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MONTHLY

REVIEW

BUSINESS AND AGRICULTURAL CONDITIONS

WILLIAM W.

H O X T O N , CHAIRMAN AND FED ERAL R ES ER V E AGENT

SEPTEMBER 30, 1925

RICHMOND, VIRGINIA
In most years August is one of the dullest months
in business, but this year there was less seasonal re­
cession that usual. The volume of business done
was larger than in August 1924 in practically all
lines of trade, and compared favorably with earlier
months this year. Manufacturing was more active
than a year ago, and there is a more general feeling
of optimism as to prospects. There are weak spots
in the agricultural situation, and crop yields have
been seriously reduced by a severe drought of long
duration, but probably on the whole farm prospects
are better in the District this year than they were
a year ago. Maryland crops average better than last
year, Virginia’s are not much lower, and both Carolinas appear to have somewhat better prospects.
Conditions in the Piedmont section of South Carolina
are bad, but to offset this there has been a recovery
in southern, central and eastern counties of that
State. The textile industry is still handicapped by

hand to mouth buying, but a considerable volume of
business is being done in small orders. The coal
industry of the Fifth District is not only experi­
encing a seasonal increase in orders, but is benefitting
from the anthracite strike. Labor is fairly well em­
ployed, chiefly as a result of the continuation of a
large volume of construction work throughout the
District. The value of building permits issued in
August exceeded the August 1924 valuations. Con­
sumers are spending their wages freely, as is attested
by the increased volume of debits passing through the
banks this year in comparison with last year. Re­
tail trade as reflected in department store sales dur­
ing August exceeded August 1924 trade by 10 per
cent, and wholesale trade on the whole compared fa­
vorably with 1924. Business failure in August in
the Fifth District were the lowest in both number
and liabilities for any month since September 1924,
and were also lower than in August last year.

RESERVE BANK OPERATIONS— Seasonal needs for the marketing of agricultural products, par­
ticularly cotton and tobacco, brought an increased demand for credit at the Federal Reserve Bank of Rich­
mond during the past month. Between August 15th and September 15th, member banks borrowing at the
Reserve bank increased from $50,872,000 to $53,924,000, and the circulation of Federal Reserve notes of
the Richmond bank rose from $70,819,000 to $75,758,000. Between the dates mentioned, member bank re­
serve deposits declined from $65,378,000 to $63,748,000, and as a result of the several changes in the items
enumerated the cash reserves of the Federal Reserve Bank of Richmond dropped during the month from
$85,559,000 to $81,703,000. The ratio of cash reserves to combined note and deposit liabilities declined from
61.18 per cent on August 15th to 58.17 per cent on September 15th.
The Federal Reserve Bank of Richmond is extending a much larger amount of credit to members this
year than at the same time in 1924. On September 15, 1924, member bank borrowing totaled $38,372,000
in comparison with $53,924,000 on September 15, 1925, and during the year under review the circulation of
Federal Reserve notes rose from $72,254,000 to $75,758,000. Little change is shown in member bank reserve
deposit figures between the 1924 and 1925 dates, a rise from $63,670,000 to $63,748,000 having occurred.
The cash reserves of the Federal Reserve Bank of Richmond declined during the year from $104,022,000 to
$81,703,000, and the ratio of reserves to combined note and deposit liabilities dropped from 76.33 per cent on
September 15, 1924, to 58.17 per cent on September 15, 1925.
SAVINGS DEPOSITS— Deposits in fourteen mutual savings banks in Baltimore declined during
August from $149,932,000 to $149,571,500, but at the end of the month were 4.6 per cent greater than on
the corresponding date in 1924, when an aggregate of $143,030,792 was reported. As pointed out elsewhere
in this Review, time deposits in reporting member banks in the Fifth District also declined in August,
falling from a total of $200,755,000 on August 12th to $198,645,000 on September 9th. Both declines appear
to be of a seasonal nature, decreases in time and savings deposits having occurred in August during four of
the six years for which records are available.




The National Summary will be found on page 8

CONDITION OF SEVENTY-TWO REPORTING MEMBER BANKS IN SELECTED CITIES
ITEMS
1. Total Loans and Discounts (including
all rediscounts) ..........................................
2. Total Investments in Bond 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....

September 9, 1925

A ugust 12, 1925

September 10, 1924

$ 516,228,000

$ 501,557,000

$ 468,035,000

125.753.000
641.981.000

130.543.000
632.100.000

117.368.000
585.403.000

38.193.000
14.706.000
367.201.000
198.645.000
21.589.000

38.647.000
16.811.000
355.007.000
200.755.000
17,498,000

37.835.000
13.414.000
342.525.000
179.898.000
8,765,000

The accompanying table shows the principal items of condition reported by seventy-two identical mem­
ber banks in thirteen Fifth District cities as of three dates, September 9, 1925, August 12, 1925, and Sep­
tember 10, 1924.
During the past month there was a seasonal increase in the reporting banks’ accommodations to their
customers, total loans and discounts rising from $501,557,000 on August 12th to $516,228,000 on September
9th. This expansion in loans was accompanied by a reduction in investments in bonds and securities from
$130,543,000 to $125,753,000; a decline in reserve balances at the Reserve bank from $38,647,000 to $38,193,000; a decrease in cash in vaults from $16,811,000 to $14,706,000; and a drop in time deposits from
$200,755,000 to $198,645,000. Demand deposits rose with the loan expansion from $355,007,000 on August
12th to $367,201,000 on September 9th, and between the same dates the reporting banks increased their
borrowing at the Reserve bank from $17,498,000 to $21,589,000.
A comparison of the figures in the table reported on September 9, 1925, with those reported on Septem­
ber 10, 1924, shows that during the year the banks increased their loans to customers, their investments in
bonds and securities, their reserve balances at the Reserve bank, and their cash in vaults. These gains in
resources were offset by material increases in both demand and time deposits during the year, and by a consid­
erable increase in borrowing at the Reserve bank.

DEBITS TO INDIVIDUAL ACCOUNTS IN LEADING TRADE CENTERS
TOTAL DEBITS FOR THE FOUR W EEKS EN D IN G
CITIES
September 9, 1925

A ugust 12, 1925

September 10, 1924

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

26.356.000
379.484.000
24.199.000
31.854.000
38.211.000
16.342.000
7.705.000
7.701.000
23.711.000
17.361.000
17.350.000
9.404.000
23.231.000
18.259.000
6.900.000
55.032.000
20.082.000
128.448.000
22.477.000
11.409.000
183.090.000
15.946.000
27.979.000

24.843.000
393.399.000
18.418.000
30.908.000
40.265.000
12.961.000
8.511.000
8.425.000
23.075.000
16.216.000
19.405.000
9.374.000
23.227.000
17.028.000
7.876.000
55.585.000
29.685.000
113.086.000
22.485.000
11.405.000
203.886.000
15.258.000
33.068.000

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
5,6342000
50.882.000
25.350.000
114.639.000
21.828.000
11.423.000
157.400.000
14.171.000
28.447.000

District Totals

$1,112,531,000

$1,138,389,000

$1,009,057,000

Debits to individual, firm and corporation accounts in twenty-three leading business centers of the
Fifth Reserve District declined from a total of $1,138,389,000 during the four weeks ending August 12,
1925, to a total of $1,112,531,000 during the four weeks ending September 9, 1925, a decline during the
corresponding period having occurred in each of the past six years. A majority of the reporting cities gained



2

during the later period, twelve cities reporting higher figures in comparison with eleven cities reporting de­
creases, but the decreases in several cities were comparatively large and offset the gains.
In comparison with the four weeks ending September 10, 1924, the corresponding four weeks this year
showed a total increase from $1,009,057,000 to $1,112,531,000 seventeen of the twenty-three cities reporting
larger figures for the 1925 period. Five of the six cities that reported lower totals this year are in the
Carolinas, and were probably adversely effected by the marked decrease in cotton production in the Piedmont
section of those states.

BUSINESS FAILURES— Commenting on the business mortality record for August, Dun's Review for
September 5th says, “ Each of the last four months has shown a decrease in the number of commercial failures
in the United States, and the August total of 1,513 is the smallest for nearly a year. It compares with 1,685
in July, 1,745 in June, 1,767 in May, and with this year’s high point of 2,317 reached in January. The re­
duction from the latter figure is 34.7 per cent. The number for August is less than for all months since
last September, when 1,306 defaults were reported, and is slightly below the 1,520 failures of August 1924.
In contrast to the decrease in the number of defaults, last month's liabilities exceed those for the three immedi­
ately preceding months, the aggregate being $37,158,861. This compares with $34,505,191 for July, but is
materially below this year’s maximum of $54,354,032, established in January. There also is a marked falling
off from the $55,153,981 of August 1924. For eight months of the current year the indebtedness shows a
reduction of about 21 per cent from the amount for the corresponding period of last year, although the num­
ber of defaults has increased 5 per cent. There were fewer large failures last month than in any previous
August since 1920, those having liabilities of $100,000 or more in each case numbering 43. This compares
with 53 large defaults in August 1924, 56 in August 1923, 59 in August 1922, and 69 in August 1921. In
August 1920 the number of large failures was 38.”
The Fifth District failure statistics for August were in line with the national figures, the number of
insolvencies falling from 101 in August 1924 to 98 in August this year, and the liabilities involved dropping
from $4,233,075 to $1,565,924, both number and liabilities during the month being the lowest for any month
since September 1924.
LABOR— No material changes developed in labor circles in the Fifth District between the middle of
August and the middle of September except in the coal fields of West Virginia where sharply increased pro­
duction of bituminous coal gave miners steadier employment and correspondingly increased payrolls. In the
textile centers some further curtailment of operations shortened the number of working days. Crops matured
earlier than usual this year, and the demand for laborers for harvesting has been active, but there has gen­
erally been enough workers to supply pressing demands. All of these developments were seasonal, how­
ever. In the cities, building construction is holding up better than might be expected at this season, and
labor in building trades is therefore more fully employed than in most years. There is a small surplus of
common labor in nearly all Fifth District cities, and a distinct surplus of clerical workers, but no serious
unemployment has been reported at any particular point.
COAL— The anthracite coal strike which began on September 1st has naturally increased the demand for
bituminous coal, and West Virginia mines are getting their share of the increased orders. Demand for bitu­
minous coal increased sharply during August, the increase being partly seasonal and partly due to some fear
that bituminous mines might become involved in the anthracite controversy. During August 44,882,000 net
tons of soft coal were mined, compared with 39,582,000 net tons mined in July and 37,167,000 tons in June.
West Virginia continues to lead all coal producing states in production and since the first week in May has
exceeded its 1923 output, the record year for production during the summer months. Prices at the mines have
risen sharply since the middle of August, and the combination of numerous orders and good prices has
greatly improved the business outlook in the coal producing section of the Fifth District.
Coal at retail has advanced in price from $1.00 to $1.50 a ton since our August 31st Review was writ­
ten, and dealers state that further advances are expected in the near future. Soft coal is plentiful, and
most dealers have a moderate supply of anthracite, but there is not sufficient hard coal in dealer’s stocks
to carry them through the winter, and if the anthracite strike continues very long customers will have to sub­
stitute soft coal or some other fuel. The Fifth District uses relatively little hard coal, however, and the
public seems to be entirely apathetic toward the anthracite strike.
TEXTILES— Conditions in textile manufacturing appear to have improved slightly since the middle of
August, although mill authorities state that there is still much room for further improvement. Uncertainty
as to the size of the 1925 cotton crop, with consequent uncertainty as to future cotton prices, has caused buy­
ers to hold off orders for future delivery, and mills have therefore had to be content with hand to mouth
buying, of which there has been an increased volume during recent weeks. Fifth District mills curtailed pro­
duction further in August, partly because of a lack of orders for standard fabrics and partly because of power
shortage as a result of the long drought in the Carolinas. Mills in the two Carolinas and Virginia con­
sumed 170,194 bales of cotton during August, compared with 189,871 bales used in July this year and
140,710 bales used in August 1924. Our correspondents among textile manufacturers write that prospects



3

on the whole have improved recently, and fairly satisfactory business is forecast for the fall and winter
months. At present prices of raw cotton and manufactured goods, the business the mills are now doing is
somewhat more profitable than the business done last spring.

BUILDING OPERATIONS FOR THE MONTHS OF AUGUST, 1925 AND 1924.
Premits Issued
.0
Z

CITIES

New

679
23

8

32
*17
13
135
3
125
81
13
25

3
4
5
6
7
9

10
11
12

13
14
15
16
17
18
19

20
21
22
23
24
25
26
27
28

Frederick, Md......
Hagerstown, Md...
Danville Va..........
Lynchburg, Va.....
Norfolk, Va.
Petersburg, Va.....
Richmond, Va......
Roanoke, Va.
Bluefield, W. Va...
Charleston, W. Va.
Clarksburg, W. Va
Parkersburg,W.Va
Asheville, N. C.....
Charlotte, N. C.....
Durham, N. C.
Greensboro, N. C.
High Point, N. C...
Raleigh, N. C........
Salisbury, N. C.....
Wilmington, N. C.
Winston-Salem, N. C.

Charleston, S. C ...
Columbia, S. C.....
Greenville, S. C-...
Spartanburg, S. C.
Washington, D. C.

10

22

26
43
53
36
45
67
55
13
9
53
9
23

10

27
182

Alf-Pk-rntinriQ

Repairs

1925 1924

1 Baltimore, Md......
2 Cumberland, Md...

N pw r'nncfrnr'finn

1925

1924

1924

1925

1924

1925

611 1,157 1,308 $ 5,686.320 $ 3,922,800 $ 222,840 $
10
12
46,860
121,748
5,900
49
2
3
31,445
34,600
1,250
7
4
15
50,990
79,675
3,325
60
*13
*34,837
*10,830
21
19
28
18,860
106,443
31,650
56
257,213
1,101,995
24,737
53
98
4
13,252
720
6
3
5,650
73
95
547,035
324,002
125,724
162
31
28
451,030
93
145,290
11,895
95,050
15,150
2
8
18,592
32
86,900
9
6,050
34
7
88,118
12
20
167,310
8,050
39
37,130
254,890
10
11
4,815
94,125
27
221,237
26
38
57
253,400
11,363
12
248,200
13,270
49
13
806,220
120,000
9
15
16
24,225
164,785
621,048
28
237,420
25,508
79
33
10
116,715
44
7,200
195,025
7
231,890
16
8,075
46
11
133,134
21
0
53,910
7,836
50,150
23
22,600
6
11,700
10
38,250
8
95
568,583
49,031
90
235,160
67
11,212
44
5
18,650
5,750
3
121
35,925
11,335
209,329
17
40
11
60,340
16,060
14
16
72,200
145,350
38
25
104,198
3,883
20
286 5,463,640
3,242,612
500,475
497
523

Totals........... 1,812 2,186 2,245 2,277 $15,009,189 $12,453,855

$1,163,279

Increase or Per Cent
of
Decrease
of
Increase o
Total
or
Z
Valuation Decrease

754,080 $ 1,232,280
26.3% 1
18,437 — 87,425 — 62.4
2
5,650 —
7,555 — 18.8
3
24,000 — 49,360 — 47.6
4
5
17,853 — 73,786 — 59.4
6
178,755 — 998,800 — 78.0
7
10,125 — 17,007 — 72.8
8
97,930
250,827 ' 59.4
9
12,380 — 306,225 — 66.1 10
3,100 — 64,408 — 65.6 11
6,410
858
0.9 12
12,015 — 134,145 — 74.8 13
4,485 — 160,435 — 61.9 14
88,463 — 44,937 — 14.5 15
17,500
553,790 208.4 16
16,350
52,660
38.6 17
16,345 — 374,465 — 58.7 18
9,925
75,585
59.7 19
14,700 — 105,381 — 42.7 20
0
4,076
7.6 21
10,900
16,450
49.1 22
48,020 — 332,412 — 53.9 23
1,250
22,862 326.6 24
27,691
157,048 246.9 25
7,425
20,495
30.2 26
5,720 — 42,989 — 28.5 27
191,436
2,530,067
73.7 28

$1,600,945 $ 2,117,668

15.19b

* Danville figures not included in totals
—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.

Some seasonal decline in construction work is reflected in reports received from twenty-seven building in­
spectors at the end of August, but the recession is less marked than might be expected at this season and
after a record year. Total permits issued for new work in twenty-seven cities for which 1924 figures are
available for comparison numbered 1,812 in August 1925 and 2,186 in August 1924, eleven of the reporting
cities showing higher figures this year. In total valuation of the proposed work, August 1925 with a total
of $15,009,189 exceeded the total of $12,453,855 reported in August last year, twelve of the cities exceeding
their August 1924 figures. Higher valuation figures were reported by the larger cities, Baltimore gaining 26
per cent, Richmond 59 per cent, Charlotte 208 per cent, and Washington 74 per cent. Some other high
percentage gains were reported, but they were chiefly due to low valuations in August 1924 rather than to high
figures this year. In total valuation of all classes of work, the twenty-seven cities totaled $16,172,468 in com­
parison with $14,054,800 in August last year, an increase of $2,117,668, or 15.1 per cent, during the 1925
month.

COTTON— Spot cotton prices continued to decline during the last half of August and the first week in
September, the average price paid growers in the Carolinas falling from 23.74 cents per pound during the
week ending August 15th to 21.44 cents per pound during the week ending September 5th. The Depart­
ment of Agriculture’s condition report issued on September 8th, and reflecting conditions as of Septem­
ber 1st, was lower than had been expected, however, and during the week ending September 12th the average
price paid in the Carolinas rose to 22.43 cents, and advanced further during the week ending September 19th,
the latest period for which figures are available, to 23.88 cents per pound.
The Department of Agriculture's condition report as of August 16th predicted a crop of 13,990,000
* bales, an increase of 424,000 bales over the August 1st estimate, but during the last half of August the
crop deteriorated in all sections of the South, and the Department's September 1st report reduced its



4

estimate of prospective yield to 13,740,000 bales. The condition of the crop was given as 56.2 per cent of
a normal, compared with 59.3 per cent on September 1, 1924. The 1924 crop was 13,627,936 bales, but the
yield would not have been nearly that large if the weather during the fall had not been highly favorable
for the growth of a top crop and for the opening of all bolls. The September 1st condition in South Caro­
lina was 46 per cent, with estimated production of 830,000 bales, North Carolina’s condition on the same
date was 68 per cent and the estimate of production 1,132,000 bales, and Virginia’s condition was 68 per cent
and estimate of production 46,000 bales. The weather was unfavorable for further development during the
first half of September, and all unofficial estimates of the probable yields in the three Fifth District cotton
growing states are now lower than the official September 1st figures.
Cotton consumed in American mills during August totaled 448,665 bales of lint, according to the Census
Bureau’s report of September 15th. This figure compares with 483,898 bales used in July 1925 and 357,380
bales used in August 1924. Cotton on hand in consuming establishments totaled 680,527 bales on August
31, 1925, compared with 866,359 bales on hand a month ago and 552,789 bales a year ago. Public ware­
houses and compresses held 1,040,178 bales on August 31, 1925, compared with 514,196 bales on July 31,
1925, and 802,064 bales on August 31, 1924. Imports of cotton in August totaled 9,266 bales, compared
with 9,927 bales in July 1925 and 4,136 bales in August 1924, while exports during August totaled 315,825
bales, compared with 202,468 bales in July this year and 277,647 bales in August last year. Active spindles
in August numbered 31,269,774, compared with 31,760,596 in July 1925 and 29,010,630 in August 1924.
Cotton consumed in cotton growing states amounted to 302,604 bales in August, compared with 327,087 bales
used in July 1925 and 245,779 bales in August 1924.
The cotton crop is opening very much more rapidly this year than in any recent year, due to the ex­
tremely dry and hot weather. The Census Bureau’s ginning report to September 1st shows 1,892,549 bales
ginned, compared with 947,494 bales ginned prior to September 1st last year and 1,142,660 bales ginned to
the same date in 1923.
South Carolina ginned 91,125 bales before September 1st this year, compared with 11,241 bales to the
same date a year ago, and North Carolina ginned 6,773 bales this year compared with 47 bales in 1924. South
Carolina ginning this year is the highest on record for that state.

TOBACCO— SOUTH CARO LINA. Tobacco markets opened in South Carolina early in August, and
during the month forty independent warehouses sold 23,238,117 pounds for producers, at an average price
of $17.81. The crop is much better than usual, according to the September 1st report of the Agricultural
Statistician of the U. S. Department of Agriculture. A crop of about 68,200,000 pounds is expected, which
is 2,200,000 pounds more than the August 1st estimate and approximately 22,500,000 pounds more than the
1924 production.
NORTH CAROLINA. Markets in three counties in North Carolina opened in August, and sold 13,499,301 pounds of tobacco at an average price of $18.23 per hundred pounds, compared with 9,622,409
pounds at $17.44 per hundred sold on the same markets in August 1924. The September 1st condition of
80 per cent indicates a probable yield of 325,296,000 pounds, compared with 278,320,000 pounds pro­
duced last year. Sales have been unusually heavy since the opening of the season and the quality of the leaf
is much better than last year, but prices are considered rather disappointing by the growers.
V IRG IN IA . Tobacco improved distinctly during August, and the Department of Agriculture’s esti­
mate of production was raised to 104,346,000 pounds, a gain of approximately 22,000,000 pounds over the
August 1st estimate. Stands are exceedingly irregular, however, and leaves are generally short. Virginia’s
1924 crop was 136,500,000 pounds.
M ARYLAN D . This year’s tobacco yield in Maryland is forecast at 20,200,000 pounds, compared with
21,420,000 pounds grown in 1924. Early tobacco is being cut and housed, and growers report that it is cur­
ing well.
AGRICULTURAL NOTES'— M ARYLAN D . The composite condition of all Maryland crops on Sep­
tember 1st was 104.3, indicating on that date a 4.3 per cent better condition than the ten year average, ac­
cording to the Federal crop statistician for Maryland. The average is 11.6 per cent above the corresponding
figure on August 1st. The weather in August was favorable, and crops and pastures improved noticeably.
The corn crop in Maryland is estimated at 26,630,000 bushels, compared with 18,538,000 bushels gathered in
1924 and a five year average of 23,926,000 bushels. Maryland apples are expected to yield about an aver­
age crop, 1,626,000 bushels this year in comparison with 1,749,000 bushels last year. The 1925 commer­
cial crop of 282,000 barrels is larger than the 254,000 barrels that made up the commercial crop in 1924,
but is slightly below the five year average of 283,000 barrels.
VIRG IN IA . Weather conditions during August were fairly favorable in the northern and eastern
counties where crops made some improvement, but in the central counties the rains early in the month came
too late to do very much good. The western and southwestern sections had practically no rain during August.
Farm work is very backward, the extreme dryness of the soil having prevented plowing for fall planting. In



5

the southwest pastures are parched, and farmers were forced to ship their cattle two months earlier than
usual. Corn in northern and eastern districts improved during August, and good yields are now indicated
in those sections, but conditions were unfavorable elsewhere in the State and prospects are poor. The Sep­
tember ist condition of 68 per cent indicates a corn crop of 42,281,000 bushels this year, compared with
37.006.000 bushels last year. Hay production is estimated at 792,000 tons this year, compared with 1,370,000
tons in 1924. Pastures are very poor in all parts of the state. The peanut yield for 1925 is forecast at
117.652.000 pounds, compared with 74,100,000 pounds produced in 1924, but September is the critical month
for peanuts and the final crop is therefore still doubtful. Virginia’s commercial apple crop is forecast at
1.221.000 barrels this year, compared with 2,520,000 barrels in 1924. The size of the apple is much smaller
than usual in most sections, and in some orchards apples are dropping badly, but the quality of the fruit is
very good, and it appears that an unusually large percentage of the crop will grade Number 1. Gathering
has commenced and the carlot movement is becoming heavy, most of the early shipments going into the export
trade.
NORTH CAROLINA. August weather was unfavorable for crop development in North Carolina, but
rains have fallen in many sections since September 1st and considerable improvement has been reported
since that date. Corn in the western and Piedmont sections is poor on uplands but good in bottoms. In
eastern counties the crop is fairly good and appears to be turning out better than had been expected. A
crop of 41,814,000 bushels is expected this year, compared with 44,514,000 bushels grown last year. Potatoes
look promising in growth of plants, but when dug the yields are disappointing. A yield of sweet potatoes of
8.884.000 bushels is forecast, and the Irish potato crop is estimated at 3,402,600 bushels, the latter being only
a little over half of last year's production. Hay yields are very poor. Peanuts improved during August, and
a crop of 196,928,000 pounds is expected, an improvement of 29 per cent over the 1924 crop.’ The principal
peanut counties are located in the northern Coastal Plain where rain has been most abundant this season.
SOUTH CARO LINA. All of the crops in South Carolina show a poor condition as a result of the low­
est rainfall since the establishment of the Weather Bureau 39 years ago. This drought together with in­
tense heat of well over 100 degrees caused marked deterioration during August. Many trees have died for
lack of moisture, and streams are low over the entire State, many being completely dry in the Piedmont sec­
tion. The Piedmont corn crop is almost a complete failure and many hundreds of acres of grain stubble
are yet unturned for hay crops. This situation is intensified by a very poor cotton crop. The southern and
eastern sections, although much below normal rainfall, have fair to good crops, running to excellent in some
localities. The corn crop of the State is estimated at 19,900,000 bushels, about 2,000,000 bushels under the
very small 1924 crop. Hay condition is only 36 per cent of a normal, and the dry weather prevented the turn­
ing of stubble for the summer hay crops. Peanuts showed a marked decline during August, and the crop is
forecast at only 10,857,000 pounds in comparison with 22,400,000 pounds in 1924 and a five year average of
27.862.000 pounds. The sweet potato crop is very short, the expected yield of 5,167,000 bushels ’being
3,000,000 bushels below the average production for the past five years.

WHOLESALE TRADE, AUGUST, 1925
Percentage increase
41 Groceries
— 3.8
Percentage increase
0.9
Percentage increase
eight months of
3.7
Percentage increase
0.4(11)
Percentage increase
3.3(9)

(or decrease) in sales in August 1925,, compared with sales in July 1925:
11 Shoes
17 H ardw are
6 Furniture
13 D rugs
15 D ry Goods
86.8
12.3
— 20.3
53.2
— 2.9
(or decrease) in sales in A ugust 1925,, compared with sales in August 1924:
14.6
— 5.2
5.6
4.0
— 2.1
(or decrease) in sales since January 1, 1925, compared with sales during the corresponding
1924:
— 0.5
— 7.1
17.0
— 6.9
2.9
(or decrease) in stock on A ugust 31, 1925, compared with July 31, 1925:
3.7(2)
— 16.3(5)
2.9(5)
—- 0.6 (8)
(or decrease) in stock on A ugust 31, 1925, compared with A ugust 31, 1924:
— 29.3(5)
— 10.3(5)
0.3(2)
— 12.3 (8 )

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

Wholesale trade in August increased over July in dry goods, shoes and hardware, but declined in gro­
ceries, furniture and drugs. In comparison with August 1924 sales, sales in August this year were greater
in groceries, shoes, furniture and drugs, while sales in dry goods and hardware were smaller. Cumulative
sales since January ist were larger this year than last in groceries, furniture and drugs, but less in dry goods,
shoes and hardware. Stocks increased during August in groceries, hardware and furniture, but decreased in
dry goods and shoes as a result of heavy seasonal shipments to retailers. In comparison with stocks on hand
August 31, 1924, those on hand on the same date this year were larger in groceries and furniture, but less in
dry goods, shoes and hardware.



6

Collections during August were classified by the reporting firms as follows:
Lines
Groceries .............................
Dry Goods...........................
Shoes ...................................
Hardware ...........................
Furniture.............................
Drugs...................................
August Totals.....................

Good
1925-1924
7 6
0 1
0 0
1 2
1 1
3 4
12

14

Fair
1925-1924
24
28
8
8
7 6

7

7

5 4
6
6
57

59

Slow
1925-1924
8 4
7
6
3 4
6
6
0 1
2 1
26

22

Poor
192 5-1924
0 1
0 0
0
0
1
o
0 0
0 0
1

1

Total
1925-1924
39
39
15
15
10
10
15
15
6
6
n i l
96

96

FIGURES ON RETAIL TRADE
As Indicated By Reports from Twenty-nine Representative Department Stores for the
Month of August 1925
Percentage increase in August 1925 sales over sales in August 1924:
Richmond
Washington
Other Cities
D istrict
Baltimore
9.7
5.2
10.7
10.0
13.5
Percentage increase in sales from January 1st through August, over sales during the same eight months in 1924
9.7
4.8
2.2
2.9
4.1
Percentage increase in August 1925 sales over average August sales during the years 1920-1924, inclusive:;
23.3
5.6
7.7
— 3.4
4.4
Percentage increase in stock on August 31, 1925, over stock on August 31, 1924:
9.3
— 6.7
— 5.3
7.8
1.5
Percentage increase in stock on August 31, 1925, over stock on July 31, 1925:
2.1
0.5
0.4
— 0.5
0.1
Percentage of sales during August 1925 to average stock carried during that month:
21.1
22.4
19.8
19.6
20.6
Percentage of sales from January 1st through August 31st, to average stock carried during the eight months:
200.1
214.7
160.9
198.7
198.8
Percentage of outstanding orders on A ugust 31st, to total purchases of merchandise in 1924:
10.2
8.8
9.0
8.8
9.0
— Denotes decreased percentage; other figures show gains.

Department store sales in thirteen leading Fifth District cities were distinctly better in August than
in August last year, twenty-nine stores reporting an average increase of 10 per cent. Cumulative sales since
January 1st were 4.1 per cent greater than cumulative sales during the corresponding eight months of 1924,
and August sales averaged 4.4 per cent above average August sales during the five years 1920-1924, inclusive.
Stocks on hand in the reporting stores at the end of August were 1.5 per cent larger than a year ago,
but only one-tenth of 1 per cent larger than at the end of July this year, the latter increase being small at the
season of the year when a considerable amount of early fall goods is usually received. Outstanding orders at
the end of August amounted to 9 per cent of total 1924 purchases, however, a comparatively high figure and
indicating confidence in prospective trade on the part of the store executives.
Sales in the reporting stores during August amounted to 20.6 per cent of average stocks carried during
that month, and cumulative sales since January 1st equaled 198.8 per cent of average monthly stocks carried
during the eight months.




(Compiled September 21, 1925)

7

BUSINESS CONDITIONS IN THE UNITED STATES.
(Compiled by the Federal Reserve Board)

AT

Production of basic commodities declined in August to the
lowest level of the year, but was considerably higher than during
the summer of 1924. Distribution of goods at wholesale and retail
continued in greater volume than a year ago. Seasonal growth in
the demand for credit, arising partly from financing of the crop
movement, was reflected in an increase in the volume of commercial
borrowing.

V

/

w

PRODUCTION. The Federal Reserve B oards index of pro­
duction in basic industries, which is adjusted for seasonal variations,
declined 4 per cent in August, but was 15 per cent higher than a
year ago. Output of steel and of bituminous and anthracite coal,
and activity in the woolen industry, increased in August, while mill
consumption of cotton and the production of flour and lumber
decreased. Employment and earnings of factory workers were
larger in A ugust than in July, but continued smaller than in June.
Building contracts awarded during August, owing chiefly to large
awards in New York, exceeded all previous records. Crop reports
of the Department of Agriculture at the beginning of September,
as compared with forecasts a month earlier, indicated somewhat
larger yields of spring wheat, oats, barley, hay and tobacco, and
smaller yields of corn and potatoes. The mid-September cotton
crop estimate was 13,931,000 bales compared with a forecast of
13,740,000 bales on September 1st.

PRODUCTION IN
BASIC INC)UST*IES

i
Index of 22 basic commodities corrected (or seasonal variation (1919-100)
Latest figure-August 10&

Index of U S. Bureau of Labor Statistics 0913-100. base adopted by Bureau)
Latest figure-August 160.4
PER CENT

50

£

Payro *
_

\

Employment

PRICES. Wholesale prices showed a further slight advance in
A ugust and were near the high level reached in the spring of this
year. Prices of agricultural commodities, which in recent months
have been above the average for all commodities, increased further,
while prices of other commodities declined slightly. Between the
end of A ugust and the latter part of September prices of bituminous
coal, pig iron, rubber and cotton advanced, and prices of spring
wheat, corn, raw sugar and wool declined.

FACTORY E MPLOYMENT
AND P>tYROLL

1922

1

.......

<923

Index of 33 manufacturing industries (1919*100). Latest figures-Auguit

...r

BILLIONS OF DOLLARS

10

All Other Loans

1 Larfttly Commercial *

r _ Investments
Loans on
Stocks and Bonds

M EMBER B ANK CREDIT
1
Weekly figures for Member Banks in 101 leading cities.
September 9th.




TRADE. W holesale trade was 5 per cent larger in August than
in July, owing to seasonal increases in the sales of dry goods and
shoes, and sales of all lines except groceries were greater than those
in August 1924. Sales at department stores and at mail order
houses showed less than the usual increases in August but continued
in greater volume than last year. Stocks of merchandise at depart­
ment stores increased in A ugust and for the first time this year
were considerably larger than in the corresponding month a year
ago. Wholesale firms in all leading lines except drugs and hardware
reported smaller stocks on August 31st than a month earlier. Total
freight car loadings were larger during August than in any month
since last October. Coal shipments, preceding the anthracite strike,
were especially heavy, less than carload lot shipments continued to
increase, and the movement of live stock and grains were seasonally
greater than in July, although smaller than in A ugust 1924.

Latest figures-

BANK CREDIT. At member banks in leading cities loans,
chiefly for commercial and agricultural purposes, showed further
seasonal increases during the first half of September, and at the
middle .of the month were about $275,000,000 higher than at the
end of July. Investment holdings remained in about the same
volume as during previous months, but loans on securities increased
and on September 16th were near the highest level of the year.
A further growth in the total of Reserve bank credit in use occurred
during the five week period ending September 23rd. Member bank
borrowings increased in the early part of September, and after a
temporary decline during the period of Treasury financing, in­
creased to a larger total than at any time since the beginning of
1924. The seasonal growth in the demand for currency during
August was reflected in an increase of $65,000,000 in total money
in circulation. Money rates showed a firmer tendency during the
last week of A ugust and the first three weeks of September. The
prevailing rate on prime commercial paper remained at 4 ^ per
cent, but there was an increased proportion of sales at 4 Y2 per cent.
8