
tion attained in the district in February last year.
Spindles active in the United States at some time
in February 1935 numbered 24,925,168, compared
with 25,145,964 in January this year and 26,379,906
in February last year.
The final ginning report on the 1934 cotton crop
was released by the Census Bureau on March 20,
and showed the year’s production to be 9,469,338
running bales, the equivalent of 9,633,879 bales of
500 pounds gross weight. The final ginning figure
was 1 per cent below the final crop estimate of the
Department of Agriculture made early in Decem­
ber. In the Fifth district, all of the cotton growing
states showed lower ginning figures than the esti­
mates of probable production. North Carolina
ginned 631,358 equivalent 500 pounds bales, com­
pared with a forecast of 650,000 bales for the year,
a decrease of 2.9 per cent; South Carolina ginnings
totaled 681,511 bales, compared with a forecast of
695,000 bales, a decrease of 1.9 per c e n t; and Vir­
ginia ginnings totaled 32,929 bales against a fore­
cast of 39,000 bales, a decrease of 15,6 per cent.
The district total production of 1,345,798 bales
shows a decrease of 110,678 bales, or 7.6 per cent,
under the 1933 yield of 1,456,476 bales, the decline
being due to acreage reduction.

Tobacco Marketing
Virginia sales of leaf tobacco during February
amounted to 5,100,745 pounds, for an average price
of $11.20 per hundred, compared with February
1934 sales amounting to 14,893,656 pounds, for an
average of $9.76 per hundred pounds. Total sales




5

for the season through February amounted to 101,273,356 pounds this year and 103,042,686 pounds
last year, and this year’s average price of $24.44
per hundred pounds compares with last season’s
average of $14.41 per hundred. Flue-cured tobacco
markets all closed in January, after selling 75,752,497 pounds this year compared with 77,148,383
pounds sold during the previous season. Fire-cured
sales in February amounted to 3,972,605 pounds, at
$11.57 per hundred. Sales in February 1934 totaled
7,236,675 pounds, and last year’s average price was
$7.05 per hundred. Total sales of fire-cured tobacco
during the current season to March were 16,476,900
pounds, at $12.41 per hundred pounds, compared
with season sales to February 28, 1934, totaling 11,515,672 pounds, at $6.98 per hundred. Burley mar­
kets were open only a few days in February, and
sold only 116,735 pounds for an average of $11.95
per hundred pounds. In February 1934 burley sales
totaled 2,976,146 pounds, for $11.85 per hundred.
Total sales of this type this season through Febru­
ary amounted to 6,454,620 pounds at an average
price of $17.24 per hundred, compared with 12,775,328 pounds sold last year for an average of $10.62
per hundred. Sun-cured sales in February totaled
1,011,405 pounds at $9.68 per hundred, compared
with only 293,241 pounds sold for an average of
$10.10 per hundred in February 1934. Season sales
of sun-cured tobacco totaled 2,589,339 pounds this
year, at $9.71 per hundred, compared with 1,656,975
pounds at $8.44 sold last year. The quality of to­
bacco sold during February was relatively poor, as
usually happens at the end of the season, but was
better than the quality sold in the same month last
year. Warehousemen estimated th at sales graded
26 per cent good, 41 per cent medium, and 33 per
cent common, compared with the February 1934
classification as 18 per cent good, 35 per cent me­
dium, and 47 per cent common.
North Carolina tobacco markets closed early in Feb­
ruary, and the Agricultural Statistician for the
State has issued a report on total sales for the sea­
son, with comparisons to other recent seasons. Sales
of producers’ tobacco in 1934-1935 totaled 395,135,824 pounds, and the average price received was
$28.44 per hundred, compared with 516,376,445
pounds at $15.93 per hundred sold in 1933-1934.
With the exception of the 1932-1933 sales, the sales
this year were the smallest for any year since 19261927, but this year’s average price was the highest
for any year since 1919-1920, and in fact was the
fourth highest average on record. North Carolina
tobacco was marketed earlier during the past sea­
son than probably ever before, due chiefly to the
very favorable prices obtained.

Tobacco Manufacturing
The Internal Revenue Bureau of the Treasury
Department issued a report on March 21 on tobacco
manufacturing in February. Cigarettes produced
totaled 9,306,198,840, compared with 9,167,641,657

6

MONTHLY REVIEW

cigarettes made in February 1934, and taxes paid
on the cigarettes amounted to $27,920,348 in Feb­
ruary 1935 and $27,699,530 in February 1934. Cigars
made last month totaled 320,864,191, compared with
299,214,080 cigars made in the corresponding month
last year, and taxes paid on the cigars totaled $791,767 and $776,217 in February 1935 and 1934, respec­
tively. Manufactured tobacco made in February
this year, including smoking and chewing tobacco,
amounted to 23,121,561 pounds, compared with 25,030,055 pounds in February last year, and taxes on
the product totaled $4,162,011 this year and $4,505,410 last year. Snuff production totaled 2,981,116
pounds and taxes thereon amounted to $536,601 in
February 1935, compared with 3,320,649 pounds and
taxes totaling $597,717 in February 1934. In addi­
tion to the taxes enumerated, which total $33,410,
727, processing taxes, import compensating taxes,
and floor taxes totaling $2,944,660 were levied on
tobacco manufacturers in February this year.

Agricultural Notes

Construction
Building Permits Issued in February
1935 and 1934
CITIES
Baltimore, M d ------Cumberland, M d.___
Frederick, Md............
Hagerstown, Md. __
Salisbury, Md. _____
Danville, Va.........
Lynchburg, Va.......—
Norfolk, Va............ ....
Petersburg, V a .___
Portsmouth, Va.........
Richmond, V a ._____
Roanoke, V a.______
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. C.__

Permits Issued
1935
1934
381
3
7
7
8
20
33
106
0
14
89
33
6
79
9
13
24
55
27
38
29
13
8
5
53
41
28
40
27
33
307

Total Valuation
1934
1935

268 $ 498,120 $1,778,880
20,958
825
3
5,118
6,525
6
9,290
7,465
5
0
3,700
0i
5,840
3,900
8j
30,141
18,919
19 j
32,226
61 | 1,074,795
7,000
2 !
o
12,245
5,000
11
87,582
87,316
61 j:
720
21,491
5
7,630
10,300
2
83,489
6,935
45
10,765
8,575
9
8
9,950
10,590
9,775
11,810
8
123,511
19,851
19
43,274
68,667
16
17,605
21,110
19
29,415
27,350
4
12,147
13
231,110
3,100
21
4,870
1,325
6,740
5!
22,218
26,610
32 !
6,255
i
37,103
26 ;
2,986
22,088
17
71,575
174,460
26
1,485
30,005
5
8,200
19,319
9
425,560
833,400
195
909 $3,511,107 $2,668,107

I t is too early in the season to tell much about
1935 crops, but on the whole the outlook for the
year appears favorable. W inter grain crops are
doing well, there is plenty of moisture in the soil
for plant growth and for cultivation of the land,
and farmers are financially better able to carry out
the season’s work than they have been for some
years. Fertilizer sales are reported good, and fer­
tilizer distribution got under way earlier than usual
Totals --------1,536
this year. The Department of Agriculture issued
an “intentions to plant report” on March 20, cover­
Building permits issued in thirty-one cities of the
ing the chief crops except cotton. The report says,
“The figures are to be considered only as indicative Fifth reserve district totaled 1,536 in February 1935,
of the probable acreage for harvest judging by plans an increase of 69 per cent in comparison with 909
now reported by growers. They are offered pri­ permits issued in the corresponding month last
marily to assist growers in making such further year. Total valuation for all permits issued last
changes in their planting plans as may appear de­ month amounted to $3,511,107, an increase of 31.6
sirable.” In the Fifth reserve district, Maryland per cent in comparison with a valuation of $2,668,farmers expect to increase acreage in corn, oats and 107 in February 1934. Twenty-four of the thirtyIrish potatoes, make no change in hay and sweet one cities reported higher valuation figures for last
potatoes, and reduce acreage in barley and tobacco. month than for the same month last year, but most
Virginia reports increased acreage in corn, oats, hay, of the 31.6 per cent increase occurred in Norfolk.
sweet potatoes and tobacco, while barley and Irish Among the five largest cities, Richmond, W ashing­
potato acreages will be reduced. West Virginia acre­ ton, Norfolk and Charlotte reported higher figures
age in corn, oats and hay will be increased, no . for February this year than last, but Baltimore rechange is planned in barley or tobacco, and Irish • ported a very large decrease in valuation figures.
Contracts actually awarded for construction work
potatoes will be reduced. North Carolina farmers
plan to increase their oats and tobacco crops, but in the Fifth reserve district in February this year
reduced acreage will be planted in corn, barley, hay, totaled $8,203,823, including both rural and urban
Irish potatoes and sweet potatoes. South Carolina projects, compared with $19,341,529 in contracts
reports larger acreage in hay and tobacco, and re­ awarded in February 1934, according to figures col­
duced acreage in Irish potatoes, with no changes lected by the F. W. Dodge Corporation. Of the
contemplated in acreages of corn, oats and sweet February 1935 contracts, $2,609,183, or 31.8 per cent,
potatoes. The price of Irish potatoes was very low was for residential structures, compared with $2,last season, and all states in the Fifth district ex­ 311,554, or 12.0 per cent of the total, for residence
work in February 1934.
cept Maryland plan reduced acreage this season.




MONTHLY REVIEW

Retail Trade, 31 Department Stores

Wholesale Trade, 58 Firms

Richmond Baltimore Washington Other Cities District
February 1935 sales, compared with sales in February 1934:
+162
+ 5.1
+192
+ 82
+12.7
Jan.-Feb. 1935 sales, compared with sales in Jan.-Feb. 1934:
+ 6.5
+ 4.0
+15.9
+ 4.7
+ 9.3
Feb. 28, 1935, stocks, compared with stocks on Feb. 28, 1934:
+ 8.6
— 8.9
— 2.1
— 1.0
— 3.7
Feb. 28, 1935, stocks, compared with stocks on Jan. 31, 1935:
+ 9.5
+ 8.4
+11.1
+10.6
+ 9.8
Number of times stock was turned in February 1935:
278
240
.301
231
268
Number of times stock was turned since January 1, 1935:
.529
.488
.584
.463
.528
Percentage of Feb. 1, 1935, receivables collected in February:
Z/.0
4/.L
4/.0
Note: Sales and stock changes are percentages.




7

21

7

Groceries Dry Goods

6

Shoes

13

Hardware

11

Drugs

February 1935 sales, compared with sales in February 1934:
+ 4.3
—17.6
— 2.9
+12.1
+ 2.3
February 1935 sales, compared with sales in January 1935:
—10.8
— 3.8
+42.5
—20.7
—17.4
Jan.-Feb. 1935 sales, compared with sales in Jan.-Feb. 1934:
+ 6.6
—192
+ 32
+ 9.7
+ 6.3
Feb. 28, 1935, stocks, compared with stocks on Feb. £8, 1934:
+20.7(8*) —12.8(3*) + 9.9(4*) +10.0(7*)
Feb. 28, 1935, stocks, compared with stocks on Jan. 31, 1935:
— 2.0(8*) + 4.4(3*) — 2.5(4*) + 42(7*)
___
Percentage of Feb. 1, 1935, receivables collected in February:
80.3(12*) 39.5(4*)
48.7(5*)
40.9(11*) 61.6(7*)
♦Number of reoortincr firms.

are percentages.

(Compiled March 21, 1935)

A ll other fimires in the table

MONTHLY REVIEW

8

BUSINESS CONDITIONS IN THE UNITED STATES
(Compiled by the Federal Reserve Board)
In February industrial production increased by
less than the usual seasonal amount, following
sharp advances in December and January. Whole­
sale prices of many leading commodities showed
little change in February and declined in the early
part of M arch; prices of livestock and meats, how­
ever, advanced further in February and continued
at relatively high levels during the first three weeks
of March.

Production and Employment
Daily average output of basic industrial com­
modities increased in February by an amount
smaller than is usual at this season and the Fed­
eral Reserve Board’s index, which makes allowance
for seasonal variations, declined from 91 per cent
of the 1923-25 average in January to 89 per cent in
February. At steel mills activity increased further
during the early part of February; later in the
month and in the first three weeks of March, how­
ever, activity declined, contrary to seasonal ten­
dency. In the automobile industry production con­
tinued to increase and the output indicated for the
first quarter is larger than in the corresponding
period of any other year since 1929. Lumber pro­
duction remained at a low level. At textile mills
activity in February declined somewhat from the
relatively high rate of the preceding month. In
the meatpacking industry output continued to de­
cline.
Factory employment increased between the mid­
dle of January and the middle of February by more
than the usual seasonal amount, reflecting substan­
tial increases in working forces in the automobile,
machinery, iron and steel, and wearing apparel in­
dustries and smaller increases in many other lines.
At meat-packing establishments employment con­
tinued to decline and at tobacco factories it showed
less than the usual seasonal growth. Payrolls at
manufacturing establishments also increased considerably in February. In non-manufacturing in­
dustries employment and payrolls showed little
change.
Total value of construction contracts awarded in
the period from January 1 to March 15, as reported
by the F. W. Dodge Corporation, was smaller than
in the corresponding period last year, reflecting a
reduction in the volume of public projects. The
value of contracts awarded for residential building
during this period showed a slight increase over the
low level of a year ago.




j Distribution
j
j Daily average volume of revenue freight-car
• loadings showed a seasonal increase in February
: and little change in the first half of March. Dei partm ent store sales increased in February, a month
I when there is usually little change, and the coms bined total for the first two months of the year
j was larger than a year ago by 5 per cent.
I

| Wholesale Commodity Prices

During the period from the beginning of Febru; ary to the middle of March there were wide move! ments in prices of many individual commodities,
! while the general level of wholesale prices, as
| measured by the Bureau of Labor Statistics index,
I showed little change. In the third week of March
prices of cotton and other textiles, grains other
: than wheat, coffee, rubber and tires, scrap steel
• and tin were considerably lower than at the begin; ning of February, while prices of livestock, meats
; and sugar were higher.

Bank Credit
During the four weeks ended March 20 member
bank reserve balances declined by $280,000,000,
principally in consequence of an increase in Treas: ury deposits with Federal Reserve banks built up
in connection with March 15 fiscal operations. Ex: cess reserves of member banks declined to about
$1,950,000,000.
Demand deposits (net) of weekly reporting mem­
ber banks in leading cities increased further by
$380,000,000 during the four weeks ended March 13.
The balances of other banks with reporting banks
increased by $100,000,000 while Government de­
posits declined, reflecting the withdrawal of funds
from depository banks. Loans and investments of
reporting banks increased by $275,000,000. There
was a further growth of $85,000,000 in holdings of
, direct obligations of the United States Government
; and a smaller increase in obligations guaranteed by
; the Government. Loans to brokers and dealers in
securities increased by $130,000,000, while other
: loans showed little change.
Yields on United States Government obligations
declined slightly further, and open-market money
rates continued at a low level.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102