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MONTHLY REVIEW CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS WILLIAM W. HOXTON, C h a irm a n an d F e d e ra l R e serv e A gent FEDERAL RESERVE BANK OF RICHMOND RICHMOND, VIRGINIA SEPTEMBER 30, 1934 increased operations in August over USINESS in the Fifth Federal July, but did not reach the level of reserve district in August and FIFTH FEDERAL RESERVE DISTRICT operations of August last year. The early September was fully up to sea threatened strike in the industry ap sonal level in comparison with other recent months, and current crop con parently stimulated very little addition ditions and prices indicate larger in al production before the shut-down oc comes this year in agricultural sections curred. Construction work continues of the district. Rediscounts at the in relatively small volume in the Fifth Federal Reserve Bank of Richmond district, but recent weeks witnessed remained practically at the same low some improvement. Retail trade in figure between August IS and Septem August, as reflected in department ber IS, member banks being able to store sales, made an excellent record care for seasonal demands for credit in the Fifth reserve district, averaging by merchants for discounting Fall bills 10 per cent above sales in August 1933, without assistance from the reserve the highest increase reported by any bank. The circulation of Federal re serve notes registered the usual sea reserve district. Wholesale trade also sonal increase during the past month, the rise being showed improvement last month in all lines for which somewhat larger than in most years. No change oc data are available. Dry goods and shoe jobbers re curred in the reserve bank’s ownership of Government ported larger seasonal increases in sales in August than securities. Reporting member banks in leading cities slightly increased loans between the middle of August usual. In agriculture, prospects for per acre yields in and the middle of September, and also increased invest the Fifth district are excellent this year, composite crop ments in securities and reserve balances at the reserve condition figures on September 1 for all states in the bank. Demand deposits rose considerably last month, district being above the ten-year average, with South but there was a slight decline in time deposits. Debits Carolina showing the highest figure for the entire to individual accounts figures in four weeks ended Sep tember 12, 1934, showed a 4 per cent decrease in com United States. Tobacco production is smaller than parison with the preceding four weeks, ended August last year, due to acreage reduction, and the same state IS, but increased 21 per cent in comparison with debits ment applies to cotton. However, tobacco prices are for four weeks ended September 13, 1933. Commer practically double those of last year, and the purchasing cial failure figures for both number of insolvencies and power of tobacco farmers will be much larger this Fall liabilities involved in August in the Fifth district were better than for any other August since 1920, and com than for several years. Cotton prices have not ad pared more favorably than National figures with Au vanced as much as tobacco prices, but there has been a gust 1933 totals. Employment changed relatively little sufficient rise to compensate fully for reduced produc in August and early September, except for the strike tion. Food and feed crops in the district yielded well, in the textile field, but there are some signs of increased and farmers are well supplied for their needs. Weather construction work in the Fifth district. Coal produc tion in August showed a seasonal rise above July pro throughout the Summer was favorable for farming duction, but was nearly 20 per cent below production operations except in West Virginia, which had insuf in August last year. West Virginia continued to lead ficient rain, and on the whole the outlook for Fall and all states in the output of bituminous coal. Textile mills Winter business appears better than it was a year ago. B MONTHLY REVIEW 2 Statement of 28 Member Banks Reserve Bank Statement 000 omitted ITEMS Sept. 15 1934 Aug. 15 1934 Sept. 15 1933 Rediscounts held ---------------- $ 720 $ 723 $ 10,452 239 193 Open market paper--------------193 0 0 Industrial advances ............ 80 67,971 103,563 Government securities______ 103,563 78,662 Total earning assets______ 104,556 104,479 Circulation of Fed. Res. notes- 157,768 143,256 138,869 67,342 Members’ reserve deposits____ 131,437 124,049 Cash reserves-------------------- 198,572 170,321 147,986 67.78 62.81 Reserve ra tio -------------------66.07 Principal items on the statement of the Federal Re serve Bank of Richmond for three mid-month dates are shown in the accompanying table, affording opportunity for comparison of the latest available figures, those for September IS, 1934, with the figures for corresponding dates a month and a year earlier. In the past month, rediscounts for member banks decreased $3,000, but the Bank advanced $80,000 on industrial loans, a net increase of $77,000 in total earning assets. The port folio of open market paper and holdings of Govern ment securities remained unchanged during the month. Circulation of Federal reserve notes rose by more than the seasonal amount between August 15 and September 15, advancing by $14,512,000, probably due in large part to the opening of tobacco markets in North Caro lina and to early cotton sales. Member bank reserve deposits rose by $7,388,000 during the past month, carrying reserves farther in excess of legal require ments. Aggregate cash reserves of the Federal Reserve Bank of Richmond increased by $28,251,000 between the middle of August and the middle of September, and the ratio of cash reserves to note and deposit lia bilities combined rose by 3.26 points. A comparison of the condition figures for September 15, 1934, with those reported for September 15, 1933, shows marked changes in most items. Rediscounts for member banks, which were very small a year ago, de clined further by $9,732,000, and the portfolio of open market paper also dropped $46,000. On the other hand, holdings of Government securities rose by $35,592,000 during the year. Total earning assets increased by $25,894,000 between the middle of September last year and this. The circulation of Federal reserve notes rose by $18,899,000 during the past year, and member bank reserve deposits increased by $64,095,000. The in crease in note circulation was due in part to higher prices prevailing in many lines this year, especially in receipts for tobacco and some other early agricultural products, and the rise in reserve deposits reflects sur plus funds in possession of the member banks. The several changes in the statement previously mentioned, with others of less importance, increased the cash re serves of the Federal Reserve Bank of Richmond by $50,586,000 during the year, but the ratio of reserves to note and deposit liabilities combined declined by 1.71 points. ITEMS 000 omitted Sept. 12 Aug. 15 Sept. 13 1934 1934 1933 Loans on stocks and bonds (in cluding Governments) _____ $ 57,154 $ 57,103 All other loans____________ 103,867 103,585 Total loans and discounts...... 161,021 160,688 Investments in stocks and bonds 186,051 185,973 Reserve bal. with F. R. Bank.... 56,479 51,093 Cash in vaults_____________ 12,009 10,202 Demand deposits __________ 230,625 221,873 Time deposits ____________ 133,955 134,313 Borrowed from F. R. Bank___ 0 0 $ 59,286 114,094 173,380 159,976 26,361 9,844 182,861 129,269 268 The accompanying table shows the principal items of j condition on the weekly statement of twenty-eight reg ularly reporting member banks in ten leading cities of the Fifth Federal reserve district as of three dates, September 12 and August 15, this year, and September 13, last year, thus affording opportunity for compari son of the latest available figures with those a month and a year earlier. It should be understood that the figures shown are not necessarily the highest or lowest figures which occurred during the periods under review, but represent the condition of the banks on the report dates only. During the four weeks between August 15 and Sep tember 12, the reporting banks increased their loans by $333,000, a small rise in view of the fact that at this season merchants usually call upon their banks for loans with which to discount bills for Fall goods. Loans on stocks and bonds rose $51,000 last month, while All j Other Loans rose by $282,000. The reporting banks i increased their investments in securities $78,000 be tween August 15 and September 12. Aggregate re serve balances of the twenty-eight banks at the Fed eral reserve bank rose by $5,386,000 during the month, and cash in vaults increased by $1,807,000. Demand deposits rose by $8,752,000 since the middle of August, j but there was a small decline in time deposits amount1 ing to $358,000. None of the twenty-eight reporting j banks were borrowing at the Federal reserve bank dur ing the past month. On September 13, 1933, all figures in the combined statement of the reporting institutions were smaller than figures on September 12, 1934, except the loan and rediscount figures. Total loans declined $12,359,000 during the year, of which $2,132,000 was in loans on securities and $10,227,000 was in All Other Loans. Rediscounts at the reserve bank dropped from $268,000 borrowed by two of the reporting banks on Septem ber 13, 1933, to nothing on September 12, 1934. On the other hand, the banks built up their reserve balances at the Federal reserve bank by $30,118,000 during the past year, and also increased their investments in se curities, chiefly Governments, by $26,075,000. Cash in vaults rose by $2,165,000. Aggregate deposits inI creased $52,450,000 between the middle of September j last year and this, demand deposits gaining $47,764,000 I and time deposits $4,686,000. MONTHLY REVIEW Time and Savings Deposits Time deposits in twenty-eight reporting member banks and aggregate deposits in eleven mutual savings banks in Baltimore totaled $327,095,161 at the end of August 1934, a higher figure than either $326,603,107 reported at the end of July this year or $314,058,864 at the end of August 1933. Mutual savings bank de posits increased last month while time deposits in the reporting member banks decreased slightly, but both groups of banks showed increases in time and savings deposits for the year. Debits to Individual Accounts CITIES 000 omitted Total debits, four weeks ended Sept. 13, Aug. 15, Sept. 12, 1934 1933 1934 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............... Portsmouth, Va....... . Raleigh, N. C._____ Richmond, Va............ Roanoke, Va.............. Washington, D. C..... Wilmington, N. C_ _ Winston-Salem, N. C. $ 8,092 209,433 9,606 35,103 37,088 14,938 5,297 4,388 34,170 10,833 10,081 5,116 10,480 10,379 5,707 37,273 2,523 14,578 120,205 15,795 138,857 6,840 22,900 $ 8,162 242,353 9,014 37,628 39,769 18,552 5,169 4,890 21,559 9,636 9,715 5,878 10,124 10,733 5,725 39,384 2,886 23,114 102,739 16,184 149,965 6,691 2|3,150 $ 7,989 179,735 9,683 22,670 32,014 10,536 4,526 4,230 23,714 5,144 10,820 4,443 8,459 10*962 5,077 25,537 2,448 10,942 89,690 15,104 123,716 5,118 21,442 Fifth District Totals $769,682 $803,020 $633,999 Debits to individual accounts figures shown in the table for three equal periods of four weeks include all checks drawn against depositors’ accounts in the banks of twenty-three leading trade centers in the Fifth Fed eral reserve district. Figures for the four weeks ended September 12, 1934, are included, and for comparison the corresponding figures for the preceding four weeks this year, ended August 15, 1934, and the same four weeks last year, ended September 13, 1933, are also listed. Aggregate debits in the reporting cities declined $33,338,000, or 4.2 per cent, in the latest four weeks, compared with figures for the preceding like period, only eight of the twenty-three cities showing higher figures. The cities reporting increased debits last month were Cumberland, M d.; Richmond, V a.; Hunt ington, W. V a.; Durham, Greensboro and Wilmington, N. C.; Charleston and Greenville, S. C. In comparison with debits to individual accounts figures for the four weeks ended September 13, 1933, the figures reported for the corresponding period this 3 year show an increase of $135,683,000, or 21.4 per cent. Twenty of the twenty-three cities reported high er figures for the 1934 period, the three cities which failed to gain being Charleston and Greenville, S. C., and Lynchburg, Va. Part of the increase in 1934 debits is doubtless due to higher price levels in many lines. Commercial Failures Commercial insolvencies in the Fifth Federal re serve district in August 1934 totaled 51, with aggre gate liabilities amounting to $440,675, a decrease in number of 44 per cent and a fall in liabilities of 77 per cent in comparison with 91 failures and estimated liabilities totaling $1,917,769 in August 1933. The number of failures in August was the smallest for any August since 1920, and last month’s aggregate liabili ties were not only the lowest for August since 1919 but were the lowest for any month since June 1920. The record of the Fifth district in August was better than the National average in both number of failures and liabilities involved. In the United States as a whole, failures in August 1934 numbering 929 showed a de crease of 36.9 per cent in comparison with 1,472 fail ures in August 1933, and last month’s liabilities totaling $18,459,903 were 56.8 per cent less than liabilities in August last year. All of the twelve reserve districts showed fewer failures in August 1934 than in August 1933, and aggregate liabilities were also lower in all districts in the 1934 month. Employment The outstanding feature in the employment situation in the Fifth district at present is of course the textile strike, which is of vital importance in the two Caro linas. It is difficult to secure accurate reports on the effects of the strike, but thousands of workers are idle. In Virginia the textile mills have continued operations with little change, and in the Carolinas a large number of mills did not shut down or have re-opened after being closed a few days. On the whole, however, it appears that the majority of mills in the Carolinas are closed. In fields other than textiles, very little change in employment conditions occurred between the middle of August and the middle of September. Some im provement is noted in construction fields, but it is com paratively slight and has not given additional employ ment to many workers. Coal Production Bituminous coal production in the United States in August 1934 totaled 27,490,000 net tons, an average of 1,018,000 tons per working day, a seasonal increase over 25,280,000 tons mined in July this year but 19 per cent below 33,910,000 tons dug in August 1933. Total production of bituminous coal this calendar year through September 8 totaled 241,848,000 net tons, com pared with 217,336,000 tons mined to the same date last year. The August 25 report of the Bureau of Mines, Department of Commerce, gave coal production by 4 MONTHLY REVIEW states for July. West Virginia led all states with 7,685.000 tons, Pennsylvania ranking second with 6,850,000 tons. West Virginia also led in production this raVndar year through July with 58,679,000 tons in comparison with 55,219,000 tons for Pennsylvania. Total production in the Fifth district in July was 8,396.000 tons, or 33.2 per cent of National production, compared with 10,147,000 tons, or 34.4 per cent of National production, mined in the Fifth district in July last year. Textiles There was some increase in activity in the textile field in August in comparison with July, but operations con tinued at a much lower level than a year earlier, in spite of the threatened strike in the industry which might have been expected to stimulate production be fore the shut-down. In August 1934, Fifth district textile mills consumed 188,398 bales of cotton, an in crease of 13.8 per cent over 165,504 bales used in July this year, but 27.7 per cent less than 260,402 bales con sumed in the district in August 1933. Last month North Carolina mills consumed 97,069 bales, South Carolina mills used 80,195 bales, and Virginia mills 11,134 bales, all the figures being lower than the ones reported for August last year. Fifth district con sumption figures in August 1934 were 44.76 per cent of National consumption, compared with 44.22 per cent of National consumption attained by the Fifth district mills in August last year. On August 21, the Department of Commerce issued a report on spindles in place, spindles active in July, total spindle hours of operation in July, and average hours of operation per spindle in place in July. On July 31, 1934, there were 30,937,816 spindles in place in the United States, North Carolina leading with 6,140,404, or 19.85 per cent of the total, South Carolina ranking second with 5,789,142 spindles, or 18.71 per cent, and Massachusetts third with 5,707,900 spindles, or 18.45 per cent. The Fifth district as a whole had 40.67 per cent of total spindles in place in the United States at the end of July 1934. In actual spindle hours of operation, South Carolina led all states for July withj 1,330,385,710 hours, or 25.82 per cent of the National total of 5,151,979,342 hours, and North Carolina ranked second with 1,104,917,376 hours, or 21.45 per cent, while Massachusetts had only 642,698,784 hours, or 12.47 per cent. The Fifth district, with 40.67 per cent of total spindles in the United States in place in July, showed 50 per cent of total hours of operation. In actual hours of operation per spindle in place, South Carolina with an average of 230 hours per spindle ranked first, Virginia with 215 hours ranked second, and North Carolina with 180 hours ranked fourth. The average hours of operation for the United States was 167 per spindle in place. Cotton Statistics Spot cotton prices fluctuated frequently between the middle of August and the middle of September, the trend on the whole being downward as a result of the unfavorable influence exerted by the strike in the tex tile industry. The average price for upland short staple cotton, middling grade, on ten Southern spot markets dropped from 13.09 cents per pound on Au gust 17 to 12.86 cents on September 14, the latest date for which official figures are available. The Department of Agriculture's second condition report of the season, issued on September 8 as of Sep tember 1, estimated 1934 production of cotton as 9,252.000 bales of 500 pounds gross weight, an increase of 57,000 bales over the estimate of production made on the August 1 condition but 3,795,000 bales less than the 1933 yield of 13,047,000 bales. During August prospects for cotton improved in all States east of Alabama, these gains being partly offset by decreases in prospective yield west of Alabama. Texas showed relatively no change during August, but sharp declines in the condition of cotton occurred in Arkansas and Oklahoma. The per acre yield in Oklahoma is the lowest on record for that State. In the Fifth district cotton growing states, South Carolina registered an increase of 83,000 bales in prospective yield during August, the crop improving in all sections of the State except in the Piedmont counties where weevil damage caused some deterioration. North Carolina prospects rose by 50,000 bales last month, and the estimate for production in Virginia rose 3,000 bales. The three states show a combined gain in prospective yield of 136.000 bales. The South Carolina crop for 1934 is now estimated to be 703,000 bales, compared with 735,000 bales picked last year; the North Carolina yield this year of 656,000 bales compares with the 1933 crop of 684,000 bales; and Virginia’s prospective yield of 38.000 bales exceeds last year’s yield of 37,000 bales. The Census Bureau reports that 1,397,886 bales of this year’s crop were ginned prior to September 1, a slightly higher figure than 1,396,139 bales ginned be fore September last year, but in the Fifth district the crop is later than a year ago and ginning figures to September this year were materially smaller. Cotton consumption in the United States in August 1934 rose moderately above the low July figure, but was much below the figure for August 1933. Cotton used in American mills last month totaled 420,949 bales, compared with 359,372 bales used in July this year and 588,902 bales in August 1933. Manufacturing estab lishments held 1,081,218 bales on August 31, compared with 1,230,369 bales held on July 31 and 1,155,556 bales on August 31, 1933. Public warehouses and compresses held 5,824,025 bales in storage at the end of August this year, compared with 5,565,140 bales so held a month earlier and 5,799,467 bales on August 31 last year. August exports totaled 267,562 bales, com pared with 305,820 bales sent abroad in July 1934 and 530,627 bales exported in August 1933. Spindles active at some time during August numbered 24,153,998, compared with 24,417,682 in July this year and 25,926,374 in August 1933. Cotton growing states consumed 336,159 bales in August, compared with 289,557 bales used in July and 464,705 bales in August 1933. Last month’s consump tion in the cotton growing states amounted to 79.86 per cent of National consumption, a lower figure than MONTHLY REVIEW 80.57 per cent in July this year but above 78.91 per cent in August last year. Of the 336,159 bales of cotton consumed in the cotton growing states in Au gust, the Fifth district mills used 188,398 bales, or 56.04 per cent, exactly the same percentage of South ern consumption attained by Fifth district mills in August 1933. 5 harvested last year and a five-year average production of 732,591,000 pounds. Agricultural Notes Crops in all sections of the Fifth Federal reserve district improved during August, and on September 1 all States in the district except West Virginia had pros pects for higher per acre yields than the ten-year aver Tobacco Marketing age, all crops being combined. The average condition South Carolina tobacco markets opened on August 9, figures for all crops in the several states on September and growers were much pleased with prices, which av 1 were as follows: Maryland 102.9 per cent of the 10eraged nearly double the prices received in August year average, Virginia 105.6 per cent, West Virginia last year. The South Carolina Commissioner of Agri 77.7 per cent, North Carolina 112.0 per cent, and culture reports producers’ sales totaling 29,879,104 South Carolina 123.2 per cent, the South Carolina pounds of tobacco in August this year, at an average figure being the highest in the United States. Crops of $22.91 per hundred pounds, compared with sales in Maryland improved 5.6 per cent during August, totaling 32,478,779 pounds at $12.83 per hundred in Virginia crops improved 4.1 per cent, West Virginia August 1933. Although last month’s sales were 2,- crops 3.7 per cent, North Carolina 4.6 per cent, and 599,675 pounds less than sales in August 1933, tobacco South Carolina 11.6 per cent. Maryland corn improved about 9 per cent during the sold last month brought $2,680,462 more. The market at Mullins led in sales in August with 10,064,921 past month, and on September 1 this year’s yield was pounds, Lake City ranked second with 7,332,632 forecast as 16,480,000 bushels, compared with 16,240,pounds, and Timmonsville third with 3,479,954 pounds. 000 bushels gathered in 1933 and a five-year average On a basis of the September 1 condition, the South production of 15,187,000 bushels. An oats crop of Carolina tobacco crop this year is estimated to be 54,- 1.188.000 bushels compares with 1,100,000 bushels last 020.000 pounds, an increase over the August 1 fore year and a five-year average of 1,563,000 bushels. The cast of 48,100,000 pounds, but only about 60 per cent 1934 Irish potato crop of 3,007,000 bushels is larger of the 1933 crop of 88,580,000 pounds, the decrease in than the 1933 crop of 2,700,000 bushels, but is below comparison with last year being due chiefly to acreage the five-year average production of 3,646,000 bushels. reduction. This year’s production is 64 per cent of Sweet potatoes promise a much smaller yield this year, 675.000 bushels comparing with 840,000 bushels in the five-year average yield of 83,820,000 pounds. Aforth Carolina border markets in the South Caro 1933 and a five-year average of 1,493,000 bushels. The lina belt opened on August 9, and later in the month prospects for hay in Maryland totaling 544,000 tons is markets in the New Bright belt opened. North Caro better than last year’s yield of 529,000 tons, and is also lina markets sold 55,419,012 pounds of tobacco for above the five-year average production of 475,000 tons. growers during the month, at an average price of Pastures improved notably during August, advancing $25.82 per hundred pounds, compared with 40,376,997 from a condition of 49 per cent on August 1 to 73 per pounds sold by the same markets in August 1933 for cent on September 1, but on the latter date was below $12.09 per hundred. Fairmont led in August sales 78 per cent a year earlier. Apple prospects improved with 9,893,766 pounds, Lumberton ranking second with in August, but the commercial crop is forecast at only 7,254,309 pounds, but Ahoskie paid the highest aver 554.000 bushels this year, compared with 657,000 bush age price for the month, $27.51 per hundred pounds. els in 1933 and 1,355,000 bushels the five-year average. Virginia farm work made satisfactory progress dur The tobacco crop in North Carolina improved in con dition during August, and the forecast of production ing August and considerable land has been prepared was raised from 393,650,000 pounds on August 1 to for seeding fall grains. Corn improved in all parts of 400.900.000 pounds on September 1. The crop in 1933 the State, but in some sections rains came too late to yielded 537,979,000 pounds, and the five-year average help early corn which had been damaged by the hot, dry weather during July and the first part of August. Com production is 506,763,000 pounds. Growing tobacco improved in Virginia, Maryland and production is forecast at 36,125,000 bushels, an increase West Virginia last month, and forecasts of prospective of about 3 per cent over the August forecast and prac yield were raised. On the basis of the September 1 tically the same as last year’s crop of 36,918,000 bush condition, Virginia farmers expect to cure 83,700,000 els. Late hay improved during August and the yield pounds this year, compared with 97,046,000 pounds in will be larger than was expected earlier in the season. 1933 and a five-year average of 114,122,000 pounds. Heavy rains caused a good growth of grass on wheat Maryland growers will probably harvest 24,480,000 fields and pastures so that farmers will be able to save pounds, compared with 20,400,000 pounds last year and considerable quantities of hay from such land. Pro a five-year average of 23,638,000 pounds. West Vir duction of hay is forecast at 899,000 tons, which is an ginia's crop is forecast to be 3,400,000 pounds in 1934, increase of about 5 per cent above the August fore compared with 4,322,000 pounds last year and a five- cast but 10 per cent less than last year’s crop of 992,000 year average of 4,248,000 pounds. The Fifth district tons. Many farmers, especially in the Eastern coun total production of tobacco in 1934 is forecast to be ties, will have surplus hay for sale. Pastures improved 566.500.000 pounds, compared with 748,327,000 pounds so much in August that on September 1 the condition 6 MONTHLY REVIEW averaged 90 per cent, compared with 67 per cent a bushels exceeds last year’s yield of 3,206,000 bushels. month earlier. Excellent Fall grazing is now assured The 1934 hay crop of 664,000 tons is larger than the for. all sections of the State. Fruit crops benefitted 1933 yield of 563,000 tons, but demand for hay will from August rains, apples increasing rapidly in size. be very large during the Winter and additional hay will Total production of apples is estimated to be 7,950,000 probably have to be imported into the State. Prospects bushels, compared with 10,900,000 bushels last year for peanuts on September 1 indicate a yield of 262,and a five-year average of 12,914,000 bushels. The 900.000 pounds, compared with 231,181,000 pounds dug increase in the size of apples increased the forecast for from the 1933 crop. The prospective sweet potato crop the commercial crop last month, the estimate based on of 8,300,000 bushels is much above the 1933 yield of September 1 being 1,930,000 barrels, compared with 6.794.000 bushels, and the 1934 Irish potato yield of 1.750.000 barrels last year and 2,680,000 barrels the 10.324.000 bushels also far exceeds last year’s crop of five-year average production. The quality of the crop 7.573.000 bushels. The 1934 apple crop of 3,000,000 is unusually good, so a larger percentage than in re bushels is smaller than last year’s crop of 3,386,000 cent years will be packed. The peach crop turned out bushels, but the peach crop of 2,312,000 bushels was slightly better than had been expected due to excellent better than last year’s pick of 1,857,000 bushels. size and quality. The crop was quite small because of South Carolina crops on a per acre basis are the best winter killing and frost damage, so that the total pro in the United States, although total production will be duction was only 378,000 bushels, compared with 990,- somewhat less than in 1933 due to acreage reduction in 000 bushels gathered last year and the five-year aver cotton and tobacco. On September 1, the estimate of age of 858,000 bushels. Peanut production this year com production of 22,212,000 bushels compared with is forecast at 138,700,000 pounds, which is slightly 21.324.000 bushels forecast on August 1, and last year’s larger than last year’s yield and about the same as the production of 22,808,000 bushels. This year’s crop of five-year average production. Frequent rains caused a oats totals 6,596,000 bushels, compared with 7,215,000 heavy growth of vines, but in a wet season the yield is bushels last year and a five-year average of 8,117,000 usually smaller than expected. Prospects for late po bushels. South Carolina’s hay yield of 206,000 tons is tatoes improved slightly in most sections of the State above last year’s yield of 195,000 tons, and also above and the yield is now expected to be about average. Total the five-year average production of 183,000 tons. Pas production of Irish potatoes, including the early crop, tures were better on September 1 than last year, and is estimated to be 13,803,000 bushels, compared with also above the five-year average. A peanut crop of 10,the small yield last year of 8,649,000 bushels and the 880.000 pounds is forecast this year, compared with five-year average production of 15,989,000 bushels. 9.520.000 pounds in 1933 and a five-year average of August rains caused a heavy growth of sweet potato 8.055.000 pounds. The 1934 Irish potato crop of 2,vines but the yield is not expected to be any larger than 625.000 bushels is above last year’s crop of 1,744,000 was forecast a month ago. Total production is esti bushels, but is less than the five-year average produc mated at 4,080,000 bushels, slightly more than last tion of 2,944,000 bushels. On the other hand, the sweet year’s crop of 3,885,000 bushels but below the five-year potato crop of 4,617,000 bushels this year is less than last year’s yield of 4,648,000 bushels, but is above the average yield of 4,602,000 bushels. West Virginia experienced a drought during the average yield of 4,247,000 bushels for the five-year Spring and Summer months, but heavy rains fell during base period. South Carolina made a good crop of August and brought improvement to growing crops. peaches this year, totaling 1,610,000 bushels, compared Corn improved 6 per cent during the month, but the with the five-year average yield of 1,172,000 bushels. prospective yield of 11,772,000 bushels compares un favorably with last year’s crop of 13,920,000 bushels. Construction Oats production was unsatisfactory in West Virginia Building permits issued in August in thirty leading this year, and the yield of 1,960,000 bushels is lower than either 2,356,000 bushels last year or the five-year cities of the Fifth reserve district numbered 2,095, com average production of 3,352,000 bushels. The hay crop pared wth 1,782 permits issued in August 1933, an in is very short, estimated production of 368,000 tons com crease of 17.6 per cent this year, and estimated valu paring with 690,000 tons cured last year and a five-year ation figures for last month totaled $3,255,807, an in average crops of 683,000 tons. Reports indicate a crease of 94.4 per cent in comparison with valuation shortage of hay supplies on farms in many counties this figures totaling $1,675,062 in August last year. Twentyyear. The Irish potato crop in West Virginia is esti one of the thirty reporting cities showed higher valu mated to be 2,660,000 bushels for 1934, compared with ation figures for the 1934 month. Among the five 2.331.000 bushels dug in 1933 and a five-year average largest cities, Baltimore, Washington, Richmond and of 3,522,000 bushels. Apple production is estimated at Norfolk increased, while Charlotte decreased. Colum 3.220.000 bushels, of which 1,764,000 bushels make up bia, S. C., made the best record in estimated valuation the commercial crop. Last year the commercial crop figures in August 1934, population of reporting cities totaled 2,100,000 bushels, and the five-year average pro being taken into consideration. duction is 3,918,000 bushels. Contracts awarded in August for construction work North Carolina crop yields this year are nearly all in the Fifth district, including both rural and urban above 1933 yields. Corn prospects indicate a yield of projects, totaled $12,110,714, compared with $6,156,49.280.000 bushels, compared with 40,713,000 bushels 503 awarded in August 1933, according to figures col gathered last year. This year’s oats crop of 3,440,000 lected by the F. W. Dodge Corporation. Of the awards MONTHLY REVIEW Building Permits Issued in August 1934 and 1933 CITIES Baltimore, Md.......... Cumberland, Md....... Frederick, Md......— Hagerstown, Md..... . Salisbury, Md............ Danville, Va. ... Lynchburg, Va.........Norfolk, Va........ ..... Petersburg, Va........ Portsmouth, Va........ Richmond, V a .------Roanoke, Va............. Bluefield, W. Va___ Charleston, W. Va..... Clarksburg, W. Va.... Huntington, W. Va.~ Asheville, N. C.-----Charlotte, N. C.-----Durham, N. C_____ Greensboro, N. C__ High Point, N. C.....« Raleigh, N. C______ Rocky Mount, N. C.~ Salisbury, N. C.-----Winston-Salem, N. C. Charleston, S. C.---Columbia, S. C.-----Greenville, S. C___ Rock Hill, S. C. .. Spartanburg, S. C.__ Washington, D. C..... Permits Issued 1934 1933 788 13 12 14 9 15 31 84 6 — 102 3C 8 77 37 12 34 23 25 51 19 15 3 2 58 37 33 31 12 42 472 District T otals---- 2,095 * Not included in totals. Total Valuation 1933 1934 596 $ 628,560 $ 555,720 96,425 10,620 10 9,535 8,680 14 7,765 6,457 14 11,925 5,740 7 22,085 26,347 9 26,110 25,785 28 74,671 129,007 94 10,765 2,043 4 23,902^ 24^ 110,259 88,887 109 41,827 8,668 27 4,494 1,065 6 29,830 55,710 80 19,675 28,097 19 5,245 11,580 17 13,688 16,650 22 34,629 20,620 29 51,083 101,375 26 42,008 12,266 32 10,797 19,560 13 11,250 23,685 12 1,650 21,169 13 3,022 600 7 24,185 32,395 53 63,033 14,281 34 21,129 430,615 27 11,825 41,300 28 10,090 12 9,175 3,760 9,207 17 439,935 1,372,310 423 1,782 $3,255,807 $1,675,062 in August this year, $1,806,354, or 14.9 per cent, was for residential work, while last year residential contracts totaled $1,930,773, or 31.4 per cent of all awards in August. 7 Retail Trade, 31 Department Stares_____________ Richmond Baltimore Washington Other Cities District August 1934 sales, compared with sales in August 1933: +12.4 + 4.4 +14.5 +13.7 +10.3 Total sales Jan.-Aug. 1934 compared with Jan.-Aug. 1933: +20.8 +15.5 +18.6 +26.1 +18.3 Aug. 31, 1934, stocks, compared with stocks on Aug. 31, 1933: +21.3 — 3.9 —14.5 + 2.0 — 5.7 Aug. 31, 1934, stocks, compared with stocks on July 31, 1934: + 7.2 + 6.2 + 4.3 + 4.9 + 5.4 Number of times stock was turned in August 1934: .3 266 .31 282 288 Number of times stock was turned since January 1, 1934: 2.498 2207 2.457 2.182 2.333 Percentage of Aug. 1, 1934, receivables collected in August: 26.7 25.5 25.5 25.4 25.6 Note: Sales and stock changes are percentages. Wholesale Trade, 57 Firms_____________________ 20 7 Groceries Dry Goods 6 Shoes 13 Hardware 11 Drugs August 1934 sales, compared with sales in August 1933: +12.9 +62.0 + 1.4 + 2.6 +16.1 August 1934 sales, compared with sales in July 1934: +14.5 +65.9 +93.5 +27.4 + 7.9 Jan.-Aug. 1934 sales, compared with sales in Jan.-Aug. 1933: +20.9 +31.3 +13.1 +32.6 +21.0 Aug. 31, 1934 stocks, compared with Aug. 31, 1933 stocks: _ 4.3(8*) + 2.9(3*) + 2.4(4*) +12.6(7*) ----Aug. 31, 1934 stocks, compared with July 31, 1934 stocks: + 2.6(8*) — 8.0(3*) —14.9(4*) — .8(7*) Percentage of Aug. 1, 1934, receivables collected in Aug.: 78.6(11*) 35.5(4*) 49.2(5*); 34.9(11*) 58.3(7*) ♦Number of reporting firms. All figures in the table are percentages. (Compiled September 21, 1934) MONTHLY REVIEW 8 BUSINESS CONDITIONS IN THE UNITED STATES (Compiled by the Federal Reserve Board) Total output of industry, which usually increases at | creases at this season, showed little change in August. this season, showed little change in August. Factory Shipments of miscellaneous freight showed no seasonal employment and payrolls increased between the middle expansion, while shipments of livestock increased con of July and the middle of August by about the usual siderably. Department store sales increased by an seasonal amount. Distribution of commodities at de amount substantially larger than is usual in August partment stores showed a more than seasonal growth. and were 2 per cent higher than a year ago. Production and Employment Output of basic industrial products, as measured by the Board’s index, which makes allowance for usual seasonal changes, declined from 75 per cent of the 1923-1925 average in July to 73 per cent in August. At steel mills production continued to decline during August and the early part of September, contrary to seasonal tendency; in the middle of September a slight increase in activity was reported. Output of auto mobiles, which had been maintained at a relatively high rate during the spring and early summer, declined in August. Lumber production showed an increase. In the cotton textile industry production was in larger volume in August than in July, but was retarded by the strike in the first three weeks of September. At meatpacking establishments output in August was larger than in any other recent month, accompanying heavy marketings of cattle from drought areas. Factory employment showed a seasonal increase be tween the middle of July and the middle of August, reflecting considerable growth in employment in the wearing apparel, canning, and meatpacking industries, while employment in the iron and steel industries and at railroad repair shops declined. The value of construction contracts awarded, as re ported by the F. W. Dodge Corporation, was about the same in August as in each of the four preceding months. Department of Agriculture estimates as of Septem ber 1 indicate a corn crop 40 per cent smaller than the average for the five years 1927-1931 and other feed crops also are expected to be unusually small. The condition of pastures on September 1 was poorer than in any other recent year but some improvement has been reported in the early part of September. The spring wheat crop, estimated at 93,000,000 bushels, is about one-third of the five-year average and the winter wheat crop is also small. The cotton crop is esti mated at 9,300,000 bales, a sharp reduction from other recent years. Distribution Volume of freight car loadings, which usually in- Commodity Prices Wholesale prices of commodities increased in August and the first week of September, reflecting sharp ad vances in the prices of farm products and foods. Hog prices advanced rapidly during the month of August and in the latter part of the month cattle prices also i showed a marked increase. Since the beginning of | September, prices for both hogs and cattle have de! clined somewhat, and in the middle of the month there have also been decreases in the prices of wheat and j cotton. In August, as in other recent months, there j was little change in prices of commodities other than j farm products and foods. I ! Bank Credit , ! A seasonal increase in demand for currency by the | public and an increase in Government deposits at the I Reserve banks were reflected in a decline in member* • bank reserve balances between the middle of August ; and the middle of September. On September 19 re! serve balances were about $1,700,000,000 in excess of legal requirements. There was little change in the ! volume of reserve bank credit during August and Sepi tember. Total loans and investments of reporting member ; banks showed little change between August 15 and September 19; loans, other than security loans, in creased by $170,000,000 and holdings of securities by $50,000,000, while security loans declined by $200,000,000. The increase in loans other than on securities • occurred largely at banks in New York City and in the Western districts and reflected chiefly a growth in direct loans to customers for ordinary commercial pur poses and for financing the harvesting of crops. The banks’ holdings of acceptances and commercial paper, i which also reflect current business financing, increased ; during the period. Short-term money rates continued at low levels. Yields on both United States Government and cor porate bonds increased during August and the first half of September.