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MONTHLY REVIEW
CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS

WILLIAM W. HOXTON, Chairman

and

F ederal Reserve Agent

FEDERAL RESERVE BANK OF RICHMOND

RICHMOND, VIRGINIA
EPTEMBER trade showed the
usual seasonal advance over the
volume of trade in August, but the
increase was somewhat less than occurs
in most years, chiefly due to the fact
that August business was better than
in most years in comparison with
earlier months of the year. In bank­
ing circles, rediscounts at the Federal
Reserve Bank of Richmond declined
somewhat during September, but the
circulation of Federal reserve notes
showed the usual seasonal increase.
Member banks increased their reserve
balances at the reserve bank, slightly
increased their loans, and experienced
a rise in their demand deposits. Time
and savings deposits in member banks and mutual sav­
ings banks combined declined somewhat during Sep­
tember. Debits to individual accounts, reflecting trans­
actions passing through the banks of leading cities in
the Fifth district, increased seasonally during four
weeks ended October 11 in comparison with the pre­
ceding four weeks, ended September 13, and in nearly
all cities exceeded debits in the four weeks ended Octo­
ber 12, 1932. The commercial failure record in the
Fifth district for September was excellent, the number
of failures declining 52 per cent and aggregate liabilities
involved decreasing 37.7 per cent in comparison with
the figures for the month of September last year. Em­
ployment conditions did not change very much during
the past month, but on the whole showed some further
betterment. Coal production declined unseasonally in
September in comparison with August production, but
exceeded production for September last year, the de­
cline last month being due to exceptionally high figures
for August. Textile activity in the Fifth reserve dis­
trict declined further in September, in keeping with a
National slowing down of output in this field, but the
rate of operations was still relatively high in compari­
son with most earlier months of this year. Cotton prices
in September were somewhat above those of August,
but did not advance as much as growers had expected,




OCTOBER 31, 1933
and very little cotton has been sold
since a Government loan of 10 cents
per pound was proposed. Condition
figures on this year's cotton crop as of
October 1 indicated a yield of 12,885,000
bales, nearly as large as the 1932
yield of 13,002,000 bales, and produc­
tion in the Fifth district cotton grow­
ing states is slightly larger than last
year’s production, in spite of materially
reduced acreage this year. The Caro­
linas and Virginia, leading tobacco
growing states, have much larger crops
of good quality this year than they had
in 1932, and prices this year are also
somewhat better than they were a year
ago. Building permits issued in Sep­
tember, and contracts actually awarded for construc­
tion work, while still quite low in comparison with pre­
depression figures, show some signs of improvement in
a majority of the reporting cities and towns. Retail
trade as reflected in department store sales was better
last month than in September last year, and whole­
sale trade in five leading lines also compared favorably
with September 1932 figures. The farmers of the dis­
trict had a generally good year for production and har­
vesting of their crops, and on the whole the results
turned out better than last year. Food and feed crops
yielded well, and were extensively grown, and cash
crops with the exception of apples made good yields.
Prices in most cases are also somewhat higher for agri­
cultural products this fall than a year ago, and it is
probable that farmers will be able to liquidate some
previous indebtedness from their 1933 returns. To­
bacco growers especially should be in a much stronger
position than a year ago, because of a much larger crop
and somewhat higher prices this year.

Reserve Bank Statement
Rediscounts for member banks at the Federal Re­
serve Bank of Richmond continued to decline between
the middle of September and the middle of October,

MONTHLY REVIEW

2

000 omitted
ITEMS

Oct. IS
1933

Sept. 15
1933

O ct 15
1932

Rediscounts held ---------------- $ 8,916 $ 10,452 $ 20,251
242
Open market paper--------------239
2,157
Government securities ---------74,203
67,971
47,133
Total earning assets_______
69,541
83,361 78, 662
Circulation of Fed. Res. notes.. 146,846 138,869 102,961
Members’ reserve deposits.......
67,342
70,856
50,029
Cash reserves ------------------ 154,158 147,986 102,015
62.72
Reserve ratio _____________
67.03
67.78

liquidation of agricultural paper more than offsetting
increased fall borrowing by mercantile firms. Redis­
counts held by the Richmond bank dropped by $1,536,000 during the month. The portfolio of open market
paper purchased in the market and from member banks
changed little, increasing by $3,000, but the holdings
of Government securities rose by $6,232,000. These
changes resulted in a net increase of $4,699,000 in total
earning assets between September 15 and October 15.
The circulation of Federal reserve notes of the Rich­
mond bank rose seasonally last month, by $7,977,000,
and member banks increased their reserve deposits dur­
ing the same period by $3,514,000. Member banks are
carrying excess reserves with the reserve bank at this
time. The several changes mentioned in the statement,
with others of less importance, raised the cash reserves
of the Federal Reserve Bank of Richmond by $6,172,000 between the middle of September and the middle
of October, but the increases in note circulation and
reserve deposits reduced the ratio of cash reserves to
note and deposit liabilities combined by three-quarters
of a point during the month.
In comparison with condition figures shown on the
reserve bank’s statement for October 15, 1932, the cor­
responding figures for October 15, 1933, show material
changes in nearly all items. Rediscounts for member
banks declined by $11,335,000 during the year, and
holdings of open market paper decreased by $1,915,000,
but these were more than offset by an increase during
the year of $27,070,000 in Government securities
owned, and total earning assets therefore rose by $13,820,000. The volume of Federal reserve notes in ac­
tual circulation on the 1933 date was much higher than
the volume outstanding a year earlier, an increase of
$43,885,000 being shown. Member banks, with sur­
plus funds on hand this year, increased their aggregate
reserve balance at the Federal Reserve Bank of Rich­
mond by $20,827,000 between October 15, 1932, and
October 15, 1933. Cash reserves of the Richmond
bank rose by $53,143,000 during the year, and the ratio
of cash reserves to note and deposit liabilities combined
rose by 4.31 points.




3

Member Bank Statement
000 omitted
ITEMS

Oct. 11
1933

Sept. 13
1933

O ct 12
1932

Loans on stocks and bonds (In­
cluding Governments) _____ $ 61,612 $ 59,441 $ 63,254
>
All other loans_____________
114,629 114,381 121,761
Total loans and discounts__ 176,241 173,822 185,015
Investments in securities_____ 160,562 160,837 136,567
Reserve Bal. with F. R. Bank....
30,255
26,569
17,627
Cash in vaults_____________
8,697
10,307
10,149
Demand deposits __________
188,470 183,673 158,822
Time deposits-------------------- 130,465 130,268 135,485
Borrowed from F. R. Bank.__
124
268
955

The accompanying table shows totals of the principal
items of condition reported by twenty-nine member
banks in ten leading cities of the Fifth Federal Reserve
District as of three dates, October 11 and September
13, this year, and October 12 last year, thus affording
opportunity for comparison of the latest available fig­
ures with those of the preceding month and year. It
should be understood that the figures shown are not
necessarily the highest or lowest that occurred during
the periods under review.
Loans by the twenty-nine reporting member banks
increased slightly during the period between Septem­
ber 13 and October 11, loans on stocks and bonds rising
by $2,171,000 and all other loans rising by $248,000, a
total of $2,419,000. Investments in securities declined
during the month by $275,000. The reporting banks
increased their reserves at the Federal Reserve Bank
of Richmond by $3,686,000 between September 13 and
October 11, and their cash in vaults rose by $158,000.
Deposits rose by $4,994,000 last month, demand de­
posits gaining $4,797,000 and time deposits increasing
$197,000. The twenty-nine banks further reduced their
borrowing at the reserve bank, and on October 11 only
one of them was rediscounting at the Richmond bank.
Between October 12, 1932, and October 11, 1933,
total loans in the twenty-nine reporting banks declined
by $8,774,000, of which $1,642,000 was in loans on
securities and $7,132,000 was in all other loans. On
the other hand, the reporting institutions increased their
investments in securities, chiefly in Governments, by
$23,995,000 during the year, and also increased their
reserve balances at the Federal Reserve Bank of Rich­
mond by $12,628,000, much of which is in excess of
requirements. Cash in the vaults of the twenty-nine
banks rose by $1,610,000 between October 12, 1932,
and October 11, 1933, and rediscounts at the Federal
reserve bank declined by $831,000 during the same pe­
riod. Aggregate deposits rose during the year, an in­
crease of $29,648,000 in demand deposits more than
offsetting a decline of $5,020,000 in time deposits.

Time and Savings Deposits
Time deposits in twenty-nine reporting member
banks and aggregate deposits in eleven mutual savings
banks in Baltimore totaled $314,960,813 at the end of
September 1933, a lower figure than either $315,057,864 reported at the end of August this year or $341,867,866 at the end of September 1932.

MONTHLY REVIEW

Debits to Individual Accounts
CITIES

Commercial Failures

000 omitted
Total debits, four weeks ended
Oct. 12,
Oct. 11,
Sept. 13,
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.

$ 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

$ 7,989
179,735
9,683
22,670
32,014
10,536
4,526
4,230
23,714
5,144
10,820
4,443
8,459
10,962
5,077
25,537
2,448
10,942
89,690
15,104
123,716
5,118
21,442

$ 7,460
272,228
10,591
23,608
31,913
12,467
4,905
4,630
16,087
10,315
9,777
5,334
8,684
11,941
5,980
30,974
2,796
12,038
103,972
17,423
179,983
7,187
22,381

Fifth District Totals

$789,896

$633,999

$812,674

The accompanying table shows debits to individual,
firm and corporation accounts in clearing house banks
in the leading cities of the Fifth Federal reserve dis­
trict for three equal periods of four weeks each, ended
October 11 and September 13, 1933, and October 12,
1932.
During the four weeks ended October 11, 1933, ag­
gregate debits to individual accounts showed a seasonal
increase of $155,897,000, or 24.6 per cent, over debits
during the preceding like period this year, ended Sep­
tember 13, the increase being due in part to quarterly
settlements on October 1 and in part to the opening
of early fall trade during the later period. All of the
twenty-three reporting cities showed higher figures for
the more recent period.
In comparison with figures reported for four weeks
last year, ended October 12, 1932, corresponding fig­
ures for the four weeks ended October 11, 1933, show
a total decrease of $22,778,000, or 2.8 per cent, but
this decrease is due entirely to lower figures this year
in Baltimore, 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 deposits, debits in the three cities have been
much lower than debits a year ago. Eighteen 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 12.7 per cent in
debits. Part of the increase in the twenty cities is no
doubt due to somewhat higher price levels this year, but
part of it is probably due to a real increase in the
volume of business.




3

The record of business failures in both the Fifth
reserve district and the United States was quite favor­
able in September, in comparison with the records for
September in other recent years. Insolvencies in the
United States last month numbered 1,116, compared
with 2,182 insolvencies reported for September 1932,
a decrease of 48.9 per cent, and in the Fifth district
there were 72 failures in September, compared with
150 in September last year, a decrease of 52 per cent.
In aggregate liabilities involved in last month’s insol­
vencies, the district did not compare as favorably with
the National improvement, the United States decreasing
61.1 per cent and the Fifth district 37.7 per cent in
comparison with liabilities in September 1932. Aggre­
gate liabilities in the United States last month totaled
$21,846,906, compared with $56,127,634 in September
last year, while liabilities in the district totaled $1,644,076 in September 1933 and $2,638,430 in Septem­
ber 1932. The number of failures in the Fifth dis­
trict last month was the smallest for any September
since 1929, and with the exception of August 1931 and
September 1929 was the lowest reported for any month
in the past ten years. Every one of the twelve Fed­
eral reserve districts reported fewer failures and lower
liabilities in September 1933 than in September 1932.

Employment
Conditions in employment did not change materially
in the past month, but at present they are better than
they were during the first half of this year or in the
fall of 1932. The largest group of unemployed per­
sons now is in the building trades field. Much has been
planned in the way of construction, especially in public
works, but relatively little of it has actually been started.
Since the NRA began to function, most large firms and
corporations have added workers to their forces, and
many of the smaller concerns have also taken on one
or more additional workers. Re-employment has been
more marked in industrial, clerical and retail sales
forces, and less in building and unskilled labor groups.
There does not appear to have been any appreciable
increase in the demand for domestic help.

Coal Production
There was an unseasonal decrease in the production
of bituminous coal in September, and 29,500,000 net
tons were mined, compared with 33,910,000 tons dug
in August this year and 26,314,000 tons in September
1932. The unusual decline in September in compari­
son with August production was probably due to the
exceptionally high figures for August rather than to
low figures in the later month. Total production of
soft coal in the United States in the present calendar
year to October 7 amounted to 243,732,000 net tons,
compared with 217,330,000 tons mined during the cor­
responding period last year, and 400,262,000 tons in
1929, before the depression began.
In its September 23 report, the Bureau of Mines,
Department of Commerce, gave bituminous coal pro­

4

MONTHLY REVIEW

duction figures for the month of August, and West
Virginia with 10,427,000 tons continued to lead the
country, Pennsylvania ranking second with 8,690,000
tons. Total production in the Fifth district in August
1933 was 11,525,000 tons, or 34.0 per cent of National
production, compared with 7,527,000 tons, or 33.5 per
cent of National production, mined in the Fifth district
in August 1932.

bales ginned in 1932. Virginia’s prospective yield of
38,000 bales is the same as the figure a month earlier
and compares with 34,000 bales grown in 1932. Total
production in the Fifth district is forecast at 1,418,000
bales, an increase of 54,000 bales during September
and 8,000 bales more than last year.
Ginning figures to October 1, released by the Census
Bureau on October 9, showed 5,851,415 bales ginned
from this year’s crop, compared with 4,835,990 bales
Textiles
of last year’s crop ginned before October. On the
whole, cotton opened earlier this year than in 1932,
Activity in Fifth district textile mills declined fur­ and a larger percentage of the crop was ginned prior
ther in September, and actually dropped below the level to October 1. Picking in the Carolinas has been nearly
of September 1932, but this was largely due to an ex­ finished, and in some sections gins have begun running
ceptional rise in operations last year. The September only part time.
1933 output of textile products was still relatively high.
Cotton consumption in the United States in Septem­
Fifth district mills consumed 234,801 bales of cotton
ber 1933 showed an unseasonal decrease under con­
in September, compared with 260,402 bales used in
August this year and 235,734 bales consumed in the sumption in August, and was only a little larger than
district in September 1932. Last month North Caro­ in September last year. The number of bales used
lina mills consumed 127,573 bales, South Carolina mills totaled 499,486 in September 1933, compared with
used 96,878 bales, and Virginia mills 10,350 bales. The 588,570 bales used in August this year and 492,742
North Carolina figure was higher than the one for bales in September 1932. Total consumption this cot­
September 1932, but South Carolina and Virginia both ton year—August 1 through September—amounted to
used less cotton last month. Consumption of cotton in 1,088,056 bales, against 897,239 bales consumed in the
the Fifth district in September amounted to 47.01 per corresponding two months of last season. Manufac­
cent of National consumption, compared with 44.24 turing establishments held 1,160,457 bales on Sep­
per cent of National consumption used in the district tember 30, compared with 1,159,897 bales held on Au­
in August this year and 47.84 per cent in September gust 31 and 1,084,549 bales on September 30, 1932.
Public warehouses and compresses held 7,374,556 bales
1932.
in storage at the end of September this year, compared
with 5,785,579 bales so held a month earlier and 7,Cotton Statistics
997,797 bales on September 30 last year. September
Spot cotton prices advanced during the second half exports totaled 869,244 bales, compared with 530,627
of September, but declined in early October sufficiently bales exported in August and 733,665 bales sent abroad
to wipe out the September rise. On September 15, the in September 1932. Total exports during the two
average price paid on ten Southern markets for 7/8 months of the present cotton year—August and Sep­
inch upland short staple cotton of middling grade was tember—totaled 1,399,871 bales, an increase over 1,185,9.11 cents per pound. The price rose to 9.20 cents on 819 bales shipped over seas during the corresponding
September 22 and to 9.53 cents on September 29, but two months last year. Spindles active at some time
on October 6 dropped to 9.06 cents. On October 13, during September numbered 26,002,148, compared with
the latest date for which quotations are available, the 25,884,704 in August this year and 23,835,106 in Sep­
average price on the ten markets was 8.89 cents. Com­ tember 1932.
paratively little cotton has been sold in the Fifth dis­
Cotton growing states consumed 401,373 bales in
trict since the Government's proposal to advance grow­ September, compared with 464,343 bales in August and
ers 10 cents per pound on this year’s crop, the farmers 409,011 bales in September 1932. Last month’s con­
holding their cotton until the plan can be worked out sumption in the cotton growing states amounted to
and put into operation.
80.36 per cent of National consumption, a higher per­
Condition figures on the 1933 cotton crop, based on centage than 78.89 per cent in August this year but less
the October 1 condition, were issued by the Department than 83.01 per cent in September 1932. Of the 401,373
of Agriculture on October 9. This report raised the bales of cotton consumed in the cotton growing states
estimate of probable production in the United States in September, Fifth district mills used 234,801 bales,
to 12,885,000 equivalent 500-pound bales, in compari­ or 58.5 per cent, a higher figure than 64 per cent of
son with an estimate of 12,414,000 bales on September Southern consumption attained by Fifth district mills
1, 1933, and final ginnings of 13,002,000 bales in 1932. in September last year.
The October 1 report raised this year’s probable pro­
duction figures for North and South Carolina over the Tobacco
September 1 estimates, but left the Virginia estimate
South Carolina tobacco markets were open only 6
unchanged. South Carolina’s yield is estimated at 720,000 bales, compared with 690,000 bales on September days in September, due to a sales holiday as a protest
1 and 716,000 bales grown last year. North Carolina’s against prices which growers considered unsatisfactory.
estimated crop of 660,000 bales compares with an esti­ During the 6 days, the markets sold 17,592,016 pounds
mate of 636,000 bales on September 1, and 660,000 of producers’ tobacco, at $12.58 per hundred pounds,




MONTHLY REVIEW
compared with September 1932 sales totaling 20,201,276
pounds at $11.25 per hundred. Total sales for the 1933
season to the end of September amounted to 50,072,795
pounds, an increase of 17,586,067 pounds over 1932
sales to the same date, in spite of the September holiday
this year. The larger sales this year are of course due
to the greater yield, which is expected to be 78,200,000
pounds in comparison with last year’s short crop of
39.236.000 pounds. Mullins led in September sales
this year with 6,187,842 pounds, Lake City ranking
second with 3,381,038 pounds.
North Carolina tobacco markets also observed the
sales holiday mentioned in South Carolina, and were
open only a few days in September. Sales for growers
totaled 57,342,749 pounds, at $12.04 per hundred
pounds, with only 84 warehouses open, while in Sep­
tember 1932 only 66,600,614 pounds were sold in 110
warehouses, at an average price of $11.57 per hundred
pounds. The forecasted production of tobacco in North
Carolina this year is 520,000,000 pounds, compared
with only 294,000,000 pounds grown in 1932. Green­
ville led in September 1932 sales with 8,110,010 pounds,
but Wilson was a close second with 8,044,450 pounds.
Fairmont paid the highest average price last month,
$14.69 per hundred pounds. North Carolina tobacco
is showing considerable variation in quality, but the
average is much better than usual.
Virginia markets did not open until the middle of
October, and official figures on sales are not yet avail­
able, but unofficial information shows large sales at
prices probably averaging around $5.00 per hundred
pounds above early season prices last year. Tobacco
harvesting made rapid progress during September and
by the end of the month practically the entire crop had
been housed, compared with only about 83 per cent of
the 1932 crop gathered prior to October. As weather
conditions were unusually favorable for harvesting and
curing, an excellent quality is expected except where
tobacco was badly damaged by t he August storm.
Total production of tobacco in Virginia this year is
estimated at 83,145,000 pounds, compared with only
53.084.000 pounds produced in 1932. While the 1933
crop is approximately 50 per cent above the 1932 crop,
it is the smallest crop except last year’s since 1900.
West Virginia tobacco is expected to yield 5,250,000
pounds this year, compared with 2,312,000 pounds in
1932, but this year’s acreage was nearly double the 1932
acreage.
Maryland tobacco suffered quite severely from the
August storm, and some acreage was abandoned. Pro­
duction for 1933 was estimated on October 1 at 17,388.000 pounds, a reduction of nearly 3,000,000 pounds
under the September 1 estimate and materially lower
than the 1932 crop of 22,750,000 pounds.

Agricultural Notes
Nineteen thirty-three has been a favorable year for
growth of agricultural products, generally speaking,
and farmers in the Fifth reserve district are in a more
favorable position this fall than they were a year ago.
The two leading cash crops, cotton and tobacco, turned




5

out well in both quantity and quality, and prices, while
not as high as had been hoped, are better than a year
ago.
Maryland weather was favorable in September and
prospects for growing crops improved generally, but
estimates of production for most crops were about the
same on October 1 as on September 1. The com crop
in Maryland this year is estimated at 16,356,000 bush­
els, compared with 16,440,000 bushels harvested in
1932, and this year’s oat crop of 1,320,000 bushels
compares with 1,425,000 bushels threshed last year.
Tame hay yields total 491,000 tons this year, an in­
crease over 470,000 tons cut in 1932, and the average
condition of pastures in Maryland on October 1 was
83 per cent against only 45 per cent on the same date
a year ago. Irish potatoes declined in production this
year to 2,610,000 bushels from the 1932 yield of 2,945.000 bushels, and sweet potatoes produced only
840.000 bushels in 1933 in comparison with 920,000
bushels last year. The commercial apple crop of Mary­
land is only 245,000 barrels this year, compared with
252.000 barrels picked in 1932, but the fruit this year
is of better quality, although not up to a high grade.
Virginia crops this fall have matured in excellent con­
dition and harvest progressed very satisfactorily during
September. Most of the com crop had been cut and
shocked by the first of October and a few fields had
been husked. Yields in the counties where the storm
damage had been severe were turning out better than
expected, but in the Southern and Southwestern dis­
tricts dry weather injured late crops and the yields
were not as heavy as had been thought they would be.
Total production of com in Virginia is expected to be
34.385.000 bushels, which is slightly less than the Sep­
tember forecast but considerably better than last year’s
crop of 26,388,000 bushels. The peanut crop, as a re­
sult of dry weather, matured much earlier than usual
and many growers had commenced to dig by the end
of September. The frequent rains in August caused
a heavy growth of vines but owing to dry weather in
September the vines did not produce as well as their
appearance indicated. The total production is now
estimated at 109,250,000 pounds, which is 7 per cent
below the September forecast, and much less than the
1932 yield of 140,000,000 pounds. Late hay turned
out unusually well and weather conditions were ex­
cellent for harvest. Supplies of hay are quite large
throughout the State. Total production is estimated at
940.000 tons, compared with 772,000 tons last year.
Pastures declined rapidly during September in the
Western, Southwestern and Southern districts, but in
the Northern and Eastern districts the condition was
good. Prospects for late Irish potatoes improved
slightly during September but the yield is still consid­
erably below average. The total production of pota­
toes, including the early crop, is 8,649,000 bushels,
compared with 9,682,000 bushels last year. Sweet
potatoes improved during September and yields are
somewhat above expectations. Production of sweet
potatoes is estimated at 4,625,000 bushels, compared
with 3,610,000 bushels in 1932. Prospects for apples
declined during September on account of damage from
disease and worms. Total production is estimated to

6

MONTHLY REVIEW

be 10,900,000 bushels, compared with 6,830,000 bush­
els last year and 12,671,000 bushels the 5-year aver­
age. The commercial crop has been a great disap­
pointment, due to the unusually poor quality. A much
smaller percentage than usual of the crop is packing
No. 1 grade, and many growers have sold their
entire crop in bulk without packing. A very large
percentage of the crop produced in commercial or­
chards has been shipped to by-product plants. There
are a few good crops, but generally the quality is the
poorest on record. Commercial production of apples
is forecast at 1,800,000 barrels, which is 11 per cent
less than the indicated yield a month ago and com­
pares with last year’s crop of 1,963,000 barrels and the
5-year average of 2,720,000 barrels.
West Virginia experienced mild weather during Sep­
tember, no damage from early frosts, and adequate rain­
fall ; as a result, prospects for most growing crops im­
proved during the month. All but the very late corn
had matured by October 1, and the crop yielded 13,311.000 bushels, compared with 11,150,000 bushels in
1932. The oats crop was poor this year, and total pro­
duction was only 2,489,000 bushels, compared with 3,036.000 bushels harvested last year. The hay crop was
better than normal this year, and farmers were in many
cases able to make an additional cutting in September.
Total production of hay is now estimated at 681,000
tons, compared with 558,000 tons cured in 1932. The
West Virginia Irish potato crop is much smaller than
usual. Hot dry weather during June injured the early
potatoes and too much moisture caused many of the
tubers in the late crop to rot. Total production of
Irish potatoes now estimated at 2,860,000 bushels com­
pares with 3,608,000 bushels produced in 1932. The
apple crop was damaged further during September by
codling moth worms. Worm stings also caused a great
loss by lowering the grade and market value of the
fruit. The present estimate of the commercial crop
is 740,000 barrels, compared with 833,000 barrels in
1932 and a 5-year average production of 1,340,000
barrels.
North Carolina weather in September was favorable
for harvesting, although dry weather in the Piedmont
counties held up fall plowing and preparations for
planting small grains to a serious degree. Com pror
duction in North Carolina is estimated to be 42,550,000
bushels this year, compared with 34,830,000 bushels in
1932 and a 5-year average of 39,328,000 bushels. The
oat crop turned out 1,568,000 bushels, compared with
2.030.000 bushels in 1932. Hay yields total 641,000
tons this year, compared with 565,000 tons last year.
The 1933 yield of sweet potatoes is 8,360,000 bushels,
compared with 7,990,000 bushels in 1932. The North
Carolina apple crop of 5,254,000 bushels is much above
last year’s yield of 1,825,000 bushels. Peanut produc­
tion is expected to total 192,000,000 pounds this sea­
son, compared with 254,740,000 pounds harvested in
1932.
South Carolina crop prospects changed little during
September and October 1 estimates of production for
most crops were about the same as those made on
September 1. Corn production in Sbuth Carolina this
year totaled 22,330,000 bushels, compared with 17,885.000 bushels in 1932, but the hay crop of 204,000




tons is below last year’s yield of 210,000 tons. Sweet
potatoes turned out only 4,720,000 bushels in 1933,
compared with 6,072,(X ) bushels in 1932. Peanut pro­
X
duction in South Carolina totaled 9,800,000 pounds
this year, compared with 10,240,000 pounds harvested
last year, but this year’s apple crop of 279,000 bushels
exceeds 164,000 bushels gathered in 1932. The to­
bacco and cotton crops, mentioned elsewhere in this
Review, account for much of the increase in agricul­
tural production in South Carolina this year in com­
parison with 1932.

Construction

Building Permits Issued in September 1933 and 1932

Permits Issued
Total Valuation
1932
1933
1933
1932
1,102 $ 524,460 $1,649,280
Baltimore, Md............ 783
3,459
4,450
9
Cumberland, Md.........
9
26,988
8,831
Frederick, Md............
14
17
10,175
Hagerstown, Md........
3,680
16
10
16,945
23,150
33
Salisbury, MdL ------20
5,882
32,558
12
Danville, Va..............
26
15,846
27,835
Lynchburg, Va...........
22
31
37,040
75,728
Norfolk, Va...............
86
92
1,160
675
Petersburg, Va...........
4
4
21,455
Portsmouth, Va.........
11,680
26
26
122,721
49,916
Richmond, Va............
89
103
9,509
11,394
33
Roanoke, Va..............
23
5,215
3,050
2
Bluefield, W. Va.......
8
10,811
20,136
Charleston, W. Va—
64
69
10,115
6,115
Clarksburg, W. Va—
24
26
53,588
10,455
Huntington, W. Va—
23
24
15,580
9,724
Asheville, N. C-------17
18
39,231
19,920
Charlotte, N. C.-----34
16
8,445
50,900
Durham, N. C-------7
13
7,113
48,983
Greensboro, N. C___
26
43
6,607
12,450
High Point, N. C---11
8
7,185
10,600
14
Raleigh, N. C._____
10
3,095
Rocky Mount, N. C.~
60
4
1
7,135
5,250
Salisbury, N. C.____
4
7
Wilmington, N. C.....
13,050*
...
15*
11,225
11,300
42
Winston-Salem, N. C.
40
9,280
7,600
42
Charleston, S. C.........
28
16,664
13,081
Columbia, S. C.____
41
18
Greenville, S. C____
22
4,110
14,100
19
12*560
Rock Hill, S. C
2,490
13
11
5,731
24
4,070
Spartanburg, S. C.....
18
Washington, D. C_
_
468,515
971,280
560
483
Totals --------- ----- 2,047
2,377 $1,536,925 $3,081,661
♦Not included in totals.
CITIES

Building permits issued by building inspectors in
thirty-one cities in the Fifth reserve district in Sep­
tember totaled 2,047, with estimated valuation amount­
ing to $1,536,925, a decrease of 14 per cent in number
in comparison with 2,377 permits issued in September
1932, and a decrease of 50 per cent under September
1932 valuation figures totaling $3,081,661. Sixteen of
the thirty-one cities reported higher figures for the
1933 month, but all of the five largest cities except
Richmond showed materially lower figures.
Contracts awarded in September for construction
work in the Fifth district, including both rural and
urban projects, totaled $9,839,130, compared with $6,156,503 in August 1933 and $10,684,728 in Septem­
ber 1932. Of the awards in September this year, $1,783,485, or 18.1 per cent, was for residential work,
while last year residential contracts in September to­
taled $2,076,918, or 19.4 per cent of all awards.

■ft,...... ...

... rr............ r.

1

...—
..—=

MONTHLY REVIEW

Retail Trade, 31 Department Stores

Richmond Baltimore Washington Other Cities District

September 1933 sales, compared with sales in September 1932:
+ 4.4
+ 5.5
— 2.5
— 12
+ 1.6
January-September 1933 sales, compared with Jan.-Sept. 1932:
— 4.6
— 7.4
—10.7
— 7.3
— 8.4
Sept. 30, 1933, stocks, compared with stocks on Sept. 30, 1932:
+14.9
+322
+31.1
— 5.9
+25.9
Sept. 30, 1933, stocks, compared "with stocks"oiiTAugT3ir 1933:
+23.7
+19.7
+15.9
+13.0
+17.9
Number of times stock was turned in September 1933:
.326
.269
252
269
267
Number of times stock was turned since January 1, 1933:
2.8
2.501
2.51
2.071
2.489
Percentage of Sept. 1, 1933, receivables collected in September:
25.8
19.9
23.0
23.4
21.9




7

W holesale Trade, 59 Firms___________________
21

7

Groceries Dry Goods

6

Shoes

13

Hardware

12

Drugs

September 1933 sales, compared with sales in September 1932:
+18.4
+ 5.5
+39.5
+36.1
+ 3.9
September 1933 sales, compared with sales in August 1933:
+ 6.4
+27.5
+ 7.0
— 7.8
+ 9.9
Jan.-Sept. 1933 sales, compared with Jan.-Sept. 1932 sales:
+ 4.1
+35.3
+26.9
+24.8
— 9.5
Sept. 30, 1933, stocks, compared with Sept. 30, 1932, stocks:
+10.0(8*) +77.9(3*) +21.5(5*) + 3.9(7*)
Sept. 30, 1933, stocks, compared with Aug. 31, 1933, stocks:
+ 3.8(8*) — 1.0(3*) — 6.6(5*) + 2.4(7*)
Percentage of Sept. 1, 1933, receivables collected in September:
71.9(12*) 32.0(4*)
56.9(6*)
35.3(11*) 50.9(8*)
♦Number of reporting firms.

(Compiled October 21, 1933)

8

MONTHLY REVIEW

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

During September and the first half of October, in­
dustrial activity declined, as it had in August, follow­
ing the rapid expansion of the spring and early sum­
mer. Factory employment and payrolls increased fur­
ther between the middle of August and the middle of
September.

Production

Industrial production, as measured by the Board’s
seasonally adjusted index, declined from 91 per cent
of the 1923-1925 average in August to 84 per cent in
September. Activity decreased in most lines of in­
dustry, and particularly in those in which output had
increased rapidly in earlier months. Production of
steel, lumber, cement, bituminous coal, and petroleum
declined considerably and automobile output was re­
duced. Deliveries of silk to mills were small in Sep­
tember, while consumption of cotton and wool, although
reduced during the month, was nevertheless larger than
in other recent years at this season. Meat packing
plants were more active partly because of processing
of pigs under the Government’s emergency marketing
program; and output of flour was larger than the ex­
ceptionally small volume produced in August.
In the first half of October further declines in out­
put of automobiles, bituminous coal and petroleum were
reported. Steel mill activity, after increasing in the
first half of October, receded in the third week.

Employment

Employment of factory workers increased between
the middle of August and the middle of September,
and total earnings were larger, partly as a result of
further advances in wage rates, and the expansion of
operation in seasonally active industries such as can­
ning. Employment in public utilities, railroads, stores,
and mines also increased and it is estimated that about
600,000 industrial wage-earners found work during the
period.
Preliminary reports for the first half of October
indicate some decrease in employment and a continu­
ation of about the same volume of earnings in basic
manufacturing industries.

of chain variety stores continued in somewhat larger
volume than in 1932.
On the railroads, average daily freight shipments
during September increased by somewhat less than is
usual in the early autumn, but were in larger volume
than at any time since the latter part of 1931. In the
first two weeks of October car loadings were at a higher
level than in late September.

Prices
During September and the first two weeks of Oc­
tober the general average of wholesale prices in the
United States was relatively stable at about 71 per
cent of the 1926 average, reflecting, however, widely
divergent movements in prices of individual commod­
ities. Prices of raw materials traded on organized
exchanges declined sharply during the first two weeks
of October and then recovered somewhat. There have
been further advances during recent weeks in prices
of fuels, iron and steel, building materials, and housefurnishings, while prices of cotton textiles and leather
have declined.
Retail prices of food showed little change in Septem­
ber, while prices of clothing continued to advance.

Foreign Exchange
The value of the dollar in the foreign exchange
market fluctuated around 65 per cent of its gold parity
during the latter part of September and the first half
of October, advanced to 71 per cent in the third week,
and declined to 70 per cent on October 23.

Bank Credit

Excess reserves of member banks increased by $100,000,000 between September 13 and October 20, in con­
sequence of the purchase by the Federal reserve banks
of $170,000,000 of United States Government securi­
ties during the period, offset in part by a further de­
cline in discounts and a seasonal increase in the de­
mand for currency. While these purchases of United
States Government securities were made chiefly in New
York City, member bank funds arising from these pur­
chases were transferred to other parts of the country
Construction
through expenditures in outlying areas by Federal
Construction contracts awarded increased in Septem­ agencies, and through payment for crops marketed.
At reporting member banks in leading cities there
ber to the highest level for the year according to reports
by the F. W. Dodge Corporation, the largest volume of was little change in loans and investments during this
new awards being for public works and for other non- period; a decline in the volume of loans on securities
residential projects. In the third quarter of the year was offset by growth in all other loans.
value of construction contracts was 25 per cent of the
Money rates in the open market continued at low
1923-1925 average.
levels. On October 20 the Federal Reserve Bank of
New York reduced its buying rate on bills from a
Distribution
range from 1 to 1J4 Per cent for different maturities
Sales at department stores in leading cities increased to a range from y2 to 1 per cent. The rediscount rate
less than seasonally in September, following an un­ at New York was reduced from 2y2 per cent to 2 per
usually large increase in sales in August. Trade re­ cent, effective October 20, and on October 21, the Fed­
ports indicate that sales volume was affected by un­ eral reserve banks of Cleveland and Chicago reduced
seasonably warm weather and by price advances. Sales their rediscount rates from 3 per cent to 2% per cent.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102