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M O N TH LY R E V IE W O f Agricultural, Industrial, Trade and Financial Conditions in the Sixth Federal Reserve District FEDERAL RESERVE BANK OF ATLANTA O scar N ew ton , Chairman of the Board and Federal Reserve Agent W ard A lb ertson , Assistant Federal Reserve Agent (Compiled September 18, 1928) VOL. 13, No. 9 ATLANTA, GA., SEPTEMBER 30, 1928 BUSINESS CONDITIONS IN THE UNITED STATES several lines of wholesale trade were somewhat larger than last year. Freight car loadings were in about the same volume in August as a year earlier. Shipments of miscellaneous commodities and grains were larger and those of coal, live stock, and forest products smaller than last year. Volume of industrial and trade activity increased in August, and there was a further advance in wholesale commodity prices. Reserve bank credit outstanding in creased in September reflecting in part seasonal demands for currency and credit. Money rates remained firm. Prices The general level of commodity prices increased in August and the Bureau of Labor Statistics index, at 98.9 per cent of the 1926 aver age, was the highest in nearly two years. Increases in August were chiefly in the prices of live stock and live stock products, which are now higher than at any time since 1920. There were also small increases in fuels, met als, and building materials. Grains and cotton showed sharp declines, and there were decreases also in hides, and skins and wool. Since the first of September there have been some declines in live stock and meats, and a sharp further decrease in cotton, while prices of pig iron, copper, and petroleum have advanced. Production Production of both manufactures and minerals increased considerably in Au gust, the output of manufacturing plants being larger that at this season of any earlier year. Automobile pro duction was in record volume in August, and available in formation indicates that output was maintained by many producers at a high level during September. Iron and steel production continued large in August and September, and output of non-ferrous metals increased between July and August. Textile mill activity, which had been some what reduced in recent months, also showed a substantial increase. Factory employment and payrolls have in creased since midsummer and in August were close to the levels of a year ago. In the building industry there was evidence of recession in a sharp decline after the early summer in contracts awarded, which were in smaller vol ume during August than in the corresponding month of any year since 1924. In the first three weeks of Septem ber, however, awards were somewhat larger than last year. Estimates of the Department of Agriculture for Septem ber first indicate that yields of principal crops will be larger than last year and above the average for the pre ceding five years. Bank Credit Between the middle of August and the middle of September there was a considerable increase in the loans and investments of member banks in leading cities. Part of the increase was in loans on securities and part reflected a seasonal increase in other loans. Deposits of the member banks also in creased during the period. Volume of reserve bank credit outstanding increased during the four weeks ending Sep tember 19 in response to seasonal demands for currency and growth in member bank reserve requirements. The increase in total bills and securities was largely in hold ings of acceptances and in discounts for member banks. During the same period there were further increases in open market rates on collateral loans and on commercial paper while rates on bankers acceptances were reduced from 4% per cent to V& per cent. Trade Distribution of commodities showed seasonal increases in August, although sales in most lines of wholesale and retail trade did not equal the unusually large sales of August 1927. Depart ment stores stocks increased as is usual in August but continued smaller than a year ago, while inventories in PERCENT P£R££2*T Index numbers of production of manufactures and minerals, adjusted for seasonal variations (1923-25 average—100). Latest figures, August manufacturers 114; minerals 105. This review released for publication in the Sunday papers of September 80. per CE?iT P ER C EN T Index of United States Bureau of Labor Statistics. 1926—100, base adopted by bureau). Latest figures, August; Non-Agricultural Com modities 96.7; Farm Products 107.0. MONTHLY REVIEW 2 Monthly averages of daily figures for 12 Federal Reserve Banks. Latest figures are averages of first 22 days in September. Federal Reserve Board's indexes of value of building contracts awarded as reported by the F. W. Dodge Corporation (1923-25 average —100). Latest figures August, adjusted index 111; unadjusted index 126. SIXTH DISTRICT SUMMARY RETAIL TRADE Increases were shown in August over July in the vol ume of trade by both retail and wholesale firms in the sixth district reporting to the Federal Reserve Bank, com mercial failures declined, and production by reporting cotton mills increased, but declines were shown in bank deposits, debits to individual accounts, and in building statistics. August sales by reporting department stores were 12 per cent greater than in July, and, due to increases at Atlanta and Nashville, averaged 1.3 per cent greater than in August last year. Sales by wholesale firms increased nearly 20 per cent in August over July, but continued at a level somewhat below that of a year ago. Commercial failures were smaller by 34 per cent, in liabilities, than in July, and less than half the total for August 1927. Sav ings deposits of 85 reporting banks were 2.5 per cent greater than a year ago. Debits to individual accounts declined in comparison with July, and were less than for August last year. Both demand and time deposits of all member banks in the district declined in August, and deand deposits were less than a year ago but time deposits were greater. Building permits at reporting cities were less than for July of this year or August, 1927. The pro duction of cotton cloth and yarn by reporting mills in this district increased over July, and were slightly greater than for August last year. Production of both coal and pig iron in Alabama is at a lower level than at the same time last year, but coal output in Tennessee shows an in crease over August last year. The September 1 estimates by the United States Department of Agriculture indicate decreases in the sixth district, compared with 1927, in the crops of cotton, corn, wheat, oats, hay, sweet potatoes and peanuts, but increases in tobacco and white potatoes, and fruits. Retail trade in the sixth district exhibited a seasonal increase in August over July, and was greater than in August last year, and stocks of merchandise also increased over July, but were somewhat smaller than a year ago. Sales during August by 45 representative department stores located throughout the district increased 12 per cent over July, and averaged 1.3 per cent greater than in August 1927, due to increases reported at Atlanta and Nashville. For the first eight months of 1928, sales in the district have averaged 2.8 per cent greater than in the corresponding period of last year. Stocks on hand at the end of August were 1.7 per cent larger than a month earlier, but were 1.4 per cent smaller than a year ago. Accounts receivable at the end of August were 3.8 per cent greater than for July, and 15.9 per cent greater than a year ago. Collections during August declined 10.9 per cent compared with those in July, but were 2.6 per cent greater than in August 1927. The ratio of collections during August to accounts receivable and due at the be ginning of the month for 32 firms was 30.5 per cent; for July this ratio was 31.6 per cent, and for August last year, 34.2 per cent. For August, the ratio of collections against regular accounts outstanding, for 32 firms, was 32.5 per cent, and the ratio of collections against installment ac counts for 9 firms was 16.0 per cent. WHOLESALE TRADE The distribution of merchandise at wholesale in the sixth district exhibited a seasonal increase in August com pared with preceding months, but continued in somewhat smaller volume than in the corresponding month last year. August sales were greater than in July in all of the eight reporting lines of wholesale trade, and increases are shown for each reporting city from which three or more CONDITION OF RETAIL TRADE DURING AUGUST 1928 AT 45 DEPARTMENT STORES Sixth Federal Reserve District Rate of Stock Turnover Comparison of Net Sales Comparison of Stocks Aug. 1928 with Jan. 1 to Aug. 31 Aug. 31, 1928 with August Jan. 1 to Aug. 31 Aug 31, 1928 with Aug. 1927 1928 with same 1927 1928 1927 1928 Aug. 31, 1927 July 31, 1928 ____ period in 1927. Atlanta (5) +18.9 Birmingham (5) — _— 2.3 Chattanooga (6) - — — 9.4 Nashville (4) «f 1.8 New Orleans (5) - — — 2.9 Other Cities (20) _ _ — 7.9 District (45) +15.7 + 6.2 — 3.7 + 7.2 — 2.8 — 3.7 *f 2.8 + 6.7 + 8.8 —10.2 — 8.8 + 6.6 — 2.6 + 2.8 -f 7.2 + 0.8 — 2.8 + 7.6 — 2.9 — 1.4 + 1.7 N6TB-^The rate of stock turnover is the ratio of sales during given period to average stocks on hand* .82 .25 .17 .29 .16 .20 .22 .80 .18 .15 .25 .14 .15 .19 2.34 1.78 1.56 1.98 1.65 1.95 1.88 2.15 1.68 1.48 1.92 1.86 1.52 1.60 MONTHLY REVIEW reports in a line of trade were received. Compared with August 1927, sales during August this year show in creases in electrical supplies, stationery and groceries. The combined index number of wholesale trade in the istrict for August is higher than for any month since last November. Trade contitions in August were, however, affected by bad weather and its adverse effect on crop conditions in some sections. Comparison of reported fig ures are shown in the tables which follow. Groceries August sales of groceries at wholesale by 31 reporting firms averaged* 10.3 per cent greater than in July, and were slightly larger than in August 1927. Stocks on hand were smaller, but accounts receivable larger, than for either of those months. Collec tions improved in August over July, but were slightly smaller than in August a year ago. August 1928 compared with: Sales: July 1928 August 1927 Atlanta (3 firms) --- --------- -------j-11.7 + 4.0 +15.4 -j- 0.8 Jacksonville (4 firms) ............ ......... New Orleans (6 firms) ..... ............. + 6*1 + 3.6 Vicksburg (3 firms) _______ __ __ -f-15.8 4*10.0 Other Cities (15 firms) ______ _+ 3.0 — 5.6 DISTRICT (31 firms) _____ ______ __ + 10.3_____ + 0.2 —10.1 —13.2 Stocks on hand ............. ..... ............... Accounts receivable ........................... + 4.3 + 3.3 Collections ____ ___ _________ -j- 5.7 — 0.3 Dry Goods Sales of dry goods at wholesale increased substantially in August over July, aver aging 59.2 per cent greater. Compared with August last year, however, sales in August this year averaged 26.0 per cent smaller, although at New Orleans there was, an increase of 11.0 per cent. Stocks on hand declined slightly compared with July, but were somewhat larger than a year ago, and accounts receivable and collections increased over July but were smaller than a year ago. August 1928 compared with: Sales: July 1928 August 1927 Atlanta (3 firms) + 62.3 —48.6 Nashville (3 firms) -f 55.0 —29.6 New Orleans (4 firms) +126.0 +11.0 Other Cities (15 firms) + 39.8 —31.3 DISTRICT (25 firms) + 59.2 —26.0 Stocks on hand — 0.1 + 3.1 Accounts receivable + 13.6 —14.5 Collections ........... + 0.3 —20.2 Hardware August sales of hardware at wholesale increased at each reporting city over July, averaging 14.9 per cent greater for the district, but were in smaller volume than in August last year. Stocks were somewhat larger than for either of those months. Ac counts receivable and collections show increases over July, but were less than for August a year ago. August 1928 compared with: Sales: July 1928 August 1927 Nashville (4 firms +24.6 — 9.2 New Orleans (5 firms) + 6.7 — 1.1 Other Cities (18 firms) —. +17.7 — 6.9 DISTRICT (27 firms) _ — +14.9 — 5.5 Stocks on hand_ + 2.5 + 1.4 Accounts receivable + 6.4 — 1.5 Collections______ + 3.6 —10.8 Furniture Sales of furniture at wholesale during August averaged 35.7 per cent greater than in July, and were 9.9 per cent greater than in August last year, although a decrease is shown by reporting firms at Atlanta. Stocks on hand and collections show decreases compared with July but were greater than for August last year, while accounts receivable increased over July, and were somewhat smaller than a year ago. August 1928 compared with: Sales: July 1928 August 1927 Atlanta (5 firms) __ +21.9 —13.1 Other Cities (8 firms) +38.5 +13.3 DISTRICT (13 firms) +35.7 + 9.9 Stocks on hand ______ — 4.9 + 9.7 Accounts receivable ___ + 4.7 — 1.4 Collections __________ —25.6 + 9.1 Electrical Supplies Sales of electrical supplies at wholesale during August showed increases over both the preceding month and the same month a year ago. Stocks were smaller, accounts receivable and collections larger, than for either of those months. August 1928 compared with: Sales: July 1928 August 1927 Atlanta (3 firms) ............ ......... ..... + 1.2 + 9.9 New Orleans (4 firms) ....... ........... + 8.2 +23.3 Other Cities (7 firms) ............... ....— +20.3 + 3.1 DISTRICT (14 firms) . —.......................-.+ 8.9______+11-4 Stocks on hand .—. .......... ... ... ...... - — 3.1 —18.1 Accounts receivable ........................ ..... + 4.1 + 0.6 Collections ...... .............—.................... +13.1 + 9.7 Comparisons for the other three lines are shown only for the district as three or more reports were not re ceived in any of these lines from an individual city. All three lines showed increases in sales over July, and sales of stationery were greater than in August last year. August 1928 compared with: July 1928 August 1927 Shoes: sales - ..... ........... ................ +46.6 —14.0 Stationery: sales ------ ---------- --- ~-+66.0 +10.0 Drugs: sales ----------------------------+15.5 — 2.4 +7.3 + 0.4 Accounts receivable ................. Collections ---------------------— 2.8 —14.2 AGRICULTURE The September crop reports of the United States De partment of Agriculture indicate that with the approach of the harvest several of the principal crops give evidence of larger production than was expected earlier in the season, but that since last month prospects along the At lantic Coast have declined, chiefly as a result of excessive rain, and in some parts of the West because of drought. For the country as a whole, the estimated production of wheat, oats, tobacco, potatoes, cotton, rice and peanuts shows improvement over the August 1 estimates. Esti mated production of most of the principal crops, excepting hay, sweet potatoes and rice, is greater than yields last year. Figures for the sixth district indicate that estimated production this year, based upon September 1 conditions, of corn, wheat, oats, and hay, is smaller than last year, but tobacco and white potatoes show increases. Tobacco production in Georgia this year is estimated at 85 million pounds, compared with 59 million pounds produced in 1927, and in Tennessee the crop is estimated at over 81 1-2 million pounds compared with 68 million pounds last year. Production of white potatoes is larger in all states of the district this year than last, but the crop of sweet potatoes is smaller, except in Tennessee. The condition of Florida crops declined as a result of damage from winds and heavy rains, and for most of the staple crops is below last year. Condition of citrus fruits is also lower, but indica tions still point to a crop materially larger than that of a year ago. In the table are shown the estimated production of some of the principal crops in this district, based on September 1 conditions, compared with yields last year. (000 omitted) Estimated Final Percentage 1928 1927 Comparison Corn, bu....... . .................. 146,967 184,477 —20.3 Wheat, bu. ___ ________ 4,490 4,528 — 0.8 Oats, bu. ............... ..... .... 10,732 14,282 —24.9 Hay, tons —.... ........ ....... 2,999 3,141 — 4.5 Tobacco, lbs....................... 159,126 121,134 +31.4 White potatoes, bu. -------- 15,603 12,303 +26.8 (NOTE: Parts of Tennessee, Mississippi and Louisiana are situated in other Federal Reserve districts.) A United States cotton crop of 14,439,000 bales is indicated by the condition of 60.3 on September 1, according to the Department of Ag riculture’s report. This forecast is 148,000 bales greater than the August estimate. Abandonment after the first of July is estimated at 3.8 per cent leaving 44,916,000 acres to be harvested. In the central portion of the belt, except in Louisiana, prospects improved somewhat but along por tions of the Atlantic coast there has been too much rain and in western Oklahoma the crop has deteriorated as a result of drought. The September estimate of cotton production is higher for Alabama, Georgia, Mississippi and Tennessee than the estimate for August, but Louisi Cotton t MONTHLY REVIEW 4 ana showed a decrease and in Florida estimated produc tion was the same as for August 1st. The estimate of production for the sixth district, not including those parts of Tennessee, Mississippi and Louisiana located in other Federal Reserve districts, is 2,600,000 bales, a decrease of 8.3 per cent compared with last year’s crop. Cotton of the 1928 crop ginned prior to September 1 totaled 956,486 bales, as compared with 1,533,577 bales ginned to the same date last season. Estimated production this year com pared with 1927 is shown in the table. Sept. 1 Final Estimate 1927 1928 (Bales) 1.191.000 970.000 Alabama ---17,000 19,000 Florida ____ 1.100.000 1,100,000 Georgia -----548.000 560.000 Louisiana ---1,355,000 1,250,000 Mississippi — 359.000 441.000 Tennessee — 12,955,000 14,439,000 United States (NOTE: Agricultural data shown above are based upon conditions September 1. No accurate information is available regarding the dam age to crops resulting from the storms and heavy rains in some sec tions since that date.) Sugar Cane and Sugar Weather conditions in the Louisiana cane belt have been generally favor able, although in some sections there was not sufficient rain, and the crop still averages later than usual. Estimated production this year is 166,195 short tons of sugar, compared with 70,792 short tons pro duced last year. SUGAR MOVEMENT (Pounds) Raw Sugar Receipts: August 1928 July 1928 August 1927 New Orleans ....... .......... .. 167,622,714 98,863,445 121,181,444 Savannah .......................... 24,937,000 9,386,703 6,690,506 Meltings: New Orleans ...................... 171,906,391 117,458,680 153,439,526 Savannah -...........-.............. 39,750,804 23,686,117 19,316,769 Stocks: New Orleans ...................... 32,339,518 40,280,389 39,849,996 Savannah -..... -..... -__ ____ 6,492,942 21,306,279 21,781,971 Refined Sugar Shipments: New Orleans .............- ...... 150,282,023 118,829,913 145,068,196 Savannah _______ ___-_ 35,129,603 32,680,255 29,807,257 Stocl-3: New Orleans __________ 60,231,884 44,741,989 89,833,456 Savannah .................-......... 16,038,957 11,101,730 7,000,961 Rice The condition of rice in Louisiana de clined somewhat during August, and the September 1 estimate of production of 15,524,000 bushels, compared with the production of 17,316,000 bushels last year. The acreage this year is estimated at 457,000 acres, compared with 481,000 acres last year. Grass and weeds have adversely affected the stands and yields this year. RICE MOVEMENT—Port of New Orleans Rough Rice (Sacks) Aug. 1928July 1928 Aug. 1927 Receipts __ -............... -.......... 24,357 690 122,522 Shipments _______ ___ -.......... 20,158 2,020 99,524 Stocks ........ ............................ 5,785 1,586 36,887 Clean Rice (Pockets) Receipts ............................. 47,451 40,293 136,844 35,274 109,951 Shipments ..............................- 96,643 Stocks __________________ 115,470 164,662 203,182 Rice Millers’ Association Statistics (Barrels) Receipts of Rough Rice August Season Total Season 1928-29 ___________________ 338,269 338,269 Season 1927-28 ____________________ 792,345 792,345 Distribution of Milled Rice Season 1928-29 _____________ _____346,076 346,076 Season 1927-28 ____________________ 423,559 423,559 Stocks of Rough and Milled Rice September 1, 1928 ........ ........................... 695,660 September 1, 1927 .......... ........................... 1,235,674 FINANCIAL Total savings deposits at the end of August, reported by 85 banks located throughout the district, declined slightly compared with July, but were 2.5 per cent higher than a year ago. Small increases over July at Birmingham, Jacksonville and Nashville were a little more than offset by decreases at Atlanta, New Orleans and Other Cities. Digitized for InFRASER the table are shown totals for Atlanta, and for Branch Savings Deposits Federal Reserve Bank cities, and reports from banks lo cated elsewhere in the district are grouped under “Other Cities.” (000 Omitted) Comparison Comparison August July Aug.-July Aug. August 1928 1928 1928 1927 .... ’28-’27 $ 40,537 + 6.4 Atlanta (7 banks) ......... $ 43,115$ 43,844r —1.7 24,760 + 2.9 Birmingham (4 banks) _ 25,466 25,226 +1.0 Jacksonville (5 banks) .. 29,969 29,680 +1.0 29,240 + 2.5 Nashville (8 banks) __ 26,381 26,175 +0.8 25,027 + 5.4 New Orleans (7 banks) .... 47,290 48,095 —1.7 47,803 — 1.1 Other Cities (54 banks) 115,285 116,299 —0.9 113,109 + 1.9 Total (85 banks) ____ 287,506 289,319r —0.6 280,476 + 2.5 r — revised Debits to Individual Accounts The total volume of debits to individual accounts at the 26 reporting cities of the sixth district, reflecting the volume of business transactions settled by check, shows a decrease in August of 1.7 per cent com pared with July, and was 1.9 per cent smaller than for August 1927. Ten of these cities show increases over August last year, and sixteen show decreases. Monthly totals are derived from weekly figures by prorating fig ures for those weeks which do not fall entirely within a single calendar month. (000 Omitted) Alabama Aug. 1928 July 1928 Aug. 1927 Birmingham ___ $ 139,019 $ 144,839 $ 141,665 Dothan _________ 2,722 2,937 3,539 Mobile __________ ... 35,057 37,573 38,451 Montgomery _____ 23,050 23,503 22,934 Florida Jacksonville ______ 68,767 71,329 75,017 Miami _________ 24,185 28,047 33,018 Pensacola _______ 7,386 7,432 8,000 Tampa -------------- .... 33,503 42,614 37,955 Georgia Albany ......... ...... . 3,578 3,537 4,773 Atlanta ________ 144,292 148,742 141,767 Augusta ________ 22,880 23,781 24,003 Brunswick ............. 4,084 3,914 3,240 Columbus ________ 13,359 12,275 13,530 Elberton ________ 793 738 630 Macon _______ __ _ 19,666 20,990 21,480 Newnan _________ 1,640 1,896 1,706 42,151 Savannah ________ 41,377 49,578 Valdosta ........ ....... 8,028 9,732 5,616 Louisiana New Orleans ........ 310,620 326,052 319,954 Mississippi Hattiesburg _____ 7,114 7,284 6,860 Jackson ___ ___ . 22,599 24,079 20,107 Meridian ________ 16,343 17,124 19,381 Vicksburg _______ 6,439 7,419 6,379 Tennessee Chattanooga _____ 44,739 44,041 46,310 Knoxville _______ 36,460 36,879 34,449 Nashville _______ 112,984 89,557 86,777 Total 26 Cities $1,151,458 $1,171,185 $1,173,625 Condition of Member Banks in Selected Cities Weekly reports received from 31 member banks located in Atlanta, New Orleans, Birmingham, Jack sonville, Nashville, Chattanooga, Knoxville and Savannah indicate that between August 8 and September 12 total loans and discounts of these banks increased $2,279,000, but there was a decrease of $8,383,000 in investments, and as a result total loans, discounts and investments during this period declined $6,104,000. Investments in United States securities during this period decreased $9,241,000, while holdings of Other Stocks and Bonds increased $858,000. Total discounts on September 12 this year were $13,641,000 greater than on the corres ponding report date last year. Investments show an in crease of $20,433,000 over the corresponding report date last year due to increased holdings of both United States securities and of Other Stocks and Bonds. Total loan* discounts and investments show an increase of $34,074,000 over a year ago. Both time and demand deposits of these weekly reporting banks in selected cities on September 12 show decreases compared with a month ago, and with the same time last year, and borrowings of these banks from the Federal Reserve Bank of Atlanta show increases over both of the report dates under comparison. Principal items in the weekly report are shown in the table: MONTHLY REVIEW (000 Omitted) Sept. 12, Aug. 8, Sept. 14 1928 1928 1927 Bills Discounted: Secured by Govt. Obligations........ $ 2,895 $ 4,235 $ 5,071 Secured by Stocks and Bonds ------ 143,139 132,220 113,509 All Other ___________ _____- - 359,396 366,696 373,209 Total Discounts ____________ 505,430 503,151 491,789 U. S. Securities __________ _____ 59,988 69,229 49,632 Other Stocks and Bonds __________ 71,942 71,084 61,865 Total Loans and Investments ...— 637,360 643,464 603,286 Time Deposits ___________ _____ 236,770 237,858 237,854 Demand Deposits ____________ _ 314,403 316,296 339,465 Borrowings from F. R. Bank -------- 52,496 48,783 13,598 Bank Deposits of All Member Banks table are shown failures in the United States divided by Federal Reserve districts. Number Liabilities Liabilities Liabilities District Aug. 1928 Aug. 1928 July 1928 Aug. 1927 Boston ___ 212 $ 4,050,247 $ 2,345,127 $ 2,674,960 New York .. 318 12,024,156 7,937,412 14,791,080 Philadelphia 87 3,149,500 1,366,704 1,105,859 Cleveland — 156 4,231,357 3,248,216 4,276,479 Richmond _ 114 2,546,548 1,838,607 2,155,805 Atlanta ..... 90 1,310,443 1,997,327 3,019,963 Chicago __ 311 20,436,606 3,295,071 3,741,123 St. Louis ... 99 4,765,633 2,288,466 750,216 Minneapolis 46 404,105 496,225 1,819,855 Kansas City . 93 915,515 467,828 1,468,395 Dallas ____ 41 628,000 1,072,213 645,620 285 3,739,720 3,197,437 2,745,850 1,852 $58,201,830 $29,586,633 $39,195,953 Cold The outward flow of gold from the Movement United States was arrested, at least temporarily in August, when ex ports of gold declined from 74 millions in July to $1,698,000 in August, only slightly larger than the figure for August last year. For the eight months of 1928, gold ex ports totaled $531, 407,000, as against $33,198,000 during the same part of 1927. Imports of gold during August amounted to $2,445,000, compared with $10,331,000 in July, and with $7,877,000 in August last year, and for the eight months of 1928 have totaled $95,753,000, compared with $179,987,000 during the same period last year. The weekly statement1issued by the Federal Reserve Bank of Atlanta for September 12 shows the total of bills and securities held by the bank on that date to be larger than for any other report date since January 1926, and the total of bills discounted by member banks larger than at any time since the latter part of 1923. Discounts for member banks on September 12, both those secured by United States government obli gations and “All Others”, were greater than on August 8, shown in the preceding issue of the Review, and were greater than on the corresponding report date of last year. Holdings of bills bought in the open market were less than a month ago, but were greater than at the same time last year, while investments in United States se curities were greater than a month ago, but smaller than a year ago. Total bills and securities on September 12 were $4,655,000 greater than on August 8, and were $45,612,000 greater than a year ago. Both deposits and notes in actual circulation declined in comparison with figures for August 8, and were less than at the same time last year, and cash reserves were at the lowest level recorded since November 1923. Principal items in the weekly state ment, with comparisons, are shown in the table: (000 Omitted) Sept. 12, Aug. 8 Sept. 14, 1928 1928 1927 Bills Discounted: $ 17,963 $ 17,599 $ 3,175 Secured by Govt. Obligation! 62,919 57,704 26,763 All Others ___________ 80,882 75,303 29,938 Total Discounts ---------7,138 11,386 12,754 Bills Bought in open market 5,427 4,983 14,707 U. S. Securities --------------97,695 93,040 52,083 Total Bills and Securities 97,806 109,461 182,686 Cash Reserves ............... ....... 63,728 68,625 68,321 Total Deposits __________ 125,799 128,771 160,914 51.6 55.5 79.7 Reserve Ratio IMPORTS AND EXPORTS Preliminary figures compiled by the United States Department of Com merce indicate increases in both imports and exports of merchandise in August compared with July. Exports in August were greater than in August a year ago, but im ports show a decrease. Preliminary figures, with compari sons, are shown below: 1928 1927 Exports: August 381,000,000 $ 374,751,000 July 378,768,000 341.809.000 months ending with August ........ 3,136,941,000 3,082,853,000 Imports: August ........................... ........... $ 347,000,000 $ 368,875,000 July ------------------------------317,804,000 319.298.000 8 months ending with August ___ 2,750,669,000 2,811,348,000 New Orleans The value of merchandise imported into the United States through the port of New Orleans during June 1928 (the latest month for which detailed statistics are available) was $17,833,155 compared with the total of $16,431,105 for May, and with $17,795,432 for June last year. Colfee, bananas and creo sote oil were imported in larger quantities than in June last year, but some of the other large items show de creases. Exports of merchandise from the port of New Orleans during June 1928 totaled $29,388,659, compared with a total of $30,215,673 for May, and with $29,106,108 for June a year ago. Increases over June last year were shown in exports of lard, long staple cotton and oak boards. Grain Exports—New Orleans Exports of grain through the port of New Orleans dur ing August, and for the new season which began July 1, are about half as great as in the same periods last year, In August corn and barley show increases compared with a year ago, but the outward movement of wheat is sub stantially smaller. August August Season July 1 to Aug. 31 1928 1927 1928 1927 Wheat, bu ........ ......... .......... 396,671 1,308,399 490,798 1,624,055 Corn, bu. ..... ...................... 198,685 128,598 454,917 513,864 Oats, bu -------------- -- ---60,776 90,787 137,844 216,791 Barley, bu. ________ ____ 80,000 80,000 Total, bu. ............ ...... . 736,132 1,527,784 1,163,559 2,354,710 Reports of net demand and time deposits held by all member banks in the district are compiled as of the Wednesday preceding the 14th of each month. De mand deposits in August continued the decline which began in February and reached a point lower than for any month since November 1924. Time deposits in Au gust were less than for the three months immediately preceding, but were greater than for any other month. In the table are shown figures for the year to date, with comparisons. (000 Omitted) Demand Time 1928 1927 1928 1927 January _____ __ ____ __ $634,598 $635,846 $465,326 $443,142 February _______________ 625,307 637,019 461,400 451,322 March ___ ____ ________ 621,048 618,079 465,757 453,357 April _________________ 612,186 614,672 467,351 456,010 May __________________ 607,138 601,350 471,907 462,732 June ______________ -.... 596,668 587,188 471,953 460,112 July __________________ 578,233 574,848 475,096 460,957 556,721 579,772 471,665 456,919 August . _______ __-..... Operations of the Federal Reserve Bank Commercial Failures According to statistics compiled by R. G. Dun & Co., commercial fail ures in the United States during August numbered 1,852, with liabilities amounting to $58,201,830. These totals represent increases of 7.5 per cent in number and of 96.7 per cent in liabilities over July, and increases of 8.4 per cent in number and of 48.5 per cent in liabilities over August 1927. Contrasted with these figures for the United States as a whole, commercial failures in the sixth district during August were fewer in number than in any month since September last year. Liabilities were 34.4 per cent less than in July, and were less than half as great as in August last year. In the United States BUILDING The total value of buildings for which permits were issued at twenty regularly reporting cities of the sixth district during August was $8,196,057, a decline of 9.4 per cent compared with the total for July, and 9.8 per cent smaller than the total for August last year. Nine of these regularly reporting cities showed increases over August 1927, and eleven reported decreases. The index 6 MONTHLY REVIEW 6 number for the district for August is 72.8, compared with 80.4 for July, and with 80.8 for August last year. Total permits issued at these twenty reporting cities during the eight months of 1928 amounted to $72,713,525, a decrease of 9 per cent compared with the total of $79,887,951 is sued during the same period of 1927. Contracts awarded in the sixth district during August 1928, according to statistics compiled by the F. W. Dodge Corporation, amounted to $28,548,300, a decrease of 10.8 per cent compared with July, but 1.3 per cent greater than for August last year. For the eiffht months of the year, total contract awards in this district have totaled nearly 226 millions, smaller by 13 per cent than during the cor responding period of last year. Total contract awards in the 37 states east of the Rocky Mountains during August amounted to $516,970,200, a de crease of 11.4 per cent compared with July, and 6.4 per cent smaller than for August 1927. Of the August total, 41 per cent was for residential buildings, 23 per cent for public works and utilities, 11 per cent for commercial buildings, and 8 per cent for industrial projects. In the table are shown building permits at reporting cities of this district issued during August, with compari sons. Index numbers appear on page 8. Perct. Alabama August 1928 August 1927 change No. Value No. Value in value Anniston __________ 25 $ 145,050 30 $ 25,950 +459.0 Birmingham------------- 629 1,370,412 552 1,300,889 + 5.3 142,289 + 92.3 122 273,633 82 Mobile 187,751 +433.1 238 1,000,839 97 Montgomery Florida 594,435 521 1,143,519 — 48.0 Jacksonville ------------- 363 736,470 — 78.5 158,337 244 215 Miami _ 187,440 — 40.2 112,121 92 100 Orlando — 54 128,045 — 59.8 51,523 94 Pensacola 341,980 + 76.9 604,792 441 307 Tampa 9,275 — 58.0 7 3,900 16 ♦Lakeland __ 180,400 + 73.0 312,061 10 ♦Miami Beach . Georgia 838,299 439 1,017,634 — 17.6 . 335 Atlanta _ 147,136 — 39.4 89,110 158 . 150 Augusta _ 103,110 — 32.0 70,105 72 . 58 Columbus 200,873 — 47.8 104,859 198 . 112 Macon --+ 27.8 154,195 197,090 60 59 Savannah . Louisiana 255 1,017,977 266 1,907,496 — 46.6 New Orleans 52,296 — 14.0 44,997 72 . 72 Alexandria — Tennessee 237.184 + 6.4 252,452 317 Chattanooga ------------- 245 87,785 + 33.9 117,583 24 Johnson City ------------ 21 602.185 — 9.8 543,445 244 Knoxvilla --------------- 162 + 34.6 386,120 519,888 Nashville __________ 287 Total 20 Cities 3,849 $8,196,057 4,326 $9,090,447 80.8 72.8 Index No.... — ♦Not included in totals or index numbers. LUMBER Preliminary figures for the month of August received from 109 subscribing mills by the Southern Pine Associa tion up to the middle of September indicate that August production by these mills was below their three-year aver age output, and was exceeded by both orders and ship ments. Production in August was 4.8 per cent less than the three-year average production by the reporting mills. Orders received by these mills during August were 14.1 per cent greater than production* and exceeded shipments by 3.3 per cent. In July production of mills reporting for that month was 8.5 per cent below the three-year average. Stocks on hand at the end of August were 6.8 per cent less than the three-year relative stocks for these mills. Unfilled orders on hand at the end of August amounted to 82.8 per cent of a month's output at the rate which pre vailed in August. The weekly statements of operating time issued by the Southern Pine Asociation indicate that the average running time of all reporting mills has been below the standard. Production during August was inter rupted in some sections of the district by the heavy rains. Preliminary figures for August with comparisons are shown in the table. Aug. 1928 July 1928 Aug. 1927 (feet) 109 mills 108 mills 108 mills Orders _ _____________ 314,351,290 284,497,008 288,440,354 Shipments ___________ 304,398,334 284,454,932 284,701,664 Production ____________ 275,561,798 264,870,514 275,015,535 3-Year Average Production_ 289,482,891 289,417,528 289,729,875 Stocks, end of month _____ 679,356,021 728,550,731 736,910,760 3-Year Relative Stocks____ 728,715,282 Unfilled Orders end of month 228,194,910 680,767,115 216,523,096 739,147,385 190,673,190 TEXTILES With the beginning of the new cot ton season, the consumption of cotton in the United States during August, according to statistics compiled by the United States Census Bureau, increased 87,986 bales, or 20.1 per cent over the total for July, which was the lowest level recorded since September 1924. Stocks of cotton held by consuming establishments at the end of August showed a decline compared with the preceding month and with the same month last year. However, stocks held in public sto rage and at compresses at the end of August were only 704 bales smaller than a month earlier, although substan tially less than a year ago. This large decrease compared with a year ago, and the low level of exports for August, are probably due principally to the fact that this season's crop is considerably later than that of last year. The number of spindles active in August in the United States increased 15,484 over active spindles in July, but were fewer by 4,048,896 than in August last year. Cotton Consumption—-United States (Bales) Aug. 1928 July 1928 Aug. 1927 Cotton Consumed: Lint 526,729 438,743 634,520 Linters 68,165 62,921 76,210 Stocks in Consuming Establishments: Lint ___________________ 782,068 1,007,017 1,120,784 Linters ________________ 132,897 159,894 172,222 Stocks in Public Storage and at Compresses: Lint --------- ---------------- 1,188,861 1,189,565 2,172,945 Linters ------------------------38,091 44,589 44,667 Exports ---------------------------259,489 341,849 340,311 Imports ---------------------------25,258 18,473 28,041 Active Spindles _____________ 28,243,508 28,228,024 32,292,404 Cotton Growing States (Bales) Aug. 1928 July 1928 Aug. 1927 Cotton Consumed -------------- 403,888 331,961 464,198 Stocks in Consuming Establishments 428,605 613,618 670,554 Stocks in Public Storage and at Compresses ________ 1,088,949 1,036,183 1,866,166 Active Spindles __________ 17,723,122 17,674,582 17,650,760 Cotton Consumption Cotton Cloth Reports for August were rendered to the Federal Reserve Bank of At lanta by mills in the sixth district which during August manufactured 31.3 million yards of cotton cloth, an output 14.8 per cent greater than in July. Shipments by these mills increased 10.5 per cent over those in July, and orders booked increased 54.8 per cent. August production and shipments were slightly greater than in August last year, while orders show an increase of 76.2 per cent. Unfilled orders on hand at the end of August increased 2.3 per cent over July, but were smaller than a year ago. Stocks on hand, and number of workers, increased in both instances. August 1928 compared with: July 1928 Aug. 1927 Production _____ +14.8 + 0.2 Shipments _____ + 10.5 + 1-7 Orders booked__ +54.8 +76.2 Unfilled orders __ + 2.3 —26.0 Stocks on hand __ + 3.1 +59.1 Number on payroll + 1.3 + 1-2 Cotton Yarn August production by cotton mills in the sixth district which produced approximately 7 million pounds of cotton yarn, show an increase of 20.5 per cent over July, and of 1.0 per cent over August 1927. Shipments in Au gust show increases over both periods under comparison. Orders booked in August exceedeed those in July but were smaller than in August last year. Unfilled orders declined slightly compared with July and were 10.4 per cent less than a year ago. Stocks were smaller than a month ago, but greater than a year ago, and number of workers in creased over both of those periods. August 1928 compared with: July 1928 Aug. 1927 Production ........ . + 20.5 + 1.0 Shipments _____ +14.9 + 2.7 Orders booked ---+23.1 —22.4 Unfilled orders _ — 0.5 —10.4 Stocks on hand_ — 5.2 +28.6 Number on payroll + 0.8 + 2.1 MONTHLY REVIEW Hosiery Figures reported to the Census Bureau by 36 identical establishments manufacturing hosiery in^ the sixth district indicate increases in August over July in production, shipments and orders, but declines in ^stocks on hand, cancellations and unfilled orders, as evidenced by the totals shown below? (Dozen Pairs) Aug. 1928 July 1928 Production ___ -------------637,830 503,618 Shipments ___ -------------750,782 560,859 Stock on hand -------------- 1,579,458 1,684,978 Orders booked __ -------------667,217 607,546 Cancellations _ -------------26,275 26,933 Unfilled orders -------------827,789 946,722 Cotton Seed and Cotton Seed Products (1)Sixth District United States Aug. 1 to Aug. 31 Aug. 1 to Aug. 31 1928 1927 1928 1927 Cotton Seed, Tons: Received at mills ___ 6,692 63,682 169,498 275,505 Crushed .................... 5,704 46,234 73,795 159,856 On Hand Aug. 31 ...... 5,579 43,129 117,484 205,433 Production: Crude Oil, lbs. ____ 20,863,435 46,157,477 Cake and Meal, tons _ 34,760 72,264 Hulls, tons ______ 20,497 45,334 Linters, bales .......... 13,948 24,789 Stocks: (2) (2) Crude Oil, lbs 12,338,752 13,497,483 Cake and Meal, tons __ 19,794 44,142 Hulls, tons ________ 26,601 145,084 Linters, bales ______ 40,103 28,658 (1) Georgia, Louisiana and Mississippi. (2> Not including stocks held by refining and manufacturing estab lishments, and in transit to refiners and consumers. COAL According to statistics compiled and published by the United States Bureau of Mines, the production of bitu minous coal in the United States during August totaled 41.108.000 tons, an average of 1,545,000 tons per day for the 27 working days in August. This is an increase of 13.3 per cent in total production over July, part of which may be accounted for in the fact that July had only 25 working days, but the average output per working day in July was 1.451.000 tons. August production this year was smaller by 1.4 per cent than during the same month last year. Weekly figures for Alabama show production at a lower level each week during August this year than last year, while production in Tennessee during August has been greater than during that month last year. Total produc tion during the calendar year to September 8, approxi mately 212 working days, amounted to 321,699,000 net tons, compared with 363,294,000 tons produced to the same time in 1927. Weekly figures since the beginning of Au gust are shown below with comparisons: United States Alabama Tennessee 1928 1927 1928 1927 1928 1927 Aug. 4 .... 8,757 8,495 290 352 97 92 Aug. 11 _— 9,002 9,093 289 365 104 95 Aug. 18 - 8,959 9,140 271 387 101 91 Aug. 25 ... 9,276 9,742 279 398 105 98 Sept. 1 9,436 9,760 315 395 99 88 Sept. 8 —™ 8,935 8,980 308 346 107 95 IRON According to statistics compiled and published by the Iron Age, the total production of pig iron in the United States during August amounted to 3,136,570 tons, an in crease of 2.1 per cent over production in July, and 6.4 per cent greater than the output of 2,947,276 tons in August last year. The index number for August, based upon the monthly average for the three-year period 1923 to 1925 inclusive, was 105.0, compared with 102.8 for July, and with 98.7 for August 1927. Daily average production in August was 101,180 tons, compared with 99,091 tons in July, and with 95,073 tons in August last year. During August there was a loss of two in the number of furnaces in active operation, and on September 1 there were 183 furnaces active compared with 187 active at the same time a year ago. Statistics for Alabama indicate that pig iron produc tion in that state during August amounted to 188,896 tons, a slight decline compared with the output of 189,383 tons in July, and 11 per cent less than in August a year ago, which totaled 212,337 tons. The index number of Ala bama production in August was 81.3, compared with 81.5 for July, and with 91.4 for August last year. Furnaces in Alabama in active operation on September 1 numbered 15, compared with 16 a month earlier, and with 19 a year ago. Press reports state that pig iron buying in the Birmingham district has been stimulated by the advance in price on August 24 from $15.50 per ton to $16.25 per ton, and that some consumers have contracted for the rest of the year at that figure. Inquiries have increased and more interest is being shown in the market than for some time past. NAVAL STORES Receipts of both turpentine and rosin at the principal markets of the district during August declined in com parison with July, and were smaller than for August a year ago. The decrease is attributed to the heavy rains which fell over a large part of the producing territory in Florida, South Georgia and Southern Alabama about the middle of August, and prevented work for several days. August receipts of turpentine were 8.4 per cent smaller than in July, and 10.6 per cent less than in August last year, receipts of rosin were only two per cent smaller than in July, but were 8.3 per cent smaller than in August 1927. For the Naval Stores season to date, April-August, receipts of both commodities have been somewhat less than last year, but larger than during the same period of any other of the past ten years. Press reports indicate that at the time of the unfavorable weather in the middle of August prices of both commodities showed strength, but the lat ter part of August prices of both turpentine and rosin sagged, and on September 5 turpentine had reached 45 cents and the various grades of rosin were at the lowest in recent weeks; some recovery was shown during the balance of that week. Receipts and stocks at the three principal markets of the district are shown in the table. Aug. Receipts—Turpentine Savannah ..................... ............ Jacksonville .............. _______ Pensacola ------------ --- _______ Total „ _ ........ ______ Receipts—Rosin Savannah --------------- ______ Jacksonville .............. .............. Pensacola ................... .............. Total ............. . .............. ... Stocks—Turpentine Savannah ...................... ______ Jacksonville .................. ............. Pensacola __________ ______ Total _________ ______ Stocks—Rosin Savannah ..................... ............. Jacksonville .................. ______ Pensacola ---------------- ______ Total 1928 July 1928 22,980 23,690 13,817 16,618 5,927 6,329 42,724 46,637 Aug. 1927 25,825 15,750 6,234 47,809 81,512 78,135 84,188 46,913 52,033 56,096 16,932 18,082 18,280 145,357 148,250 158,564 23,571 19,677 28,880 28,286 30,385 25,791 21,447 19,183 7,244 73,304 69,245 61,915 126,928 98.956 114,579 77,533 59,313 72,241 23,056 19.956 12,063 227,517 178,225 198,888 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 wholesale trade are based upon sales figures reported con fidentially by representative firms in the lines of trade indicated, and the other series of index numbers are based upon figures reported to the bank or currently available through 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________ :__________ RETAIL TRADE U. S. (1) Department Stores—. Mail Order Houses— Chain Stores: Grocery 5 & 10 CentDrug _____ Cigar _____ Shoe______ Wearing ApparelCandy _________ WHOLESALE TRADE 6th DISTRICT Groceries _______________________ Dry Goods_______________________ Hardware_______________________ Furniture _______________________ Electrical Supplies________________ Shoes __________________________ Stationery ______________________ Drugs TOTAL WHOLESALE PRICES U. S. (2) Farm products—_____________ Foods _____________________ _ Hides and leather products.. Textile products _________ Fuel and lighting________ Metals and Metal products.. Building materials_______ Chemicals and drugs_____ Housefurnishing goods___ Miscellaneous __________ ALL COMMODITIES______ BUILDING PERMITS 6th DISTRICT Atlanta _________________________ Birmingham _____________________ Jacksonville _____________________ Nashville________________________ New Orleans ____________________ Other Cities_____________________ DISTRICT (20 Cities)_________________ CONTRACTS AWARDED 6th DISTRICT COTTON CONSUMED: United States_______________________ Cotton-Growing States All Other States..______ Exports________________ June 1928 122.9 106.1 100.0 91.0 86.2 100.5 98.0 July 1928 99.0 85.7 65.8 71.0 68.9 75.5 77.0 August 1928 129.7 92.7 66.9 97.6 72.9 72.3 87.1 103.4 127.0 77.7 119.1 207.1 139.3 161.9 107.8 146.7 216.1 121.5 July 1927 88.5 86.5 66.1 66.4 67.8 78.9 76.0 84.7 126.8 101. 107. 75. 93. 89.0 105.0 198.5 128.4 163.8 100.0 115.9 180.4 117.5 204.5 133.5 169.1 104.4 108.8 196.7 122.6 178. 178. 136. 109. 118. 172. 114. 167. 121. 141. 111. 109. 157. 112. 170.0 130.0 140.0 106.0 101.0 165.0 110.0 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 87.3 103.5 90.9 108.4 88.5 104.6 108.0 115.2 94.0 87.9 76.1 82.1 77.4 78.5 79.0 64.7 105.3 83.4 77.2 84.9 81.2 72.0 79.5 75.3 63.2 105.9 80.2 87.0 143.1 96.1 101.3 78.0 121.5 97.6 114.9 99.7 106.7 100.3 123.7 96.3 82.1 98.7 93.9 94.9 97.0 82.2 97.6 107.1 102.3 124.4 96.8 82.8 98.6 94.4 94.5 96.9 80.8 98.3 107.0 104.1 121.0 96.3 84.6 100.4 94.6 94.7 97.2 79.3 98.9 96.5 94.4 107.3 94.3 84.2 98.2 94.6 95.8 98.0 90.2 93.8 97.6 93.9 111.7 94.3 84.2 97.7 93.7 95.3 98.0 89.3 94.1 102.2 94.2 111.7 96.2 84.1 98.0 92.9 95.4 98.6 89.9 95.2 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 54.2 92.4 72.3 82.0 79.1 70.4 72.8 61.2 113.5 131.6 65.4 76.8 62.0 75.6 60.7 89.3 155.4 158.1 116.0 58.4 82.1 65.8 87.8 139.0 60.9 148.2 60.9 80.8 81.5 91.2 81.3 88.9 80.0 80.3 100.4 112.2 74.5 74.5 86.3 95.0 67.2 55.6 103.6 115.6 77.3 42.2 130.4 135.8 118.3 78.4 112.0 118.9 96.8 63.3 124.6 132.9 106.5 55.4 98.8 89.9 98.7 91.4 65.8 66.9 PIG IRON PRODUCTION: 103.4 105.0 102.8 United States__________ 103.2 94.8 81.3 81.5 Alabama_____________ 86.4 UNFILLED ORDERS—U. S. STEEL 63.9 74.8 76.2 CORPORATION_________________ (1) Compiled by Federal Reserve Board. (2) Compiled by the Bureau of Labor Statistics. Base 1926—100. August 1927 109.1 94.9 73.9 92.4 75.1 78.5 86.0 June 1927 108.6 107.0 100.6 88.7 93.0 96.6 99.0
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