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MONTHLY REVIEW CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS WILLIAM W. HOXTON, C h a ir m a n a n d F e d e r a l R e s e r v e A g e n t FEDERAL RESERVE BANK OF RICHMOND RICHMOND, VIRGINIA__________________________________________ NOVEMBER 30, 1934 N comparison with other months of the past four years, October and early November showed a volume of trade in the Fifth Federal reserve dis trict fully up to seasonal level, and basic conditions on the whole appear more favorable for Fall and Winter business than they have been since the depression set in. In banking circles, rediscounts for member banks at the Federal Reserve Bank of Richmond declined further between the middle of October and the middle of Novem ber, but the Bank increased its direct loans to industry, and there was the usual increase for this season in the circulation of Federal reserve notes. Reporting member banks in the larger cities increased their loans during the past month, and their deposits rose more than is accounted for by the increase in loans. Debits to individual accounts figures in five weeks ended November 14 showed a seasonal decline in comparison with debits in the five preceding weeks, but exceeded debits in the five weeks ended November 15, 1933, by 13.4 per cent. The record of commercial failures in the Nation and in the Fifth district was relatively bad in October, increasing more than the seasonal average over the number of failures in Sep tember, but the record was still materially better than that of October last year. Employment changed little during the past month, and continues the weakest link in the business chain. Coal production in October showed a normal advance over September output, and also exceeded production in October 1933. Textile mills in the Fifth district, after voluntarily restricting operations in July and August and experiencing the strike in September, resumed operations on approxi mately a full time basis in October, and consumed more cotton than in October a year ago. Building opera tions, as reflected in permits issued by inspectors in leading cities, showed a material increase over permits issued in recent months and in the corresponding period last year, probably due to the Government’s housing improvement campaign. Retail trade as reflected in department store sales exceeded the volume of trade in Octo ber last year by 20 per cent, and col lections of outstanding accounts dur ing the past month were the highest for any month in a number of years. Wholesale trade in October was better in four of five reporting lines than in October last year, shoes being the only line to fall below the 1933 level. Col lections in wholesale lines were also better in October than in any recent month. Cotton growers with prices more than sufficiently higher to com pensate for decreased production this year are in better position to buy con sumers’ goods, and tobacco growers are realizing more money for their 1934 crop than for any other crop in a number of years. Farmers throughout the Fifth dis trict raised relatively large crops of food and feed crops, and all money crops yieded well. Weather for harvesting was unusually favorable, and preparations for Fall planting of grain are well advanced through out the district. Reserve Bank Statement ITEMS Nov. 15 1934 000 omitted Oct. 15 Nov. 15 1934 1933 Rediscounts h eld ---------------- $ 110 $ 417 $ 6,818 Open market paper------------209 216 492 o Industrial advances_________ 481 1,289 Foreign loans on goldL---------599 0 0 Government securities ______ 103,563 103,563 78,563 Total earning assets_______ 105,770 104,677 85,873 Circulation of Fed. Res. notes.. 173,141 170,126 149,697 Members' reserve deposits____ 128,110 126,991 80,536 Cash reserves-------------------- 203,001 205,050 166,601 66.31 66.98 Reserve ra tio -------------------69.55 Between October 15 and November 15, both this year, rediscounts for member banks at the Federal Re serve Bank of Richmond declined by $307,000, and the portfolio of open market paper dropped by $7,000. 2 MONTHLY REVIEW There was no change in the Bank’s holdings of Gov ernment securities during the month, but industrial ad vances rose by $808,000, and the Bank participated in foreign loans on gold to the extent of $599,000. These changes resulted in a net gain in total earning assets amounting to $1,093,000. The past month witnessed a seasonal increase of $3,015,000 in the circulation of Federal Reserve notes. Member bank reserve deposits rose further last month, by $1,119,000. The several changes in the statement lowered the cash reserves of the Federal Reserve Bank of Richmond by $2,049,000 between October 15 and November 15, and reduced the ratio of cash reserves to note and deposit liabilities combined by 67/100th of a point. During the year between November 15, 1933, and November 15, 1934, rediscounts at the Federal Re serve Bank of Richmond declined by $6,708,000, and holdings of open market paper declined by $283,000. On the other hand, the Bank increased its ownership of Government securities by $25,000,000, and on the 1934 date was lending $1,289,000 direct to industry, In addition, on November 15 this year the Bank was participating in a System foreign loan on gold, our share of the loan being $599,000. The net change in total earning assets during the year was an increase of $19,897,000. Federal reserve notes in actual cir culation rose by $23,444,000 between November 15 last year and this, partly due to generally increased business and partly to the need for more money to handle crop marketing at the higher prices prevailing this year for the leading crops, cotton and tobacco. Member bank reserve deposits increased by $47,574,000 during the past year. Cash reserves of the Federal Reserve Bank of Richmond rose by $36,400,000 between November 15, 1933, and November 15, 1934, but because of the marked increases in note circulation and reserve de posits, the ratio of cash reserves to note and deposit liabilities combined declined by 3.24 points during the year. Statement of 28 Member Banks ITEMS Nov. 14 1934 are not necessarily the highest or lowest figures that occurred during the periods under review. The twenty-eight reporting member banks increased their loans by $6,319,000 between October 10 and No vember 14, both this year, a seasonal rise occurring in “all other loans” amounting to $3,210,000 and loans on securities rising by $3,109,000. In banks in the larger centers, borrowing by merchants to discount bills for : fall merchandise at this season usually exceeds liquida tion of indebtedness by farmers as a result of marketing of agricultural products. Investments in securities, chiefly Government obligations, rose by $1,513,000 during the past month. The reporting banks further increased their reserve balance at the reserve bank between October 10 and November 14, but the rise of $2,562,000 was little more than a daily fluctuation due to clearing operations. Cash in vaults declined by ] $45,000 last month. Aggregate deposits rose during j the period under review by $9,630,000, of which all j but $4,000 was in demand deposits. Time deposits j were somewhat reduced and demand deposits corre j spondingly increased during the month by a transfer j of Christmas Savings funds from time to demand deposits on November 1. None of the twenty-eight reporting banks were borrowing at the Federal Re serve Bank of Richmond on either November 14 or October 10. During the year between November 15, 1933, and November 14, 1934, total loans in the reporting mem ber banks decreased $9,340,000, all of which was in “all other loans.” Investments in securities rose by $29,387,000 during the year, and aggregate reserve balance with the reserve bank increased by $27,865,000, the reserve balances on both dates being much larger than actual requirements. Cash in vaults rose by $2,355,000 during the past year. Aggregate deposits in the twenty-eight banks rose by $52,887,000 between the middle of November last year and this year, a gain in demand deposits amounting to $48,414,000 account ing for most of the increase. On November 15, 1933, two of the twenty-eight banks were borrowing a total 000 omitted of $246,000 at the reserve bank, but none of them were rediscounting on November 14, 1934. Oct. 10 Nov. 15 1934 Loans on stocks and bonds (in cluding Governments) ____ $ 60,190 $ 57,081 All other loans------------------ 108,370 105,160 Total loans and discounts---- 168,560 162,241 Investments in securities____ 190,614 189,101 Reserve bal. with F. R. Bank.... 57,642 55,080 12,232 12,187 Cash in vaults_____________ Demand deposits__________ 240,038 230,408 Time deposits_____________ 133,499 133,495 Borrowed from F. R. Bank.— 0 0 1933 $ 59,835 118,065 177,900 161,227 29,777 9,832 191,624 129,026 246 Time and Savings Deposits Time deposits in twenty-eight reporting member banks and aggregate deposits in eleven mutual savings bank in Baltimore totaled $329,235,051 at the end of October 1934, a higher figure than either $327,052,500 reported at the end of September this year or $314,431,540 at the end of October last year. Deposits in both member and mutual savings banks showed in creases for the past month and past year. The accompanying table shows totals of the prin Debits to Individual Accounts cipal items of condition reported by twenty-eight mem- j beij banks in ten leading cities of the Fifth Federal j The debits to individual, firm and corporation ac reserve district as of three dates, November 14 and counts figures shown in the accompanying table for October 10, this year, and November 15 last year, thus three equal periods of five weeks include all checks affording opportunity for comparison of the latest drawn against depositors* accounts in the banks of available figures with those a month and a year earlier. twenty-three leading trade centers of the Fifth Federal It should be understood that the figures in the table reserve district. MONTHLY REVIEW CITIES 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. District Totals...... .. 000 omitted Total debits, five weeks ended Nov. 15, Oct. 10, Nov. 14, 1934 1933 1934 $ 10,874 299,030 13,570 46,205 56,897 22,593 6,894 18,510 48,932 13,629 16,968 7,734 13,047 14,856 7,732 48,280 3,838 29,558 166,506 21,594 196,352 9,959 37,418 $1,110,976 $ 10,851 312,565 15,858 45,843 51,144 21,888 7,351 10,513 55,196 12,495 14,853 7,721 13,100 15,379 8,142 59,036 3,704 25,306 183,471 21,506 199,641 10,090 36,251 $1,141,904 $ > 9,727 253,660 12,384 38,377 49,136 19,724 6,692 10,378 38,118 8,160 16,335 6,378 11,348 16,138 7,297 42,006 3,623 20,365 138,119 21,722 189,643 8,662 33,656 $ 961,648 A comparison of the total of $1,110,976,000 in debits reported for the five weeks ended November 14, 1934, with the total reported for the preceding five weeks, ended October 10 this year, shows a decrease of $30,928,000, or 2.8 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 occurs in most years. Twelve of the twenty-three cities reported higher figures for the more recent period, six of the increases being due at least in part to improvement in the textile industry. In comparison with figures reported for five weeks last year, ended November IS, 1933, corresponding fig ures for the five weeks ended November 14,1934, show a total increase of $149,328,000, or 13.4 per cent, a somewhat smaller increase than was reported in other recent months in comparison with corresponding pe riods last year. All of the reporting cities showed higher figures for the 1934 period except Lynchburg and Roanoke, the decline in the latter city being less than 1 per cent. Commercial Failures After declining almost steadily each month this year, business failures in the United States took a sharp upturn in October, and exceeded September insol vencies by 38 per cent, a much larger than normal seasonal rise. However, failures in October this year continued below the number reported for the corre sponding month of the preceding year. October 1934 bankruptcies totaled 1,091, compared with 790 in Sep tember this year and 1,206 in October 1933. Liabilities totaling $19,968,448 last month also exceeded $16,440,147 reported for September 1934, but were much 3 below $30,581,970 for October 1933. In the Fifth 1 reserve district, insolvencies in October numbered 48, with aggregate liabilities totaling $778,492, compared with 27 failures and liabilities totaling $431,992 in September 1934, and 74 failures for $851,565 in Octo ber last year. Dun & Bradstreet Monthly Review for November says that failures in October were relatively heaviest in Eastern States, especially New England, with a secondary bad spot on the Pacific Coast. The Richmond district made the worst record for October in the South, in comparison with the record for Sep tember, while the Atlanta district made the best com parison. In comparison with October 1933 failures, the Richmond district was among the three leaders in improvement, along with Chicago and Cleveland. Three reserve districts, New York, Kansas City and San Francisco, reported more insolvencies in October 1934 than in October 1933. Employment Employment conditions show no material change since the October 31 issue of the Review was written. A seasonal tendency toward increased unemployment at this season has been partly overcome by the Govern ment’s drive for housing improvement, but on the other hand a number of PWA projects have been completed recently, thereby laying off additional workers. In creased coal production in October added to payrolls of miners, and the textile mills of the Fifth district appear to have recovered fully from the strike. Coal Production Bituminous coal production in the United States totaled 32,504,000 net tons in October 1934, a seasonal increase over 27,670,000 tons mined in September this year, and also above October 1933 production of 29,656.000 tons. Total production of soft coal during the calendar year to November 10 amounted to 306,108.000 net tons, compared with 279,107,000 tons mined during the corresponding period last year. Ship ments of coal through Hampton Roads ports in 1934 prior to November 10 totaled 15,392,882 tons com pared with 14,852,536 tons shipped through the same ports to the corresponding date in 1933. In its October 27 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 7,420,000 net tons, while Pennsylvania, the second ranking state, dug 6,520,000 tons. In its November 3 report, the Bureau of Mines stated that stocks of bituminous coal rose seasonally during the third quarter of 1934, but on October 1 stocks in the hands of industrial consumers were esti mated to be sufficient to last 42 days, compared with a 46 day supply on hand a year ago. Textiles After the settlement of the textile strike in late September, mills resumed operations promptly and in October ran at about the same rate as in October last 4 MONTHLY REVIEW year. Forward orders have been scarce, but on the whole the mills have obtained sufficient business to keep them operating approximately full time under code rules. Fifth district mills consumed 235,752 bales of cotton in October, an increase of 69 per cent over 139,319 bales used in September when the strike re tarded operations three weeks, and 1.4 per cent above 232,396 bales consumed in October 1933. Last month North Carolina mills used 120,125 bales, South Caro lina mills used 102,066 bales, and Virginia mills 13,561 bales, the figures for South Carolina and Virginia ex ceeding those for October last year. Consumption of cotton in the Fifth district in October amounted to 45.31 per cent of National consumption, a lower figure than either 47.07 per cent of National consumption used in the district in September this year or 46.11 per cent used in October 1933. Cotton Statistics I sus Bureau on November 8, showed 7,920,231 bales j ginned from this year’s crop, compared with 10,355,031 ; bales of last year’s crop ginned before November. Weather conditions during October were excellent for cotton picking, and little cotton remained in the fields by the end of the month. Cotton consumption in the United States in October i showed a marked increase over the month of Septem| ber, and was also above consumption in October last year. The increase in October consumption in com parison with that of September was of course due in large part to the settlement of the strike which kept a majority of cotton mills closed about three weeks in the earlier month. The number of bales used totaled 520,310 in October 1934, compared with 295,960 bales used in September this year and 504,055 bales in October 1933. Total consumption this cotton year— August 1 through October 31—amounted to 1,237,219 bales, against 1,592,439 bales consumed in the corre sponding three months of last season. Manufacturing establishments held 1,139,721 bales on October 31, com pared with 1,056,744 bales held on September 30 and 1,363,343 bales on October 31, 1933. Public ware houses and compresses held 9,381,428 bales in storage at the end of October this year, compared with 7,616,140 bales so held a month earlier and 9,474,446 bales on October 31 last year. October exports totaled 615,593 bales, compared with 479,861 bales exported in September and 1,044,824 bales sent abroad in October 1933. Total exports during the three months of the present cotton year—August 1—October 31, inclusive— totaled 1,363,016 bales, a lower figure than 2,444,695 bales shipped over seas during the corresponding three months last year. Spindles active at some time during October numbered 25,095,480, compared with 22,112,888 in September this year and 25,883,836 in October 1933. Cotton growing states consumed 410,543 bales of cot ton in October, compared with 243,004 bales in Sep tember and 405,175 bales in October 1933. Last month’s consumption in the cotton growing states amounted to 78.9 per cent of National consumption, compared with 82.1 per cent in September this year and 80.4 per cent in October 1933. Of the 410,543 bales of cotton consumed in the cotton growing states in October, the Fifth district mills used 235,752 bales, or 57.4 per cent, the same percentage of Southern con sumption attained by Fifth district mills in October last year. Spot cotton prices, as represented by the average paid on ten Southern markets on Friday of each week, de clined slightly during the second half of October, but recovered part of the loss in the first half of November. Middling grade upland cotton averaged 12.57 cents per pound on October 12, but declined thereafter each week to 12.25 cents per pound on November 2. On November 9 the average on the ten markets was 12.45 cents, and on November 16, the latest date for which official quotations are available, the price was 12.48 cents. Condition figures on the 1934 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 9,634,000 bales, in comparison with the esti mate of 9,443,000 bales on October 1, 1934, and 13,047.000 bales ginned in 1933. Most of the increase from last month took place in States along the Missis sippi River, particularly Arkansas, Missouri and Mis sissippi. Increases are also shown for Texas and Georgia. Oklahoma showed a decline last month. Con ditions during October were much more favorable than usual and picking and ginning progressed rapidly in all States with practically no losses of open cotton in the fields. In the Fifth district, South Carolina’s prospec tive yield of 695,000 bales is the same as the October estimate, and compares with 735,000 bales ginned in 1933. The North Carolina forecast of 650,000 bales on November 1 was 4,000 bales larger than a month earlier, and compares with last year’s yield of 684,000 Tobacco Marketing bales. The Virginia crop declined 1,000 bales during October, and prospects on November 1 for a yield of South Carolina auction tobacco markets sold 1,547,35.000 bales shows a decrease from 37,000 bales ginned 299 pounds of growers’ tobacco in October this year, from the 1933 crop. Total production in the Fifth dis for an average price of $19.24 per hundred pounds. trict is forecast at 1,380,000 bales, an increase of 3,000 Total sales this year through October amounted to bale$ during October but 76,000 bales less than last 52,952,175 pounds, and the average price was $21.60 year’s production. The per acre yields in the three per hundred. Last year sales for the entire season Fifth district cotton States this year are materially totaled 81,676,897 pounds, but the average price was higher than the figures last year, while the National only $12.59 per hundred. The November 1 estimate I of tobacco production in South Carolina this year was average per acre yield is less this year. Ginning figures to November 1, released by the Cen- I 57,720,000 pounds, compared with 88,580,000 pounds MONTHLY REVIEW grown in the State in 1933 and a five-year average of 83.820.000 pounds. Production figures for the State and sales figures in warehouses do not agree, some to bacco being grown in one State and sold in another because of nearness of markets across State lines. North Carolina markets sold 116,328,169 pounds of producers’ tobacco in October 1934, at an average price of $33.70 per hundred pounds. These figures compare with 172,608,443 pounds sold for an average of $14.99 per hundred in October 1933. Total sales this season to November 1 of 325,052,381 pounds show an increase over 270,328,189 pounds sold in 1933 before Novem ber, but final production for 1934 estimated at 420,570.000 pounds is 22 per cent less than the yield of 537.979.000 pounds in 1933. Winston-Salem led the North Carolina markets in October sales with 16,836,901 pounds, but three warehouses at Farmville led in price with an average of $35.90 per hundred pounds. Greenville ranked second in October sales with 15,491,384 pounds. Virginia leaf tobacco markets sold 33,146,067 pounds for growers in October, at an average price of $32.67 per hundred pounds. Last year the October sales amounted to 10,764,048 pounds at an average of $14.29 per hundred. October sales consisted entirely of fluecured types, no fire-cured or sun-cured markets being open during the month. Danville led all markets with total sales of 17,001,542 pounds, South Boston ranking second with 6,936,756 pounds. South Boston paid the highest average price in October, $33.75 per hundred pounds. The quality of tobacco sold in Virginia in October was considerably better than the quality in October last year, grading 45 per cent good, 33 per cent medium, and only 22 per cent common. Last year October sales averaged 37 per cent good, 40 per cent medium, and 23 per cent common. This year’s tobacco crop in Virginia is estimated at 87,397,000 pounds, compared with the crop of 97,046,000 pounds harvested in 1933. Warehousemen estimated that 58 per cent of the flue-cured tobacco had been sold by November 1, which is the highest percentage on record sold to that date. Tobacco Manufacturing On November 21, the Commissioner of Internal Revenue issued a report on taxes collected in October 1934 on manufactured tobacco products. October pro duction of cigarettes in the United States numbered 10,718,132,697, compared with 9,176,407,703 cigarettes manufactured in October 1933. Smoking and chewing tobacco production increased from 26,759,203 pounds in October last year to 27,463,735 pounds in October this year. Cigars manufactured rose from 408,451,691 in October 1933 to 494,456,319 in October 1934. Snuff production decreased from 3,787,145 pounds to 3,042,730 pounds during the year. In the month of October 1934, taxes on cigarettes totaled $32,156,394, compared with $27,532,043 collected in the corresponding month last year. Taxes on smoking and chewing tobacco in creased during the same period from $4,817,361 to $4,944,395, and cigar taxes rose from $1,127,627 to 5 $1,291,634. October was the first month in the past five or six in which taxes on smoking and chewing tobacco and on cigars exceeded taxes in the correspond ing month of the preceding year. Combined taxes to the Federal Treasury on all forms of tobacco manu facturing totaled $38,940,114 in October 1934 and $34,158,717 in October 1933, an increase this year of 14 per cent. Agricultural Notes Fall weather was favorable for crop harvesting, and in the Fifth reserve district per acre yields were good in the main. Prospective per acre yields this year, expressed as percentages of the ten-year average (19211930), were as follows in Fifth district states: South Carolina 122.4, North Carolina 113.1, Virginia 106.6, Maryland 104.7, and West Virginia 84.9. Prices for leading money crops were also above those a year earlier. Maryland farm work made rapid progress during the dry weather of October and the handicap of a wet September was largely overcome. Wheat sowing averaged a little later than usual, but early sown wheat is up to a good stand and has a thrifty appearance. Com production estimated at 16,480,000 bushels com pares with 16,240,000 bushels last year and a five-year average of 15,187,000 bushels. The Maryland tobacco crop of 24,480,000 pounds compares with 20,400,000 pounds in 1933 and a five-year average of 23,638,000 pounds. Irish potatoes are expected to yield 3,069,000 bushels in 1934, against 2,700,000 bushels in 1933 and a 1927-1931 average of 3,646,000 bushels. Sweet po tatoes totaling 700,000 bushels this year compare with 840.000 bushels last year and 1,493,000 bushels the five-year average. Commercial apple production is fore cast at 615,000 bushels, compared with 657,000 bushels in 1933 and an average of 1,355,000 bushels in 19271931: Virginia weather conditions were unusually favorable in October, and preliminary yield reports show that production of many crops will be larger than expected a month ago. The composite yield per acre of all crops is estimated to be 6.6 per cent above the ten-year average. Dry, dear weather during October enabled farmers to save their crops in excellent condition. There was some complaint that late sown grains were not coming up well, but early sown grains had made an excellent start in the first part of November. Com husking made rapid progress during October and by the first of November a, large part of the crop had been housed. Total production of corn is estimated to be 35,402,000 bushels, compared with 36,918,000 bush els harvested last year and the five-year average of 33.611.000 bushels. Peanut digging made rapid prog ress during October, and weather conditions were quite favorable for curing, so picking was well under way by the first of November. Early yield reports indicate an evarage number of bags per acre, but the weight per bag is lighter than usual, as generally happens dur ing a wet growing season. Total production is esti mated to be 146,000,000 pounds, which is slightly less 6 MONTHLY REVIEW than the October forecast of 149,650,000 pounds. The 1933 crop was 111,150,000 pounds and the five-year average 139,489,000 pounds. The harvest of apples had been practically completed by the first of November and owing to the excellent size and quality the crop was larger than had been expected. The total produc tion is estimated to be 9,275,000 bushels, compared with 10,900,000 bushels last year and the five-year average of 12,914,000 bushels. Commercial production is a much larger percentage of the total crop than usual because of a better set in commercial orchards and be cause of excellent quality permitting a larger per centage of the crop to be packed. Commercial pro duction is estimated at 2,187,000 barrels, compared with 1,750,000 barrels last year and the five-year aver age of 2,680,000 barrels. The yield of late potatoes was very irregular, some growers reporting fairly good crops while others reported very poor. Some late crops were damaged by frost. Total production this year, including the early crop, is 13,803,000 bushels, com pared with 8,649,000 bushels in 1933 and 15,989,000 bushels the average for the three years 1927-1931. Sweet potatoes yielded less than had been expected as wet weather during August and September had caused a heavy growth of vines. The commercial growers re port one of the smallest yields in recent years and the farm crop has also made a poor yield. Total produc tion is estimated to be 4,080,000 bushels, compared with the 1933 crop of 3,885,000 bushels. West Virginia weather was too dry in October and checked the crop improvement which resulted from late August and September rains, but most crops were matured or harvested before the dry spell set in. In the northern section of the State there is reported some shortage of water and pasturage. The estimated pro duction of corn this year is 11,990,000 bushels, com pared with 13,920,000 bushels in 1933 and a five-year average production of 11,290,000 bushels. Corn husk ing was well advanced on November 1. The Irish potato yield of 2,736,000 bushels exceeds last year's short crop of 2,331,000 bushels, but is much below the three-year average yield of 3,522,000 bushels. The West Virginia tobacco improved last month, and on November 1 a production of 3,250,000 pounds was forecast. This year’s per acre yield of 650 pounds exceeds 645 pounds in 1933, but the 1933 acreage was larger than this year's and the yield was 4,322,000 pounds. Many apple orchards failed this year, but the commercial crop of 2,475,000 bushels exceeds last year's yield of 2,100,000 bushels. North Carolina crops turned out well this year on the whole, and yields are above the five-year average except for cotton and tobacco, in which acreage re duction kept down total production. Corn was esti mated at 48,048,000 bushels on November 1, compared with a five-year average of 40,713,000 bushels. The 1934 yield of peanuts is 250,950,000 pounds, in contrast with average production of 231,181,000 pounds. The Irish potato crop yielded 10,324,000 bushels, while the five-year average yield was 7,573,000 bushels, and this year's production of sweet potatoes totaling 8,715,000 bushels contrasted with 6,794,000 bushels the five-year average. North Carolina's total apple crop this year is forecast to be 3,525,000 bushels, while the five-year average crop is 3,386,000 bushels. South Carolina, in point of yield per acre, is ex ceeded only by Alabama in comparison with a ten-year average production. On the other hand, preliminary estimates indicate that the total volume of all crops combined will be about 5 per cent less than either 1933 outturn or average yearly production for 1927-1931, the smaller volume being due to curtailment of cotton and tobacco acreages and to only fair returns from grain crops. The 1934 corn crop, estimated at 21,324,000 bushels, is 7 per cent below last year's yield of 22,808,000 bushels and 1 per cent above the average production in 1927-1931 of 21,215,000 bushels. The peanut crop of 10,240,000 pounds exceeds both the 1933 yield of 9,520,000 pounds and the three-year aver age of 8,055,000 pounds. South Carolina's Irish po tato crop of 2,625,000 bushels materially exceeded last year's yield of 1,744,000 bushels, but fell short of the three-year average crop of 2,944,000 bushels. This year's sweet potato crop of 4,674,000 bushels is larger than the 1933 yield of 4,648,000 bushels or the 19271931 average of 4,247,000 bushels. Production of sorghum syrup totaled 424,000 gallons this year, 416,000 gallons in 1933, and 376,000 gallons as the average in 1927-1931. Construction Building Permits Issued in October 1934 and 1933 CITIES Baltimore, M d.------Cumberland, M d...... 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— Asheville, N. C......... Charlotte, N. C.-----Durham, N. C_____ Greensboro, N. C.__ High Point, N. G....Raleigh, N. C--------Rocky Mount, N. G.... Salisbury, N. C....... Winston-Salem, N. C. Charleston, S. C____ Columbia, S. C.......... Greenville, S. C....... . Rock Hill, S. C____ Spartanburg, S. C.__ Washington, D. C.__ ! Permits Issued 1934 1933 Total Valuation 1934 1933 826 6 18 17 19 15 45 149 8 31 106 33 17 46 50 41 55 28 68 15 14 8 3 90 55 41 37 19 48 565 779 6 13 12 14 24 21 96 0 24 85 31 3 88 14 20 25 11 52 14 9 4 8 58 38 36 35 25 13 522 $1,998,600 $ 854,286 52,774 19,775 19,979 5,466 11,823 2,245 11,270 16,625 15,405 6,704 26,791 37,150 83,480 44,876 4,125 0 15,110 12,690 88,908 100,808 24,723 15,544 14,525 1,620 20,332 25,464 51,230 2,700 9,203 10,037 106,439 21,860 58,675 39,850 49,132 74,927 19,523 4,785 14,240 3,040 5,580 1,975 11,550 5,790 32,043 32,790 16,812 8,440 63,703 9,917 35,095 13,215 15,085 15,025 13,909 7,720 982,860 550,415 District Totals____ 2,473 2,080 $3,872,924 $1,945,739 Building permits issued by inspectors in thirty Fifth MONTHLY REVIEW 7 district cities in October 1934 totaled 2,473, with esti mated valuation amounting to $3,872,924, compared with 2,080 permits valued at $1,945,739 issued in Octo ber 1933, increases of approximately 19 per cent in number and 99 per cent in total valuation in the 1934 month. Twenty-three of the thirty cities reported larger valuation figures last month in comparison with October 1933 figures, the best record made for many months. Among the largest cities, higher 1934 figures were reported by Baltimore, Charlotte, Norfolk and Washington, but Charleston, W. Va., and Richmond fell below their October 1933 figures. Contracts actually awarded in October for construc tion work in the Fifth district, including both urban and rural projects, totaled $10,936,722, compared with $10,752,712 in October 1933 and $13,464,279 in Octo ber 1932, according to figures collected by the F. W. Dodge Corporation. Of the awards in October this year, $2,837,212, or 25.9 per cent, was for residential work, compared with $2,173,187, or 20.2 per cent, for this type of work in October 1933. Retail Trade, 31 Department Stores W holesale Trade, 58 Firms Richmond Baltimore Washington Other Cities District October 1934 sales, compared with sales in October 1933: +17.9 +13.0 +28.6 +18.9 +20.3 Total sales Jan.-Oct. 1934, compared with Jan.-Oct. 1933: +19.8 +13.1 +19.6 +23.4 +17.4 Oct. 31, 1934. stocks, compared with stocks on Oct. 31, 1933: + 6.8 —12.5 —14.3 + 1.4 —10.2 Oct. 31, 1934, stocks, compared with stocks on Sept. 30, 1934: + 5.8 + 4.0 + 8.8 + 7*6 + 6.4 Number of times stock was turned in October 1934: .37 .363 .416 .334 .381 Number of times stock was turned since January 1, 1934: 3.194 2.848 3208 2.79 3.02 Percentage of Oct. 1, 1934, receivables collected in October: 31.9 . 30.3 29.1 30.3 30.0 Note: Sales and stock changes are percentages. 21 7 Groceries Dry Goods 6 Shoes 13 Hardware 11 Drugs October 1934 sales, compared with sales in October 1933: +19.8 + 6.4 — 4.5 +28.6 +19.7 October 1934 sales, compared with sales in September 1934: + 52 —10.1 —11.7 +19.8 +11.9 Jan.-Oct. 1934 sales, compared with sales in Jan.-Oct. 1933: +18.7 +27.4 + 4.8 +30.0 +19.0 Oct. 31, 1934 stocks, compared with Oct. 31, 1933 stocks: +12.2(8*) — 5.9(3*) —28.4(4*) + 7.4(7*) Oct. 31, 1934, stocks, compared with Sept. 30, 1934 stocks: + 7.5(8*) —20.1(3*) —26.2(4*) — 2.5(7*) Percentage of Oct. 1, 1934, receivables collected in Oct.: 89.1(12*) 47.4(4*) 82.3(5*) 50.5(11*) 61.9(7*) ♦Number of reporting firms. All figures in the table are per centages. (Compiled November 21, 1934) 8 MONTHLY REVIEW BUSINESS CONDITIONS IN THE UNITED STATES (Compiled by the Federal Reserve Board) Volume of industrial production and factory em Distribution ployment, which usually shows little change at this The number of freight cars loaded per working day season, increased in October, reflecting chiefly the re decreased from September to October. Department sumption of activity at textile mills. Wholesale com modity prices, after declining in September and Oc store sales showed a seasonal increase and were at j about the same level, on a seasonally adjusted basis, tober, advanced in the first half of November. as in most other months since March. Rural sales of general merchandise, as reported by the Department of Industrial Production and Employment Commerce, increased by less than the usual seasonal amount following an unusually large increase in Sep Activity at industrial establishments, as measured by the Board's seasonally adjusted index, showed an in tember. crease from 71 per cent of the 1923-1925 average in September to 73 per cent in October. Among the ! Commodity Prices industries producing durable manufactures, output at Wholesale commodity prices, the steel mills increased from 23 per cent of capacity for Bureau of Labor Statistics’ weeklyas measured byfrom index, declined the month of September to 25 per cent for October, 1926 average week while output of automobiles and lumber declined. In 77.8 jper cent of theper cent in the in the endingending September 8 to 76.0 week No November activity at steel mills continued to increase vember 3 and then rose in the following two weeks and in the week ending November 24 was at about 28 to 76.7 per cent. The decline was largely in prices of per cent of capacity. Automobile production has de farm products and some declined further in connection with the preparation of i creases in the pricesfoods but there were also materials. of textiles and building new models. The production of non-durable manu Increases in the first half of November were largely factures in the aggregate showed a considerable growth in October, reflecting sharp increases at cotton, woolen, in the prices of farm products. The price of scrap and silk mills, offset in part by a decline in activity at steel also advanced, while lead and zinc declined. meatpacking establishments. The increase in output at textile mills after the strike in September brought Bank Credit output to a higher level than in August. Among the Excess reserves of member banks were about $1,minerals, daily output of crude petroleum declined in 910,000,000 on November 21, showing an increase of October and that of anthracite increased by an amount $150,000,000 in the preceding five weeks. The in smaller than is usual at this season. crease in reserves held was $200,000,000, of which Factory employment and payrolls in the country as $50,000,000 covered a growth in required reserves. a whole increased considerably between the middle of Additions to reserves resulted mainly from gold im September and the middle of October. Sharp increases ports and further issues of silver certificates. were reported at mills producing textile fabrics, while Loans and investments of reporting member banks in the automobile, shoe, and canning industries there in leading cities declined somewhat in the four weeks were declines of a seasonal nature. The value of construction contracts awarded was ending November 14, following an increase in the somewhat larger in October than in any other recent previous month. Substantial declines were shown in month. There was an increase in residential work as loans on securities and in holdings of securities other than those of the United States Government. Other well as in publicly-financed projects. loans, which had increased considerably in previous months, also showed some decline, while holdings of Agriculture direct obligations of the United States Government Department of Agriculture estimates, based on No and of securities fully guaranteed by the Government vember 1 conditions, indicate a cotton crop of 9,634,- increased considerably. Customers' deposits continued 000 bales, 26 per cent smaller than the 1933 crop, and to increase, while Government deposits declined. a corn crop of 1,372,000,000 bushels, 41 per cent There was a further decline in open-market rates on smaller than last season and 45 per cent smaller than bankers’ acceptances at the end of October to an offer the 1927-1931 average. The tobacco crop is also con ing rate of % per cent. Yields on short-term Gov siderably smaller than usual, while the white potato ernment securities and other short-term open-market crop is slightly above the five-year average. money rates showed little change.