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TH E M O NTH LY b u s in e s s Review Covering B usiness and A g ricultural C onditions in th e S ix th Federal Reserve D istrict. FEDERAL RESERVE BANK OF ATLANTA JOS. A. McCORD, Chairman of the Board and Federal Reserve Agent WARD ALBERTSON, Assistant Federal Reserve Agent VOL. 7 ATLANTA, GEORGIA, JANUARY 31, 1922 No. 1 GENERAL SUMMARY FOR UNITED STATES SIXTH DISTRICT SUMMARY Production and trade show no striking departures from the The year 1921 has proven to be a trying one for practically conditions prevailing at the time of the last report. At this all lines of business. Probably no single line of trade or in season there usually occurs a period of slackening in various dustry has escaped the continuous readjustments which began lines of manufacture and this has been true during the past in the late summer and fall of 1920, and continued well into month. Such recession as there has been does not, however, the summer of 1921. Prices which had continued to rise, ^o beyond the proportions to be expected at this time of the reached their peak in the summer of 1920, and began the de year. The Federal Beserve Board’s price index for Decem clines which were not arrested until June 1921, and before ber shows a reduction of only two points, as compared with a month earlier, while the United States Bureau of Labor the fall months of 1920 were passed the condition of business had been changed and the trend toward reckless expansion Statistics shows no change in its index. % On the productive side, interest has been largely centered • had #UQei^#definitely reversed. What amounted practically to about the iron and steel trade. The activity in that branch h, e.on£iim*erg’ ptrilgs was in effect. With demand lessened, marflftfacttli*itig cither slewed down or stopped until jobbers, of business has, on the whole, been slightly on the wholesalers and retailors were able to dispose of their stocks. the end of the year showing a slowing down due UT*the Wual inventory period, while during the first part of ^jfamiaTy bet There appeared a surpfosT M labor, in place of the shortage. substantial reductions in prices ter inquiry, particularly from railroads, has/ tended to in W^ges Legair te »decline, crease the volume of orders* on hand as well flti activity %i* ^rt* necess&rjr to move the large stocks of merchandise on hand. With unemployment cwn .the increase^ and wages of the plants. Demand for non-ferrous metals^^iffriftues quiet. In cotton and woolen textiles no material* (Change lias t^lTefi ennpfl&y^?f Voikrig dn *fhe decline, it was difficult to effect place but in other manufacturing lines there has beer., ii’ uny-.„ sal3L exempt* necessities, and at the end of 1920 many busi ness firms found it necessary to charge large amounts to thing, a moderate tendency toward improvement. Little change in crop conditions can be expected during the profit and loss accounts. Tihe rapid decline in the early fall winter season. Prices of staple farm products have, on the of 1920 in the price of cotton, the South’s principal money whole, about held their own with fair export demand. Minor agricultural crops, especially citrus fruits and sugar cane, crop, almost brought disaster to many farmers who found it necessary to carry over to 1921 much, if not all, of their 1920 have shown satisfactory yields. A slight increase in unemployment is attributable largely indebtedness. to seasonal recession and indicates no important changes in This was the condition of business at the beginning of 1921. the general demand for labor. Building operations have been The first six months of the year are now known to have been unusually well maintained, especially for this season of the year, being about double those reported for the correspond a period of further decline in prices and in business generally. In the case of necessities, there has been a fairly satisfactory ing month a year ago. Wholesale trade lines have shown great variation. Sharp volume of business throughout 1921, but at lower prices. Pur declines have occurred in dry goods and boots and shoes, while chases of luxuries have fallen off substantially. In the sum hardware sales, although not declining in as marked a degree, mer of 1921 both retail and wholesale prices became more have fallen off substantially. Groceries also show a lessened volume of demand. In the southern states declines in whole stable, and fluctuations since that time have been compara sale lines have been especially pronounced in dry goods and tively small. Generally, retail prices did not decline in pro shoes. The figures, however, make a distinctly favorable portion with wholesale prices. During all of 1921 buying by showing as compared with a year ago. In retail trade, buying both wholesale and retail firms has been limited to immediate demand in the manufacturing districts of the east and north requirements and stocks have been kept as low as possible. still shows improvement, while demand in the agricultural The agricultural situation in the South during the past regions of the west and south indicates sharp decrease as com year has been a rather complex one. The cotton crop was the pared with the corresponding period a year ago. T H E 2 M O N T H L Y B U S IN E S S R E V IE W shortest in twenty years, but fortunately the price increased While November 1921 salea were 21.4 less than those for Noand to some extent this offset the shortage in the crop. While vember 1920, sales in December 1921 were only 14 per cent, this increase did not result in prosperity to the farmer, it did smaller than sales by identical firms during December a year help greatly to improve the general business situation. Other ago. Comparison of sales from July 1 to December 31 shows crops were produced in satisfactory volume, but prices were that the business transacted during the six months period low and markets for most of them were lacking. was 20.6 per cent, smaller in dollar value than for the same Taking into consideration the different level of prices preperiod last year, a percentage only slightly changed from the vailing now as compared with a year ago, the statistics which November comparison. have been published in this Review regarding retail and wholeStocks on hand reported by these Department Stores were sale trade show a gradual improvement. Comparisons of salea 17.9 per cent, smaller at the end of December than at the for December 1921 with those for December a year ago show close of business for November, showing that merchants deup much more favorably than was the case six months ago. sired to have inventories at the end of the year as small as While the mild winter has affected sales adversely in many possible. Stocks December 31, 1921, were only 5.3 per cent, lines, it has made possible the carrying on of active building smaller than on the same date in 1920. The relation of average campaigns, and many of the cities in the District report in- stocks on hand at these stores at the end of each month durcreased value of permits issued in comparison of those of last ing the last half of the year to sales during this same period winter, and many workers in the building trades have been was a little more than four to one, as shown by the statement kept employed who would otherwise have been out of work. which follows. Unemployment in this District is gradually declining, and There are a number of factors which have operated against public improvements and other projects are expected to fur- any substantial increase in retail trade. Unseasonably warm nish employment to many. The iron and steel industry is weather has been the rule, rather than the exception, in most gradually resuming operations, thirteen furnaces now being parts of the District so far this winter, and has removed the in blast as compared with eight in operation six months ago. usual incentive to buy winter clothing, shoes,, etc. The conTextile manufacturing in this District has shown mueh im- tinuance of unemployment, even though improvement is noted, provement during the last six months, and i««*itow* ^.•muel^ • makes it impossible for many workers to buy anything better shape than at this time last year. * I •••*••*••! bu/ absolute necessities, and the belief generally prevailing ------------ *tUgirRetail prices have not declined in the same proportion RETAIL TfiAj3p# with at wholesale encourage the hope that further reReports received from thirjy«f\ur repre^nt^ffive* Depart* • d&ctionS* be made. After-holiday clearance sales have ment Stores for the month JDecember reAe<*C T i$oved a * eop^derable amount of merchandise, and reports tion which the holiday season%always produces, but otherwise generally indi«^fce„ that business has shown improvement since indicate little improvement in retai>Vti&fl£ *f0r month. the turn.of £he yier. ••• • • ..! ..* • • • • • ? ♦ «*? *• M • w• ; CONDITION OF RETAIL TRADE DURING DEMEMBER, 1921 Federal Reserve District No. 6 As Reflected by Reports of Thirty-four Representative Department Stores 1-A. Sales during December 1921 compared with December 1920 -------------------Sales July 1 to December 31, 1921 com 1-B. pared with same period 1920 ______ 2-A. Stocks December 31, 1921 compared with stocks December 31, 1920 __________ 2-B. Stocks December 31, 1921 compared with stocks November 30, 1921 __________ 3. Relation of stocks July 1 to December 31, 1921 to sales for same period______ 4. Relation of outstanding orders December 31, 1921 to total purchases in 1920 _ N o te . O th e r C it ie s in c lu d e c it ie s in Atlanta (3) Birming Jackson ham (3) (4) Nash ville (4) New Orleans Savannah (5) (3) Other Cities (12) District (34) —17.0 —30.1 —4.8 —3.7 —13.4 —24.7 —19.5 —16.8 —24.6 —32.2 —13.1 —12.8 —15.4 —26.1 —22.8 —20.5 —7.8 +2.2 —5.2 —9.8 —8.1 4-11.7 —6.4 —5.3 —25.0 —10.8 —20.2 —15.8 —22.0 —9.0 —14.5 —17.9 470.6 490.0 X 441.3 392.4 569.7 448.9 435.4 3.0 3.3 X 4.5 8.0 2.2 2.1 5.0 w ere re c e iv e d . th ia F e d e r a l R e s e r v e D is tr ic t fro m w h ic h fe w e r th an th re e re p o rts T H E M O N T H L Y B U S IN E S S WHOLESALE TRADE Sales by wholesale firms which reported to the Monthly Business Review for the month of December reflect continued improvement, although there was possibly some slowing up on account of the inventory period. In dry goods and shoes, the principal seasonal lines under investigation, December busi ness was substantially less than during November, but the com parison with December 192*0 is much more favorable, an in crease of 37.4 per cent being shown in December wholesale shoe sales over those for the same month in 1920, and a de crease of only 8.3 per cent in Dry Goods in December com pared with those of a year ago. In groceries, hardware, fur niture and drugs the decreases in December sales compared with those during November were small, and stationery and farm implements showed increases of 30 and 43.7 per cent respectively over November sales in those lines. A majority of the reports received indicate that retailers were buying in December* as in previous months, for imme diate requirements only, and with a view to having small stocks at the time of taking their end-of-the-year inventory. Some of the reports state that the failure of the retailers to follow the downward trend of wholesale prices is tending to curtail buying by the ultimate consumer. Orders, as a rule, are being accepted by wholesale grocery concerns only for immediate delivery. Merchants are coming more and more to realize that costs and margins of profit must be reduced to meet the reduced demands for merchandise. Probably the most outstanding feature in the business sit uation in this District is the lack of buying on the part of the farming classes, caused in a great measure, if not en tirely, by the short cotton crop, the disposition which has prevailed for several weeks to hold for priee recovery the cotton not already disposed of, and the low prices and lack of profitable markets for other agricultural products. Farmers R E V IE W 3 are unable to liquidate their obligations at banks or supply houses. Many retail concerns, especially in the smaller towns, would be buying except for the fact they are unable to ob tain additional credit. The farmers, inability to buy, there fore, is having its effect all through the business life of the District in retarding the progress of all lines of trade. Weather conditions have also been a deterring factor this winter. The District has experienced little cold weather, and business in winter clothing has suffered on this account. Home building campaigns have been carried on, however,, without se rious interruption by cold weather, and this has had a fa vorable effect on the business of furniture houses. The statement following shows in detail the comparisons of sales by reporting wholesale firms in December 1921 with sales by the same firms in November, and in December 1920. Some of the lines under investigation show increases over sales for the corresponding period in 1920, and the decreases shown by other lines reflect a more favorable volume than has been the case in preceding months, and comments made by reporting firms indicate conclusively that business conditions generally are on the mend. Improvement in collections is reported by an increasing number of firms. The result of a comparison of the sales for the year 1921 with those for 1920 by those reporting firms whose figures are on file for all months of these two years, is shown in the table immediately following, which indicates the number of firms in each of the four lines which have reported for this period, and the relation which their 1921 sales bear to those of 1920. Wholesale Groceries (14 firms) ________________ -^-41.5% Wholesale Dry Goods (17 firms)_____________ — —42.7% Wholesale Hardware (17 firms) _______________ —37.7% Wholesale Shoes (7 firms) ------------------------------ —37.4% CONDITION OF WHOLESALE TRADE—DECEMBER, 1921 Sixth Federal Reserve District Comparison of Sales during December, 1921, with Sales during November, 1921 A tlanta-------------------------Jacksonville------------- -------Knoxville ----------------------- _ __ Meridian ----------------------_ Nashville _ ---New Orleans - — —-----Vicksburg---- _ _ ____ Other Cities _ _ _ _ _----------District _ _ •Number of reports.------- Farm Groceries Dry Goods Hardware Shoes Furniture Implements Stationery (29)* (21)* (22)* (12)* (6)* (4)* (9)* —7.5% —40.4% —14.1% —57.9% X —3.8% X +2.5% X X X X X X —45.5% X X X X X X —4.7% X +1.9% —8.4% —7.9% —1.8% X X —42.7% X X —10.2% —7.7% X X X —29.9% r —39.2% —8.9% I K W i X —19.7% * u X X X X X X X X X X X X X X X X X X -^88.7% —5.9% —45.4% * v V 4% Drugs (3)* +43.7% +43.7% +30.0% +30.0% X —9.6% —9.6% 4 T H E M O N T H L Y B U S IN E S S R E V IE W Comparison of Sales During December 1921 With Sales During December 1920 A tlanta------------ -------------------Jacksonville__________________ Knoxville - ___________________ Meridian -----------------------------Nashville ________ ___________ New Orleans ------------------------Vicksburg___________________ Other Cities__________________ District_____________________ *Number of Reports. (29)* —29.1% —20.3% x —21.7% x —22.1% —14.6% —17.1% —21.2% (21)* +15.0% x —11.2% x +13.6% Farm ffardware Shoes Furniture Implements Stationery (22)* (9)* (12)* (6)* (4)* +6.4% +31.7% +128.5% X X X x* X X X X X X X X X X X X X X X X +310.7% X X X X X X X X X X X X X +39.6% +37.4% +7.8% +37.7% +4.6% -23.7% —2.3% —9.9% WORLD COTTON CROP Information compiled and published by the United States Department of Agriculture shows the estimate by that De partment of the world production of commercial cotton for the year just ended to be 15,593,000' bales. This is reported to be the smallest crop since 1900, when the Department be gan publishing world figures, and compares with 20,650,000 bales in 1920, and with a ten-year average of 20,773,000 bales of 500 pounds weight. Two of the most important countries from a commercial standpoint, the United States and Egypt, which furnish the principal supply of cotton for American and European spin dles, had last year what would be considered under normal condition?, crop disasters. These countries, with estimates of 8,340,000 and 684,000 bales, respectively, will produce only 61.4 per cent of their total production last year, or 5,667,000 bales less than was produced in 1920. The cotton crop in China, South America, Mexico and other countries, while not so important commercially, is smaller than usnial. Russia, which immediately before the war produced around 1,500,000 bales annually, has practically ceased to grow cotton. India produces more cotton annually than any country in the world outside the United States. Average annual production for the past eleven years was about 3,600,000 bales grown on a little more than 22,000,000 acres. A small portion of the cotton acreage is under irrigation, but the greater part of the crop is planted following the annual monsoons, receiving usually but little moisture afterwards. Reduced consumption occasioned by the inability of Russia, Turkey and many other countries in Europe and throughout the world to buy cotton cloth since the war, forced the clos ing down of spinning and weaving establishments in the prin cipal manufacturing countries last year. This in turn cur tailed the demand for raw cotton, and prices were forced down in the United States below the cost of production. Confronted with a large carry-over, American farmers last year reduced the acreage planted to cotton, and production X X X —16.5% —8.3% Drugs (3)* —34.7% —34.7% +29.9% +29.9% +3.0% +3.0% was further reduced because of the small amount of fertilizer used in making the crop, and as a reault of the ravages of the boll weevil over practically the entire belt. Unfavorable weather during the growing season prevailed over much of the cotton belt in the United States. Much the same condi tions existed in Egypt. Following is a table showing the cotton production in the principal cotton-growing countries for 1921, compared with the two preceding years and with the year before the outbreak of the war, 1914: .. Cotton Production in Principal Cotton-growing Countries (Bales 478 Pounds Net) 1914 1919 1920 1921 Country—• (Bales) (Bales) (Bales) (Bales) United States 16,135,000 11,421,000 13,440,000 8,340,000 Mexico 130,000 362,000 205,000 165,000 Brazil 460,000 560,000 431,000 560,000 Peru 107,000 172,000 157,000 146,000 4,000 Argentina 15,000 16,000 26,000 British India 4,167,000 4,637,000 2,845,000 3,623,000 38,000 94,000 105,000 Japan and Korea 120,000 784,000 1,150,000 1,868,000 1,650,000 China 1,309,000 440,000 90,000 Russia 50,000 54,000 British Africa 60,000 75,000 81,000 1,337,000 1,154,000 1,251,000 Egypt 684,000 1,000 4,000 Australia 1,000 155,000 160,000 150,000 All others 150,000 Total 24,675,000 20 ,221,000 2’0,650,000 15,593,000 MOVEMENT OF COTTON (BALES) RECEIPTS—PORTS: Dec. 1921 Nov. 1921 New Orleans 122,068 157,354 Mobile 8,866 12,847 Savannah 58,836 69,975 Dec. 1920 249,494 20,650 55,62*3 T H E M O N T H L Y 37,585 45,546 4,980 5,417 7,231 19,078 8,232' 48,399 2,788 5,865 3,856 15,910 SHIPMENTS—PORTS: New Orleans 217,714 Mobile 8,250 Savannah 68,119 153,899 14,149 84,895 211,095 17,056 66,765 31,079 35,722 1,594 4,955 4,814 12,006 14,684 24,575 1,375 2,301 2,219 7,679 SHIPMENTS—INTERIOR TOWNS: Atlanta 20,418 Augusta 26,877 Jackson 1,130 Meridian 2,296 Montgomery 1,838 Vicksburg 16,926 U. S. Census Bureau (In Bales) Dec. 1921 Nov. 1921 Cotton Consumed: Lint ___________ 511,800 526,610 Linters __________ 41,698 53,257 On Hand in Consuming establishments: 1,648,216 Lint ___________ 1,737,771 Linters __________ 167,862 152,840 In Public iStorage and at Compresses: 5,271,451 Lint ____ _____— 5,177,266 176,689 L in te rs.... ........ ...... 171,303 Exports: Lint ___________ 635,421 630,140 Linters __________ 4,394 18,555 60,996 51,440 Im ports_____________ Active Spindles______ 34,488,640 34,387,008 Dec. 1920 295,292 27,287 1,251,122 238,311 5,623,646 337,198 785,379 3,199 25,890 29,914,154 Cotton Growing States STOCKS—PORTS: New Orleans! Mobile Savannah 339,114 16,802 167,444 STOCKS—INTERIOR TOWNS: 61,732 Atlanta 145,330 Augusta 14,393 Jackson 18,352’ Meridian 31,824 Montgomery 13,714 Vicksburg 434,760 16,563 176,727 51,170 143,365 14,004 17,907 31,982 14,284 451,626 18,443 149,628 31,258 163,821 11,451 13,142 32,584 10,432 COTTON GINNED A report issued by the Census Bureau gives the amount of cotton ginned in the United States prior to January 1, 1922, as 7,884,272 running bales*, including 123,320 round bales, counted as half bales. 30,093 bales of American-Egyptian, and 3,106 bales of Sea Island cotton. The figures show that in the Sixth District 2,802,659 bales had been ginned prior to January 1, 1922. According to the statement, 243,402 bales of cotton were ginned during December, of which 65,036 bales were ginned in the Sixth District. Ginnings to January 1. Tot. Sixth Dis. Other States 5 R E V IE W COTTON CONSUMPTION DEMEMBER, 1921 RECEIPTS—INTERIORTOWNS: Atlanta 30,980 Augusta 37,953 Jackson 1,485 Meridian 2,741 Montgomery 1,680 Vicksburg 23,428 Alabama Florida Georgia Louisiana Mississippi Tennessee B U S IN E S S 1922 584,335 12,098 817,263 281,773 811,830 295,360 1921 632,300 18,224 1,365,314 369,982 821,382 261,412 1920 680,459 17,515 1,637,738 291,222 823,082 239,876 1919 750,687 2*7,071 1,951,185 523,812 1,501,201 281,571 2,802,659 5,981,613 3,468,614 8,086,034 3,689,892 6,319,028 5,035,527 5,738,336 7,884,272 11,554,648 10,008,920 10,773,863 Total U. S. Dec. 1921 Cotton Consumed ------- 304,825 On Hand in Consuming Establishments! ---- 922,991 In Public Storage and at Compresses ---- 4,807,823 Active Spindles ----------15,509,256 Nov. 1921 322,734 Dec. 1920 193,385 877,040 622,074 4,930,850 15,499,127 5,266,147 14,482,640 CITRUS FRUIT The production of citrus fruit for the 1921-22 season is* es timated by the Agricultural Statistician of the United States Bureau of Markets and Crop Estimates to be 13,600,000 boxes, compared with 13,200,000 boxes last season and 12,500,000 boxes in 1919-20. It is estimated that the orange crop will amount to 8,200,000 boxes, compared with 8,100,000 boxes last season and 7,000(,000 boxes the reason of 1919-20, and 5,400,000 boxes of grapefruit, compared with 5,100,000 boxes last sea son and 5,500,000 boxes the season of 1919-20. The yield per 100 trees for the present season is estimated at 196 boxes of oranges and 284 boxes of grapefruit, the quality of both being given at 89 per cent. There are approximately 4,175,000 bear ing orange trees, and 1,900,000 grapefruit trees of bearing age. In the storm-swept territory production this year will run be low that of last season, and production in some sections of the East Coast was curtailed by dry weather early in the summer. Picked groves, however, are showing heavier production than was estimated and the crop of late fruit, especially of oranges, is larger than usual. There has been a slight advance in the price of oranges during the month, and sellers are reported un willing to accept orders at pevailing prices except for im mediate shipment. The movement of both oranges and grape fruit has been more rapid this season than last, 8,158 carloads of oranges and 5,091 carolads of grapefruit having moved from the State to December 31st, compared with 7,592 cars of oranges and 4,291 cars of grapefruit moving to the same time in 1920. These figures do not include shipments by water routes. 6 T H E M O N T H L Y B U S IN E S S Statement of Car Lot Shipments of Citrus Fruit and Vegeta bles From Florida During the Month of December: Month of December 1921 Grapefruit ____ 1295 Oranges ______ 5296 Cabbage --------13 0 Celery ________ 468 Lettuce ______ Peppers --------24 Tomatoes--------31 Vegetables ---- — 91 1920 1141 3882 9 7 816 0 12 60 Season totals to December 31st, inc. 1920 1921 4291 5091 7592 8158 9 13 0 7 504 1036 40 1 31 12 91 209 SUGAR Ideal weather has prevailed in Louisiana throughout the fall for harvesting and grinding of sugar, and for increasing the yield of sugar in the cane. Grinding operations have been about completed, except in the cases of large factories. The sugar crop of 1921 was the largest and the yield the highest in several years. The acreage is reported to have been about 60 per cent larger than in 1920, and the yield is estimated as the highest since 1911. Sugar producers planted larger acreages in sugar in 1921 with the hope of retrieving some of the losses of 1920, but the market has been a little disappointing. Stocks are considerably lower than at this time last year. Sugar Production Production of: 1921 Sugar (Short tons) ___ 267,000 Syrup (gals) ________ 7,053,000 Molasses (gals) ______ 22,568,000 Cane used for: Sugar, short tons ____ 3,671,000 Syrup, tons __________ 349,000 Acreage. Sugar _____________ 2i09,00!0 Syrup _____________ 21,500 Seed ______ -_______ 57,600 Total acreage____ 288,100 Yield: Tons of cane per acre---18 Pounds sugar per ton of cane---------142 1920 169,127 4,639,885 16,856,867 1919 121,000 3,672,000 12,991,000 2,492,524 224,205 1,883,000 196,000 182,843 18,297 67,152 268,292 179,900 18,724 76,376 275,000 13.6 10.5 ---------------- ----- Movement of Sugar (Pounds) Receipts: Dec. 1921 New Orleans ___--49,585,673 Savannah ________ 9,341,112 Meltings: New Orleans ____ 46,573,231 Savannah ________ 9,341,112 Shipments: New Orleans ------0 Savannah —---------0 Nov. 1921 60,277,462 15,437,120 50,969,217 18,701,120 6,817,708 0 Dec. 1920 16,126,800 21,508,466 R E V IE W Stocks: New Orleans ------- 7,076,738 Savannah ________ 0 3,968,296 0 13,590,386 8,194,295 RICE The total production of rice in Louisiana during 1921 is estimated at 16,560,000 bushels* as against 25,200,000 bushels in 1920, and 18,550,000 bushels in 1919. The acreage planted to rice in 1921 was only 480,000, as against 700,000 acres in 1920. The quality averages 86 per cent of normal, compared with 90 per cent last year, and the average price in Louisiana on the first of December 1921 was 83 cents, compared with $1.10 on .the same date in 1920. Louisiana produced more rice than any other state, Arkansas being next in quantity with 6,688,000 bushels,, raised on 125,000 acres. The export demand has continued to improve and has offset the light domestic demand for rice. Rough Rice (Sacks) Port of New Orleans Receipts ___________ Shipments _________ Stock _____________ Left-over from last season Dec. 1921 193,487 159,648 69,664 24,158 Nov. 1921 83,941 85,581 35,825 24,158 Dec. 1920 131,886 173,736 ;58,082 6,428 Clean Rice (Pockets) Port of New Orleans Receipts ___________ Shipments __________ Stock _______________ Left-over ___________ Dec. 1921 315,233 277,821 171,450 89,691 Nov. 1921 198,314 215,978 134,038 89,691 Dec. 1920 355,309 228,537 415,570 173,428 Receipts of Rough Rice (Barrels) Dec. 1921 Association Mills ____ 518,837 New Orleans M ills____ 193,487 Outside Mills ......... ....... 173,059 885,383 Tot. this Same time season last season 2,918,082 839,856 933,559 4,691,497 5,633,515 Distribution of Milled Rice Tot this Same time Dec. 1921 season last season Association Mills ------- 494,152 2,503,777 New Orleans M ills------- 148,812 804,529 Outside Mills ________ 116,600 729,724 759,564 4,038,030 3,319,400 Stock (Rough and Milled) Jan. 1, 1922 Same time last year 4,062,543 Association Mills ------- 760,823 12,260,017 New Orleans M ills------- 214,251 Outside Mills ------------ 283,380 0 1,258,454 2,922,698 0 T H E M O N T H L Y Foreign Trade in Rice—United States (Pounds) B U S IN E S S R E V IE W 7 one year ago. Banks in Alabama, Florida and Tennessee re ported smaller savings, and in Georgia, Louisiana and Mis Tot. this Same time sissippi larger savings were reported, the net average increase Nov. 1921 season 1920* for the District being one-half of one per cent. IMPORTS: While actual preparation for the coming crop season is not Rough. R ie e ______ 1,175,393 2,914,919 10,860,509 Clean Riee ---------- 5,254,289 25,244,062 21,169,850 yet under way, plans are being made to produce crops with a 79,100 Brewers Riee ____ 356,326 449,647 minimum of expense. This was done very generally through out the District last year,, but with the small crop of cotton, EXPORTS: and the lack of market for other products, there are still a Foreign Riee ------- 3,531,665 17,577,048 24,697,447 great many farmers laboring under the burden of a large part Domestie R ice____ 34,099,644 191,261,054 60,868,479 of their 1920 debts, as well as their 1921 obligations. The past season’s crops were produced with less outlay of money, FINANCIAL perhaps, than any previous crop, and efforts were made to The volume of business transacted in fifteen clearing house reduce indebtedness wherever it was possible to do so. The cities of the Sixth Federal Reserve District, represented by large production of foodstuffs has enabled a large number of debits to individual accounts during the four weeks ended farmers to improve their position who would under other con December 28th compared less favorably with the total for ditions have been compelled to seek further accommodation. the United States than did figures for the preceding four weeks. The total for this district for the December period DEBITS TO INDIVIDUAL ACCOUNTS AT FIFTEEN was $706,336,000, and was 16.5 per cent less than the total CLEARING HOUSE CITIES of $845,805,000 for the same four weeks of 1920. The total of debits for the United States for this same period reflects Sixth Federal Reserve District a decline of only 11.4 per cent in 1921 as compared with 1920. Four weeks Four weeks Increase For the period ended November 30, figures for the Sixth Dis ended ended or trict published in the December Review reflected a decrease Dec. 28,1921 Dec. 29,1920 Decrease of only 10.1 per cent, while figures for the United States were 17.3 per cent smaller than for the same period in 1920. These ALABAMA: Birmingham ---- 58,050,000 68,457,000 —15.2% figures represent actual payments by check against individual Mobile ______ ---- 24,663,000 29,393,000 —16.1% accounts in the fifteen clearing house cities of the district. Montgomery ---- 15,187,000 16,090,000 5.6% Figures reported by forty-three member banks in selected cities of the District show a decline of $2,505,000 in total FLORIDA: Jacksonville ---- 40,914,000 50,978,000 —19.7% loans and investments on December 28, 1921, as compared with Pensacola ---- 5,748,000 7,144,000 —19.5% November 30, 1921, and a decline of $100,292,000 as compared Tampa ______ ---- 21,998,000 23,081,000 — 4.7% with December 24, 1920. The December 2'8, 1921, total of GEORGIA. loans and investments of the forty-three banks was $445,093,Atlanta _____ ---- 101,637,000 102,867,000 — 1.2% 000, 18.4 per cent less than the figure for December 24, 1920. Augusta _____---- 25,748,000 25,963,000 0.8% Demand deposits reported by the same banks on December Maeon ---------- .. 16,757,000 19,607,000 —'14.5% 28, 1921, were $213,528,000, or $102,000 smaller than on No -Savannah_____ —J- 42,600,000 50,926,000 —16.3% vember 30, and 8.5 per cent* or $21,010,000 smaller than the total of $234,538,000 held on deposit subject to check in these LOUISIANA: New Orleans . ---- 234,947,000 292,350,000 —19.6% banks on December 24, 1920. The total of bills discounted for member banks and bought MISSISSIPPI: Vicksburg ___ ... 6,512,000 6,194,000 + 5.1% in the open market by the Federal Reserve Bank of Atlanta declined from $138,567,392 on December 2’8, 1920, to $98,070,353 TENNESSEE: Chattanooga ---- 31,860,000 42,733,000 —25.4% on December 28, 1921. This was slightly in excess, however, Knoxville ___ _ _ 23,457,000 26,225,000 —10.6% of the total of $97,295,076 on November 30, 1921. Federal Nashville _____ 56,2*58,000 83,797,000 —32.8% Reserve Notes of the Federal Reserve Bank of Atlanta in Total 6th District__ - 706,336,000 845,805,000 —16.5% actual circulation December 28th, 1921, were $123,387,055, —11.4% compared with $119,798,975 on November 30, 1921, and with Total United States- -32,760,959,000 36,994,516,000 $176,420,890 on December 28, 1920. Seventy-eight banks rendered reports direct to the Monthly ACCEPTANCES Business Review showing their Savings Deposits at the end of December, compared with the preceding month and Of twenty-one reports regarding acceptance transactions with the corresponding date one year earlier. In all of the during December 1921 received from accepting member banks six states savings deposits were larger on December 31st, in this District, eleven reports showed no transactions in ac 1921, than on November 30, 1921, the net average increase ceptances of any kind during the month. Nine reports showed being 1.5 per cent. For the District, there is little difference amounts of domestie acceptances executed during December in the total for December 31st, 1921, and for the same date aggregating 5.7 per cent more than during November, but 8 T H E M O N T H L Y B U S IN E S S 5.6 per cent less than during December 1920. Foreign ac ceptances executed during December 1921 were approximately 34 per cent greater in amount than during November 1921, but about 14 per cent less than during December 1920. Acceptances purchased in the open market during December 1921 by the Federal Reserve Bank of Atlanta were larger by 64.8 per cent than during the preceding month, and were 33.5 per cent in excess of the total for December 1920. Except for September and October 1921, this total for December is larger than for any month since April, 1920. FAILURES The year just ended records the largest total amount of insolvencies! on record, and, with one exception, the largest number of failures. The number of failures during 1921 was 19,,652, compared with 8,881 failures in 1920, and the total liabilities in 1921 were $627,401,883, compared with a total for 1920 of $295,121,805. Only in 1915, when 22,000 failures were recorded, has the 1921 number been exceeded. The max imum of liabilities prior to 1921 was in 1914 when the total was $358,000,000. While there was an unusually large num ber of large failures, the average of liabilities is slightly less than that of 1920. In the Sixth District the year 1921 re corded 1944 failures with liabilities totalling $43,477,704, com pared with 597 failures, for $9,349,352, in 1920. Both the number and total liabilities! for December 1921 were larger, in the United States and in the iSixth District, than those for December 1920. December liabilities were large rthan those for November by 63.5 per cent in the Sixth Federal Reserve District, and 63.6 per cent in the United States, and the increase compared with December 1920 for the Sixth District was 94.1 per cent, and for the United States 48.6 per cent. The number of failures in the Sixth District in December was smaller than for November by 6.9 per cent, but larger by 46.1 per cent than for December 1920, while for the United States the December number was 22.9 per cent larger than for November, and 60.3 per cent larger than for December 1920. An important factor in connection with the large number and amount of liabilities during 1921 is the fact that during the inflation of the war period and immediately following, commonly considered a period of large and easy profits, there were many firms formed with small capital and little ex perience, and these were the first to fail when the readjust ment set in. The effects of the general slowing down of busi ness in all lines, and the consequent reduction in buying power, have been far reaching, and have not yet entirely disappeared, although conditions are gradually improving. R E V IE W Dec. 1921 Comparison Dec. 1921 with Nov. Nov. 1921 1921 Comparison Dee. 1921 with Dec. Dec. 192*0 1920 NUMBER: Sixth District -- 190 204 — 6.9% 130 1988 -J-22.9% 1525 United States —2444 LIABILITIES: Sixth Dist. $ 6,066,401 $ 3,711,262 -[-63.5% $ 3,125,655 U. S. 87,502,382 53,469,839 -+63.0% 58,871,539 +46.1% +60.3% +94.1% -|-48.6% IMPORTS AND EXPORTS—UNITED STATES Statistics! issued by the Department of Commerce of the United States show the total value of imports into the United States during the year 1921 was $2,508,452',065, or 52.5 per cent smaller in dollar value than the total value of imports for the year 1920, which was $5,278,481,490. For the month of December the total imports are shown as $236,800,000. This is an increase of 12.1 per cent over the November figure, al though 11 per cent below the figure for December last year, $266,057,443. The value of exports for December was $295,900,000, com pared with $720,286,774 for December 1920, showing a de crease of 58.9 per cent. Exports for December were one-tenth of one per cent larger than during November. For the year 1921, total exports from the United States were $4,484,766,889, or 45.5 per cent lower than the total of $8,228,016,307 for the year 1920. The excess of exports over imports for December 1921 was $59,100,000; for December 1920, $565,229,331; and for the year 1921 the excess of exports over imports was $1,976,314,82*4, and for the year 1920 $2,949,534,817. Exports for December were smaller than for any month of the year excepting November, and the figure for imports for December was larger than for any month in the year except March and April. Port of New Orleans Merchandise to the value of $6,788,624 was imported dur ing the month of November through the port of New Or leans. This figure does not include any Cuban sugar, as no sugar was imported from the Island during that month, a condition quite unusual for this season of the year. These re ceipts were $1,300,000 greater than receipts during October 1921, and a still greater increase over the September figure. For the first time in a number of years, such items as tin, print paper and olive oil are listed among the important arti cles of import. Large increases occurred over October im ports in coffee, burlaps, and mineral oil, although the last named article showed a decline as compared with figures for November 1920. Comparison of the volume and value of important articles of import for November 1921 and No vember 192*0 follows: T H E M O N T H L Y B U S IN E S S November 1921 November 1920 Volume Value Volume Value Coffee—pounds 26,092,549 $ 2,772,990 12,289,037 $ 1,368,662 Burlaps—lbs. 13,734,096 1,100,251 6,346,655 759,721 Mineral Oils—gals 72,609,000 815,794 89,733,244 999,517 Creosote Oils—gals 896,000 38,608,000 — — Sisal—tons 3,640 249,747 4,890 561,061 Bananas— Bunches 1,818,407 608,937 1,647,791 72'9,721 Cocoanuts 2,539,494 76,575 2,336,500 83,213 Printing Paper—lbs. 920,568 30,658 — — Tin—lbs. 1,142,820 285,705 — — Wood pulp— Tons 1,100 46,802 — — Mahogany—ft. 816,000 87,962 2,488,000 303,062’ Olive Oil— Gals 16,755 32,597 — — Molasses—gals 980,000 19,600 2,315,000 149,500 *iSugar—lbs 7,730,100 194,195 11,823,940 1,276,981 *1921 figures show Sugar importations at New Orleansi dur ing November from Honduras, no sugar having been re ceived during that month from Cuba. The total value of imports during November 1921 compares with imports for November of preceding years as follows: 1921 _______________________ $ 6,788,624 1920 ______ _____ 8,317,750 1919 __________________ 20,670,304 1918 _______________________ 9,933,487 1914 _______________________ 5,241,126 Grain exports from the port of New Orleans for the month of December amounted to 5,291,974 bushels, compared with 5,067,830 bushels exported during December 1920. This total for December 1921 is comprised of 1,352,459 bushels of wheat, 3,798,448 bushels of corn, 40,825 bushels of oats, and 100,242 bushels of rye. A larger quantity of wheat, but a smaller quantity of corn, was exported in December 1920, the figure for that month being comprised of 4,684,529 bushels of wheat, 107,810 bushels of corn, 21,495 bushels of oats, 211,139 bushels of barley, and 42,857 bushels of rye. For the season, July 1 to the end of December, total grain shipments for New Or leans amounted to 32,346,368 bushels, compared with 41,608,519 bushels for the same period of 1920. The steady growth of exports of grain from New Orleans. 1921 1920 1919 49,589,787 12,677,755 Wheat ______________ 55,903,904 Corn_______________ 13,757,818 1,244,282 1,060,292 598,315 906,960 5,788,181 O a ts_______________ Barley______________ 831,439 6,203,382 7,011,668 Rye _______________ 1,079,227 237,857 0 Total ___________ 72,170,703 58,182,268 26,537,896 The tonnage of vessels entering and clearing at the port of New Orleans during 1921 was 10,887,968, or 14.5 per cent larger than in 1920, and 64.7 per cent larger than in 1919. Of for this total, 5,588,970 represented American vessels and 5,Digitized FRASER R E V IE W 9 298,998 represented foreign vessels. The first direct ship ment of tea in large quantities from Japan was received at New Orleans in December. The shipment consisted of 1,200 chests. Other large bookings are reported. Coffee records at New Orleans were broken in December, when 13 ships brought 500,000 bags into port, valued at $7,000,000. The reduction of 25 per cent in freight rates on iron and steel manufactured articles from Chicago, Milwaukee, Kansas City, Pueblo and allied territory to New Orleans and Gulf Ports is expected to increase the shipment of these commodities through these ports. An issue of bonds amounting to six millions of dollars was sold during December, the proceeds to be used for port improvement. The Government Barge Line on the Mississippi River during December 1921 carried cargoes exceeding by 15,000 tons the total carried for any other month since the line has been in operation. It is estimated that approximately 165,000 bales of cotton were shipped on this line between Memphis and New Orleans during 1921. LUMBER The Southern Pine Market has passed through a period of seasonal inactivity, due to the holiday season and inventory taking. Winter weather is interfering in some parts of the District with mill and logging operations, and the seasonal de cline in building, though not great, has had some effect on lumber manufacturing. Of seventy-eight mills reporting their operating time to the Southern Pine Association for the week ended December 30*, twenty-two were shut down. This is not unusual during the holiday season. Of the fifty-eight mills in operation only six operated full time, twelve operated five days, seventeen operated four days and seventeen three days, and four mills operated only two days during the week. Actual production for the week, reported by 132 mills, was 45 per cent below normal production, shipments were 46.86 per cent below normal production, and orders were 46.15 per cent below normal production. Correspondents state, however, that the first part of January has seen quite an appreciable increase in orders being received, and some increase in prices. Stocks on retail yards are said to be rather low and require replenishing. Following are shown statistics for mills reporting to the Southern Pine Association for December comparatively with November. December 1921 November 1921 117 Mills 123 Mills Orders __________________ 228,412,667 ft 270,398,021 ft Shipments _______________ 248,346,779 ft 312,901,889 ft Production ______________ 284,834,989 ft 298,703,651 ft Normal production these mills 333,901,127 ft 337,901,775 ft Stocks, end of m onth______ 797,433,127 ft 798,701,239 ft Normal stocks these mills------896,842',859 ft 949,938,471 ft Unfilled orders end of month—156,775,680 ft 186,453,432 ft BUILDING Building statistics for December 1921 for.most of the cities in this District for which these figures are gathered, compare favorably with figures for December 1920. At most of the cities inceases in substantial amount are shown as compared with permits issued in December last year. Some of the de 10 T H E M O N T H L Y B U S IN E S S creases are caused by large single items in December 1920 which were not overcome in the same month this year, while the increases in some instances! are largely due to permits is sued for the construction of residences. The campaigns of home construction in the larger cities are being retarded only slightly at some points by reason of weather conditions, but the lower cost of building has made it attractive to many who last year felt they could not afford to build. The efforts be ing made to relieve unemployment may have some effect on the volume of building. Following is a comparison of the number and value of residences for which permits were issmer in De cember 1921 at some of the more important points, compared with December 1920: ALABAMA: Anniston __ ___ Birmingham — _ Mobile _ ___ Montgomerv _ FLORIDA: Jacksonville Miami _ _ Orlando _ __ _ - — Pensacola __ ___ St. Petersburg Tampa GEORGIA: Atlanta Augusta Columbus Macon __ _ _ _ . _ Savannah __ LOUISIANA: New Orleans ___ MISSISSIPPI: Meridian _ _ _ _ _ _ Vicksburg ___ TENNESSEE: Chattanooga _— Johnson City Knoxville ~ — Nashville _ — — - R E V IE W Residence Permits December 1921 Number Value Atlanta 76 $233,425 Birmingham 100 197,300 17 42,850 Chattanooga 43 161,850 Jacksonville 32 • 103,020 Knoxville 60,500 19 Nashville New Orleans 97 409,350 79,975 35 Tampa December 1920 Number Value 23 $54,100 21 43,500 1 1,000 18 48,100 15,000 18,000 84,950 68,175 8 3 33 28 BUILDING—DECEMBER, 1921 Repairs and Alterations Value No. New Buildings No. Value Total Dec. 1921 Total Dec. 1920 4,650 294,270 23,200 700 7,850 219,455 24,900 11,787 2,000 10 275,300 616,400 115,351 54,340 111 137,354 56,593 99 37,942 133 ICombined) 5,423 39 (Combined) 137 29 513,963 45,192 25 33,102 27 49,050 138 50 4 67,281 1,430 123 23,185 1 1,000 30 72 10,252 17,865 3,200 25,185 1,700 11.087 4 131 14 206 61,529 52 41,300 16,545 28 44 5,872 (Combined) 95 33,329 63 152 59 5 160 2 91 Increase or Decrease 136,960 4,300 20,216 _f292.5% 4-133.2% 4-479.1% — 41.7% 336,829 657,700 131,896 60,212 325,600 170,683 111,990 399,800 146.491 31,113 +200.8% + 64.5% — 10.0% + 48.3% 128,300 + 33.0% 570,556 83,134 6,880 38,525 87,225 299,891 82,409 + 90.3% + 0.9% 69,315 58,300 — 52.2% + 49.6% 615,650 664,700 1,210,437 — 45.1% 52 280,745 348,026 1,430 114,815 +203.1% 25 17 54 210,650 23,800 163,080 125,500 233,835 24,800 173,332 143,365 33,990 49,000 24,931 53,116 +589.5% — 49.4% +595.2% +169.9% 2 20 T H E MANUFACTURING M O N T H L Y B U S IN E S S R E V IE W 11 the District cotton mills are operating at full capacity. Some of the mills are operating day and night shifts, and informa tion gathered by the United States Employment Service in dicates that textile mills have been adding to their forces the last few months. Figures reported to the Monthly Business Review by repre sentative cotton mills throughout the District reflect greatly improved conditions over those existing a year ago. Produc tion in December was 38.0 per cent greater than in Decem ber 1920. Cloth shipments, while 1.6 per cent below Novem ber 1921 shipments, were 126.7 per cent larger than during December 1920. Unfilled orders on hand at the end of De cember 1921 increased 2.7 per cent over those at the end of November, and were 22.1 per cent greater than for Decem ber 31, 1920. Stocks of cloth on hand were 4.5 per cent smaller than at the close of November, and one-tenth of one per cent smaller than on the same date one year ago. Cotton seed oil mills in the Sixth Federal Reserve District were not so active during December as in November, when in creased production was noticeably above that of the preced ing months. December activity as indicated in figures re ported by five mills, however, was substantially larger than was -the case in December a year ago. The amount of cotton seed crushed by these five mills in December was about 2*5 per cent less than in November, but 39 per cent greater than in December 1920. Crude oil manufactured in December was reported to be approximately 25 per cent leg's than in No vember, but 43 per cent more than in December last year. Shipments increased 5 1-2 per cent over those for November, and 71 per cent over December 1920 shipments. Production of cake and meal was 51 per cent greater than in December 1920, although 29 per cent less than in November 1921. The number of employees on the payrolls in December 192’1 was more than double the number employed in December last year, December 1921 Cotton Cloth Statistics but was less, by 18 per cent, than in November 1921. Prices paid for cotton seed are reported to be about the same as Compared with those paid at thisi time last year, and the value of the products Nov. 1921 Dec. 1920 about the same. Demand is said to be limited. — 4.3% 38.0% Brick manufacturing shows little change from conditions 1 Cloth Production -------------— 1.6% _|_126.7% which have prevailed in that industry during the past few 2 Cloth Shipments --------------months. A slight increase in production, with a falling off 3 Orders on hand at end of month_______________ - j - 2.7% _|_ 22.1% in orders booked during the month is indicated in reports re 4 Stocks of manufactured cloth ceived from correspondents for December. on hand at end of month___ — 4.5% — 0.1% Overall manufacturing continues active and mills are operat ing on full time. Some increase has taken place during De COTTON YARN cember in the number of workers" employed. The demand dur ing August, September and October was unusually heavy due While the production of cotton yarn in this District fell off to the small stocks in the hands of retailers and the advance slightly in December as compared with preceding months, fig in price of cotton. Orders are still for small lots* but prompt ures reported by 33 representative mills show production delivery is insisted upon. Orders for cotton hosiery during greater by 80.3 per cent than the amount of yarn manufac December were considerably larger than either the preceding tured by the same mills during December 1920. The amount month or December 1920'; production is reported, however,, as of yarn manufactured in December was only 2.4 per cent slightly under the November production, but about the same smaller than in November, while in November production was as during December last year. Unfilled orders on hand at the 3.2 per cent larger than during October. end of the month were about the same as one month earlier, Shipments of cotton yarn in December, while 4.2 per cent but substantially larger than at the end of December a year smaller than in November, were 141.5 per cent in excess of ago. Orders booked by candy manufacturers during Decem shipments during December 1920. ber were approximately a third larger than during November, Orders on hand declined 3.8 per cent during December, fol but about twenty-five per cent smaller than the total for De cember last year. The amount of candy manufactured dur lowing a decline in November orders on hand compared with ing December was greater than in November, but only a little those at the end of October of 12.7 per cent. Compared with more than two-thirds of the amount produced during Decem orders on December 31, 1920, however, an increase of 54.8 per cent is shown. ber 1920. Stocks of yarn on hand December 31, 1921,, were 1.0 per cent larger than on November 30, but 5.7 per cent smaller COTTON MANUFACTURING than on December 31, 1920. Some of the reporting mills state they are now operating at Cotton Cloth a small profit, and that notwithstanding the December fig Following increased production during November and Oc ures, conditions are improving. Cotton yarn buyers were tober over the preceding months, a decrease of 4.3 per cent loath to buy except what was necessary because of the tak occurred in December compared with November, in the amount ing of inventories on the last of the year, but business ap of cloth manufactured by 39 mills reporting to the Monthly pears to have assumed better volume since the turn of the Business Review. Some of the mills closed down a few days year. on account of the holiday season, but generally throughout 12 T H E M O N T H L Y B U S IN E S S LABOR Labor conditions generally in the United States were not quite so favorable at the close of December as at the end of November. Statistics compiled and published by the United States Employment Service, Department of Labor, gathered from 65 principal industrial centers of the United States, show that 1,428 firms usually employing more than five hundred workers on December 15, had on their payrolls 1,493,107 work ers, compared with 1,567,374 on November 15, or a net decrease of 74,267, or 4.7 per cent. The net decrease in these same establishments since January 31, 1921, has been 135,027, or 8.3 per cent. The largest increase in employment shown by the statement was in leather and finished leather products), which showed a gain of 1.8 per cent for the month. Textiles and their products, and paper and printing, showed gains of 1.3 per cent, and iron and steel, metal and metal products, and lumber, followed with gains of less than one per cent. Decrease occurred in automobile manufacture of 37.8 per cent, in liquors and beverages of 25 per cent, in railroad re pair shops of 6.4 per cent, food and kindred products of 5.2 per cent, and to a smaller extent in other lines. Among the cities showing increases in employment in these larger estab lishments which employ 500 or more, are Chattanooga 1.6 per cent, New Orleans 1.5 per cent, and Birmingham .3 per cent. Firms employing 500 or more in Atlanta show a decrease of 5.7 per cent during December. The report shows, however, that 131 industrial concerns in Atlanta which on December 15 employed 19,940 workers, re ported an increase of 146 for the month. About 75 per cent of the industries in Atlanta are running from one-half to twothirds of full time. Cotton oil mills are operating at 90' per cent of full time, and employing about 75 per cent of their maximum. Steel plants and kindred industries are at a very low ebb, not more than 20 per cent of capacity. Work will soon begin on improvements provided for in the recent bond issue, and this is expected to furnish employment for a large number of workers. Housing conditions show improvement, and an active building program continues. Little employment exists in Columbus. Textiles, the principal industry of that city, show gains in employment. A slight decrease is noted in employment in Macon, although conditions generally are fairly satisfactory. 35 industrial concerns in that city show a decrease of 135 workers for the month. Augusta reports an increase of only 9 workers in 20 industrial concerns which on December 15 employed 3,102 workers. Unemployment is said to be general in all trades and occupations. No plants are closed down, but practically all, except textile mills, are work ing on part time with reduced forces. Savannah reports show an increase of 192 workers in 26 industrial establishments which on December 15 employed 2',359 workers. Unemploy ment continues serious, however, in many industries, and is acute in office and clerical work. Fertilizer plants and cotton compresses are running only about 25 per cent. The sugar refinery, employing about 450, and the canning factory, closed temporarily until the beginning of 1922 for lack of orders. Improvement is reported in cotton and naval stores, and in the building trades and the lumber industry. In Florida unemployment continues to present no very se R E V IE W rious problem, although there is still unempolyment in va rious industries. Some unemployment in Jacksonville, among metal workers, shipbuilding and waterfront industries, is be ing augmented by the influx of itinerants. In Tampa also un employment in the metal trades exists to the extent of about 50 per cent. Building trades in Tampa are more active tlian any other, but due to the influx of outsiders, there are many unemployed. Some machinists, boiler makers, electricians and carpenters in Key West are idle, and further reductions in employment among cigar makers has been caused by the clos ing of two factories. Pensacola reports an increase of 23 workers by 16 industrial concerns which on December 15 em ployed 1,257 workers. 28 lumber mills in Florida which on December 15 employed 4,426 workers, report a decrease of 87. However, the packing and shipping of citrus fruits,, and the planting and cultivating of early vegetables, are furnishing employment for large numbers. Road contracts, bridge build ing and other construction, are also giving employment to many. Alabama reports indicate that coal mines are operating on about 40 per cent of full time. Business with the soil pipe works is reported exceptionally good, but the iron and steel industry is improving only slightly. Reports state that about 50 per cent of iron ore miners and 60 per cent of coal miners are unemployed. In Birmingham little change has taken place, except in the manufacture of soil pipes. Many lines show an increase, but almost all railroads entering the city are reduc ing forces. Montgomery reports little unemployment, with building active. The movement of lumber, steel and coton has increased employment at Mobile. Lumber mills at Tuscaloosa are running full time with a full force, and other smaller mills are reported on full time. Unemployment and part time continue in the manufacture of food products, in ship yards, the metal trades,, and among clerical and waterfront workers, and in unskilled labor, in New Orleans. Cotton textiles, railroad repair shops, garment plants and cigar factories are active, and report improve ment. Building is rather quiet. Floaters from the north and east are arriving in large numbers. The housing situation is improving, but there is still a shortage of low and medium priced houses for renting purposes. The activity indicated in the lumber industry in Mississippi is stated not to be on account of an immediate demand for lum ber, but retail stocks are becoming exhausted and preparations are being made for spring demand. Little unemployment is indicated in Mississippi cities. At Jackson business has slowed down due to the inventory period, but lumber manu facturing plants, the chief industries of that section, are running full time. Building is active. Meridian also indi cates a shortage of houses, and building and street improve ments are furnishing employment to many. Railroad shops are reducing their forces. There has been some let up during December in Tennessee hardwood lumber plants, due to the holiday and inventory season. Weather conditions no doubt will prevent resumption to the fullest extent in the lumber industry until spring. 25 knitting mills in Tennessee which on December 15 employed 3,630 workers, report a decrease for the month of only 17 T H E M O N T H L Y workers. 9 industrial concerns in Chattanooga employing 585 workers on December 15, show an increase of 50. Employ ment and industrial conditions in Chattanooga are reported good, with increased building activities. At Knoxville 8 in dustrial concerns which on December 15 employed 3,870 work ers, report an increase of 55 during the month. Housing con ditions are improving and building is active. Most of the industries are operating regularly, but a large textile mill is reported closed on account of industrial controversies affect ing 1,400 employees. Some textile mills are running over time. Little change has taken place in Nashville. Building continues active, and the lumber industry has shown some improvement. Coal mining in Tennessee during December was at a low ebb, and the number of unemployed was larger than during previous months. IRON AND STEEL Pig Iron production in the United States during the month of December, according to statistics compiled and published by the Iron Trade Review, amounted to 1,634,611 tons, an increase of 15.5 per cent over production during the preced ing month, November 1921, but 39.5 per cent less than pro duced in December 1920. The December production was the largest during the year since February, and continued the up ward trend in production which began in August. On the last day of December 124 blast furnaces were operating, this being a gain of four furnaces over the number active on No vember 30. During the month four merchant furnaces were blown in and none blown out, while three non-merchant fur naces were blown in and three blown out. Of the total num ber of stacks active on the last day of the year, 38 were mer chant and 86 non-merchant. Total production for the year 1921 was 16,498,400 tons, or a decrease of 57.4 per cent compared with the production of 36,400,968 tons in 1920. In the Alabama district, thirteen furnaces are now in blast, as against twelve on the last of November, one additional fur nace having been blown in during the month. Alabama pro duction of pig iron during December is given at 114,296 tons, compared with 108,201 tons produced during November. Of this total, 59,580 tons are merchant and 54,716 tons are non merchant iron. Of the thirteen furnaces in operation, eleven are producing coke iron, and two are producing charcoal iron. While production increased in December, shipments are re ported to have declined during the last half of the month, and correspondents state that furnaces were obliged to place iron on their yards due to lack of shipping instructions. Pig iron production was decreasing at a rapid rate at this time last year, and the output in January 192*2 is expected to approach more nearly to the production of a year ago. The price of No. 2 iron during January 1921 ranged from $27.50 to $30.00 while at the present time $16.50 is being quoted for the same grade. Business which developed during the week before Christmas served to stimulate the market and correspond ents appear more hopeful in regard to business for the present year. The market for steel nails, rods, and other products was reported to be quiet during December, but this was ex B U S IN E S S R E V IE W 13 pected, on account of the holiday and inventory season. Dur ing the month prices on nails and wire products were reduced and are stated to be very close to the cost of production. COAL Production of coal in the United States during 1921, accord ing to statements issued by the United States Geological Sur vey, amounted to 495,000,000 tons, the smallest year’s output in ten years. 1920 production was given at 646,000,000 tons, or 151,000,000 more than the output for the year just ended. This fact means more than simple comparison with the ton nages of previous years would indicate, for bituminous pro duction in the United States! normally increases Rapidly. From 1891 to 1901 the rate was nearly doubled, and from 1901 to 1911 it almost doubled again. That this rate should con tinue was not to be expected, but the record of recent years shows that the normal production is now not far short of 550,000,000 tons. Of the total of 495,000,000 tons produced during 1921, 406,990,000 was bituminous coal; 1920 bituminous coal output was 556,516,000 tons. The December output in Alabama is reported at 960,000 tons, compared with 1,170,000 tons produced in November, and 1,320,000 tons produced in December 1920. The winter has so far been mild, and the demand for domestic coal has been low as a natural consequence. Retail coal dealers have preferred to dispose of the stocks they have on hand rather than in crease their orders; some of the railroads declined to accept delivery of any coal Christmas week, and the cessation of work by various industries which closed for that week had its effect on the total amount of coal consumed. Correspondents indicate that their customers are expecting a reduction of freight rates and are placing orders only for actual require ments. Tennessee correspondents state the production in that state during December was the lowest for any month in the past twenty-five years. Reports to the Southern Appalachian Coal Operators Association indicate the loading of 5,981 cars of coal during December, representing a tonnage of approxi mately 299,050 tons. Compared with November statistics these figures indicate a falling off of 1160' caTS, or approxi mately 58,000 tons. Fewer mines operated during December than during any other month of the year. Mild weather con ditions and the slackened state of coal consuming industries which obtain their supplies from Tennessee are given as rea sons for the decrease. NAVAL STORES The close of December brings to an end a year of continued uncertainty and unsatisfactory conditions in the Naval Stores Industry. The 1921 production of both rosin and turpentine has been smaller than for the preceding year, but the carry over from the 1920 crop, coupled with the small volume of export business, by reason of the unsettled condition of for eign trade, has brought a feeling of relief that the year 5s ended. Stocks of both turpentine and rosin at the end of December were much larger than for the same time in 1920. 14 T H E M O N T H L Y B U S IN E S S Shipments during December were considerably above those of December 1920, and receipts of rosin were larger by a sub stantial margin than those of a year ago. Turpentine re ceipts also reflected an increase over those of December a year ago, although at Savannah and Pensacola they were smaller than during the preceding month. The favorable weather during December has enabled many operators to wind up the season more rapidly than usual, and an increase in December receipts is shown at Jacksonville over those for November. Operations for the ensuing crop are now in pro gress and correspondents indicate that because of the large stock of rosin still in producersy hands, and because of general conditions in the trade, the next crop must be reduced in volume. MOVEMENT OF NAVAL STORES DECEMBER, 1921 Dec. 1921 RECEIPTS—TURPENTINE: Savannah 7,587 Jacksonville 10,718 Pensacola 4,831 RECEIPTS—ROSIN: Savannah 41,467 Jacksonville 48,057 Pensacola 25,657 SHIPMENTS—TURPENTINE. Savannah 5,004 Jacksonville 11,619 Pensacola 3,416 SHIPMENTS—ROSIN: Savannah 21,495 Jacksonville 45,308 Pensacola 9,174 STOCKS—TURPENTINE: Savannah 13,584 Jacksonville 29,641 Pensacola 23,740 STOCKS—ROSIN: Savannah 89,456 Jacksonville 174,472 Pensacola 72,482 *Not reported. Nov. 1921 9,369 10,160 5,272 Dec. 1920 * 9,582 3,909 39,291 39,903 19,066 * 33,955 13,310 7,528 7,843 3,583 * 6,473 2,561 53,273 34,489 16,905 * 1,730 7,22*8 9,160 30,542 22,370 * 26,220 11,620 83,466 171,993 66,019 * 161,569 54,896 R E V IE W WHOLESALE PRICES—UNITED STATES The index number of wholesale prices in the United States compiled by the Federal Reserve Board for the purpose of in ternational comparisons showed that prices during December declined 2 points. On the basis of jDriees in 1913—100 com modities imported rose 3 points, while goods exported declined 2 points. All groups of raw materials and manufactured goods declined during the month. Index Numbers of Wholesale Prices 1920 December 1921 January February March April May June July August September October November December (Axerage price for Goods Goods Goods pro import export ed duced ed 112 146 178 166 156 152 145 145 141 144 145 145 143 142 139 114 113 114 109 105 102 103 104 106 107 108 111 142 135 125 121 125 122 122 123 144 141 138 136 1913—100) Pro Con Raw mate ducers 9 sumers 9 rials goods goods All 173 171 176 171 164 152 146 136 139 133 134 133 138 140 141 140 166 158 153 148 145 140 136 133 133 132 128 127 159 152 151 147 144 144 152 157 152 145 143 140 163 154 150 143 142 139 141 143 143 141 140 138 The index number is compiled from 90 wholesale price quo tations for representative "feommodities taken in leading United States markets. In most cases weekly quotations are averaged to obtain the monthly figures, and these in turn are weighted according to the importance of the commodity be fore the index number is constructed. Part of the quota tions used are furnished by the Bureau of Labor Statistics, the rest are compiled from trade journals and private firms of recognized authority.