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MONTHLY REVIEW
CREDIT, BUSINESS AND AGRICULTURAL CONDITIONS

WILLIAM W. HOXTON, Chairman

and

F ederal Reserve Agent

FEDERAL RESERVE BANK OF RICHMOND

RICHMOND, VIRGINIA

SEPTEMBER 30, 1935

bacco in August for prices which were
OST of the business indicators in
FIFTH FEDERAL RESERVE DISTRICT considered on the whole moderately
the Fifth Federal Reserve dis­
satisfactory. Tobacco manufacturers
A
trict show that trade in August and
continued to operate at high levels, al­
early September was fully up to sea­
though output fell below the record
sonal level, and agricultural conditions
figures of July and in all types of
are quite favorable for comparatively
manufacture except cigarettes also fell
large cash returns to farmers in the
below August 1934 figures. Construc­
Fall. In banking, total earning assets
tion continues to improve in the Fifth
at the Federal Reserve Bank of Rich­
Reserve district, both the number of
mond rose slightly between the middle
permits issued and the estimated valu­
of August and the middle of Septem­
ation in August this year exceeding
ber, and the circulation of Federal
the August 1934 figures, and contracts
Reserve notes increased seasonally
actually awarded last month nearly
with the opening of tobacco markets
doubling the August 1934 contracts in
and the beginning of early Fall trade.
value. Retail trade in August aver­
Member bank reserve deposits also in­
aged 7 per cent above the volume of
creased last month. Regularly report­
ing member banks slightly increased their loans be­ trade in August last year, measured by sales in thirtytween August 14 and September 11 and materially one leading department stores in the Fifth district,
increased demand deposits, but time deposits declined and wholesale trade in groceries, hardware and drugs
slightly and investments in stocks and bonds were low­ : also exceeded the dollar volume of trade in the corered. Debits to individual accounts figures in banks ! responding month a year ago, but dry goods and shoe
in leading trade centers in the four weeks ended Sep­ sales were smaller in the 1935 month. Prospects in
tember 11 showed a decline of 2.9 per cent in com­ agriculture in the Fifth district states are better than
parison with debits in the preceding four weeks, but they were at this time last season, and while prices for
exceeded debits in the corresponding four weeks of the leading money crops, cotton and tobacco, are lower
1934 by 10.9 per cent. Commercial failures in the at the present time than last year, increased yields in­
Fifth district in August numbered only 39, compared dicate that farmers in the district will probably have
with 51 in August last year, but liabilities last month at least as large incomes this year as they had in 1934.
totaling $1,431,207 compared unfavorably with liabili­ Supplies of food and feed crops are abundant this
ties amounting to $440,675 in August 1934 insolven­ year.
cies. Employment did not change materially in August
and early September, but the changes that did occur Reserve Bank Statement
reflected some improvement. Coal production in Au­
Principal items on the statement of the Federal Re­
gust showed a seasonal increase over July production,
but was 5.4 per cent less than production in August serve Bank of Richmond for three mid-month dates
last year. Textile mills in the Fifth Reserve district in­ are shown in the accompanying table, affording oppor­
creased their rate of operation last month, and consumed tunity for comparison of the latest available figures,
more cotton than in either July this year or August those for September 15, 1935, with the figures for
last year. South Carolina continued to lead all states corresponding dates a month and a year earlier. In
in the average number of hours of operation per spin­ the past month, rediscounts for member banks in­
dle in place. Tobacco markets in South Carolina and creased $244,000, while industrial loans declined
a part of North Carolina sold a large volume of to­ $22,000, a net increase of $222,000 in total earning




MONTHLY REVIEW

2

0 omitted
00

000 omitted

ITEMS

Sept 15
1935

Aug. 15
1935

Sept 15
1934

Rediscounts held ---------------- $ 350 $ 106 $ 720
173
193
Open market paper--------------173
80
4,585
Industrial advances --------- .—
4,563
Government securities ---------- 116,716 116,716 103,563
Total earning assets----------121,802 121,580 104,556
Circulation of Fed. Res. notes.. 165,072 154,095 157,768
Members* reserve deposits-----159,157 155,379 131,437
Cash reserves -------------------- 218,627 205,195 198,572
66.07
64.65
65.65
Reserve ratio --------------------

ITEMS

Sept. 11
1935

Aug. 14 Sept. 12
1934
1935

Loans on stocks and bonds (in­
cluding Governments) .......... $ 50,125 $ 49,760 $ 57,154
All other loans_____________
91,533 103,867
92,186
Total loans and discounts...... 142,311 141,293 161,021
Investments in securities_____ 198,583 204,799 186,051
Reserve bal. with F. R. Bank....
76,395
57,810
56,479
Cash in vaults_____________
12,701
10,876
12,009
Demand deposits __________
235,130 224,846 214,340
Time deposits _____________ 135,900 136,498 133,955
Borrowed from F. R. Bank.__
0
0
0

assets. The portfolio of open market paper and hold­
ings of Government securities remained unchanged figures which occurred during the periods under re­
during the month. Circulation of Federal Reserve view, but represent the condition of the banks on the
notes rose seasonally between August 15 and Septem­ report dates only.
ber 15, advancing $10,977,000, due in large part to
During the four weeks between August 14 and Sep­
opening of tobacco markets in North Carolina and to tember 11, the reporting banks increased their loans by
early Fall trade. Member bank reserve deposits rose $1,018,000. Loans on stocks and bonds rose $365,000
by $3,778,000 during the past month, carrying reserves last month, while all other loans rose by $653,000.
farther in excess of legal requirements. Aggregate The reporting banks decreased their investments in
cash reserves of the Federal Reserve Bank of Rich­ securities by $6,216,000 between August 14 and Sep­
mond increased by $13,432,000 between the middle of tember 11. Aggregate reserve balances of the twentyAugust and the middle of September, and the ratio eight banks at the Federal Reserve bank rose by $18,of cash reserves to note and deposit liabilities com­ 585,000 during the month, and cash in vaults increased
bined rose by 1.00 point.
by $1,825,000. Demand deposits rose by $10,284,000
A comparison of the condition figures for Septem­ since the middle of August, but there was a small
ber 15, 1935, with those reported for September 15, decline in time deposits amounting to $598,000. None
1934, shows marked changes in most items. Redis­ of the twenty-eight reporting banks were borrowing at
counts for member banks, which were very small a the Federal Reserve bank during the past month.
year ago, declined further by $370,000, and the port­
folio of open market paper also dropped $20,000. On
On September 12, 1934, all figures in the combined
the other hand, holdings of Government securities rose statement of the reporting institutions were smaller
by $13,153,000 during the year, and loans direct to than figures on September 11, 1935, except loan and
industry, which were just beginning to be made in rediscount figures. Total loans declined $18,710,000
September 1934, increased by $4,483,000. Total earn­ during the year, of which $7,029,000 was in loans on
ing assets increased by $17,246,000 between the mid­ securities and $11,681,000 was in all other loans. None
dle of September last year and this. The circulation of the reporting banks were borrowing at the Federal
of Federal Reserve notes rose by $7,304,000 during Reserve bank on either the 1934 or the 1935 dates.
the past year, and member bank reserve deposits in­ On the other hand, the banks built up their reserve
creased by $27,720,000. The increase in note circu­ balances at the Federal Reserve bank by $19,916,000
lation was due in part to needs for marketing a larger during the past year, and also increased their invest­
tobacco crop this year, and the rise in reserve deposits ments in securities, chiefly Governments, by $12,532,reflects surplus funds in possession of the member 000.
Cash in vaults rose by $692,000. Aggregate
banks. The several changes in the statement previous­ deposits increased $23,333,000 between the middle of
ly mentioned, with others of less importance, increased i September last year and this, demand deposits gaining
the cash reserves of the Federal Reserve Bank of | $20,790,000 and time deposits $2,543,000.
Richmond by $20,055,000 during the year, but the i
ratio of reserves to note and deposit liabilities com­ | Time and Savings Deposits
bined declined by 42/100ths of a point.
Time deposits in twenty-eight reporting member
Statement of 28 Member Banks
banks and aggregate deposits in eleven mutual savings
The accompanying table shows the principal items banks in Baltimore totaled $337,817,077 at the end of
of condition on the weekly statement of twenty-eight August 1935, a lower figure than $338,243,382 re­
regularly reporting member banks in ten leading cities ported at the end of July this year but an increase
of the Fifth Federal Reserve district as of three dates, | over $327,095,161 at the end of August 1934. Mutual
September 11 and August 14 this year, and September i savings bank deposits increased last month while time
12 last year, thus affording opportunity for comparison
of the latest available figures with those a month and | deposits in the reporting member banks decreased, but
a year earlier. It should be understood that the fig­ j both groups of banks showed increases in time and
ures shown are not necessarily the highest or lowest i savings deposits for the year.




MONTHLY REVIEW

Debits to Individual Accounts
000 omitted

CITIES
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---------Spartanburg, S. C.—
Washington, D. C.....
Wilmington, N. C. ...
Winston-Salem, N. C.

Total debits, four weeks ended
Sept. 12,
Aug. 14,
Sept. 11,
1934
1935
1935
$ 8,782
234,990
10,415
34,921
39,879
18,124
6,418
5,722
29,605
11,484
12,289
6,014
10,559
11,255
6,614
36,515
2,818
18,816
129,281
17,236
5,612*
166,841
8,408
26,956

$ 8,418
259,106
9,809
40,136
41,315
19,522
7,081
5,407
21,984
10,622
11,357
6,058
10,134
11,477
6,303
39,464
2,942
25,676
112,140
15,386

................

$ 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
... .... .___ _

179,525
7,217
28,176

138,857
6,840
22,900

$853,942
$879,255
Fifth District Totals
♦Spartanburg not included in Totals.

$769,682

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 11, 1935, are included, and for com­
parison the corresponding figures for the preceding
four weeks this year, ended August 14, 1935, and the
same four weeks last year, ended September 12, 1934,
are also listed.
Aggregate debits in the reporting cities declined
$25,313,000, or 2.9 per cent, in the latest four weeks,
compared with figures for the preceding like period,
only eleven of the twenty-three cities showing higher
figures. The cities reporting increased debits last
month were Asheville, Durham, Greensboro and Wil­
mington, N. C., Charleston and Greenville, S. C., Dan­
ville, Newport News, Richmond and Roanoke, Va.,
and Huntington, W. Va. Spartanburg, S. C., is in­
cluded in the table for the latest four weeks, but fig­
ures for the earlier periods are not available.
In comparison with debits to individual accounts fig­
ures for the four weeks ended September 12, 1934,
the figures reported for the corresponding period this
year show an increase of $84,260,000, or 10.9 per cent.
Twenty of the twenty-three cities reported higher fig­
ures for the 1935 period, the three cities which failed
to gain being Charleston, W. Va., Durham, N. C.,
and Norfolk, Va.

Commercial Failures
Dun & Bradstreet Monthly Review for September
says: ‘The trend of business failures in the United




3

States continues to show a declining tendency. The
number of defaults reported for August was the low­
est for any month this year. Losses involved, measured
by the amount of liabilities, also were reduced, com­
pared with July, and were below those for all other
months this year except May. The number of failures
for August was 901, compared with 931 in July and
929 in August 1934. Liabilities for August totaled
$17,845,596, compared with $20,446,761 for the pre­
ceding month and $18,459,903 in August of last year.”
The August record in the Fifth district was less fav­
orable than the National record, although fewer in­
solvencies were reported than in August last year.
Failures in the district last month totaled 39, com­
pared with 30 in July and with 51 in August last year.
Aggregate liabilities last month amounted to $1,431,207, compared with $601,923 in July 1935 and only
$440,675 in August 1934. Fewer failures were re­
ported for August this year than for August last year
in only four of the twelve Federal Reserve districts,
while lower liabilities were reported this year in six
districts.

Employment
Employment increased slightly in several industries
in August and early September in the Fifth Federal
Reserve district, and held previous levels in others.
Opening of additional tobacco markets in North Caro­
lina gave employment to some scores of handlers and
other warehouse helpers. Coal production in August
exceeded July production, giving longer hours of work
to miners. Textile mills operated at a higher rate in
August than in July, adding to payrolls in that in­
dustry. Tobacco factories continued operations at
about the same rate in August, although output did
not quite equal the record month of July. Work in
construction fields was more easily obtained in August
this year than in August last year, both building per­
mits issued and contracts actually awarded in the 1935
month exceeding 1934 figures. Fall harvesting opera­
tions are giving more work to agricultural workers
than they were able to obtain during the growing
season.

Coal Production
Bituminous coal production in the United States in
August 1935 totaled 25,980,000 net tons, an average
of 962,000 tons per working day, a seasonal increase
over 22,252,000 tons mined in July this year but 5.4
per cent below 27,452,000 tons dug in August 1934.
Total production of bituminous coal this calendar year
through August totaled 237,126,000 net tons, compared
with 234,629,000 tons mined to the same date last year.
The August 24 report of the Bureau of Mines, De­
partment of the Interior, gave coal production by states
for July. West Virginia led all states with 6,706,000
tons, Pennsylvania ranking second with 5,928,000 tons.
Total production in the Fifth district in July was 7,442,000 tons, or 33.4 per cent of National production,
compared with 8,436,000 tons, or 33.9 per cent of

4

MONTHLY REVIEW

National production, mined in the Fifth district in
July last year. Shipments of coal through Hampton
Roads this calendar year through August totaled 12,088,705 tons, compared with 12,092,948 tons shipped
through the same period in 1934.

Textiles
Fifth district textile mills increased operations about
8 per cent in August over July, and also ran at a
slightly higher rate than in August last year. In Au­
gust 1935, Fifth district textile mills consumed 197,293
bales of cotton, an increase of 7.9 per cent over 182,821
bales used in July this year, and 4.7 per cent more
than 188,398 bales consumed in the district in August
1934. Last month North Carolina mills consumed
100,669 bales, South Carolina mills used 84,997 bales,
and Virginia mills 11,627 bales, all the figures being
higher than the ones reported for August last year.
Fifth district consumption figures in August 1935
were 48.3 per cent of National consumption, compared
with 45 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, 1935, there were 30,110,078 spindles in place
in the United States, North Carolina leading with 6,130,376, or 20.4 per cent of the total. South Carolina
ranking second with 5,839,968 spindies, or 19.4 per
cent, and Massachusetts third with 5,375,988 spindles,
or 17.9 per cent. The Fifth district as a whole had
42 per cent of total spindles in place in the United
States at the end of July 1935. In actual spindle hours
of operation, South Carolina led all states for July
with 1,342,412,365 hours, or 26 per cent of the Na­
tional total of 5,157,527,985 hours, and North Carolina
ranked second with 1,144,372,027 hours, or 22 per
cent, while Massachusetts had only 586,196,351 hours,
or 11 per cent. The Fifth district, with 42 per cent
of total spindles in place in the United States in July,
showed 51 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 209 hours ranked fourth,
and North Carolina with 187 hours ranked sixth. The
average hours of operation for the United States was
171 per spindle in place.

Cotton Statistics
Spot cotton prices declined about $5.50 per bale be­
tween the middle of August and the middle of Sep­
tember, chiefly due to the AAA announcement of a
plan to lend 9 cents per pound to growers on this
year’s crop instead of repeating last year’s advance of
12 cents. The decline was checked in the second week
of September by the Department of Agriculture’s re­
duction in prospective yield figures from those released
a month earlier. The average price for middling grade
cotton on ten Southern markets was 11.60 cents per
pound on August 16th, 10.85 cents on August 23rd,




10.53 cents on August 30th, 10.48 cents on September
6th, and 10.49 cents on September 13th, the latest date
for which quotations are available. The average price
on September 14, 1934, was 12.86 cents per pound.
The Department of Agriculture’s second condition
report of the season, issued on September 9 as of Sep­
tember 1, estimated 1935 production of cotton as 11,489.000 bales of 500 pounds gross weight, a decrease
of 309,000 bales under the estimate of production
made on August 1 but 1,853,000 bales above the 1934
short crop of 9,636,000 bales. During August pros­
pects for cotton improved in some states, including
North Carolina and Virginia in the Fifth district, but
prospects declined in such important states as South
Carolina, Alabama, Louisiana, Oklahoma and Texas,
the last named State showing a loss of 384,000 bales
during the month. In the Fifth district cotton grow­
ing states, South Carolina registered a decrease of
20.000 bales in prospective yield during August, due
chiefly to excessive rains and winds over the entire
State and to weevil activity in Piedmont counties.
North Carolina prospects rose by 2,000 bales last
month, and the Virginia estimate also rose 2,000 bales.
In North Carolina weevil damage has been quite ex­
tensive and the top crop is almost entirely missing.
Favorable growing weather in July and early August
developed bolls rapidly and aided materially in over­
coming weevil damage. The early, or bottom, crop is
unusually good throughout the State. In comparison
with the 1934 yield, the three Fifth district states show
a combined increase in prospective yield of 40,000 bales
this year. The South Carolina crop for 1935 is now
estimated to be 739,000 bales, compared with 681,000
bales picked last year; the North Carolina yield this
year of 613,000 bales compares with the 1934 crop of
629.000 bales; and Virginia’s prospective yield of
33.000 bales compares with last year’s yield of 35,000
bales. The Census Bureau reports that 1,132,739
bales of this year’s crop were ginned prior to Sep­
tember 1, a slightly lower figure than 1,402,835 bales
ginned before September last year.
Cotton consumption in the United States in August
1935 rose above the July figure, but was below the
figure for August 1934. Cotton used in American
mills last month totaled 408,410 bales, compared with
391,771 bales used in July this year and 418,941 bales
in August 1934. Manufacturing establishments held
644,926 bales on August 31, compared with 789,373
bales held on July 31 and 1,076,982 bales on August
31, 1934. Public warehouses and compresses held 5,892,836 bales in storage at the end of August this
year, compared with 5,739,197 bales so held a month
earlier and 5,823,939 bales on August 31 last year.
August exports totaled 241,484 bales, compared with
276,622 bales sent abroad in July 1935 and 252,531
bales exported in August 1934. Spindles active at
some time during August numbered 22,046,652, com­
pared with 22,312,384 in July this year and 24,181,776
in August 1934.
Cotton growing states consumed 342,935 bales in
August, compared with 322,909 bales used in July and
333,977 bales in August 1934. Last month’s consump­

MONTHLY REVIEW
tion in the cotton growing states amounted to 83.97
per cent of National consumption, a higher figure than
either 82.42 per cent in July this year or 79.72 per cent
in August last year. Of the 342,935 bales of cotton
consumed in the cotton growing states in August,
Fifth district mills used 197,293 bales, or 57.53 per
cent, a higher figure than 56.04 per cent attained by
Fifth district mills in August 1934.

Tobacco Marketing
South Carolina tobacco markets opened on August
8, with prices considered satisfactory, although slightly
below those of 1934. The South Carolina Commis­
sioner of Agriculture reports producers’ sales totaling
39,313,598 pounds of tobacco in August this year, at
an average of $21.14 per hundred pounds, compared
with sales totaling 29,879,104 pounds at $22.91 per
hundred in August 1934. Although last month’s
prices were less than prices in August 1934, tobacco
sold last month brought $1,465,000 more. The market
at Mullins led in sales in August with 14,128,446
pounds, Lake City ranked second with 8,536,164
pounds, and Timmonsville third with 4,244,310
pounds. On a basis of the September 1 condition, the
South Carolina tobacco crop this year is estimated to
be 82,650,000 pounds, an increase over the August 1
forecast of 78,375,000 pounds and about 45 per cent
above the 1934 crop of 56,880,000 pounds, the increase
in comparison with last year being due both to in­
creased acreage and higher condition figures. This
year’s production is above the five-year average yield
of 75,823,000 pounds.
North Carolina border markets in the South Caro­
lina belt opened on August 8 and on August 26 mar­
kets in the New Bright belt opened. North Carolina
markets sold 52,106,822 pounds of tobacco for grow­
ers during the month, at an average price of $21.26
per hundred pounds, compared with 56,062,948 pounds
sold by the same markets in August 1934 for $25.79
per hundred. Fairmont led in August sales with 11,556,944 pounds, Whiteville ranking second with 8,493,961 pounds, and Fairmont paid the highest average
price for the month, $23.42 per hundred pounds. The
tobacco crop in North Carolina improved in condition
during August, and the forecast of production was
raised from 511,810,000 pounds on August 1 to 528,614,000 pounds on September 1. The crop in 1934
yielded 417,975,000 pounds, and the five-year average
production is 468,526,000 pounds.
Growing tobacco improved in Virginia and Mary­
land last month, but lost ground in West Virginia.
On the basis of the September 1 condition, Virginia
farmers expect to cure 92,590,000 pounds this year,
compared with 80,155,000 pounds in 1934 and a fiveyear average of 98,916,000 pounds. Maryland growers
will probably harvest 23,562,000 pounds, compared
with 23,418,000 pounds last year and a five-year aver­
age of 24,018,000 pounds. West Virginians crop is
forecast to be 2,320,000 pounds in 1935, compared
with 1,755,000 pounds last year and a five-year aver­
age of 4,193,000 pounds. The Fifth district total




5

production of tobacco in 1935 is forecast to be 729,736,000 pounds, compared with 580,183,000 pounds
harvested last year and a five-year average production
of 671,476,000 pounds.

Tobacco Manufacturing
The Commissioner of Internal Revenue issued a re­
port on taxes collected in August 1935 on manufac­
tured tobacco products. The report showed a reduction
from the record figures of July, but output continued
large. August production of cigarettes in the United
States numbered 11,974,831,167, compared with 11,809,522,453 cigarettes manufactured in August 1934.
On the other hand, smoking and chewing tobacco de­
creased from 27,905,054 pounds in August last year
to 27,311,032 pounds in August this year. Cigars
manufactured declined from 425,452,701 in August
1934 to 422,281,685 in August 1935. Snuff production
decreased from 3,042,763 pounds to 2,901,313 pounds
during the year. In August 1935, taxes on cigarettes
totaled $35,926,561, compared with $35,429,697 col­
lected in the corresponding month last year. Taxes
on smoking and chewing tobacco fell during the same
period from $5,020,893 to $4,916,174. Total receipts
by the Federal Treasury on tobacco products rose
from $42,061,705 in August last year to $42,401,143
in August this year, the increase in receipts from cig­
arettes more than offsetting the drop in receipts from
smoking and chewing tobacco, cigars and snuff.

Agricultural Notes
Combined crop prospects improved in August in
Maryland, Virginia and North Carolina, but declined
in West Virginia and South Carolina. The improve­
ment was greatest in Virginia, and the decline most
marked in South Carolina, but South Carolina with
123.5 ranked second in prospective per acre yields on
September 1 expressed as a percentage of the ten-year
average yield. Virginia’s percentage on September 1
was 114.3, North Carolina’s 111.9, West Virginia's
110.6, and Maryland’s 108.3. The average for the
United States was 100.8.
Maryland corn decreased 2 per cent in prospective
yield in August, apples also decreased slightly, and
tobacco increased 4 per cent, according to the Mary­
land Crop Reporting Service, but these figures reflect
conditions on September 1 and do not take into con­
sideration severe damage done by the storm of the
first week in September. Corn, late hays and truck
crops on the Eastern Shore were severely injured,
while in Southern Maryland tobacco growers suffered
heavy losses, but the amount of damage has not yet
been determined. August weather was too dry for
corn over most sections of the State. The estimated
production of 17,956,000 bushels compares with last
year’s crop of 16,995,000 bushels and the five-year
average of 15,039,000 bushels. Early August rains
improved tobacco prospects, and over half the crop
was housed by September 1. Prospects indicate pro­
duction of 23,563,000 pounds as compared with the
1934 yield of 23,418,000 pounds and the five-year aver­

6

MONTHLY REVIEW

age of 24,018,000 pounds. Hay production of 555,000
tons this year compares with 578,000 tons in 1934 and
an average production of 458,000 tons. Pasture con­
ditions declined in August as a result of dry weather
but on September 1 were still above average for that
date. The white potato crop is estimated at 3,564,000
bushels compared with last year's production of 3,267.000 bushels and the five-year average of 3,339,000
bushels. Extensive damage from potato blight is re­
ported in Western counties. Sweet potato production
of 775,000 bushels compares with 750,000 bushels last
year and the five-year average of 1,374,000 bushels.
All reports indicate extensive damage to sweet potatoes
from the storm. The September 1 apple crop was
estimated at 2,124,000 bushels. Last year's crop was
1.102.000 bushels while the average is 2,053,000 bush­
els. The commercial apple crop of 1,180,000 bushels
is about 8 per cent below average.
West Virginia crops decreased nearly 2 per cent in
average condition during August, although com, to­
bacco and peaches improved. The oat, potato and apple
crops showed declines, while prospects for hay re­
mained unchanged. Corn is expected to yield 12,682.000 bushels this year, compared with 12,128,000
bushels last year and an average of 11,056,000 bushels.
Oats threshed out lighter than was expected, but the
1935 yield of 2,484,000 bushels was higher than 2,052.000 bushels in 1934, although much below the fiveyear average yield of 3,239,000 bushels. West Vir­
ginia's 1935 hay yield of 745,000 tons is far above
either the 1934 crop of 502,000 tons or the average
production of 615,000 tons. Pastures on September 1
were far better than average. White potato prospects
indicate a yield of 3,220,000 bushels this year, against
3.120.000 bushels last year and a five-year average of
3.484.000 bushels. Apple prospects declined in August,
and on September 1 a crop of 5,940,000 bushels was
forecast, of which 3,240,000 bushels was the commer­
cial crop. Both figures are materially higher than those
for 1934, but are below the five-year average. A peach
yield of 260,000 bushels was more than double last
year's crop of 110,000 bushels, but was only a little
over half the average yield of 492,000 bushels.
Virginia crops generally made favorable progress
during August. Prospects for corn, tobacco, cotton,
hay and apples improved, while prospects for potatoes,
sweet potatoes and peaches remained unchanged. The
indicated production of all crops, except potatoes and
cotton, is greater than last yeaf. The rain and wind
storm of September 5th and 6th caused considerable
damage to crops in the Eastern part of the State, but
the loss was mostly confined to crops on the low
grounds. The corn crop suffered the heaviest loss, as
most of the com in the river valleys was seriously
damaged or will be a total loss. The greatest damage
was in the James and Staunton River valleys. The
total loss to the corn crop, however, will be only about
5 per cent of the State production. Most of the to­
bacco had been harvested prior to the storm, so there
was little damage, the total being estimated at less
than 5 per cent. Pastures and late hay crops were
greatly benefited by the rains. Corn production, based




on the September 1 condition of 88 per cent, was es­
timated to be 37,250,000 bushels compared with the
1934 crop of 35,794,000 bushels and the average pro­
duction for five years of 31,346,000 bushels. The oat
crop turned out slightly better than had been expected
and the indicated production is 2,728,000 bushels, com­
pared with 2,398,000 bushels last year. The September
1 condition of peanuts indicates a production of 159,600.000 pounds, compared with 146,000,000 pounds
last year and the five-year average of 146,681,000
pounds. Weather conditions during August were gen­
erally favorable, although in a few sections there was
too much rain for the best growth. Late hay crops
improved during August and heavy crops of soybeans,
cowpeas and lespedeza are expected. There was some
loss of hay cut just prior to the heavy rains in the
first week of September. The total production of hay
is now expected to be 1,126,000 tons, which is one of
the largest crops on record. Pastures continue excel­
lent throughout the State. Fruit prospects improved
during August, as there was ample moisture for proper
growth. The production of apples is reported to be
16.430.000 bushels, compared with 9,275,000 bushels
last year and 13,160,000 bushels the five-year average.
Commercial apples improved also, and are of very good
size except on trees that are overloaded or where the
trees lack vigor. The crop is coloring well and ma­
turing a little earlier than usual. The commercial crop
is estimated at 10,540,000 bushels this year, compared
with last year's crop of 6,562,000 bushels and a fiveyear average production of 8,228,000 bushels. The
condition of late potatoes on September 1 was very
good and indicated an average yield. Continued rains
during the first part of September, however, were un­
favorable for the crop. Total production of potatoes,
including the early commercial crop, is estimated at
11.528.000 bushels, compared with 13,433,000 bushels
last year. Sweet potatoes made favorable progress in
August, and total production is estimated at 4,860,000
bushels, compared with 3,910,000 bushels last year.
North Carolina crops as a whole showed a slight im­
provement last month. August was a dry month
through most of the Piedmont counties and in South­
ern portions of the coastal area, and most crops
experienced a setback in these sections. The upper
coastal and mountain counties had good rains and con­
ditions improved sufficiently to raise the average
prospects for the State. Com, the only crop planted
generally in all counties, declined 5 per cent in Au­
gust. Production of 45,904,000 bushels is about 4
per cent less than 47,580,000 bushels harvested last
year. On the other hand, small grain crops were bet­
ter than last year, and oats turned out 4,642,000 bush­
els against 3,519,000 bushels in 1934. A hay crop of
675.000 tons compares with 699,000 tons last year, and
pastures are also poorer this year. Peanuts on Sep­
tember 1 were lower in condition than a year ago, but
a larger acreage indicates a 1935 yield of 273,050,000
pounds against 264,000,000 pounds last year. Exces­
sive rainfall produced an excess of peanut vines at
the expense of nuts. White potatoes in North Carolina
this year totaled 8,774,000 bushels, compared with 10,-

"■*

......... - .... -

...

-

..

'

'

'

.........

—

"■

MONTHLY REVIEW

672.000 bushels in 1934, and the 1935 yield of 7,440,000 bushels of sweet potatoes is less than 8,856,000
bushels dug in 1934. An apple crop of 4,200,000
bushels is forecast, of which 823,000 is commercial
crop, compared with total production of 3,525,000
bushels last year, of which the commercial crop com­
prised 691,000 bushels.
South Carolina had ample rain in August and crop
prospects as a whole improved, although there was too
much rain for cotton and for hay curing. Com pro­
duction indicated at 25,425,000 bushels is 22 per cent
above 20,760,000 bushels gathered last year and 26
per cent above average production of 20,151,000 bush­
els. A hay crop of 221,000 tons is expected this year,
10 per cent above last year’s yield of 201,000 tons
and 23 per cent above the five-year average cut of
180.000 tons. Oats totaling 10,462,000 bushels ex­
ceeded both the 1934 yield of 6,596,000 bushels and
the average production of 8,080,000 bushels. The
1935 sweet potato crop of 4,488,000 bushels is larger
than the 1934 crop of 4,428,000 bushels, but is less
than average production of 4,569,000 bushels. Pea­
nuts promise a yield of 11,360,000 pounds this year,
an increase of 18 per cent over last year’s crop of
9.600.000 pounds and 35 per cent above the five-year
average yield of 8,398,000 pounds.

Construction
Building Permits Issued in August
1935 and 1934
CITIES

!Permits Issued
j 1935
1934

Baltimore, Md...........
Cumberland, Md.........
Frederick, Md............
Hagerstown, Md. ....
Salisbury, Md.............
Danville, Va...............
Lynchburg, Va...........
Norfolk, Va. .............
Petersburg, Va...........
Portsmouth, Va......... 1
Richmond, Va............ 1
Roanoke, Va.............. 1
|
Bluefield, W. Va.
I
!
Charleston, W. Va....1
Clarksburg, W. Va....]
Huntington, W. Va..J
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.------j
Winston-Salem, N. C.j

809
10
12

16
10
22

28
132
1

27

120

39

10

147
74

21

24
82
47
54
43
19
9
8

65
57
49
32

Columbia, S. C--------•
Greenville, S. C.........i
11
Rock Hill, S. C.
25
Spartanburg, S. C.....
Washington, D. C..... \ 625
Totals ....................*2,628




Total Valuation
1935
1934

788 $1,015,200 $ 628,560
13
17,925
10,620
12
18,255
9,535
14 !
1
26,685
6,457
3,500
5,740
9 I|
15 !
23,175
26,347
27,840
31 !
25,785
84 j 202,640
129,007
1,400
10,765
6
28 1
23,750
12,445
102 i
258,598
110,259
30 i
52,219
8,668
18,005
4,494
8I
108,372
77
55,710
93,744
37 1
28,097
12 j
21,985
11,580
34 !
22,454
16,650
99,982
23 j
20,620
116,635
101,375
25
85,193
51 i
42,008
19 ; 122,318
19,560
53,571
23,685
15
11,600
3‘
1,650
2 :
27,535
600
71,826
58 :
32,395
37,824
37 :
63,033
33 ;
86,248
430,615
70,150
31 !
41,300
12
24,240
9,175
42 i
15,780
9,207
472 ' 1,811,680
1,372,310
2,123 ! $4,570,329 $3,268,252

(Compiled

7

.J Z ." ..'J = S S

Building permits issued in August in thirty-one lead­
ing cities of the Fifth reserve district numbered 2,628,
compared with 2,123 permits issued in August, 1934,
an increase of 23.8 per cent this year, and estimated
valuation figures for last month totaled $4,570,329,
an increase of 39.8 per cent in comparison with valu­
ation figures totaling $3,268,252 in August last year.
Twenty-six of the thirty-one cities showed higher valu­
ation figures for the 1935 month. All of the five
largest cities, Baltimore, Washington, Richmond, Nor­
folk and Charlotte, increased. High Point, N. C.,
and Clarksburg, W. Va., made the best records in es­
timated valuation figures in August 1935, population
of reporting cities being taken into consideration.
Contracts awarded in August for construction work
in the Fifth district, including both rural and urban
projects, totaled $23,273,287, compared with $12,110,714 awarded in August 1934, according to figures col­
lected by the F. W. Dodge Corporation. Of the awards
in August this year, $5,340,632, or 22.9 per cent, was
for residential work, while last year residential con­
tracts totaled $1,806,354, or 14.9 per cent of all awards
in August.

Retail Trade, 31 Department Stores___________
Richmond Baltimore Washington Other Cities District

August 1935 sales, compared with sales in August, 1934:
+ 4.0
— 3.8
+17.7
+ 6.7
+ 7.1
Total sales Jan.-Aug. 1935, compared with Jan.-Aug. 1934r
+ 42
+ .9
+14.3
+ 3 .8
+ 7.1
Aug. 31, 1935, stocks, compared with stocks on Aug. 31, 1934:
— .9
— 6.2
— .5
+ 2.5
— 2.5
Aug. 31, 1935, stocks, compared with stocks on July 31, 1935:
+ 4.1
+ 6.5
+ 6.1
+ 6.6
+ 6.1
Number of times stock was turned in August 1935:
.313 *
.273
.37
.296
.318
Number of times stock was turned since January 1, 1935:
2.493
2.362
2.84
2.211
2.551
Percentage of Aug. 1, 1935, receivables collected in August:
29.8
25.8
26.5
25.8
26.5
Note: Sales and stock changes are percentages.

W holesale Trade, 57 Firms
21

7

Groceries Dry Goods

6

Shoes

12

Hardware

11

Drugs

August 1935 sales, compared with sales in August 1934:
+ 5.3
—20.3
— 9.3
+ 7.8
+ .2
August 1935 sales, compared with sales in July 1935:
+ 2.1
+65.4
+98.1
+18.5
+ 2.6
Jan.-Aug. 1935 sales, compared with sales in Jan.-Aug. 1934:
+ 7.3
-18.0
—12.5
+ 8.4
+ 1.1
Aug. 31, 1935, stocks, compared with Aug. 31, 1934, stocks:
+ 1.1(8*) —23.9(3*) — 4.6(4*) — .1(7*)
Aug. 31, 1935, stocks, compared with July 31, 1935, stocks:
+ .7 ( 8*) —12.5(3*) — 8.9(4*) — 1.6(7*)
Percentage of collections in August to receivables Aug. 1:
99.7(12*) 42.0(4*)
41.0(5*)
38.9(11*) 66.6(7*)
♦Number of reporting firms. All figures in the table are per­
centages.

er 21, 1935)

MONTHLY REVIEW

8

BUSINESS CONDITIONS IN THE UNITED STATES
(CompOed by the Board of Governors of the Federal Reserve System)

Total volume of industrial production increased in
August by about the usual seasonal amount. Steel out­
put increased more than seasonally, while the output
of automobiles and anthracite declined sharply. Fac­
tory employment and payrolls increased. Wholesale
prices of farm products and metals advanced during
August and the first two weeks of September, and
prices of wheat and metals increased further in the
third week of the month.

Production and Employment
Industrial production increased seasonally in Au­
gust and the Board’s index, which is adjusted to
allow for usual seasonal variations, remained unchanged
at 86 per cent of the 1923-1925 average. Activity at
steel mills showed a considerable increase from July
to August and in the first three weeks of September
was at a level higher than in any other month since
February. Automobile assemblies declined by about
30 per cent in August, and showed a further sharp
reduction in the early part of September, reflecting in
part preparations for early introduction of new mod­
els. At lumber mills output continued to increase in
August. Cotton consumption by domestic mills in­
creased slightly from recent relatively low levels and
activity at woolen mills was maintained at a high rate.
At mines, output of anthracite decreased sharply in
August, while output of bituminous coal showed an
increase. Factory employment and payrolls increased
between the middle of July and the middle of August
by more than the usual seasonal amount. Marked in­
creases in employment were reported for the steel, ma­
chinery, lumber, silk, and clothing industries, while at
automobile factories employment declined somewhat.
The number of wage earners engaged in the produc­
tion of durable manufactures in August was 6 per cent
larger than a year earlier, while the volume of em­
ployment in other manufacturing industries as a group
showed little change. Total factory employment was
3 per cent larger than in August 1934.
Daily average value of construction contracts, as re­
ported by the F. W. Dodge Corporation, showed little
change in August and the first half of September.
Contracts for residential building, which earlier in the
year had increased considerably, showed a decrease
for this period, while the volume of public projects
increased.
Department of Agriculture estimates based on Sep­
tember 1 conditions indicate a cotton crop of 11,489,-




000 bales, as compared with the unusually small crop
of 9,636,000 bales last year. The indicated crops of
corn, wheat, and other grains are considerably larger
than last year, when drought conditions prevailed, and
the condition of pastures is above the ten-year average.

Distribution
Freight-car loadings increased considerably in Au­
gust and the first half of September, partly as a con­
sequence of seasonal factors. Department store sales
increased slightly less than seasonally from July to
August.

Commodity Prices
The general level of wholesale commodity prices, as
measured by the index of the Bureau of Labor Sta­
tistics, advanced from 79.6 per cent of the 1926 aver­
age at the beginning of August to 80.8 per cent in the
second week of September and prices of many leading
commodities, including wheat, silk, copper, lead, and
zinc, advanced further in the third week of the month.
Cotton prices declined considerably in August and
showed relatively little change in the first three weeks
of September.

Bank Credit
Excess reserves of member banks declined in the
five-week period ended September 18, reflecting a tem­
porary increase in the Treasury’s; total holdings of
cash and deposits at Federal Reserve banks and a
seasonal increase of money in circulation, which was
partly offset by an inflow of gold from abroad.
Total loans and investments of reporting banks in
leading cities increased by $610,000,000 during the
five weeks ended September 18. Loans increased by
$100,000,000, holdings of United States Government
direct obligations by $390,000,000, holdings of United
States guaranteed securities by $70,000,000, and hold­
ings of other securities by $50,000,000. Adjusted
demand deposits of these banks—that is, demand dei posits other than Government and bank deposits, ads justed for collection items—increased by $140,000,000,
United States Government deposits by $160,000,000,
and balances due to banks by $270,000,000.
Yields on Government securities rose somewhat fur| ther during this period, while other short-term open! market money rates remained at previous low levels.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102