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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.