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F E D E R A L R E S E R V E BAN K O F RICHMOND General Business and Agricultural Conditions in the Fifth Federal Reserve District By CALDWELL HARDY, Chairman and Federal Reserve Agent RICHMOND, VIRGINIA, MAY 31, 1922. NATIONAL SUMMARY* DISTRICT SUMMARY Steady improvement in the indicated yield o f the principal agricultural products has been an outstanding feature in the developments of the past month. Im provement in the prices of cotton, grains, and other products is also a noteworthy feature of the month. In appraising the manufacturing situation a distinc tion must be drawn between basic commodities and those of a more highly finished sort. The marked improvement in the case of iron and steel noted in business surveys o f previous months has continued during May, unfilled orders increasing materially and ingot production being the greatest in any one month since November 1920. Much the same may be said with respect to copper and other non ferrous metals. The situation in other important lines o f manufacture is less easy to characterize. Due to the continuation of the textile strike the output of cotton goods has been materially lessened, although in the Southern cotton mill districts plants are reported as operating near full capacity. A very pronounced increase in unfilled orders has been noted by representative cotton mills in the Atlantic District which is typical o f the general sit uation. There was a recession of activity of woolen manufacturing during April, especially in the worsted branch of the industry, while the silk industry is suf fering from a condition of continued depression and inactivity. A mixed situation confronts manufacturers of boots and shoes. In the St. Louis District, activity has been well maintained but in the Boston, Philadel phia and Chicago Districts some recession has appar ently occurred. A portion o f this must be ascribed to seasonal reaction. The general index number o f whole sale prices compiled by the Federal Reserve Board shows an advance of two points as compared with the preceding month, making* it 149, which closely approx imates the index number o f 146 of the corresponding month a year ago. This advance is due to the ad vances in the prices o f agricultural products and in materials used in certain basic industries. On the whole, the adjustment o f prices among commodities and industries is approaching a more normal relation ship. Reflecting the improved condition in agriculture and the large disbursement in wages in many basic industries, retail trade exhibits an enhancement of buy ing power, returns being more favorable than those o f recent months. In the wholesale trade, however, the situation is spotty, some lines such as hardware being favorably influenced by the great activity in building. On the whole there appears to have been a decrease in unemployment which has been brought about through the increased seasonal demand fo r out door labor, the enlarged opportunities fo r employment in the mines, and in other directions. Factory demand has not kept pace with the growth in other branches, but, on the whole, has receded, especially if voluntary unemployment due to strikes in certain sections of the country be considered. Financially the month of May has been a period o f comparative stability. Among domestic developments the striking event of the month Signs of a healthy business revival are accumu lating daily. The newspapers are filled with stories of constantly increasing permits for construction work of many types, of rising prices for the leading agricultural products, of lowering interest rates and easier credit conditions, of decrease in the number of bankruptcies, of more evenly balanced foreign exchange, and of innumerable other signs that busi ness is surely and steadily, even though slowly, climbing out of the valley of doubt and fear into which it descended a year and a half ago. The general improvement is going on in the F ifth Dis trict also, as is shown by the detailed analysis con tained in the following pages. Specifically, reports from member banks show further liquidation of frozen loans and increases in demand and time deposits, and in reserves. Bills held by the Federal Reserve Bank have continued to diminish, cash reserves have increased, and the re serve ratio has correspondingly risen. Debits to in dividual account in leading trade centers are running higher than a month or a year ago, reflecting unmis takably the growing volume of banking transactions. Labor is better employed than during the earlier months of the year. Textile manufacturers are op timistic, and while few forward orders are being booked, orders for immediate shipment are good and reserve stocks are not heavy. Farm ers are benefitting from steadily rising prices for their products, and while the planting season has been rather un favorable it is not too late to secure fair yields. Though the fruit crop has been severely hurt by late frosts, the outlook is far better than it was a year ago. - Building operations continue to increase. Wholesale and retail trade, while cautious, is im proving, and the Easter business was not unsatis factory. Collections appear to be improving, and bankruptcies are fewer than during recent months. The large number of encouraging factors that can be pointed out, in spite of the deterrent effects of the coal and New England textiles strikes, burden some freight rates, and uncertainties caused by the bonus and tariff discussions, show how fundamentally sound the general situation is.________________ has been the announcement of a cut of ten percent in railroad rates by the Interstate Commerce Commission. What effect this will have upon commodity movements is as yet uncertain. * This National Summary compiled by the Division of Analysis and Research of the Federal Reserve Board. CONDITION OF EIGHTY-ONE REPORTING MEMBER BANKS IN SELECTED CITIES. ITEMS 1. Total Loans and Discounts (exclusive of rediscounts)................................... $ 2. Total Investments in Bonds and Securi ties ....................................................... 3. Total Loans and Investments................... 4. Reserve Balance with Federal Reserve Bank..................................................... 5. Cash in Vaults............................................. 6. Demand Deposits....................................... 7. Time Deposits............................................. 8. Discounted with Federal Reserve Bank.... May 3, 1922 416,439,000 April 5, 1922 $ 417,045.000 May 4, 1921 $ 420,696,000 113.073.000 529.512.000 113.096.000 530.141.000 120.596.000 541.292.000 33.433.000 13.882.000 311.247.000 134.120.000 23.430.000 32.788.000 13.691.000 305.482.000 134.147.000 31.032.000 31.460.000 16.376.000 306.955.000 119.117.000 76.528.000 The table above shows the principal items of condition reported by eighty-one identical member banks as of the close of business M ay 3, 1922, A pril 5, 1922 and M ay 4, 19 2 1, thus affording comparisons of the M ay 3 figures with those reported a month ago and those reported a year ago. A ll items are comparable for the three dates, but as we explained last month, the figures given are not comparable with those pub lished in previous issues of our Review, one of the banks that reported heretofore having withdrawn from the Reserve System by being absorbed by a non-member bank. A comparison of the figures reported for M ay 4, 19 2 1, with those as of M ay 3, 1922 shows some encour aging developments. It will be noted that between the two dates increases are shown in reserve balances with the Federal Reserve Bank, in demand deposits and in time deposits. Time deposits have been slowly rising for many months, but demand deposits have only recently shown signs of a turn upward after a long decline extending over two years. The upward movement began in October 19 2 1, and has been fairly con stant since then. The $311,24 7,0 0 0 reported as of M ay 3, 1922 is the highest figure reached by demand deposits in the reporting banks since A pril 19 2 1, and M ay 1922 is the first month since October 1920 for which larger deposits were reported than for the corresponding month of the previous year. The changes in the figures reported for A pril 5 and M ay 3, 1922, follow the general trends mentioned in the discussion of the yearly changes, except that between the A pril and M ay dates there was a slight in crease in Cash in Vaults and a very small decrease in Time Deposits, the latter probably being a mere daily fluctuation. The increase in Demand Deposits between April 5 and M ay 3 was more striking, amounting to $5,765,000 in four weeks. DEBITS TO INDIVIDUAL ACCOUNT IN LEADING TRADE CENTERS, FOR THE WEEK ENDING CITIES Asheville, N. C....... Baltimore, Md....... Charleston, S. C..... Charleston, W. Va.. Charlotte, N. C...... Columbia, S. C.. Cumberland, Md... Danville, Va......... Greensboro, N. C.. Greenville, S. C.. Hagerstown, Md...... Huntington, W. Va.. Lynchburg, Va... Newport News, Va.. Norfolk, Va............. Raleigh, N. C.......... Richmond, Va......... Roanoke, Va........... Spartanburg, S. C... Washington, D. C...... Wilmington, N. C...... Winston-Salem, N. CTotals for 11 cities.. Totals for 22 cities... May 3, 1922 April 5, 1922 4.293.000 97.343.000 6.599.000 6.411.000 8.349.000 5.492.000 2.137.000 1.831.000 3.964.000 3.379.000 1.993.000 4.287.000 3.856.000 1.651.000 17.840.000 4.500.000 27.169.000 5.067.000 1.932.000 50.737.000 5.283.000 11.664.000 4.058.000 92.773.000 6.480.000 6.581.000 6.095.000 7.368.000 1.907.000 2.230.000 4.088.000 3.279.000 2.672.000 4.523.000 4.526.000 1.712.000 16.688.000 3.600.000 27.898.000 5.272.000 1.975.000 44.219.000 6.044.000 5.736.000 230.978.000 275.777.000 $ 218,967,000 259,724,000 May 4,1921 99,716,000 7.120.000 6*664j000 5.551.000 3,171,000 5^234,000 13.199.000 4,300,000 26.312.000 37,918,000 6,704,000 215,889,000 Debits to accounts of individuals, firms and corporations reported to us by the banks in twenty-two of the leading trade centers of the F ifth Reserve District show a steady growth in transactions through the re porting banks. The table presented herewith shows total debits in the twenty-two cities during the weeks ending M ay 3 and April 5, 1922, and also shows comparative figures for eleven of the cities during the week ending M ay 4, 19 2 1. A comparison of the debits reported by the eleven cities for which last year’s figures are available shows an increase from $215,889,000 during the week ending M ay 4, 19 2 1 to $230,978,000 during the week end ing M ay 3, 1922, a gain of $15,089,000, or 7 % . The fluctuations in debits figures outline changes in business volume with a degree of accuracy probably not equaled by any other index, and the increase shown in the figures given above is therefore significant and shows clearly the quickening of the pulse of trade. In creases during the 1922 week are reported from Charlotte, N. C., Greenville, S. C., N orfolk, Va., Raleigh, N. C., Richmond, V a., and Washington, D. C. In comparison with the week ending April 5, 1922, the figures from twenty-two cities for the week ending M ay 3, 1922, show an increase of $16,053,000, or 6 .2 % . This increase is particularly striking in view of the fact that the week ending April 5, 1922, witnessed a considerable volume of quarterly payments that were not included in the figures for the week ending M ay 3. The payment of bills incurred for Easter merchandise probably helped swell the M ay 3 totals, however. O f the twenty-two reporting cities, ten showed increases and twelve showed decreases during the M ay week, but the increases more than counterbalanced the declines. Even in the cities reporting lower figures the comparisons with the A pril week were not un satisfactory, if it be remembered that the A pril week contained a quarterly payment date. FEDERAL RESERVE BANK OPERATIONS. Between April 12, 1922 and M ay 10, 1922, Cash Reserves held by the Federal Reserve Bank of Richmond rose from $89,187,283.53 to $95,728,071.68. Between the same two dates, Total Member Bank Reserve De posits rose from $53,648,262.26 to $54,281,565.37. Total Bills on hand fell from $65,822,315.56 to $55,980,205.74, and Federal Reserve Notes in Actual Circulation declined from $92,189,450 to $8 8 ,122,155 . The ratio of total reserves to Deposit and Federal Reserve Note Liabilities combined was 6 0 .13 % on A pril 12 , 1922, but rose to 66.40% on M ay 10, 1922. On M ay 1 1 , 19 2 1, this ratio was 4 1.8 7 % . BUSINESS FAILURES IN THE TWELVE FEDERAL RESERVE DISTRICTS APRIL, 1922 AND 1921. 1922 1921 Per Cent Increase or Decrease Boston, First....................................... New York, Second............................. Philadelphia Third............................ Cleveland, Fourth............................... Richmond, Fifth.................................. Atlanta, Sixth..................................... Chicago, Seventh................................ St. Louis, Eighth................................ Minneapolis, Ninth...... ...................... Kansas City, Tenth............................ Dallas, Eleventh................................. San Francisco, Twelfth..................... 165 420 78 156 148 264 284 120 116 66 167 183 145 268 165 118 154 136 178 115 39 50 98 121 13.8 56.7 20.0 32.2 — 3.9 94.1 59.6 M.3 197.4 32.0 70.4 51.2 Totals........................................... 2,167 1,487 Number City and District 45.7% Liabilities 1922 1921 $ 2,403,840 33,677,526 1,468,343 2,840,844 3,277,906 6,557,398 10,909,837 2,244,444 2,268,658 1,937,395 3,865,301 1,607,145 $ 1,746,699 11,123,088 1,575,775 4,366,788 3,334,591 1,997,350 3,949,115 2,427,872 1593,718 1,966,778 2,905,847 2,580,148 $ 73,058,637 $ 38,567,769 Per Cent of Increase or Decrease 37.6 202.8 — 6.8 — 34.9 — 1.7 228.3 176.3 — 7.6 282.1 — 1.5 33.0 37.7 89.4% The summary of business failures for April furnished to us by Dun’s Review, reproduced herewith in tabular form, shows that although April was less disastrous than March, the number of failures was still abnormally large. Total bankruptcies in the United States numbered 2,16 7 compared with 1,487 in April 19 2 1, an increase this year of 4 5 .7 % . Total liabilities involved increased 89.4% , however, although six of the twelve Reserve districts reported lower liabilities than last year. In the F ifth District, April 1922 wit nessed 148 failures compared with 154 in April 19 2 1, a decrease of 3.9 % , and total liabilities involved also showed a decrease from $3,334,591 reported for April 19 21 to $3,277,906 for A pril 1922, a decline of 1 .7 % . The F ifth District is the only one of the twelve districts in which fewer failures were reported for the 1922 month, and the 148 bankruptcies during that month were the lowest number reported since Novem ber 19 2 1, when 143 were listed. The April 1922 liabilities were the lowest reported since October 19 21. The average liability per failure during April 1922 was $33 ,7 14 for the nation and $22,148 for the F ifth Dis trict, compared with averages of $25,937 for the nation and $21,6 53 for the F ifth District in April 19 21. LABOR — A ll reports received at the end of April indicate that unemployment has greatly lessened in comparison with several months ago, and actual shortages of good labor are beginning to develop in scat tered localities and in certain trades. Construction work continues to grow, with consequent demand for car penters, brick layers, masons, roofers, etc., and in at least one large city in the F ifth District contractors have been so anxious for workmen that they have shown a willingness to pay higher wages than for the past year. The Public Employment Bureau in Richmond reports that during A pril more positions were open in the men’s division than during any month since October 1920. The Bureau’s bulletin, after speaking of the demand for skilled labor in the building trades, goes on to say that practically all colored laborers that applied for work were placed. The only surplus labor appeared to be among the colored women seeking jobs as day workers. The report finally sums up the situation as follow s: “ Conditions have improved to such an extent that practically every person is able to secure employment of some kind, although it may not be just the kind of work or the rate of pay to which he has been accustomed.” A number of counties and cities are undertaking public improvements in roads, streets, sidewalks, sewers, etc., and as county and munici pal bonds are finding a ready sale at fairly satisfactory interest rates there appears ground for the growing belief that involuntary unemployment may soon come to an end. That this is already a fact in certain sec tions is indicated by the following quotation from a manufacturer operating plants in Virginia and both Carolinas: “ W e find labor getting scarce in our district. The best men are going north where they find ready employment in certain industrial plants that seem to be peculiarly adapted to the negroes. W e are beginning to feel already the scarcity of labor.” COAL — The coal strike which began April 1 showed no signs of weakening previous to the middle of M ay, the date of this Review ’s compilation, but on the other hand has tended to spread slowly into some of the non-union fields. The public has taken surprisingly little interest in the strike, and as yet there does not appear to be any alarm over the situation. The consumers are so little concerned that orders received by non-union mines which are operating have been insufficient to take their capacity output. Consumers have been supplying their needs from storage, and something like three and a half million to four million tons have been withdrawn from these reserve stocks each week since the beginning of the strike. It begins to appear now that consumers are realizing that their coal piles will be exhausted in a few more weeks and therefore the operating mines have received more orders during the past two weeks than during the earlier weeks of the strike. According to the U . S. Geological Survey reports, issued weekly by the Department of the Interior, the weekly production of bituminous coal by non-union mines has increased to approximately 4,500,000 tons, nearly a million tons above the production during the first two or three weeks of April. The number of unbilled cars of bituminous coal at the mines has meanwhile fallen from 30,730 cars on hand April 8 to 13,959 cars on hand M ay 6, and the number of unbilled cars of anthracite has fallen between the same dates from 2,8 15 cars to 779 cars. The effects of the strike on business in the F ifth District have been varied. Outside of W est Virginia the walk-out has had comparatively little influence except on those wholesalers that sell to retailers in the union areas of that state. In W est Virginia itself the strike has unsettled and restricted business in union territory, but has quickened the pulse of trade in the non-union fields. These two developments are naturally becom ing more marked as the strike progresses, the organized fields feeling more and more the decreased pur chasing power of the idle miners and the unorganized fields benefitting from the large volume of orders and the consequent increased earnings of the miners as they work more nearly full time. TEXTILES— The situation in the textile industry of the F ifth District at the end of A pril is a peculiar one. Practically all mills are running full time, and are receiving a considerable volume of orders for im mediate shipment, but neither jobbers nor mills are anxious to sign any appreciable volume of future con tracts. The jobbers are afraid to buy until they can better judge the cotton crop possibilities for this year, and until they can see whether the improvement in labor circles is going to increase the demand for textiles from the retailers, and the mills are equally as reluctant to sell for future delivery in the face of an advan cing cotton market and an unfavorable planting season. It is clear, therefore, that both buyers and sellers are justified in their cautious attitudes until it becomes possible to estimate this year’s supply of cotton and demand for finished goods more accurately than is now possible. The outlook for the future of the textile industry is thought by the mill authorities to be good, however, and all reports received by us this month agree in the expression of a belief in the fundamental soundness of the industry. Opinion has become con siderably more optimistic than it was at the end of March, and our correspondents state that they are rea sonably confident that business will be good for them a little later in the year, when it becomes possible to estimate the supply of cotton that will be available this year and next. Some of the factors giving rise to this optimistic view of the future are the increases in prices for farm products which will increase the purchasing power of the farm ers, improvement in foreign demand as a result of better rates of exchange, the absence of serious labor troubles in the South, and the fact that a considerable number of the Southern mills are elec trically driven by power generated by water, thus greatly lessening the danger to them of a possible continu ation of the coal strike. TOBACCO — A pril is not an active month in the tobacco trade, the growers disposing of practically their entire crop previous to that month. Production figures for the 19 2 1-19 2 2 season are now available, and show that Virginia produced 96,717,000 pounds of all types of tobacco, compared with 179,580,000 pounds in 19 20 -19 21. The tremendous decrease in production during the past season amounting to 4 6% under the record crop of 19 2 0 -19 21, was caused by a heavy cut in acreage and by a very low yield per acre as a result of the extremely unfavorable weather during the growing season. The average price for the 19 2 1-19 2 2 ^season was $20 .14 per hundred pounds for bright tobacco, compared with $ 2 3 .11 in 19 20 -19 21, and $18.66 per hundred for dark, against $9.88 the previous year. The five leading markets of Virginia in number of pounds sold for producers w ere: Danville, 25,613,074 pounds; South Boston, 13,229,823 pounds; Lynch burg, 7,767,453 pounds; Chase City, 5,773,242 pounds; and South Hill, 5,457,950 pounds. A ll of the V ir ginia figures were supplied by the State Department of Agriculture and the Bureau of Markets and Crop Estimates of the U . S. Department of Agriculture, the two agencies co-operating in the Tobacco Sales Report. The U . S. and N. C. Departments of Agriculture have announced a 4 2 % reduction in the amount of tobacco sold by growers in North Carolina during the 19 2 1-19 2 2 season, in comparison with the total sold the previous year, but the average price realized this year was 13 % higher than the average gotten last year. The joint report issued by the two departments mentioned above states that a total of 251,682,000 pounds of farmers' tobacco was estimated to have been produced in North Carolina last year, of which 241,682,000 pounds were sold on markets in that state, the other 10,000,000 pounds going out of the state for sale in border markets in other states. The average prices realized for the 19 2 1-19 2 2 crop were $24.57 f ° r aU sales and over $25.00 per hundred pounds for the producers' sales. The 19 20 -19 21 average price was $21.28 per hundred. The five leading markets in North Carolina in the number of pounds sold for producers w ere: Wilson, 34,069,200 pounds; Winston-Salem, 25,941,602; Greenville, 20,516,895; Kinston, 15,923,888; and Rocky Mount, 14 ,110 ,459. The leaf dealers report that the past month or two has witnessed distinct improvement in the leaf busi ness. The rise in foreign exchange has increased inquiries and orders from abroad, and domestic consumers are placing orders in fair volume. The dealers state that their stocks are not heavy, and they believe that this year’s crop will be largely taken up by foreign and domestic manufacturers within the next ninety days. COTTON — The bullish tendency in the cotton market during the past three weeks has carried the aver age weekly price of spot cotton in the Carolinas up from *16.37 cents per pound for the weeks ending April 15th and 22nd to an average of 18.32 cents for the week ending M ay 13 , the highest average since the week ending October 15 , 19 2 1. The average price on M ay 13 this year was approximately 8c. a pound higher than on the same date a year ago. The recent rise appears to be the result of a widespread belief in a very strong statistical position of cotton, this belief being based upon a steadily increased consumption in compari son with 19 2 1, the strength of the English demand with the improvement in sterling exchange, and the uncertainty regarding this year's production as a result of delayed planting and an exceptionally dangerous boll weevil situation. In spite of the widespread strike of textile operatives in New England, the Census Bureau has an nounced that A pril consumption of cotton totaled 446,843 bales of lint in comparison with 409,247 consumed in April 19 2 1, an increase for April 1922 of 37,596 bales. The number of spindles active in the United States during April numbered 31,389,256 compared with 32,597,453 in A pril last year, but in the cotton growing states the active spindles numbered 15,504,463 compared with 14,835,274 in A pril 19 2 1, the loss for the country as a whole resulting from the New England strikes. Cotton held in all consuming establish ments on April 30 totaled 1,458,219 bales of lint compared with 1,315,70 6 bales a year ago, but cotton in public storage and at compress totaled only 3,214,386 bales against 5,026,894 bales so held on April 30, 19 2 1. A combination of cotton held in consuming establishments and in public storage shows 1,669,995 fewer bales available on April 30, 1922, than were available April 30, 19 2 1. AGRICULTURAL NOTES— The outstanding occurrence in agricultural matters since our March R e view was written was the severe frosts throughout Maryland, Virginia and W est Virginia on the nights of A p fil 2 1, 22, 23, 24 and 25, seriously damaging fruit and other farm crops. Reports as to the actual dam age are conflicting, and it appears that even in the same orchards the damage done was not always uniform. It is thought by the majority of authorities that the apple crop has been cut fully 5 0 % , but it is certain that the average damage was not nearly as great as that done last year by the frost of March 29 and 30, 19 2 1. The Federal Bureau of Markets has announced that the strawberry crop of Virginia will probably set a new record. The berries have ripened fast, though the crop is a little later this year than last. The quality of the fruit is said to be excellent and prices are fairly good. Most of the crop raised in Virginia goes to Baltimore, Philadelphia and New Y ork. The acreage in truck crops in South Carolina has been increased, and the crops are doing well. Lettuce and asparagus crops have been harvested and sold for good prices, and potatoes, cabbage, watermelons, etc., are making steady progress. Virginia's potatoes have been damaged by frosts, but not disastrously. M ary land truck farms suffered severely from the April frosts. Wheat has, on the whole, declined in condition since March. The frosts in A pril damaged the crop in Virginia, Maryland and W est Virginia, and in South Carolina rust has practically destroyed many fields. Taking the District average, however, the prospects for a satisfactory yield are still good. Tobacco has been transplated in South Carolina and the plants are doing well. Virginia beds are good, and land has been prepared for resetting. In North Carolina the official reports indicate increased acreage in tobacco, and a more liberal use of fertilizer than last year. The cotton crop has been planted in most of South Carolina, and is being planted in North Carolina as fast as the weather permits. The weather in April was fitful, and further delayed planting in many coun ties in the cotton belt. In addition to rain the frequent changes in temperature were unfavorable to germina tion of the seed. The co-operative marketing associations appear to be making steady headway among tobacco and cotton growers. The tobacco association is rapidly getting its organization perfected, and announces that it has leased 150 warehouses, 44 of them in Virginia, 68 in North Carolina and 38 in South Carolina. The cotton association has not yet organized fully, but contracts have been signed by growers to sell a sufficient number of bales through the association to warrant its trial. South Carolina farmers have signed up something over 400,000 bales, provided the signers raise as large crops as last year. It appears now that a larger tonnage of fertilizer has been sold than was expected two months ago, and a larger portion of it than usual has been sold for cash. Business men are wondering where the large volume of cash came from, and they have con cluded that many farmers have been hoarding money outside of banks. BUILDING OPERATIONS FOR THE MONTHS OF APRIL, 1922 AND 1921. Permits Issued New Construction CITIES 0 New Repairs 1922 1921 z MARYLAND 1 Baltimore............. 368 2 Cumberland......... 38 9 3 Frederick.............. VIRGINIA 28 4 Lynchburg............ 36 5 Norfolk................. 6 Richmond............. 215 129 7 Roanoke............... WEST VIRGINIA 51 8 Charleston............ 9 Clarksburg**....... 38 ..... *153 10 Huntington 11 Parkersburg......... NORTH CAROLINA 66 12 Asheville............... 62 13 Charlotte............... 14 Durham................ 23 46 15 Greensboro........... 16 High Point........... 31 16 17 Wilmington.......... 44 18 Winston-Salem.... SOUTH CAROLINA 24 19 Charleston............ 25 20 Columbia.............. 35 21 Greenville............ 33 22 Spartanburg......... DIST. OF COLUMBIA 23 Washington.......... 432 Increase or Per Cent of Decrease Increase Total or Valuation Decrease Alterations 1922 1921 1922 1921 51 1,422 1,624 $ 2,298,600 $ 8,205,200 36 23 27 94,008 70,700 6 4 10 61,500 8,430 1922 $ 695,040 14,525 3,120 1921 0 Z $ 761,040 $—5,972,600 — 66.6% 1 21,260 16,573 18.0 2 13,040 43,150 201.0 3 13 39 116 *135 13 77 95 79 27 72 138 56,915 596,190 1,677,913 325,775 28,150 154,657 619,672 *217,700 3,950 51,115 96,638 18,907 10,600 49,354 141,275 22,115 443,294 1,013,604 126,982 57.1 217.3 133.2 58.3 4 5 6 7 115 31 51 32 287,231 107,610 *305,530 100,000 272,582 14,695 21,170 27,250 2,094 .7 *460,545 40,000 50,000 30,000 — 155,015 — 33.7 80,000 114.3 8 9 10 11 *194 37 37 11 25 16 10 53 46 13 12 23 7 1 91 64 15 12 11 13 6 110 304,111 472,000 87,800 160,525 473,210 79,300 228,520 114,550 138,900 20,075 329,850 59,525 30,700 128,530 12,684 117,000 52,950 11,345 2,750 15,000 34,410 32,516 15,227 10,200 12,175 10,145 6,000 48,620 169,729 115.4 434,873 282.2 110,475 364.9 — 170,155 — 49.7 406,290 583.2 57,600 156.9 85,780 48.4 12 13 14 15 16 17 18 22 25 25 21 21 95 31 48 15 78 31 25 230,520 199,700 82,480 57,595 70,495 370,749 75,065 243,375 7,960 27,566 10,170 7,083 18,420 16,706 12,390 8,985 149,565 168.2 — 160,189 — 41.3 5,195 5.9 — 187,682 — 74.4 19 20 21 22 240 606 628 3,307,640 1,929,700 332,528 363,242 2,742 2,947 $11,487,063 $13,589,150 $1,579,436 Totals........ 1,864 1,681 ^Includes both new work and repairs. **Clarksburg, W. Va., not included in totals. 1,347,226 58.8 23 $1,608,445 $—2,131,096 — 14.0% —Denotes Decrease. More permits for new buildings were issued in the Fifth District during April than in any other month since June 19 19. Twenty-two reporting cities for which 19 21 figures are available for comparison show 1,864 permits for new work issued in A pril 1922, compared with 1,681 issued in A pril 19 2 1, an increase during the current month of 183 permits. Figures for total valuation of new work in April 1922 totaled $ 1 1 ,487,063 in comparison with $13,58 9 ,150 for A pril of last year, a decrease this year of $2,102,087. This de crease is due to the fact that the April 19 2 1 figures included an enormous sugar refinery in Baltimore, costing $6,000,000, a total seldom equaled in a single permit in the F ifth District. A large number of residences are being built in the cities, and while most of them are either built for owners or for sale the construction will relieve the housing shortage to a considerable extent. That the shortage is being overcome is evidenced by the fact that rent reductions are beginning to be made on many pieces of property. A few of the agents are opposing reductions but some of the leaders are frankly acknowledging the necessity for lower rentals if the houses and apartments are to be filled. The first half of M ay indicates that there is no immediate slack ening in construction activity in sight. Business buildings are beginning to be erected in considerable num bers, and architects and engineers report that this class of work is just now getting under way. A s a result of the activity outlined above, dealers in all kinds of building materials are busy, and are re ceiving many orders for immediate shipment. In spite of the increased demands for materials of all kinds price changes have as yet been relatively slight, but many dealers expect prices to advance materially if the demand continues. FIGURES ON RETAIL TRADE As Indicated By Reports from Twenty-five Representative Department Stores for the Month of April, 1922. Baltimore Richmond Washington Other Cities District Percentage increase in net sales during April, compared with April, 1921................. 2.9 Percentage increase in net sales from January 1, through April 30, compared with sales during the same four months of 1921............................................................... — 12.6 — 9.7 — 10.8 — 18.6 — 12.6 Percentage increase in net sales during April, 1922, aver sales in March, 1922........ 17.6 — 0.4 2.4 14.2 10.3 Percentage increase in stocks on hand at the end of April, 1922, over stocks on hand at the end of April, 1921..................... 0.7 1.8 8.8 2.9 3.6 Percentage increase in stocks on hand at the end of April, 1922, over stocks on hand at the end of March, 1922................... — 2.1 — — 1.7 0.1 — — 4.2 0.8 — — 8.0 0.1 — — 1.3 1.2 Percentage of average stocks on hand at the end of each month since January 1, to average net sales each month during the same period, four months...................... 405.0 412.6 427.5 556.0 433.1 Percentage of outstanding orders at the end of April, 1922, to total purchases of mer chandise during the year 1921....................... 4.5 4.8 2.9 4.0 4.2 —Denotes decrease. Net sales in April reported by twenty-five department stores in the F ifth District were 1.3 % less than sales in the same stores in April 19 2 1, but were 10 .3 % greater than sales in March of this year. The in crease in April sales over those of March is contrary to the seasonal trend, but is due to the very late date of Easter this year. Among the twenty-five reporting stores, twelve reported larger sales in dollars than in April last year, these stores being located in Baltimore, Richmond, Washington, Asheville, N. C., and Co lumbia, S. C. Cumulative sales from January 1 through April 30 were 12 .6 % less than sales during the same four months of 19 2 1. Only one store out of the twenty-five has sold more dollars worth of goods since the first of the year than was sold during the same period in 19 2 1. Stocks on hand in the reporting stores show comparatively little change from stocks on hand a year or a month ago. April 30th stocks this year were 3.6% greater in selling value than stocks on April 30, 19 2 1, but were 1.2 % less than March 31st, 1922, stocks. Due to seasonally increased sales, while stocks remain nearly constant, the percentage of stocks on hand at the end of each month since January 1 to average monthly net sales during the same four months has fallen to 4 3 3 . 1 % , reflecting a more rapid turnover. This figure varies more widely in the individual stores than any other figure calculated from the reports, the per centage for the larger city stores generally running smaller than for the stores located in the smaller places. Outstanding orders for merchandise at the end of April amounted to only 4 .2% of total purchases of goods during the calendar year 19 2 1, WHOLESALE TRADE Percentage Increase (or Decrease) in Net Sales During April, 1922, as Compared With March, 1922 and April, 1921. Groceries Dry Goods Shoes Hardware Number of reporting firms in each line______ 45 15 18 18 Net sales (selling price) during April, 1922, compared with March, 1922............................ —10.0 —16.1 — 3.4 6.7 1.0 Net sales (selling price) during April, 1922, compared with April, 1921.............................. — 9.2 —17.7 — 9.2 — 9.2 43.4 Furniture 9 —Denotes Decrease. For the month of April we received confidential reports from one hundred and five wholesale firms. These reports show that net sales during that month were less in groceries, dry goods and shoes than sales in March 1922, but were greater in hardware and furniture. April 1922 sales were less than A pril 19 2 1 sales in all lines reported upon except furniture. The decreases in A pril under March are seasonal develop ments, most of the retailers having placed their orders for spring and summer stocks earlier in the season. The increase in hardware sales is doubtless due to the great activity in building, and to advancing prices of farm products which have stimulated sales of agricultural implements to some extent. The amount of construction work getting under way has also doubtless had a helpful effect upon furniture sales. In com menting on general conditions and influences that have affected their sales a number of wholesalers state that the unsettled and unseasonable weather prevailing for the past two months has seriously cut their trade. Others write that the coal strike has restricted their sales, this complaint coming chiefly from the dealers sup plying the retailers of W est Virginia. A large majority of the reporters state that they expect a gradual, though slow, improvement in business until another crop is gathered, after which good trade is confidently expected if the crops bring average and fair returns to the growers. Several correspondents tell us that one of the chief obstacles in the wholesaler’s path at present is the difficulty of securing first class credit data. They say that many retailers are unaware of their real financial status, and therefore applications for credit must be examined with great care. Data on collections show that conditions in that line are improving. One hundred and six wholesalers classified their collections for April as Good, Fair, Slow or Poor, and of these 72.6% classed them as either Good or Fair. In March 70.1 % of the reporting firms gave collections as Good or Fair, and in February the number so reporting was 56.9% of the total. The January figure was 6 1 . 1 % . W e give below the classi fied reports from one hundred and six firms for April, and for comparative purposes we have added the totals for January, February and M arch: Collections Reported A s Lines Sold Good Groceries .................................................................... D ry Goods .................................................................. Boots and S h o e s ....................................................... Hardware .................................................................... F u r n itu r e ...................................................................... April Totals March Totals . . . February Totals January Totals .. Fair 5 31 Slow 1^ o 13 1 12 o7 Poor 1 1 o 1 o 7 6 6 4 3 Total 44 15 19 18 10 7 7 9 70 26 3 106 75 57 30 5 117 8 61 43 33 7 (Compiled M ay 15 , 1922.) 11 113