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M O N T H L Y R E V I E W O f Agricultural, Industrial, Trade and Financial Conditions in the Sixth Federal Reserve District F E D E R A L R E S E R V E B A N K O F A T L A N T A (Compiled Atigust 18, 1929) VOL. 14, No. 8 ATLANTA, GA., August 31, 1929. 1 & ’ BUSINESS CONDITIONS IN THE UNITED STATES Industrial production decreased slightly during July, but continued at a higher level than in other recent years. Wholesale commodity prices increased further during the month, reflecting chiefly higher prices of agricultural pro ducts. Loans for commercial and agricultural purposes by reporting member banks increased during July and the first half of August. Production Output of manufactures decreased in July, while mineral production increased. Aver age daily output of automobiles, copper, tin, zinc, and cot ton and wool textiles decreased and there was a small de cline in the production of iron and steel. In all of these industries, however, output was larger than in the same month in earlier years. Activity increased during July in silk and shoe factories and in meat packing plants, and there was also a larger output of bituminous coal and crude petroleum than in June. Reports for the first half of August indicate sustained activity in the iron and steel and automobile industries, and a further increase in the output of coal and petroleum. Employment in manufac turing industries decreased in July by less than one per cent, while a somewhat greater decrease in payrolls was reported. At this level, factory employment and payrolls, as in earlier months, was larger than in any other year since 1926. Value of construction contracts awarded in July was higher than in the preceding month or in July 1928, reflecting chiefly a sharp increase in contracts for public works and utilities. For the first half of August however, total contracts declined to a level below the corresponding period a year ago. The August estimate of the Department of Agriculture indicates a wheat crop of 774,000,000 bushels, slightly below the five-year average, This review released for publication in the afternoon papers of August 30. and 128,000,000 bushels below last year’s production, and a corn crop approximately equal to the five-year average crop and about 100,000,000 bushels smaller than in 1928. The cotton crop is estimated at 15,543,000 bales, 7 per cent larger than last year. Distribution Freight car-loadings increased seasonally during July and the first two weeks of Au gust, reflecting chiefly increased loadings of coal, grain, and ore, while shipments of miscellaneous freight contin ued in about the same volume as in June. Sales of de partment stores declined seasonally from June and on a daily basis were about the same as in July a year ago. Prices Wholesale prices in July continued the rise which began in June, according to the index of the Bureau of Labor Statistics, reflecting chiefly higher prices for farm products and their manufactures, particu larly livestock and meats, grains and flour, and potatoes. Prices of hides and leather also increased. Wool, rayon, and textile products declined slightly in price. There was a marked advance in the price of sugar and rubber prices also rose somewhat. Prices of petroleum and gasoline de clined and prices of iron and steel were somewhat lower. During the first three weeks in August there were declines in the prices of cotton, petroleum, beef, sugar, oats, rub ber, and tin, and marked fluctuations in prices of pork and wheat. Bank Credit Loans for commercial purposes by report ing member banks increased to new high levels during the four weeks ending August 14, while security loans, after increasing further during the latter part of July, declined during the first two weeks in Au(Continued on page 7) 2 MONTHLY REVIEW PIRC N l T 7 P RC N E ET 1927 1928 1929 M onthly averages of weekly figures for reporting banks in leading cities. Latest figures are averages of first three weeks in August. SIXTH DISTRICT SUMMARY Statistics received for the Monthly Review indicate that during July there was improvement in agricultural pros pects in the sixth district, and increases over the preced ing month and the corresponding month last year in wholesale trade, debits to individual accounts, and in the production of cotton cloth and yarn, but retail trade con tinued at a seasonally low level, and was somewhat small er in volume than a year ago. The August crop reports of the United States Depart ment of Agriculture indicate improved prospects for corn, hay, tobacco and potatoes* in the sixth district over a month earlier, and most of these crops, and cotton, are expected to be greater than for last season. The esti mated sugar production in Louisiana is substantially larg er than last year’s crop, but the estimate of the rice crop is somewhat smaller than for last year. The Department’s estimate of cotton production indicates greater crops in each of the six states of the district than were produced last year but weevil activity is reported in many sections. Retail trade, based on confidential reports from depart ment stores located throughout the district, declined 18.6 per cent in July compared with June, and averaged 2.2 per cent less than in July 1928. July sales by reporting wholesale firms, however, averaged 4.6 per cent greater than in June, and 5.4 per cent greater than in July last year. Savings deposits declined in July, and were less than at the same time last year. Debits to individual ac counts averaged 5.4 per cent greater than for June, and 10 per cent greater than for July 1928. Loans of weekly reporting member banks were slightly smaller in volume on August 14 than five weeks earlier, but somewhat great er than a year ago, and discounts for member banks by the Federal Reserve Bank of Atlanta increased nearly four millions between July 10 and August 14, and were 4.4 millions less than a year ago. Commercial failures in the district, in point of liabilities, were 14 per cent greater than in June, and one-third smaller than for July last year. Monthly rates in the open market in New York: commercial paper rate on 4- to 6-month paper and acceptance rate on 90-day bankers’ acceptances. Latest figures are averages for first 24 days in August. Contract awards in the district were 31 per cent less than in June, but less than onet per cent smaller than for July 1928. Output of bituminous coal in Alabama and Tennes see averaged somewhat less than in July last year, but Alabama production of pig iron was 19 per cent greater. RETAIL TRADE The distribution of merchandise at retail in the sixth district, reflected in sales figures reported confidentially to the Federal Reserve Bank of Atlanta by representative department stores located throughout the district, exhibit ed a further seasonal decline in July, as compared with previous months, and averaged somewhat smaller than in July last year. Stocks of merchandise were smaller than a month, or a year, earlier, and the rate of turnover was slightly less favorable. July sales by 42 reporting department stores declined an average of 18.6 per cent, compared with the preceding month, and were 2.2 per cent smaller than in July 1928. Cumulative sales from January 1 through July 31 aver aged two per cent smaller this year than during the same period last year. An increase for July, and for the first seven months of the year, over corresponding periods last year, was shown at Atlanta, but decreases were reported from other reporting cities. Stocks averaged 3.9 per cent smaller at the end of July than a month earlier, and 3.0 per cent smaller than a year ago. Accounts receivable at the end of July averaged 7.9 per cent smaller than for June, but were 2.8 per cent larger than for July 1928. Collections during July decreased 1.6 per cent compared with June, but were 3.2 per cent greater than in July last year. The ratio of collections during July to accounts receivable and due at the be ginning of the month, for 32 firms, was 31.3 per cent; for June this ratio was 30.8 per cent, and for July last year, 31.6 per cent. For July the ratio of collections against regular accounts for 32 firms, was 33.4 per cent, and the ratio of collections against installment accounts, for 9 firms, was 16.1 per cent. RETAIL TRADE IN THE SIXTH DISTRICT DURING JULY 1929 BASED ON CONFIDENTIAL REPORTS FROM 42 DEPARTMENT STORES Comparison of Net Sales Comparison of Stocks July 1929 Jan. 1to July 31, July 31,1929 July 1929 July 31,1929 1929 with same with with with with June 30, 1929 period in 1928 July 31, 1928 uly 1928 June 1929 + 3.2 Atlanta (5) _________ + 8.0 — 14.7 — 4.2 — 1.7 Birmingham (4)____ — 18.7 — 1.4 — 3.4 — 4.0 — 4.3 — 3.2 Chattanooga (6)____ — 4.4 — 33.3 — 3.0 — 3.6 Nashville (4) ______ — 6.0 — 25.8 — 1.8 — 6.0 — 3.7 — 4.8 — 9.6 — 19.0 New Orleans ( 4 ) _ _ — 0.7 — 5.3 Other Cities (19) ___ — 4.5 — 9.8 — 0.6 — 14.0 4.2 DISTRICT (42)____ — 2.2 — 18.6 — 2.0 — 3.0 — 3.9 N o te : The r a t e o f s to c k t u r n o v e r is t h e r a t i o o f s a le s d u r i n g g i v e n p e r io d t o a v e r a g e s to c k s o n h a n d . Rate of Stock Turnover July July Jan. 1to July 31 1928 1929 1928 1929 1.85 1.95 .22 .24 1.37 .17 .16 1.39 1.32 .16 .16 1.38 1.66 .19 .18 1.67 1.18 .14. .42.. 1.22 1X1 .16 .15 at .17 .16 1.42 1.89 MONTHLY REVIEW WHOLESALE TRADE There was some improvement in the volume of whole,le trade in the sixth district in July, compared with Doth the preceding month and the corresponding month last year, as reflected in sales and other figures reported confidentially to the Federal Reserve Bank by 120 whole sale firms in eight different lines of trade. Total sales in July by these firms were 4.6 per cent greater than in June, and 5.4 per cent greater than in July last year. Stocks on hand, accounts receivable and collections all show increases compared with similar items for June, and the last two items show increases also over July 1928, but stocks were somewhat smaller than for that month. The figures in the table show comparisons of reported items for all reporting firms. July 1929 compared with: June 1929 July 1928 _ + 4.6 + 5.4 Sales .............. ..................... Stocks on hand ___________ ..... + 0.7 — 2.1 ..... + 2.2 + 3.5 Accounts receivable ________ + 4.6 + 6.8 Collections ______________ Groceries Sales of groceries at wholesale increased at all reporting cities in July as compared with June, and were also greater than for July last year except at Vicksburg. Total sales averaged 4.2 per cent greater than in June, and 6.3 per cent greater than in July 1928. Stocks on hand increased over both of these comparative months. Accounts receivable increased over June, but were smaller than for July last year, and col lections show decreases compared with both of those periods. July 1929 compared with: Sales: June 1929 July 1928 ..... + 3.5 + 2.1 Atlanta (3 firms) ..... + 2.3 +24.4 Jacksonville (4 firms) New Orleans (6 firms) ________ +13.5 + 0.3 Vicksburg (3 firms) __________ _ + 1.1 — 10.4 Other Cities (13 firms) ________ _ + 0.9 + 8.3 + 6.3 DISTRICT (29 firms) __________ ..._ + 4.2 + 5.8 Stocks on hand __ + 4.2 — 4.1 Accounts receivable + 6.1 — 3.3 Collections _____ — 0.5 Dry Goods July sales of dry goods at wholesale in the sixth district averaged 10.3 per cent great er than in June, although there was a decrease shown for New Orleans. Total sales in the district were 1.7 per cent greater than in July last year. Stocks on hand, and accounts receivable increased less than one per cent over June, and collections decreased slightly, and stocks de clined compared with those a year ago, but accounts re ceivable, and collections show increases over July last year. July 1929 compared with: Sales: June 1929 July 1928 Atlanta (3 firms) ______ _________ + 1 3 .8 + 2 1 .4 Nashville (3 firms) _______________ + 2 5 .3 + 1 0 .1 New Orleans (4 firms) __________ __ — 10.3 + 2.3 Other Cities (14 firms) _____________ + 1 3 .1 — 4.0 DISTRICT (24 firms) _____________ + 10.3________ + 1.7___ Stocks on hand ___________________ + 0.2 — 17.8 Accounts receivable ________________ + 0.7 + 2.6 Collections ---------------------------------- — 0.4 + 4.1 Hardware Notwithstanding decreases reported from Nashville, compared with both the preced ing month and the same month a year ago, sales of hard ware at wholesale in July averaged greater than for either of those months. Stocks declined, but accounts receivable and collections showed increases compared with both of those comparative periods. July 1929 compared with: •Sales: June 1929 July 1928 Nashville (4 firms) ___________ ___ — 6.6 — 0.6 New Orleans (5 firms) _________ ___ + 1.2 + 9.2 Other Cities (18 firms) ____________ + 1 5 .5 + 1 2 .9 DISTRICT (27 firms) _____________ + 6.2________ + 9.3 Stocks on hand _________________ ~ —' 0.4 — 1.0 Accounts receivable ________________ + 3.9 + 7.7 Collections ______________________ + 5.0 + 1 5 .7 Furniture July sales of furniture at wholesale aver aged smaller in volume than in June or in July last year. Stocks on hand at the end of July were larger than a month ago, but smaller than at the same 3 time last year, and accounts receivable were smaller than for June but larger than for July 1928. Improvement was shown in collections compared with both of those comparative periods, as indicated in the table. July 1929 compared with: June 1929 July 1928 Sales: ..... — 22.5 — 8.4 Atlanta (5 firms) + 0.2 + 1.3 Other Cities (7 firms) ----_ — 4.8 — 0.6 DISTRICT (12 firms) ___ + 4.3 — 7.7 Stocks on hand __ + 8.6 — 1.5 Accounts receivable +18.2 +15.7 Collections -------Sales of electrical supplies at wholesale im proved slightly in July over June, but aver aged somewhat smaller than in July last year. Stocks on hand increased slightly over June, and were greater than a year ago, and collections show im provement over both of those periods. Accounts receiv able declined compared with June but were larger than a year ago. July 1929 compared with: July 1928 Sales: June 1929 ..._ + 5.6 New Orleans (4 firms) + 5.7 Other Cities (9 firms) . — 10.1 _ + 0.7 — 4.4 + 2.5 DISTRICT (13 firms) . +30.2 Stocks on hand ----------------------------- + 1.3 Accounts receivable ------------------------- — 3.1 + 2.3 Collections ............... ............................. +13.7 + 4.5 Electrical Supplies Comparisons in the other three lines are shown only for the district as three or more reports were not received in any of these lines from any single city. July 1929 compared with: June 1929 July 1928 Shoes: Sales ...... ._ + 4.9 + 0.5 Stationery: Sales + 4.0 — 9.3 Drugs f Sales + 1.0 +13.8 + 3.4 + 3.7 Accounts receivable ________ Collections ________________ +5.8 ‘ ‘ +9.4 AGRICULTURE The first estimate of the 1929 cotton crop by the United States Department of Agriculture, released on August 8 and based upon conditions up to August 1, indicates the production of 15,543,000 bales this season. This compares with final ginnings of 14,478,000 bales from the 1928 crop. The condition of the crop on August 1 was 69.6 per cent of normal, and was 2.2 points above the average condition on that date. While the crop is earlier than in 1928, it is about three days later than the average of the past five years, for the cotton belt as a whole. The report indi cates that with usual weather conditions during the re mainder of the season there will be more weevil damage this year than last in all states except Oklahoma and Ar kansas. In Georgia most of June and July favored the rapid development of the crop, but excessive rains in the r-outhern part of the state late in July resulted in increas ed weevil activity. Fruiting in Louisiana and Mississip pi was more advanced than average on August 1, Georgia was about average, and the other states less advanced than the average for that date. The condition of cotton was higher on August 1 this year than a year ago in each of the six states of this district, and the estimated produc tion in each of these states is also greater than that of last season. Number of Bales Estimated 1929 Final 1928 1,109,126 Alabama ______ _____ ______________1,317,000 Florida _____ ____________________ 25,000 19,203 Georgia ......................................^_____ 1,182,000 1,029,499 Louisiana ________________________ 715,000 690,958 M ississippi ________________________1,921,000 1,474.875 Tennessee ------------------------------------ 468,000 429,284 Total six states ---------------------------5,628,000 4,752,945 Production of tobacco in Georgia this year is estimated at 79,118,000 pounds, a little more than five million pounds less than last year, while the Tennessee crop is estimated at over 99 million pounds, an increase of about 18 million pounds over last year. Sales of tobacco during the first three weeks of the marketing season are reported by the State Commissioner of Agriculture as having totaled 70,622,054 pounds, at an average price of 20 cents per pound, 4 MONTHLY REVIEW and the total value of these sales at $14,125,654, as com pared with sales of 51,363,508 pounds at an average price of 14.02 cents, and total value of $7,198,598 for the first three weeks of the 1928 marketing season. Production of peaches in Georgia was the lowest in several years, with an estimated agricultural crop of 2,707,000 bushels, as compared with 10,000,000 bushels in 1928. The Geor gia apple crop is estimated at 626,000 bushels, compared with 1,400,000 bushels last year. The condition of the ci trous crop in Florida still indicates production much be low that of last season. Oranges are reported at 62 per cent of normal on August 1, compared with 84 per cent a year ago, and grapefruit at 57 per cent of normal com pared with 79 per cent at the same time last year. Pros pects for staple crops remain fairly good for the state as a whole. Sugar Cane Weather conditions in the Louisiana cane and Sugar belt have continued tavorable. The August 1 condition of the cane indicates a probable production of 217,634 short tons of sugar this season, com pared with 132,053 short tons produced last season. This crop generally is reported in excellent growing condition. SUGAR M OVEM ENT (Pounds) Raw Sugar Receipts: July 1929 June 1929 July 1928 New Orleans ................... 214,288,838 159,624,245 98,863,445 Savannah _______ ____ 20,851,402 24,996,965 9,386,703 Meltings: New Orleans _________ 195,393,798 155,721,638 117,458,680 Savannah ................. ....... 14,722,505 42,674,342 28,686,117 Stocks: New Orleans _________ 176,558,761 160,998,573 40,280,389 Savannah ___________ 68,258,903 62,130,006 21,306,279 Refined Sugar (Pounds) Shipments: New Orleans _________ 181,645,720 156,730,014 118,829,913 28,181,869 24,906,621 32,680,255 Savannah ___________ Stocks: 80,223,538 79,265,552 44,741,989 New Orleans _________ Savannah ___________ 15,847,318 34,421,328 11,101,730 Rice Rice has made satisfactory progress during the past month, and the condition on August 1 re mained at 83 per cent of normal. Fresh water for irri gation has been plentiful this season. The estimated production is placed at 16,189,000 bushels, compared with 18,392,000 bushels last season. RICE M OVEM ENT— NEW ORLEANS Rough Rice (Sacks) July 1929 June 1929 July 1928 Receipts _________ j_______ 11,443 24,930 690 23,947 11,762 2.020 Shipments _______________ Stocks __________________ 3,502 16,006 1,586 CLEAN RICE—(Pockets) Receipts _________________ 81,849 128,312 40,293 Shipments _______________ 113,969 130,369 35,274 Stocks __________________ 128,215 160,335 164,662 RICE MILLERS ASSOCIATION STATISTICS (Barrels) Aug. 1to Receipts of Rough Rice: July July 31 Season 1928-29 ________________ 125,737 9,164,411 Season 1927-28 ________________ 16,892 9,495,452 Distribution of M illed Rice: Season 1928-29 ________________ 515,342 9,882,110 10,189,848 Season 1927-28 ________________ 285,155 Stocks of Rough and M illed Rice: August 1, 1929 ________________ 485,177 August 1, 1928 ________________ 829,608 FINANCIAL Savings Following the semi-annual interest period, Deposits savings deposits at Atlanta, at branch ci ties, and aggregate savings reported from other cities in the district declined in July, and were in smaller volume than a year ago. Decreases compared with June are shown in figures reported from each city shown in the statement, and total savings for the dis trict averaged 6.1 per cent less than for June. Compared with July 1928, figures reported from Nashville show an increase but this was more than outweighed in the district average by decreases at other points, and total savings averaged 6.4 per cent less than a year ago, as indicated in the table. (000 Omitted) Comparison Comparison July July June July-June July 1929 1929 1929 1928 * 29-*28 Atlanta (7 banks) ___ 41,273 $ 43,599 — 5.3 $ 45,662 — 9.6 Birmingham (4 banks) _— 24,633 25,925 — 5.0 25,226 — 2.4 Jacksonville (4 banks) _— 21,821 25,691 — 25.9 15.1 29,461 — Nashville (8 banks) ____ 29,118 31,698 — 8.1 26,175 +11.2 New Orleans (7 banks) ...__ 47,350 47,566 — 0.5- 48,095 — 1.5 Other Cities (47 banks) .... 103,003 110,183 — 6.5 110,815 — 7.0 Total (77 banks) ____ ... 267,198 284,662 — 6.1 285,434 — 6.4 Debits to Individual Accounts The total of debits to individual accounts at 26 reporting cities of the sixth district in July was 5.4 per cent greater than in June, and shows an increase of 10.1 per cent over the month of July last year. Sixteen of these reporting cities show increases over July 1928, while decreases were reported from the other ten cities. The monthly figures shown in the table are derived from weekly reports by pro-rating figures for those weeks which do not fall entirely within a single calendar month. (000 Omitted) Alabama July 1929 June 1929 July 1928 Birmingham ! 143,820 $ 137,190 $ 144,839 _ Dothan _ 2,728 2,626 2,937 M obile ___ 43,878 36,569 37,573 24,804 23,998 23,503 Florida Jacksonville 77,809 72,555 71,329 M iami ___ 30,451 31,369 28,047 Pensacola ... 7,081 8,185 7,432 Tampa ..... 33,585 36,676 37,955 Georgia Albany _ _ 3,595 3,207 3,537 Atlanta 222,414 204,179 148,742 Augusta _____ ________ 23,212 22,877 23,781 Brunswick _ _ 4,374 4,056 3,914 Columbus .... 14,705 13,233 12,275 Elberton _ _ 842 911 738 M acon ___ 20,942 17,389 20,990 Newnan _ _ 2,272 1,723 1,896 Savannah _ 48,998 38,177 41,377 Valdosta ___ 6,065 4,469 6,616 Louisiana New Orleans 327,882 291,132 326,052 M ississippi Hattiesburg ... 7,217 6,449 7,284 Jackson ___ 26,092 24,475 24,079 Meridian .... 15,642 13,472 17,124 Vicksburg _ 6,544 5,887 7,419 Tennessee Chattanooga . 53,314 54,121 46,310 Knoxville __ 36,720 34,000 36,879 Nashville 104,443 134,814 89,557 Total 26 cities 1,289,429 $1,223,739 $1,171,185 Condition of Member Banks Weekly reports received ijn Selected Cities from thirty reporting aj.1 j. xr member banks located in Atlanta, New Orleans, Birmingham, Jacksonville, Nashr 1 i i hattanooga, Knoxville and Savannah, indicate that ! total loans of these banks declined $3,638,000 between July 10 and August 7, but increased $2,985,000 during the following week, and on August 14 were $653,000 less than live weeks earlier. During this period loans on securities declined $3,076,000, and AH Other loans increased $2,423,000. Compared with figures for the corresponding report date a year ago, loans on securities show an increase of more than 18 millions, and other loans a decrease of a little more than 41-2 millions, and total loans were 131-2 millions greater than at that time. Holdings of United States securities and of Other stocks and bonds both show decreases compared with five weeks, and a year, ago. De mand deposits were greater, but time deposits smaller, than tor either of the report dates under comparison. Bor rowings by these weekly reporting banks from the Fed eral Reserve Bank of Atlanta were $336,000 greater on August 14 than on July 10, but $6,203,000 less than at the same time a year ago. Principal items in the weekly re port for the three report dates under comparison are shown m the table. (000 Omitted) Aug. 14, July 10, Aug. 15 Loans: 1929 1929 1928 On Securities _ ------------$152,467 $155,543 $134,339 All Other ___ ------------ 363,870 361,447 368,494 Total Loans ------------ 516,337 516,990 502,833 U S. Securities ....... . ----------- 58,634 60,481 69,541 5 MONTHLY REVIEW 71,993 71,487 Other Stocks and Bonds-------------- 67,606 644,367 648,958 Total Loans and Investments 642,577 238,164 244,413 Time Deposits ----------------------- 236,137 318,163 316,235 Demand Deposits -------------------- 322,144 93,588 89,887 Due to Banks------------------------ 88,648 66,630 69,051 67,583 Due from Banks 50,218 44,015 43,679 Borrowings from F. R. BankDuring the five weeks period Operations of the between July 10 and August Federal Reserve Bank 14 there were increases in the volume of discounts for member banks, in Federal Re serve note circulation, and in total reserves, but decreases in deposits and in holdings of bills bought in the open market and of government securities, shown in the week ly statements of the Federal Reserve Bank of Atlanta. Discounted bills held on August 14 show an increase of $3,885,000 over the total five weeks earlier, due principally to an increase in those secured by government obligations. Compared with figures for the corresponding report date of last year, however, bills secured by government obliga tions show a decrease of $5,846,000 and total discounts were smaller by $4,425,000 than at that time. Holdings of bills bought in the open market, and of government se curities, declined compared with figures for July 10, and were less than for the same report date a year ago, and total bills and securities show a decrease of $14,921,000 compared with a year ago. Deposits on August 14 were smaller than on either of the previous report dates under comparison. Federal Reserve notes in actual circulation, following the issuance of the new size currency, increased more than 15 millions between July 10 and August 14, and show an increase of 23 1-2 millions over the same report date of last year. Principal items in the weekly statement for the three report dates under comparison are shown in the table. (000 Omitted) Aug. 14, 1929 Bills Discounted: Secured by Govt. Obligations- _$ 13,822 — 58,994 All Others 72,816 Total Discounts--------Bills Bought in open market___ ™ 4,584 — 3,093 U. S. Securities 80,493 Total Bills and Securities Cash Reserves ------------------ __ 137,500 ™ 63,010 Total Deposits P. R. Notes in actual circulation___ 151,803 Reserve Ratio---------------------- 64.0 July 10, 1929 $ 10,425 58,506 68,931 5,236 3,096 77,263 130,138 65,460 136,417 64.5 Aug. 15, 1928 $ 19,668 57,573 77,241 13,000 5,173 95,414 103,020 65,267 128,240 53.2 Bank Deposits of All Member Banks Net demand deposits of all mem ber banks in the sixth district continued in June to decline from the high point for the year shown in March, and were at a lower level than in June last year. Time deposits in June increased to a point higher than for any other month this year, but were still somewhat smaller than for the same month last year. The figures for 1929 are averages of daily figures for each month, while those for corre sponding months of 1928 are for a single report date of each month. Demand Deposits Time Deposit! 1929 1928 1929 1928 January ______$594,393,000 $634,598,000 $454,062,000 $465,326,000 February -------- 596,768,000 625,307,000 458,445,000 461,400,000 March______ 600,785,000 621,048,000 459,323,000 465,757,000 April ----------- 584,913,000 612,186,000 449,462,000 467,351,000 M ________ _ 568,686,000 607,138,000 458,520,000 471,907,000 ay June ________ 548,639,000 596,668,000 466,233,000 471,953,000 Commercial Failures According to statistics compiled by R. G. Dun and Company, commercial failures in the United States during the month of July numbered 1,752, compared with 1,767 in June, and with 1,723 in July 1928. Liabilities of firms which failed in July amounted to $32,425,519, an increase of 3.3 per cent over the total for June, and greater by 9.6] per cent than for July last year. Figures for the sixth district indicate 97 failures during July, compared with 100 in June, and with 110 in July a year ago, and liabilities of these firms during July show an increase of 14.1 per cent over June, but a decrease of 24.1 per cent compared with July last year. Figures in the table show failures in the United States divided by Federal Reserve Districts. Number Liabilities Liabilities Liabilities July 1928 July 1929 July 1929 June 1929 District 176 $ 3,085,987 $ 2,887,796 $ 2,345,127 Boston ........... 7,973,412 7,469,126 New York _____ 327 8,806,245 1,366,704 1,248,063 Philadelphia . 57 1,267,519 3,248,216 143 1,996,972 3,480,435 Cleveland ..... 2,698,274 2,534,991 1,838,607 Richmond ........ _ 98 1,328,602 1,997,327 Atlanta ........... ... 97 1,516,116 3,295,071 Chicago .....— 242 3,962,653 6,436,327 St. Louis ......... 1,331,242 1,894,983 2,288,466 111 496,225 512,743 312,448 Minneapolis __ 46 _ Kansas City _ __ 130 1,826,622 467,828 879,447 710,082 1,072,213 Dallas ..... ....... 39 1,975,746 2,192,461 San Francisco _ __ 286 3,445,400 3,197,437 1,752 $32,425,519 $31,374,761 $29,586,633 Total ........ IMPORTS AND EXPORTS United States Preliminary figures compiled and pub lished by the United States Department of Commerce indicate that both exports and imports dur ing July were only slightly larger than for June, and were greater than for the same month of last year. Exports for the first seven months of 1929 were greater than for the same period of any year since 1920, and imports for this period were greater than for the same part of the two preceding years. Exports: 1929 1928 July ............. ............................$ 401,000,000 $ 378,963,000 June ------------------------------ 397,000,000 389.000.000 Seven months ending with July__ 3,024,068,000 2.756.973.000 Imports: July ___ _____ _________ _$ 353,000,000 $ 317,804,000 June ____ _______________ 352,000,000 317.000.000 Seven months ending with July__ 2,639,354,000 2.403.780.000 New Orleans Merchandise was imported into the United States through the port of New Orleans during the month of May 1929, the latest month for which detailed statistics are available, to the value of $22,775,064, an increase of 4.8 per cent over April, and 38.6 per cent greater than the total for May 1928. Exports of merchandise through the port of New Or leans during May totaled $25,130,855, a decrease of 20.3 per cent compared with April, and 16.8 per cent less than for May last year. Grain Exports—New Orleans Exports of grain through the port of New Orleans dur ing July 1929 were greater than for the same month last year, as indicated in the table. Corn and oats were ex ported in smaller volume, but wheat shows a large in crease. July 1929 July 1928 Wheat, bu. .. 428,702 94,127 Corn, bu. .. 131,887 256,232 Oats, bu. _ 61,563 77,068 Rye, bu._ _ 21,428 Total, bushels ..... .. 643,580 427,427 BUILDING The volume of prospective building as indicated by building permits issued at twenty regularly reporting cities of the sixth district declined further in July, and was smaller than at the same time a year ago, and con tract awards in the district also declined compared with the preceding month, but were only fractionally smaller than for July last year. The total value of building permits issued during July at twenty reporting cities of the sixth district, for the erection of buildings within their corporate limits, amounted to $6,029,543, a decline of 10 per cent com pared with the total for June, and 33.3 per cent less than for July 1928. Six of these cities reported increases over July last year, and the remaining fourteen reported de creases. The index number for the district, based upon the monthly average for the three year period 1923-25 inclusive, was 53.6, compared with 59.5 for June, and with 80.4 for July 1928. Index numbers for Atlanta, and for Federal Reserve Branch cities are shown on the last page of this Review. According to statistics compiled by the F. W. Dodge Corporation, the total value of contracts awarded for building and construction work in the 37 states east of the Rocky Mountains during July amounted to $652,436,100, the second largest monthly total on record, and repre- MONTHLY REVIEW 6 senting an increase of 20 per cent over the total for June, and an increase of 12 per cent over July 1928. In July, $199,925,500, or 31 per cent of the total, was for residen tial building; $195,546,700, or 30 per cent, was for public works and utilities; $91,348,300, or 14 per cent, was for commercial building. During the first seven months of this year there was a total of $3,683,982,900 of new build ing and engineering work contracted for in the 37 eastern states, compared with $4,028,299,900 for the same period of 1928, or a decrease of 9 rer cent. Contracts awarded during July in the sixth district to taled $31,801,659, a decrease of 31 per cent compared with June, but only 0.6 per cent less than for July last year. Percentage July 1929 July 1928 change in Alabama Number Value Number Value Value Anniston __ 30 $ 71,709 $ 72,600 — 1.2 Birmingham .. 235 429,754 625 2,175,631 — 80.2 M 3 ____ obil 89 164,321 120 208,676 — 21.3 Montgomery „ 224 239,168 276 322,217 — 25.8 Florida Jacksonville _ 337 657,247 — 38.9 401,660 345 M iami ____ 227 344,124 177 264,749 + 30.0 48 26,170 75 231,825 — 88.7 Orlando ...... Pensacola __ 60 71,650 94 193,332 — 62.8 Tampa ____ 198 94,814 287 250,266 — 62.1 ♦Lakeland__ 3 37,100 5 11,125 +233.5 ♦M iami Beach 82 1,007,590 26 207,875 +384.7 Georgia Atlanta . 337 983,666 327 1,220,813 — 19.4 Augusta __ 170 152,736 142 116,457 + 31.2 Columbus .... 49 72,950 70 108,547 — 32.8 M acon ____ 224 125,882 273 476,210 — 73.6 Savannah __ 51 162,325 58 221,060 — 26.6 Louisiana New Orleans. 200 1,535,517 260 1,021,977 + 50.2 Alexandria _ 53 44,176 3 37,873 4- 16.6 Tennessee Chattanooga .. 300 369,996 241 145,854 +153.7 Johnson City , 23 111,050 14 80,750 + 37.5 Knoxville __ 90 243,134 181 788,978 — 69.2 Nashville__ 263 384,741 279 451,040 — 14.7 Total 20 Cities_ 3,208 $6,029,543 3,907 $9,041,102 — 33.3 Index No........... 53.6 80.4 ♦Not included in totals or index numbers. LUMBER Preliminary figures for the month of July, received up to the middle of August, by the Southern Pine Association from 92 subscribing mills, indicate that current production continues somewhat below the three-year average produc tion of reporting mills, and that orders and shipments continued less than output. Orders booked by these re porting mills in July were 4.9 per cent less than their pro duction; in June orders were 6.8 per cent less than output, while in July last year orders exceeded production by 7.4 per cent. July shipments were slightly less than orders, and were 4.6 per cent less than production. July produc tion was 8.2 per cent less than the three-year average out put of reporting mills, and stocks on hand at the end of July were 6.6 per cent smaller than the three-year rela tive stocks of these mills. Unfilled orders at the end of July amounted to 80.6 per cent of a month’s production at the rate which prevailed in July. Preliminary figures for July, with comparisons, are shown in the table. July 1929 June 1929 July 1928 (feet) 92 mills 94 mills 108 mills Orders _ 207,339,713 189,986,751 284,497,008 Shipments 206,844,353 205,311,911 Production ___________ 217,958,096 203,816,188 284,454,932 3-Year Average Production_ 237,532,590 240,819,383 264,870,514 Stocks, end of month ____ 567,790,205 581,078,371 289,417,528 3-Year Relative Stocks ___ 608,225,950 616,634,430 680,767,115 728,550,731 Unfilled orders, end of month 175,605,120 180,276,160 216,523,096 TEXTILES Cotton Statistics compiled and published by the Consumption United States Census Bureau indicate that the consumption of cotton in the United States during July declined 4.2 per cent compared with the preceding month, but was greater by 24.2 per cent than during the corresponding month of last year. Stocks of cotton, both in consuming establishments and in pub lic storage and at compresses declined compared with June, and stocks in public storage were smaller than a year ago, but those held by consuming establishments were somewhat larger. Exports during July were some what smaller than for June, or for July last year. The number of spindles in the United States active during July was smaller by 232,264 than for June, but was 2,236,182 greater than during the same month last year. Hosiery July 1929 June 1929 Cotton Consumed: 570,281 L int________________ . 546,457 78,154 Linters . . ................. 79,297 Stocks in Consum. Establishments: 1,289,294 Lint ........ ~ ................ ’ 1,051,535 Linters ............................ . 187,208 206,432 Stocks in Public Storage and at Compresses: 1,375,728 Lint ...... -............. .. 986,439 71,164 Linters ..................... ....... 58,422 299,136 Exports ................................. 237,506 26,113 Imports ................................. 21,369 .30,395,858 30,628,122 Active Spindles ..... .... Cotton Growing States (Bales) July 1929 June 1929 Cotton Consumed __________ . 409,057 431,967 Stocks in Consum. Establishmentsi 691,005 876,443 Stocks in Public Storage and at Compresses ............ ...... 745,250 1,100,528 Active Spindles ----------------- 18,003,104 17,984,360 July 1928 439,821 65,279 1,011,721 159,409 1,189,751 44,569 331,452 18,473 28,159,676 July 1928 331,961 613,618 1,036,183 17,674,582 Cotton Cloth Confidential reports for July were rendered to the Federal Reserve Bank of Atlanta by cot ton mills in the sixth district which during that month manufactured 26,456,000 yards of cotton cloth. This output was 9.2 per cent greater than the output of the same mills in June, and 22.5 per cent greater than their production in July last year. Shipments, orders, stocks on hand and number of workers also increased over June, but unfilled orders show a decrease. Compared with July a year ago, shipments, unfilled orders and number of workers show increases, but orders booked, and stocks on hand, declined. July 1929 compared with: June 1929 July 1928 Production ____ 9.2 +22.5 Shipments _____ +19.3 + 9.5 Orders booked ___ + 6.5 — 1.9 Unfilled orders __ — 4.4 + 6.3 Stocks on hand __ + 5.4 — 3.3 Number on payroll + 2.6 + 6.6 Cotton Yarn Reports for July were also received from cotton mills which produced during July 7,974,000 pounds of yarn, an output 10.6 per cent greater than for June, and 37.9 per cent greater than in July 1928. July shipments, orders, and number of workers increased over June, but unfilled orders and stocks on hand de creased, while all items except stocks show increases over the corresponding month of 1928. July 1929 compared with: June 1929 July 1928 Production _______________________ +10.6 +37.9 Shipments ---- ------------------------------ +17.2 +33.0 +38.9 Orders booked ____________________ + 6.9 +27.4 Unfilled orders ____________________ — 4.8 Stocks on hand ____________________ — 8.1 — 26.6 Number on payroll _________________ + 0.2 +13.0 Hosiery Figures for July and June reported to the Unit ed States Census Bureau by 34 identical estab lishments manufacturing hosiery in the sixth district in dicate declines in production, shipments, orders and un filled orders in July, but small increases in stocks. Total figures for the two months are shown in the table. Production __ Shipments __ Stock on hand Orders booked Cancellations _ Unfilled orders (Dozen July 1929 793,839 810,371 1,775,091 790,288 23,301 1,012,531 Pairs) June 1929 823,384 810,718 1,763,867 873,500 23,000 1,057,643 COTTON SEED AND COTTON SEED PRODUCTS (1) Sixth District United States Aug. 1 to July 31 Aug. 1 to July 31 1929 1928 1929 1928 Cotton Seed tons: Received at mills . 1,512,520 1,440,628 5,082,051 4;586,705 Crushed .. 1,503,096 1,462,389 5,058,744 4,654,017 On Hand 14,127 4,703 41,340 21,972 Production: Crude Oil, lbs. ----501,121,067 481,367,460 1,603,352,111 1.476.609.401 Cake and M tns. 649,363 636,269 eal, 2,280,894 2,093,354 7 MONTHLY REVIEW 1,320,066 1,367,325 Hulls, tons _____ 411,412 422,892 875,121 1,084,644 Linters, bales ____ 328,568 266,407 (2) Stocks: (2) 10,939,944 14,764.852 Crude Oil, lbs........ 1,142,093 4,464,245 80,914 32,648 Cake and M tons eal, 27,148 7,780 29,291 65,444 Hulls, tons _____ 12,288 6,039 43,994 74,640 Linters, bales 24,009 11,474 (1) Georgia, Alabama, Louisiana and M ississippi. (2) Not including stocks held by refining and manufacturing estab lishments and in transit to refiners and consumers. COAL According to statistics compiled by the United States Bureau of Mines, the production of bituminous coal in the United States during July was greater than in July last year, both in total output and in daily average produc tion, but July production in Alabama and Tennessee, the coal producing states of the sixth district, was at a some what lower level than a year ago. Statistics compiled by the Bureau of Mines indicate that the production of bituminous coal in July in the United States amounted to 40,635.000 tons, an increase of 6.7 per cent over the output of 38,073,000 tons in June, and 12 per cent greater than the 36,276,000 tons produced in July last year. Daily average output in July was 1,563,000 tons, 2.6 per cent greater than in June, and 7.6 per cent greater than in July last year. The total production of bituminous coal during the present calendar year to Au gust 3 amounted to 297,954,000 tons, compared with 274,292,000 tons produced during the same period of 1928. Weekly production figures of the Bureau of Mines are shown in the table, compared with corresponding weeks last year. Output for the week ended July 6 was affected by the observance of the holiday on July 4th. (000 Omitted) Tennessee United States Alabama W Ended eek 1929 1928 1929 1928 1929 1928 75 74 July 6 ........ ............ . 7,414 6,830 271 257 July 13 ................. .... 9,432 8,610 281 315 100 116 94 106 9,202 8,642 307 309 July 20 ____ ______ July 27 ..................... 9,480 8,964 306 306 97 103 August 3 ___ ___ ___ 9,220 8,757 ... ............... ......... IRON According to statistics compiled and published by the Iron Age, the production of pig iron in the United States in July this year made a new high record for that month. Total output was greater than for June, although the daily average rate of production declined slightly. Production in Alabama was also greater than in June, because of the longer month, while the daily average declined less than one-half of one per cent. Production of pig iron during July in the United States amounted to 3,785,120 tons, greater by 2.4 per cent than in June, and 23.2 per cent greater than in July last year. The index number for July based upon the monthly aver age output for the three-year period 1923-25, was 126.7, compared with 123.8 for June, and with 102.8 for July 1928. Daily average production declined nearly one per cent in July compared with June. The number of fur naces active on August 1 was 216, smaller by two than a month earlier, but greater by 31 than at the same time last year. Total production during the first seven months of this year amounted to 25,426,080 tons, and set a new high record for the period. Figures for Alabama indicate the production of 225,513 tons of iron during July, an output 2.9 per cent greater than in June, and 19.1 per cent greater than in July last year. The daily average rate of production declined fourtenths of one per cent compared with June. There were 17 furnaces active on August 1, the same as a month ear lier, and greater by one than a year ago. Press reports indicate that there has been steady buying for third quar ter iron, and the probable make is estimated to be more than eighty per cent sold. August shipments are expected to exceed those in July. Several important tonnages are reported to be under option to eastern points since the new rail and steamer rates became effective August 1st. The quoted price continued at $14.50 per ton. Figures are shown in tabular form for convenience of comparison. United States: Production (tons) .......... Index number ________ Average per day (tons)_ _ *Active furnaces _______ Alabama: Production (tons) ______ Index number Average per day (tons) *Active furnaces ____ ♦First of thfe following month. July 1929 June 1929 July 1928 3,785,120 3,697,628 3,071,824 123.8 102.8 126.7 99,091 123,255 122,100 ‘185 216 218 189,383 219,218 225,513 94.4 • 81.5 97.1 6,109 7,275 7,307 16 17 ‘ 17 r. S. Steel Corp,n Unfilled orders of the United States Steel Corporation at the end of July totaled 4,088,177 tons, a decrease of 168,733 tons, or 4 per cent, compared with the month be fore, but 14.5 per cent greater than at the end of July last year. NAVAL STORES July receipts of both turpentine and rosin at the three principal naval stores markets of the sixth district in creased over the preceding month, and were in greater volume than in July last year, and stocks of both com modities at the end of July were greater than a month earlier, although somewhat smaller than those recorded a year ago. Receipts of turpentine in July were 12.8 per cent greater than in June, and 17.7 per cent greater than in July 1028, and receipts of rosin increased 17.8 per cent over June, and were 22.4 per cent greater than a year ago. July receipts of both commodities were greater than for July of any of the past eleven years, and figures for the season April 1 to July 31 were greater than those of the corresponding part of any other season, except 1927, during the past ten years. Stocks of turpentine at the end of July were smaller than a year ago but larger t^an for any other recent year, and stocks of rosin, while ling er than for the same date in 1926 and 1920 were smaller than for other recent years. Press quotations indicate that prices of both commodities have fluctuated within a narrow range in recent weeks. Receipts and stocks are shown in the table. Receipts— Turpentine: July 1929 June 1929 July 1928 Savannah ____ 28,501 24,437 23,690 Jacksonville ___ 19,081 17,553 16,618 Pensacola ____ 7,290 6,668 6,329 Total __ __ 54,872 48,658 4M37 Receipts— Rosin: Savannah ____ 96,720 78,804 78,135 Jacksonville ___ 64,033 56,857 52,033 Pensacola ____ 20,680 18,507 18,082 Total ____ 181,433 154,168 148,250 Stocks— Turpentine: Savannah ____ 21,978 16,963 19,677 Jacksonville ___ 19,674 18,474 30,385 Pensacola ____ 23,918 22,291 19,183 Total ____ 65,570 57,728 *69,245 Stocks— Rosin: Savannah ........ 89,069 54,323 98.956 Jacksonville ___ 61,080 54,879 59,313 Pensacola ____ 19,271 14,303 19.956 Total ____ 169,420 123,505 178,225 (Continued from Page 1) gust. Member banks* borrowings at the reserve banks av eraged $45,000,000 less during the week ending August 17, than in the week ending July 20, reflecting increased sales of acceptances to the reserve banks, and further imports of gold. Open market rates on call and time loans on se curities were firmer during the last half of July and the first week of August. During the second week of August rates on call loans declined while rates on commercial paper in the open market advanced from 6 to 6J4 per cent. On August 8 the discount rate of the Federal Re serve Bank of New York was increased from 5 to 6 per cent, and the buying rate on bankers acceptances was re duced from 5J4 to the market rate of 5% per cent. MONTHLY REVIEW 8 MONTHLY INDEX NUMBERS The following index numbers, except as indicated otherwise, are computed by the Federal Reserve Bank of Atlanta monthly. The index numbers of retail and wh olesale trade are based upon sales figures reported con fidentially by representative firms in the lines of trade in dicated, and the other series of index numbers are based upon figures reported to the bank or currently available t hrough the daily or trade press. These index numbers, except as indicated in the foot-notes, are based upon the monthly averages for the three year period 1923-25 as represented by 100. RETAIL TRADE 6th DISTRICT (Department Stores.) Atlanta ............................ ;_____ Birmingham _______ _______ __ Chattanooga_________ ___ ___ Nashville ...„____________ ____ _ New Orleans ___ ____________ Other Cities_____ _____ ______ DISTRICT _____________ __ __ May 1929 142.6 114.2 83.6 124.1 92.4 102.4 107.0 June 1929 125.3 102.1 94.2 94.1 77.3 87.4 92.0 July 1929 106.9 82.9 62.8 69.9 62.7 75.2 75.0 May 1928 June 1928 July 1928 157.8 120.8 89.9 119.5 97.7 109.8 114.0 122.9 106.1 1U0.0 91.0 86.2 100.5 99.0 99.0 85.7 65.8 71.0 68.9 75.5 77.0 RETAIL TRADE U. S. (1) Department Stores ___ Chain Stores: Grocery ___________ 5 & 10 C ent___ ____ Drug ______________ Shoe ______________ 110. 106. 80. 107.2 103.4 78. 234. 166. 195. 144. 222. 153. 197. 161. 227. 146. 204. 120. 213.0 139.0 163.8 129.9 207.1 139.3 161.9 107.8 198. 128. 164. 116. WHOLESALE TRADE 6th DISTRICT Groceries _____________________ Dry Goods ------------------------------Hardware _____________________ Furniture _______ _____________ Electrical Supplies Shoes _________ _ Stationery ______ Drugs _________ TOTAL ________ 87.8 73.3 91.7 90.6 80.9 91.2 63.6 111.7 87.2 80.8 56.5 79.3 83.1 78.7 74.3 56.8 112.6 77.9 84.1 67.3 83.9 77.7 92.5 78.0 59.0 111.3 82.7 86.4 74.0 85.3 83.9 78.5 93.9 68.2 108.0 84.5 79.7 59.8 81.5 77.3 84.2 66.2 62.3 99.6 77.5 79.2 66.6 79.2 81.6 86.8 71.5 65.1 97.8 78.6 WHOLESALE PRICES U. S. (2) Farm produucts ____________ Foods ____________________ Hides and leather products... Textile products __________ Fuel and lighting Metals and metal products.. Building materials Chemicals and drugs-------Housefurnishing goods ___ Miscellaneous ALL COMMODITIES ___________ 102.2 97.7 106.8 94.2 81.1 105.2 96.8 94.2 96.7 79.6 95.8 103.3 98.9 108.0 93.3 83.3 105.1 96.4 93.4 96.6 80.4 96.4 107.6 102.8 109.2 92.8 82.0 105.0 96.7 93.4 97.2 81.3 98.0 109.8 101.2 126.3 96.6 81.8 £8.6 93.5 95.3 97.8 85.1 98.6 106.7 100.3 123.7 96.3 82.1 98.7 93.9 94.9 97.0 82.2 97.6 107.1 102.3 124.2 96.8 82.8 98.6 94.4 94.5 96.9 80.8 98.3 BUILDING PERMITS 6th DISTRICT Atlanta ______________________ Birmingham Jacksonville .. Nashville __ New Orleans Other Cities DISTRICT (20 Cities) 98.2 40.5 65.4 182.9 66.8 56.5 69.1 85.3 59.2 81.6 48.1 61.1 50.0 59.5 63.6 29.0 48.8 60.6 119.3 41.9 53.6 382.0 129.0 88.8 90.6 62.3 73.3 123.9 72.7 114.2 80.7 46.1 63.4 63.1 71.5 78.9 146.8 79.9 71.1 79.4 64.2 80.4 CONTRACTS AWARDED 6th DISTRICT 95.7 131.4 90.6 92.6 81.5 91.2 COTTON CONSUMED: United States ---------- --------------------Cotton-Growing States All Other States ____ Exports _____________ 131.5 144.4 103.1 50.9 112.2 123.6 87.0 50.3 107.5 117.1 86.5 38.6 113.7 126.6 85.1 96.2 100.4 112.2 74.5 74.5 86.3 95.0 67.2 55.6 PIG IRON PRODUCTION: United States ________ Alabama _____________ UNFILLED ORDERS—U. S. STEEL CORPORATION________________ 130.5 101.2 123.8 94.4 126.7 97.1 109.9 89.2 103.2 86.4 102.8 81.5 85.6 89.1 90.1 )ard. Statistics. Base 1926--100. 71.6 76.2 74.8
