The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E SE R V E BANK O F RICHMOND General Business and Agricultural Conditions in the Fifth Federal Reserve District B y C A L D W E L L H A R D Y , Chairman and Federal Reserve A gen t RICHMOND, VIR G IN IA , SE PTE M B E R 30, 1921 more liquidation during the The outstanding develop fall than they previously ex ment in the Fifth Federal C O N TE N TS pected. Bank clearings con Reserve District during A u tinue lower than in 1920, but gust and early September Introduction probably reflect the general was the substantial increase price declines, while debits Condition o f M em ber Banks in cotton prices. The De to individual account hold Debits to Individual Accounts partment o f Agriculture’s up in the Fifth District announcement of an August M onthly Clearings somewhat better than the 25 condition o f 49.3%, indiBusiness Failures average for the U n i t e d caing a production of 7,037,Labor States. Business failures 000 bales, 1 e d to rapid in T extiles during August show t h e creases in cotton prices, and Foods lowest number during any sent the staple above 20 Agriculture month this year, except cents on the Carolina mar Coal June. Unskilled labor finds kets. Concrete results o f Building Materials it difficult to secure work, the higher quotations have Building Construction but practically all skilled not as yet developed to any W holesale Trade workers are finding employ material extent, but the psy Retail Trade ment for at least part time. chological effect o f the rise Building permits issued du is far reaching, and has per ring the month for new con meated every line of busi ness in the South. From a recent feeling of pessi struction outnumber those issued in either 1920 or 1919. W holesale trade in all reporting lines im mism and even bitterness, the Southern farmer proved distinctly during August compared with Ju and business man has been lifted to a feeling of hopefulness and belief in the future, and such a ly. Retail trade shows a decline of 9.8% in the dol change seems certain to bring about a much more lar value of sales compared with August of last year, but an increase of 17% in the actual number speedy recovery from business depression than ap of sales. peared possible a few months ago. The outlook for production in agriculture is poor The industry that has shown the greatest re in all leading crops, but because of large carry covery from the unsatisfactory conditions of three overs, particularly cotton, from last year and satis or four months ago is the textile business, the rise factory price prospects for this year, the District in cotton prices having resulted in a healthy in would seem to be in a better position than at this crease in orders received for manufactured pro time last year, when prices were declining and no ducts o f the mills. Collections are beginning to one felt safe in making commitments f o r t h e improve, and our correspondents are hopeful of future. CONDITION OF SEVENTY-NINE REPORTING MEMBER BANKS IN SELECTED CITIES September 7, 1921 ITEM S 1. Total Loans and Discounts (exclusive of rediscounts) _________________ 2. Total Investments in Bonds and Se curities ___________________________ 3. Total Loans and Investments________ 4. Reserve Balance with Federal Reserve B a n k __ __________________________ 5. Cash in Vaults______________________________________ 6. Demand Deposits____________________ 7. Time Deposits ____________________________________ 8. Discounted with Federal R e s e r v e Bank ______________________________________________ $ ♦Includes some miscellaneous investments. August 10, 1921 403,523,000 $ 406,488,000 September 3, 1920 $ 496,852,000* 119.291.000 522.814.000 126.136.000 532.624.000 80,923,000** 577.775.000 28.723.000 14.200.000 291.629.000 117.776.000 30.811.000 14.526.000 292.615.000 116.967.000 38.339.000 16.005.000 345.456.000 106.092.000 67.704.000 76.054.000 68.168.000 1 ** Government Securities only. In the table given above, the principal items o f condition are shown for seventy-nine identical banks, located in thirteen cities of the Fifth Reserve District as of the close of business September 7, 1921, August 10, 1921, and September 3, 1920, thus giving comparison for the current month with the preceding month of this year and the corresponding month of last year. In the table, all items are com parable except items 1 and 2, these having been calculated differently in 1921 and 1920. Comparing the figures as of September 7, 1921, with those as of September 3, 1920, all items show decreases within the year except Item 7, Time Deposits, which increased from $106,092,000 last year to $117,776,000, a gain of 11%. In view of considerable unemployment during the year, and offer ings of high grade securities at attractive prices and rates of interest, this steady growth of Time De posits is important and gives ground for a hope that the thrift lessons taught during the war period were taken seriously by many people. Total Loans and Investments decreased between September 3, 1920 and September 7, 1921 from $577,775,000 to $522,814,000, a decline of 9.5%; Reserve Balance with the Federal Reserve Bank decreased from $38,339,000 to $28,723,000, a decline of 25.1%; Cash in Vaults de creased from $16,005,000 to $14,200,000, a decline ofll.3% ; and Demand Deposits decreased from $345,456,000 to $291,629,000, a decline of 15.6%. Discounts and rediscounts with the Federal Reserve Bank for these city banks decreased from $76,054,000 to $68,168,00, a decline of 10.4% compared with the 25.1% decrease in Reserve Balance with the Federal Reserve Bank mentioned above. The figures show that on September 7, 1921, the reporting banks were borrowing from the Reserve Bank 237.3% of their reserve deposits, compared with borrowings amounting to 198.4% of their reserve deposits on September 3, 1920. Comparing the September 7, 1921, figures with those as of August 10, 1921, increases are shown in Time Deposits and in Discounts with the Federal Reserve Bank, each amounting to seven-tenths o f one percent, the increase in Discounts being merely a daily fluctuation. All other items show de creases within the four weeks. The figures for the two dates indicate little benefit to the reporting banks as yet from the marked rise in cotton prices that took place during the month of August. DEBITS TO INDIVIDUAL ACCOUNT IN CLEARING HOUSE CENTERS For the Weeks Ending C IT IE S September 7, 1921 Baltimore, Md. ________________________ Charleston, S. C________________________ Charlotte, N. C_________________________ Columbia, S. C. _______________________ Greenville, S. C_________________________ Huntington, W . V a . ___________________ N orfolk, V a . ____________________________ Raleigh, N. C___________________________ Richmond, Va. _________________________ W ashington, D. C __________ ____________ W ilm ington, N. C______________________ $ Totals for 9 cities__ _________ _ Totals for 11 cities------- -------------- $ 94,105,000 6.090.000 4.941.000 3.614.000 2,695,000* 3.566.000 10.723.000 3.700.000 22.759.000 29.998.000 4,016,000* 179,496,000 186,207,000 August 10, 1921 $ $ September 8, 1920 108,060,000 4.337.000 4.802.000 4.100.000 2,517,000* 4.527.000 11.852.000 3,700,000 21.885.000 33.362.000 4,261,000* $ 196,625,000 203,403,000 $ 97,399,000 4.900.000 6.010.000 4.514.000 4.726.000 17.049.000 3,973,000 22.430.000 29.159.000 190,160,000 * Not included in Totals for 9 cities. Debits to Individual Account in nine cities of the Fifth District totaled $179,496,000 for the week ending Septmber 7, 1921, compared with $190,160,000 reported by the same cities for the correspond ing week o f 1920, a decrease this year of 5.6%. Compared with an average decrease reported to the Federal Reserve Board by 148 cities throughout the nation amounting to 14.6%, the record is decidedly favorable to the Fifth District. Charleston, S. C., Richmond and Washington reported higher figures for the week ending September 7, 1921, than for the week ending September 8, 1920A comparison o f the totals reported from the nine cities for the week ending September 7, 1921, with those reported for the week ending August 10, 1921, shows a decline during the first named week o f $17,129,000, or 8.7%, but the September week includes Labor day so that the periods are not fairly comparable. Decreases within the month are shown in all reporting centers except Charleston, S. C. Charlotte, Raleigh and Richmond. MONTHLY CLEARINGS For Month o f August CITIES No. ! 1921 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Baltimore, Md. ------------------------- $ Charlotte, N. C. ----------------------Columbia, S. C. - - ------------Frederick, M d . ------- -----------------Greensboro, N. C. -------------------Greenville, S. C. ----------------------Hagerstown, M d . ----------------------Huntington, W . Va. ----------------Newport News, Va. — _ ----N orfolk, Va. -----------------------------Raleigh, N, C, --------------------------Richmond, Va. — —— Spartanburg, S. C. -------------------W ashington, D. C. -------------------Totals--------------------------------- $ 292,515,077 13,322,566* 8,078,295 6,873,143 1,706,815 4,083,600 6,364,318 2,459,447 6,734,615 2,485,723 26,340,248 4,644,318 154,239,698 2,105,347 66,183^867 584,814,511 Decrease 1920 | $ 428,563,223 II ^437^945 10,592,103 2,570,636 5,677,386 7,611,782 3,088,355 8,457,889 3,958,729 42,168,978 5,462,828 234,098,391 3,464,975 ____ 68,133,770 $ No. 31.7— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 $ 136,0^8,146— | 1 | i ! Per Cent of Decrease 835,286,990 $ 3,359,650— 3,718,960— 863,821— 1,593,786— 1,247,464— 628,908— 1,723,274— 1,473,006— 15,828,730— 818,510— 79,858,693— 1,359,628— 1,949,903— 29.4— 35.1— 33.6— 28.1— 16.4— 20.4— 20.4— 37.2— 37.5— 15.0— 34.1— 39.2— 2.9— 250,472,479— 30.0— i * Not Included in Totals The table above shows clearings in August 1921 for fifteen important cities in the Fifth District, with comparative figures from fourteen of them for August 1920. The fourteen cities show clearings in August 1921 amounting to $584,814,511, as compared with $835,286,990 in August 1920, a decrease this year of $250,472,479, or 30%, a lower percentage decrease than was reported for July 1921, com pared with July 1920, but a greater decrease than was reported for any other month this year. In the table Charleston, W . Va., is included for the first time, but Asheville, N. C., has withdrawn from the list o f reporting cities, and Charleston, S. C., sent no report for August 1921, which made it necessary to omit the city from our list for this month. BUSINESS FAILURES IN THE TW ELVE FEDERAL RESERVE DISTRICTS Number City and District Boston, F ir s t ___________________ New York, Second______________ Philadelphia, T h ird _____________ Cleveland, F ou rth ---------------------Richmond, Fifth ----------------------Atlanta, S ix th ---------------------------Chicago, Seventh ---------------------St. Louis, E ighth----------------------Minneapolis, N in th _____________ Kansas City, Tenth-------------------Dallas, Eleventh _______________ San Francisco, Twelfth-------------Totals_____________________ 1921 1920 118 216 68 137 98 198 204 67 72 75 137 172 58 179 33 70 40 42 86 31 18 11 33 72 1,562 673 Liabilities Per Cent Increase I 1921 1920 Per Cent Increase 261.7 35.5— 31.8— 284.8 284.2 72.3 29.8 662.1 1,605.6 1,027.8 384.5 535.6 103.4 20.7 106.1 95.7 145.0 371.4 137.2 116.1 300.0 581.8 315.2 138.9 $ 2,821,841 9,685,653 2,090,756 5,183,707 2,658,017 4,489,443 4,123,5230 2,200,012 1,458,576 966,896 1,991,284 5,234,704 780,210 15,009,838 3,066,914 1,347,045 691,785 2,605,429 3,177,188 288,672 85,515 85,735 411,027 823,537 132.1 $ 42,904,409 $ 28,372,895 51.2 - Denotes decrease in 1921. W e give herewith the table reported by Dun’s Review showing the number of failures in the twelve Federal Reserve Districts for August 1921 and 1920, with percentages o f increase or decrease in both the number and the aggregate liabilities involved. The August number of failures is less in the Fifth District than in any previous month this year except June, but liabilities were greater than in May, June or July, though lower than in January, February, March or April. August 1921 witnessed 98 failures compared with 40 during the corresponding month last year, an increase this year o f 145%. In liabilities involved, August 1921 amounted to $2,658,017, compared with $691,785 reported for August 1920, an increase this year of 284.2%. The average liability per failure for the entire United States in August was $27,467, and in the Fifth District was $27,122. LABOR.— The labor situation in the Fifth District improved during August in skilled labor cir cles, especially in the building trades, textile fields and railroad work, but unskilled labor found few er openings and increased numbers in the ranks of the unemployed. All of the idle textile mills o f the District have resumed operations, the strike centering around Charlotte having been settled. Du ring August the trouble that had been threatening for many months in tw o or three counties in the W est Virginia coal fields reached a climax, and so-called armies of miners and their friends gathered, but were disarmed and dispersed by Federal troops. Farm labor is exceedingly plentiful and cheap, but there is small demand for it. Lumbering interests are working with reduced forces. There was an increase in the demand for women workers in industrial plants during August. TEXTILES.— The tendency toward improvement in textile fields, mentioned in our Review for July, was greatly stimulated by increased demand for finished products which followed the Depart ment of A griculture’s unfavorable cotton report on September 1. and without exception ail corres pondents among textile managers report excellent business. All mills are running on approximately full time, and many of them have sold out their products for several months ahead. The mills that cover ed their requirements for cotton before the recent rise in price are well situated, and the mills that had not previously placed orders for their needs of raw materials are doing so now on an increasing scale. Many o f the textile mills withdrew their goods from the market when cotton rose in price, in order that new prices might be calculated, and the new quotations offered were considerably higher t h a n those quoted earlier in the season. Comparatively little buying has been done at the new figures, but the mills feel that stocks of manufactured goods are low in secondary hands, and they are not afraid of future developments. Naturally the textile market is the first to feel the influence of the great change in the cotton situation, and the stimulating effect of the rise in cotton is reflected in the advancing quo tations on textile mill stocks. FOODS.— For the second month in succession, retail food prices throughout the United States increased in August over the preceding month, the rise averaging 4.3% over July prices, which in turn had been 2.7% higher than in June, according to figures gathered and made public by the Department of Labor. The August statistics were compiled from reports from fifty-one cities, and show that prices increased 24% on potatoes, 13% on eggs,11% on pork chops, cheese and cabbage, 10% on butter, 8% on lard, 6% on sugar, and 5% on canned tomatoes, writh lower percentage increases on ham,oranges,nut mar garine, plate beef, fresh milk, oleomargarine, cornmeal, bacon, rolled oats, rice, canned corn and peas, prunes, chuck roast, hens, wheat cereals and macaroni. Decreases were reported for bananas, leg of lamb, canned salmon, flour, onions, raisins, sirloin steak, round steak, rib roast and tea. Prices were unchanged on evaporated milk, bread, corn flakes, navy beans, baked beans and coffee. It must be understood that the increases and decreases listed do not apply to each individual city, but they are represenative o f the average developments throughout the nation. The general increases in reporting cities in the Fifth District were as follow s: Baltimore, 6% ; N orfolk and Washingon, 5%; Charleston, S. C., and Richmond, 4%. No decreases w^ere reported for any city. AGRICULTURE.— The month of August saw steady declines in crop conditions in the Fifth District, chiefly due to a continuance of the drought mentioned in our July Review. The crops that suffered most were cotton, corn, tobacco and pastures. Southern South Carolina suffered from too much rain, and increased boll weevil damage. The Department o f Agriculture’s report on the cotton crop as of August 25 showed a condition o f 49-3% in comparison with 64.7% on July 25 and a ten year average on August 25 o f 67.7%. The esti mated production based on the August 25 condition was given as 7,037,000 bales, the lowest estimate in twenty-five years. Anticipation of the report sent cotton prices up steadily during the latter part of August, and when the report was released on September 1 quotations jumped day by day until O cto ber futures reached 20.75 on September 10. Spot cotton on the Carolina markets went even higher, and on one market reached 23 cents for middling. Since September 10 the market has weakened, but the declines appear to be the result o f profit taking on exchanges and a natural reaction against the upward movement of recent weeks, and does not indicate a genuine bearish tendency. During the week ending September 17, the future market in New Y ork declined something like 265 points, but spot cotton on the leading markets in the Fifth District declined only about 75 points. The h i g h e r prices have caused some selling, but on the whole the farmers are not yet satisfied that the crest o f the rise has been reached, and no widespread tendency to unload the present crop or last year’s carry-over has developed. The outstanding result of the rise in price has been the growth of an optimistic and cheerful attitude toward future business prospects, which is manifested in increasing activity i n a 11 business lines in the South. The increase in price has overshowed the low production figures, and in view of large carry-over from last year’s crops, the farmers consider themselves in a stronger position with a short crop and high prices than they would be in if the crop was large and prices low. Prices offered for cotton seed have follow ed cotton upward, the suddenness of the increase being even more marked than in the case of cotton. Around September 1 cotton seed brought an average of $20 per ton, but on September 17 prices on the Carolina markets averaged above $40 per ton. The South Carolina tobacco markets have closed, the crop having been short and on the whole o f unsatisfactory quality. Good tobacco brought satisfactory prices, some o f it selling considerably above 50 cents per pound, but low grades were difficult to sell at any price. The Eastern North Caro lina markets opened early in September, and repeated the situation that developed earlier in South Carolina, the good to fine grades selling for good prices, while common or low grades were dull and cheap, with consequent lowering of market averages. The North Carolina and Virginia crops are far below last year's production. The Virginia crop is estimated to be the smallest since 1907, and on ac count of unfavoradle weather much of the crop is o f poor grade. The leading Virginia markets will open September 20. The national outlook for this year’s corn crop improved between July 25 and August 25, but the crops in the Fifth District deteriorated sharply on account of drought. Early corn is generally fair to good, but medium and late crops are very poor, especially in Virginia, where this year's production is estimated at 38,261,000 bushels against 50,100,000 bushels last year. The South Carolina crop is ex pected to reach 44,000,000 bushels against 42,370,000 bushels last year, the increase being due to larger acreage. The condition o f peanuts in Virginia declined from 82% on July 25 to 55% on August 25. The month o f August was dry, and the lack of moisture at the most critical period in the development o f the crop resulted in poor fruitage. The August 25 condition indicates a production of 3,523,000 bushels compared with 4,416,000 bushels last year, and a five year average of 5,308,000 bushels. W e give herewith a table showing the estimated production of the chief crops of the U n i t e d State, based on the condition as of August 25, 1921, July 25, 1921, and the final estimates for 1920. United States Total Crops— Forecast, 1921 September 1 Estimate Crop Cotton (B ales) --------T oba cco (Pounds) __ _ Corn (Bushels) ____ W heat (Bushels) _ Oats (Bushels) ------_ _ — Irish Potatoes (Bushels) — Sweet Potatoes ( B u s h e l s ) -----H ay (A ll Kinds) (T on s) --------------Apples, Com ’l. (B arrels) — ---------Peaches (Bushels) — ________ ________ ________ ____ _ ________ ________ ________ ________ ________ ________ 7,037,000 948,000,000 3,190,000,000 754,000,000 1,090,000,000 323,000,000 110,000,000 94,000,000 18,900,000 33,000,000 August 1 Estimate 1920 Final Estimate 8,203,000 889,000,000 3,032,000,000 757,000,000 1,137,000,000 316,000,000 114,000,000 97,100,000 21,327,000 31,300,000 13,365,000 1,500,000,000 3,232,000,000 787,000,000 1,526,000,000 430,000,000 112,000,000 108,200,000 38,300,000 43,700,000 COAL.— The United States Geological Survey issued the follow ing report relative to the pro duction of bituminous coal during August, the report being released September 10. “ Production o f bituminous coal averaged 1,270,000 tons on the 27 w orking days of August, and the total output for the month is placed at 34,538,000 tons. Although an increase of 4,153,000 tons over the revised figure for July, this was far below normal for August. In the eight years preceding the lowest figure for August occurred in 1914, yet even that month showed 3,213,000 tons more than did August 1921. Compared with the average of the eight years preceding, 1921 pro duction is 62,000,000 tons in arrears and is steadily falling still further behind. W hether or not this subnormal production forecasts a shortage depends, of course, upon whether consumption has fallen off in like degree. That the business depression has greatly curtailed requirements is clear, but no one knows how great the curtailment has been nor what is the present condition of consu mers' stocks o f coalRetail coal dealers say that consumers are very slow about placing orders for their winter’s coal, and they report that their yards are stocked to capacity. Consumers have stubbornly resisted existing prices for fuel, contending that they are too high, but retailers contend that they cannot re duce the prices until transportation costs come down. The mine prices are not much above pre-war quotations, but freight charges, labor, etc., are all higher now than in preceding years. BUILDING MATERIALS.— The market for building* materials of all kinds was more active during August and early September than for several months past, and in some lines prices showed a rising tendency. Lumber o f the better grades has sold at slightly higher price levels than earlier in the summer, but lumber of the lower grades has been dull. Manufacturers claim that lumber is being sold below cost o f manufacture, but they expect little increase in price until there is more demand than at present, due to the readiness o f many small mills, now closed, to resume operations with any ma terial increase of prices. The chief obstacle to a return to practically normal business in the lumber industry is said to be the absence from the markets of large buyers such as railroads, etc. Demand for brick is less active than lumber, and on the whole the demand is poor, with prices low. One corres pondent reports quotations o f $8 per thousand for common brick compared with $30 per thousand reached at the peak in 1920. The paint and varnish trade was better in August than in earlier months, and plumbing supplies were extremely active, due to the completion of many buildings begun with the opening o f construction activities in the spring and early summer. Builders’ hardware continues a slow and reluctant decline, with orders not more than fair. A recent contract let by the City o f Richmond for a fire engine house shows concretely the de cline in building costs within the past sixteen months. On April 15, 1920, the city authorities called for bids for the construction of a brick engine house for one of the suburbs, the lowest figures submitted being $28,300. Considering all estimates prohibitive, the project w^as abandoned temporarily, but on April 15, 1921, new bids were called for and submitted on identically the same plans, the lowest figure this time being $21,663, a decrease within the year of 23.5%. The authorities again postponed the award until the latter part of August, when bids were called for the third time. The contract was then let for$13,495., a decrease in sixteen months of 52.3%, and in four months of 37.7%. W hile the success ful bid was 52.3% below the lowest bid o f April 15, 1920, it was something like 50% above pre-war figures, a similar engine house having been built in another suburb about five years ago for $9,000. BUILDING OPERATIONS FOR THE MONTHS OF AUGUST, 1921 AND 1920 Permit 3 Issued New Construction C IT IE S c fc New 1921 1920 M aryland 1 Baltimore................... 2 Cumberland............... 3 Frederick................... V irginia 4 Lynchburg................. 5 N orfolk ....................... 6 Richm ond.................. 7 R oanoke..................... 8 Staunton..................... W est V irginia 9 C h a rle s to n ............... 10 Huntington .............. 11 Parkersburg.............. N orth C arolina 12 Asheville .................. 13 Charlotte................... 14 D u r h a m .................... 15 Greensboro .............. 16 High P oint................. 17 W ilm ington................ 18 W inston-Salem......... South C arolina 19 Charleston................. 20 Colum bia................... 21 Greenville.................. 22 Spartanburg............... D ist. of C olum bia 23 Washington............... 425 34 2 1921 1921 1920 8 57 51 *58 2 16 84 100 10 27 96 1 1 94 *134 25 *59 34 13 1921 1920 652,200 $ 23,168 0 509,800 $ 5,235 1,000 796,000— 27,611— 5,100— 26,010 140, 296 631,179 105,357 20,800 220.4 45.9 250.5 248.9 381.7 264,460 61,588 412.0 33.2 9 10 11 490.6 6.4— 46.4— 19.7 66.1— 78.3 33.3— 12 13 14 15 16 17 18 9,100 252,988 76,048 *42,335 4,200 4,260 67,716 218,769 2,700 52,843 175,955 4,500 i, 250 296,380 *246,833 30,000 46, 945 *185,245 25,000 32,270 17,245 15,000 20,000 26, 497 170, 420 84,000 116, 725 *165,000 102, 200 170,550 79,891 1,625 13,410 7,150 12,600 18,500 30,555 9,422 62, 400 41, 690 5,150 176, 207 14,785— 58,380— 23, 950 109,0 5 0 - 13,350 28,490 go, 450 380,000 26,500 180,120 56,530 14, 660 24,524 19, 210 9,260 10,473 12,712 25,070 5,925 333,538— 49,412 91,080— 17,965— 507 2,831,706 2, 649,894 476,779 389,380 57 5 10 7 8 4 54 11 11 13 7 55 132, 235 216,410 53, 900 138,675 43,350 187,500 102,277 13 30 26 26 20 7 22 21 20 130 31 34 15 65 26 11 42, 275 64,100 94,900 35,230 284 129 521 T ota ls........... 1637 Increase or Per Cent, of Decrease, Total Increase Valuation or o* Decrease £ 33,550 378,411 664,413 *147,692 21,750 26 20 5 14 *22 10 18 59 1920 350 1,171 1,116 $1,164,800 $2,103,200 $ 14 19 22 89,992 135,536 2 0 1 700 4,800 18 63 126 *119 7 49 36 20 24 21 27 Alterations Repairs 8 940 2, 306 2,015 $7,017,079 $7,013,833 $1,726,047 $1,390,090 $ ♦Includes both new and repairs. 66, 208— 30.5— 1 19.6— 2 87.9— 3 4 5 6 7 8 85.4— 19 126.0 20 4 4 .4 — 21 28.8— 22 269,211 8.9 339,203 4.0 23 —Denotes decrease. Permits for new construction issued in twenty-three of the leading cities of the Fifth District du ring August 1912 totaled 1,637 compared with 940 issued in August 1920, a gain this year of 697 permits, or 74.1%. Total valuation of new w ork in August o f this year amounted to $7,017,079 compared with $7,013,833 for August 1920, an increase of less than one-half of one percent. Permits for alterations and repairs issued in August 1921 totaled 2,306 compared with 2,015 permits issued in August 1920, an increase this year o f 291 permits, or 14-4%’. Total valuation for repair wrork in August 1921 was $1,726,047 compared with $1,390,090 in August 1920, an increase this year o f $335,957, or 24.2%. In com bined valuation for both new w ork and repairs or alterations August 1921 witnessed a total of $8,743,126 compared with $8,403,923 in August 1920, an increase this year of $339,203, or 4%. The figures cited in the paragraph above are gratifying, and show that some progress is being made toward supplying the needed homes in our leading cities. The m ajority of permits issued are for the construction o f residences, the need o f which is greatest, and the number of permits issued in August 1921 not only exceeds the number issued in August 1920, as pointed out previously, but is greater than the number of permits issued for new construction during August 1919 in the same twenty-three re porting cities. REPORT ON WHOLESALE TRADE Net Sales in August, 1921, Com pared W ith L IN E S SOLD Sales in August, 1920 Sales in July, 1921 G roceries (9)* -------------------------------------------------------D ry Goods (8)* ---------------------------------------------------Shoes (8)* -----------------------------------------------------------Hardware (21)* ---------------------------------------------------Furniture (3)* ------------------------------------------------------ 0.7 50.6 84.3 12.7 27.2 Total Averages (49)*----------------- 31.6 j —27.0 — 32.9 —21.3 —38.0 —35.5 , — 31.1 *Number o f reporting firms. The confidential reports on wholesale trade in groceries, dry goods, boots and shoes, hardware and furniture for the month of August show a decided increase in sales for the month over sales during July, a considerable part of the increase being seasonal, due to the placing o f orders for fall delivery. All lines reported upon show increases . The average increase for the five lines was 31.6%. In com parison wih sales during August 1920, the sales for August 1921 showed decreases averaging 31.1%, but since the average wholesale prices in the lines reported upon have declined more than 31.1% within the year, the decrease this year does not indicate a falling off in the actual volume of units of merchan dise sold, with the possible exception of hardware which has suffered particularly from the low prices paid for farm products. W e increased the number of reporting hardware firms from 9 to 21 for this month, the report ing firms being located in every state in the Fifth District. This is indicative of the increased interest in the monthly reports that is being manifested by wholesalers. The follow ing table shows how the forty-nine wholesale firms classified their collctions du ring August, 1921: Lines Sold G r o c e r ie s __ __________ _____ D ry Goods ______ __________ Boots & Shoes ______________ Hardware _____ ________ Furniture _ _ ______________ Totals ____________ Good 3 1 0 1 0 5 Fair 4 6 5 11 3 29 Slow 2 1 2 5 0 10 Poor 0 0 1 4 0 5 Total 9 8 8 21 3 49 FIGURES ON RETAIL TRADE As Indicated By Reports from Twenty-Five Representative Department Stores _________________________for the Month of August 1921__________ Baltimore Richmond W ashington Other Cities District Percentage decrease in net sales during August under sales in August 1920____ — 17.4 — 4.9 — 1.4 —9.1 —9.8 Percentage decrease in net sales from Ju ly 1 through August 31,1921, under sales during the same two months o f 1920___ — 17.2 — 11.0 —2.9 — 10.3 — 10.9 Percentage decrease in net sales during August 1921 under sales during July 1921 ___________________________________ 1.6 —7.2 — 1.8 —3.9 — 1.5 Percentage decrease in stocks on hand at the end o f August 1921 under stocks on hand at the end o f August 1920__ _____ —26.1 — 15.0 —20.8 — 18.4 —22.2 Percentage increase in stocks on hand at the end o f August 1921 over stocks on hand at the end o f July 1921___________ 6.7 5.4 8.9 4.8 7.0 Percentage o f average stocks on hand at the end o f each month since J u l y 1, 1921, to average m onthly sales during the same two months_________________ 475.1 459.0 458.3 501.8 472.3 Percentage o f outstanding orders on A u gust 31, 1921, to total purchases o f m er chandise during the calendar year 1920- 9.8 12.0 6.9 9.0 9.0 Denotes decrease. i Detailed reports from twenty-five o f the leading department stores of the Fifth District show that the dollar value o f sales made in August 1921 was 9.8% less than the dollar value of sales during the corresponding month last year, but indications are that the actual units of merchandise sold was greater this year than last. In calling for reports on August business we asked the co-operating stores to give us figures showing the actual number of sales they had made during the month and during the corresponding month o f 1920. In reply to this request, the majority of stores wrote that they did not keep records of the number of transactions, but enough stores sent in figures to friake the replies valuable The reporting stores showed an increase in number o f sales amounting to 17% in August 1921 in com parison with August 1920, and a few other stores w rote that while they had no accurate figures, they were sure that their volume o f business measured by actual units o f merchandise sold, had been greater in August o f this year than last. The dollar value of sales in August was 1-5% less than the dollar value in July, the preceding month, but this is a regular seasonal dullness. In stocks on hand at the end o f the month, the August 1921 totals were 22.2% lower than those at the end o f August 1920, but 7% greater than those at the end o f July 1921. The reduction under last year’s figures is doubtless due to price declines, and the increase over the July 1921 figures is sea sonal, some fall goods having arrived during the latter part of August. In outstanding* orders for merchandise the reporting stores show 9.0% o f total purchases for the calendar year 1920, indicating a continued caution in placing orders for future delivery. The stores are keeping their stocks up to approximately normal figures, but are doing it by placing many small orders for quick delivery as the goods are needed rather than placing their usual orders a season ahead. The receipts o f some fall goods toward the end of August sent the average of stocks on hand to net sales at the end of the months July and August, higher than the average at the end o f July, the per centage being 472.3% at the end of August in comparison with 453.3% at the end o f July. The percen tage of stocks carried during July and August o f 1920 to net sales during the same tw o months for practically the same stores reporting this year was 560.7%, indicating a quicker turn-over for this year than in 1920. There has been little change in the type of buying done by the reporting stores or by their customers since our July Review was written. The stores continue their cautious policy in buying, and their cus tomers continue to insist upon real value for their money, buying chiefly medium priced and standard articles. (Compiled September 19, 1921)
@FedFRASER