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MONTHLY REVIEW
CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS

WILLIAM W. HOXTON, Chairman and F e d e ra l R eserve A gent

FEDERAL RESERVE BANK OF RICHMOND
RICHMOND, VIRGINIA

NOVEMBER 30, 1933

LADE expanded seasonally in the
although unusually warm weather in
FIFTH FEDERAL RESERVE DISTRICT October retarded buying to an appre­
Fifth Federal reserve district in
October, and in addition there was im­
ciable degree. Collections in retail
provement in several basic factors
stores improved distinctly during Oc­
tober in comparison with September,
which was not due to seasonal influ­
ences. In banking, rediscounts for
but were still a little slower than in
member banks at the Federal Reserve
October last year. Wholesale trade
Bank of Richmond declined further
last month was in larger volume than
between the middle of October and the
in October 1932 in all five lines for
middle of November, and Federal re­
which figures are available, the in­
serve notes in actual circulation in­
creases in dry goods and hardware be­
creased seasonally, but somewhat less
ing especially notable, and wholesale
than in most years at the same time.
collections were better than collections
Reporting member banks in the larger
a year ago in every line reported upon.
cities slightly increased their loans
Perhaps the most marked improvement
during the past month, and also in­
in basic conditions in the Fifth district
creased their investments in securities.
is in cotton and tobabcco growing sec­
Demand deposits increased more than the rise in loans, tions. In spite of a greatly reduced acreage this year,
while time deposits changed very little. Debits to in­ cotton production in the Carolinas and border counties
dividual accounts figures in four weeks ended Novem­ of Virginia exceeded production in 1932, and the price
ber 8 showed a smaller than seasonal decrease in com­ this year has been sufficiently improved to add in the
parison with debits in the preceding four weeks, and neighborhood of fifteen million dollars to the income
in nearly all cities materially exceeded debits in the of cotton growers in the three states. The tobacco
corresponding four weeks last year. The number of crop of the district is between 75 and 80 per cent larger
business failures in the Fifth district in October was than the crop of 1932, and prices this year are also
lower than in any other October in the past thirteen about 20 per cent or more above prices last year. The
years, and liabilities were the lowest for any month growers will probably receive at least twice as much
since June 1920. Employment statistics are difficult for their 1933 tobacco as for their 1932 crop. Farmers
to secure, but all indications point to material improve­ are well supplied with feed and grain crops this year,
ment in this field in recent weeks. Coal production in and hay yields were good. Weather was favorable for
October increased seasonally over September produc­ harvesting all crops, and preparations for fall plant­
tion. Textile mills operated at a reduced rate in Octo­ ing of grain is well advanced in most of the district.
ber in comparison with both September this year and
October last year, but this was chiefly due to unusual Reserve Bank Statement
Total earning assets of the Federal Reserve Bank
activity in July and August, which anticipated future
requirements to some extent. Building operations pro­ of Richmond rose by $2,512,000 between the middle
vided for last month by permits issued and contracts of October and the middle of November. Rediscounts
awarded lagged behind most industrial and trade lines, for member banks declined by $2,098,000 during the
but plans are shaping up for a large volume of con­ month, but the portfolio of open market paper rose by
struction work in the near future, much of it designed $250,000, and the Bank increased its holdings of Gov­
primarily to furnish employment. Retail trade as re­ ernment securities by $4,360,000. Federal reserve note
flected in department store sales exceeded the volume circulation increased seasonally during the past month,
of trade in October last year in most of the district, rising by $2,851,000, and member banks further in-

r




MONTHLY REVIEW

2

000 omitted
ITEMS

Nov. 15
1933

Oct. 15 Nov. 15
1933
1932

Rediscounts held __________ $ 6,818 $ 8,916
Open market paper------------242
492
74,203
Government securities ...........
78,563
Total earning assets_____
83,361
85,873
Circulation of Fed. Res. notes 149,697 146,846
70,856
Members* reserve deposits---80,536
Cash reserves -----------------166,601 154,158
67.03
69.55
Reserve ra tio _____________

$ 18,310
1,945
47,133
67,388
100,889
49,006
96,794
62.20

creased their reserve balances at the reserve bank, rais­
ing them by $9,680,000 between October 15 and No­
vember 15. Member bank reserves are far in excess
of legal requirements. The several changes mentioned
in the statement with others of less importance, raised
the cash reserves of the Federal Reserve Bank of Rich­
mond by $12,443,000 between the middle of October
and the middle of November, and increased the ratio
of reserves to note and deposit liabilities combined by
2.52 points.
In comparison with condition figures reported on
November 15, 1932, the corresponding figures for No­
vember 15, 1933, show material changes in nearly all
items. Total earning assets of the Richmond reserve
bank rose by $18,485,000 during the year, due entirely
to an increase of $31,430,000 in holdings of Govern­
ment securities which more than offset decreases of
$11,492,000 in rediscounts for member banks and $1,453.000 in the portfolio of open market paper. Fed­
eral reserve note circulation at the middle of November
this year exceeded the circulation a year earlier by
$48,808,000. Member bank reserve deposits rose by
$31,530,000 during the past year, due to excess reserves
now being carried by member banks at the reserve
bank. The several changes in the statement resulted
in an increase in total cash reserves amounting to $69,807.000 between November 15, 1932, and November
15, 1933, and caused a rise of 7.35 points in the ratio
of note and deposit liabilities combined.

Member Bank Statement
000 omitted
ITEMS

Nov. 15
1933

Oct. 11
1933

Nov. 16
1932

ing opportunity for comparison of the latest available
figures with those a month and a year earlier. It should
I be understood that the figures in the table are not
| necessarily the highest or lowest figures that occurred
• during the periods under review.
j The twenty-eight reporting member banks increased
! their loans by $2,157,000 between October 11 and No• vember 15, both this year, a seasonal rise in “all other
j loans’’ amounting to $3,778,000 more than balancing a
i decline of $1,621,000 in loans on securities. In banks
! in the larger centers, borrowing by merchants to disj count bills for fall merchandise at this season usually
j exceeds liquidation of indebtedness by farmers as a
| result of marketing of agricultural products. Invest! ments in securities, chiefly Government obligations, rose
j by $1,546,000 during the past month. The reporting
I banks slightly reduced their reserve balance at the rej serve bank between October 11 and November 15, but
| the decrease was merely a daily fluctuation due to clear| ing operations. Cash in vaults declined by $190,000
| last month. Aggregate deposits rose during the period
| under review, an increase of $4,040,000 in demand de| posits more than offsetting a decrease of $423,000 in
I time deposits. The decline in time deposits is more
I than accounted for by transfer of Christmas Savings
i funds from time to demand deposits after November 1.
I Two of the twenty-eight reporting banks were borrow! ing a total of $246,000 at the Federal Reserve Bank of
Richmond on November 15, compared with one bank
j which was borrowing $124,000 on October 11.
I During the year between November 16, 1932, and
I November 15, 1933, total loans in the reporting memi ber banks decreased $5,324,000, of which $2,207,000
j was in loans on securities and $3,117,000 was in all
i other loans. Investments in securities rose by $29,441.000 during the year, and aggregate reserve balance
with the reserve bank increased by $12,275,000, the
reserve balance on the 1933 date being much larger
than actual requirements. Cash in vaults rose by $1,561.000 during the past year. Aggregate deposits in
the twenty-eight banks rose by $23,345,000 between the
middle of November last year and this year, a gain in
demand deposits amounting to $29,177,000 offsetting a
decline of $5,832,000 in time deposits. On November
16, 1932, three of the twenty-eight banks were borrow­
ing a total of $495,000 at the reserve bank, in compari­
son with two banks which were borrowing a total of
$246,000 on November 15, 1933.

Loans on stocks and bonds
(including Governments)— $ 59,835 $ 61,456 $ 62,042
118,065 114,287 121,182
All other loans-----------------Total loans and discounts..- 177,900 175,743 183,224
Investments in securities------ 161,227 159,681 131,786
17,502
29,991
Reserve bal. with F. R. Bank..
29,777
8,271
9,832
10,022
Cash in vaults--------------Demand deposits --------------- 191,624 187,584 162,447
Time deposits -----------------129,026 129,449 134,858
495
Borrowed from F. R. Bank....
124
246

Time and Savings Deposits

The accompanying table shows totals of the principal
items of condition reported by twenty-eight member
banks in ten leading cities of the Fifth Federal reserve
district as of three dates, November 15 and October
11, this year, and November 16, last year, thus afford­

Debits to Individual Accounts




Time deposits in twenty-eight reporting member
banks and aggregate deposits in eleven mutual savings
banks in Baltimore totaled $314,431,540 at the end of
October 1933, a higher figure than $313,944,813 re­
ported at the end of September this year, but material­
ly less than $342,216,553 reported at the end of Octo­
ber 1932.
The debits to individual, firm and corporation ac­
counts figures shown in the accompanying table for
three equal periods of four weeks include all checks

MONTHLY REVIEW
CITIES

000 omitted
Total debits, four weeks ended
Nov. 9,
Oct. 11,
Nov. 8,
1932
1933
1933

Asheville, N. C.____
Baltimore, Md...........
Charleston, S. C.---Charleston, W. Va.....
Charlotte, N. C-----Columbia, S. C.-----Cumberland, Md.---Danville, Va.........—
Durham, N. C.____
Greensboro, N. C.__
Greenville, S. C.___
Hagerstown, Md.___
Huntington, W. Va...
Lynchburg, Va.____
Newport News, Va...
Norfolk, Va_______
Portsmouth, Va.____
Raleigh, N. C______
Richmond, Va_____
Roanoke, Va---------Washington, D. C__
Wilmington, N. C-...
Winston-Salem, N. C.

$ 7,761
201,555
10,126
30,621
39,834
15,308
5,230
7,737
29,614
6,376
13,213
5,101
9,101
12,830
5,675
34,113
2,950
16,136
110,666
17,813
151,027
7,135
27,142

$ 8,778
228,480
11,148
25,421
40,303
13,951
6,006
4,783
27,213
6,265
12,415
6,128
9,327
12,495
6,246
33,287
2,858
13,939
109,141
17,036
160,494
6,690
27,492

$ 6,740
243,313
9,553
25,009
31,871
10,948
4,778
5,090
17,£20
12,203
10,983
4,942
9,054
11,074
5,688
30,364
2,739
14,617
104,905
17,652
164,967
6,651
21,887

Fifth District Totals

$767,064

$789,896

$772,848

drawn against depositors’ accounts in the banks of
twenty-three leading trade centers of the Fifth Federal
reserve district.
A comparison of the total of $767,064,000 in debits
reported for the four weeks ended November 8, 1933,
with the total reported for the preceding four weeks,
ended October 11 this year, shows a decrease of $22,832,000, or 2.9 per cent. A decline during the more
recent period is seasonal, due to heavy payments of
dividends and interest on October 1, but the decrease
this year was less than normally occurs. Thirteen of
the twenty-three cities reported higher figures for the
more recent four weeks, while last year only nine and
in 1931 only five of the twenty-three cities reported
higher figures in comparison with the figures reported
for the preceding periods.
In comparison with figures reported for four weeks
last year, ended November 9, 1932, corresponding fig­
ures for the four weeks ended November 8, 1933, show
a total decrease of $5,784,000, or 0.7 per cent, but, as
we pointed out last month in the Review, this decrease
was due entirely to lower figures this year in Balti­
more, Greensboro and Washington. In these cities a
large percentage of the banks did not open after the
March banking holiday* and, as a result of frozen de­
posits, debits in the three cities have been much lower
than debits a year ago. Nineteen of the twenty-three
cities reported higher figures for the 1933 period, and
if figures for Baltimore, Greensboro and Washington
were omitted the remaining twenty cities would show
an average increase of 15.8 per cent in debits. Price
changes during the past year no doubt account for part
of the rise in 1933 debits figures, but much of the im­
provement is due to an actual increase in the volume
of business done in the later period.




3

Business Failures
In the November issue, the Dun and Bradstreet
Monthly Review says, “The improvement that has
occurred in economic conditions in the United States
is clearly demonstrated by the recent record of business
failures. In the past few months there has been a
very great change for the better in the matter of these
insolvencies.” There were only 1,206 failures in the
United States in October 1933, with aggregate liabili­
ties totaling $30,581,970, compared with 2,273 insol­
vencies and liabilities aggregating $52,869,974 in Octo­
ber 1932, decreases of 47 per cent in number and 42
per cent in liabilities. The number of failures last
month was the lowest for any October in the past
thirteen years, and last month’s liabilities were the low­
est for any October since 1925. In the Fifth Federal
reserve district, October 1933 insolvencies numbered
only 74, and liabilities totaled only $851,565, compared
with 119 failures and liabilities amounting to $1,933,670
reported for October 1932, decreases of 38 per cent in
number of failures and 56 per cent in liabilities for the
1933 month. The district record was better than the
National record in total liabilities involved, but was
worse than the National record in the number of bank­
ruptcies. The number of failures in the Fifth district
in October 1933 was the lowest for any October since
1920, and aggregate liabilities were the lowest for any
month since June 1920. Every one of the twelve Fed­
eral reserve districts reported fewer failures and lower
liabilities for October this year than for October 1932.

Employment
In most years there is some seasonal increase in un­
employment with the coming of cold weather, but this
year efforts being made to increase work have more
than offset this tendency, with the result that additional
workers have been able to find jobs during the past
six weeks. Public works projects largely designed to
give employment are getting started, and there is some
rise in private construction work, chiefly in residential
building. Conditions in labor circles are of course still
far from satisfactory, but distinct improvement has
been made in recent weeks and labor is much better
employed than was the case a year ago. People who
have not yet secured employment are worse off than
they were before prices of nearly all commodities began
rising, and therefore all relief agencies will be called
upon for more assistance per family during the coming
winter, but it is expected that a smaller number of
families will require help.

Coal Production

Bituminous coal production in the United States
totaled 29,656,000 net tons in October 1933, a smaller
than usual seasonal increase over 29,500,000 tons mined
in September this year, and materially less than 32,677.000 tons in October 1932. Total production of
soft coal during the calendar year to November 11
amounted to 279,107,000 net tons, compared with 254,479.000 tons mined during the corresponding period
last year. Shipments of coal through Hampton Roads

4

MONTHLY REVIEW

ports in 1933 prior to November 11 totaled 14,852,536
tons, compared with 13,865,669 tons shipped through
the same ports to the corresponding date in 1932.
In its October 21 report, the Bureau of Mines, De­
partment of Commerce, gave bituminous coal produc­
tion figures for the month of September. The report
credited West Virginia with 9,465,000 net tons, while
Pennsylvania, the second ranking state, mined 8,690,000
tons. In its November 4 report, the Bureau of Mines
stated that stocks of bituminous coal rose rapidly dur­
ing the third quarter of 1933, partly due to seasonal
influences and partly to purchases in anticipation of
higher prices after the adoption of the code for the
coal industry. In spite of the unusually heavy addi­
tions to stock, the tonnage on hand on October 1 was
not excessive for that date, and was in fact smaller
than on any other October 1 except that of 1932 since
1922.

Textiles
For the second consecutive month, operations in
Fifth district textile mills in October fell behind those
of the preceding month, and cotton consumption fur­
ther declined, but this reaction from the unusual ac­
tivity in the late summer months was natural and was
expected by mill executives. Fifth district mills con­
sumed 232,396 bales of cotton in October, a decrease
of 1.0 per cent under 234,801 bales used in September
this year and 4.0 per cent less than 242,038 bales con­
sumed in the district in October 1932. Last month
North Carolina mills consumed 122,429 bales, South
Carolina mills used 98,331 bales, and Virginia mills
11,636 bales. Consumption of cotton in the Fifth
district in October amounted to 46.12 per cent of
National consumption, a lower figure than either 47.01
per cent of National consumption used in the district
in September this year or 48.23 per cent used in Octo­
ber 1932.

Cotton Statistics
Spot cotton prices advanced in the latter part of Oc­
tober and early November under the stimulus of Gov­
ernment loans to enable growers to hold their cotton.
Loans were made on a basis of 10 cents per pound to
growers who would agree to reduce their 1934 cotton
acreage. The price of middling grade cotton on ten
Southern markets rose during the past month from
8.89 cents per pound on October 13 to 9.85 cents on
November 17, the latest date for which official figures
are available.
Condition figures on the 1933 cotton crop, based on
the November 1 condition of the crop, were issued by
the Department of Agriculture on November 8. This
report raised the estimate of production in the United
States to 13,100,000 bales, in comparison with the esti­
mate of 12,885,000 bales on October 1, 1933, and 13,002,000 bales ginned in 1932. The November 1 report
raised this year’s probable production figures for the
three cotton growing states of the Fifth district, in
comparison with the estimates made a month earlier.
South Carolina’s yield is now estimated to 725,000




bales, compared with prospects for 720,000 bales on
October 1 and 716,000 bales grown last year. North
Carolina’s crop of 695,000 bales compares with an esti­
mate of 660,000 bales on October 1, and 660,000 bales
ginned in 1932. Virginia’s prospective yield of 39,000
; bales compares with 38,000 bales predicted a month
earlier and 34,000 bales grown in 1932. Total produc­
tion in the Fifth district is forecast at 1,459,000 bales,
I an increase of 41,000 bales during October and 49,000
? bales more than last year’s production. The average
number of pounds per acre was much higher in the
Fifth district this year than in 1932, resulting in a
larger yield from a lower acreage.
Ginning figures to November 1, released by the Cen­
sus Bureau on November 8, showed 10,361,404 bales
ginned from this year’s crop, compared with 9,247,045
bales of last year’s crop ginned before November,
i Weather conditions during October were excellent for
j cotton picking, and practically all of the crop was
; gathered by the end of the month.
Cotton consumption in the United States in Octoj ber showed a small increase over the month of SepI tember, and was also above consumption in October
j last year. The number of bales used totaled 503,873 in
; October 1933, compared with 499,486 bales used in
! September this year and 501,893 bales in October 1932.
; Total consumption this cotton year—August 1 through
j October 31—amounted to 1,591,929 bales, against 1,i 399,132 bales consumed in the corresponding three
j months of last season. Manufacturing establishments
j held 1,361,190 bales on October 31, compared with
1,160,457 bales held on September 30 and 1,267,181
bales on October 31, 1932. Public warehouses and
compresses held 9,474,342 bales in storage at the end
of October this year, compared with 7,374,556 bales
so held a month earlier and 9,824,523 bales on October
31 last year. October exports totaled 1,046,524 bales,
compared with 869,244 bales exported in September
and 1,008,023 bales sent abroad in October 1932. Total
exports during the three months of the present cotton
year—August 1-October 31, inclusive—totaled 2,446,395 bales, a higher figure than 2,193,842 bales shipped
over seas during the corresponding three months last
year. Spindles active at some time during October
numbered 25,875,142, compared with 26,002,148 in
September this year and 24,583,408 in October 1932.
Cotton growing states consumed 405,157 bales of
cotton in October, compared with 401,373 bales in
September and 414,490 bales in October 1932. Last
month’s consumption in the cotton growing states
amounted to 80.41 per cent of National consumption,
compared with 80.36 per cent in September this year
and 82.5^ per cent in October 1932. Of the 405,157
bales of cotton consumed in the cctton growing states
in October, the Fifth district mills used 232,396 bales,
or 57.36 per cent, a lower figure than 58.39 per cent of
Southern consumption attained by Fifth district mills
in October last year.

MONTHLY REVIEW

Tobacco Marketing
South Carolina auction tobacco markets sold 28,196,302 pounds of growers’ tobacco in October this year,
for an average price of $12.38 per hundred pounds.
The markets were not open in October 1932. Total
sales this year through October amounted to 78,269,097
pounds, and the average price to November 1 was
$12.61 per hundred. Last year sales for the entire
season totaled only 36,251,281 pounds, and the average
price was $11.41 per hundred. The November 1 esti­
mate of tobacco production in South Carolina this year
was 78,200,000 pounds, compared with 39,236,000
pounds grown in the State in 1932 and a five-year aver­
age of 81,408,000 pounds. Production figures for the
State and sales figures in warehouses do not agree,
some tobacco being grown in one state and sold in an­
other because of nearness of markets across state lines.
North Carolina markets sold 167,943,957 pounds of
producers’ tobacco in October 1933, at an average
price of $15.05 per hundred pounds. These figures
compare with 104,972,582 pounds sold for an average
of $12.59 per hundred in October 1932. Total sales
this season to November 1 of 265,663,703 pounds
show an increase over 183,258,847 pounds sold in 1932
before November, and final production for 1933 esti­
mated at 525,604,000 pounds is 79 per cent more than
the yield of 293,750,000 pounds in 1932. Greenville
led the North Carolina markets in October sales with
24,783,916 pounds, but two warehouses at Stoneville
led in price with an average of $21.23 per hundred
pounds. Wilson ranked second in October sales with
24,315,188 pounds. North Carolina tobacco this year
varies widely in color and grades, and prices vary ac­
cordingly.
Virginia leaf tobaco markets sold 11,211,592 pounds
for growers in October, at an average price of $14.21
per hundred pounds. Last year the October sales
amounted to 7,834,922 pounds at an average of $8.94
per hundred. October sales consisted entirely of Fluecured types, no Fire-cured or Sun-cured markets be­
ing open during the month. Danville led all markets
with total sales of 5,445,638 pounds, South Boston
ranking second with 2,129,797 pounds. Martinsville
paid the highest average price in October, $16.19 per
hundred pounds. The quality of tobacco sold in Vir­
ginia in October was considerably better than the qual­
ity in October last year, grading 37 per cent good, 40
per cent medium, and only 23 per cent common. Last
year October sales averaged only 15 per cent good, 36
per cent medium, and 49 per cent common. This year’s
tobacco crop in Virginia is estimated at 84,575,000
pounds, compared with the very short crop of 53,084,000 pounds harvested in 1932.

Agricultural Notes
Maryland farmers were aided by favorable weather
conditions during October, according to the agricul­
tural statistician of the Maryland Crop Reporting Ser­
vice, and except in the Western portion of the state
good progress was made in sowing grain and harvesting




5

late crops. Prospective yields for tobacco and Irish
potatoes increased during October, com and sweet
potato estimates remained unchanged, and the com­
mercial apple crop declined. Corn production esti­
mated at 16,356,000 bushels compares with 16,440,000
bushels last year and a five-year average (1926-1930)
of 14,425,000 bushels. The Maryland tobacco crop of
18.688.000 pounds compares with 22,750,000 pounds
in 1932 and a five-year average of 23,230,000 pounds.
Irish potatoes are expected to yield 2,760,000 bushels
in 1933, against 2,945,000 bushels in 1932 and a 19261930 average of 3,595,000 bushels. Sweet potatoes
totaling 840,000 bushels this year compare with 920,000 bushels last year and 1,388,000 bushels the fiveyear average. Commercial apple production is now
forecast at 226,000 barrels, compared with 252,000
barrels in 1932 and an average of 448,000 barrels in
1926-1930.
Virginia harvesting made rapid progress during Oc­
tober and yields of most crops turned out above the tenyear average. The dry and clear weather was excel­
lent for saving late hay crops and for curing burley
and sun-cured tobacco, but the seeding of all grain
crops in the Southern and Southwestern districts was
retarded and many farmers had not completed this
work by November. During the latter part of October
pastures dried up and afforded very little grazing ex­
cept in the Northern counties. Corn was severely dam­
aged by the August storm in Eastern and Northern
counties, but the yield per acre turned out somewhat
higher than the average for the past ten years. Total
production of corn this year is estimated at 35,132,000 bushels, compared with 26,388,000 bushels har­
vested last year and a five-year average of 32,873,000
bushels. The supply of feed grains and forage crops
throughout the State is greater than usual, and there
will be an abundance of feed for livestock during the
coming winter. Peanut digging was practically fin­
ished in October and picking was well under way on
November 1. Weather conditions were unusually fav­
orable for curing peanuts and growers reported a high
quality crop. Total production is estimated to be 109,250.000 pounds, compared with 140,000,000 pounds
harvested last year. The Virginia apple crop suf­
fered heavy loss from insects and diseases and also
from the August storm, and total production is 10,900.000 bushels, compared with 7,830,000 bushels last
year and a five-year average of 12,671,000 bushels.
Harvest of the commercial crop had practically been
completed by November 1 and growers report a much
smaller percentage making No. 1 grade than usual. A
large proportion of the crop was sold to by-products
plants. The commercial crop is estimated to be 1,800,000 barrels, compared with 1,963,000 barrels harvested
last year and a five-year average of 2,720,000 barrels.
The yield of late Irish potatoes was very poor, the
earlier part of the growing season being too hot and
wet and the latter part too dry. Total production,
including the early crop, is estimated at 8,649,000
bushels, compared with 9,682,000 bushels dug last year
and a five-year average of 15,464,000 bushels. The
yield of sweet potatoes was not quite as heavy as had

6

MONTHLY REVIEW

been expected, but the commercial districts yielded bet­
ter than last year. Total production of sweet potatoes
is estimated at 4,255,000 bushels, compared with 3,610.000 bushels harvested in 1932 and 4,602,000 bush­
els the five-year average. The production of sorghum
syrup is considerably larger this year than usual, be­
ing forecast at 252,000 gallons compared with 200,000
gallons last year.
West Virginia weather in October was a little too
dry for late crops, but was unusually favorable for har­
vesting. Frosts were later than usual this year. The
estimated production of corn this year is 13,082,000
bushels, compared with 11,150,000 bushels in 1932
and a five-year average production of 11,408,000 bush­
els. Corn husking was well advanced on November
1 and early returns indicate a crop of fair to good
quality. The Irish potato crop in West Virginia was
one of the poorest in many years. Total production is
estimated at 2,640,000 bushels, compared with 3,608,000 bushels dug in 1932 and a five-year average of
3.562.000 bushels. The average yield this year was
only 60 bushels per acre, against 88 bushels last year.
On the other hand, sweet potatoes turned out well
this year, and the average yield per acre was 90 bushds compared with 77 bushels per acre in 1932. The
tobacco crop for 1933 is estimated at 5,180,000 pounds,
more than twice the 1932 crop of 2,312,000 pounds
and also well above the five year average of 4,362,000
pounds, but the 1933 crop was harvested from 7,000
acres against only 3,700 acres planted to tobacco in
1932. As the season advances, the damage to the apple
crop becomes more apparent. Total production of 4,200.000 bushels compares with 4,191,000 bushels last
year and a five-year average of 6,831,000 bushels.
Commercial orchards suffered the greatest losses this
year, many of the apples which were not destroyed
being so badly damaged that they could not make the
top grades and had to be sold in bulk to by-products
plants. Commercial apple production is estimated to
be 700,000 barrels for 1933, compared with 833,000
barrels last year and a five-year average of 1,340,000
barrels.
North Carolina's agricultural statistician reports that
the situation in his State is distinctly improved. He
says that tobacco prices are much more favorable than
last year, in spite of a much larger crop; that cotton
farmers are not so blue as they were a year ago; and
that peanut growers are beginning to smile. October
weather was favorable for harvesting, and killing frosts
did not occur until late. The corn crop of North Caro­
lina is forecast at 42,550,000 bushels this year, com­
pared with 34,830,000 bushels in 1932 and a five-year
average of 39,328,000 bushels. The peanut crop of
197.925.000 pounds is smaller than the yield of 254,740.000 pounds last year and a five-year average of
206.549.000 pounds, but the price of nuts this year is
relatively good. An apple crop this year of 5,254,000
bushels far exceeds last year’s yield of 1,825,000
bushels and is also larger than the five-year average
crop of 3,571,000 bushels. Irish potatoes yielded 7,469.000 bushels this year in North Carolina, compared
with 6,596,000 bushels last year and a five-year aver­




age of 6,927,000 bushels. The sweet potato crop of
8.360.000 bushels is also larger than last year’s yield
of 7,990,000 bushels and the five-year average of 6,629.000 bushels. Sorghum syrup made in the State
this year totaled 1,752,000 gallons, compared with 1,680.000 gallons last year and a five-year average of
1.304.000 gallons.
South Carolina com production is forecast at 22,330.000 bushels this year, compared with 17,885,000
bushels gathered last year and a five-year average pro­
duction of 20,751,000 bushels. A peanut crop of 9,520.000 pounds compares with 10,240,000 pounds in
1932 and a five-year average of 7,315,000 pounds.
South Carolina pecan orchards produced 1,150,000
pounds of nuts this year, compared with 750,000
pounds in 1932 and a five-year average of 856,000
pounds. The apple production of 1933 is forecast at
279.000 bushels, compared with 164,000 bushels in
1932 and a five-year average of 387,000 bushels. The
Irish potato crop yielded 1,728,000 bushels this year in
South Carolina, compared with 1,462,000 bushels dug
in 1932 and a five-year average of 2,894,000 bushels.
Sweet potatoes yielded 4,897,000 bushels in 1933, com­
pared with 6,072,000 bushels last year and 4,227,000
bushels the five-year average. Sorghum syrup made
this year totaled 416,000 gallons, compared with 540,000 gallons made in 1932 and a five-year average pro­
duction of 363,000 gallons.

Construction

Building Permits Issued in October 1933 and 1932
CITIES

Baltimore, Md----Cumberland, Md.....
Frederick, Md........
Hagerstown, Md.---Salisbury, Md........
Danville, Va-------Lynchburg, Va.---Norfolk, Va_____
Petersburg, Va.---Portsmouth, Va.—
Richmond, Va........
Roanoke, Va------Bluefield, W. Va...
Charleston, W. 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. G...
Washington, D. G...

Total Valuation
1932
1933
1,365 $ 854,286 $1,995,960
10,358
19,775
16
9,475
5,466
17
1,355
2,245
9
23,750
16,625
28
905
6,704
8
16,691
37,150
27
75,550
44,876
109
7,950
0
6
14,095
12,690
28
54,610
100,808
85
15,544
27,778
28
1,035
1,620
6
24.060
25,464
37
6,010
2,700
10
17,905
11,310
26
1,760
10,037
10
45.061
21,86p
42
36,150
39,850
15
14,863
74,927
37
13,210
4,785
9
8,705
3,040
6
1,975
885
4
5,320
5,790
5
14,450
32,790
63
17,930
8,440
50
20,914
9,917
46
7,090
13,215
27
15.335
15,025
8
2,380
7,720
19
550,415
711,675
611

Permits Issued
1933
1932
779
6
13
12
14
24
21
96
0
24
85
31
3
88
14
21
20
25
11
52
14
9
4
8
58
38
36
35
25
13
522

District T otals___ 2,101

2.757

$1,957,049

$3,203,215

Building permits issued by inspectors in thirty-one

MONTHLY REVIEW

7

Fifth district cities in October 1933 totaled 2,101, with
estimated valuation amounting to $1,957,049, compared
with 2,757 permits valued at $3,203,215 issued in Oc­
tober 1932, decreases of approximately 24 per cent in
number and 39 per cent in total valuation in the 1933
month. Fifteen of the thirty-one cities reported higher
figures for October this year, including Richmond, but
the other four of the five largest cities showed lower
1933 figures.

Contracts awarded in October for construction work
in the Fifth district, including both urban and rural
projects, totaled only $10,752,712, compared with $13,464,279 in October 1932 and $23,342,082 in October
1931, according to figures collected by the F. W. Dodge
Corporation. Of the awards in October this year, $2,173,187, or 20.2 per cent, was for residential work,
compared with $3,294,019, or 24.5 per cent, for this
type of work in October 1932.

Retail Trade, 31 Department Stores

W holesale Trade, 59 Firms

Richmond Baltimore Washington Other Cities District

October 1933 sales, compared with sales in October 1932:
+ 8*2
-j- 2.1
— 6.4
-f 5.0
.5
January-October 1933 sales, compared with Jan.-Oct. 1932:
— 3.1
— 62
—10.1
— 5.8
— 7.4
Oct. 31, 1933, stocks, compared with stocks on Oct. 31, 1932:
+ 6.8
+25.3
+25.3
— 52
+20.2
Oct. 31, 1933, stocks, compared with stock on Sept. 30, 1933:
+ 6.9
+ 5.0
+ 3.8
+ 7.9
+ 4.9
Number of times stock was turned in October 1933:
.335
282
.271
.286
.283
Number of times stock was turned since January 1, 1933:
3.136
2.787
2.781
2.358
2.775
Percentage of Oct. 1, 1933, receivables collected in October:
28.9
232_______257_______274_______25.0




21

7

Groceries Dry Goods

6

Shoes

13

Hardware

12

Drugs
October 1933 sales, compared with sales in October 1932:
+15.9 i ' +23.0
+10.5
+45.1
+ 42
October 1933 sales, compared with sales in September 1933:
— 8.4
+ 7.4
—30.9
+ 7.5
— 3.0
Jan.-Oct. 1933 sales, compared with Jan.-Oct. 1932 sales:
+ 5.3
+33.5
+24.8
+27.1
— 82
Oct. 31, 1933, stocks, compared with Oct. 31, 1932, stocks:
+ 6.4(8*) *+45.0(3*) +42.4(5*) + 8.5(7*)
___
Oct. 31, 1933, stocks, compared with Sept. 30, 1933, stocks:
— .1(8*) —17.1(3*) — 2.4(5*) + 2.1(7*)
Percentage of Oct. 1, 1933, receivables collected in October:
70.7112*) 37.2(4*)
55.4(6*)
44.2(11*) 53.1(8*)
♦Number of reporting firms.

(Compiled November 21, 1933)

8

MONTHLY REVIEW

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

Volume of industrial output continued to decline in Prices
October. Factory employment and payrolls, after in­
creasing continuously for six months up to the middle
Wholesale prices, as measured by the weekly index
of September, showed little change from then to the | of the Bureau of Labor Statistics, declined from 71.3
middle of October. There was an increase in the vol­ | per cent of the 1926 average in the first week of Octo­
ume of construction undertaken, reflecting the expan­ ber to 70.4 per cent in the third week, and then ad­
sion of public works.
vanced to 71.7 per cent in the third week of November,
a level 20 per cent above the low point of last March.
Production and employment
Following declines early in October, prices of cotton,
grains, lard, rubber, tin, and silver increased consider­
Volume of output in basic industries decreased in ably, while cattle prices continued to decline and prices
October as compared with September, contrary to sea­ of hogs showed little change.
sonal tendency, and the Board’s seasonally adjusted
index declined from 84 per cent of the 1923-1925
average to 77 per cent. This compared with an index Foreign Exchange
of 67 in October of last year and of 60 at the low
The value of the dollar in the foreign-exchange marpoint in March of this year. At steel mills activity
declined sharply between the middle of October and | ket fluctuated around 67 per cent of its gold parity
the first week in November, but in the following three j during the latter part of October, declined during the
weeks showed little change. In the automobile in­ i first part of November to 59 per cent on November 16,
dustry, output has been curtailed in recent weeks in j and on November 22 was 61 per cent.
preparation for new models. For the first ten months
of the year the number of cars produced was 50 per Bank Credit
cent larger than in the corresponding months of 1932.
Between October 18 and November 15 there was
Output at shoe factories showed a seasonal decline in
October as compared with September, and there was little change in the reserves of member banks, which
some decrease in activity at cotton and wool textile continued to be more than $800,000,000 in excess of
mills, contrary to seasonal tendency. At meat packing legal requirements. Purchases of United States Gov­
establishments activity declined sharply from the un­ ernment securities by the reserve banks declined grad­
usually high rate prevailing in September, which was ually from $25,000,000 during the week ending Octo­
due to the fact that in that month a large number of ber 25 to $2,000,000 during the week ending November
pigs purchased by the Federal Government were han­ 15. For the four-week period as a whole the banks’
holdings of United States Government securities
dled.
Total number of employees at factories, excluding showed an increase of $57,000,000 while holdings of
canning establishments, showed little change from the acceptances and discounts for member banks showed
middle of September to the middle of October. At little change.
canning establishments there was a decline of a sea­
Total loans and investments of member banks in­
sonal character, and the Board’s index, which includes creased by $90,000,000 during the period, reflecting a
this industry, showed a slight decrease.
growth of $150,000,000 in holdings of United States
Value of contruction contracts awarded during Octo­ Government securities, of $25,000,000 in holdings of
ber and the first half of November, as reported by the j other securities, and of $30,000,000 in all other loans,
F. W. Dodge Corporation, showed a considerable ad­ j while loans on securities declined. Net demand de­
vance over the preceding six-week period, reflecting a posits declined by $70,000,000 during the period, while
growing volume of public works.
Government deposits increased by $180,000,000.

Distribution
Shipments of commodities by rail showed a some­
what larger decline between the middle of October and
the middle of November than is usual at this season.
Department store sales increased in October as com­
pared with September by slightly less than the usual
seasonal amount.




Rates on acceptances and yields on short-term United
States Treasury bills and certificates rose slightly from
mid-October to November 20, and yields on Govern­
ment and high-grade corporate bonds advanced some­
what. Discount rates of the Federal reserve banks of
Boston, San Francisco, and Philadelphia were reduced
from 3 per cent to 2 1/2 per cent on November 2. 3,
and 16, respectively.