Full text of Economic Quarterly (Federal Reserve Bank of Richmond) : September 1924

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MONTHLY

REVIEW

BUSINESS AND AGRICULTURAL CONDITIONS

WILLIAM W. H O X T O N , C h m r m a n
RICHMOND, VIRGINIA
In average years August is a comparatively quiet
month in business circles, summer activities tending
to slow down and fall business only beginning to
open up toward the end of the month. Business in
the Fifth District during August this year followed
the usual course very closely, and no striking devel
opments were noted in any particular lines of trade.
On the whole, the volume of business done was
about the same as that done during the same month
last year, but at present there is distinctly more
conservatism in evidence than was visible in 1923.
The optimistic attitude toward fall prospects, men
tioned in our Review last month, was somewhat less
marked in mid-September, but there does not appear
to be much real uneasiness over probable future de
velopments. The most unfavorable factor in the
present situation is the decrease in purchasing power
of the District as a result of shorter yields in the
three leading crops and lower prices prevailing for
two of them. The cotton yield in the District is
expected to be only 1,549,000 bales compared with
1.899.000 bales grown in 1923, and cotton prices are
approximately $25 a bale below the mid-September
prices last year. The situation in tobacco is similar,
though less marked, to cotton, this year’s yield in the
Fifth District being forecast at 501,387,000 pounds
in comparison with 622,288,000 pounds raised last
year. Tobacco prices appear to be running some
what below the averages in 1923. Corn prospects
are exceedingly poor, the District’s crop being esti
mated at 124,520,000 bushels in comparison with
188.751.000 bushels gathered in 1923. Corn prices
are higher than a year ago, but since most of the
corn is consumed on the farms where grown, the
farmers will not receive any material benefit from
the advance unless compensating gains are made in
hog and corn fed cattle prices. The effects of this

and

Fe d e r a l Re s e r v e A g e n t

SEPTEMBERS, 1924
unfavorable comparison in agricultural conditions
with those of a year ago are not as serious as might
be thought, however, because last year the Fifth
District farmers gathered relatively large crops of
corn, cotton and tobacco, and received good prices
for the last two.
Aside from the comparatively unfavorable pros
pects in agricultural sections, other business indi
cators appear to justify expectations for a fairly
active fall trade. The textile industry is still handi
capped by uncertainty as to this year’s cotton yield
and prices, but the industry is making some progress
and seems to have turned the corner. The coal
industry is steadily increasing its activities as orders
come in with the approach of winter. Labor is well
employed for this season, chiefly as a result of the
exceptional continuation of construction activity.
The value of building permits issued in reporting
cities in the Fifth District during August exceeded
the August 1923 valuations. Credit is available for
all legitimate needs of the District, member banks in
many cases being able to accommodate their cus
tomers without rediscounting. Consumers are spend
ing their wages freely, as is shown by the large
volume of debits to individual accounts at clearing
house banks, but they are also saving a part of their
income, as indicated by steadily rising deposits in
the banks of the District. Both wholesale and retail
trade in August fell somewhat under 1923 business,
but 1923 was an unusually good year toward the
end, and 1924 does not compare unfavorably with
other recent years. Business failures in August
were more numerous than in August 1923, when
commercial mortalities were at a very low rate, but
were fewer than for any earlier month this year.

The National Summary will be found on pages 10 and 11.

CONDITION OF SEVENTY-FIVE REPORTING MEMBER BANKS IN SELECTED CITIES
Sept. 10, 1924

ITEMS
1. Total Loans and Discounts (including
all rediscounts)................................... $
2. Total Investments in Bonds and Securi
ties .......................................................
3. Total Loans and Investments...................
4. Reserve Balance with Federal Reserve
Bank.....................................................
5. Cash in Vaults...........................................
6. Demand Deposits.......................................
7. Time Deposits............................................
8. Borrowed from Federal Reserve Bank.....

470,191,000

Aug. 13, 1924
$

459,537,000

Sept. 12, 1923
$

464,513,000

118.706.000
588.897.000

119.248.000
578.785.000

131.495.000
596.008.000

38.067.000
13.483.000
343.853.000
181.436.000
8,765,000

36.616.000
13.136.000
337,015,00(0
176.832.000
8,205,000

33.999.000
13.507.000
330.205.000
151.053.000
40.011.000

The accompanying table shows the principal items of condition reported by seventy-five identical banks
as of three dates, September 10, 1924, August 13, 1924 and September 12, 1923, thus affording an oppor
tunity for comparing the totals reported for the latest date with those reported for the preceding month this
year and on the corresponding date a year ago.
The items in the table as of August 13th and September 10th, both this year, show a seasonal expan
sion in credit demands during the past month, chiefly as a result of the opening of the tobacco and cotton
marketing season. Between August 13th and September 10th, total loans and discounts rose from $459,537.000 to $470,191,000, an increase of $10,654,000, and rediscounts at the Reserve Bank rose from $8,205,000 to $8,765,000, an increase of $560,000. During the same period, the reporting banks reduced their in
vestments in bonds and securities from $119,248,000 to $118,706,000. In keeping with the increase in out
standing loans to customers, both demand and time deposits gained materially in the reporting banks between
August 13th and September 10th, the former rising from $337,015,000 to $343,853,000 and the latter from
$176,832,000 to $181,436,000, denoting gains of $6,838,000 in demand deposits and $4,604,000 in time deposits.
Between the same dates, aggregate reserve balances with the Reserve Bank rose from $36,616,000 to $38,067.000, and cash in vaults rose from $13,136,000 to $13,483,000.
A comparison of the items in the table under the September dates this year and a year ago show that
the reporting banks are at present lending more to their customers but are borrowing a great deal less
from the Reserve Bank. It is probable, however, that the reporting banks are borrowing more extensively
from other commercial banks this year than they were a year ago, the cheap money rates now prevailing
in the Eastern financial centers tending to encourage rediscounting outside the Reserve System. On Septem
ber 12th last year the seventy-five reporting banks were lending their customers $464,513,000, and their re
discounts at the Reserve Bank totaled $40,011,000. On the same date their investments in bonds and se
curities totaled $131,495,000; their reserve balances aggregated $33,999,000; cash in vault totaled $13,507,000; demand deposits amounted to $330,205,000; and time deposits totaled $151,053,000.
FEDERAL RESERVE BANK OPERATIONS
The demand for credit at the Federal Reserve Bank of Richmond turned upward during the period
between August 13th and September 15th, both this year, the increased demand being seasonal and due
chiefly to the marketing of agricultural products, especially cotton and tobacco. Between the two dates
mentioned, rediscounts for member banks rose from $32,895,000 to $38,372,000, an increase of $5,477,000,
or 16.6% , and the volume of Federal Reserve notes in actual circulation rose from $68,557,000 to $72,254.000, an increase of $3,697,000, or 5.4%. At the same time the aggregate reserve deposits of member
banks increased by $1,830,000, rising from $61,840,000 on August 13th to $63,670,000 on September 15th.
As a result of the changes mentioned, the cash reserves of the Federal Reserve Bank of Richmond de
creased from $104,661,000 on August 13th to $104,022,000 on September 15th, and the ratio of cash
reserves to combined note and deposit liabilities declined from 79.23% to 76.33% during the month under
review.
On September 15, 1923, the volume of rediscounts for members held by the Federal Reserve Bank of
Richmond amounted to $77,940,000 compared with $38,372,000 on the corresponding date this year, and
Federal Reserve notes in actual circulation on the 1923 date amounted to $84,838,000 compared with $72,254.000 on the 1924 date. During the year the reserve deposits of member banks at the Reserve Bank rose
from $59,001,000 to $63,670,000. As a result of the lessened demand for Reserve Bank credit this year
in comparison with the same period in 1923, the cash reserves of the Federal Reserve Bank of Richmond
rose from $75,912,000 to $104,022,000, and the ratio of cash to combined note and deposit liabilities in
creased from 51.30% to 76.33%.

SAVINGS BANK DEPOSITS
The monthly reports from fourteen Baltimore savings banks show a small decrease in aggregate deposits
at the end of August in comparison with July, but this appears to be a seasonal movement, deposits in these
banks having declined in August during each of the past four years. Total deposits in the fourteen insti
tutions amounted to $143,030,792 on August 31, 1924, compared with aggregate deposits of $137,116,328
on August 31, 1923; $127,653,146 on August 31, 1922; $122,833,151 on August 31, 1921, and $120,195,124
on August 31, 1920. Between August 31, 1923 and August 31, 1924 deposits in the reporting institutions
increased 4.3% and between the corresponding dates in 1920 and 1924 the gain amounted to 19.0%.
DEBITS TO INDIVIDUAL ACCOUNTS IN LEADING TRADE CENTERS
TOTAL DEBITS FOR THE FOUR WEEKS ENDING
CITIES
Sept. 10, 1924

Aug. 13, 1924

Sept. 12, 1923

Asheville, N. C...................................................
Baltimore, Md.....................................................
Charleston, S. C.................................................
Charleston, W. Va..............................................
Charlotte, N. C....................................................
Columbia, S. C....................................................
Cumberland, Md.................................................
Danville, Va........................................................
Durham, N. C.....................................................
Greensboro, N. C................................................
Greenville, S. C...................................................
Hagerstown, Md.................................................
Huntington, W. Va............................................
Lynchburg, Va...................................................
Newport News, Va.............................................
Norfolk, Va.........................................................
Raleigh, N. C......................................................
Richmond, Va.....................................................
Roanoke, Va.......................................................
Spartanburg, S. C...............................................
Washington, D. C...............................................
Wilmington, N. C...............................................
Winston-Salem, N. C..........................................

22,380,000
341.870.000
18.528.000
28.285.000
35.681.000
13.256.000
7.861.000
7.225.000
19.472.000
19.051.000
18.231.000
8.050.000
21.795.000
17.598.000
5.634.000
50.882.000
25.350.000
114.639.000
21.828.000
11.423.000
157.400.000
14.171.000
28.447.000

23,063,000
342.524.000
19.718.000
30.510.000
34.204.000
16.690.000
8.709.000
7.534.000
16.911.000
19.009.000
17.841.000
9.669.000
21.964.000
15.877.000
6.669.000
61.382.000
22.971.000
103.832.000
20.227.000
10.654.000
168.674.000
15.530.000
31.497.000

21,235,000
305.700.000
21.549.000
31.128.000
31.482.000
17.431.000
7.211.000
7.195.000
16.179.000
16.226.000
21.728.000
8.271.000
22.503.000
16.851.000
6.247.000
57.205.000
27.400.000
116.742.000
20.918.000
8.136.000
151.896.000
14.108.000
23.812.000

Totals for 23 cities..................................

1,009,057,000

1,025,659,000

971,153,000

The accompanying table shows total debits to individual, firm and corporation accounts in the clearing
house banks in twenty-three of the chief trade centers of the Fifth Reserve District during three periods of
four weeks each, ending September 10, 1924, August 13, 1924, and September 12, 1923, thus affording an
opportunity for comparing the latest four weeks period with (1) the preceding like period this year, and (2)
the corresponding period last year. The debits figures include all checks drawn on deposit accounts of indi
viduals, firms and corporations, and the United States Government, including checks against savings accounts,
payments from trust funds and certificates of deposit paid.
Total debits in the twenty-three reporting cities amounted to $1,009,057,000 during the four weeks end
ing September 10th, compared with $1,025,659,000 reported for the preceding four weeks, ending August
13th this year, a decline during the more recent period of $16,602,000, or 1.6% . Nine of the twentythree cities reported larger totals during the period ending September 10th, the increases probably repre
senting transactions arising out of the marketing of tobacco or increased activity in the textile industry, all
of the nine cities being prominently identified with either the tobacco or textile industries.
In comparison with the four weeks ending September 12th last year, when aggregate Debits of
$971,153,000 were reported by the twenty-three cities, the total of $1,009,057,000 reported for the corre
sponding four weeks this year shows a gain of $37,904,000, or 3.9%, thirteen of the twenty-three cities
reporting higher figures this year. The North Carolina cities stand out prominently in the table, six of
the seven centers included showing gains this year in comparison with the corresponding period in 1923.
Two cities in Maryland out of three show gains this year, Virginia divides equally, three cities reporting
gains and three declines, and Washington reports a gain, while both reporting cities in West Virginia show
lower figures and three out of four of the South Carolina cities show decreases during the year.

BUSINESS FAILURES IN THE TWELVE FEDERAL RESERVE DISTRICTS
AUGUST, 1924 AND 1923.

1924

1923

Per Cent
Increase or
Decrease

102
280
63
158

— 13.6
2.6
— 21.3
36.2
7.4
10.9
8.9
102.2
— 30.5
80.9
— 23.5
80.9

Number
City and District
Boston, First.......................................
New York, Second............................
Philadelphia, Third............................
Cleveland, Fourth..............................

Atlanta, Sixth.....................................
Chicago, Seventh................................
St. Louis, Eighth................................
Minneapolis, Ninth............................
Kansas City, Tenth............................
Dallas, Eleventh.................................
San Francisco, Twelfth.....................

102
183
91
57
123
52
208

118
273
80
116
94
92
168
45
82
68
68
115

Totals...........................................

1,520

1,319

Richmond, Fifth..............................

101

15.2%

Liabilities
1924

1923

$ 1,635,381
28,414,523
1,366,943
3,620,367
4,233,075
1,945,017
3,461,597
922,409
939,258
5,418,201
938,431
2,258,779

966,830
5,734,168
5,027,408
1,870,656
2,907,919
5,598,050
6,163,449
694,960
1,314,746
1,083,184
1,020,596
1,952,756

$ 55,153,981

$ 34,334,722

Per Cent of
Increase or
Decrease

—
—
—
—
—

69.1%
395.5
72.8
93.5
45.6
65.3
43.8
32.7
28.6
400.2
8.1
15.7
60.6%

Commenting upon the figures shown in the above table, Dun's Review for September 6th says, “ The
low point of this year in number of commercial failures in the United States was recorded in August, with
a total of 1,520 defaults. This is a decrease of 5.8 per cent from the 1,615 failures of July, although last
month’s liabilities of $55,153,981 show an increase of nearly 50 per cent over the amount for the earlier
period. The heavier indebtedness for August is accounted for by a number of defaults of unusual size,
those for $100,000 or more in each case totaling 53 and involving $36,064,690. In July, the large failures
numbered 54 and had liabilities of $19,700,000. All commercial defaults considered, the August statement
compares unfavorably with that for the same month of last year, when there were only 1,319 failures for
$34,334,722. In point of number of defaults, however, the business mortality a year ago was at a relatively
low mark, and the present returns show reductions in number of failures from the totals for August of both the
years 1922 and 1921.”
In the Fifth District, business failures in August numbered 101 with liabilities of $4,233,075, com
pared with 94 failures and liabilities of $2,907,919 reported for August 1923, showing increases this year of
7.4% in the number of insolvencies and of 45.6% in the total of liabilities involved. The number of
failures reported in August was the lowest number reported for any month this year, however.
Average liabilities per failure during August 1924 amounted to $36,286 in the nation and $41,912 in
the Fifth District, compared with averages of $26,031 in the nation and $30,935 in the Fifth District
during August 1923, the District average comparing unfavorably with the national average in both years.
LABOR— No material changes in the labor situation occurred during late August and early Septem
ber. The weather has continued favorable for outside work, and there is consequently less idle labor at
present than is usual at this season, although there is a moderate surplus of unskilled workers. Skilled
labor is still employed steadily, but in Richmond and some of the other cities much of this season’s con
struction work is nearing completion and workmen expect the demand for their services to slacken materially
during the next few weeks. Farm labor continues to be a problem, especially in the cotton growing sections
where a large number of pickers are now needed. Textile workers and coal miners are more fully employed
than during the past six months, but other industries have not taken on additional people since our August
30th Review was written. No recent changes in wage scales have been reported to us.
COAL—The demand for coal is steadily improving and mines are increasing their output from week
to week. During the week ending September 6th the average daily production of bituminous coal was
1,510,000 tons in comparison with a daily average of 1,298,000 tons during the first week in August. The
largest increases in operations were reported by the West Virginia fields, according to the Geological Survey.
The mines are now ordering cars to transport over a million more tons a week than they were two months
ago, but the railroads have had no serious trouble in furnishing the desired cars. Despite the recent in
creases in production, however, the output of soft coal is still running considerably below the rate during
all recent years except 1921, when the industry had just started recovery from acute depression. No changes
in retail prices have yet been announced.
TEXTILES— Conditions in the textile industry have changed very little since the middle of August,
but the improvement mentioned in our last month’s Review as having developed during late July and early
August has been maintained and has spread to some extent. Operating time has been materially increased
throughout the District since the middle of July, and distinct gains in orders for textile products have been
reported, but there is in no sense a seller’s market as yet, and consumers still display caution in making
future commitments. In sentiment the situation has changed much more than the actual facts indicate, and

the pessimism that was evident throughout the textile industry three months ago has been replaced by a
moderate but decidedly noticeable confidence in fall and winter prospects. Our information appears to in
dicate that a majority of mill executives believe the corner has been definitely turned, and it is generally
thought that the industry has begun an upward movement that will bring at least a moderate degree of pros
perity to the mills.
Cotton consumed in the Fifth District during August amounted to 140,710 bales, of which North
Carolina mills used 72,550 bales, South Carolina mills 62,547, and Virginia mills 5,613 bales. The numbers
of bales used in North and South Carolina were lower than the numbers used in July, but the Virginia
mills increased their consumption during the more recent month. The Fifth District consumption during
August amounted to 56.8% of total consumption in the cotton growing states and 39.4% of national
consumption.
COTTON— Since our August 30th Review was written spot cotton prices have steadily declined, the
drop during four weeks amounting to more than 5 cents per pound, or $25 a bale. During the week ending
August 1 6th, the latest period quoted last month, prices paid the growers in the Carolinas averaged 27.15
cents per pound for 7/8 inch middling upland cotton, but the week ending August 23rd witnessed a decline
to 25.56 cents. The average during the week ending August 30th dropped still lower, to 25.31 cents, and the
first week in September, ending the 6th, averaged 24.32 cents. Finally, the latest week for which figures
are available, ending September 13th, averaged 22.05 cents, the lowest weekly average since October 1922.
The decline resulted from condition reports, both official and unofficial, that appeared to cause a general
expectation of a crop in the neighborhood of 13,000,000 bales, approximately two and three-quarter mil
lion bales more than the 10,128,478 bales grown in 1923. All of the prices quoted were taken from official
figures collected by the Cotton Quotation Service of the United States Department of Agriculture and rep
resent actual sales of spot cotton on various markets in the two Carolinas.
The Department of Agriculture’s latest cotton report estimated the September 16th condition of the
crop at 55.4 % and the probable yield at 12,596,000 bales, compared with the September 1st condition of
59.3% and an expected yield of 12,787,000 bales. Between September 1st and September 16th cotton
deteriorated in all of the cotton growing states in the Fifth District, the condition figure dropping in North
Carolina from 58% to 52% , in South Carolina from 52% to 47% , and in Virginia from 65% to 60% .
Estimates of probable yield, based upon the September 16th condition, are 782,000 bales in North Carolina,
728.000 bales in South Carolina, and 39,000 bales in Virginia, a total of 1,549,000 bales for the three states
compared with a 1923 production of 1,899,000 bales.
The Census Bureau’s ginning report to September 16th showed 2,662,636 bales compared with 148,645
bales ginned prior to August 16, 1924 and approximately 2,400,000 bales ginned to September 16th last year.
The cotton crop is later this year than last, but it has been opening very rapidly during the past month.
Cotton consumption in American mills turned upward during August, after dropping steadily each
month since January. The Census Bureau’s report placed August consumption at 357,455 bales, in compari
son with 346,671 bales used in July this year and 491,604 bales used in August 1923. Cotton on hand in
consuming establishments at the end of August amounted to 552,669 bales, in comparison with 719,827
bales so held on July 31, 1924 and 806,671 bales on August 31, 1923. Public warehouses and compresses
held 810,913 bales on August 31st, compared with 673,934 bales on July 31st this year and 1,179,204 bales
on August 31st last year. Imports during August totaled 4,136 bales, compared with 6,597 bales in July
1924 and 3,420 bales in August 1923, while exports totaled 277,641 bales in August, against 211,533 bales in
July, and 244415 bales in August last year. Active spindles numbered 28,945,603 in August, 28,710,359 in
July, and 33,708,667 in August 1923. Cotton consumed in the cotton growing states during August num
bered 247,766 bales, compared with 241,069 bales used in July 1924 and 329,162 bales used in August
1923. August consumption in the cotton growing states amounted to 69.3% of national consumption, com
pared with 69.5% of national consumption used in the cotton growing states during July 1924 and 67.0%
used in August 1923.
Virginia’s cotton crop improved during August, but it is still late and backward in growth and the
cool weather of middle September was very unfavorable to further development. North Carolina’s crop
continues poor on the average, shedding of top squares and premature opening being reported from a
number of counties. Bolls and plants are smaller than usual. The boll weevil has not done nearly as
much damage as was expected, however. In South Carolina exceedingly unfavorable dry weather during
late August and early September caused cotton to shed many squares and to open before the bolls were fully
grown. The deterioration was worse in the northwestern counties, which are among the heaviest producers
in the state. The weevil has been more active during recent weeks than earlier in the season, and the final
yield is quite uncertain, though it is now estimated at approximately the same figure as in 1923 when
769.000 bales were ginned. Over five times as much cotton was ginned in South Carolina prior to Sep
tember 1st than was ginned in that state before September last year, indicating clearly how prematurely
the crop is opening.

TOBACCO— Virginia’s tobacco crop improved during August, the condition figure rising from 70%
as of August 1st to 71 % on September 1st, and the official estimate of probable yield increasing from 128,828.000 pounds to 136,746,000 pounds. Approximately 35% of the Bright crop had been harvested by Sep
tember 1st, many fields having been cut early to prevent burning. The Dark tobacco crop was greatly bene
fited by rains during the latter part of August, and the late crop will make considerable improvement. The
early crop is thin and light, but is coloring well. There has been some frost damage to tobacco in a few
sections in the Southwest.
The long wet weather period, followed by dry conditions, resulted in a tobacco weed of thin texture but
good color in North Carolina. The condition of the crop rose from 68% to 72% between August 1st and
September 1st, and the Department of Agriculture’s forecast of production was raised from 270,000,000
pounds to 294,000,000 pounds. Except in the northern Piedmont, tobacco is all harvested and practically
all cured. Marketing is about finished in the southern counties, and is in full swing in the east, while the
Old Belt markets will open early in October. During August there were 17 warehouses operating on 8 mar
kets in North Carolina, and these sold 8,551,576 pounds of producers’ tobacco for an average price of $17.44
per hundred. In August 1923 there were 58 warehouses open in the state, and sales totaled 11,408,915
pounds at an average of $22.52 per hundred. The warehousemen report the quality of the sales this year as
only fair with much poor and chaffy tobacco.
South Carolina’s tobacco crop amounted to 47,047,000 pounds this year, and has been marketed.
Maryland’s tobacco crop for 1924 is estimated at 16,100,000 pounds compared with 19,008,000 pounds
grown in 1923. Conditions improved toward the close of August because of better growing weather but the
crop continues two or three weeks late and most of it will be out late, growers believe. Maryland’s acreage
is smaller than last year.
West Virginia’s crop is expected to grow 6,514,000 pounds of tobacco this year, compared with 7,740.000 pounds produced in 1923.
AGRICULTURAL NOTES— The composite condition of all crops in Maryland on September 1st
was about 12% below their ten year average and 1.2% lower than on August 1st, according to the report
of the Federal crop statistician at Baltimore. Corn prospects are the shortest in twenty-four years, the fore
cast of production for 1924 being 15,690,000 bushels in comparison with an average during the past five
years of 25,500,000 bushels. The acreage is smaller than usual, and the cold, wet spring followed by
drought proved disastrous. An early frost would further reduce the abnormally low yield. The apple crop
is estimated at 1,845,000 bushels, of which 302,000 barrels will be commercial fruit, compared with 2,300,000
bushels gathered in 1923, of which 460,000 barrels move$ into commercial channels. A record hay crop has
been gathered, about 718,000 tons going into the barns in comparison with a five year average of 551,000
tons. Wet weather during the growing season and dry weather for curing accounted for the yield. Reports
indicate that late potato crops were severely damaged by excessive heat and drought. Plowing for wheat is
late, the ground being hard and breaking up rough.
The unusually poor prospects for corn is the outstanding feature of the September report of the Vir
ginia Crop Reporting Service. The present forecast of 33,640,000 bushels is only 63% of last year’s pro
duction, and the average yield per acre this year is the lowest since 1900. Late corn has improved since
the rains early in September, but cool weather retarded growth and much corn will be injured if frost comes
early. In some sections of the Southwest frost damage has already been reported, most of the loss being
in the fodder. The acreage in corn is smaller than usual, wet weather in May and June having prevented
the preparation and planting of a normal acreage. The peanut crop is very late, but has shown considerable
improvement since September 1st. The vine growth is much smaller than usual, and few growers expect to
make an average yield. The late hay crops are light, but rain in mid-September will probably prove quite
beneficial. Gathering of apples in commercial orchards is under way, and some sales at satisfactory prices
have been reported, but buyers are showing little activity. There has been some improvement in the size of
the fruit and the red varieties are coloring well. The late potato crop has shown some improvement re
cently, and sweet potatoes in the commercial sections are yielding much better also, as the rains around the
first of September were very beneficial. Pastures are in good condition. Dry weather in August delayed
plowing for fall grains, but recently this work has made excellent progress and in some sections has been
finished.
Corn prospects in North Carolina declined during August, and the present condition of 65% compares
unfavorably with the ten year average of 85 % . The crop is very spotted, being generally good where planted
early on stiff upland, but poor where planted late on light sandy soils. Frost has done some damage in
mountain counties, where the crop is poorer than for many years. Ears are generally small and fewer in
number than usual, and dry weather has caused the ears to mature before filling out properly. The acreage
is approximately the same as last year. The hay crop in North Carolina is poor. Much of the early hay
that was good was lost through inability to cure it properly in wet weather, and after the summer hay crops
had been planted dry weather resulted in light yields. The peanut crop is expected to yield about 10 % less

than last year, although the 1924 acreage was greatly increased. Growth and stands appear to be fairly good,
except in limited areas where the long wet conditions hurt the crop. Plans are variable for the planting of
small grains this fall, and preparations for winter crops are behind, but the mid-September rainfall will help
greatly toward the preparation for fall seeding. Weather conditions have been favorable for harvesting,
and good progress has been made.
South Carolina’s corn crop is expected to be 10,000,000 bushels less than last year and the poorest since
1909, according to a report issued by the Agricultural Statistician for the state. The expected yield for
1924 is 22,500,000 bushels. Continued hot and dry weather during August reduced the corn condition from
69% on August 1st to 54% on September 1st, and also caused all other leading crops of the state to fall
below last year’s production.
The corn crop in West Virginia is expected to yield about 13,914,000 bushels, compared with 20,128,000
bushels in 1923. Corn is very irregular, varying from poor to good, but the crop is particularly poor in the
extreme eastern counties where there has been severe drought. The apple crop this year is estimated at
7.280.000 bushels compared with 8,320,000 bushels in 1923; hay tonnage is estimated at 1,015,000 tons com
pared with 904,000 tons last year; the oat yield is placed at 4,688,000 bushels compared with 4,704,000
bushels last year; Irish potatoes 4,938,000 bushels compared with 5,880,000 bushels last year; sweet potatoes
349.000 bushels compared with 390,000 bushels last year; and peaches 936,000 bushels compared with
526.000 bushels in 1923.
BUILDING OPERATIONS FOR THE MONTHS OF AUGUST, 1924 AND 1923.
Permits Issued
New Construction
CITIES

New
1924 1923

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

MARYLAND
Baltimore.............
Cumberland.........
Frederick..............
Hagerstown*
VIRGINIA
Lynchburg............
Norfolk................
Petersburg..........
Richmond............
Roanoke...............
WEST VIRGINIA
Bluefield...............
Charleston............
Clarksburg............
Huntington..........
Parkersburg.........
NORTH CAROUNA
Asheville..............
Charlotte..............
Durham................
Greensboro ..........
High P oin t..........
Raleigh
............
Salisbury..............
Wilmington..........
Winston-Salem
SOUTH CAROLINA
Charleston............
Columbia..............
Greenville............
Spartanburg........
DIST. OF COLUMBIA
Washington...........

611
49
7
60

Increase or Per Cent
of
Decrease
Increase
Total
or
Valuation
Decrease

Alterations

Repairs
1924

475 1,308
20
12
6
3
15

1923

1924

1923

808 $ 3,922,800 $ 4,656,240
16
121,748
29,650
34,600
4,550
.1
79,675

1924

$ 754,080
18,437
5,650
24,000

1923

$ 289,080 $— 268,440 — 5.4 °fc 1
67,185
43,350
44.8
2
850
34,850 —645.4
3
4

19
98

17
43

28
56

32
116

106,443
1,101,995

8,160
184,450

17,853
178,755

21,050
68,025

162
93

125
125

95
28

118
46

324,002
451,030

511,275
289,974

97,930
12,380

250,494
19,192

— 339,837 — 44.6
154,244
49.9

5
6
7
8
9

32
34
39
135
27

22
56
41
133
27

8
9
20
32
11

95,050
86,900
167,310
407,636
254,890

53,059
187,905
9,205
271,570
150,000

3,100
6,410
12,015
36,638
4,485

11,150
15,350
62,770
12,295
50,000

33,941
52.9
— 109,945 — 54.1
107,350 149.1
160,409
56.5
59,375
29.7

10
11
12
13
14

26
49
15
79
44
46
23
8
90

38
37
19
57
63
**57
16
10
58

57
12
9
28
10
16
0
6
95

234,284
252,525
203,620
186,557
138,100
**405,840
68,225
105,900
317,735

88,463
17,500
16,350
16,345
9,925
14,700
0
10,900
48,020

96,110
42,375
6,100
16,630
0

—
—
—

2
6
110

221,237
248,200
120,000
621,048
116,715
231,890
53,910
22,600
568,583

— 6.3
— 9.9
— 35.0
213.7
— 8.3
— 39.2
— 21.8
— 71.0
67.4

15
16
17
18
19
20
21
22
23

3
17
14
38

7
25
25
26

5
121
11
25

11
63
29
38

5,750
35,925
60,340
145,350

72,550
143,820
141,215
31,677

1,250
27,691
7,425
5,720

4,250
6,147
12,245
7,705

69,800 — 90.9
86,351 — 57.6
85,695 — 55.8
111,688 283.6

24
25
26
27

497

358

286

534

3,242,612

3,768,701

191,436

517,657

— 852,310 — 19.9

1,886 2,291 2,153 $12,768,564 $12,426,787

$1,603,458

Totals........ 2,255

24
35
16
66
10
6
32
0

700
9,700
50,548

95,086
1,028,275

—
—
—
—
—
—
—

$1,637,608 $

20,694
29,200
73,370
434,206
11,460
159,250
15,015
82,100
248,320

307,627

325.5
407.3

2.2%

♦Hagerstown figures not included in totals.
**Includes both new work and repairs.
—Denotes decrease.
NOTE-The figures in the above table reflect the amount of work provided for in the corporation limits of the several
cities, but take no account of suburban developments.

Building operations are slowing down in the Fifth District, but the decrease is not yet as marked as might
be expected at this season of the year. In fact, the total number of permits for new work issued in twenty-

five reporting cities during August was larger than the number issued during any other month except April
and May this year, but total valuation of new work fell below all months since February. August valuation
exceeded the valuation in August 1923, however, and combined valuation of all permits, including new work
and repairs, was 2.2% above total valuation in August last year. The building inspectors in twenty-five
cities for which comparative figures are available reported 2,255 permits for new work in August, compared
with 1,886 issued in August 1923, and twenty-six cities reported August 1924 valuation figures amounting to
$12,768,564 compared with $12,426,787 in August last year. Notable increases in the number of permits
for new work were reported from Baltimore, Cumberland, Norfolk, Richmond, Greensboro, Winston-Salem,
and Washington, while large increases in estimated valuation came from Norfolk, Roanoke, Huntington,
Greensboro, Winston-Salem, and Spartanburg. Decreases of more than 50% in total valuation were re
ported by Charleston, W. Va., Wilmington, Charleston, S. C., Columbia and Greenville. Alteration and
repair permits totaled 2,291 in August valued at $1,603,458, compared with 2,153 permits and a valuation of
$1,637,608 for similar work in August 1923.
The first eight months of 1924 witnessed an unprecedented volume of construction, and the work done
in 1923 broke all previous records. As a result of all this work, the shortage of residences has been very
materially reduced, and the demand for office and apartment buildings has been met in most of the reporting
centers. There is still a shortage of moderate priced dwellings, but construction of such buildings is not
usually as profitable as more ambitious projects. There is also need in most cities for additional ware
houses, and there seems to be no limit to the demand for private garages.
FIGURES ON RETAIL TRADE
As Indicated By Reports from Twenty-nine Representative Department Stores
for the Month of August, 1924.
Baltimore

Richmond

Percentage increase in net sales during
Aug. 1924, compared with Aug. 1923-..........

—

7.0

—

Percentage increase in net sales from
July 1 through Aug. 30, compared
with sales during the same two months
of 1923...............................................................

—

1.5

Percentage increase in net sales during Aug.
1924, compared with average sales during
the corresponding month of 1920,1921 and
1922....................................................................

— 15.9

Percentage increase in stocks on hand at
the end of Aug. 1924, over stocks on
hand at the end of Aug. 1923.........................

—

1.1

Washington

—

Other
Cities

District

4.3

—

5.0

— 5.3

— 3.7

1.2

—

2.4

—

0.9

22.2

— 4.5

—

4.0

—

6.3

6.9

7.1

—

6.5

—

6.3

— 5.6

Percentage increase in stocks on hand at
the end of Aug. 1924, over stocks on
hand at the end of July 1924.........................

3.3

2.2

— 0.9

—

1.1

1.2

Percentage of average stocks on hand at
the end of each month since July 1, 1924,
to average net sales each month during
the same period, two month..........................

501.2

446.3

481.7

589.2

499.6

Percentage of outstanding orders at the end
of Aug. 1924, to total purchases of
merchandise during the year 1923.................

8.1

9.0

6.4

7.9

7.6

—Denotes Decrease.

Retail trade as reflected by the dollar value of business done in twenty-nine department stores in the
Fifth District was 5.3% less in August than in August 1923, and 6.3% less than average sales in August
during the three years 1920, 1921 and 1922. Cumulative sales from July 1st through August 31st were ninetenths of one percent less than sales during the corresponding two months last year. The decrease in August
sales this year, however, was less than the gain in sales reported last year in comparing August 1923 with
August 1922.
Stocks on hand in the reporting stores at the end of August were 5.6% smaller than on the correspond
ing date a year ago, but were 1.2% greater than at the end of July this year, the increase during the past
month being seasonal and due to the receipt of advance fall merchandise. The percentage of average stock
on hand at the end of each month since July 1st to average monthly sales during the same period, two

months, was 499.6% in comparison with 509.0% reported for the same period in 1923, the decreased figure
indicating a slightly more rapid rate of turnover of stock this year during the two months under review.
Outstanding orders at the end of August amounted to 7.6% of last year’s total purchases of merchandise,
which is a comparatively small figure at this season and reflects the conservative buying that has been so prom
inently in evidence this year.
WHOLESALE TRADE
August 1924.
Groceries
Number of reporting firms in each line............

Dry Goods

Shoes

Hardware

Furniture

Drugs

Percentage increase (or decrease) in net
sales during Aug. 1924, compared with
sales during July 1924...................................

3.7

50.6

81.5

11.7

29.9

1.0

Percentage increase (or decrease) in net
sales during Aug. 1924, compared with
sales during Aug. 1923...................................

— 1.7

—14.7

—12.0

—15.3

27.6

— 1.5

Percentage increase (or decrease) in cumu
lative sales from July 1st through Aug.
31, 1924, compared with sales during the
corresponding two months of 1923...............

— 1.9

—16.0

—14.6

—12.4

21.0

2.2

Percentage increase (or decrease) in stocks
on hand Aug. 31, 1924, compared with
July 31, 1924
.............................................

1.9(11)

— 4.8(8)

7.4(7)

1.8(5)

Percentage increase (or decrease) in stocks
on hand Aug. 31, 1924, compared with
Aug. 31, 1923...................................................

1.3 (8)

—17.3(6)

5.2(4)

—11.6(2)

9.1(7)

0.1(3)

—Denotes decreased percentage.
NOTE:~The number of firms reporting stock figures for the dates compared is shown in parenthesis immediately after the
percentage figure.

Wholesale trade reports received from one hundred and eleven firms covering groceries, dry goods,
shoes, hardware, furniture and drugs show the usual increases in the volume of business done in August in
comparison with July of this year, but every line except furniture included in the reports shows an August
decrease in comparison with August 1923. The table printed herewith gives each line in detail, both sales
and stock figures being included.
Shoe sales in August showed the largest percentage gain in comparison with July, increasing 8 1.5 %,
while drugs with a gain of 1.0% showed the smallest increase. In comparison with August 1923, sales of
furniture at wholesale increased 27.6% during August 1924, but the other five lines reported decreases rang
ing from 1 .5 % in drugs to 15.3 % in hardware. Cumulative sales during July and August were greater
this year in furniture and drugs, but were less in groceries, dry goods, shoes and hardware, groceries show
ing the smallest decline, 1.9% , and dry goods the largest, 16.0%.
Grocery stocks on hand at the end of August 1924 were 1.9% larger than at the end of July, the
preceding month, and 1.3% larger than a year ago, but stocks of dry goods, shoes and furniture were
smaller on August 31st than either a month or a year earlier. Hardware stocks were 1.8% less on August
31st than on July 31st, but were 5.2% larger than on August 31st last year.
Collections were slightly harder to make during August than in July, and were distinctly slower than in
August 1923. A year ago 85.4% of the reporting wholesale firms classified their collections as either Good
or Fair in comparison with 75.7 % so classifying them this year. One hundred and three identical firms
reported on collections in both August 1923 and August 1924, the classifications made being as follows:

Lines
Groceries .
Dry Goods .
Shoes . . .
Hardware .
, «. ,
Furniture .
D ru gs..............................
August Totals , - -

Collections Reported As
Good
Fair
Poor
Slow
1924-1923
1924-1923
1924-1923
1924-1923
8
27
24
1
1
7
5
7
1
10
8
6
I
0
0
4
0
0
0
0
7
9
5
3
2
8
12
6
1
0
0
3
1
1
2
1
0
0
4
5
6
1
0
0
0
7
5
7
24
14
16
23
62
65
1
1
(Compiled September 20, 1924)
9

Total

1924-1923
40
40
15
IS
12
12
16
16
7
7
13
13
103 103

BUSINESS CONDITIONS IN THE UNITED STATES.
Compiled by the Federal Reserv* Board.

Production in basic industries was maintained during August at about the same level as in the two pre
ceding months and factory employment showed a slight increase. Wholesale prices, especially those of agri
cultural products, showed a further advance.
PRODUCTION— The Federal Reserve Board’s index of production in basic industries, adjusted to
allow for seasonal variations, continued in August at the same level as in June and July. Production of
steel was substantially larger than in July and the output of pig iron and mill consumption of cotton also
increased. Sugar meltings and production of anthracite and zinc, on the other hand, were smaller. Fac
tory employment increased slightly in August and average weekly earnings increased 4 per cent owing to
less part-time employment. Larger working forces were reported in the textile, leather, and automobile in
dustries. Building contracts awarded, contrary to the usual seasonal trend, were 3 per cent larger in August
than in July.
Crop conditions showed further improvement in August and the September 1 estimates of production by
the Department of Agriculture were larger for wheat, oats, barley, and potatoes. Estimated yields of corn,
cotton, and tobacco, however, were smaller. Harvesting has proceeded rapidly this year, and the August
marketing of wheat was larger than in either of the last two years.
TRADE— Bank debits, which reflect the volume of business transactions settled by check, showed about
the usual seasonal decrease in August, but were larger than a year ago. Railroad shipments increased
slightly, as a result of larger loadings of miscellaneous merchandise, grain, and coal. Wholesale trade was
7 per cent larger than in July, owing to seasonal increases in sales of dry goods, shoes, and meat, but
continued to be smaller than a year ago. Department store sales showed less than the usual increase in
August and were 7 per cent smaller than last year. Mail order sales increased more than usual at this
season and were one per cent larger than in August, 1923. Merchandise stocks of department stores at the
end of August for the first time this year were smaller than on the corresponding date of 1923.
PRICES— Wholesale prices, as measured by the index of the Bureau of Labor Statistics, increased 2
per cent in August and were at about the same level as a year ago. The advance was due largely to fur
ther increases in prices of farm products and foods, though all other commodity groups except metals and
fuel also advanced. During the first three weeks of September prices of wheat, rye, wool, and rubber in
creased while those of cotton, silk, petroleum, and metals declined.
BANK CREDIT— Loans and investments of member banks in leading cities continued to increase
during the four-week period ending September 10 and on that date reached a record figure about $1,000,000,000 above the level of three months earlier. The largest increase was in loans on stocks and bonds and
commercial loans also increased, owing partly to seasonal demands for credit. The growth of investments
by member banks continued, though at a somewhat slackened rate.
At the Federal reserve batiks there was a further increase in the holdings of government securities
and of acceptances with the result that in the middle of September, although discounts were at the low point
for the year, the total volume of reserve bank credit was higher than at any time since last spring. Seasonal
increase in the demand for currency was reflected in a decline in cash reserves and at the reserve banks in
certain of the agricultural districts in an increase of Federal reserve note circulation.
Slightly firmer conditions in the New York money market in late August and early September were
reflected in a slight advance in the rate on commercial paper from
to 3 A
J Per cent- After the mid
dle of September a recurrence of easier conditions followed Treasury operations. The September 15 offer
ing of one-year Treasury certificates bore 2^4 per cent interest, the same rate as the six-months’ issue sold in
June.

CHARTS SUPPLEMENTING TEXT ON PAGE 10
PRODUCTION IN BASIC INDUSTRIES

Index of 22 basic commodities corrected for

Index of U. S. Bureau of Labor Statistics
(1913=100, base adopted by Bureau) Latest figure

seasonal variation (1919=100). Latest F ig u reAugust 94.

—August 150.

RESERVE BANK CREDIT
MHU9M V MILAM

300*

MILLIONSOf «0LLA*t
MJDG

\
R
w \

WOO

u ,/

1919

1920

1921

1922

Weekly figures for 12 Federal
Latest figures, September 17th.

93 uncorrected.

Vital
Bet*try A*tris

£00

1000

\%
.S

Index of sales of 333 stores in 117 cities
(1919=100). Latest figures—August 118 corrected,

300Q

o
1923

1924

Reserve Banks.

FIF TH

Full text of Economic Quarterly (Federal Reserve Bank of Richmond) : September 1924

FRASER