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MONTHLY BUSINESS REVIEW Covering financial, industrial, and agricultural conditions in the Fourth Federal Reserve District Federal Reserve Bank o f Cleveland V ol. 8 C levelan d, O h io , A p ril 1, 1926 As compared with the normal February, the past month may be termed satisfactory from the business viewpoint. The present situation, however, appears to be somewhat mixed. Operations in iron and steel in the first part of March have been at a high level of capacity, and various other lines, such as automobiles, continued at a high rate of activity in February and early March. On the other hand, there has been a steady, though slight, decrease in numerous wholesale prices since September, particu larly in farm products. Such a decline suggests a narrow ing of profit margins in some lines of manufacture and a loss in returns from farm crops. Building permits for the first time in many months declined in February from the preceding year, although in some quarters this is at tributed to the weather. In the Fourth District, at least, some other industries, while enjoying a normal volume of business, are falling behind the exceptional activity of a year ago. On the whole, conditions remain fundamentally sound, but a tendency toward a slowing-up has made its ap pearance. Whether this is due to the late winter or to other causes can probably be more accurately determined with the opening of spring. Financial Savings deposits of seventy-one selected Conditions banks in the larger cities of the Fourth Federal Reserve District amounted to $882,723,143 on February 27, 1926, an increase of 6.5 per cent over a year ago and of 1.6 per cent over the preceding month. Commercial failures in this District according to R. G. Dnn and Company, numbered 188 in February, as com pared with 244 in January and 120 in February, 1925. Liabilities aggregated $3,966,625, as compared with $2,067,013 a year ago. In the United States, there were 1,801 failures in February, 2,296 in January, and 1,793 in February, 1925. The following table gives the changes in the main jtexns of the balance sheets of the Federal Reserve and reporting member banks: Federal Reserve Bank of Cleveland Federal Reserve System (In Millions) (In Millions) M ar. 10, Mar. 11, Feb. 10, Mar. 10, Mar. 11, Feb. 10. 1926 1925 1926 1926 1925 1926 Gold r e a v e s ................ $292 $262 $307 $2,799 $2,875 $2,795 Dtoeonnts ........................ 62 51 50 502 410 533 A ^eytan c* ................... 21 31 15 285 801 301 S * « S fUnt!f* .............. 83 43 32 1,159 3<i0 1,114 888 1,177 833 Total bina and securities 107 125 98 F e d e r a 1 Reserve notes in circulation .................... 204 194 204 1.S72 1,731 1,668 Total deposit* .................. 182 ig 2 igg 2,Zil 2,255 2,296 R eporting Member Banks Fourth D istrict (In Millions) Mar. 3, Mar. 4, Feb. 3 1926 1925 1926 Loans secured by stocks and bonds .................... $530 $433 $503 775 All other ......................... 759 769 Total loans .................... 1,306 1,192 1,272 Investments ....................... 623 646 625 Demand deposits ............ 1,017 1,000 1,007 Time deposits ................ 768 717 761 Iron and Steel N o. 4 1926 1925 1926 $5,435 $4,794 $5,528 8,574 8,449 8,448 14,009 13,243 13,976 5,603 5,336 5,478 13,008 12,924 13,036 5,446 4,945 5,404 A new cycle of increased consumption apparently is being entered upon in the iron and steel industry. After hav ing operated in January and Feb ruary at a higher rate than the corre sponding months in 1925, which was the year of greatest steel production in history, the industry now is finding itself obliged to spread out production further to meet the current demand. Inasmuch as the mills at present are tied to their customers in a remarkably close way due to efficient transportation, present demands con stitute a peculiarly accurate gauge of current consump tion. Current operations are around 90 per cent of rated steel capacity. Reflecting this speeded-up activity, the March output of the Gary works to date is ahead of March, 1925, when the previous high mark was created. The present situation is in contrast with that which prevailed at this time in 1925. A fter heavy production in January and February, demand began to contract ap preciably toward the end of March. It had shrunk 10 to 15 per cent within 30 days thereafter. Heavier de mands at this time are attributable to a number of fac tors. The automobile industry is swinging into high production more quickly than a year ago. One large producer is on a materially lower basis of output but this appears to be exceptional and due to special m arket ing causes. Other large producers are scheduled for their heaviest March production in history. The rail roads are buying steadily in good volume but without any spectacular elements. Car orders placed during the first two months of the year totaled about 22,000 compared with about 7,000 for the corresponding period in 1925. Building activity has been better than expected with a large volume of new projects coming out. While the tonnage of struc tural steel for this purpose is below that of last year, the gap in recent weeks has been closing as spring has given a new impetus to the bringing cf undertakings to 2 THE M O N T H L Y B U S I N E S S REVI EW a definite stage. Oil, water, and gas activities are larger. ber from 90 cents a pound three months ago to around Miscellaneous demand for steel is holding up well. 60 cents at present, and to the consequent desire on Steel production in February fell 1 per cent below the part of purchasers to await possible price reduc January but reached the highest daily rate of any Feb tions (in addition to the 10 per cent reduction made ruary in history. For the first two months of the year, in February). Manufacturers, however, are still stocked steel ingot production was maintained at a rate 1.9 per to a degree with tires in which the crude rubber cost cent ahead of 1925. February output was on the an ranged from 75 to 90 cents a pound. Consequently nual basis of 49,180,000 tons or 87.82 per cent of the manufacturers' inventories are abnormally high. As theoretical maximum. It also represented 98 per cemt to dealers7 stocks, although the latest figures on these of the highest mark for any single month in history. are as of January 1, the National Tire Dealers Asso In pig iron, according to the compilation of IRON ciation's report as of that date shows that dealers had TRADE REVIEW, February operations still reflected the about twice as many tires and tubes on hand as a year interruptions or reductions growing out of the recent previous. coal strike. On a daily basis, production dropped to Another depressing factor has been the bad weather, 104,337 tons or 2.57 per cent under January. Furnaces which has kept down pleasure traveling on the part of in blast at the end of February were reduced by two to the public. As a result of the slack demand, future 223 or 58.5 per cent of the total number. Since then, orders are not up to normal. Tire makers, however, however, a number of additional furnaces have gone are awaiting the opening of spring with confidence. Busi into blast. ness in such lines as hard rubber tires, rubber foot A stronger effort is being made by leading producers wear, and mechanical goods has been excellent. It is stated that the use of reclaimed rubber is in to stiffen up steel prices and there is evidence of some results in heavier products such as plates, shapes and creasing steadily, both in tire manufacturing and in bars. Sheets continue to show irregularity. Buyers of other lines. American imports of crude rubber amounted to 36,950 pig iron are maneuvering for advantage on their sec ond quarter requirements and in spots some lower prices tons in February. Total imports in 1925 were 385,000 have resulted. The trend of the market is defined by tons, as against 314,000 in 1924. A recent majority report of the Interstate and For IRON TRADE REVIEW composite of fourteen leading iron and steel products. In the third week of March eign Commerce Committee of the House of Represen this stood at $38.89 compared with $38.90 one month tatives recommends action to create a rubber supply independent of foreign control, including encouragement previously. of production in the Philippines. Coal The continued cold weather during the and first half of March resulted in an in- Automobiles February automobile production was Coke creased demand by householders in this practically as great as in the previous District for soft coal, particularly for record February of 1924, according to low volatile grades. On the other figures furnished by the Federal Rehand, anthracite production is again on a normal scale, serve Bank of Chicago in cooperation and it is reported that many of the markets which were with the National Automobile Chamber of Commerce. using soft coal during the anthracite strike are now The output of passenger ears last month was 334,602, reverting largely to hard coal. Bituminous prices as and of trucks was 39,763, or a combined total of 374,26b! a whole have been rather weak, reflecting the decreased This compares with 374,409 in February, 1924, and with demand by eastern markets. The Coal Age average was 286,012 in the same month of 1925. $2.03 on March 15, as compared with $2.10 on February As compared with January, February production in 15 and $2.19 on January 8. creased 33 per cent. This is in marked contrast to the Output of soft coal declined seasonally during Feb years 1923-1925, during which the second month's pro ruary, following closely the 1924 and 1925 production duction declined from 8 to 11 per cent. From 1919 to curves. A report of the Bureau of Mines shows that 1922, however, February output showed a gain over Jan stocks of soft coal in consumer’s hands on February 1, uary, ranging from 15 to 58 per cent. amounted to 45,000,000 tons, a slight decline from Jan Production for the first two months of 1926 was 616 871; 1925, 522,237; 1924, 697,488. uary. The coke market has recently been depressed. Ton Truck manufacturers report a normal volume of or nage in the Connellsville region has moved slowly since ders, in excess of last year. the settlement of the anthracite strike, and coke was Future orders are reported by paint quoted at $3.25 a ton (furnace spot) on March 11, as Paint compared with $10.00 or more early in February. manufacturers in the Cleveland terri tory to be in encouraging volume__ Rubber Deliveries of tires to automobile manm one or two cases at exceptionally and ufacturers as original equipment conhigh levels. Firms which receive most Tires tinue to run ahead of last year. The of their orders on an immediate shipment basis state situation with regard to tires for re that such orders are normal, and are either equal to placement, however, is not entirely sat or somewhat in excess of last year. * isfactory at the present time. Buying by the public has There is some doubt as to the price situation. Lin been at a minimum, owing to the decline in crude rub seed oil has shown a declining tendency for some time', THE M O N T H L Y B U S I N E S S REVI EW but up to the middle of March there appeared to be no general price reduction of products manufactured in part from linseed oil. White lead manufacturers report weakness in the pig lead market. There has been a continued increase in lacquer sales, and it is stated that paint and varnish for finishing purposes is being supplemented to some extent by pyroxylin lacquer. Clothing Spring business is satisfactory in most of the clothing lines in this District, although buying in the knit goods trade has been sluggish. Lower prices have helped in some cases to bring in a volume of business greater than a year ago. With regard to future orders for fall delivery, reports indi cate that the situation is less favorable from the man ufacturer’s point of view, owing to the continued un willingness of buyers to stock up. In one line it is stated that buying has recently become even more re stricted than heretofore. Sales of 18 wholesale dry goods houses in the Fourth District in February were 5.9 per cent below those of February, 1925. There was a gain of 17.7 per cent over January, which was slightly more than seasonal. Shoes Boot and shoe factories in the Cin cinnati territory experienced an active February. Business during the first two months of the year was ahead of last year, but some easing of orders in March is reported. Wholesale shoe houses in February again exceeded last year’s sales, though not to the same extent as in January. February sales were 4,9 per cent greater than for February, 1925, and for the first two months of 1926, sales were 8.2 per cent ahead of the same period in 1925. Collections have been slow. Preliminary figures on retail shoe sales in depart ment stores indicate a gain in February of 0.2 per cent over a year ago. Final production figures for January show a gain in the Fourth District of 6 per cent over December, but a loss of about 5 per cent from January, 1925. United States production in January was 23,845,038 pairs, as against 24,403,589 in December. Preliminary reports for February indicate a gain of 3.4 per cent as compared with January. General No great changes in the various manManufacturing ufacturing industries of the District have taken place since last month. Reports indicate that business in some trades has not as yet developed as expected, whether due to the unusually severe weather of early March or to a general slackening. In other lines, orders are running ahead of last year and prospects are favorable. On the whole, it appears that business is about normal, considering the late winter, but that it is hardly up to last year and is running below the more optimistic first-of-the-year predictions. There is still complaint of the hand-to-mouth buying policy, which prevents manufacturers from accumulating a back-log of orders as was formerly the case. 3 "Building For the first time in eleven months, the value of building permits in Feb ruary failed to break all records for corresponding months in previous years. February permits for 164 cities reporting to Bradstreet's amounted to $227,378,944, a loss of 8.5 per cent from a year ago. Declines oc curred in all sections of the country except the Middle Atlantic and Southern. After ten successive recordbreaking months, this decrease was not unexpected. Adverse weather has been a factor as well as the ex traordinary building activity of the past year which has finally made up the war shortage in many localities. In the Fourth District as in the country at large, building has been approximating a more normal vol ume. Combined figures for 27 cities in this District show a heavy loss from February, 1925, amounting to 46.2 per cent. Permits in all centers decreased except in Ashtabula and two Cleveland suburbs—Parma and Cleveland Heights. The decreases were particularly large in Columbus, Dayton, Erie, Lexington, Lima, Mansfield, Newark, Wheeling, and others. For the first two months of 1926, permits declined 32.4 per cent from a year ago. Building Operations A k r o n ................................ A s h ta b u la ........................ B a r b e r to n ........................ C a n to n .............................. C in cinna ti ........................ Cleveland proper ........... Cleveland H eights. . . East C le ve lan d ........... E u c lid ........................... Garfield H e ig h ts ........ L ak e w ood .................... P a r m a ........................... Rocky R iv e r ............... Shaker H e ig h ts .......... C o lu m b u s ......................... Covington, K y ................ D a y t o n ............................. Erie, P a ............................. Lexington, K y ................. L im a .................................. M ansfield ......................... N e w a r k ............................. Pittsburgh, P a ................. Springfield ................... T o le d o ............................... Wheeling, W. V j............ Y o u n g s to w n .................... T otal............................. Building Materials February, 1926 (Valuation of Permits) change Jan.-Feb. Jan.-Feb. % change from 1925 19261925 from 1925 — 9.8 $ 1,424,028 $2,137,772 — 33.4 February % 1926 £ 960,854 59,255 47,057 354,715 1,142,140 2,904,125 745,250 25,488 94,000 115,800 167,475 59,700 17,050 401,340 1,193,800 117,700 376,914 135,690 87,870 20,555 39,375 10,300 2,135,871 47,515 732,060 65,313 302,055 12,33fA267 +71.1 47,855 — 37.7 65,229 —48.8 553,435 — 15.7 2,297,170 —46.3 5,726,925 + 3.6 1,078,650 —90.5 154,871 — 21.7 223,965 — 32.9 254,300 —66.9 400,175 +68.2 135,025 — 74.3 47,700 —68.6 633,340 — 54.7 2,197,700 —28.4 170,900 — 60.7 747,724 —63.4 256,705 —67.6 439,694 — 89.0 484,940 — 70.8 104,775 — 76.4 15,300 — 16.9 5,928,626 — 23.5 106,205 — 50.6 1,137,557 — 73.1 130,403 —48.0 1,319,405 —46.2 26,082,602 43,065 103,847 1,197,912 2,709,455 8,866,800 1,562,500 669,218 195,385 318,000 1,033,079 35,500 96,150 1,731,150 3,639,900 294,050 1,313,732 450,635 334,490 251,651 941,325 67,150 7,317,652 119,945 1,874,572 369,099 883,255 38,557,289 +11.1 — 37.2 — 53.8 — 15.2 — 35.4 — 31.0 —76.9 + 14.6 — 20.0 —61.3 +280.4 — 50.4 —63.4 — 39.6 — *1.9 — 43.1 — 43.0 + 31.5 + 92.7 — 88.9 — 77.2 — 19.0 — 11,5 — 39.3 —64.7 + 49.4 — 32.4 Unseasonable weather during early March has hampered actual building operations. However, some improve ment recently in orders is noted by lumber manufacturers, and the volume of new business in most cases compares favorably with a year ago. A report of the Common Brick Manufacturers’ Asso ciation states that the proportion of residential building to all types of construction has grown steadily during the past several years. The proportion in 1920 was 34 per cent; 1921, 52 per cent; 1922, 54 per cent; 1923, 59 per cent; 1924, 61 per cent; 1925, 62 per cent. Production of No. 1 paving brick for 100 per cent of the industry amounted to about 26,000,000 in Feb ruary, as compared with 30,000,000 a year ago. The pro 4 T H E M O N T H L Y B US I N ES S ' S R E V I E W duction curve has ran behind the preceding year for sev eral months. New orders, however, have run ahead of 1925 during both January and February. Cement output in Ohio, Western Pennsylvania and West Virginia aggregated 739,000 in February, as com pared with 593,000 a year ago. February shipments were 402,000 in 1926 and 404,000 in 1925, and stocks at the end of February were 2,792,000 in 1926 and 1,977,000 in 1925. The Aberthaw index of industrial building costs re mained unchanged in March at 195. Agriculture A recent bulletin of the United States Department of Agriculture shows that there remains on the farms through out the country, a considerably greater percentage of the corn crop than was the case a year ago. On March 1, there remained un sold 1,318,793,000 bushels, as compared with 759,471,000 bushels on March 1, 1925, and a five-year average, (March, 1921-1925) of 1,175,403,000 bushels. Several factors have contributed to this situation,— the chief causes being the fairly large crop, the large percentage of unmarketable grain, the unsatisfactory prices, and the reduced number of hogs and cattle on the farms. The amount of oats on farms is also re ported as about 15 per cent above the five-year average. The holdings of wheat by the farmer are more than 50 per cent less than the five year average, due to a rather short crop and prices sufficiently high to attract the farmer to unload. The coming wheat crop is re ported in quite satisfactory condition to date. hold articles gained, while yard goods and ready-towear departments decreased. Percentage changes in departments doing the greatest business in January were as follows: % changre—Feb. 1926 com pared with Feb. 1925 Silks and Velvets ................................................................... .... ^ g Domestics .................................................................................. ___ ^ ^ Toilet Articles, Dru^s ....................................................... +15 Men’s Clothing ............................................................................ .... g j Men’s Furnishings ........................................................................... + 4 6 W omen’s Coats ........................................................................ .... g g W omen’s Dresses .................................................................... gg Misses’ Ready-to-W ear ................................................................. + 1 1 M illinery ............................................................................................ ....g W omen’s & Children’s Hosiery .............................................. + 3 7 Shoes ................................................................................................. .... 2 4 ..................................................... .................................. “r. 4.4 . . _F urniture . Draperies ...... *..................................................................... 12 Floor Coverings ................................................................... .... g ^ .... q ^ House-Furnishings ................................................................... Wholesale lines in this District as measured by sales, are still in a state of depression. This bank’s index num ber of sales of five wholesale trades combined stood at 77 in February, the lowest for any February of the past six years except in 1922. Wholesale drugs have compared favorably with previous years for several months past, and wholesale shoe sales are beginning to improve; but sales in dry goods, hardware, and groceries have failed to hold their own during 1926 to date. Percentage changes in February from a year ago Tobacco Deliveries of the 1925 burley crop in were as follows: groceries, 2 per cent less; dry goods, Kentucky have been practically com 5.9 per cent less; hardware, 6.3 per cent less; drugs] pleted. Sales are well advanced and 2.2 per cent greater; shoes, 4.9 per cent greater. some of the independent auction floors have closed. According to the Com On the following page appears a chart missioner of Agriculture, about 77 million pounds had Wholesale showing wholesale prices of commodi been sold for growers through the loose leaf warehouses Prices up to March 1st. ties of particular interest to manu Independent sales in February brought an average of facturers in the Fourth District. Prices $16,55 per 100 pounds, as compared with $20.55 a year are shown by years from 1913 to 1919, ago. Prices have weakened somewhat since January, and by months from 1920 to 1926. The explanation of when sales averaged around $19.00. The decline from a year ago is reported to be caused partly by the dif each is as follows: (All prices are those used by the ference in quality between this year’s crop and that of U. S. Department of Labor unless otherwise indicated.) Pig Iron. Am erican Metal M arket average. last year. Steel Billets. Bessemer—average of weekly prices. Pittsburgh. The Burley Tobacco Growers’ Association increased Finished Steel. Iron Age Composite. its membership by 244 during February. Bitum inous Coal. Run of mine, Kanawha, f. o. b. Cincinnati. Retail Tiade Department store sales in this District for the first two months of 1926 were practically the same as last year. February showed a small decrease of 0.1 per cent, but the two months com bined, showed a still smaller gain of 0.03 per cent. The largest gains for the two months occurred in Cincinnati (6.7), and Akron (3.4). Twenty-four out of fifty-two separate departments showed increases over February, 1925. In general, house Wholesale Trade Coke. Beehive furnace, Connellsville. Rubber. P ara island, New York. Cotton. Middling upland, New York. Wool. T erritory, scoured, fine and fine medium, staple. Boston Silk. Japan, Kansai, No. 1, New York. Leather. Upper, chrome calf “ B” , Boston. Hardwood Lumber. “ Lumber" weighted average. Softwood Lumber. “Lum ber" weighted average. Building Brick. Common red, New York. Cement. Portland, a t Chicago. Glass. Window, Single B, f. o. b. works. Linseed Oil. New York. Petroleum . Crude, Kansas-Oklahoma. All Wholesale. United States Department of Labor index. THE MONTHLY BUS I N E S S REVIEW S Wholesale Prices of Selected Commodities, 1913-1926 (See preceding page for explanation) http://fraser.stlouisfed.org/ S S S S S S S 1920 1921 Federal Reserve Bank of St. Louis 1922 >*23 1924 1925 • 1921 1922 1923 1924 192* £ 6 THE MONTHLY BUSI NESS REVIEW Retail and Wholesale Trade Percentage Increase or Decrease SALES SALES Feb. 1926, Jan.-Feb. 1926. No. of compared with compared with Jan.-Feb, 1925 Reports Feb. 1925 DEPARTMENT STORES + 6.2 + 3.4 Akron......................................... 5 + 3.9 — 0.4 Canton................................................5 + 6.7 + 3.4 Cincinnati...........................................7 + 0.6 + 3.1 Cleveland............................................6 0.2 + 0.7 Columbus............................................6 + 1.0 Dayton................................................4 + 1.4 —16.2 — 7.6 New Castle.........................................3 — 2.5 — 4.9 Pittsburgh................................. .........7 + 4.0 1.6 Toledo.................................................5 — 4.7 — 3.9 Wheeling.............................................5 + 0.03 Youngstown........................................3 + 1.6 + 7.4 + 6.0 Other Cities............................... 14 + 0.03 0.1 District...................................... 70 WEARING APPAREL + 0.5 Cincinnati.................................. 6 Cleveland............................................ 3 + S.7 — 2.1 Other Cities............................... 10 District...................................... 19 + 1.2 FURNITURE +21.1 3 Canton....................................... Cincinnati.................................. 11 — 7.4 Cleveland................................... 10 +12.6 + 4.8 Columbus.................................. 17 +30.2 Dayton...................................... 5 Toledo........................................ 6 + 5.9 +20.6 Other Cities............................... 11 District...................................... 63 +12.5 CHAIN STORES* + 2 .8 Drugs—District........................ 3 + 4.8 — 3.9 — 5.0 5 Groceries—District.................. WHOLESALE GROCERIES —11.4 — 9.9 Akron......................................... 3 — 6.7 — 5.4 Cleveland................................... 4 + 0.1 Erie............................................ 4 + 1.9 —13.3 11.2 Pittsburgh................................. 10 + 3.0 + 6.4 Toledo........................................ 3 8 .2 Youngstown.............................. 3 — 4.4 + 3.7 Other Cities............................... 27 + l l — 4.2 2.0 District...................................... 54 — 6.9 WHOLESALE DRY GOODS.. 18 — 5.9 + 2.2 WHOLESALE DRUGS............. 16 + 1.9 — 7.3 — 6.3 WHOLESALE HARDWARE.. 16 + 8.2 WHOLESALE SHOES.............. 7 + 4.9 * Sales per individual unit operated. — — — — — — Debit* to Individual Accounts Akron......................... Butler, Pa................... Canton....................... Cincinnati.................. Cleveland................... Columbus................... Connellsville, Pa........ Dayton....................... Erie, Pa...................... Greensburc, Pa.......... Homestead, Pa........... Lexington, Ky............ fLorain......................... ,m*...................... Oil City, Pa................ Pittsburgh, Pa........... Springfield.................. Steubenville............... Toledo........................ Warren........................ Wheeling, W. Va....... Youngstown............... Zanesville................... Total....................... (In Thousands of 4ending 'j“ k* % mchange u Mar. 17, from 1926 1925 81,884 +19.5 8,706 - I I . 4 7,5 326,755 T+ 5.6 610,386 + 8.3 129,954 + 9.2 4,439 + 2.7 81,769 +18.0 29,787. — 0.8 21,792 +20.6 3,691 — 7.3 26,666 + 7.4 12*fll ?H 4,665 — —16.0 11,699 — 8.9 *88,585 + 7.9 21,301 + 7.3 9,564 — 5.5 192,826 +10.4 12,173 +22.3 42,827 + 9.3 56,912 + 2.1 11,108 + 2.2 2.630.552 + 7.6 1925date to (Tan. 1Kfer 18) 195 182 26.670 120,609 889 497 1 654 599 345 053 11*732 190,024 81941 52*757 10 490 81,153 47,346 16 553 35 743 2 389*119 55*025 28 405 490259 32 746 115,296 173 392 30;?19 7,074,310 *ncr. or deer. 1926 over 1925 +20.4 + 3.8 + 2.0 +14.2 +13.2 +14.3 + 8.1 +19.6 % + 6.6 + 8.8 + 0.8 — 5.5 - \ l :l + 1:1 +15.4 +is:s + 6.0 +16.5 + 6.9 + 9.7 Index Numbers of Trade in the Fourth Federal Reserve District (Average Monthly Sales for the Five-Year Feb. 1922 Department Stores (55)*............... 69 Wholesale Drugs (Is)*.................. 93 Wholsale Dry Goods (17)*............ 74 Wholesale Groceries (49)*............. 67 Wholesale Hardware ( 15)* ............ 67 Wholesale Shoes (6)*..................... 54 71 Wholesale—All (102)*................... Chain Drugs (3)*........................... 92 * Number of firms. Period 1919-1923, inclusive__inn\ - « - W) Feb. »-«Feb. Feb. Feb. 1923 1924 1925 1926 83 96 90 109 107 102 104 95 94 78 75 83 73 72 97 99 101 92 66 60 54 58 87 90 80 77 96 96 93 98 Fourth District Business Statistics (All figures are for Fourth District unless otherwise specified) February, February, 1926 1925 2,598 2,458 Bank Debits (23 cities) Millions of dollars . Savings Deposits (end of month) 645,572 599,310 Thous. of dollars .. Ohio (28 banks) 237,151 229,364 Western Pennsylvania (27 banks) 882,723 828,674 Total (55 banks) 188 120 Commercial Failures — Number Actual Number 3,967 2,057 44 44 — Liabilities Thous. of dollars . 2,859 2,563 Postal Receipts — 9 cities 88,905 92,994 Sales — Life Insurance — Ohio and Pa. 19,759 19,847 44 — Dept. Stores — (55 firms) 6,170 6,311 44 — Wholesale Grocery — (49 firms) 3,253 3,459 ** — 44 Dry Goods— (18 44 ) 1,920 2,049 44 — 44 Hardware — (16 44 ) 1,664 1,627 «« — •« Drugs # — (16# 44 ) 12,339 22,946 Building Permits, Valuation—13 cities 2,923 3,214 Thous. of Tons Production — Pig Iron, U. S. 3,795 3,756 4* — Steel Ingots, U. S. ** — Automobiles, U. S. 334,502 252,520 Actual Number Passenger Cars 44 <4 39,763 33,492 Trucks 20.499* 19,975* — Bituminous Coal, 4th Dist. Thous. of tons barrels. 739 593 — Cement; Ohio, W. Va., Wn. Pa. 1,714* 1,739® — Petroleum. O., Pa., Ky. Pa. * * pairs »• — Shoes, 4th Dist. casings. 3,698* 3,606* “ — Tires, U. S.(from Lake Erie. ports) tons Bituminous Coal Shipments Iron Ore Receipts (at Lake Erie ports) *2 months* average ’Figures confidential 3January Dollars) I9?6 date» (Dec. 31Mar. 17) 234,979 271693 123,076 1,015,988 1 872,826 394 428 12 683 227,’220 87,362 57,380 10 571 77319 ?9,817 13,809 341263 2,498,425 63 483 27 569 567633 34 701 1341370 171,009 32,211 7,758,865 % Jan.-Feb. & change Jan.-Feb. 1926 1925 change + 5.7 5,900 5,493 + 7.4 + 7.7 640,113* 594,655* + 7.6 + 3.4 235,628* 229,364* + 2.7 + 6.5 875,740* 822,509* + 6.5 +56.7 432 319 +92.9 9,548 6,994 +35.4 +36. S +11.5 5,743 5,295 + 8.5 — 4.4 165,097 176,243 — 6,3 — 0.4 40,028 40,185 — 0.4 — 2.2 12,582 13,202 — 4.7 — 6.0 6,017 6,465 — 6.3 3,665 3,953 + 2.3 3,443 3,379 —46.2 26,082 38,557 + .1-9 — 9.1 6,239 6,586 s :i + 1.0 7,948 7,955 -— i20.09 +32.5 616,871 461,761 +33.6 +18.7 71,270 60,476 +17.8 + 2.6 20,499* 19,975* + 2.6 +24.6 1,262 1,401 — 9.9 — 1.4* 1,714* 1,739* — 1.4* — 5,o* * 5.0* + 2.6* 3,698* 3,606* — + 2. 6* 9 THE MONT HL Y BUSI NESS REVIEW Sum m ary of National Business Conditions £& $£l PRODUCTION IN BASIC WDU5TRIES 1922 1923 1924 I925 j» 1926 Ia in «f 22 basic commodities adjusted for WMtnil variation* (1919—109). Latest figuro—-February, 120. ftnetm 200,--------- WHOLESALE PRICES W 1 1 192$ f M as of U. S. Bum s of Labor Statistics (1919—Iff, baao adopted by Bureau). Latest figure—February, 15S. 1923 Monthly averages of weekly figures for banks la 1#1 loading dtiea. Latest figures are STsragos for first three weekly report dates in March. FACTORY EMPLOYMENT AND BkYROLL 1922 1923 *925 * 1926 Jo Federal Besom Beard’s indexes of factory employaMttt and payrolls (1919—19#). Latest Employment—97; PayDigitized for (February) FRASER reUa—111%. 7 (By the Federal Reserve Board) Production and trade continued in February at the high level of the pre ceding month, while the general average of prices declined and was lower in February than at any time since the latter part of 1924. Production The Federal Reserve Board’s index of production In basic industries, which is adjusted for seasonal variations, indicated a continuation of pro ductive activity during February in about the same volume as in the pre ceding two months. Mill consumption of cotton and the output of flour, an thracite, copper, and newsprint showed increases in February, when allow ance is made for usual seasonal changes, and the output of iron and steel and lumber remained practically unchanged. Activity in the woolen indus try and the production of cement declined. Automobile production was in considerably greater volume in February and was larger than a year ago, al though smaller than in the corresponding month of 1924. Employment and earnings of factory workers increased, after the seasonal recession of Jan uary, and were in February at practically the same levels as during the latter part of 1925. The volume of building contracts awarded declined both in January and in February, but remained larger than In the corresponding months of last year. Reports by farmers to the Department of Agriculture of intentions to plant In 1926 indicate that the acreage of spring wheat and tobacco will be slightly smaller, the acreage of corn will be about the same, and that of oats, barley, hay, and potatoes larger than that in 1925. Trade Wholesale trade in February was in about the same volume as a year ago. A smaller volume of sales was reported for groceries, dry goods, and hardware, while sales of meats, shoes and drugs were larger. Inventories of wholesale firms dealing in groceries, dry goods, shoes, and hardware were smaller at the end of February than a year ago. Trade at department stores and at mail order houses was larger than in February of last year and de partment store stocks were about 5 per cent greater than on the corre sponding date of 1925. Freight car loadings continued at about the same daily rate In Feb ruary as in the preceding two months. Shipments of merchandise In lessthan-carload-lots and of miscellaneous commodities were particularly large. Prices That general level of wholesale prices, as measured by the Bureau of Labor statistics index, after remaining unchanged for two months, declined in February to a point slightly below the low figure of 1925, reported for last May. The greater part of the decline since last autumn has been In prices of agricultural commodities. In February prices of all major groups of commodities except fuels, declined and particularly large reductions oc curred in the prices of grains, cotton, wool, silk, and rubber. Price advances in February were shown for petroleum, coke, and paper. During the first three weeks of March prices of grains, cotton, wool and silk continued to decline and recessions were also reported in the prices of sugar and hard wood lumber. Bank Credit At member banks in leading cities demand for loans chiefly for com mercial purposes showed an Increase, partly seasonal In character, between the tniddle of February and the middle of March, and on March 10 the totaV volume of these loans was close to the high point reached last autumn. A further decline of loans on securities, which accompanied the sharp recession in security prices in March, carried the total to a point nearly $430,000,000 below that reached at the end of the year. Following a growth during February in the volume of Reserve Bank credit outstanding, there was a sharp decline early in March to about the same level as a year ago. Factors contributing to the decline have been continued imports of gold and some reduction in member bank reserve re quirements as well as the temporary abundance of funds resulting from the excess of treasury disbursements over receipts around March 15* Open market rates on prime commercial paper, afte? a slight decline in February advanced in March to 414-4% per cent, the level which had pre vailed since last October. Index of National Business Conditions The base (100) for all the charts except the first is the monthly average for the 5 years 1919-1923 inclusive. For the first chart, the base is the monthly average for the three years 1921-1923. C O M M E R C IA L F A IL U R E S PERC 'NT. ... PER CENT 200 2 00 ISO 1\ U V lOOl 1 1 w i 1 S iM 1 150 roo 50 50 O O 192 I 1922 (923 1924 1925 1926 E XPO RTS pencoo. ***' C O A L CTERCENT. P R O D U C T IO N PER PER C ENZ / / » V *\ 1 w \f/ VV o 1921 1. 2. 3. 4. 5. 1922 IS23 192 4 IOO 100 50 SO o 0 192 5 (926 > 92 5 -LWU * I A*A hr /1 V * 19 2 4 C AUTOMOBILE PRODUCTION 150 15 O . 1923 M E R C H A N D IS E 200 200 ion| 1 OF 19 2 2 I9£3 1— 150 r I / /A 1r •M l ,^ 2 4 |ft25 Member Bank Credit: Loans, February—121. Investments, February— 6. Wholesale Trade, January— 88. 135. 7. Building Permits, February— 139. Member Bank Deposits; Demand, February—120. Time—February— 8. Car Loading*, February—100. 183. of Merchandise, February_______________________________________ 74 Check Payments, exeept New York, January—135. 10. Bituminous Coal Production, February— 116. Commercial Failures. February—140. 11* P*8T Iron Production, February—117. Retail Trade. January—102. 12* Automobile Production, February— 172 . 9‘ 200 iOO 50 1 )2 6 0
@FedFRASER