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MONTHLY REVIEW
CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS
WILLIAM W. HOXTON,
C h a irm 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_____________________________________________________OCTOBER 31, 1935
most of the month by a general strike
ALL trade opened up well in the
in the industry. Cotton prices showed
Fifth Federal Reserve district in
a rising tendency during the past
September and early October, and not
month. Condition figures on this year’s
only reached seasonal levels in com
parison with trade in recent months
cotton crop as of October 1 indicated
a yield of 11,464,000 bales, an insig
but exceeded the volume of business
nificant change from September 1 fig
done during the same period last year.
In banking circles, rediscounts at the
ures but 1,828,000 bales more than the
Federal Reserve Bank of Richmond
1934 yields. Prospective yield rose
declined between September IS and
8.000 bales in the Fifth district during
October 15, while the circulation of
September and on October 1 was
Federal reserve notes showed a sea- •
48.000 bales above 1934 production, all
sonal increase as crop marketing and
of the increase being in South Caro
the opening of Fall trade called for
lina. Forecasts of tobacco yields in the
more currency. Cash reserves of the
Fifth district increased last month and
Reserve bank rose materially last
are much above 1934 figures in the
month. Reporting member banks in
Carolinas and Virginia, but this year’s
creased their loans between September 11 and October prices are somewhere around 25 per cent below last
9, chiefly in commercial loans for discounting bills for year’s. Construction work, especially in residential
Fall merchandise. The same banks reported increased building, shows healthy signs of revival, and valuation
investments in securities during the past month, and figures for building permits issued in September were
some gain in both demand and time deposits. Debits practically double the September 1934 figures. All
to individual accounts, reflecting transactions passing forms of tobacco manufacturing in September exceeded
through the banks of leading cities in the Fifth dis September 1934 production figures. Retail trade as re
trict. increased seasonally during four weeks ended flected in department store sales was better in Septem
October 9 in comparison with the preceding four weeks, ber than in the same month last year, increasing 14.7
ended September 11, and also exceeded debits in four per cent, and wholesale trade in all lines except shoes
weeks ended October 10, 1934, by nearly 6 per cent.
Commercial failures in the Fifth district in September for which figures are available also compared favorably
were the fewest in number for any month this year with September 1934 trade. The farmers of the dis
except one, and last month’s liabilities were the lowest trict had favorable weather and seasons, on the whole,
in fifteen years with the exception of April and June and crops turned out above average yields in most cases.
figures this year. Employment conditions showed some Cotton and tobacco prices are lower than last year,
improvement during September and early October, es
pecially for workers in construction fields. Coal pro- j but this is partly in some sections and entirely in others
duction registered a moderate seasonal increase in Sep- j compensated for by increased yields. Prices of live
tember over August, but was below the level of pro stock and all live stock products, important sources of
duction last September, perhaps due to unusually large farm income in certain sections of the Fifth district,
reserve stocks accumulated by consumers earlier in the are much higher than prices last year. On the whole,
Summer and Fall when a strike in bituminous fields
was feared. Activity in the textile field increased in aggregate income in 1935 derived from farm products
September over August, and was far above that of in the Fifth district appears likely to be at least as
September 1934, when many mills were shut down high as the 1934 income.
MONTHLY REVIEW
2
Reserve Bank Statement
000 omitted
000 omitted
ITEMS
Oct. 15
1935
Sept. 15
1935
Oct. 15
1934
Rediscounts held ---------------- $ 207 $ 350 $ 417
Open market paper--------------173
216
173
(4,506
481
4,563
Industrial advances------------Government securities ............. 116,716 116,716 103,563
Total earning assets----------121^602 121^802 104,677
Circulation of Fed. Res. notes.. 173,262 165,072 170,126
158,861 159,157 126,991
Members’ reserve deposits____
Cash reserves -------------------- 228,446 218,627 205,050
65.65
66.98
Reserve ratio -------------------66.97
The accompanying table shows principal items on
the statement of condition of the Federal Reserve Bank
of Richmond on three mid-month dates, October 15
and September 15 this year and October 15 last year,
thus affording opportunity for comparison of current
figures with those a month and a year earlier. Re
discounts for member banks declined $143,000 between
September 15 and October 15, and on the latter date
also showed a drop of $210,000 from discounts on
October 15 last year. Open market paper held in the
Bank’s portfolio was unchanged during the past month,
but was $43,000 less in amount than holdings at the
middle of October 1934. Industrial advances made
direct to business by the Federal Reserve Bank de
clined $57,000 since September 15, but on October 15
was $4,025,000 larger in amount than industrial ad
vances a year earlier. No change occurred last month
in the volume of Government securities owned by the
Bank, but during the past year this item rose by $13,153,000. The changes in the items mentioned caused a
net decrease of $200,000 in the Bank’s total earning
assets last month, but an increase of $16,925,000 dur
ing the year. Circulation of Federal reserve notes rose
seasonally by $8,190,000 between the middle of Sep
tember and the middle of October, and on the latter
date was higher by $3,136,000 than circulation on Oc
tober 15, 1934. Member bank reserve deposits de
creased $296,000 during the past month, a mere daily
fluctuation, but on October 15 was $31,870,000 higher
than reserves a year earlier. The several changes
enumerated, with others of less importance, raised the
aggregate cash reserves of the Federal Reserve Bank
of Richmond by $9,819,000 last month and by $23,396,000 during the year. The ratio of cash reserves to
note and deposit liabilities combined rose 1.32 points
between September 15 and October 15 this year, but
declined a very small fraction of 1 point between Octo
ber 15, 1934, and the corresponding date this year.
Statement of 28 Member Banks
Twenty-eight member banks in leading cities of the
Fifth Federal reserve district make weekly reports to
the Reserve Bank, and the accompanying table shows
totals for selected items for three dates, October 9 and
September 11, 1935, and October 10, 1934. It should
be understood that the figures in the table are not nec
essarily the highest or lowest that occurred between
the dates used, but reflect the condition of the banks
on the report dates only.
Total loans and discounts at the reporting banks rose
Sept. 11
1935
Oct. 10
1934
Loans on stocks and bonds (in
i
cluding Governments) .......... $ 51,139 $ 50,125
All other loans____________
94,029 i 92,186
Total loans and discounts__ 145,168 142,311
Investments in stocks & bonds.. 206,151 198,583
Reserve bal. with F. R. Bank....
72,281
76,395
12,472
12,701
Cash in vaults-------------------Demand deposits ---------------- 235,697 235,130
Time deposits -------------------- 135,929 ! 135,900
0 !1
0
Borrowed from F. R. Bank.—
I|$ 57,081
1 105,160
! 162,241
189,101
55,080
12,232
230,408
133,495
ITEMS
O ct 9
1935
1
0
by $2,857,000 during the past four weeks, loans on
stocks and bonds advancing $1,014,000 and all other
loans rising $1,843,000. The banks also increased in
vestments in securities by $7,568,000 during the month
under review, but reduced their reserve balance at the
Federal Reserve Bank by $4,114,00. However, re
serve deposits continue far above actual requirements.
Cash in vaults dropped $229,000 between September
11 and October 9. Aggregate deposits in the twentyeight banks rose $596,000 last month, demand deposits
increasing $567,000 and time deposits $29,000. None
of the reporting banks was borrowing at the Reserve
]Bank on any of the dates shown in the table.
Comparison of the October 9, 1935, figures with
those of October 10, 1934, shows wider variations than
occurred in the past month. Total loans and dis
counts declined $17,073,000 during the year, loans on
securities dropping by $5,942,000 and all other loans
decreasing by $11,131,000. On the other hand, invest
ments in stocks and bonds rose by $17,050,000 during
the year, and reserve deposits of the twenty-eight banks
rose by $17,201,000. Cash in vaults on October 9 this
year was more by $240,000 than on October 10 last
year. Deposits rose by $7,723,000 between October
10, 1934, and October 9, 1935, demand deposits gain
ing $5,289,000 and time deposits increasing $2,434,000.
Time and Savings Deposits
Time deposits in twenty-eight reporting member
banks and aggregate deposits in eleven mutual savings
banks in Baltimore totaled $338,393,958 at the end of
September 1935, a higher figure than either $337,817,077 reported at the end of August this year or $327,052,500 at the end of September 1934. Both the mem
ber banks and the savings banks reported higher figures
for September 30, 1935, than for either of the earlier
• dates.
Debits to Individual Accounts
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 9 and September 11, 1935, and October 10,
1934.
During the four weeks ended October 9, 1935, aggre
gate debits to individual accounts showed a seasonal
increase of $146,599,000, or 17.2 per cent, over debits
during the preceding like period this year, ended Sep
tember 11, the increase being due in part to quarterly
settlements on October 1 and in part to the opening of
MONTHLY REVIEW
CITIES
000 omitted
Total debits, four weeks ended
Oct. 9,
Sept 11,
Oct. 10,
1934
1935
1935
$ 9,407 $ 8,782 $ 8,580
Asheville, N. C.-----281,665
267,573
Baltimore, Md...........
234,990
14,963
10,415
12,950
Charleston, S. C.---36,299
34,921
37,332
Charleston, W. Va.....
49,604
39,879
41,311
Charlotte, N. jC-----23,213 i
Columbia, S. C-------18,124
18,370
7,221
6,162
Cumberland, Md'.----6,418
8,724
5,722
9,333
Danville, Va....... ......
46,439
35,117
Durham, N. C ------29,605
12,898
10,183
Greensboro, N. C.__
11,484
12,016
15,460
12,289
Greenville, S. C-----6,512
Hagerstown, Md. «.__
7,259
6,014
10,605
Huntington, W. Va...
11,501
10,559
Lynchburg, Va...........
13,672
11,255
12,356
6,808
Newport News, Va.....
6,449
6,614
Norfolk, Va...............
39,249
47,998
36,515
Portsmouth, Va.........
3,043
2,971
2,818
Raleigh, N. C._____ !
21,621
19,964
18,816
Richmond, Va............
148,796
129,281
150,407
Roanoke, Va.............. !
*18,548
17,236
37,659
7,354*
Spartanburg, S. C.....
5,612* ...... • ..
Washington, D. C__ !
192,973
166,841
161,809
Wilmington, N. C. ...
8,930
8,408
7,990
Winston-Salem, N. C.
26,956
29,339
35,227
Fifth District Totals
$1,000,541 $ 853,942
♦Spartanburg, S. C., not included in Totals.
$ 945,965
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 10, 1934, corresponding fig
ures for the four weeks ended October 9, 1935, show
an increase of $54,576,000, or 5.8 per cent. Seventeen
of the twenty-three cities reported higher figures for
the 1935 period, the six cities which failed to gain
being Charleston, W. Va., Danville, Norfolk and Rich
mond, Va., Durham and Raleigh, N. C.
Commercial Failures
Commercial failures in the United States in Septem
ber 1935 numbered 806, with aggregate liabilities total
ing $21,837,926, an increase of 2.0 per cent in com
parison with 790 failures in September 1934 and a
rise of 32.8 per cent in liabilities over $16,440,147
reported for September last year. In the Fifth Fed
eral reserve district the September record was worse
than the National record in the number of failures but
was much better in liabilities. There were 32 bank
ruptcies in the district last month, an increase of 18.5
per cent over 27 insolvencies in September last year,
but last month’s liabilities totaling $403,050 show a
decline of 6.7 per cent in comparison with liabilities
totaling $431,992 in September 1934 failures. Of the
twelve Federal reserve districts, six reported fewer
failures last month than in September last year, while
eight districts reported lower liabilities. The districts
reporting both fewer failures and lower liabilities this
year were Boston, St. Louis and San Francisco.
3
Federal reserve district in September and the first half
of October, part of it seasonal in character, but there
was relatively little reduction in relief rolls. Coal min
ing on a daily basis increased seasonally in September,
giving longer hours of work to miners. Tobacco mar
kets which opened in September and October employed
a number of helpers. Retail stores began taking on
extra help for the busy Fall season. More important
than any of these, construction work as indicated by
permits issued in September was practically double the
volume of work provided for in September 1934 per
mits, thus affording employment to many building
tradesmen, perhaps the class in which unemployment
has been most general during the depression. Indus
trial plants in the district are operating at seasonal
levels in comparison with recent months, and there are
no labor disputes of importance at present.
Coal Production
Bituminous coal production in the United States
totaled only 24,886,000 net tons in September 1935 in
comparison with 26,112,000 tons mined in August this
year and 27,772,000 tons in September 1934. How
ever, on a daily basis September production of 1,037,000 tons showed a seasonal increase over production of
967.000 tons per day in August. Total production of
soft coal in the current calendar year through October
5 totaled 268,742,000 net tons, compared with 268,038.000 tons mined to the same date in 1934, and coal
shipped through Hampton Roads this year through
October 5 totaled 13,643,498 tons against 13,652,719
tons shipped through the same ports in the correspond
ing period last year.
In its September 28 report, the Bureau of Mines of
the Department of the Interior gave bituminous coal
production figures by states for the month of August,
and West Virginia with 7,694,000 tons ranked first,
while Pennsylvania with 6,776,000 tons was second and
Kentucky with 2,985,000 tons was third. Total pro
duction in the Fifth district in August 1935 was 8,583.000 tons, or 32.9 per cent of National production,
compared with 8,569,000 tons, or 31.2 per cent of
National production, mined in Fifth district states in
August 1934.
Textiles
Textile mills in the United States and in the Fifth
; reserve district increased operating time in September
over August, the district gain slightly exceeding the
National increase. Cotton mills in the two Carolinas
i and Virginia consumed 220,714 bales of cotton in SepI tember, compared with 197,293 bales used in August
| and only 139,319 bales consumed in September 1934,
| when a general strike in the textile industry tied up
many mills most of the month. Last month North
j Carolina mills used 116,054 bales, South Carolina mills
used 93,338 bales, and Virginia mills 11,322 bales.
The figures for the Carolinas were much higher than
the 1934 figures, but Virginia mills were not affected
! by the strike last year and consumption of cotton in
j September 1934 was larger than consumption in SepEmployment
• tember 1935. Consumption of cotton in the Fifth
Some increase in employment was noted in the Fifth district in September amounted to 49.1 per cent of
4
MONTHLY REVIEW
National consumption, compared with 48.3 per cent 6.000 bales over the September 1 forecast of 739,000
of National consumption used in the district in August bales and 64,000 bales above the 1934 production.
this year and 47.3 per cent used in September 1934. North Carolina's forecast also rose last month, from
On September 2Q the Department of Commerce is 613.000 bales on September 1 to 615,000 bales on Oc
sued a report on spindles in place, spindles active in tober 1, but the October estimate was 14,000 bales less
August, total spindle hours of operation in August, and than last year's crop. Virginia prospects remained un
average hours of operation per spindle in place in changed at 33,000 bales between September 1 and
August. On August 31, 1935, there were 30,014,994 October 1, but were 2,000 bales below the yield of
spindles in place in the United States, North Carolina 35.000 bales in 1934. Total production in the Fifth
leading with 6,130,118, or 20.4 per cent of the total, district this year is forecast at 1,393,000 bales, 48,000
South Carolina ranking second with 5,843,632 spindles, bales in excess of last year's crop. The Census Bureau
or 19.5 per cent, and Massachusetts third with 5,370,- reports that 4,230,367 bales of this year's crop were
840 spindles, or 17.9 per cent. The Fifth district as ginned prior to October 1, a lower figure than 4,962,a whole has 42.1 per cent of total spindles in place in 384 bales ginned before October last year.
Cotton consumption in the Unted States in Septem
the United States at the end of August 1935. In actual
spindle hours of operation, South Carolina led all states ber 1935 showed increased figures in comparison with
for August with 1,509,467,449 hours, or 27.2 per cent other recent months and with September 1934, the lat
of the National total of 5,545,241,375 hours, and North ter gain being due in part to adverse effects of the
Carolina ranked second with 1,221,227,720 hours, or nation wide strike in the textile industry last year.
22.0 per cent. In actual hours of operation per spindle The number of bales used totaled 449,126 in September
in place in August, South Carolina with an average of 1935, compared with 408,410 bales used in August this
258 hours per spindle was in the lead, while Tennessee year and 294,696 bales in September 1934. Total con
with 242 hours and Virginia with 240 hours ranked sumption this cotton year—August 1 through Septem
second and third, respectively. North Carolina ranked ber—amounted to 857,536 bales, against 713,637 bales
sixth with an average of 199 hours. The average for consumed in the corresponding two months of last sea
the United States was 185 hours per spindle in place. son. Manufacturing establishments held 716,807 bales
on September 30, compared with 644,926 bales held on
August 31 and 1,057,900 bales on September 30, 1934.
Cotton Statistics
Public warehouses and compresses held 7,148,651 bales
Spot cotton prices showed an upward trend from the in storage at the end of September this year, compared
middle of September through the first week in October, with 5,892,836 bales so held a month earlier and 7,617,but lost part of the gain in the second week. In the 064 bales on September 30 last year. September ex
Review last month we quoted the average price for ports totaled 486,764 bales, compared with 241,484
middling grade cotton on ten Southern spot markets bales exported in August and 453,659 bales sent abroad
on September 13 as 10.49 cents per pound. From this in September 1934. Total exports during the two
figure the price gradually rose to 10.98 cents on Octo months of the present cotton year—August and Sep
ber 4, but declined to 10.85 cents on October 11, the tember—totaled 728,248 bales, an increase over 706,190
latest date for which official quotations are available. bales shipped over seas during the corresponding two
A threat of war in Europe appears to have had rela months last year. Spindles active at some time during
September numbered 22,683,818, compared with 22,tively little effect on cotton quotations.
046,652
in August this year and 22,111,932 in Sep
The Department of Agriculture's third condition re tember 1934.
port of the season, issued on October 8 as of October
Cotton growing states consumed 378,402 bales in
1, estimated 1935 production of cotton as 11,464,000 September,
with 342,935 bales in August
bales of 500 pounds gross weight, a decrease of 25,000 and 241,414compared
bales
in
September
1934. Last month's
bales from the September 1 forecast but 1,828,000 bales
consumption
in
the
cotton
growing
states amounted to
more than the short 1934 crop. The Department of
Agriculture's report says, “Further declines in pros 84.25 per cent of National consumption, a higher per
pects in Texas of 192,000 bales and 18,000 bales in centage than either 83.97 per cent in August this year
Oklahoma are nearly offset by increases in Georgia, or 81.92 per cent in September 1934. Of the 378,402
Alabama, Mississippi and Arkansas. Other States bales of cotton consumed in the cotton growing states
show only slight changes from the forecast for Septem- in September, Fifth district mills used 220,714 bales,
tember 1. In the Southeastern States heavy rain and or 58.3 per cent, a higher figure than 57.7 per cent of
storms during the first part of September were about Southern consumption attained by Fifth district mills
offset by favorable picking and ginning weather during in September last year.
the latter part of the month. In the Mississippi Valley Tobacco Marketing and Yields
States conditions were about average and the prospects
changed upward slightly. In Texas and Oklahoma
South Carolina auction tobacco markets sold 38,the crop showed little recovery from its late start with 233,430 pounds of producers' tobacco in September
increasing menace of frost damage to small bolls before 1935, compared with 21,525,772 pounds sold in Sep
these can mature. In all the more Northern States of tember 1934. Prices last month averaged $16.88 per
the Belt the crop is late and the percentage ginned much hundred pounds, against an average of $19.93 per hun
behind the usual for October 1." In Fifth district dred received in September last year. Season sales this
cotton growing States, South Carolina's prospective year to October totaled 77,565,028 pounds for $14,yield on October 1 was 745,000 bales, an increase of 768,962, compared with sales in August and September
MONTHLY REVIEW
last year totaling 51,404,876 pounds for $11,137,330.
Mullins led all markets in September sales with 17,617,484 pounds, Lake City ranking second with 8,037,918
pounds. Total production of tobacco in South Caro
lina in 1935 is forecast as 86,450,000 pounds, compared
with 56,880,000 pounds grown in 1934 and a five-year
average production of 75,823,000 pounds.
North Carolina markets sold 157,512,760 pounds of
producers’ tobacco in September 1935, at an average
price of $18.88 per hundred pounds, in comparison
with 152,753,454 pounds sold for an average of $26.91
per hundred in September 1934. Farmers have ex
pressed much dissatisfaction with 1935 prices and there
was some talk of closing auction markets until prices
improve, but no definite steps in this direction have
been taken. Wilson led all markets in September 1935
sales with 23,292,537 pounds, Greenville coming sec
ond with 19,723,466 pounds, but Fuquay Springs paid
the highest average price, $20.87 per hundred pounds.
On the basis of October 1 condition, the North Caro
lina tobacco crop this year is forecast at 538,369,000
pounds, compared with 417,975,000 pounds grown in
1934 and a five-year average crop of 468,526,000
pounds. North Carolina’s 1935 crop is more than dou
ble that of the next ranking state, Kentucky.
Virginia tobacco markets did not open until October
and no official sales figures are yet available, but sales
have been large and prices moderately satisfactory.
Prices improved about 15 per cent around the middle
of October but continued about 25 per cent below last
year’s prices. Virginia tobacco prospects improved in
September under the influence of unusually favorable
weather for harvesting and curing, and the crop is now
expected to yield 95,116,000 pounds, an increase of
nearly 3 per cent over the September 1 forecast. Pro
duction of tobacco in 1934 in the State totaled 80,155,000 pounds, and the five-year average production was
98,916,000 pounds.
Maryland's tobacco prospects rose 7 per cent during
September, and the October 1 forecast was 25,188,000
pounds. In 1934 Maryland grew 23,418,000 pounds
of tobacco, and the average production for a five-year
base period was 24,018,000 pounds.
West Virginia tobacco lost ground in September, due
to poor harvesting weather and damage resulting from
excessive moisture. The October 1 forecast of 2,160,000 pounds exceeds 1934 ’production of 1,755,000
pounds, but is little more than half the five-year aver
age production of 4,193,000 pounds.
Tobacco Manufacturing
The Commissioner of Internal Revenue issued a
report on October 18 showing taxes collected in Sep
tember 1935 on manufactured tobacco products. Sep
tember production of cigarettes in the United States
numbered 10,774,083,390, compared with 10,294,498,800
cigarettes manufactured in September 1934. Smoking
and chewing tobacco production increased from 24,439,279 pounds in September last year to 26,178,774
pounds in September this year. Cigars manufactured
rose from 394,861,780 in September 1934 to 430,958,624 in September 1935. Snuff production increased
from 2,794,486 pounds to 2,804,755 pounds during the
year. In the month of September 1935, taxes on cig
5
arettes totaled $32,325,401, compared with $30,884,780
collected in the corresponding month last year. Taxes
on smoking and chewing tobacco rose during the same
period from $4,399,263 to $4,712,857, and cigar taxes
rose from $972,024 to $1,080,618. Total receipts on
tobacco products to the Federal Treasury rose from
$36,759,074 in September 1934 to $38,623,732 in Sep
tember 1935.
Agricultural Notes
Weather in September was favorable for late crop
development and for harvesting, and combined per acre
yield figures for 33 important crops rose in all Fifth
district states between September 1 and October 1.
On the latter date the several states showed the fol
lowing percentages of average yields during the tenyear period 1921-1930: South Carolina 124.9 per cent,
Virginia 114.4 per cent, North Carolina 113.7 per cent,
West Virginia 111.9 per cent, and Maryland 111.0 per
cent. The National average figure was 101.5 per cent.
Virginia crops were seriously damaged by hard rains
and floods early in September, but the clear, dry weath
er during the latter part of the month was unusually fa
vorable for maturing and harvesting crops, so that the
storm loss was more than offset by the excellent harvest
weather. Production of corn, tobacco, hay, apples,
peaches, peanuts and sweet potatoes will be greater than
last year, and the only crops showing a smaller pro
duction are Irish potatoes and cotton. Fall sown truck
crops have made favorable progress and shipments of
spinach are expected to be earlier than last year. Late
corn improved considerably in the Northern district due
to the late August and early September rains, but in
the Eastern and Central districts prospects declined
somewhat due to damage from the September storm.
Total production is estimated to be 37,250,000 bushels,
which is the same as last month’s forecast but is slightly
larger than the 1934 crop of 35,794,000 bushels. The
peanut crop matured later than usual, and very few
nuts had been dug by October 1, so the yield is still
somewhat uncertain. Wet weather during the latter
part of August and the first week of September was
unfavorable for the development of peanuts, and grow
ers report that prospects are not quite as favorable as
they appeared a month ago. The estimated production
is forecast at 155,800,000 pounds, about 3 per cent less
than the September forecast but about 7 per cent
greater than the 1934 yield of 146,000,000 pounds.
Late hay crops showed improvement during Septem
ber, and total production is estimated to be 1,126,000
tons, compared with 948,000 tons harvested last year.
The 1935 hay yield is one of the largest on record.
The late potato crop, which is about 25 per cent of
the total, improved during September. The final esti
mate of the early commercial crop was slightly below
the earlier forecast, so total production of potatoes is
now estimated at 11,352,000 bushels. The 1934 crop
was 13,433,000 bushels. Since the October 1 estimate
was made some late crops were damaged by frost, but
most fields had matured before this damage occurred.
No change was reported in sweet potato prospects dur
ing the past month and the estimated production of 4,680,000 bushels compares with 3,910,000 bushels har
6
MONTHLY REVIEW
vested last year. There was very little change in fruit
prospects during September, and the apple crop is ap
parently turning out as expected. Total production of
16.430.000 bushels is considerably above last year’s crop
of 9,275,000 bushels and is also above the five-year
average of 13,160,000 bushels. The commercial crop,
or that portion of the total crop which will be dis
tributed for fresh consumption, is estimated at 10,540,000 bushels, compared with last year’s commercial crop
of 6,562,000 bushels. Approximately 30 per cent of
the commercial crop had been picked by October 1, and
growers reported that, while the quality was not quite
as good as average, the size of the fruit was above
normal. Growers estimate that about 46 per cent of
the crop will pack No. 1 grade or better, compared with
54 per cent making these grades last year. In many
sections of Virginia there was considerable complaint
of difficulty in securing sufficient labor to harvest the
crops, but generally the supply was about equal to the
demand. This is the first Fall since the depression be
gan that farmers have had difficulty in securing the
necessary labor.
Maryland crops all improved in September, with the
exception of potatoes. Heavy rains in early Septem
ber resulted in some damage to corn fodder, late hay
crops, tomatoes on the Eastern Shore, and tobacco in
Southern Maryland. On the other hand, the rains
greatly improved seed beds for winter wheat planting
and also improved pastures. Present indications are
for 1935 production of feed grains 8 per cent above
last year and 20 per cent above the five-year average.
This year’s corn crop of 18,492,000 bushels is 9 per
cent larger than last year’s yield of 16,995,000 bushels
and 23 per cent higher than average five-year production of 15,039,000 bushels. Oats production of 1,238,000 bushels compares with 1,320,000 bushels a year ago
and the five-year average of 1,547,000 bushels. The
barley crop of 724,000 bushels this year is much larger
than usual. Hay production totaling 567,000 tons com
pares unfavorably with the 1934 cut of 578,000 tons
but is far above the average crop of 458,000 tons. Con
dition of pastures is 81 per cent of normal, compared
with 84 per cent a year ago and an average for Oc
tober 1 of 68 per cent. Irish potatoes showed no
change during September. The early crop yielded bet
ter than was expected but the late yields were dis
appointing. The October 1 estimate of 3,564,000
bushels of potatoes is 9 per cent above 3,267,000 bushels
dug in 1934 and about 7 per cent above the five-year
average production of 3,339,000 bushels. Sweet pota
toes indicate a crop of 825,000 bushels in 1935, about
10 per cent above 750,000 bushels raised last year but
40 per cent less than average production of 1,374,000
bushels. Apple prospects continue to improve. The
present estimate of 2,340,000 bushels compares with
1.102.000 bushels gathered last year and the five-year
average of 2,053,000 bushels. Reports indicate the
sizing is better than expected, the coloring is fine, but
quality is only fair.
West Virginia weather during September was favor
able for maturing and harvesting crops. Frosts the
latter part of the month and subsequently closed the
growing season over much of the State, with some late
corn damaged but with most of this crop and others
maturing ahead of the frosts. Corn production esti
mated at 12,682,000 bushels is about 5 per cent above
the 1934 crop of 12,128,000 bushels and 15 per cent
above the average 1928-1932 yield of 11,056,000 bush
els. The oats crop will be 2,538,000 bushels, compared
with 2,052,000 bushels in 1934 and average production
of 3,239,000 bushels. Buckwheat, which met some set
backs during September, is now expected to yield 368,000 bushels, 14 per cent less than last year, but about 3
per cent greater than the five-year average. An abun
dance of hay is expected for the State compared with
recent years, total tonnage being estimated at 778,000
compared with 502,000 tons cured in 1934 and the fiveyear average of 615,000 tons. Some hay was spoiled
by rain during harvesting, but the bulk of the cut was
stacked or housed in good condition. Irish potatoes
declined in September from rotting and damage by ex
cessive rains. Production of 3,150,000 bushels is about
the same as 3,120,000 bushels dug last year, but is 10
per cent below average production of 3,484,000 bushels.
The apple crop of West Virginia is expected to be
5.940.000 bushels this year, of which 3,240,000 bushels
will be the commercial crop. The commercial crop was
2.475.000 bushels in 1934 and the average production
for five-years was 3,690,000 bushels.
North Carolim had an excess of rainfall in Septem
ber, which delayed harvesting but aided in good yields
and put the soil in excellent condition for planting to
winter crops. The corn yield is expected to be one
of the best for many years and with increased acreage
a yield of 48,320,000 bushels is forecast, compared with
47.580.000 bushels in 1934 and average production of
39.119.000 bushels. A good hay crop of 712,000 tons
j was cured this year, compared with 699,000 tons last
' year and a five-year average of only 561,000 tons. Pas
tures on October 1 were better than average. The
i
stands and growth of peanuts have been good this sea
son, and yield prospects are considerably better than
usual. A yield of 273,050,000 pounds of peanuts is
expected, compared with 264,000,000 pounds in 1934
and a five-year average yield of 246,206,000 pounds.
Harvesting is well under way, and most fields are yield: ing clean, bright shells with few rotted nuts. The Irish
i potato crop of 8,774,000 bushels this year compares
s with 10,672,000 bushels last year and average produc
tion of 7,573,000 bushels, while the 1935 sweet potato
yield of 8,000,000 bushels compares with 8,856,000
bushels in 1934 and an average of 6,819,000 bushels in
1928-1932.
South Carolina crop prospects changed little last
month. The indicated yield per acre of all crops com
bined is 24.9 per cent above the average for the ten
years 1921-1930, in which respect South Carolina ranks
second in the nation. Prospective corn yield of 25,| 425,000 bushels is 22 per cent above last year’s pro| duction of 20,760,000 bushels and 26 per cent above
| average yield of 20,151,000 bushels. Hay, estimated
| at 236,000 tons, is 17 per cent above 201,000 tons cut
| in 1934 and 31 per cent above the average yield of
1 180,000 tons. A sweet potato crop of 4,590,000 bushels
this year exceeds last year’s yield of 4,428,000 bushels
and "the five-year average of 4,569,000 bushels. The
South Carolina peanut yield of 11,520,000 pounds com-
MONTHLY REVIEW
pares with 9,600,000 pounds in 1934 and annual pro
duction of 8,398,000 pounds during the five-year period
1928-1932.
Construction
Building Permits Issued in September
193S and 1934
CITIES
Permits Issued
1934
1935
Baltimore, Md........
710
Cumberland, Md.....
17
Frederick, Md.........
10
Hagerstown, Md. —
39
Salisbury, iMd. ---23
18
Danville, Va...........
Lynchburg, Va. -----46
94
Norfolk, Va..............Petersburg, V a .-----3
Portsmouth, Va.........
29
Richmond, Va............ 114
57
Roanoke, Va.............8
Bluefield, W. Va.---Charleston, W. >Va.— 123
Clarksburg, W. Va—
50
Huntington, W. Va.....
"2 4
Asheville, N. C----108
Charlotte, N. C.----30
Durham, N. .C.------56
Greensboro, N. C...
60
High Point, N. C...
28
Raleigh, N. C.-------7
Rocky Mount, N. C...
9
Salisbury, N. C-----59
Winston-Salem, N. C.
46
Charleston, S. C.-----67
Columbia, S. C-------56
Greenville, S. C-----31
Rock Hill, S. C.____
28
Spartanburg, S .' C.—
Washington, D. C.— 646
District Totals — 2,596
♦Not included in totals.
Total Valuation
1934
1935
715 $ 684,720 $ 693,120
13
8,890
22,304
20
9,225
3,390
16
295,423
12,720
18
17,850
21,200
18
7,480
28,570
02
51,237
12,896
66
49,115
136,505
5
850
2,330
23
30,865
6,850
116
102,783
156,450
37
33,965
16,930
11
29,150
8,165
71
153,643
54,781
19
32,171
26,595
28*
95,770
14,738
38
8,060
27,639
31
167,016
11,390
7
96,290
17.441
37
54,203
81.442
13
86,815
9,870
6
279,676
7,940
4
4,900
7,350
3
135,945
470
80
25,208
42,970
37
22, 324
34,221
31
127,203
14,643
24
109,425
15,790
18
39,140
47,835
{33
19,731
5,049
450 3,045,265 1,117,555
1,992 $5,654,791
$2,828,696
Building permits issued by building inspectors in
thirty-one cities in the Fifth reserve district in Sep
tember 1935 totaled 2,596, wth estimated valuation
amounting to $5,654,791, an increase of 30.3 per cent in
number of permits in comparison with 1,992 permits
issued in September 1934, and a gain of 99.9 per cent
over September 1934 valuation figures totaling $2,-
7
828,696. Twenty of the thirty-one cities reported high
er valuation figures for the 1935 month, but of the five
largest cities only Washington, Norfolk and Charlotte
gained. Baltimore and Richmond reported lower totals
for September 1935 than for September 1934. Of the
total increase of $2,826,095 in estimated valuation,
Washington accounted for $1,927,710, but some of the
smaller cities showed much higher percentage increases.
Retail Trade, 31 Department Stores
Richmond Baltimore Washington Other Cities District
September 1935 sales, compared with sales in September 1934:
-f- 4.1
*f 5.5
+26.4
+11.2
+14.7
Total sales Jan.-Sept. 1935, compared with Jan.-Sept. 1934:
+ 4.2
+ 1.5
+15.8
+ 4.7
+ 8.0
Sept. 30, 1935, stocks, compared with stocks on Sept. 30, 1934:
— .6
— 5.0
+ 5.6
+ .8
+ 2
Sept. 30, 1935, stocks, compared with stocks on Aug. 31, 1935:
+10.4
+12.3
+19.0
+10.2
+14.5
Number of times stock was turned in September 1935:
.354
.319
.428
.315
.366
Number of times stock was turned since January 1, 1935:
2.834 *
2.667
3245
2.516
2.9
Percentage of Sept.^1, 1935, receivables collected in September:
28.5
25.2
25.1
25.5
Note: Sales and stock changes are percentages.
W holesale Trade, 57 Firms
20
7
Groceries Dry Goods
6
Shoes
13
Hardware
11
Drugs
September 1935 sales, compared with sales in September 1934:
+ 4.9
+ 2.4
— .7
+18.6
+ 2.2
September 1935 sales, compared with sales in August 1935:
— .5
+28.8
—13.7
+14.1
+ 2.0
Jan.-Sept. 1935 sales, compared with sales in Jan.-Sept. 1934:
+ 6.4
—15.0
—11.0
+ 9.6
+ 12
Sept. 30, 1935, stocks, compared with Sept. 30, 1934, stocks:
— 7.1(8*) —24.9(3*) + .2(4*) + 3.3(7*)
Sept. 30, 1935, stocks, compared with Aug. 31, 1935, stocks:
+ 7.2(8*)
—10.9(3*)
— 9.7(4*)
+ 2.9(fr*)
___
Percentage of collections in September to receivables Sept. 1:
96.3(11*) 38.5(4*)
59.1(5*)
41.4(11*) 652(7*)
♦Number of reporting firms. All figures in the table are
percentages.
(Compiled October 21, 1935)
MONTHLY REVIEW
8
BUSINESS CONDITIONS IN THE UNITED STATES
(Compiled by the Board of Governors of the Federal Reserve System)
Industrial production and employment increased in
September and distribution of commodities to consum
ers was in larger volume, reflecting in part seasonal in
fluences. The general level of wholesale prices showed
little change.
Production and Employment
Output at factories and mines, as measured by the
Board’s seasonally adjusted index of industrial pro
duction, advanced from 87 per cent of the 1923-1925
average in August to 88 per cent in September, re
flecting chiefly increases in the output of iron and steel,
lumber, cotton and silk textiles, and anthracite, offset
in part in the total by declines in the production of auto
mobiles and woolen textiles. At steel mills activity
increased from 49 per cent of capacity in August to
51 per cent in September, and during the first three
weeks of October continued at about the September
level. At automobile factories a sharp decline in out
put during September, as preparations were made for
new models, was followed in the early part of October
by a rapid advance. Lumber production continued to
increase in September. In the cotton textile industry,
where output had been at a relatively low level since
April, activity showed a marked increase in September
and there was also an increase in output at silk mills,
while at woolen mills, where activity has been at an
exceptionally high level for several months, there was
a decline.
Factory employment showed a seasonal increase be
tween the middle of August and the middle of Sep
tember. The number employed at foundries and in
the lumber, non-ferrous metals and machinery indus
tries increased substantially, while in the automobile
industry there was a considerable decline. At cotton
mills employment showed a seasonal increase and at
silk and rayon mills there was an increase of more
than the usual seasonal amount, while employment at
woolen mills and shoe factories declined.
The value of construction contracts awarded, as re
ported by the F. W. Dodge Corporation, was about the
same in the six weeks ended October 15 as in the pre
vious six weeks, reflecting an increase in residential
building, partly of a seasonal character, and a slight
decline in other types of construction.
Distribution
Freight car loadings showed an increase of more
than the usual seasonal amount in September and in
creased further in the first half of October. Depart
ment store sales also increased by more than the esti
mated seasonal amount in September, and for the third
quarter the average of the Board’s seasonally adjusted
I index was 80 per cent of the 1923-1925 average as
j compared with 75 per cent a year ago.
|
| Commodity Prices
i
I The general level of wholesale commodity prices, as
j measured by the index of the Bureau of Labor Sta
tistics, showed little change during September and the
| first three weeks of October. Prices of grains deI creased in the middle of October, following a con| siderable advance, while prices of silk, hides and cop
per increased throughout the period.
I Bank Credit
i
! Reserves of member banks continued to increase dur! ing the five weeks ended October 23, reflecting chiefly
! imports of gold from abroad. At the end of the period
j reserves in excess of legal requirements at $2,930,000,i 000 were at the highest level on record.
; At weekly reporting member banks in 91 leading
| cities adjusted demand deposits increased by $40,000,000 during the four weeks ending October 16, while
j United States Government deposits declined and inter| bank balances rose to a new high level. Loans on sei curities decreased by $40,000,000, while other loans,
; including commercial credits, increased by $80,000,000.
! Yields on both short-term and long-term Govern; ment obligations increased from the last week in AugI ust to the first part of October and subsequently dei clined. Other short-term open-market money rates re! mained at previous low levels.
@FedFRASER