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The Monthly BUSINESS REVIEW Covering north Federal Reserve District business and industrial conditions in the K FEDERAL RESERVE BANK of CLEVELAND D.C.Wills, Chairman o f the Board (COMPILED JULY 20. 1920) VOL. 2 CLEVELAND. OHIO. AUGUST 1. 1920 E HAVE repeatedly expressed the opinion that there is nothing fundamentally wrong with business conditions. The propaganda of extreme pessimism which has been spreading during the past few months is ill-timed and mischievous. With the passing of unusual conditions nothing is more natural than that we should expect a return to a normal business plane, and to achieve such a move ment without great disturbance is the object of all who are really interested in a successful and prosper ous America. To be a highly prosperous nation it is not necessary that the large profits and excessive earnings of the last five years be maintained. We did not secure our envied industrial position under war conditions. On the contrary, our greatest period of genuine pros perity occurred during the years when the world was at peace— when the energy of the world was centered upon production of all necessary goods. It should be apparent to anyone that the volume of business transacted during the past few years cannot be main tained, but a considerable less can be had and we should still have a satisfactory rate of growth as measured by the prewar standard. Conditions continue to improve. There is less talk of depression and more confidence in the general situation. While there has perhaps been no appre ciable lessening of the credit strain there certainly have been indications at other points of distinct improvement. Chief among these is the attitude of the people generally against a continuation of high prices, which has been reflected in the liquidation of commodities and a consequent lowering of the price level. The public holds the key to lower prices, and the remedy lies in using it. In the last analysis the purchasing power of the people measures the extent of our prosperity. Goods produced but not sold add nothing to the national wealth. Only when such goods are actually turned into money is it profitable for the producer. Hence, the willingness of the people to buy determines the degree of prosperity, and when the public retires from the market trouble lies ahead. Lower prices tend to stimulate demand, and a reduced price level will bring the public back into the market. To attempt to place the blame for present high prices would be fruitless, and, perhaps, unjust. We W No. 7 have been engaged in just such unprofitable efforts ever since the upward climb began. We have seen the greatest period of “ buck-passing” ever witness ed in the history of the country. The merchant blames the manufacturer and the manufacturer in turn blames the merchant; labor blames capital, and capital “ passes the buck” to labor; the farmer blames the city man, who in his turn places the responsibility onto the man in the “ tall grass.” So we have created another “ vicious circle.” The truth is that we are all to blame. And it is equally true that we must all assume our share of responsibility in bringing about a return to a normal condition. There must be a complete economic re adjustment, in which we must all play leading parts. Labor must become still more productive, and the manufacturer who adopts measures tending to hold up the present price level by artificial means deserves nothing but the most severe condemnation. The terms of the long-awaited decision of the rail way wage board have been announced, and their acceptance is now up to the men themselves. The amount of the grant does not meet their demands, but the judgment of the board was made after a careful study of conditions, and is generally accepted as just. It may fairly be said that the immediate future of business depends in great measure upon the action of the railroad employees. The situation is preg nant with possibilities both for good and for evil. The power to cripple industry is unquestionably theirs, and a tremendous responsibility accompanies their decision. Should the award be accepted, and the men return to a prewar degree of efficiency the freight congestion can be cleared and industry be free to pursue its onward march; on the other hand, should the decision not be regarded as satisfactory, the situation is fraught with possibilities the conse quences of which no man can foretell. Business has become unnecessarily apprehensive. The situation is still somewhat confused; we are not yet out of the woods. Some dangers lie ahead, but as- we are aware of their presence there is no reason why they should not be avoided. A keen vision, a firm hand and a level head are essential at this time, perhaps as never before, and careful seamanship is all that is required to successfully weather the storm. THE sammwm 2 MONTHLY BUSINESS B1VI1W Credit Situation Unchanged; Commercial Failures Increase; Acceptance Market Active There has been no marked change in the credit ■ituation in this District within the past thirty days, but conditions certainly do not justify any relaxation on the part of banker or business man in keeping their houses in order. The demand for credit is as keen as ever, and new requirements present them selves daily. Any surplus of credit at one point is immediately absorbed by the demand at some other point. Banks are endeavoring to get their resources in liquid condition to finance the farmer. Merchants and manufacturers generally are heavi ly stocked, and the result of the tight money market has been to force many realizing sales. Commercial failures in this District for June numbered 65 with liabilities of $976,000, as compared to 44 with liabili ties of $597,000 in the corresponding month last year. Collections are reported as good for the most part, although some sections report hard sledding. During the past month there was a suprisingly good market in bankers’ acceptances. The buying, somewhat contrary to past months, was not confined to any one class in particular, but was very general. The country banks continued to be a substantial sup port, and many new purchasers, embracing state banks and trust companies, corporations and individ uals, kept the market practically bare of prime paper. In spite of the erratic and high trend of call money, which one day was as high as 14%, with the average for the month somewhat over 7% , the rates on acceptances remained substantially un changed at 5% to 6 y2 %. Commercial paper contin ued at 8%, but even at this rate did not cut into the usual acceptance demand. The state banks in this district have not as yet given the anticipated support to the acceptance market. A few of these institutions have purchased bills and have remained in the market, but the others seem to have disregarded this form of investment entirely. It is, without doubt, a case of disinterest in the profitableness and simplicity of the invest ment, which seems due almost entirely to the over sight of the bankers themselves, for acceptance literature has been circulated very widely, and per sonal solicitation by dealers and others has not been lacking. The supply of bills during the month was not excessive. There was, however, somewhat of a scarcity of shorter time paper. With transportation facilities still upset, bills drawn against domestic shipments were nearly all drawn for the longer period. In this district there were few bills drawn against foreign transactions, while bills against ware house receipts and domestic shipments made up the greater volume of available acceptances. Steel Mill Congestion Worst in History of Trade; Operations Continue Despite Transportation Handicap Traffic conditions in the iron and steel industry during the past month have reached a more acute stage and it has become a matter of constant struggle for the manufacturers to keep plants in operation and finished material moving. The shortage of cars and deficient transportation arising in connection with the switchmen’s strike which had put a severe rein upon works operations, have become intensified through the orders of the Interstate Commerce Com mission restricting open-top cars to the coal trade. While this order has been modified since to permit low side cars to be used by the iron and steel indus try, the beneficial effects have not yet appeared and the outlook for improvement is not hopeful. Piling up of unshipped product on mill and furnace yards has continued all along the line and the congestion in this respect now is the worst ever encountered by the industry. A reccnt estimate made to the Inter state Commerce Commission at Washington by steel officials placed at approximately 1,400,000 tons, the accumulation of finished material in four leading producing districts. Of this amount 345,000 tons was shown to be in the Buffalo, Cleveland and Lorain districts, and 171,000 tons in the Youngstown and valley territory. The Pittsburgh and Johnstown dis trict had 641,000 tons and the Wheeling and middle Ohio districts, 256,000 tons. This total estimate did mot include the large tonnage of semi-finished material whieh has been stacked up in work yards, awaiting a chance to go through the mills, nor the finished stocks in Chicago, eastern Pennsylvania and °t districts. Accordingly an estimate of 2 ,0 0 0 ,0 0 0 tons of iron and steel tied up in the hands of the producers throughout the country is regarded as conservative. The effect of these large stocks which have been increasing despite heroic efforts of both producers and consumers to move them has been to seriously interfere with operations and to gradually shut off production. While there has been some slowing down in con sumption m certain directions, such as apparently has been due to the transportation conditions and some to a falling off in business such as the automo bile industry, the basic needs of iron and steel are well maintained. Buyers accordingly are pressing the producers for material to meet their require ments and are going to great lengths to provide transportation regardless of cost. Thousands of motor trucks have been put in service, haulm* material from the mills to points where cars are available or through to consumers’ plants. Barge shipments from those works which are located along navigable streams, have been heavy. Cancellations of unshipped product are comparatively few. Many of the mills are regulating their operations today en tirely :n accordance with the ability of the buyer to furnish means ot transportation or with his consent to having the steel to be piled on mill yards for in THE MONTHLY BUSINESS definite deliveries. Where such understanding has been settled upon, the material is regarded as noncancellable. '*Coke shortage and considerable high prices have been an important factor seriously affecting the activities of many iron and steel plants, particularly blast furnaces. Spot coke has been selling up to $18 to $20 at the ovens. This has caused considerable talk as to the probability of restoration of govern ment control of coal and coke prices, but nothing tangible along this line has yet developed, it being understood that the government believes it can keep the situation in hand through priority control over cars. Crude material production in iron and steel has kept up quite well considering the conditions, the REVIEW 3 restriction of output applying most severely to the finishing operations. Pig iron production in June, as compiled by the Iron Trade Beview totaled 3,044,351 tons, compared with 2,991,825 tons in May, 2,752,670 tons in April and 3,375,768 tons in March, when operations reached their highest point since the war period of 1918. Furnaces in blast the last day of June numbered 301 compared with 297 on the cor responding date in May. Steel works production in June was on the basis of approximately 42,000,000 tons, which was slightly less than in May. The lake iron ore movement in June rose to 9,233,566 tons. The ore brought down to July 1, was 16,440,505 tons against 18,949,730 tons for the like period of 1918 against which the 1920 movement is being compared. Lake Ore Shipments Exceed Ability of Railroads to Handle; Coal Shortage in Northwest Now Certain The car supply in the ore trade at this end of the route is still far short of the requirements, and 50 boats or more have been on the waiting list at the docks all the time during the past month. Some of the ore carriers have been held in port a week or more and there will not be any improvement in dis patch until ore for direct shipment can be handled in better shape, as the lake front furnace plants are going at top speed and considerable ore is being placed on dock in order to get boats out. The ore movement for June was heavier than figured on and the fleet loaded 9,233,556 tons, which is an increase of 1,252,727 tons over June, 1919. Ship ments up to July 1 were 16,440,505 tons, which is a gain of 432,086 tons over the same time last season. The movement up to July 1 shows a loss of 2,509,456 tons compared with the same time in 1918. Shipments for the latter season were a little more than 61,000,000 tons and when sales for 1920 were made it was figured that the requirements would be about the same as the previous season. That mark will not be reached with the present operation but much time has been lost by the furnaces during the past three months due to strikes and the shortage of coal and the requirements will be cut, but some of the plants that are depending on rail shipments may not get enough ore to carry them through the winter. That there will be a shortage of coal in the North west is pretty certain as the movement up to July 1 was 5,219,000 tons less than it was last year for the same period, and the loss will be greater on August 1 as there was not much increase in shipments in July. That means that the movement from now on will have to be more than doubled in order to reach last season’s total and even then the supply would be short as the requirements will be greater than they were in 1919. It is up to the mine operators and the railroads to get the coal forward as there is plenty of dock and vessel capacity to handle the business. Manufacturing Dominated by Railroad Strike; Unemployment Increases, With Resulting Increase in Efficiency of Labor Transportation conditions continue to dominate the manufacturing field. No section is free from its influence. Raw materials and finished goods are available at sources of origin, but cannot be moved. Relief is expected as a result of the decision of the railway wage board, and a free movement of goods would be the greatest possible factor in restoring confidence. Unemployment is becoming more common, and a marked increase in the efficiency of labor is observed. One of the largest producing companies in this Dis trict reports that “ We have had the greatest four months in our history of pounds produced per man. ’ ’ In the city of Akron alone from 12,000 to 15,000 men have been laid off. Akron warehouses are full of automobile tubes and casings which cannot reach the markets. Evidence is accumulating that production in some lines is fully equal to the demand, if, indeed, it does not exceed it. Automobile makers report the industry in a very healthy condition. Business in that line has slowed up some, but manufacturers see no reason to be other than optimistic. A good foreign demand for cars is noted. Hardware manufacturers state that some unsettle ment exists, owing to the belief of hardware buyers that lower prices will be an event of the near future. Manufacturers predict, on the contrary, that the price trend will be in tne other direction. Auto body makers express the belief that condi tions are more hopeful, the feeling of hesitancy and fear which characterized the trade subsiding to some extent. Orders are said to be placed more judicious ly as to quantity. Makers of shoes report that dealers are extremely cautious on future commitments, and freely predict lower prices for their product. Machine and foundry supply men now state that bookings have dropped off considerably, but for the THE 4 MONTHLY most part they are booked so far in advance that they welcome such a curtailment of orders. One of our largest brush and broom producers reports business in June the greatest in their history. Manufacturers of box board report business as un usually active, and their financial condition never better. Mills generally are from three to six months behind on orders. Tin can makers report the usual volume of orders for this time of year, with tin plate mills far behind on deliveries. BUSINESS REVIEW Conditions are described as “ fa ir” in the wood working machinery line. Tool makers are more inclined to a pessimistic attitude. A marked decline in new business is noted, but the demand continues active in some lines. Pottery makers are experiencing difficulty in securing the proper grade of coal for use at their kilns. Buyers are said to be holding off on purchases, asking for definite prices, which the manufacturers are unwilling to grant. Pottery men state that owing to the uncertainty of raw material prices a definite delivery price cannot be made prior to ship ment. Textile Operations at Standstill Except for Foreign Business There has been no improvement in the general situation in the textile business during the past thirty days. Some of the large mills have closed indefinite ly and cancellations are still coming in, so that prac tically all domestic business on the books of the mills has been wiped out. It is stated that were it not for foreign orders many other mills would be compelled to close. No requests for cancellations of foreign orders have been received, and one of the large nnillfl in the District states that foreign business in June was the largest in the history of the company. Textile manufacturers generally discourage the idea of lower prices, claiming that at the present price of labor no material reduction can be had. Wholesale Trade Shows Substantial Gains Wholesale trade continues to show substantial gains over the volume of trade during the early months last year, as indicated by reports from dealers. Dry goods dealers predict lower prices except in such merchandise as has been over-sold and in which production is backward. Wholesale hardware dealers report that purchases are confined largely to goods needed for immediate wants, and that while prices are not now advancing generally there is no particular point of weakness. The weight of opinion is that prices will decline rather than advance. Grocery dealers report nearly 50 per cent increase in net sales, a considerable part of which is said by some to have been represented by large sales of sugar. The tendency is toward cautious purchasing on the part of both wholesalers and retailers. Buy- ing of canned goods, notwithstanding high prices, is said to average up to that of former years. Dealers are practically a unit in declaring that price concessions cannot be made in their line. Collections are reported as especially good, Sales of drugs show a substantial increase the tendency seems to be to lower prices. Below is printed a tabulation of reports reeeived from dealers throughout the District, compiled from unweighted averages: Increase (or decrease) during May> 19S0, Percent Dry G ood s........—24.0 G roceries.......... 32.2 H ardw are......... 31.2 D ru g s................ 30.2 Increase (or decrease) in Sales during June, moatl. 1920, month Percent 1 1 ,5 47*8 37 2 53*4 Retail Trade Active; Stocks of Goods Somewhat Reduced; No Sudden Price Drop Anticipated During the past six months business in the retail dry goods line has been unusually active. Sales for every month (measured by money values) are in excess of last year, notwithstanding that business during the early months of 1919 showed a marked increase over that of the year before. There has been some break in prices, more particularly in silks, shoes and hosiery, and realizing sales have probably had something to do with the amount of sales. Conservative buying for the future appears to be universal. No great slump in prices is expected, bar ring unforeseen developments. However, the mills are working only on legitimate orders, and the out look at present is that there will be little surplus of made-up merchandise. Stocks in the hands of the retailers have been somewhat reduced, more particularly in the smaller cities and towns. Our tabulation of retail sales and stocks (based on weighted averages) appears elsewhere in the Review Ketail groeers are inclined to the belief that the peak of high prices has been reached, and some ven ture to predict decided reductions” in certain foods that have been out of proportion in price.” Short age of transportation facilities has necessitated carrying larger stocks than would be necessary in normal times. Some dealers report transportation tw W0T8l ^ theh* history> representing that goods is sometimes received from California New York 16 *hlPmenta from Philadelphia and THE MONTHLY BUSINESS EEVIEW 5 Coal Situation Improves; Coke Production Stimulated By Record Prices; Oil Output Increases The Interstate Commerce Commission’s priority order governing the use of coal cars for other than coal purposes has resulted in a distinct improve ment in the coal situation, although complete mine operation is not yet possible. Manufacturers are making every effort to accumulate coal for next winters’ operations, as spring of 1920 found reserve stocks of coal almost depleted by reason of transpor tation difficulties and the miners’ strike during the past winter. While the original order was effective for 30 days, it has been extended for a similar period, which should be reflected in a still further improve ment. Coke production is being stimulated by the record high prices obtaining—quotations being as high as $20.00 for Connellsville foundry coke. Petroleum production has been showing a slight increase, with no further advances in the market price, though it has been stated that a premium is being paid for Pennsylvania crude. Favorable Weather Improves Crop Prospects; Census Shows Decrease in Stock Breeding Favorable weather during the past few weeks has greatly improved crop prospects in this District. Sunshine and a seasonable amount of moisture will result in a better condition report on August 1 than that of July 1. Elsewhere in the Review will be found a tabulated statement of the principal crops in Ohio, showing condition on July 1, one month ago, one year ago, and the ten year average, together with estimated yields. The condition of winter wheat shows a decline of 3 per cent from the June 1 estimate, damage from wet weather and Hessian fly being responsible for the change. Harvesting has begun generally throughout the district, and indications point to a crop barely sufficient to meet the needs of the state. Com prospects are far better than an average crop, notwithstanding the late start. Hot weather is needed to bring the crop to maturity before frost. The oat crop shows great improvement on July 15 over the July 1 estimate. Ideal weather for oat development during the first two weeks of the month is the cause of the improved condition. Hay condition is not so good, through the July 15 report shows improvement over the July 1 estimate in both meadows and pastures. It is estimated that there has been a decrease of 9,000 acres in the Ohio potato acreage for the present year. The July 1 condition is 1 per cent above the 10 year average. Fruit prospects generally are excellent. The fore cast is for an apple crop of about 2 y2 times that of 1919, and the prospective peach crop is reported to be the best in years. A census of live stock on 1,000 farms shows a de crease in young pigs of 16 per cent compared to July 1 of last year, and a decrease of 18 per cent in swine over six months old. The survey also shows a decrease of 3 per cent in the number of cows, 6 per cent decrease in calves, 4 per cent decrease in heifers, and 2.3 per cent in the number of steers. On the other hand sheep show an increase of 4 per cent. Elsewhere in the Review appears a table showing the movement of live stock at principal centers in this District. Building Operations Slowing Up on Account of Transportation Conditions; Fall Outlook Uncertain The building industry in this District is marking time until conditions improve in the matter of trans portation for materials. Coupled with this draw back is also a well established feeling that labor costs and conditions will be more favorable if those con templating building operations postpone their under takings. The record of permits shows a very low ebb for mid-summer, when as a general thing the peak of operations is reached. There has been some improvement in the securing of material, especially cement, the last fortnight, on account of the use of lake vessels for transportation. Little relief has been found in the railroad situation, preference being given to the movement of coal rather than of building materials. The extension of this order for an additional thirty days offers no immediate relief. The outlook for full operations at this time is uncertain, and depends largely upon what progress is made in removing the obstacles now in the path way of the industry. Transportation Improves Despite Handicaps; Car Supply Short; Labor Forces More Nearly Normal Despite the obstinacy of the switchmen’s strike, transportation conditions have shown improvement. The railroads are handling more traffic than they did during the early part of 1919, and more than they have handled during most of the present year. The car supply is short, resulting in an accumula tion of products awaiting shipment. The Interstate Commerce Commission’s Service Order No. 7, which provides that coal mines must be furnished with cars in preference to any other demand and that coal- THE 6 MONTHLY BUSINESS carrying equipment must not be loaded with pro ducts other than coal, except in the direction of mines, is working for an increase in the movement of coal and correspondingly decreasing the supply of equipment available for other products. Labor conditions are somewhat improved, current REVIEW reports showing road forces practically normal, switching forces 70 to 75 per cent normal, and shop forces about 94 per cent. Stringent embargo regulations have reduced termi nal congestion, but the permanency of the relief is open to question. Movement of Livestock at Principal Centers in Fourth District For Month of June, 1920 Cattle 1919 1920 Cincinnati . . . . Pittsburgh . . . . C leveland___ T o le d o ............ F o sto ria ......... 21,241 29,218 9,684 1,155 426 17,790 28,055 6,500 ....... . 260 Hogs 1920 118,891 236,229 83,555 12,675 10,282 1919 1920 128,082 123,633 85,395 ........... 7,512 79,146 90,128 16,622 1,077 614 1919 45,380 64,370 12,691 ......... 273 Cars Unloaded 1920 1919 Calves 1920 1919 20.570 27,317 11,271 1,529 638 12,807 21,043 12,455 2,363 2,918 1,499 2 ,0 2 2 415 23 46 10.458 10,872 10,800 979 520 6,965 8,780 12,186 4,355 1,542 Purchases for Local Slaughter June, 1920 Cincinnati___ Pittsburgh---Cleveland . . . . T o le d o ............ F ostoria ......... 15,494 6,259 8,117 645 50 14,711 5,977 5,696 66,801 30,195 58,616 6,580 1,140 79,630 19,973 73,809 ......... 12,520 10,605 12,326 410 33 2,824 8,513 9,008 Condition of Principal Crops in the State of Ohio on July 1, 1920, as Compared with June 1, 1920 and July 1, 1919 Winter Wheat Condition June 1, 1920 ............................. 6 6 % .......... 1 0 2 % July 1,10 year average .................... (a) Est. yield July 1, bu............... ........... 27,125 Yield 1919, bu.................................... ........... 53,480 Corn Oats 86% 81% 82% 85% 86% 51,731 88% •*•••• 11,291 86% 89% 140,950 162,800 Potatoes Hay 75% 81% Tobacco 85% .... .... 88% 87% ••§ * 3,512 (b) 68,926 .......... (a) in thousands of bushels. (b) thousands of pounds. Department Store Sales Cleve. Pgh. Percentage increase in net sales during June over Percentage increase in net sales from Jan. 1 to June 30 over net sales during same period last year.............. ......... Percentage increase of stocks at close of June, 1920, over stocks at close of same month last year................... ........ Percentage increase of stocks at close of June, 1920, Other Cities District 24.9 31.7 31.5 48.6 28.9 27.1 34.6 66.3 50.4 41.0 53.2 2 .8 — 2 .0 — 1 .0 Percentage of average stocks at close of each month from January 1 to average monthly net sales Percentage of outstanding orders at close of June to total purchases during calendar year 1919...................... ........ 18.6 270.0 413.2 366.8 9.6 16.8 14.8 THE MONTHLY BUSINESS REVIEW 7 Building Operations for Month of June Permits Issued New Construction Alterations 1919 1920 1920 1919 Akron Cincinnati Cleveland Columbus Dayton Erie Lexington Pittsburgh Springfield Toledo Wheeling Youngstown Total 412 208 202 141 128 67 24 283 612 195 468 243 252 85 29 392 10 66 190 49 81 219 46 228 117 695 923 147 99 61 70 109 13 161 13 32 Valuations New Construction Alterations 1919 1919 1920 1920 144 2,103,854 2,266,772 623,755 508 1,938,865 931 5,284,700 4,101,300 737,070 531,655 95 811,903 100 428,501 382,434 153,735 80 69 1 1 0 ,0 0 0 64.500 148 815,494 825,263 14 150,670 8,600 488,752 517,477 160 26,060 18 129,507 742,520 43 246,210 95,960 436,510 485,800 202,425 82,561 337,733 5.490 106,365 6,875 142,493 3,290 20,195 81,510 278,345 554,325 117,005 52,950 69,846 26,750 335,533 15,125 137,355 1,970 27,300 1,795 2,835 2,440 2,310 12,673,987 10,815,610 2,025,697 1,698,014 Inc. or Dec. of 'rotal Valuation 1920 over 1919 148,468— 1,473,275 1,114,875 390,835 353,791— 496,586 24,240 238,937— 150,320— 23,587— 104,767 503,415— 2,186,060 Percent o f Inc. or Dee. 6.3— 163.3 23.9 60.1 40.8— 222.4 26.3 20.5— 90.9— 3.5— 371.4 65.4— 17.4 Total Debits by Banks to Individual Accounts A k ron Cincinnati Cleveland Columbus Dayton Erie Greensburg Lexington Oil City Pittsburgh Springfield Toledo Wheeling Youngstown Total Week Ending July 14,1920 Week Ending July 16,1919 20,690,000 65,712,000 201,537,000 31,474,000 13,124,000 8,372,000 5,923,000 5,224,000 3,901,000 202,371,000 4,361,000 34,719,000 9,509,000 19,070,000 22,933,000 60,657,000 200,880,000 32,476,000 1 2 ,1 2 2 ,0 0 0 6,876,000 4,042,000 3,858,000 3,038,000 180,861,000 3,487,000 30,277,000 9,589,000 19,431,000 2,243,000— 5,055,000 657,000 1 ,0 0 2 ,0 0 0 — 1 ,0 0 2 ,0 0 0 1,496,000 1,881,000 1,366,000 863,000 21,510,000 874,000 4,442,000 80,000— 361,000— 625,987,000 590,527,000 35,460,000 Increase or Decrease Percent of Inc. or Dec. 9.7— 8.3 .3 3. — 8 .2 21.7 46.5 35.4 28.4 1 1 .8 25. 14.6 .8— 1 .8— 6. Clearings 1920 Akron Cincinnati Cleveland Columbus Dayton Erie Greensburg Lexington Pittsburgh Springfield Toledo Wheeling Youngstown Total June 16 to July 15 1919 54,576,000 312,398,616 628,554,498 63,741,800 22,743,848 11,777,239 7,385,486 6,389,382 761,445,954 8,318,026 66,827,000 23,332,845 21,979,422 32,526,000 248,637,660 496,419,254 58,463,700 21,617,004 9,683,837 4,701,585 5,410,499 629,135,731 6,978,822 55,387,024 21,724,489 26,316,478 1,989,470,116 1,617,002,083 Increase or Decrease Pereent o f Inc. or Dec. 22,050,000 63,760,956 132,135,244 5,278,100 1,126.844 2,093,402 2,683,901 978,883 132,310,223 1,339,204 11,439,976 1,608,356 4,337,056— 67.7 25.6 26.6 9. 5.2 372,468,033 23. 2 1 .6 57. 18. 21. 19.1 2 0 .6 7.4 16.4— 8 THE MONTHLY BUSINESS BE V I E W PICKUPS ON BUSINESS TOPICS national debts o f the world now approximate T HE $265,000,000,000 against $44,000,000,000 at the beginning of the great European War. The interest charges on the grand total now exceed $9,000,000,000 per annum, as against about $1,750,000,000 in the year before the war. The per capita o f national indebtedness averages for the aggregate population of all the countries for which debt figures are available about $150 per capita, against approximately $27 per capita in 1913, and annul interest charges about $6.00 per capita at the present time, as against about $1.00 per capita in 1913. According to a recent report it is estimated that the sum of $8,000,000,000 is spent by Americans each year for luxuries. This means that every family in the country pays out $7.00 each week that it might save, which in a year amounts to $364.00. Among the various items are $2,110,000,000 for tobacco, $800,000,000 for cigarettes, $1,000,000,000 for candy, $50,000,000 for chewing gum, $350,000,000 for soft drinks and soda water. The country’s annual bill for perfumery and face powder is $750,000,000. Oil refineries plan to make a nation-wide appeal for con servation of gasoline in pleasure cars, which, if not heeded, will be followed by system o f rationing through out U. S., to be put into effect by refining and marketing companies. A Standard Oil Co. official is quoted as saying American auto mobile manufacturers are partly at fault for not designing cars to cover greater distances on same amount of gasoline. English cars go 22 to 25 miles on one gallon, while American cars only make half the distance. The efficiency of labor is increasing, according to reports from 49 manufacturers operating in 40 different lines of industry in New York City. This testimony is submitted by the same manufacturers who reported in September, 1919, that in general labor was not more than 70 per cent efficient, judged by normal standards. The increase is not as yet remarkable, but the testimony is unmistakable that a change for the better is now well under way. American firms drawing drafts on customers in the Brit ish West Indies should take precautions to insure collec tion of such drafts in terms of American dollar currency and not of the local West Indian dollar currency. Until the recent abnormal development in exchange American dollars and local West Indian dollars were practically at par. At pres ent, however, the difference is approximately 20%, and has been as much as 40%. lU IIIIIIH M IM IIIIItM llllllllllltlH I Less tobacco has been planted in the South this year, owing mainly to the shortage of labor. According to E. 0. Westbrook, tobacco expert o f the Georgia State Agricultural College, Georgia has or.ly about two-thirds as many acres planted as in 1919. South Carolina an 8 only about 60 per cent o f last year’ s acreage, while there has been only a slight increase in North Carolina. Total exports of rubber from Ceylon during 1919 consti tuted the record figure o f 44,818 tons, an increase of 50 per cent over the preceeding year. Exports to the United King dom and to the United States increased 25 per cent over 1918. “ Central America as an Automobile Market” is the title o f a recent circular issued by the Latin American Division, Bureau o f Foreign and Domestic Commerce, Washington. The United States is the leading source of supply of the leather industry, exporting on an average $200,000,000 worth o f unmanufactured leathei annually. EXICO will export during 1920 between 130,000,000 and 135,000,000 barrels of oil, more than the rest of the M world including the United States, according to the Tampion oil statistician. His figures are based on the record-breaking production o f oil in this country during the first five months of 1920. He declares he has collected data from unofficial, but authoritative sources, figures which show that peroleum exports for the first five months of this year were 48,617,167 barrels compared with 28,235,039 barrels during the same period o f 1919. Exports for May only are given as 12,520,568 barrels, which is nearly double the shipment for 1919, and sets the world’s record for one month’s production. Production for 1920, it is estimated, will be 150,000,000, which is approximately 72 per cent greater than that of last y®a;r; " egarding his estimates relative to shipments in 1920 which he asserts will be 80 per cent greater than in 1919, he says about 100,000,000 barrels will go to the United States. Chemists in the color laboratory o f the Department of ^ 1C, JUre 6 dwcovered a method o f producing phthalic anhydride, an important dye intermediate at so low a cost that it is now being made in this country at a price that has made it possible to sell it in Switzerland in direct competition with Germany. Before the war this product was made only in Germany and Austria. Phthalic anhydride is used in t S manufacture o f more than 300 chemicals. It is an inter w tk h ^ “nd,go.ma° CtUre °f BeVend brim“ « <*<“ . « • «* The mercantile agency o f E. G. Dun & Co has reemitw opened a branch office in Vigo which will handle all b S j o f that company in the Provinces o f n o r t h w e s t e r n ^ ^ known as Garcia. American firms will thus be e n a b le d ^ S JE SSLr S • ^ 0mation concerning the commweuS standing o f Spanish firms in this district and the latter will T ilar informati°n about firms in the United States with whom they may have business dealings. Under the Webb-Pomerene Act, forty-two American busi nesses have taken advantage o f the privilege of combination ° trade- The export associations have a total of 734 members and represent about a thousand plants and factories. It is worthy o f note that the United States is the only nation which has empowered a governmental department to prevent unfair practices among its exporters. — *■— M... . It is announced from Berlin that German manufacturers o f adding machines are appealing to the Government for assistance in their fight to prevent importation o f Americanmade machines, which they claim now are superfluous, as German industry is capable o f supplying home demands. The Department o f Commerce has been notified by cable gram from Rome, that the embargo on the exportation o f leather which has been in effect practically since the begin ning of the war has been lifted. All kinds of leather mav now be freely exported from Italy. m u h i i ii h i i UM ti i t m i n i i i i i i i i m American mining men who left Mexico during revolution ary penod are returning in great numbers, according to G H Bredsford o f Mexico City, who declared supply of cheap labor was ample, with hydro-electric plants furnishing power, principal problem being transportation. French firms have ordered several million marks’ worth of mining machinery and commodities from Germany for northS o S ? pa,d f0r by Germany *8 o f reparation
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