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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)