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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.
