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T h e M o n t h l y BUSINESS REVIEW Coming Iwsiness a dindustrial conditions in the RmrthF&erdReserveDistrict n FEDERAL RESERVE BANK of CLEVELAND DX.W ills, Chairman of th« Board (COMPILED MARCH 20, 1922) VOL. 4 CLEVELAND, OHIO, APRIL 1, 1922 I f any doubt remains as to whether or not the business outlook is growing brighter, all that is necessary to dispel that doubt is to read a few of the many encouraging reports received this month from men who are in close touch with the situation. The best part of it is that the reports are conservative. A few months ago when busi ness prospects were clouded the reports certainly were not colored to reflect conditions any better than they were, as pessimism was then prevalent. Now, however, a big majority of our correspondents feel that they can report in a more optimistic vein and have their reports substantiated by facts. Of all the intricate mechanism in business, the human machine is the most sensitive. It quickly reacts to rumors good or bad. But the state of mind of the country as a whole is more stable. It has a tendency to run in a pretty well defined channel, even though such a channel in the past may have led too far. People now believe that better times are ahead, and it will require some thing more grave than is in the business horizon now to change that idea. A feature of outstanding importance in the re ports last month was that stocks quite generally are low. This is even more in evidence at the present time. Indeed it is difficult to pick out any particular industry where the buying is not reported to be on a hand-to-mouth basis. This is the strength and hopefulness of the revival going on in many lines of business. The movement is continuing despite decreases in inventories and without any stocking up program in evidence. That a time is approaching when hand-to-mouth buying will change to that of purchasing for busi ness in prospect instead of only for present orders, there is no doubt. No general statement can be No. 4 made in prediction when that time will arrive. Part of the sea, at least, is safe, and boats can now travel there confidently. The rowers of the boats will know when the waves have subsided on that part of the sea not yet entirely calm. One of the interesting developments of the past few weeks is the decided improvement in the motor truck industry. Tire manufacturers advise us that many motor trucks which have been idle for the last year and a half are now going into commission. Aside from the direct benefit of truck tire sales, this is a very decided indication of the increase in the general volume of business. Notwithstanding that the almost unanimous opin ion of those business and financial leaders in this district that write to us every month now is one of optimism, we are keeping in mind the coal strike scheduled for April 1 and a few other factors of an interesting character which are capable of inter rupting the progress of a return to normal busi ness. Bankers, merchants, and manufacturers will therefore keep their houses in order, first: to take advantage of all desirable business that presents itself to them, and second: to maintain such econ omy and efficiency of operation as will insure con tinuance in business even though there may be temporary interruption in the upward swing now under way. The kind of optimism we recommend is described by one of our correspondents as the kind of optim ism he possesses, being most enduring, but of the perennial rather than the night-blooming specie. Progress never has and never will result from spasmodic jumps in business, but it would appear that a conservative and yet broader outlook can be taken of business today. City Bank Loans Show Further Drop; Decline in Country Bank Borrowings Less Noticeable The demand for accommodations from both city and country banks for the past month ending March 20 showed a slight fluctuation, but as was the case last month the general tendency has been downward. The city banks led in the decline, the drop in ON PAGE 12 APPEARS A STORY OF THE COLLECTION DEPARTMENT OF OUR BANK. THE M O N T H L Y BUS I N E S S REVIEW 2 rediscounts from February 20 to March 20 being approximately $14,000,000. The high point in city bank borrowings for the month was reached on February 25 and the low point on March 16. Loans to city banks on March 20 showed a slight increase, but so far no particularly heavy demand has been in evidence as a result of income tax payments. The decline in country bank borrowings has not been so marked as that of the city banks, and for the month ending March 20 amounted to about $500,000. The high point in borrowings for the month was also reached on February 25, as was the case "with the city banks, but the low point came on March 2. There are indications that preparation for spring crops and the buying of stock for grazing, will necessitate some additional borrowing on the part of banks in agricultural sections. The reserve ratio of the Federal Reserve System showed a very slight increase during the past •month. On February 20 it was 78.7 per cent and on the 20th of this month it stood at 79 per cent. The reserve ratio of this bank for the month has also shown very little change. On February 20 it was 78.5 per cent, and on March 20, 78.7 per cent. Based on reports from 17 large savings banks and trust companies in the Fourth Federal Re serve District savings deposits at the end of Feb ruary, 1922, were 5.4 per cent less than on the same date in 1921, and 0.3 per cent less than on January 31 of this year. Dealers’ comments on the acceptance market for the past month were that during the earlier part o f the month bills were offered quite freely and indi cations showed general improvement. As the month progressed the demand fell off until there was very little activity. Near the middle of the month brokers’ portfolios were well filled and there was ample variety to meet the demand. There was a preference shown for the short time bills. Dur ing the last ten days rates dropped from 4-4% per cent to 3^-4 per cent. From our own observations the supply of bills was somewhat improved over the previous month. Generally speaking the supply was in excess of the demand in this District throughout the month. The market was very dull during the entire month. Rates from 4-4 did not appear to attract buyers of this District, and when these rates dropped during the last week to 3^-4 per cent, very few bills moved. Bills offered in the market were based on stor age of pig iron, crude oil, grain, steel; domestic shipments of coal and wool; importations of w ool and woolen rags and coffee and paint exports. Although borrowings in this District have con tinued to decline and deposits show no material change, the market has not improved, indicating that funds are being diverted to other uses at more attractive rates. The dealers have been carrying somewhat larger portfolios during the last month than usual. Iron and Steel Buying Spreading Out; Pig Iron Production Gains; Steel Prices a Little Firmer Business in iron and steel has continued to de velop and there is substantial ground for the state ment that the situation is the most hopeful in more than a year. During the past month buying has spread out in a number of directions where it was only done lightly or not at all in the recent past. This is furnishing indications ‘both of a gradual expansion of business activity in various lines and also of better confidence. Symptoms of the stronger faith in the outlook are shown by the resumption in some degree of future contract ing in steel supplies, principally by the manufac turing consumers for at least three months ahead and by more liberal purchases by jobbers to re plenish depleted stocks. A firmer belief that prices are substantially at the end of the liquidating movement is influencing the return of buying of this character. Generally the broadened activity of the demand for steel can be attributed to the miscellaneous re quirements of a wear-and-tear order, plus certain definite classes of buying for renewals and expan sions such as is to be noted from the railroads, in general building construction, etc. The railroads continue to be the market’s prin cipal buying factor in the way of tonnage. This is illustrated by the fact that total orders for freight cars placed by the railroads during the first two months of this year totaled approximately 2 6 000 which is as many as were ordered throughout the 12 months of 1921. From 10,000 to 15,000 cars in addition now are in the negotiation stage. Other forms of railroad buying are keeping up well and a number of new construction undertakings are appearing from this source. The farming imple ment situation looks better than seemed possible only a few weeks back and indications are that •the manufacturers will be called upon to map out considerably larger production programs for the next year than was anticipated. The automobile industry through its increased activity is provid ing the mills with a growing amount of tonnage in certain lines. Mill bookings have been better in the Chicago and middle western districts than in the east be cause of the fact that the main buying that* has been done has been centralized in the former ter ritory. Eastern tonnage, however, is also show ing a substantial growth. Some of the western mills have been entering orders several times larger than the average rate of 1921 and it is necessary to go back to the fall of 1920 for an equal com THE M O N T H L Y B USI NESS REVIEW parison. Operations have been steadily raised on all sides until the average for the country at the middle of March was substantially 60 to 65 per cent of ingot capacity. The output of the steel works in February was at the rate of 26,810,000 tons annually, compared with 22,640,000 tons in January. This represents a rate of 61.5 per cent of the maximum yearly production on record, that of 1917. Pig iron production as compiled by The Iron Trade Review in February showed a further gain in the daily output from 53,090 in January to 58,220 tons, representing the seventh consecutive monthly increase. The daily rate of production of pig iron in February was the largest since February, 1921. Due to die smaller number of days, how ever, the total figure in February was less than for January. February production totaled 1,630,180 tons compared with 1,645,804 tons in January. The number of furnaces in blast at the end of Febru ary was 139, a gain of 12 in the month. Prices of steel show a firmer undertone, par ticularly after the lower figures which the market has recently witnessed as a result of a selling drive carried on by certain of the independent mills. In this campaign prices on plates, shapes and bars, were cut from $2 to $3 under the previously estab lished minimums. These mills having accumulated a round tonnage of business recently withdrew their lower prices and established their schedules at $2 higher than the general market basis prior to their period of intensive selling. A number of the other independent mills have followed this 3 example. The Steel Corporation and certain other mills, however, continue to quote the levels which they have been pursuing for some months, so that until these producers definitely raise their schedules the market cannot be considered as 'having under gone an actual advance. It is clear, however, that the situation in various products is firmer^ than it has been for some time and that concessions are less freely granted by the producers or expected •by buyers. The market composite of 14 iron and steel products compiled by The Iron Trade Review reflects this situation by its more stationary char acter. The average for the week of March 15 was $32.87, compared with an average of $32.86 in February, $33.45 in January, $33.99 in December and $27.93 in March, 1913. The high point of the market was October, 1917, with an average of $89.69. The pig iron market has been considerably more active starting from about the middle of February. Total sales for February by some leading mer chant producers were the largest since April, 1920, and shipments have been keeping up in like pro portion. A similar situation is reported by most of the furnaces. The volume of business in March has been well sustained. Prices are a little firmer in spots especially where the competition from steel works furnaces, which has been a disturbing fac tor in recent months, is now disappearing because of the fact that these latter producers are requir ing more ■metal for their own purposes. Lake Trade Looking Up; Ore Stocks at Lake Front Decrease; Coal Carriers Take on Cargoes The lake trade continues to look up and while ore. According to estimates of shippers the mines little business has been lined up for the coming in the Lake Superior district will send forward be season there is a better feeling all around. With tween 35,000,000 and 40,000,000 tons and some men a steady increase in the number of furnaces in blast, in the trade are quite confident that the top figure more ore is being used, and in some cases pig will lie reached. The increase over last season will iron is being shipped faster than it is being pro furnish employment for considerable tonnage and duced. The movement of ore from the Lake Erie more railroad equipment will be required in the docks to the furnaces is still light and no improve trade. The start will be slow and little if any ore ment along that line is expected until April 17, will be shipped in April. when a cut of 20 per cent will be made in the rail Grain for opening shipment is being offered, but rate and handling charges at this end of the route. little chartering has been done lately as some of Most of the plants have a good supply on hand and the vessel men will not take business that will will only take forward ore that is needed for mix force them to send their boats out at the opening. tures. Although shipments from dock have been Stocks at Lake Michigan ports, Duluth, and Fort small since January 1 there is less ore in store at the lake front than there was a year ago. On William, are heavier than they were a year ago March 1 the stocks were 8,057,958 tons and on the and the trade will take care of considerable ton same date in 1921 the docks were holding 8,699,284 nage. There is a large amount of grain stored in boats at Lake Michigan ports. The holding time tons. The indications are that the buying movement on some boats that have storage cargoes at Lake will be slow in starting but the general opinion is Erie ports has been extended from April 1 to that shipments will show a good increase over May 1, and one boat that is at Cleveland will hold 1921 when the fleet only moved 22,300,726 tons of her cargo until May 15. THE M O N T H L Y 4 BUSI NESS REVIEW Improvement in Manufacturing Lines Continues; Probably Less Marked Than That Noted Last Month A month ago reports from our correspondents on manufacturing conditions throughout the Fourth Federal Reserve District quite generally indicated a decided improvement. That this improvement has continued in a conservative way is shown by many cf the reports this month, but it is doubtful if the betterment measures up to that of a month ago. Present automobile production is looking better than it did a year ago, and there is a pretty good feeling in the trade. As is customary at this time of year plants are increasing their output. Production in Fourth District plants is increasing and this is also true of the output in the United States, The buying by the dealers is made pretty generally against sales rather than for stock. The following interesting figures compiled by the Automobile Chamber of Commerce show the total registration of cars in the United States for the last year of each of the five-year periods covering the last 30 years, and for the year 1921: 1895 ........................................ 300 1900 ........................................ 13,824 1905 ........................................ 77,988 1910 ......................................... 468,497 1915 ......................................... 2,445,664 1920 9,211,295 1921 9,245,195 The motor truck industry is steadily improving, Orders are showing some increase and the feeling among branches and dealers is very optimistic, Buyers are still conservative and up to this time are ordering practically nothing for stock. Rather there is a strong tendency to carry an absolute minimum and trust to manufacturers to make prompt shipments. The improvement of conditions in the grain belt is reflected directly in collecrions and in the general tone of the market in those sections. A definite change for the better has taken place in the automobile body business. A large local plant is now running at capacity. While most of the business is for the purpose of balancing inventory or for temporary stocks, the volume of these orders is gradually increasing, and it is encouraging to note that some of the inquiries received indicate a preparation for heavier buying. The automobile axle business has changed little during the past month. Buying is largely for immediate requirements and the schedules for months ahead such as manufacturers formerly worked on, are lacking. It seems to be the consensus of opinion at the present time that business is running near the level of last year in volume. During the months of January and February a special effort was made in the storage battery business to increase sales, which are usually quiet at that time. This effort was for the purpose of avoiding the peak which occurs in March and April. It is an indication of the condition of stocks as well as the frame of mind at the service stations, that this plan was carried out successfully. Sales at the service stations appear to be greater than they were a year ago. New business is coming in from the rapid growth of the radio. The encouraging developments of the past months in the paint industry, are continuing. Manufacturers are enjoying a big increase in sales over the corresponding period for last year. Orders are more diversified and the goods are being ordered in larger volume than for many months. Business in the dealers trade throughout the United States is showing a marked improvement, and this is true not only in the manufacturing centers, but also in the agricultural sections. The increase in the volume of orders from the manufacturing trade is particularly noticeable in automobile lines, structural iron metal lath, and the furniture trade. In the hardware manufacturing business there does not seem to be much change in the situation Quite a large number of orders are still coming in 'hut they are still showing the same kind of co n servatism that has been in evidence for some months back. No particular change has been noticed in the cork industry during the past thirty days. Buyers, as ® rule, seem to be placing orders a little more freely. Prices are low and do not show any tendeilcy to stiffen. ln the printing and lithographic ink business manufacturer sees an improvement over conditions existing twelve months ago, but nothing verv marked in the improvement. As compared with the same period a year ago there is a better outlook in the line of printers’ supplies, but on varnishes, carbon papers, typewriter ribbons, etc., the demand has fallen off. In the tool manufacturing line customer* o buying tools as they need them, and are balanr?«» their stocks but not enla i th e d a n c in g . « . • . • t S It^ t,on ,n the farm machinery line !ias changed to any great extent. The reports from the agricultural sections, however, are growe‘ an< a ,ltt^ sPr* e n£ demand is evidence. A. large hydraulic pressed steel concern reports very definite and positive business improvement in all of their plants. However, customers are still ordering closely to their needs, Plate glass business is very good. The dema d is scattering and glass is being purchased for im mediate use. This is looked upon as buying of very good character as no glass is being bought f * speculative purposes. THE M O N T H L Y BUS I NES S REVIEW Production of Crude Oil increased During February; Gasoline Stocks Held By Jobbers Light An encouraging sign that the revival of indus try is proceeding, is seen in the oil industry. There was a slight increase in demand during February for steam cylinder oil and other products used al most exclusively in mills and manufacturing plants. The viscous neutral oils used chiefly in the manu facture of motor oil also strengthened considerably. Stocks of gasoline were low at all the independent refineries, making it possible for the refiners to hold their current output, and they showed a tend ency to do this because of the evidence of a strong demand for gasoline during the spring and summer. Authentic figures on stocks at the end of February are not yet available, but it is likely that lubricat ing oils showed an increase during February, and it is certain that stocks of gas and fuel oil in creased, largely due to very slow demand. Kero sene also moved slowly during the last month, the usual seasonal demand failing to develop dur ing the past winter. Prices of refined products during February were on an ascending scale as compared with January but the increase was very slight. Uncertainty on the part of the jobber who retails to the public, as to whether or not there would be further reductions in prices of crude oil, has led him to hold off on purchases for spring and summer business. The export demand showed little, if any, improvement over January. None of the refineries that were reported shut down in January, resumed operation in February and more of them suspended activity in that month. This fact has kept down the out-turn of refined products which, rather more than increased de mand, was responsible for strengthening prices in February. Uncertainty as to the stability of crude prices at their present level is still a dominating factor in keeping buyers of petroleum products out of the market. The unwillingness of the big purchasing companies who set the price of crude at the wells, to reduce the present posted prices, seems to be indicated by the fact that these companies are erect ing large steel storage tanks for crude, to accom modate the surplus which they purchase. One of these big companies bought during February, more than 3,000,000 barrels capacity of steel tankage which it is erecting in the Mid-Continent field. It is believed in the industry that reduction in the posted price of crude at this time would tend to discourage the producers, and cause them to slow up their operations this summer, with a tendency to curtail the available supply when it will be most needed. However, the development of production in the flush pools in the Mid-Continent field is increasing the daily average week by week, so that the excess of daily production over consumption by refineries, is now something like 200,000 barrels a day, and this amount is being run to storage. The jobbers over the country all winter have been buying gasoline only for current needs instead of filling their tanks during the winter season as has been the custom for years before. The reason for this was that further reductions in the price of crude were expected. For this reason jobbers find them selves in a position now of having empty tanks with the summer's business before them. Many of them each week are approaching refiners, seeking to contract for their year’s supply at a margin three and a half cents to four cents below the tankwagon price prevailing in their territory during the life of the contract. One of the most significant recent events was the advance of 25 cents a barrel on Mexia crude posted March 17 by a refining concern. This brings it to $1.50 a barrel. This advance is attributed to the fact that the company found it necessary to meet the price which is being paid by others. An important development in the producing end of the industry is a well completed in the Currie region estimated at 1 to 3 thousand barrels initial production. This calls renewed attention to this area which was regarded as highly important some months ago when the first well completed there made better than 300 barrels. A check-up by the National Petroleum News of drilling wells there, has revealed evidence of a possible fault line such as governs the big accumulation at Mexia, and if this theory is borne out, another highly flushed pool may be reckoned with, with the result of a large increase of daily production. While the daily production of crude oil over the country increased largely during February, the imports of crude from Mexico fell off about 2,000,000 barrels, the total imports during January being about 18,000,000 barrels as against approximately 15,000,000 barrels for February. Leading oil geologists of the country in conven tion in New York late in February, estimated that production from Mexico is likely to reach an almost negligible amount by June 1 and the industry be lieves this will have its effect toward stabilizing domestic crude. In fact, the increase in the posted price of Mexia crude is attributed in a large meas ure to the need of eastern standard refineries to find a new source of raw material as a substitute for the Mexican crude on which they have been operating, and which is now beginning to decline. THE M O N T H L Y BUS I N ES S R EVI EW 6 Canning Industry Shows Marked Improvement Over Last Year; Food Product Salesmen Feel More Confident The canning industry is realizing a fair share of 1 to 8, covering the entire United States, was an the improved conditions in evidence throughout the eminent success. Large quantities of canned fruits country. While the sale of canned foods continues and vegetables went into the hands of the con in a conservative way and quite generally in small sumer. quantities, the aggregate amount of such sales Prices of the three staples, corn, peas and toma shows a very marked improvement over a few toes, have advanced some within the last week but months ago. to no large extent. The sales of the new pack, or that for 1922, are The satisfactory conditions in the food products reported by a large canner to be very gratifying. industry which have been in evidence for some A year ago the wholesale distributors were very months, are continuing. Business in February is reluctant about making future purchases. This reported as being exceptionally good. Salesmen year they are buying in satisfactory quantities. are growing more confidence and feel that the % ad Stocks of canned goods in jobbers’ warehouses spots” in their territories are gradually improving. are low and buying for replacement is more no Collections in this direction are not quite so good ticeable than it has been for so-me weeks. Men in as they were last month, as some merchants are the industry believe there is not enough goods in having difficulty in meeting their obligations. the canners warehouses _to last until the packing Tin can manufacturing business is good, but there season for this year begins. is no particularly strong buying demand on the “ Canned Food Week” which lasited from March part of the trade at present. Building Wage Agreements Still Clouded; February Permits Show Gain On account of the unsettled condition in the building situation, due to local strikes, it is difficult to give a definite summary at this time. Aside from this uncertain factor, reports for the most part indicate very satisfactory building prospects When the spring operations get under way. Reports from thirteen of the larger cities in this District on building operations for the month of February, show an increase in total valuation of $1,533,372 this year as compared with 1921, or 24 per cent. Reports from the same cities for January showed a decrease of $29,799, or 0.5 per cent. The total value of construction permits issued in 141 cities of the United States as reported by Bradstreet's for February was $122,684,719, which com pares with a total of $129,555,404 for the same cities in January, and with $73,882,628 in the month of February, 1921. This is a gain of 66 per cent over February last year. In another part of the Review may be found a table showing building operations in the Fourth Federal Reserve District for the month of February Situation in Paper Industry Shows Little Change; Stocks Low; Pulp Mills Run Slow January was a very poor month for the paper in writing tablets, envelopes, and box stationery, has dustry. February brought quite a noticeable im continued in fair volume. There is also a good de provement, but reports this month do not indicate mand for paper used in making magazine cover® that the trade has continued the favorable move and for direct mail advertising. ment shown a month ago. According to a report of the American Paper and Orders to the mills making fine paper are not Pulp Association, an increased use of wrapping quite so heavy this month as they were in Febru paper is made possible by a change in the rulings ary, but wholesale paper dealers seem to be doing relative to the express shipments of packages a little larger business which means more orders for wrapped in paper. The new rule specifies that the the mills. maximum weight of paper-wrapped packages, Many of the orders coming in are for very small which to date has been 25 pounds, shall hereafter tonnage and for the most part are for the replenish be 35 pounds. ment of depleted stocks. It is the belief in the Pulp mills are running far short of capacity and trade that all stocks in the hands of distributors unbleached pulp is selling at a low price. Bitched and consumers are low. Manufacturers are not in pulp is firmer in price than unbleached. favor of an unjustified spurt in buying to fill up Conditions in the paper box board industry have depleted stocks or to meet printing orders, but they not changed materially from what they were a prefer rather to see a gradual increase in the size month ago. The demand from confectioners is pick of orders being placed. ing up as that trade is now getting readv for the Business in the different grades of fine paper, Easter demand. THE M O N T H L Y B U S I N E S S R EVI EW 7 Rubber Industry in Good Position; Business in Mechanical Rubber Goods Picks Up; Sales of Truck Tires Increase The forward movement in the rubber industry that started several months ago is continuing in a satisfactory manner, especially when the season of the year is taken into consideration. While there has been no marked increase in output this month in comparison with the past few months, an estimate of the advance can be gained by comparing the present output with that of a year ago. Official figures show that during March, 1921, a total of 1,163,000 tires were made in this country, while unofficial but reliable estimates show that during the present month production in the Akron district alone will exceed 1,500,000 tires. Reports that many pleasure cars and trucks which were idle last year are going to be put into operation again, are numerous. There has been more activity in the automobile truck tire field during the past month. One com pany which introduced a new combination pneu matic and solid truck tire a month ago, reports that sales have been very gratifying. Sales of mechanical rubber goods have increased and the late winter season has brought out a larger number of drug sundry orders. The improved con dition of the lumber industry has resulted in more buying of boots and shoes by the lumbermen work ing in the forests. This is also true of the agri cultural sections of the country and is becoming more evident as the farmers prepare for the spring work. In the periods of good weather within the past few weeks, car owners have started to “ tune up” their machines and purchase new equipment. As spring advances the merchandise on the dealers’ shelves is moving more rapidly which in turn means the placing of replenishment orders. Some replen ishment buying is now in evidence but not suffi cient to create much change in the sales volume. An encouraging feature during the past thirty days is the noticeable improvement in western agri cultural districts. Dealers in these sections are placing stock orders, indicating that their inven tories have been liquidated. At present the fabric market is very dull. Most of the mills report only hand-to-mouth buying in the middle west, but some better buying has been reported in the east. The India Rubber Review states that with the bottom reached not only in market prices but amount of material carried, it is doubted if fur ther reductions will be registered in the current assets of the rubber companies. The remarkable feature of the entire industry is the losses which have been taken by a comparatively new industry with as little resulting disaster as occurred in the industry during the past year and a half. Little Change in Textile Industry; Spring Activity in Fancy Knit Goods; Re-orders Slow in Underwear Business Conditions in the wool textile business do not appear to be very well in line with the upward trend in industry throughout the country. Quite a lot of textile machinery is idle and the trade is not expecting any immediate improvement. The textile business is largely seasonal, and the orders for the heavy-weight season, which is next fall, up to this time have been very light. The men’s clothing industry appears to be be tween seasons at this time, although the last week or two seems to show indications of the opening up of retail business with a noticeable demand for certain kinds of goods. It is still too early to de cide the true character of the season, except in the south and southwest. Manufacturers are looking not only to the final development of the spring season but in two or three weeks will have their salesmen out with fall lines. It is expected in the trade that fall bookings will depend to a certain extent upon the amount of spring business retailers will have done by that time, as a reasonable volume of spring business will naturally encourage fall buying. One of the principal activities in the fancy knit goods end of the clothing industry, is in spring goods for immediate delivery, as jobbers stocks are light. Jobbing buyers have not as yet bought much for next fall, and in cases where they did, the quantities were very small. Jobbers at present do not appear to be v e ry anxious in regard to re-order ing goods. Re-order goods are those ordered when it is found that the supply of goods obtained earlier in the year are not sufficient to meet the demand from the consumer. In the knit underwear business when the selling is direct to jobbers, the sales are made about a year in advance of the time the underwear is required. Since the selling season for next fall has practically closed, and as it is yet too early to sell for spring, 1923, the chief interest at present is in orders for immediate delivery. Advance bookings for fall have been very satisfactory, but spring re-orders for im mediate delivery have been a trifle slow. In the union suit trade, agricultural conditions have checked the buying ability of the people in the farming sections. Iron working localities have not bought with any enthusiasm. Coal mining dis tricts have been fairly active in buying, and a very satisfactory demand has been coming from the east. The Pacific coast trade has been reasonably good and above the average. As a whole, there ap pears to be a much better feeling in this trade than there was a few months ago. THE M O N T HL Y BUSI NESS REVIEW 8 Further Improvement Shown in Transportation Situation; Raiboads Order More Cars Since the turn of the year there has been a con sistent decrease in the number of idle serviceable freight cars throughout the country. The month of March is unquestionably showing a considerable im provement over January and February of this year in the amount of traffic moving. A part of this im provement, however, is seasonable and cannot be taken entirely as an indication of the permanent re covery of business. A part of the increased car loadings is due to preparation in case of a coal strike, and to the fact that some cars are being used for the storage of coal. The following figures show the decrease there has been in the total number of idle serviceable freight cars since the first of the year: December 31, 470,- 516; January 31, 330,681; February 28, 245,100. As compared with January 1 figures, the number of cars awaiting repair on the railroads of the country has also shown a decrease. On January 1 there were 313,190 bad order cars. On the 28th of February the number had decreased to 272,867. During the week of February 25, 1922, all the railroads in the United States handled 735,286 cars of revenue freight as against 659,642 in the cor responding week in 1921, and 783,295 in 1920. According to The Iron Trade Review, railroad cars ordered in February of this year amounted to 14,520 bringing the total for the first two months to approximately 26,000. This represents as many cars as were ordered in the whole year of 1921. Seasonal Inactivity in Common Brick Plants; Interest Shown in Home Building; Hollow Tile Shipments Increase While conditions in the common brick industry have shown little change since last month the tend encies throughout the industry are steadily growing better. The office of the Common Brick Manufacturers Association of America is receiving an average of approximately 1,000 inquiries a week in response to its national advertising. This is the highest volume in any period in their campaign and indicates a greatly increased interest in home building. In the architectural department, the demand for the work ing drawings and specifications for small brick resi dences are greater than at any time since the serv ice was established. This is the season of the year when many of the brick plants are closed down on account of weather conditions, but when the spring building season opens, the trade is anticipating a better demand than at any time during 1921. Stocks, as a rule, are heavy. The hollow building tile industry was very quiet during January and February, due largely to sea sonal inactivity. At present, prospects are looking brighter, and one large concern reports shipments for March largely in excess of the same period for February. Reserve Stocks of Soft Coal Growing; Output Gains; Beehive Coke Production Increases A greatly improved demand for soft coal has been in evidence for some time, due to the expectation of a coal strike on April 1. At the present time there are slightly more than half of the mines throughout ■die country under union control. The non-union mines are capable of producing about half enough coal to supply the needs of the country at the pres ent rate of consumption. Taking this into consid eration together with the fact that consumers have added materially to their reserve stocks, it is ap parent that a strike would not result in an immed iate tie-up of industry. On January 1 of this year there were approxi mately 47,500,000 tons of bituminous coal in the hands of consumers and around 7,200,000 tons on the upper lake docks. Since that time production has exceeded consumption and exports, and much of the surplus has been going into storage. According to a late report of the United States Geological Survey, the production of soft coal con tinues to increase. The output during the week ended February 11, is placed at 11,058,000 net tons, an increase of 505,000 tons over the week preced ing. A further increase of 2,000,000 tons a week would be necessary to raise the current output to the level attained just before the mine strike of 1919. The present production is running very sim ilar to that of last September and October, when consumers were purchasing in anticipation of a possible railroad strike. The output of soft coal for the week ended February 11 was around 10326,000 tons. Final statistics of shipments of anthracite coal during the month of February indicate a total pro duction of 6,762,000 net tons, an increase of 8 per cent over January. Production of beehive coke continues to increase. It is estimated that the total output in the week ended March 11 was 154,000 net tons, an increase of 11,000 tons over the week preceding. Current production is rapidly approaching the level of the corresponding period a year ago. To equal the weekly output in 1920, however, the present rate would have to be trebled. THE M O N T H L Y BUSINESS REVIEW 9 Grain Reserves Below 1921 Peak; Much Burley Tobacco Has Been Sold The Ohio average corn price now stands at 55 There is evidence of more satisfaction in the farming business and the better feeling in the agri cents per bushel. Last year it was 60 cents and $1.45 two years ago. The state average of wheat cultural sections is steadily gaining ground. Some winter wheat has been killed due to the is $1.29 as compared with $1.70 last year and $2.31 lack of snow covering, but the damage up to this in 1920. The Burley Tobacco Growers’ Co-operative As time has not been very heavy. Near the first of March the damage was estimated at 10 per cent sociation has continued to operate in a very satis factory manner. It is now evident that the crop is and on the 14th it had increased to 14 per cent. According to the report of the Ohio Department not heavy and a large share of it has already been of Agriculture the amount of grains still remaining delivered to the Association. A large proportion of on Ohio farms is much below normal. There are the deliveries has been sold by the Association, al about 63,700,000 bushels of corn as compared with though some tobacco has been put into hogsheads 80.000.000 bushels last year and 64,000,000 bushels and is in storage. The loans of bankers and busi two years ago. Farmers still hold a little less than ness men amounting to over $5,000,000 which were 7.000.000 bushels of wheat as compared with more made at the time the Association started its opera than 9,000,000 bushels last year and 11,000,000 tions, are being repaid from the returns received bushels two years ago. Oats stocks on farms are for tobacco which has been sold. The War Finance Corporation indicated their barely half as large as a year ago and now stand at 14,000,000 bushels as compared with 31,000,000 willingness to lend up to $10,000,000 to the Asso bushels a year ago and 16,000,000 bushels in 1920. ciation, but it appears that the Association will not The Government report for March 1 this year need to avail itself of more than a part of this sum shows that in the United States the corn on farms at the present time. amounts to somewhat more than 1,300,000,000 bushels The independent sales have been practically com as compared with almost 1,600,000,000 bushels a pleted for the season. year ago—the largest corn reserve on record. The campaign for the organization of an asso The United States farm wheat reserves are esti ciation among the growers of dark tobacco in west mated at slightly more than 131,000,000 bushels this ern Kentucky has been actively started this month, year as compared with 217,000,000 bushels a year and is meeting with a very favorable response. It ago. Oats supplies are 404,000,000 bushels as com is the intent to have this organization completed in pared with 684,000,000 bushels a year ago. lime to handle the 1922 crop. A Special Survey On The Making Of Clothes Jusft about three-quarters of a century ago Elias Howe reversed a time-honored custom by threading a needle through the point instead of the blunt end. He invented a machine that would drive the needle through the cloth, to take the place of the old-fashioned method of pulling it through by hand and revolutionized the making of clothing. To the sew ing machine can be attributed the remarkable de velopment of the manufacture of ready-to-wear clothing into a giant industry, capable of supplying the average family with practically every article of wearing apparel it requires. Until the early part of the 19th century, all cloth ing was made to order. The process was very slow. The sailors who made port at some of the towns along «the Xew England coast did not have time to wait for made-to-order clothes, so a merchant who^had dealings with them hit upon the plan of making up a stock of suits. It is said he made them all of one size which, no doubt, caused considerable inconvenience to some of the wearers, 'but the plan worked out so successfully that soon other mer chants were following it. In a short time small factories were opened up in different parts of the country. The wholesale manufacture of medium grade ready-to-wear suits was begun in New York about 1835 and by 1840 it was quite generally rec ognized that the industry was here to stay. Several important factors aided very materially in the rapid growth of this new business. About the year 1850 the emigration to the gold fields of California caused a heavy demand for ready-towear clothes and the industry was given a great stimulus. The use of the sewing machine which increased the rate of sewing to 800 or 900 stitches a minute was also introduced about this time. During the Civil "War many factories were started to supply the demand for uniforms. After the war this equipment was used for the making of civilian clothing and sizes were standardized on the basis of thousands of measurements that had been taken in the course of supplying the soldiers with clothes during the war. The manufacture of women’s ready made cloaks also began about this time. Great progress has been made in the use of power machinery during the past 30 years. In 1890 only 8 per cent of all establishments making men’s clothing, and 11 per cent of those making 10 THE M O N T H L Y BUSI NESS REVIEW women's clothing were equipped with power ma chinery. Through the use of electric motors the speed of machines has been increased to between 2,000 and 4,000 stitches per minute. Electric power has also been applied to cutting and pressing ma chinery. Now a ready-to-wear garment can be pro duced in less than one-sixteenth of the time re quired by the old hand method. About 40 years ago the making of women’s cloth ing was started in Cleveland. The industry was so small that it attracted scarcely any notice, and was an outgrowth from New York, the home of the ready-to-wear garment. At that time there was a strong demand coming from the west. The tex tile industry moved to meet it, partly to reduce transportation charges and partly to be in a better position to meet the needs of the Westerners. Those pioneers could see a great field opening up through the development of the fertile farms, and they wanted to be in a position to take advantage of it. No particularly important reason has been found just why Cleveland was selected for the stopping place, although labor conditions at that time looked very favorable and the transportation facilities were not forgotten. Needless to say the choice proved to be a good one and the move brought results. The infant industry grew and today Cleveland ranks very near the top in the production of women's coats, suits, and skirts. When the size of the individual units, which make a complete circle of the manufacturing operations, is taken into consideration, Cleveland is said to hold first place. Like the other makers of clothing, Cleveland's earliest manufacturers had only a warehouse where they cut garments from the materials stored there and gave out the bundles of pieces to contrac tors who, with the help of their family or neigh bors, made them up at -home or in small shops. When the work was finished it was returned, the contractor receiving so much for each garment, and his workers were paid a certain amount from the proceeds. With the passing of the years, however, has come a marked change for the better. Leaders in this important industry, who have made a close study of the situation for many years, have found a lot of defects in this system. They say that in order for an employee to do his or her most efficient work, it is necessary that it be done under proper working conditions and that the worker must be happy and contented. This, they contend, is im possible when the work very often is done at night, under poor lighting, and in an uncomfortable shop. While this method of making clothes can still be found in various parts of' the country, the firms visited in connection with the preparation of this report, look upon this system with disfavor. These men are working hard to improve con ditions and their efforts have brought results. After a trip through some of our big up-to-date Cleveland factories, it is difficult to realize that such tilings as sweat-shops and sweating systems are still in existence. The age of an industry is usually a matter o f pride, and yet it may have its drawbacks. In de scribing their efforts to bring about various im provements in the industry, an executive in one o f our leading plants said: “ Do you know the mak ing of clothes is probably the oldest industry known to man, and yet for that very reason som e of the habits it has formed have become so deeply rooted that it is almost impossible to change o r break them? It is usually easier and more suc cessful for an architect to build a new house than to remodel an old one.” But regardless of this there can be no doubt of the progress that has been made. In the modem plants we find none of the antiquated methods but rather a standardization of work that means greater efficiency, and of equal importance, greater con tentment. In place of the old method where one worker sewed on a single garment until it was com pleted, each person has a special work to perform. The workers are chosen as to their ability, and with practice soon develop speed and skill. Ca pable supervision, proper remuneration for the work, and the near-human machines, all play an important part and enable the many operations to be carried on with a speed and exactness that is truly amazing to the visitor. Under the new system the individual responsibility of each com pany tends to improve the quality of the product. Garment making may be divided into five prin cipal kinds of work: designing, cutting, sewing pressing, and examining. The designer is the autocrat of the garment in dustry and the success of his employers depends largely upon his ability to gauge and satisfy the whims and fancies of the purchasing public. His duties are threefold,—to develop the style for his company, make the patterns by which the garments are cut, and plan these so as to avoid any un necessary waste of cloth. Far in advance of the season it is necessary to determine the lines that are to prevail, the fullness of the coat, the length of the skirt, etc. A sample suit is made, and if it meets with the approval o f the management, ’ a master pattern is made for the use of the cutters. There is a wide difference in the designing o f men’s and women's garments. Men’ s clothing changes very little from year to year and has gradually become standardized along certain lines The result is that more attention is given to com fort and correctness of line, than to novelty Novelty is one of the main requirements in women's garments, and the designer has a difficult job on his hands, to produce styles that will please the buyers, and at the same time be economical in the use of materials and labor. Styles change rapidly that a designer must be very wide awafc^ to keep his firm in step with them. The following figures give some idea of what it means to please the public: The year is divider! into two seasons—spring and fall. In one season THE M O N T H L Y B U S I N E S S R E V I E W the designers may work out 200 different clothes models. These models made up into five different cloth colors would mean 1,000 models. Seven standard sizes would increase the number to 7,000. Then taking the two seasons of the year into con sideration, another 7,000 would be added which means 14,000 models in a single year. Since the styles change so rapidly a garment held over means rapid depreciation in value. Al though it is necessary to have enough goods on hand to supply the needs of 'the customers, a part of the danger of overstocking can be avoided in the following manner: Before the season starts, salesmen are sent out with samples of What the styles are going to be. The buyers may not or der a complete line of goods and 'by watching the fancies of the public closely, they soon find what particular styles are going to be the “ big sellers” for the season, and then send in re-orders. It is very interesting to note in this connection that Cleveland concerns were among the first to start the policy of sending salesmen on the road rather than wait for buyers to come to the factories. The latter system meant two rush seasons with factories unable to meet the seasonal demand, while with the former method, clothing houses can plan their work ahead and extend it over a greater part of the year. The cutting process is an important one. The cloth is first laid flat on the table, one layer when the suits are being cut for individuals, from four to six layers for garments of thick materials, and from 20 to 50 of light woolen materials or heavy cotton. Much skill is required in placing the pattern on the cloth so that the maximum num ber of garments can be cut from a piece of goods. From the cutting table the cloth continues its journey through the various sewing operations, where, under the magic of skilled hands, modern machinery, and standardized methods it quickly grows into a finished garment. The sewing opera tions naturally form the major part of the work in the making of clothes. In one o f our factories there is a well lighted, well ventilated room, with about three and one-half acres of floor space. In this room, which is probably the largest of its kind in the world devoted entirely to sewing oper ations, nearly 800 girls are employed. But regard less of this, the work apparently moves along without a hitch; one does not get the impression of undue haste, and yet the results are there. The bulk of this work is done by machines but some o f the smaller and more particular operations must still be done by hand. The requisites of hand work are speed and uniformity, rather than the mastery of a large number of different kinds of stitches. In the pressing operations, improved machinery is rapidly taking the place of hand work, thus reducing the difficulty and expense of this work. A final and thorough inspection of the finished garments completes the journey, but the final inspection is not the only one. In the process of manufacture, the garments are carefully examined 11 at many different stages of their construction, from the raw material to the finished product. W e feel that our report would be incomplete without telling something about the “ big family” spirit that is in evidence in the organizations we visited. Employers and employees are working together rather than pulling in opposite directions, and this is something to be proud of. According to official estimates the three leading cities in the Fourth Federal Reserve District, in the production of men's and women's outer cloth ing are: Cleveland, Toledo, and Cincinnati. It is estimated that the value of the Cleveland output amounts to around 35 or 40 million dollars each year, that of Cincinnati, 15 million dollars and Toledo, 5 million dollars. Styles have always 'been changing in the past and quite probably they always will, but as to what is in store for us in the future there can only be supposition. Here is the opinion o f an executive in one of our leading clothing houses, and he has arrived at this opinion after years of study: Not so many years ago our great-grand fathers wore lace on their coats. It was the style at that time and as there was quite a large leisure class, the frills did not seriously interfere with work. But gradually the demands of business became more pressing, and very soon the styles became more conservative. The change was necessary in order that men might keep abreast of the times. At present the styles of men’s clothing have be come standardized and about the only relic of the past is the buttons on the sleeves of the coat. Now it cannot be said that a man in a neat-fitting busi ness suit that is cut on fashionable lines, is not well dressed. And yet all the unnecessary frills have been eliminated. On the other hand, however, novelty is one of the main requirements in women’s clothing. But at the same time women are making a rapid ad vance in the commercial world. Will the invasion of the business world by women eventually bring about a certain amount of standardization in women’s clothing, as has proven to be the case in men’s wear? Here the argument, that to deprive women of style also means to deprive them of individuality, comes into play. But after all is it the freakishly dressed woman who is considered well gowned or the woman who is conservatively dressed? He went on to say that a woman should be the picture, and that she is the picture when cor rectly dressed. The dress should be only the frame for the picture. A freakish dress is a poor frame and fails to harmonize, and we see the frame rather than the picture. So he feels that a certain standardization in women’s dress will add individuality to the modern business woman as she steps forward in the commercial world. Without attempting to make a prediction as to what will occur in the future, judging by the trend of events at the present time, there appears to be a considerable amount of logic in his state ments. T HE MONT i HL Y B U S I N E S S R E V I E W 12 s s s s s s s s s s s s s s s s s s s ^ s a s a a H B B s a s s a H ES B B S s s s e s s s s s s s s s s e ^ ^ B s a a s H s s a s s a M B e B a r The Story Of Our Collection Department It is estimated that about 5 per cent of today’s business is done with cash. While a large amount o f the remaining 95 per cent is made up of checks, and therefore a transit operation, nevertheless the collection items amount yearly to thousands of millions of dollars. To handle this vast volume is the purpose of the far-reaching collection system which is being built up by the banks of the country. Any delay in the collection o f these living symbols of big business is a costly penalty against the business of this country, and indirectly against each one of us. One of the accomplishments of the Federal Reserve collection system is to facilitate a more direct and therefore a more rapid payment of collection items. It is doubtful if the framers of the Federal Reserve Act could 'have visualized, in the few words of the Act which authorized a collection service, the oppor tunity that was given to the banks and to the commer cial world for an efficient means to collect their paper. Nor is it likely that they could have foreseen the farreaching scope of this service, the volume of items handled, and the great amount of labor necessary to do this work. It was not until 'the early part of the year 1917 that the Member Banks began in any considerable volume to use the rediscounting privileges. Some of the paper rediscounted by the Federal Reserve banks was payable in districts other than their own. It therefore became necessary to establish a department devoted ex clusively to the collection of maturing paper. This fact, together with the desire to be of further service to our Member Banks, resulted in the establishment of a collection department. For some time one of the employes of the Discount Department was able to handle without any trouble all the collection items, in addition to his other duties. As the volume of collections handled gradually in creased, it was found necessary, in June of 1917, to delegate to one of the employes the various duties of a Collection Department. At this time the items received for collection con sisted almost entirely of manuring notes and bills. With the increase of business came a variety of collec tions, and during the past year the collections were rather evenly divided between trade acceptances, notes, drafts, and coupons. The more promptly the proceeds of collection are made available for the banks and their customers, the greater the aid to business in general. The Federal Reserve Bank of Cleveland has a direct connection with each one of its members and with each Federal Reserve bank and its Branches, through which we are in touch with all the Member Banks of the other eleven Federal Reserve Districts, thereby permitting the rendering of prompt and efficient service. During the past year there were over 274,000 col lection items handled, aggregating $287,000,000. This volume of business included items ranging from two cents to $543,000. Almost every kind of negotiable in strument imaginable was collected as well as many curious and novel objects; as for instance, internal revenue stamps “ such as were used on cordials, wines, etc.,” a draft with a tube of radium attached, keys to a safety deposit box, forged checks, and a draft to which many voluminous pages written in German were attached, the value of which was supposed to lay in the secrets pertaining to the dye industry. Quite often some unsuspecting bank sends tobacco coupons to us for collection, while at other times our Collection Department has rendered service in connec tion with the probating of wills, the proper warehous ing of prunes and automobile engines, and the record ing and satisfaction of mortgages. The Collection Department is divided into three main divisions: the City Division which handles only items payable locally; the Country Division which handles only items payable outside of the city, and the Coupon Division which handles bonds, coupons, and some of the miscellaneous items previously enumerated. The City Division receives for collection on an average of 200 items a day, and their presentation and collection are vastly simpler than the collection of those items which must be forwarded to another bank for presentation and payment. When we receive these local items, they must either be presented through the clearing house, if payable at one of our local banks, or they must be presented to the payer by messenger. Since the city is so large, it is manifestly impossible to present collections to business houses other than those which lie in the downtown district. Consequently it is necessary to use the telephone and the mail for the presentation of items in the outlying districts. At times like these, when there is a tendency for collections to be a little slow, the life of a messenger is not always the most pleasant. Occasionally an irate maker of a note or drawee of a draft will become so incensed over the presentation of his obligation for payment that in a fit of fury he tears the paper from our messenger’s hands and consigns it to the waste basket. There are many times when our collectors approach a prospective payer of one of our collections whose credit rating is not “AA” or “ AAA.” At these times our collectors wish that the place of business was far removed from the downtown district, as they are often forced to listen to the trials and troubles of present day business. Let us follow the route of a collection item from the time it reaches our office until it is paid and the proceeds credited to the account of the Member Bank from whom the item was received. For example, we receive from Akron a trade acceptance payable by a business house in Seattle, Washington. The acceptance upon receipt in this bank, will no doubt be accom THE MONTHLY BUSINESS REVIEW IS SSS9BS5SSSSS9SSeSSBS9SSeSSSSSS5S5SS9S9SSSBSSSSSBasa9SaHSeSSSSeS9S5SSS9 panied by a letter of instructions, which will be imme diately stamped with a time stamp. It will then be passed along to the Collection Department, where it will again have the date and hour of receipt registered upon it. As the question sometimes arises as to the actual time that a maturing note was received, the time stamp occasionally plays an important part in the Collection Department, for negotiable paper must be presented at its place of payment on the day on which it falls due. The item is then carefully checked, taking into con sideration whether it is to be protested at maturity, whether it is interest bearing before or after maturity, whether documents are attached, and what special in structions have been received regarding its collection. The item is then routed to its place of payment. Items which are payable in the Fourth Federal Reserve District are sent direct to the town in which they arc payable. Other items are sent to the Federal Reserve bank of the respective district for payment. The acceptance now having been routed will be re corded on the books of the bank. The permanent re cord will be prepared on a fan-fold typewriter, seven different forms being made at one operation. The records contain all the information obtainable, such as our number, the bank from whom received, the payer, place of payment, the bank to which sent, the protest instructions, the Member Bank's date and number, the maturity date, the date it was received in our office, the amount, and any special instructions con tained in the accompanying letter. After the records are prepared, they are carefully checked against the item itself. The item with its ac companying letter of transmittal will be mailed for collection to the Seattle Branch of the Federal Reserve Bank of San Francisco. If the firm at Seattle pays their acceptance promptly at maturity, we will receive a report advising us that the acceptance has been paid. Upon receipt of this in formation our records are all stamped “paid” and the necessary entries made in passing the proceeds to our Member Bank’s account. The average volume of outstanding collections is about 5,100 items, representing a total of over $6,000,000. The larger proportion of these collections will be finally paid however many of them will be returned unpaid. It takes the time of four clerks to handle the collec tions unpaid. It is necessary to inspect every returned item with as much care and attention as when it was originally received at this office. It is essential that all documents attached are returned, that the items have been properly protested for non-payment, and that the records of dishonored paper for our Credit Department are carefully prepared. The bookkeeping necessary to handle the volume of business involved in the payment of collections aggre gating $287,000,000 is, of course, voluminous. Over 500.000 separate bookkeeping entries originated last year as a result of the collection business handled. The number of employes has steadily increased since 1917. At the beginning of the year 1919 there were ten employes, while on January 1, 1922 there were 69. One of the most essential requirements of a Collec tion Department is that the records of each item handled be filed so that they are readily available when necessary. At the present time we have approximately 150.000 records of collections filed in such a way that any one can be secured at a minute’s notice. Although the year 1921 witnessed the failure of a good many commercial enterprises, nearly 85 per cent of the items received for collection were paid, and the proceeds credited to our Member Banks. The Federal Reserve banks made no charge for their services, however, in some instances our collec tion agencies made a nominal charge, but the total volume of nearly $287,000,000 was collected with a collection charge of approximately $8,000. THE M O N T H L Y B U S I N E S S RE V I E W 14 Debits to Individual Accounts (In Thousands of Dollars) Week End ing Mar. 15,1922 (326 Banks) Akron............................ Butler, P a.*................. Canton*........................ Cincinnati.................... Cleveland..................... Columbus Connellsville*.. Dayton............ Erie................. Greensburg.. . . Homestead * . .. Lexington........ Lima *.............. Lorain * ............ New Brighton*. Oil City Pittsburgh.................... Springfield. Toledo......... Warren, O.*. Wheeling— Youngstown. Zanesville*.. Week End ing Feb. 15, 1922 (326 Banks) $ 10,858 1,833 5,819 65,404 107,572 28,849 995 11,610 6,737 4,047 597 8,246 3,280 1,032 1,885 2,591 135,431 4,012 27,492 3,295 7,300 10,642 2,638 $ 11,446 2,051 5,787 53,962 114,280 45,690 956 11,445 5,133 3,464 479 5,989 3,301 989 1,585 2,001 118,335 3,285 29,933 2,664 5,959 8,892 2,010 Decrease Per Cent Increase Amount -$ 588 218 32 11,442 6,708 16,841 39 165 1,604 583 118 2,257 21 43 300 590 17,096 727 2,441 631 1,341 1,750 628 Week End ing Mar. 16, 1921 (276 Banks) — 5.1 $ 13,485 —$ 2,627 — 19.5 73,783 131,769 25,053 — 8,379 — 24,197 3,796 —11.4 —18.4 15.2 — 10.6 0.6 21.2 — 5.9 —36.9 4.1 1.4 31.2 16.8 24.6 37.7 — 0.6 4.3 18.9 29.5 14.4 — 22.1 8.2 *•»••••• 12,875 6,364 4,685 1,265 373 638 — 9.8 5.9 —13.6 6,322 1,924 30.4 2,625 188,488 4,619 25,341 — 53,057 — 607 2,151 23.7 22.5 19.7 31.2 “ 7,484 12,195 2.8 $515,088 $439,636 $12,529 T otal.................... $452,165 * Debits for corresponding period in 1921 not avaliable Increase or Decrease Amount Per Cent — — - — ” *i84 — 1,553 —$84,297 - 1.3 28.1 13.1 8.5 •• • • • - 2.5 12.7 — 16.4 Comparative Statement of Selected Member Banks in Fourth District (In Thousands of Dollars) Mar. 15 1922 (85 Banks) Loans and Discounts secured by U. S. Government obligations..................................................................... Loans and Discounts secured by other stocks and bonds.. Loans and Discounts, all other............................................ U. S. Bonds........................................................................... U. S. Victory Notes.............................................................. U. S. Treasury Notes............................................................ U. S. Certificates of Indebtedness....................................... Other Bonds, Stocks and Securities..................................... Total Loans, Discounts and Investments............................ Reserve with Federal Reserve Bank................................... Cash in Vault....................................................................... Net Demand Deposits.......................................................... Time Deposits....................................................................... Government Deposits.......................................................... Total Resources at date of this report................................ Feb. 15 1922 (85 Banks) Inc. 42,146 42,076 70 324,830 328,118 ................... 602,070 596,537 5,533 123,074 120,980 2,094 5,473 17,077 ................... 26,011 18,595 7,416 9,326 9,835 .................... 271,754 275,948 .................... 1,404,684 1,409,166 .................... 102,901 99,881 3,020 26,766 25,874 892 806,491 776,381 30,110 471,921 465,269 6,652 19,642 46,257 .................... 1,822,718 1,821,510 1,208 Dec. 3,288 11,604 **’ 509 4,194 4,482 26,615 Wholesale Trade Percentage Increase (or Decrease) in Net Sales During February, 1922 as Compared With January, 1922 and February, 1921 Dry Goods Groceries Hardware Net Sales (selling price) during February, 1922, compared with January, 1922.......................................................... 7.1 — 4.4 9.5 1.3 Net Sales (selling price) during February, 1922, compared with February, 1921....... . ........................................... 1.3 — 20.7 — 18.1 0 .9 Drugs THE M O N T H L Y 15 BUSINESS REVIEW Department Store Sales Percentage of net sales (selling price) during February, 1922) over net sales (selling price) during same month Cleveland Pittsburgh Cincinnati Toledo Other Cities District last year. — 13.6 —24.2 — 7.5 — 9.1 — 11.6 — 16.7 Percentage of net sales (selling price) from January 1,1922, to February 28, 1922, over net sales (selling price) during same period last year........................................ - 1 7 .0 —23.2 — 8.8 — 12.1 Percentage of stocks at close of February, 1922, over stocks at close of same month last year..................... 9.3 — 2.1 4.7 — 1.7 0.4 2.3 Percentage of stocks at close of February, 1922, over stocks at close of January, 1922.................................. 19.1 13.8 10.4 18.7 8.1 14.9 Percentage of average stocks at close of each month this season (commencing with January 1,1922) to average monthly net sales during the same period................. 382.7 417.5 512.3 379.6 457.3 420.0 Percentage of all outstanding orders (cost) at close of February, 1922, to total purchases (cost) during the calendar year, 1921...................................................... 7.9 6.7 10.4 7.4 — 19.6 — 18.1 16.1 7.9 Building Operations For Month of February Permits Issued New Construction Alterations Akron.............. Canton............. Cincinnati....... Cleveland*.... Columbus........ Dayton............ Erie................. Lexington........ Pittsburgh....... Springfield....... Toledo............. Wheeling......... Youngstown. . . 1922 71 55 200 308 228 65 37 29 276 43 73 34 35 1921 95 70 185 279 174 89 41 3 172 39 82 37 69 1922 30 27 179 483 103 85 35 31 83 15 118 31 27 Inc. or Dec. of Total Valuation Valuations New Construction Alterations 1922 1921 1922 1921 1921 145,610 100,205 33 120,558 45 112,640 886,525 554 316,915 640 2,251,735 2,541,280 668,615 80 366,930 51 164,049 188,177 74,475 75,150 40 367,550 27 12,090 79 1,625,836 522,959 60,280 19 50,245 200,980 119 124,590 135,740 30 62,595 43,425 25 324,735 T o t a l..... 1,454 1,335 1,247 1,742 6,699,973 4,843,916 * Figures include Lakewood and East Cleveland 43,900 13,375 153,770 438,440 75,285 46,267 40,910 46,831 180,088 6,845 102,415 20,884 62,535 22,595 185,990 307,175 447,950 50,620 44,172 38,097 7,000 236,916 10,150 160,085 8,580 34,900 1,231,545 1,554,230 Per Cent Inc. or Dec. — 24,100 — 14.3 — 164,697 — 55.2 416,205 66.7 — 299,055 — 326,350 78.2 — 22,033 —9.5 2,138 1.9 395,291 2,070.7 1,046,049 137.7 6,730 11.1 18,720 6.6 85,449 120.1 — 253,675 — 70.5 10.0 1,533,372 24.0 Movement of Livestock at Principal Centers in Fourth Federal Reserve District For Month of February, 1922-1921 1922 Columbus. Fostoria. Sprt Springfield. Toledo. Wheeling. Columbus.. Fostoria... Pittsburgh. Springfield. Wheeling.. Cattle 1921 Hogs 1922 17,342 14,961 100,827 68,020 9,184 7,140 3,540 147 •«•••♦ 11,663 1,118 1,531 5,587 126 124 30,918 25,903 190,269 3,304 169 169 6,047 845 619 2,248 234 359 Purchases for 14,111 12,007 62,255 49,624 8,905 6,691 590 68 510 30 ‘ " ‘ 35 5,567 5,350 35,789 433 32 11 2,248 234 341 1921 1922 Sheep 1921 111,130 5,076 70,627 19,596 ............ 224 12,119 191 7,120 445 175,237 67,111 4,413 489 486 10,887 1,830 99 Local Slaughter 73,512 4,578 54,595 12,356 49 1,090 5 8,260 40,163 823 12 1,738 99 4,136 17,313 264 813 60,518 90 2,835 99 3,612 14,674 "'2 0 10,303 21 94 1922 Calves 1921 11,747 9,954 166 541 447 20,296 128 451 656 7,169 9,022 73 72 5,596 9 656 8,114 9,117 Cars Unloaded 1922 1921 1,552 1,334 14 649 563 ’ " ' 8 15,475 3,517 132 97 774 20 763 6,142 ••••» 8,947 1,712 1,336 8 3,221 ’ *152 34 ••♦•• ••••• “ '26 ••• •• 6,256 •♦••* •••* * 23 #•••♦ •♦♦♦« 724 FOURTH FEDERAL RESERVE D IS T R IC T
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