Full text of Economic Quarterly (Federal Reserve Bank of Richmond) : November 1929

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MONTHLY

REVIEW

BUSINESS AND AGRICULTURAL CONDITIONS

WILLIAM W. HOXTON, CHAIRMAN AND FEDERAL RESERVE AGENT
RICHMOND, VIRGINIA
October trade in the Fifth Federal reserve district was
in good volume and showed seasonal advances in most
lines. There are troublesome spots in the district and
some industries are not doing as well as others, but fav­
orable factors are more numerous than unfavorable ones.
Member bank loans are lower than a year ago, and for
the first time in many months loans on securities are be­
low those outstanding twelve months earlier. Member
banks in the district are borrowing more from the reserve
bank than at this time last year, but the increase is in
country bank borrowing, chiefly for agricultural purposes.
Debits to individual accounts figures for five weeks ended
November 13th were not only seasonally larger than debits
in the preceding five weeks this year but were more than
8 per cent higher than debits for the corresponding period
last year, indicating that fall and winter trade is pro­
ceeding normally and probably in somewhat larger volume
than in 1928. Commercial failures in the Fifth district in
October were fewer than in any other October in six
years and the liabilities involved were the lowest for that
month in ten years. Labor is moderately well employed.
Coal production in October was in larger volume than in
October last year, and textile mills consumed more cotton
last month than in the same month in 1928, although the
situation in cotton manufacturing is still unsatisfactory.
Building provided for in October permits was in smaller
volume than a year ago in most of the cities of the dis­
trict, although more work in ten of them exceeded the de­
creases in the other twenty-three reporting cities and
brought the district total valuation slightly above that of
the October 1928 permits. On the whole, agricultural
returns in the district are better this year than last, with
cotton the only outstanding exception. The prospective
yield of cotton in the district is larger than last year’s
yield, but the price is sufficiently lower at present to re­
duce the cash returns below those realized for the 1928
crop. Tobacco farmers are faring better than cotton
growers, a moderately larger crop selling for slightly
higher prices this year in comparison with last year.
Fruit crops are generally smaller this year, but practically
all other crops compare favorably with those of 1928 in
both yield and price. The gain in money returns received
this year by potato growers in the Fifth district was per­
haps the most marked change in agricultural returns over
last year. Retail trade in the district in October was in
larger volume than in October last year, although sales
in the Carolinas did not come up to those of the earlier
month. Finally, wholesale trade averaged about the same
as in October 1928, some lines reporting increased and
some decreased sales, with no very marked change in
either direction.



NOVEMBER 30, 1929
RESERVE BANK OPERATIONS— During the month
between October 15th and November 15th, both this year,
rediscounts for member banks held by the Federal Reserve
Bank of Richmond fluctuated considerably, ranging from a
high point of $57,514,000 on October 19th to a low oi
$45,681,000 on November 6th, but at the end of the period
totaled $51,295,000 in comparison with $51,152,000 a month
earlier, a net change of only $143,000. Some of the other
items in the reserve bank’s statement changed more dur­
ing the month than rediscounts. Total earning assets rose
from $70,128,000 on October 15th to $72,131,000 on Novem­
ber 15th, due to increased holdings of bankers acceptances
purchased in the open market. A seasonal increase in the
circulation of Federal reserve notes from $84,688,000 to
$93,288,000 occurred during the month, a greater demand
for currency arising with the increased marketing of to­
bacco and cotton, and the approach of the holiday shop­
ping season. Member bank reserve deposits showed only
a daily fluctuation during the period under review, rising
from $62,089,000 last month to $62,395,000 at the middle
of November. The several changes mentioned, with others
of less importance, raised the cash reserves of the Fed­
eral Reserve Bank of Richmond from $87,444,000 at the
middle of October to $92,995,000 on November 15th, and
also increased the ratio of reserves to note and deposit
liabilities combined from 58.02 per cent to 58.89 per cent.

A comparison of the figures on the statement of the
Federal Reserve Bank of Richmond for November 15,
1929, with those reported a year ago, November 15, 1928,
shows some greater changes than occurred last month.
Rediscounts for member banks rose $8,859,000 during the
year, but total earning assets increased only $431,000, the
increase in rediscounts being approximately balanced by a
reduction in the bank’s holdings of bankers acceptances.
An increase of $13,722,000 in the circulation of Federal
reserve notes occurred during the year, part of this rise
probably being due to exceptional circumstances in con­
nection with the introduction of new, small size currency.
Member bank reserve deposits declined $5,811,000 between
November 15, 1928, and November 15, 1929, part of this
being due to withdrawals from the System of banks merg­
ing with others under conditions which prevented them
retaining membership. The cash reserves of the Federal
Reserve Bank of Richmond rose $9,385,000 during the past
year, and the ratio of cash reserves to note and deposit
liabilities combined increased 3.20 points.

CONDITION OF SIXTY-ONE REPORTING MEMBER BANKS IN SELECTED CITIES
ITEMS

Nov. 13, 1929

Oct. 16, 1929

Nov. 14, 1928

Loans on Stocks & Bonds (including Governments).......
All Other Loans & Discounts...........................................
Total Loans & Discounts...........................................
Total Investments in Bonds & Securities........................
Reserve Balance at Federal Reserve Bank......................
Cash in Vaults................................................. ...................
Net Demand Deposits..........................................................
Time Deposits ....................................................................
Borrowed from Federal Reserve Bank..............................

$188,767,000
328,407,000
517.174.000
156.551.000
40.596.000
13.005.000
352.459.000
241.376.000
25.736.000

$200,647,000
320,983,000
521.630.000
157.932.000
40.657.000
12.245.000
353.505.000
245.051.000
25.035.000

$189,018,000
334,193,000
523.211.000
153.947.000
41.488.000
12.599.000
365.764.000
243.460.000
26.311.000

The table shown above gives the principal items of condition of sixty-one regularly reporting
member banks in the Fifth reserve district as of three dates, thus affording an opportunity for com­
parison of the latest available figures with those of the corresponding dates a month and a year earl­
ier. It should be understood that the figures in the table reflect conditions as of the report dates
only, and are not necessarily the highest or lowest figures that occurred during the interval be­
tween the dates.
Comparison of the November 13, 1929, figures with those reported on October 16th this year
and on November 14th last year show some interesting changes, the most significant probably being
the decline of $11,880,000, or 5.9 per cent, in loans on stocks and bonds during the past month. For
the first time in many months, loans secured by stocks and bonds are lower than on the correspond­
ing date a year earlier. All other loans, which are chiefly commercial at this season of the year,
rose $7,424,000 during the period between October 16th and November 13th, but on the last named
date were $5,786,000 below the total outstanding on November 14, 1928. Total loans on November
13th were $4,456,000 less than a month earlier and $6,037,000 below those of a year ago. Investments
in bonds and securities declined $1,381,000 last month, but at the middle of November aggregated
$2,604,000 more than on the corresponding date in 1928. Aggregate reserve balances of the reporting
banks at the Federal Reserve Bank of Richmond on November 13, 1929, were $61,000 less than a
month earlier and $892,000 less than a year ago. Cash in vaults rose $760,000 last month, a seasonal
development, and on November 13th was $406,000 above cash in vaults last year. Net demand de­
posits declined slightly between the middle of October and the middle of November, dropping $1,046,000, but during the past year there was a decline of $13,305,000. Time deposits also decreased
last month, by $3,675,000, and on November 13th totaled $2,084,000 less than a year ago. Borrowing
by the reporting banks from the Federal Reserve Bank of Richmond showed little change for the
three dates under comparison, rising by $701,000 during the past month but on November 13th being
$575,ooo lower than on November 14, 1928.
DEBITS TO INDIVIDUAL ACCOUNTS
CITIES

TOTAL DEBITS DURING THE FIVE WEEKS ENDED
November 13, 1929

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.......................................

27,496,000
535,363,000
33,900,000
50,361,000
72,974,000
29,525,000
13,178,000
16,568,000
34,648,000
29,202,000
31,588,000
13,374,000
29,426,000
23,646,000
12,516,000
76,722,000
6,761,000
34,353,000
191,542,000
40,718.000
22,396,000
333,624,000
23,618.000
57,110,000

District Totals ...............................................

$1,740,609,000

Asheville, N. C.................................................
Baltimore, Md....................... ..........................
Charleston, S. C...............................................
Charleston, W. Va............................................
Charlotte, N. C................................................
Columbia, S. C.................................................




$

2

October 9, 1929
$

38,472,000
521,054,000
30,971,000
47,552,000
66,289,000
27,875,000
12,570,000
10,343,000
33,085,000
28,662,000
24,598,000
13,633,000
27,429,000
26,195,000
12,649,000
73,214,000
4,863,000
24,368,000
177,016,000
40,149,000
15,816,000
326,196,000
19,090,000
51,132,000

$1,653,221,000

November 14, 1928
$

30,843,000
452,933,000
30,300,000
45,606,000
69,877,000
29,344,000
11,642,000
15,916,000
41,440,000
29,756,000
29,945,000
12 ,120,000
25,562,000
24,090,000
12,404,000
80,714,000
6,404,000
28,539.000
179,827,000
32,920,000
21,650,000
321,248,000
23,918,000
49,603,000

$1,606,601,000

Debits to individual, firm and corporation accounts in clearing house banks in twenty-four of the
leading cities of the Fifth Federal reserve district are shown in the accompanying table for three
equal periods of five weeks, the latest available figures being shown in comparison with the figures
for the preceding period this year and the corresponding period a year ago. Debits figures show
all checks charged to depositors’ accounts, and include all items passing through the clearing house,
checks cashed over the counter by or deposited in the banks upon which drawn, and payroll checks,
and therefore are a fairly accurate barometer of the volume of business passing through the report­
ing banks.
A comparison of the total of $1,740,609,000 in debits reported for the five weeks ended November
13, 1929, with the total reported for the preceding five weeks, ended October 9th this year, shows
an increase of $87,388,000, or 5.3 per cent, a somewhat larger increase than occurred during the cor­
responding period in any of the past five years. All of the twenty-four reporting cities showed higher
figures for the more recent period except four, and of these four decreases two were very small.
In comparison with total debits reported for the five weeks ended November 14, 1928, those
reported for the corresponding period ended November 13, 1929, showed an increase of $134,008,000,
or 8.3 per cent. Eighteen of the twenty-four cities reported higher figures this year, only six cities
falling below their 1928 totals. Four of the six cities which compared unfavorably with last year are
in North Carolina, and two are in Virginia. All of the larger cities except Norfolk reported higher
figures for the 1929 period than for the corresponding five weeks last year.
SAVINGS DEPOSITS—Deposits in twelve mutual savings banks in Baltimore aggregated $189,687,177 at the close of business October 31, 1929, a higher figure than either $189,193,610 on Septem­
ber 30, 1929, or $186,476,148 on October 31, 1928. Time deposits in sixty-one regularly reporting
member banks on November 13th totaled $241,376,000, compared with $245,051,000 on October 16th
this year and $243,460,000 on November 14th last year. A considerable part of the decrease in time
deposits in reporting member banks between October 16th and November 13th was due to the trans­
fer of Christmas Savings Funds from time to demand deposits on or about November 1st.
COMMERCIAL FAILURES—The business mortality record of the Fifth reserve district in Oc­
tober was favorable, 91 insolvencies with liabilities aggregating $1,066,027 having been reported by
R. G. Dunn & Co. The number of insolvencies was greater last month than in the shorter month
of September, an increase in October which occurred in seven of the past ten years, but was less
than the number reported for any other October since 1923 and 1922, when the same number was
shown. October 1929 liabilities were the lowest for that month of the year since 1919, and in ad­
dition were the lowest for any month except September 1923 since August 1920.
EMPLOYMENT— Labor is seasonally employed in the Fifth reserve district, and there does not
appear to be any large surplus of workers at any point, although there is some unemployment in
most of the cities. The industries of the district are using their usual quotas of workers, but some
of the textile mills are beginning a program of curtailment of operations to four days a week, thus
reducing the pay envelopes of their employees. Miners in West Virginia are seasonally busy, and as
a rule workers in building trades are able to find employment, although the amount of construction
under way is less than at this time in recent years. The tobacco industry is running full time and is
growing in the Fifth district, but the labor used in tobacco factories is in the main composed of
women and girls, few heads of families being employed. Fall weather has been suitable for har­
vesting and other farm work, and farm labor has consequently been more steadily employed than
in years when conditions were less favorable.
COAL—Bituminous coal mines in the United States dug 51,235,000 net tons of coal in October
this year, an increase over 44,515,000 tons mined in September 1929 and 51,176,000 tons in October
1928. West Virginia, the leading state, produced approximately 13,458,000 tons last month, or 26
per cent of National production. Total output of bituminous mines in the United States during the
present calendar year to November 9th (approximately 266 working days) amounts to 447,639,000 net
tons, compared with 417,253,000 tons mined to the same date last year and 448,422,000 tons in 1927.
Shipments of coal through Hampton Roads in October totaled 2,002,161 tons, and total shipments
from January 1st through October 31st totaled 18,279,659 tons. Retail coal yards have stocks to meet
all requirements, and price advances since the beginning of fall have in many cases been less than
in most recent years, the spread between retail prices at midsummer and mid-November being ap­
proximately $1.00 per ton.
TEXTILES —Cotton cloth and yarn mills in the Fifth district ran full time in October, but
around the middle of November a policy of curtailment was adopted by some mills, operating time
being reduced to four days per week. The movement has not become general as yet, and it re­
mains for the future to show how extensive the reduction will be. Fifth district textile mills con­
sumed 274,414 bales of cotton in October, of which North Carolina mills used 147,834 bales, South
Carolina mills 115,183 bales, and Virginia mills n , 397 bales. Consumption in the Fifth district tot­



3

aled 239,909 bales during the shorter month of September 1929 and 271,094 bales in October last
year. Fifth district cotton consumption in October 1929 totaled 42.82 per cent of National con­
sumption, compared with 43.97 per cent in September 1929 and 43.81 per cent in October 1928.
BUILDING OPERATIONS FOR THE MONTHS OF OCTOBER 1929 AND 1928.
Permits Issued

0

CITIES

z

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
33

New
1929 1928

Repairs
1929

1928

New Construction
1928

1929

Alterations
1929

1928

389 1,379 1,238 $ 2,559,960 $ 1,720,100 $ 661,320 $ 622,000
Baltimore, Md..... 403
5,729
1,950
17
8
7
Cumberland, Md...
10
17,786
44,165
4
9
5,535
13
Frederick, Md.....
6
6,703
39,820
470
24
16
2,000
45,225
Hagerstown, Md...
3
16
21,720
25,950
19
35
15
17,050
7,350
34
42,925
Salisbury, Md.....
61,610
12
27
13
9
4,550
2,370
3,073
Danville, Va.........
51,635
16
22
29
28
47,575
10,928
11,080
Lynchburg, Va....
120,780
70
84
58
89.376
58,985
98
93,838
Norfolk, Va.
425,500
9
7
4
3,550
55,650
10
179,050
Petersburg, Va.....
61,450
17
27
29
37
19,038
21,090
233 320
21,950
Portsmouth, Va...
77
90
226,752
80
73
316,434
43,923
Richmond, Va......
277,087
42
54
20.054
18
24
131,173
9,680
Roanoke, Va........
145,805
9
5
4
6,440
Bluefield, W. Va...
5
9,295
1,615
3,780
69
57
30
Charleston, W. Va.
11
86,515
78,750
149,277
176,185
15
35
10
15
26,209
5,625
6,560
Clarksburg, W. Va.
55,368
Huntington, W. Va.
30
37
6
4,500
5
53,105
60.030
2,000
24
8
9
Parkersburg, W. Va....
8
10,020
16,150
69,350
8,600
29
5
40
43
8.575
Asheville, N. C......
31.245
171,790
21,519
90
71
Charlotte, N. C....
63
36
175,540
427,386
59.262
37,545
14
55
10
2
Durham, N. C. ...
117,156
206,200
32.372
1.200
22
48
33
46
Greensboro, N. C.
68,385
13.444
351,706
11.843
37
9
High Point, N. C...
13
7
47.000
170,400
4.250
4370
12
33
10
Raleigh, N. C.......
18
38.430
136,100
3.375
14,995
14
17
1
6
Rocky Mount, N.C.
15,305
23,385
3,500
3,575
1
4
3
Salisbury, N. C....
6
275
9,925
6,585
4,400
14
16
Wilmington, N. C...
17
7
30,200
41,600
13,650
20,100
Winston-Salem, N. C._
35
97
88
102
866.295
270,090
32,794
17,707
21
25
44
Charleston, S. C...
24
78.490
196.025
8,588
19,624
Columbia, S. C.
11
20
70
64
160,900
60 300
19,485
18,365
16
Greenville, S. C.
11
36
49,085
39
82,900
9,008
10,435
12
Rock Hill, S. C.....
8
10
13
56,265
24,000
18,432
3,320
16
19
Spartanburg, S. C.
44
32
55,175
46,390
4.625
9,850
Washington, D. C. 343
203
185
546 2,618.195
2,519,415
448.510
385 605
Totals............. 1,446 1,631 2,396 2,614 $ 8,111,053 $ 8,270,197 $1,896,449 $1,563,200

Increase or Per Cent
of
Decrease
of
Increase
Total
or
Valuation Decrease
37.5#
$ 879,180
— 22,600 — 49.0
40,518 674.7
— 47,455 — 66.7
—
8,985 — 13.0
— 47,788 — 87.4
— 73,357 — 55.6
—
301,271 — 62.2
65,500
55.9
— 213,422 — 83.9
222,176
69.2
—
4,258 — 2.7
10,340
191.7
—
19,143 — 7.5
— 30,094 — 48.6
—
4,425 — 7.1
— 51,780 — 66.4
— 153,489 — 79.4
— 230,123 — 49.5
— 57,878 — 27.9
— 281,720 — 77.5
—
123,520 — 70.7
—
109,290 — 72.3
—
8155 — 30.2
—
11,835 — 71.7
—
4.950 — 9.0
581,118
191.9
—
106,499 — 52.0
99,480
124.7
—
35,242 — 37.8
47,377
173.4
14,010
27.5
161,685
5.6
174,105
1.8#
$

Z,
~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
33

— Denotes decrease.
NOTE— The figures in the above table reflect ftie amount of work provided for in the corporation limits of the
several cities, but take no account of suburban developments.

Building permits issued by inspectors in thirty-three leading cities in the Fifth reserve district
during October were less numerous than in October 1928, but aggregate valuation figures for all
classes of work were 1.8 per cent greater than last year. However, this increase was entirely due
to substantially larger 1929 figures in Baltimore, Richmond, Winston-Salem and Washington. Only
ten of the thirty-three cities reported larger figures for October 1929 than for October 1928, these
being, in addition to the four already named, Frederick, Md., Petersburg, Va., Bluefield, W. Va., and
Columbia, Rock Hill and Spartanburg, S. C. In proportion to population, Winston-Salem with per­
mits totaling $884,000 made the best record of the month.
Contracts awarded in October for construction work in the Fifth district, including both rural
and urban projects, totaled $25,600,760, compared with $40,328,757 awarded in October 1928, accord­
ing to figures collected by the F. W. Dodge Corporation. Of the awards in October this year, $8,652,055 was for residential work.
COTTON STATISTICS—Cotton prices on the leading Southern markets continued to decline be­
tween the middle of October and the middle of November, falling from an average of 17.22 cents
per pound for middling, short staple upland cotton on October 18th to 16.71 cents per pound on
November 15th. The November 15th price was nearly $9 a bale below the price on the same date
last year.
The Department of Agriculture’s fourth condition report of the year, issued on November 8th,
estimated this year’s production of cotton as 15,009,000 bales, an increase of 94,000 bales over the
forecast for October ist this year and 531,000 bales above final ginning figures on the 1928 crop.
The report pointed out that the final yield of cotton would depend on weather conditions during the
balance of the season, but on the whole these conditions appear to have been favorable in November.



4

North Carolina’s probable production for 1929 was given in the latest estimate as 760,000 bales, a
materially lower figure than 835,000 bales forecast a month earlier and 836,000 bales ginned in 1928.
South Carolina’s forecast of 850,000 bales this year shows a decline from 860,000 bales predicted a
month earlier but is larger than final ginnings of 726,000 bales last year. The Virginia yield for 1929
is forecast as 44,000 bales, compared with 46,000 bales expected on October ist and 44,000 bales
grown last year. Total production for the Fifth district is therefore expected to be about 50,000
bales larger this year than in 1928, but all of the increase is in South Carolina, and in the Piedmont
section of that state November weather has been too wet for cotton picking and ginning. In spite of
the larger yield this year, prices have been so much lower that the total receipts from cotton will be
less than receipts for the shorter crop of 1928.
The Bureau of the Census ginning report to November ist showed 10,889,314 bales ginned prior
to that date, compared with 10,162,482 bales ginned to the same date in 1928. Dry weather caused
cotton to open very rapidly.
Cotton consumption in American mills in October totaled 640,798 bales, according to the report
of the Census Bureau made public on November 14th. This figure shows a seasonal increase above
545,649 bales consumed during the shorter month of September this year, and is approximately 4 per
cent above 616,238 bales consumed in October 1928. Total consumption during the three months
of the present cotton year amounted to 1.744,560 bales, compared with 1,634,885 bales consumed dur­
ing the three months ended October 31, 1928. Cotton on hand at manufacturing establishments on
October 31st this year totaled 1,360,557 bales, compared with 792,028 bales held on September 30th
this year and 1,195,770 bales held on October 31st last year. Bales in public warehouses and com­
presses numbered 5,311,920 at the end of October, 3,224,859 at the end of September, and 4,632,109
on October 31, 1928. Exports of cotton totaled 1,251,300 bales in October, compared with 725,876
bales sent abroad in September this year and 1,240,702 bales in October 1928. Imports last month
totaled 19,815 bales, compared with 23,974 bales imported in September this year and 27,840 bales
in October last year. Consumption of cotton in the growing states totaled 489,897 bales in October,
compared with 471,357 bales used in October last year. Last month’s consumption in the cotton
growing states amounted to 76.45 per cent of National consumption, compared with 76.49 per cent
of National consumption used in the cotton growing states in October last year.
TOBACCO MARKETING—North Carolina tobacco markets sold 138,606,781 pounds of growers’
tobacco in October 1929, at an average price of $19.91 per hundred pounds. These figures compare
with 142,564,950 pounds sold for an average of $20.45 Per hundred in October 1928, a decrease in cash
returns of approximately $1,500,000 for the month’s sales. Total sales this season of 278,175,860
pounds show a decrease from 279,300,186 pounds sold in 1928 before November ist, and production
for 1929 is expected to turn out somewhat less than the crop of 1928. Wilson led the North Caro­
lina markets in October in both sales and price, with 25,942,410 pounds auctioned for an average of
$22.39 Per hundred. Greenville ranked second in sales with 16,836,456 pounds, but Farmville was sec­
ond in price with an average of $21.97 Per hundred pounds. Virginia leaf tobacco markets sold
22,951,030 pounds in October, at an average price of $17.19 per hundred pounds. Last year the October
sales amounted to 22,542,741 pounds at an average of $16.25 per hundred. > October sales consisted
entirely of the flue-cured type as the other markets did not open until November. Danville led all
markets with total sales of 10,988,852 pounds, South Boston being second with 4,575,296 pounds.
Petersburg led in price in October at $19.54, and Lawrenceville was second at $18.07 Per hundred, but
neither market sold much tobacco. The quality of Virginia’s tobacco this year is better than in 1928,
and this year’s crop is forecast at 120,930,000 pounds compared with only 104,894,000 pounds raised last
year. With better prices this year, due entirely to higher quality, and a larger yield, Virginia to­
bacco farmers are more fortunately situated than they were a year ago, in contrast to the North Caro­
lina growers who are selling a smaller crop for prices averaging slightly lower than in 1928. South
Carolina markets have closed for the season with total sales of about 78,000,000 pounds, approximately
5,000,000 pounds more than total sales in 1928. Including South Carolina grown tobacco sold over
the line at North Carolina markets, the state is expected to produce approximately 84,989,000 pounds
this year, compared with 82,288,000 pounds produced last year. Average prices were somewhat higher
in South Carolina this year, and growers received around two and a quarter million dollars more for
the 1929 crop than for that of 1928.
AGRICULTURAL NOTES—Maryland farming conditions are reported satisfactory and farmers
are well up with the seasonal work. The corn crop turned out around 20 per cent below 1928 in
quantity, but the quality was high and the weather was favorable for husking and housing. Potato
yields were below normal, but the crop was high in quality and brought a good price. The apple
crop was somewhat smaller than in 1928, and scab and scale infestation in some sections of the state
lowered the quality of the fruit. Wheat seeding was done under favorable conditions and the crop is
going into winter in good shape. Rains around November ist gave the young plants a good start.
Fall pastures have been good.



5

Virginia crops on the whole yielded better than was expected from early season prospects, al­
though most crops produced smaller yields than in 1928. This year’s prices have averaged higher,
however, and the total returns from 1929 farm operations will probably exceed returns for 1928. The
corn crop turned out above early estimates, September rains and a late growing season proving bene­
ficial. Total production is estimated to be 44,312,000 bushels, which is slightly less than last year’s
crop but somewhat above the five-year average. The sweet potato crop turned out better than was
expected, especially on the Eastern Shore where more than one-half of the crop is grown. Shipments
from that section to November 3rd amounted to 5,934 cars, compared with 4,994 cars shipped to the
same date in 1928. Prices received by commercial growers have averaged higher than last year.
The estimated production of sweet potatoes this year is 6,394,000 bushels, compared with 6,336,000
bushels in 1928. Late white potatoes varied widely in yield, ranging all the way from 30 to 200
bushels per acre. On the whole, however, the yield per acre was higher than last year, and the crop
of 1929 is estimated to be 16,750,000 bushels. This is less than the big crop of 1928, but the acreage this
year was also much smaller. Peanuts had not been threshed before November 1st, and therefore
growers could not give accurate figures on production, but the state is expected to show about 145,600.000 pounds, a larger yield than last year’s and also materially above the five-year average. The
commercial apple crop of Virginia is expected to be 3,100,000 barrels this year, an increase of about
10 per cent over the estimate made on October 1st. Carlot shipments of 10,482 cars to November 2nd
indicate that total shipments this season will be about 17,000 cars. Last year 20,281 cars were shipped.
The quality of the apple crop was poorer this year than usual.
North Carolina crops, except cotton, turned out better than had been anticipated, due largely to
the favorable weather for late development and harvesting. The corn crop turned out unusually
well, peanuts were fair to good, and sweet potatoes were the best for several years. Cotton sections
of the state are hard hit except from Mecklenburg north and westward, according to the Agricultural
Statistician. Recent seasons have been good for fall preparation of land and planting of small grains.
South Carolina reports reasonably good yields in the state for all important crops harvested this
fall. In point of production this year is slightly above the average amount produced from 1921 to
1928, inclusive. The corn crop of 23,321,000 bushels about equals average production for the past five
years, and is more than 6,000,000 bushels above the short crop of last year. The sweet potato crop is
the largest of recent years. The estimate of 5,355,000 bushels compares with 4,212,000 bushels last
year and a five-year average of 4,888,000 bushels. The reported yield of 105 bushels per acre has
been equalled in three previous years but has never been exceeded, according to available records.
Peanut production in South Carolina is estimated to be 7,500,000 pounds this year, compared with
6.900.000 pounds last year. The reported yield of 750 pounds per acre is 60 pounds better than the 1928
yield. As stated elsewhere in this Review, the cotton and tobacco crops in South Carolina are larger
this year than in 1928.
West Virginia crops in aggregate production fell somewhat below the 1928 production. All grain
crops, except wheat and rye, suffered from lack of sufficient rainfall and consequently lighter yields
were reported. Fruit crops likewise were adversely affected by drought. The corn crop of 14,458,000
bushels is approximately 2,000,000 bushels less than the 1928 yield. In addition, the quality of corn
harvested this year is poorer than last year. The white potato yield of 6,555,000 bushels is better than
was expected earlier in the season and also above the five-year average, but is about 1,000,000 bushels
below last year’s record crop. However, the quality of this year’s potatoes is poorer than the crops
of the three preceding years. A sweet potato yield this year of 240,000 bushels in better than the
1928 production but materially below the five-year average. The 1929 quality is also better than
last year’s quality. West Virginia’s tobacco crop of 7,362,000 pounds is about 2,250,000 pounds above
the 1928 crop. Apple production of 5,320,000 bushels this year compares unfavorably with 8,750,000
bushels harvested last year, and the 1929 commercial crop of 1,320,000 barrels is less than 1,470,000
barrels sold from the 1928 crop.
WHOLESALE TRADE, OCTOBER 1929
Percentage increase in October 1929 sales, compared with sales in October 1928:
27 Groceries
10 Dry Goods
5 Shoes
15 Hardware
12 Drugs
— .2
— .4
11.5
— 2.7
1.6
Percentage increase in October 1929 sales, compared with sales in September 1929:
10.1
— 10.8
— 9.8
5.8
12.2
Percentage increase in total sales since Jan. 1, 1929, compared with sales in the first ten months of 1928:
— 2.8
— 5.0
— 1.4
— 1.9
.9
Percentage increase in stock on Oct. 31, 1929, compared with stock on Oct. 31, 1928:
...............
10.0(10*)
— 14.5(4*)
— 8.7(4*)
— 1.9(8*)
Percentage increase in stock on Oct. 31, 1929, compared with stock on Sept. 30, 1929:
12.8(10*)
— 2.9(4*)
1.4(4*)
.6(8*)
...............
Percentage of collections in October to accounts receivable on October 1, 1929:
68.3(17*)
39.3(7*)
38.7(5*)
38.3(12*)
58.2(9*)
* Number of reporting firms.

— Denotes decreased percentage.



6

Sixty-nine wholesale firms representing five leading lines sent reports on October business to the
Federal Reserve Bank of Richmond. The reports from grocers show a seasonal increase in October
sales over those reported for September, but a very small decrease in comparison with October 1928
sales. Dry goods sales last month were materially less than sales in September but were only a small
fraction of 1 per cent below October 1928 sales. Shoe sales were less in October than in the pre­
ceding month, but exceeded October 1928 sales by a substantial margin. Both hardware and drug
sales were larger last month than in September, and drug sales also were above those of last year,
but hardware sales showed a moderate decline in comparison with October 1928. Total drug sales in
the first ten months of this year were slightly larger than sales in the corresponding period a year ago,
but grocery, dry goods, shoe and hardware sales this year were less than those in the first ten months
of 1928.
Stocks reported at the end of October were seasonally larger in firms selling groceries and allied
lines than on September 30th, and there were also small increases in wholesale shoe and hardware
stocks, but dry goods stocks declined during the past month, another seasonal occurrence. In com­
parison with stocks carried a year earlier, those on October 31st this year were larger in groceries,
but were smaller in dry goods, shoes and hardware.
The percentages of collections in October 1929 to accounts receivable on the first of the month not
only showed seasonal increases over September collections in all lines reported upon, but were slightly
better than the percentage attained in October 1928. Dry goods and shoes tied in amount of im­
provement with 1.6 per cent.
FIGURES ON RETAIL TRADE

As Indicated By Reports from Thirty Representative Department Stores tor the Month of October 1929
Percentage increase in October 1929 sales, compared with sales in October 1928:
Baltimore
Washington
Other Cities
District
6.5
4.4
2.0
4.9
Percentage increase in total sales since January 1st, over sales during the first ten months of 1928:
4.3
4.1
—
.7
3.4
Percentage increase in October 1929 sales over average October sales during the three years 1923-1925, inclusive:
2.0

22.2

—

2.2

8.7

Percentage increase in stock on hand October 31, 1929, over stock on October 31, 1928:
— 6.2
.1
— 4.8
— 3.6
Percentage increase in stock on hand October 31, 1929, over stock on September 30, 1929:
15.4
11.2
9.2
12.5
Percentage of sales in October 1929 to average stock carried during that month:
33.9
36.1
23.9
32.7
Percentage of total sales since January 1st to average stock carried during each of the ten elapsed months:
273.5
284.7
214.3
265.7
Percentage of collections in October 1929 to total accounts receivable on October 1st:
25.0
31.3
32.9________________________ 284____________
— Denotes decreased percentage.

Figures on retail trade in October reported by thirty leading department stores in the Fifth
Federal reserve district show a good volume of fall trade, average sales being 4.9 per cent larger than
sales by the same stores in October 1928 and 8.7 per cent above average October sales during the
three years 1923-1925, inclusive. Total sales this year from January 1st through October were 3.4 per
cent larger than sales in the first ten months of 1928. Baltimore stores led in percentage increase for
both October and the first ten months of the year, but Washington stores led in gain over average
October sales in the three years 1923-1925, chiefly due to store expansion in that city.
Although the reporting stores show larger sales this year, they are operating with stocks averag­
ing 3.6 per cent below those of last year, but there was a seasonal increase of 12.5 per cent in stock
carried last month. Larger sales and smaller stocks indicate a faster turnover this year, and the ac­
companying table shows that the stores turned their stock 2.657 times in ten months, compared with
2,529 times in the same period a year ago. Washington stores lead in turnover with an average of
2.847 times.
Collections in October averaged 28.4 per cent of receivables as of October 1st, a slightly lower
figure than 28.9 per cent collected in October 1928, but the Baltimore and Other Cities stores improved
slightly, the district average being brought below last year’s average by a decline of slightly more
than 2 per cent in Washington collections.




(Compiled November 21, 1929)

7

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

Industrial production declined further in October, and there was also a decrease in factory em­
ployment. As compared with a year ago, industrial activity continued to be at a higher level, and
distribution of commodities to the consumer was sustained. Bank credit outstanding increased rapidly
in the latter part of October, when security prices declined abruptly and there was a large liquidation
of brokers’ loans by nonbanking lenders. In the first three weeks of November further liquidation of
brokers’ loans was reflected in a reduction of security loans of member banks. Money rates de­
clined throughout the period.
PRODUCTION. Production in basic industries, which had declined for several months from the
high level reached in midsummer, showed a further reduction in October. The Board’s index of in­
dustrial production decreased from 121 in September to 117 in October, a level to be compared with
114 in October of last year. The decline in production reflected chiefly further decreases in output
of steel and automobiles. Daily average output of shoes, leather and flour also declined, while pro­
duction of cotton and wool textiles increased. Preliminary reports for the first half of November in­
dicate further reductions in output of steel and automobiles, and a decrease in cotton textiles. Total
output of minerals showed little change. Production of coal increased, and copper output was some­
what larger, while daily output of crude petroleum declined slightly for the month of October and
was further curtailed in November. Volume of construction, as measured by building contracts award­
ed, changed little between September and October and declined in the early part of November.
DISTRIBUTION. Shipments of freight by rail decreased slightly in October and the first two
weeks in November, on an average daily basis. Department store sales continued as in other recent
months to be approximately 3 per cent larger than a year ago.
WHOLESALE PRICES. The general level of wholesale prices showed little change during the
first three weeks of October, but in the last week of the month declined considerably. The decline
reflected chiefly price reductions of commodities with organized exchanges, which were influenced by
the course of security prices. During the first three weeks of November prices for most of these
commodities recovered from their lowest levels. Certain prices, particularly those of petroleum, iron
and steel, and coal, showed little change during the period.
BANK CREDIT. Following the growth of $1,200,000,000 in security loans by New York City
banks during the week ending October 30th, when loans to brokers by out-of-town banks and non­
banking lenders were withdrawn in even larger volume, there was a liquidation of these loans, accom­
panying the decline in brokers’ loans during the first three weeks of November. All other loans in­
creased and there was also a growth in the banks’ investments. Reserve bank credit, after increas­
ing by $310,000,000 in the last week of October, declined by about $120,000,000 in the following three
weeks. On November 20th discounts for member banks were about $100,000,000 larger than four
weeks earlier, and holdings of United States securities were $190,000,000 larger, while the banks’ port­
folio of acceptances declined by $100,000,000. Money rates in New York declined rapidly during
October and the first three weeks in November. Open market rates on prime commercial paper de­
clined from 6% per cent on October 22nd to sVz-SH Per cent on November 20th; during the same
period rates on 90-day bankers’ acceptances declined from 5 ^ per cent to 3% per cent; rates on call
loans were 6 per cent during most of this period, but declined to 5 per cent in the third week of
November. Rates on time loans also declined. The discount rate of the Federal Reserve Bank of
New York was lowered from 6 to 5 per cent, effective November ist, and to 4^2 per cent, effective
November 15th, and the discount rates of the Federal Reserve banks of Boston and Chicago were
lowered from 5 to 4% per cent effective November 21st and November 23rd.




8