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MONTHLY BUSINESS REVIEW Covering financial, industrial, and agricultural conditions in the Fourth Federal Reserve District Federal Reserve Bank of Cleveland Vol. 8 Cleveland, Ohio, August 1, 1926 Most lines of trade have held up well during the first part of the summer season. Production is ahead of last year, and the June level was equal to that of May. In some industries, notably iron and steel, operations have been at an unusually high rate fo r this time of year. Distribution, as represented by department store sales, was also greater during June than last year. The grad ual but prolonged decline in prices appears to have been halted, at least for the present. The Bureau of Labor's index in June rose slightly over May, the rise now hav ing continued for two months. Earnings statements of a sufficient number of large industrial corporations have already been published to give an idea of business in the second quarter and also the first half year. In the second quarter, net earnings (after all deductions, but before dividends) o f 45 indus trial concerns in the United States amounted to $70,087,000 as compared with $61,975,000 in 1925, a gain of 13.1 per cent. Only 10 companies earned less than last year. F or the first half of 1926, net earnings of 57 in dustrials were $159,884,000 a ; compared with $141,814,000 a year ago, a gain of 12.7 per cent. Increases were shown by 42 corporations, and decreases by 15. Additional earnings statements from some of the la rg est corporations may affecc the above figures to some extent, but from what is already available, the conclu sion may be drawn that second quarter profits were about as much ahead o f last year as were those o f the first quarter. In the Fourth District, 11 out o f 22 representative in dustrial firms reported earnings above the second quarter of a year ago. There were 8 declines, and 3 practically the same. For the half-year, 24 firms reported:— 13 increases, 8 decreases, and 3 no change. Financial Conditions Savings deposits of seventy-one selected banks in the larger cities of the Fourth Federal Reserve District amount ed to $914,116,670 on June 30, 1926, an increase o f 5.6 per cent over a year ago and 0.7 per cent over the preceding month. Commercial failures in this District, according to R. G. Dun and Company, numbered 144 in June, as com pared with 155 in May and 149 in June, 1925. Liabilities aggregated $3,078,135 as compared with $5,512,039 a year No. 8 ago. In the United States, there were 1708 failures in June, 1730 in May, and 1745 in June, 1925. Changes in the main items in the balance sheets of Federal Reserve and member banks are as follow s: Gold reserves ............... Discounts ......*............ Acceptance* ................... U. S. Securities ........... Total bills and securities Federal Reserve notes in Circulation ................. Total Deposits ............... Federal Reserve Bank o f Cleveland Federal Reserve System (In Millions) (In Millions) July 14, July 15, June 16, July 14, July 15, June 16, 1926 1925 1926 1926 1925 1926 $298 $301 $267 $2,845 $2,791 $2,837 40 47 44 515 455 898 21 21 22 234 281 238 37 31 49 391 344 482 100 116 1,147 1,043 1,119 195 193 206 135 189 186 1,707 2,287 1,627 2,232 1,688 2,291 Reporting Member Banks— Fourth District United States (In Millions) (In Millions) July 14, July 15, June 16, July 14, July 15, June 16, 1926 1925 1926 1926 1925 1926 Loans secured by stocks and bonds ................... $551 $484 $539 $5,469 $5,064 $5,366 All other ....................... 808 760 812 8,540 8,222 8,690 Total loans ................... 1,359 1.244 1,351 14,009 13,286 14,056 Investments ................... 640 638 636 5,655 5,484 5,688 Demand deposits ........... 1.055 1,024 1,037 13,058 12,987 18,180 Time deposits .... .......... 827 746 809 5,685 5,164 6,604 *ron an<* s*eel With a surprising display o f vitality which is practically unprecedented fo r this period o f the year, iron and steel demand continues in high volume. Not only has the run o f incoming business kept up to the exceptional lev jl o f the past 30 or 45 days, but it is showing some tendency to expand. A s a re sult, the industry is witnessing the unusual spectacle of steel production being increased in July when the normal dull period o f midsummer should be appearing in earnest. Specifications coming to the mills during the first three weeks o f July generally have been in excess o f those for the corresponding period in June which was an espe cially good period fo r a summer month. A number of the producers are pronouncing July in point o f sus tained tonnage and relative activity to be the best they have ever experienced. A fter having averaged 80 per cent o f capacity in June, steel ingot production in the third week of July had reached 82 per cent and some further increases were scheduled before the end o f the month. The Steel cor poration has raised its production to about 87 per cent while the independent companies were running at 78 to 79 THE 2 MONTHLY BUSINESS per cent. The Youngstown district well reflects the cur rent improvement, having recovered to a basis of 79 per cent o f ingot output and 88 per cent o f sheet ca pacity after having been down recently to 60 and 70 per cent, respectively. If production can be sustained even on its present basis for the next few months, 1926, it is indicated, will estab lish a new high record for steel output, exceeding the previous high mark established in 1925. Under normal expectations production should be higher in the fall than now. The complete figures fo r the first half o f the year show that the industry operated at the highest rate for an initial half year ever known or at an average o f 87.2 per cent o f theoretical capacity. This meant a grand total o f 24,260,537 gross tons of ingots. During the first half o f 1925 the average capacity active was 81.4 per cent and production 22,383,071 tons. It has been computed that to attain a new high record of steel output for this year, it is necessary to operate only at 71 per cent fo r the last half. In the July-December period in 1925, production ran at 78.7 per cent of capacity. Pig iron output has been holding up well but it does not show the same strength as steel. As compiled by IRON TRADE REVIEW , June production was 3,232,478 gross tons or a daily rate of 107,749 tons compared with a daily average o f 112,187 tons in May. This represents a decline of 3.95 per cent. However, pig iron production fo r the first half was the best since 1923 and exceeded the six months ending June 30, 1925 by 837,000 tons or 4.4 per cent. A t the end of June, 220 blast furnaces were blowing, a loss of 9 from the preceding month and representing 59.1 per cent of the country’s total list. Orders fo r steel are marked by their wide diversity and even balance among all the main consuming channels with the possible exception o f the railroads. The latter con tinue to buy equipment sluggishly. What appears to be the largest buying movement in pig iron since the war is subsiding after having run for six or seven weeks. In that period upwards o f 1,500,000 tons of iron were placed under contract fo r third quarter and last half. Most of this was done at some expense of prices as production has been large and competition ex ceedingly keen. Steel prices on the other hand have been firmer and in the major products o f plates, structural shapes and steel bars, the recent advance o f $2 per ton now seems to have been thoroughly established. IRON TRADE REVIEW composite o f fourteen leading iron and steel products registers this fact, standing on July 21 at $37.67. On the corresponding date one month earlier it was $37.58. Production of soft coal continues to run well aheafl o f other post-war years, except 1923. The domestic market has been fairly steady, allowing for the usual summer dullness. During the past month one effect o f the British strike has been an increase in foreign demand, particularly fo r W est Vir ginia high-volatile coal. This has helped to keep pro duction above last year’s level. REVIEW One report from the Fourth District indicates a firm demand and a large volume of business with a narrow profit-margin. Others report the domestic demand as being quiet with householders showing but little disposi tion to stock up. Prices in general have shown no great changes recently. Rubber and Tires A general cut in tire prices took place early in July, ranging from 5 to 20 per cent on the various types and sizes. This reduction may be attributed m ain ly to the piling up o f stocks in manu facturers’ hands, which in turn may be traced to the unseasonable spring weather and the practice o f the public in recent months o f confining their purchases to a minimum in the expectation o f price reductions. Earnings o f tire companies fo r the first half of 1926 have been distinctly disappointing, as a result of the heavy stocks carried by manufacturers, the light public buying, and the rapid decline in the price of crude rubber since the first o f the year. Since the recent price cut, however, some improvement in demand has been noted, and there exists a better feeling among manufacturers. Stocks in the hands of manufacturers continued to climb during May, the latest month available; but production in the latter part of June and the first week in July was considerably cu r tailed on account o f inventory taking, and this, togeth er with the stimulating effect o f tire price cuts, has had a beneficial effect upon the situation with regard to stocks. The price o f crude rubber averaged around 43 cents in June, and on July 19 stood at 41% cents a pound (first latex, spot). A year ago it was advancing very rapidly, standing at 81 cents on July 3 and 96 cents on July lo ! World exports o f rubber fo r the first fou r months of 1926 amounted to 193,784 tons, as against 150,863 in 1925, or an increase of 28.5 per cent. The distribution of this year’s exports, according to the Bankers’ Trust Co., was as follow s: • Tons % of total Malay States (British) ..........................75,723 39,1 Dutch East Indies, exported through Malay States ....................................43,908 22.7 Ceylon (British) ......................................18,845 9^7 Java (Dutch) ..........................................18,543 9*$ Wild and Brazilian ................................13,669 7*0 Ail other, mostly Sumatra (Dutch) ....23,096 11,9 From the above table it will b? noted that exports from the Dutch colonies ran around 80,000 tons, or 41 per cent o f the total. CM | Automobiles Production o f automobiles in the United States in June amounted to 383,575 cars and trucks, according to ’ the United States Department o f Com merce. This figure shows some loss from May and is 5,000 under that o f June, 1925. June w as the first month of 1926 in which output fell below that o f the corresponding month last year. The decline is due entirely THE MONTHLY BUSINESS to the production of fewer passenger cars, Since truck and bus output in June continued to run ahead of last year. Production for the first six months o f 1926 aggregated 2,070,390 passenger cars,— as compared with 1,866,131 a year ago,— and 254,387 trucks,— as compared with 229,114 a year ago. Output for the first half-year o f 1926 estab lished a new high record fo r that period. Clothing There has been but little change in the various lines o f clothing manufacture. Earnings in the second quarter of 1926 made a better comparative showing against 1925 than those o f the first quarter. The majority of reporting manufacturers expe rienced larger earnings in the first half of 1926 than a year ago, and in one or two cases exceptionally high earnings were reported. As a rule, the increases were moderate. Sales of 18 wholesale dry goods firm s in the Fourth District, after showing an improvement in May caused largely by late spring buying, again fell behind in June, the decrease from last year being 2.4 per cent. June sales were the smallest for that month in the past six years with the exception o f 1924. This condition is a little better than that which has existed throughout 1925 except in May, inasmuch as each of the first four months brought the lowest sales of any corresponding month from 1921 to 1926 inclusive. Sales of some lines of clothing in department stores in the Fourth District increased substantially in June over a year ago, including the women’s and misses’ ready-towear lines, hosiery, and furs. On the other hand, sales of men’s clothing and boys’ wear were 11.5 and 5.4 per cent lower, respectively. Large declines were also shown by waists and blouses, sweaters, muslin underwear, and yard goods. Shoes Shoe manufacturers have been receiv ing fair orders in recent weeks. Pro duction in this District for the first five months of 1926 was slightly ahead of last year, but was 10 per cent be hind 1924. Preliminary figures for June indicate a gain over May, whereas in 1925 and 1924 June production de clined from that of May. Final figures fo r the United States give May output at 23,087,202 pairs, as compared with 26,637,138 in April. Wholesale shoe sales of reporting firms made a sub stantial gain of 9.4 per cent in June over a year ago. For the first half year, sales were 5.4 per cent greater than in 1925, but were behind the four preceding years. The low point in sales in the last two years is evidence of the depression through which the shoe industry has passed; but the gain this year over last is an encouraging facto;-. Shoe sales of department stores in the Fourth District in June were 0.5 per cent greater than in June a year ago. Both men’s and women’s shoes showed very slight increases. REVIEW Z General Manufacturing Present conditions in various lines of manufacture in this District are rather mixed, both as between different indus tries and within particular lines. In general, profits for the first half of the year have exceeded those of a year ago, although this is by no means a universal condition. Most o f the paint manufacturers state that business is now unusually good and that it compares favorably with that of a year ago. A high level o f activity in both building and automobile production in the second quarter has favored this industry. A large volume o f business in the lacquer portion of the trade is reported. The plate glass industry experienced a satisfactory first half-year, but some seasonal fa llin g-off in demand has recently taken place. Sales are stated to be heavier than a year ago, but at lower prices. Agricultural implement makers have enjoyed somewhat greater earnings than last year. Some lines of machinery manufacture are doing better than a year ago, others not so well. Business in the paper trade compares somewhat unfavorably with 1925. Reports from various other miscellaneous lines show more increases than decreases in half-year profits as compared with last year. Ohio Agriculture W heat— The lateness of harvesting ana threshing has prevented the issuing of any positive figures as to yield throughout the entire state, but with threshing well under way in the south ern counties, and based on reports o f condition of the crop in other sections, a conservative estimate places the increase in the total state crop as almost 50 per cent over last year. The Department of Agriculture, in their mid-July estimate places the total yield at 32,900,000 bushels, or 17.8 bushels per acre. C om — With a 5 per cent decrease in acreage, the present outlook indicates something like a three-fourths crop. The recent change from the cool, dry weather of early spring has greatly improved conditions, but the fields present a somewhat ragged appearance showing the earlier ravages of the cut-worm. Oats— Present indications point to about an average crop, a decided improvement having been shown in the last month. This in contrast with the condition o f the crop in the United States which is reported as being below the average. H ay— The outlook for hay is poor, most meadows showing not only a short growth but a thin stand. With a decreased acreage o f about 5 per cent the yield per acre is estimated as very little above that o f last year’s very poor crop. Other Crops— Potatoes are estimated at about the same as last year in both acreage and yield. Rye is show ing rather poorly with a decreased acreage. Both barley and buckwheat acreages are greater than a year ago, with no marked change in condition. Practically all fruit crops are reported as ranging from good to excellent, being especially promising in the northern portions of the state. THE 4 B— MONTHLY g g g g g g g B U SIN ESS REVIEW ' . SSSBSBSSBSSSSSSSm Pennsylvania During the month of June the weather was too dry, and the temperature too low, in the western part of the state fo r crops to make much progress, but the more seasonable weather of the past month has brought about great improvement in conditions. Wheat is still some 5 points below last year’s condition, but the Department o f Agriculture reports a gain of 7 points over the estimate o f last month. Corn is far below last year,— latest estimates showing an average condition o f 72 per cent as compared with 90 per cent last year, and a ten-year average of 85.6 per cent. The indicated productions of both oats and potatoes are below last year's crops, showing decreases of 6.3 per cent and 8.2 per cent respectively. Corn forecast shows a drop of 28.7 per cent from last season, while the decrease in hay is estimated at 25.2 per cent. All fruit crops are reported as far above the ten-year average. Kentucky and West Virginia The wheat crop in the southern part of the District is estimated as ranging from 12 to 15 per cent better than a year ago, on an acreage which is about 7 per cent greater. Corn conditions in this section vary greatly in different counties, ranging from poor to excellent according to whether weather conditions were favorable. Taken as a whole, however, estimates point to a decrease o f about 8.5 per cent from last year. Oats, barley, rye, and hay, show decreases from last year, while potatoes, both Irish and sweet, show indica tions of a much better yield than a year ago. The Government crop report for July estimates this year’s acreage of hurley tobacco in Kentucky at 255,000, the same as last year. Acreage o f all types in Kentucky approximates 426,000 acres, a decline of 53,000 from a year ago. These estimates, of course, are subject to revision with the progress of the season. ■ first half of 1926, all sections of the country showed de clines except the Middle Atlantic and Southern. In analyzing the record-breaking activity o f building during the past year or more, it is of interest to note the effect of the large gains occurring in New York City. Beginning with July o f 1925, building in New Y ork City in every one o f the succeeding twelve months showed greater gains (or smaller losses, as the case m ight be) than the country at large over the same month in the preceding year. In only one month— April, 1926— did New York City permits decline from the preceding year, while in six out of the twelve months the 180-odd cities outside o f New York showed decreases in the value o f permits. F or the first half o f 1926, permits in New Y ork gained 10.8 per cent over 1925, but outside o f New Y ork there was a decrease o f 7.2 per cent. The follow in g table shows the gain or loss in valuation o f perm its over the same month in the preceding year: 1926—July August September October November December 1926— January February March April May (% U. S. outside United States New York City of New Y ork gain or loss over same month in preceding: year) +48.4 +128.2 + 3 1 .* +38.1 +182.7 + 13.8 +32.4 + 87.7 +25 * +26.2 + 82.6 + 9*4 +28.9 + 80.2 +14 8 + 8.7 + -*4.4 — 2 6 + 8.8 + 15.8 + g’ j _ 8.5 + 5-1 — 12*6 + 5.9 + 28.6 — o’* — 10.4 — 1.7 — 1*’ * — 6.6 + 0.1 + 10.J + 12.8 —10^0 — 4.2 The value o f permits in the Fourth District continue to show a decline from last year. In June the loss amounted to 10.5 per cent, and it was 16.2 per cent fo r the first six months. Fourteen cities, however, made gains in June, while in May only five gained. The only cities showing an increase fo r the six months were Akron, Ashtabula, Parma, Lima, and Youngstown. Tobacco Although planting was late in the burley sections, the crop was reported to be in very good shape about the middle o f July, with present conditions favorable. Timely rains a i d e d the growing plants. There were some local losses due to soil washing after heavy rainfall, but these had practically no effect on the crop as a whole. A sale o f about half a million pounds of burley fo r ex port to Europe was recently reported by the Burley To bacco Growers’ Cooperative Association. Building Permits fo r 187 cities reporting to Bradstreet’s amounted to $338,168,837 in June, a decline o f 2.4 per cent from June, 1925. The second quarter o f this year decreased 6.4 per cent, and the first six months 2.9 per cent from last year. For the Building O perations June 1926 (Valuation of Permit*) Akron............................. Ashtabula...................... Barberton...................... Canton........................... Cincinnati...................... Cleveland proper......... ” suburbs: Cleveland Heights. East C levelan d .. . . E uclid....................... Garfield H eight*.. . Lakewood................. Parma....................... R ocky R iver........... Shaker H eights.. .. Columbut....................... Covington, K y .............. D ayton........................... Erie............ ................. Lexington, K y............... Lim a............................... Mansfield....................... N e w a r k ... ............... Pittsburgh, Pa.............. Springfield..................... T o le d o............................ Wheeling, W. Va.......... Youngstown.................. June % change Jan.-June Jan- J “ n« % change 1926 from 1925 1926 1925 fro m 1925 1,526,940 — 5 .0 8,482,725 8,203,968 3 .4 437,105 774.7 741,477 544,511 36.2 62,794 — 33 4 397,380 459,833 — 1 3.6 495,620 0.6 3,039,309 3,709,707 — 18.1 3,292,440 — 5.5 14,453,570 17,368,570 — 1 6 .8 7,056,875 — 15.5 35,000,400 36,838,125 — 5 .0 720,640 146,902 162,010 278,000 855,550 235,000 44,400 851,050 2,276,100 191,700 583,985 521,774 127,447 159,211 475,550 48,400 3,731,897 156,450 1,826,408 140.596 720,505 — 13.9 — 6 7.9 T o ta l...................... 27,125,349 •January omitted. 10.5 — 8.1 12.6 75.9 68.9 — 56.1 6.8 3.3 78.3 — 47.2 — 74.1 — 25.7 161.3 26.9 10.2 — 5.7 9.3 13.3 — 6 3.0 — 12.7 3,578,162 681,568 842,385 1,351,200 2,530,235 763,550* 248,920 3,038,405 11,668,700 845,700 4,087,558 2,620,802 1,195,933 916,321 1,802,596 212,950 20,070,013 769,000 7,022,556 931,563 5,937,467 133,230,445 5,690,500 2,464,196 1,039,425 1,950,250 3,819.140 739,385* 538,620 5.556.405 13,081,600 1,679,850 6,137,043 4,479,888 1,350,295 894,841 2,286,160 364,085 23,553,254 902,165 8,232,652 2.410.405 4,636,370 158,931,243 — 37.1 — 7 2.3 — 1 9 .0 — 3 0 .6 — 33.7 * 3.3 — 5 3 .8 — 4 5 .3 —10.8 — — — — 4 9 .7 3 3.4 4 1 .5 1 1.4 2 .4 •—21.2 —41.S — — — — 14.8 14.8 1 4.7 6 1 .4 28.1 — 1 6.2 THE Building Materials MONTHLY BUSINESS report that business is running on a basis. Profits fo r the first half year appear to be somewhat less than fo r the same period last year. The Common Brick Manufacturers’ Association reports that European brick makers have begun to ship large quantities of brick into this country, but in spite o f such imports the volume of business has held up well, owing to the continuation o f high building activity and the in creasing use of brick in residential construction. Cement output for Ohio, Pennsylvania, and West Vir ginia, totaled 1,616,000 barrels in June, an increase of 1.8 per cent over a year ago. Shipments exceeded pro duction by nearly 400,000 barrels,— an excess being usual at this season—with a consequent reduction o f stocks; but the latter were still 28 per cent higher on July 1 than a year ago. A similar situation exists in the country at large. The Aberthaw index of industrial building costs re mained unchanged on July 1, at 199. Retail Trade % change— June 1926 compared with June 1925 Lumber manufacturers in this District normal 5 REVIEW Silks and Velvets ............................ Cotton Dress Goods ........................ Domestics ............................................ Toilet Articles, Drugs ...................... Men’s Clothing .................................. Men’s Furnishings ............................ Boys’ W ear ....... ................................. Women’s Coats .................................. W omen’s Dresses .............................. Misses’ Ready-to-W ear .................... Millinery .............................................. Hosiery .................. ............................. Muslin and Silk Underwear ........... Shoes ..................................................... Furniture ............................................. Draperies ............................................ Floor Coverings ................................ House Furnishings ............................ —11.5 —29.2 + 0.4 — 1.5 —11.5 — 7.3 — 5.4 +90.0 + 1-2 +18.7 +10.5 + 7.9 —11.1 + 0.5 + 8.8 + 9.6 +12.3 —13.3 Sales of 19 wearing apparel firms in this District in June gained 6.9 per cent over June, 1925, and fo r the half year were 2.5 per cent ahead. Sales of 61 retail furniture firms decreased 6.0 per cent from a year ago. Chain grocery firms in June gained 3.6 per cent over last year (per individual unit operated), and chain drugs gained 3.9 per cent. Sales of 68 department stores in this District in June fell 1.6 per cent be low June 1925. The only cities show ing gains were Pittsburgh, Youngstown, and Dayton— the latter 15.6 per cent. After the good showing of May, which gained 4.4 per cent, the decline in June was not strange. A t the same time, June sales were not entirely satisfactory, this bank’s index number of sales standing at 107, as compared with 109 in June of 1925, 108 in 1924, and 119 in 1923. Tweaty-seven out of 52 separate departments showed decreases in June sales as compared with last year. De partments showing gains of over 10 per cent were leather goods, women's coats, misses' ready-to-wear, furs, gloves, millinery, lamps and shades, floor coverings, books and stationery, and musical instruments. Departments show ing decreases of over 10 per cent were silks and velvets, cotton dress goods, laces, trimmings and embroideries, neckwear and veilings, umbrellas, men’s clothing, women’s suita, women’s skirts, waists and blouses, sweaters, muslin underwear, petticoats, aprons and house dresses, and house furnishings. Percentage changes in departments doing the largest business in June were: Wholesale Trade This bank’s index number o f sales of five wholesale lines (1919-1923=100), stood at 88 in June, as compared with 87 a year ago, and 83 in June, 1924. The past month ran behind the same month in 1921, 1922, and 1923. There was a slight gain over May, as well as over June of last year. Of the individual lines, sales o f drugs, shoes, and groceries, reported increases over a year ago, while those o f dry goods and hardware were less. For the first half o f 1926, grocery sales were 2 per cent less than in 1925; dry goods, 4.8 per cent less; hardware, 3.7 per cent less; drugs, 7.8 per cent greater; and shoes, 5.4 per cent greater. The past twelve months have been prosperous fo r most lines o f industry, but there has been a wide disparity be tween the various distributive lines, at least as regards sales. Taking the average yearly sales from 1919 to 1923 as a base, sales of reporting wholesale drug firms in this District have increased 14.5 per cent over this base during the past twelve months, (July, 1925— June, 1926) and hardware sales have increased 2.2 per cent. The other three reporting lines show large decreases; groceries, 16 per cent below the 5-year average; dry goods, 21.5 per cent below; and shoes, 28 per cent below. The figures fo r the last two are evidences of the diffi culties which have beset the textile and shoe trades. THE 6 MONTHLY BUSINESS REVIEW F ourth D istrict B usiness S tatistics (A ll figures are for Fourth District unless otherwise specified) June 1926 Millions of dollars Bank Debits (23 cities) Savings Deposits (end of month) Ohio (43 banks) Western Pennsylvania (27 banks) Total (70 banks) Commercial Failures— Number “ “ — Liabilities Postal Receipts— 9 cities Sales— Life Insurance— Ohio and Pa. -D e p t, Stores— (54 firms) —W holesale G rocery Thous. of dollars Actual Number Thous. of dollars (49 firms) “ Dry Goods — (18 “ ) “ Hardware ■ — (16 “ ; “ _ Drugs — (16 “ ) Building Permits, Valuation— 13 cities Production — Pig Iron, U. S. T h o u s. of T o n s — Steel Ingots, U. S. “ — Automobiles, U. S. Passenger Cars Actual Number Trucks Thous. of Tons “ — Bituminous Coal, 4th Dist. barrels “ — Cement: Ohio, W. Va., Wn. Pa. “ — Petroleum: Ohio, Pa., Ky. p a irs “ — Shoes, 4th Dist. casings — Tires, U. S. to ns Bituminous Coal Shipments (from Lake Erie ports) Iron Ore Receipts (at Lake Erie ports) 1 6 months’ average ,J M ay 1 Jan.-M ay Figures Confidential R etail and W holesale Trade of Reports D E P A R T M E N T STO R ES A k ro n .......................................... C a n to n ....................................... C in cin n a ti................................. C lev ela n d .................................. C olu m b u s.................................. D a y t o n ....................................... N ew C a s tle .............................. P itts b u rg h ................................ T o l e d o ........................................ W h e e lin g ................................... Y o u n g s to w n ............................. Other C ities............................. D is tr ic t...................................... W E A R IN G A P P A R E L C in cin n a ti................................. C le v e la n d .................................. O ther C itie s............................. D istrict....................................... F U R N IT U R E C a n t o n ....................................... C in c in n a ti................................. C le v e la n d .................................. C o lu m b u s .................................. D a y t o n ....................................... T o le d o ........................................ O ther C itie s .............................. D is t r ic t ....................................... C H A IN S T O R E S * D rugs— D is t r ic t ...................... G roceries— D istrict W H OLESALE A kron. . . . Cleveland Erie.......... G R O C E R IE S 5 3 7 6 7 3 3 7 5 5 3 14 68 — — — — — 4 .0 7 .6 3.2 5.4 5 .0 15.6 — 17.4 0 .4 — 1.6 — 5.2 4 .7 — 0 .6 — 1.6 6 4 9 19 8.8 7.3 4.1 6 .9 3 11 9 16 5 6 U 61 — 28.1 9 .9 — 7.2 — 5.6 7.2 — 19.0 — 9 .0 — 6 .0 3 5 3.9 3.6 3 4 4 10 3 T o le d o......... 3 Youngstown 27 Other Cities, 54 District........ IS W H OLESALE D R Y GOODS. 16 W H OLESALE D R U G S . 16 W H OLESALE H A R D W A R E .. 6 W H OLESALE SHOES. . . . . . . . ♦Sales per individual unit operated. Percentage Increase or Decrease SALES SALES Jan.-June 1926, June 1926, compared with compared ith Jan.-June 1925. June 1925. — — — — 3.3 8.2 0 .4 6 .4 0 .6 — 9.5 10.1 0 .2 — 2.4 7.5 — 4.7 9 .4 — 0 .8 — 6.1 5.5 _ 1.6 — 0 .4 10.7 — 13.0 — 1.9 — 3 .0 — 4 .8 — 0.04 3.8 — 0.5 June 1925 — 9.5 — 5.5 — 0.1 — 11.0 1.4 - - 7 .0 4 .7 — 2 .0 — 4 .8 7.8 — 3.6 S .4 % J a n .-J u n e 1925 change 2,996 2,892 + 3.6 17.785 16,836 670,830 237,336 908,166 144 3,078 2,810 101,232 23,511 7,362 3,132 2,176 1,824 27,125 3,235 3,751 625,852 233,564 859,416 149 5,512 2,630 94,434 23,969 7,400 3,211 2,284 1,697 30,294 2,679 3,207 + 7.2 + 1.6 + 5.7 — 3.4 —4 4 .2 + 6.8 + 7.2 — 1.9 — 0.5 + 2.4 — 4 .7 + 7.5 — 10.5 + 2 0 .8 + 16.9 650,76s1 605,869’ 229,707* 835,5761 959 22,738 16,523 566,851 138,412 41,180 19,728 12,794 10,305 158,913 18,981 22,286 360,000 47,500 16,367* 1,616 1,875- 364,731 36,846 14,439" 1,587 1,821“ * 4,1753,437 5,975 — 1.3 + 2 8 .9 + 1 3 .4 * + 1.8 + 3 .0 2 — 13.4-’ — 8 .7 2 + 4 0 .1 + 8.3 A 3,8124,814 6,472 237,81s1 888,5861 1,145 24,144 18,034 578,314 136,890 40,242 18.786 12,333 11,112 133,174 19,847 24,260 2,171,771 270,481 95,0753 6,443 9,0373 + 1,934,672 230,786 83,317=* 6,619 8,9583 4 19,225'* 9,974 9,810 19.5993 8,222 12,250 5 .6 + 7 .4 + 3.5 + 6.3 + 1 9 .4 + 6.2 + 9 .1 + 2.0 — 1.1 — 2.3 — 4 .8 —* 3 .6 + 7 .8 — 16.2 + 4 .6 + 8 .4 + 12.3 + 17.2 + 1 4 .1 3 — 2.7 + 0.9 3 -h 0 .9 3 — 1.93 + 2 1 .3 — 1 9 .9 Index Numbers of Trade in the Fourth Federal Reserve District (Average Monthly Sales for the Five-Year Period 1919-1923, i n c l u s i v e - — Department Stores (54)*. . Wholesale Drugs (1 5 )* ____ Wholesale Dry Goods (17)* Wholesale Groceries (49)*.. Wholesale Hardware (15)*, Wholesale Shoes (6 )* .......... Wholesale— All (1 02 )*........ Chain Drugs (3 )* ................. ♦Number of firms. June 1922 96 97 77 89 100 81 89 98 June 1923 119 105 91 97 119 90 99 105 June 1924 108 99 69 83 98 81 83 99 June 1925 109 106 73 86 112 72 87 101 100) June 1926 107 114 71 85 108 77 88 105 Debits to Individual Accounts 3.2 4 .4 — 0.5 2.5 4.5 — 0.4 Jan.-June 1926 % change A kron.............................. Butler, Pa...................... Canton............................ C incinnati...................... Cleveland....................... Columbus...................... Connellsville, Pa.......... D a y ton ........................... Erie, Pa.......................... Greensburg, Pa............. Homestead, Pa............. Lexington, K y .............. L im a............................... Lorain............................. Oil City, Pa................... Pittsburgh, Pa.............. Springfield..................... Steubenville................... T o le d o............................ W arren........................... Wheeling, W. Va.......... Youngstow n.................. Zanesville....................... T otals..................... (In Thousands of Dollars) 4 weeks % change 1926 to ending from date July 14, 1925 (Dec. 311926 July 14) 87,128 + 1.6 612,555 10,725 + 6.3 72,474 45,367 + 2 .7 320,317 332,145 + 2.7 2,442,535 710,309 + 5.8 4,811,373 155,236 + 9 .5 1,035,365 5,100 + 2 3 .5 33,836 88,476 + 4 .4 566,826 31,906 — 2.1 225,886 18,144 — 1.0 134,876 4,679 — 0. 6 29,673 22,276 — 6.4 163,551 15,966 — 3.9 105,513 6,230 — 4 .9 39,343 12,767 — 8.5 87,152 903,898 + 1.0 6,158,139 22,096 + 8.0 157,331 10,366 — 8.7 72,191 207,924 + 3.7 1,413,971 12,724 + 5.3 85,456 42,182 + 0.1 311,471 65,646 — 0.5 444,918 11,918 + 2.2 83,635 1925 to % date (Jan. 1July 15) 540,925 71,019 315,482 2,271,943 4,436,550 914,764 30,131 499,779 217,217 130,277 29,882 163,572 120,789 44,627 93,716 5,992,734 139,770 75,542 1,322,697 86,784 292,961 438,100 79,836 2,823,208 18,309,101 + 3,0 19,408,387 change fr o m 1925 + 1 3 .2 + 2.0 + 1.5 + 7.5 + 8 .4 + 1 3 .2 + 1 2 .3 + 1 3 .4 + 4 .0 + 3.5 — 0 .7 — 0,01 — 12 .6 —11.8 — 7.0 + 2.8 +12.6 — 4 .4 + 6 .9 — 1.5 + 6.2 + 1.6 + 4 .8 + $ .0 THE MONTHLY BUSINESS REVIEW 7 Summary of National Business Conditions (By the Federal Reserve Board) Industrial activity was at the same level in June as in May, and was slightly above the level of a year ago. The average of commodity prices advanced further between May and June. Production Index of 22 basic commodities, adjusted for variations (1919— 100). Latest figure, June, 117. k im d a I KKCCNT P£R C E N T -------,aoo 200r-------------- Trade WHOLESALE PRICES T95TIndex o f U. S. Bureau of Labor Statistics (1913— 100* base adopted by Bureau). Latest figure— Jane, 152.3. ----------------- i r a w (VC BANK CR E N T "V \J cow** for Total R estfvf 3 * Ch S' i fy.^3 -------/ / m2 Monthly averages of daily figures for 12 Fed eral Reserve Banks. Latest figures ar« aver a g e s of first 22 days in July. 0 I U J O N 5 O P D CLLAAS b il l io n s of DOLLARS Monthly average* of weekly figures for banks hi 101 leading cities. Latest figures are tvtrafM for first weekly report dates in July. Total volume of wholesale and retail trade in June was larger than for the same month in 1925. Department store sales declined seasonally in June, and wholesale trade in all leading lines, except groceries, also decreased during the month. Sales of mail order houses increased more than usual in June, and were 5 per cent larger than in June, 1925. Stocks o f merchandise carried by wholesale firms at the end o f June were smaller than a year earlier. Department stores continued to reduce their stocks, and their inven tories, which had been considerably above last year’s level earlier in the year were at the end of June only about 1 per cent larger than a year ago. Freight car loadings showed seasonal increases during June and continued through the first half o f July at higher levels than in previous years. Loadings o f grains in the southwestern states have been particularly large. Prices U-S Secu - > i A The Federal Reserve Board’s index of production in basic industries remained unchanged in June. Production o f iron and steel and activity of woolen machinery continued to decline, and there were also reductions in the output of copper, zinc, and petroleum, while cotton consumption, the manu facture of food products, and the output o f coal and cement increased. Pro duction o f automobiles was smaller in June than in May and fo r the first time this year was less than in the corresponding month of 1925. Declines took place in June in employment and pay rolls of all textile industries, except woolen and worsted goods and men's clothing, and some o f these industries were less active than at any time since 1924. Building contracts awarded during June were slightly less than in May and fo r the first time since early in 1925 were smaller than in the corresponding month of the preceding year. Crop reports issued by the Department of Agriculture indicated a slight improvement during June. The composite condition o f all crops on July 1 was reported at 6.4 per cent below the average July condition during the last ten years. The production of winter wheat was estimated at 568,000,000 or 172,000,000 more than in 1925 and that of spring wheat at 200,000,000 or 71,000,000 less than last year. A production o f 2,661,000,000 bushels of corn or 8.3 per cent less than last year, is indicated in^ the same report. Cotton production, on the basis o f July 16 condition, was estimated at $15,368,000 bales or 718,000 bales less than the production of last year. The general level o f wholesale prices, according to the index o f the Bureau of Labor statistics, increased from May to June by less than half of one per cent. Prices of live stock and meats advanced, and there were small increases fo r silk, petroleum products, non-ferrous metals, and chemicals and drugs. Price decreases occurred in grains, cotton, textile, building materials, and house furnishings. In the first two weeks of July prices of grains, flour, cotton, wTool, and hides, increased, while those o f cattle, hogs, silk, and rubber declined. Bank Credit Loans and investments o f member banks in leading cities at the end of Juno were in larger volume than any previous time, and after declining during the first half o f July were still $900,000,000 above the level o f a year ago. Of this increase about $385,000,000 was in loans on securities, $340,000,000 in commercial loans and $175,000,000 in investments. Since the beginning o f 1926 an increase in commercial loans together with the growth nf investments has more than offset the reduction in loans on securities. The demand fo r credit at the end o f the fiscal year and the increased currency requirements over the holiday were reflected in a growth o f member bank borrowings at the reserve banks and on July 7 total discounts were near the highest point of the year. With the return flow o f currency fr©m circu lation after the holiday, discounts declined, and on July 21 were in about the same volume as in the last half of June. The reserve banks’ holdings^ of acceptances and o f United States securities changed little during the period, and the total volume o f reserve bank credit outstanding in the third week of July was close to the June level. Money market conditions were firmer in July as indicated chiefly by increases in rates on call and time security loans. Rates on a c c e p ta n c e s and on commercial paper were also slightly higher. 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. PCRC'NT COMMERCIAL ......... ... FAILURES TRADE PF»rxhrr WHOLESALE _____________ PMCENT 200 200 1\ (1 J V k/w V 1 ISO i1 A 1921 1922 1923 1924 ----- o ----- o ----- ' \ w O 0 PEAC 1925 I9£6 100 A A ~ s/N 50 o ------------ o 0 1921 1922 1923 1924 m ceMf XP0RTS 0F m e rch a n d ise -------CSfiCtM T 200 -------------~ 2 0 0 150 ------------- -------- ■----- ISO t o o l ----------- A Hr s vsf W 5 0 ------------- 0 ------------(921 1 2. 3. LATEST FIGURES Momher Bank Credit: Loans, June— 122. Investments, June— 140. 7. Building Permits, Jane—203. Member Bank Deposits: Demand, June— 123. Time, June— 1»0. 8. Car Loadings, June--122. Check Paym ents, except New York, Jane-128. »• of M m t o b j . , i- & . 6 1922 erTc^ d .Fi n ^ n « “ e_l32- Wholesale Trade. M « 7 -9 2 . i?: 12- Automobile Production. Jnn*-18i. 192.J ~ --------■— s o 1924 192 5 1929
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