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7he Monthly BUSINESS REVIEW Covering business and industrial conditions in the Rurth Federal Reserve District FEDERAL RESERVE BANK of CLEVELAND (COMPILED NOVEMBER 20, 1920) VOL. 2 H CLEVELAND. OHIO, DECEMBER I. 1920 No. proper basis for determining retail values. Now OW to secure a return of the public to the that prices are apparently on the decline, his trade market and stimulate buying is the foremost is insisting that the same method of basing prices problem confronting business today. The should apply. Retailers, on the other hand, are physical difficulties that have tended to interfere asserting that to reduce prices further with production have largely disappeared, and vehemently in than they have already done would involve severe their stead has come a psychological difficulty that financial losses. In the meantime, the public seems to has rapidly lessened buying in nearly all lines. It is “ stand pat.” This results in the creation of a new one of the stages of readjustment through which it “ vicious circle.” The retailer, with a limited de is necessary to pass, and one which would appear, mand for goods, places no orders with the whole on reflection, to offer considerable hope for a distinct salers; they, in turn, are not doing business with revival in the future. manufacturers. In consequence, mills and factories Business is again suffering from a strike, but this are closed, employees are laid off, their earning time from a new and unexpected quarter. It is an power and their purchasing power decreased or unorganized, unled strike, but has already proved entirely destroyed. This strikes directly at the re more effective in dislocating the machinery of busi ness than any strike conducted by organized labor tailer, and completes the circle. Another almost equally important factor in this since the inception of the labor union. It is not a period is the readjustment of labor. There are strike for shorter hours, nor for higher wages, but several signs that would seem to indicate that labor takes on the nature of a strike for recognition— must eventually bear its share of the burden of read recognition that the public holds the purchasing justment. High wages came, together with many power of the nation and that it will not be drawn other things, as a result of unusual conditions, and into the market except for absolute necessities until it is convinced that prices are as low as may reason it is folly to expect them to long outlive the causes that brought them into being. ably be expected and bear some evidence of stability. Labor is beginning to awaken to the fact that while How best to secure a resumption of buying is a problem that each business man must solve for him the scale of pay may remain the same, fewer hours of work bring smaller returns in the pay envelope. self. Different conditions apply in different indus Some may delude themselves for a time with the tries, and the same remedies would not necessarily idea that they are still drawing, say, $1.00 an hour, suffice for all. But regardless of how the desired but the truth will eventually dawn on them that four result is brought about, it seems to be increasingly evident that the entire burden of readjustment shall days work brings but about thirty dollars on Satur day, while six days brought about fifty. not be passed to the ultimate consumer. He has Figures recently published on commercial failures notified business in an emphatic way that he declines would seem to point to lack of foresight on the part any longer to be the “ goat.” of many to prepare for what it was inevitable should Substantial progress has been made in some direc at some time happen. During the month of October, tions toward a restoration of pre-war conditions. How failures in the United States number 923, involving soon all the necessary adjustments will have been liabilities of nearly 39 millions of dollars. September, made is a matter of conjecture, and one man’s guess 1920, showed defaults numbering 677, with liabilities is as good as another’s. Manufacturers have vigor of over 29 millions, while in October of 1919 the ously tackled the proposition of disposing of large record is 463 insolvencies and liabilities of less than and expensive inventories with a considerable degree of success. Wholesalers and jobbers have, in many seven millions. instances, made substantial cuts in prices in an effort At the risk of being deemed over-optimistic we to stimulate buying, even though such reductions again assert our belief that the period we are now carried with them losses in greater or less degree. passing through is a good thing for business. In Justly or not, there are many who insist that the times like these people are apt to make mountains retailer has nullified any good accomplished by the out of mole-hills, but when we regain our lost sense wholesalers and manufacturers by refusing to reduce of proportion and some necessary adjustments have his prices to a cost replacement basis. During the been made, we should enter upon a period of genuine past few years, with prices advancing, the retailer prosperity, based on a sound foundation, and lasting has taught his trade that replacement cost was the in character. THE MONTHLY B U S I N E S S R E V I E W 2 Not Much Change in Banking Situation; Bankers9 Acceptances in Demand as Investments Banking conditions in the Fourth District have undergone no important change during the past month. At some points a slight easing off in the demand for credit is noted, but not sufficient to justify a decrease in money rates. Liquidation of bank loans continues, and at some points banks report an active demand for high-grade securities. Throughout the farming sections, except in the tobacco territory, where the markets have not yet opened, bank loans have been reduced. A con siderable amount of farm land purchasing is being done in some sections, resulting in heavy demands upon city correspondents. The good market for bankers’ acceptances has continued throughout the month, with the country banks still as the main support, and the demand from the state banks and trust companies slightly less than last month. The demand seems to remain sec tional, as it has most of the year, changing from locality to locality, as the industries of such sections accumulate funds. As last month, the main demand came from the banks in mining communities, with fewer calls from the banks in strictly agricultural and industrial com munities. The commercial banks in the larger finan cial centers have practically purchased no bills for their own account. The demand from them has come from orders received by the banks for their clientele. The settling down of general business, or cancellation of orders and the general inactivity of business has greatly curtailed the supply of bills, and given the market little choice. Few new drawers came into the market for t.hiq form of credit. The amount of credit obtained by those whose names appeared frequently has also been curtailed. High money rates and the slump in market prices of stocks and the uncertainty of the outcome of present conditions during the new year, has induced buyers to seek only those investments with the greatest amount of security and stability, which has resulted in the demand for bankers’ ac ceptances, high-class municipal bonds, and a few of the higher class preferred stocks. Steel and Iron Production on Decline; Price Reductions Made in Some Lines; New Business Continues To Fall Off Iron and steel conditions during the past month have been marked by a gradual tapering off of both operations and prices. This situation has accom panied a shrinkage of new business and a mQre slug gish ordering out of tonnage by consumers against commitments previously on mill and furnace books. Buyers show a lack of confidence in the stability of present prices and are disposed to obligate them selves at this time only on a hand-to-mouth basis. This attitude obtains in the face of the fact that fundamental conditions in iron and steel are essen tially sound and as far as future prospects may be gauged at this time, a favorable impression exists as to the amount of business in suspense to be re leased when conditions become more settled. When that will be, or when prices will reach equilibrium, there is nothing to show at the present time. The trend of the market is toward a steady closing of the gap between the level of prices on steel products which has been quoted by the independent mills and the minimum schedule consistently pursued by the Steel corporation. There is still a considerable spread between these two sets of prices in a number of lines, but this is much less at the present time than it was only a few weeks ago. In not a few cases independent producers are willing to meet the corporation price on attractive tonnage. The extent to which the market has departed from the recent condition, where premiums were com manded by prompt shipments, is illustrated by a price comparison of the present time with a month ago. In that period average quotations on various finished and semi-finished materials with some ex ceptions show a decline of approximately $5.00 per ton in the heavier lines, with a greater descent in some other products, such as sheets. The exceptions to this rule have been in such lines as tubular goods, where an excessive demand still prevails, and in wire products—which though less active—are holding firm. In pig iron the drop during the month has ranged from $5.00 to $10.00 a ton; basic or steelmaking iron in the Pittsburgh, Mahoning and valley districts has displayed the sharpest fall. This is a reflection of the change in steel works operations. Closely related to the decline in pig iron has been that in coke, which has been rather spectacular. Spot Connellsville furnace coke which a month ago was selling at $17.00 now is listed at $8.50. There had been a corresponding change in foundry coke. Mill and furnace operations have been going down gradually, and now range with many representative companies at from 50 to 75 per cent. Some plants of special character, such as those concerned wholly or largely with the production of materials required by the automobile industry, are on an even lower basis where they are running at all. Some of these plants in fact are shut down entirely, though this is re garded as only temporary. Production statistics in October failed to reflect clearly the degree of the recent curtailment, since most of the cessation came late in the month. How ever, steel production in October was on a lower daily basis than in September, and was at the rate of approximately 42,000,000 tons of steel ingots as com pared with 43,400,000 tons indicated by the figures of the preceding month. Pig iron output in October as 'compiled *>y The Iron Trade Review totaled 3,293,543 tons compared with 3,124,308 tons in Sep tember, and on a daily basis of 106,243 tons against THE MONTHLY B U S I N E S S R E V I E W 104,143 tons respectively. However, the significant development of the month -was the large number of furnaces that had been blown out toward the close of that period. At the end of October, 289 furnaces were active compared with 317 on the corresponding date in September, or a net loss of 28. This idle list has been considerably enlarged by the addition of a number of stacks since November 1. Iron ore shipments from the Lake Superior regions this year up to November 1 amounted to 53,122,342 tons compared with 43,978,414 tons in 1919, and 3 56,870,871 tons in 1918. Where there was some talk of a shortage of iron ore some weeks ago, this has now entirely disappeared with the droop of trade conditions. There has been a big let-up in coal shipments the past few weeks, but the movement for the season will be as heavy as it was in 1919. Boats have been more plentiful than cargoes the past few weeks. Up to November 15 the fleet loaded 20,525,578 tons of cargo coal, compared with 21,222,535 tons for the same time last season and 27,034,776 tons in 1918. Demand for Ore Slackening; Cold Weather Delays Handling; Lake Movement of Coal Will Equal That of 1919 Season The lake shipping season did not close with the rush expected, as there was quite a let-up in the demand for ore during the past thirty days and some ore that was sold for 1920 delivery will be carried over until next season. The movement will be the fourth largest on record, but it will be smaller than figured on at the opening, when the sales indicated a movement of about 61,000,000 tons. Shipments for October were 8,848,986 tons, making 53,122,342 tons the fleet loaded up to November first. That is an increase of 9,143,928 over the same time last season. The shippers figure that 57,000,000 tons will take care of the requirements of the trade, and that mark will be reached, although conditions for handling ore were very unfavorable the past few weeks. Much of the ore that was shipped from ports at the head of the lakes had to be steamed on account of the cold weather, and that is a slow operation. Shipments to the interior furnaces were heavy during the past month, but there will be more ore on dock at Lake Erie ports when the last cargoes are unloaded than there was a year ago. On November 1 the docks at this end of the route were holding 10,212,975 tons and on the same date in 1919 stocks were 10,004,757 tons. The grain trade has taken considerable ton nage the past month, but the ore shippers got about ail the capacity they could handle by reason of the cut in shipping orders and the fact the ore was frozen and handled very slowly. Some boats were held a week at the loading ports. Manufacturing Generally Dull; Unemployment Increasing; Foreign Trade Holds Up Well in Some Lines Business in practically all lines throughout the Fourth Federal Reserve District continues to recede in volume. Buying has been greatly restricted, and the result has been felt all around the circle from consumer to manufacturer. Cancellations are still being received, although the tendency to cancel orders is not as marked as during the past few months. Labor continues to increase in effectiveness, and unemployment is increasing. Collections continue good in most lines. Inventories are large in many instances, but the volume of loans required to carry them has been substantially reduced. Passenger automobile makers are inclined to optimism for the future. A prominent manufacturer has stated to us that the apparent slowing-up of the industry is seasonal, and that the volume of fall busi ness compares favorably with that of former years except for 1919, when, apparently, the demand for cars was in excess of the ability of makers to produce them. One of the large motor truck makers says that ‘‘the motor truck business with us, and from all accounts we have from other manufacturers, is only about 20 per cent of normal, and that the slacking off of busi ness has so increased the overhead that it will con sume some slight reductions made in materials.” The demand for automobile bodies has slumped in proportion to the lessened demand for cars, and prices are being slightly revised. Conditions in the hardware manufacturing line are quite dull. Buying has been greatly reduced, and, ap parently, this is not “ spotty,” but seems to be almost universal. Prices are firm, and seem quite likely to be maintained unless the cost of labor is reduced. Implement makers are engaged at this season principally upon export shipments to South America, which, in the experience of one large concern, are practically double those of the corresponding period last year. Contracts for domestic shipments are about the same as last year. Further recession is noted in the manufacture of tools, and orders are at a low level. Some reductions of forces have occurred, and the bulk of production has gone into stock. Manufacturers are inclined to the view that price changes will be slowly made, and not much improvement is looked for before the first of next year. Orders for tin cans are being received in fair volume, which, according to manufacturers, is indi cative that stocks are low and that users are order ing only in sufficient quantities to insure the carry ing of reasonable stocks. Practically no price cutting has taken place in this line, as the price of tin plate is fixed for a given term. Moulding machine business has fallen off greatly during the past six months, in sympathy with the let-up in the automobile business. Reports indicate that a revival of business is looked for in the laundry machinery line after the first of THE MONTHLY B U S I N E S S RE VI EW 4 the year. New business at this time is reported as “ quite light.” Manufacturers of baking powder and grocers sundries incline to a belief that conditions with them are on the mend. Collections are reported as some what slower. Practically no price cutting has as yet been accomplished, although lower prices are antici pated in the trade. Box-board makers report business practically the same as thirty days ago. Collections are said to be fair, but not as good as they have been. One manu facturer reports that more people are availing them selves of the privilege of sending notes in payment of, aud asking more time on, invoices for goods. Orders are “ extremely scarce,” but a revival is anticipated within the next few months. Final Returns Assure Bumper Crops; Survey Shows Total Farm Income Will Be Up to Normal Final returns on agricultural crops throughout the Fourth District are very encouraging. The produc tion of nearly all farm produce is much above the 10-year average, and even at the lower price range assures a large cash return to farmers. A late fall has resulted in the production of an immense corn crop, a much larger percentage than usual being of marketable quality. The potato crop is large, although late blight has done considerable toward keeping down the yield. In the Burley tobacco field, a fairly favorable growing season has resulted in the growth of an extremely bulky crop, but the loss from evaporation has been greater than expected and the poundage will show some loss from previous estimates. The opening of the tobacco market, which usually occurs early in December, will probably be postponed until after the first of next year. The tobacco crop in the Ohio cigar-leaf section is slightly less than that of last year. Rough calculations made by the Ohio Bureau of Agricultural Statistics indicate that the total value of Ohio farm crops, based on November 1 prices, is from $100,000,000 to $110,000,000 less than last year. This loss to the farmer is said to be more seeming than real, however, because of the fact that over onehalf of the farm income in that State is derived from live-stock and live-stock products, the prices of which are about on a par with the prices at the same time last year. The direct income from wheat, feedable crops, tobacco and wool will be very much less than last year, but the income from dairy products should be considerably more than last year in view of the fact that the cost of concentrated foods used largely by dairymen is very much less. The same is true of live stock. The income from fruits and vege tables this year will be considerably larger than a year ago, due to the large crop. This analysis shows the source of Ohio farm in come to be about as follows: Sales of live sto ck .................................. 38% Sales of dairy products...................... 13% Sales of poultry and poultry products 9% Sales from wheat .................................. 15% Feedable crops (Corn, oats, and hay) 16% Tobacco...................... 4% w o o l ............................ 2 % Fruit and vegetables............................ 2% Maple sirup ............................................ \c i Conditions Unimproved in Textile and Garment Trade There is probably no other industry that is harder hit than the textile and garment trade—particularly in relation to the woolen products. The industry is confronted by an anomalous situation, when manu facturers of clothing are offering stocks at prices lower than those at which it will be possible to re place them with newly-produced merchandise. The opening of the Spring line, which normally occurs in early October, is long past due, with many large manufacturers in the industry postponing the date indefinitely—some even considering the advisability of offering no goods for Spring. In some markets employers advise that labor costs have risen to a point of prohibition, and that with the expectancy of lower prices the failure of labor to meet the em ployer part way wiil make it impossible for this maiket to recover within the period necessary to 1 escae any part ot the Spring season from the nood.” Transportation Conditions Continue To Improve; Shortage of Open-Top Cars Noted; Labor Forces Normal During the past month general conditions sur rounding transportation have materially improved. Car supply is more nearly adequate to demands than has been the case for some months, although some complaints are heard from Pittsburgh of a shortage of equipment at that point. There is also said to be a shortage of open-top cars. An improvement is noted in switching service and the number oi men employed is practically normal. THE MONTHLY B U S I N E S S R E V I E W 6 Coal Situation Improving; Operators Claim Railroad Facilities Still Inadequate The coal situation seems to be moving in the direc tion of normality, and from present indications will not be so acute during this winter. The feeling is somewhat general, however, that the railroads will be unable, by reason of insufficient facilities, to satis factorily serve the public for some time to come. It is now estimated that production of bituminous coal for the year 1920 will reach a total of 560,000,000 tons, of which 300,000,000 tons will be produced dur ing the six months’ period ending December 31. Coke prices have broken violently during the past 30 days, and production has fallen off somewhat. Stagnation in Building Line; Work is Delayed in Hope of Lower Prices By comparison with a few months ago the build ing industry may be described as stagnant. There is a great deal of work waiting to be done, and architects’ offices are said to be full of projects. The need for structures of many kinds, particularly dwellings, is pressing. Yet building permits continue to decline in volume, and demand for materials and labor for building purposes is far below the supply. The United States Senate Committee on Recon struction and Production, headed by Senator Calder, is touring the Country investigating building condi- tions, particularly as they affect homes. One of the chief obstacles developed by the Committee is the scarcity of money in the form of credits available for building purposes. Investors hesitate to put money into buildings at present prices when they may earn greater returns elsewhere. Aside from the credit complication, those inter ested in building are delaying in the hope that prices will decline. Meanwhile rents are high and many people through the District have difficulty in finding a place to live regardless of high rental. A very prominent characteristic of the American of today is to feel that every discovery or invention really worth while is a product of the twentieth century. He looks at our modern fireproof sky scrapers, constructed largely of cement and steel, pats himself on the back and says they are just another example of present day ingenuity. True, we are making wonderful advancement, but we should remember that our ‘‘wonders of the twentieth century” passed through the infant stage, and are the results for the most part of hundreds of years of labor and experiment. The use of material similar to cement, for the pur pose of binding fragments of stone together, dates back beyond ancient written history. It is known that the Romans prepared a mortar which would harden under water and used it in construction work. Little advancement was made until 1756 when John Smeaton of England, while looking for material with which to build the Eddystone Light house, discovered that a certain limestone, contain ing clay, possessed, when burned and ground, the property of hardening under water. The first real progress was made in 1859 when it was decided to use Portland cement in the construction of the London Drainage Canal. Joseph Aspdin, a bricklayer of Leeds, England, patented the first artificial cement, and he gave it the name of “ Portland” because of its resemblance in color to a building stone obtained from the Isle of Portland, off the coast of England, and it has been known by that name ever since. Portland cement is manufactured from limestone and shale, or limestone and blast furnace slag, and also contains a certain percent of gypsuin, which acts as a retarder and prevents the mixture from setting. Limestone rock is found in layers of varying thick ness, and the usual method of mining this is to re move all the earth and rock above it. In some of the quarries located in the Fourth Federal Reserve District where a very good grade of limestone, suit able for the manufacture of Portland cement, is found, it is necessary to remove as much as 70 feet of earth and rock. This process of uncovering the limestone is called stripping and is found to be more satisfactory than mining the rock. It is quite expensive, as all the earth and rocks which have to be removed is waste material, with the exception of a thin layer of shale which lies just above the limestone. This shale contains silica and alumina which are essential in the manufacture of Portland cement. Stripping for the most part is done by machinery. Holes are drilled to the level of the limestone and heavy charges of explosives are placed in them. This work is in charge of an expert who knows, from the texture of the rock, just how much explosive is required to produce the best results. When the charge is placed in the hole, all work in that vicinity is stopped and as the men scatter in every direction, great masses of earth and rock shoot in the air and come tumbling down to the bottom of the quarry. It is then loaded in cars by steam shovels and hauled to great dump heaps. The limestone is drilled and blasted, but less ex plosives are required, for there are cracks running through it which cause it to break more readily. After it has been broken into pieces convenient for handling it is loaded on small cars by hand and then hauled to the factory. There each carload is weighed and after it has been hauled up a steep incline the rock is dumped into chutes which carry it to the first crushing machines. These machines, usually of the gyratory type, are very powerful and slowly crush the rock to small pieces. When it is fine enough to pass through a 1/a inch screen it is mixed with shale which has also passed through a crushing pro cess. This material is then dried in rotary kilns which are heated by coal, and as the limestone and shale pass slowly through these driers they are thoroughly mixed. This drying process is for the Special Survey of the Cement Industry 6 THE MO N T H L Y B U S I N E S S EE VI E W purpose of facilitating the final pulverizing, which would be impossible were there any moisture in the rock and shale. When this material is thoroughly dried, it is run through another grinding process, various types of mills being used, the most popular being Griffin, Fuller, and Raymond. When the limestone and shale have been pulverized so fine that 96 per cent of this mixture will pass through a mesh sieve having 10,000 openings to the square inch it is ready to be burned. It is then conveyed to the burning kilns, which are steel cylinders eight feet in diameter, 125 feet long and lined with fire brick. There the mix ture is burned with powdered coal which is blown into the cylinder by means of compressed air. This dry powdered coal aided by the draft of air burns at an almost white heat, 2600 degrees Fahrenheit, and this causes the limestone to combine chemically with the shale, forming what is known as clinker. After the proper amount of burning the clinker is dropped into a pit and then carried by elevators to a cooling process. The clinker is air cooled, the air being driven against it by revolving fans. In some factories it is spread over the surface of a large pile of old clinker and allowed to cool grad ually. After cooling, the clinker is mixed with gypsum or plaster paris, which regulate the setting time of the cement. Usually 3 or 4 per cent is added. Without the aid of this, the cement would set in a very few minutes and it would be impossible to even remove it from the mixer. The clinker, to which gypsum has been added, is first run through pot crushers which resemble huge coffee mills. After passing through another mill, where it is further reduced, the mixture is conveyed to large revolving cylinders which are filled with small steel balls. As the cylinder revolves, the steel balls roll about and gradually grind the little parti cles to a very fine powder. When the cement has reached a stage where 75 per cent will pass through a mesh sieve with 40,000 openings to the square inch, the process is complete, that being the standard specification for fineness in Portland cement. Some cement factories in this final process use flint pebbles in place of the steel balls. These pebbles have to be imported from Norway and this is quite an added expense. The newer process of using the steel balls has proven very satisfactory. The cement is now ready to be put into sacks. A novel method of filling is used. Instead of pouring the cement into the top of the sack which is a very dusty and disagreeable job, the sacks are first tied by machines and the cement is forced into them through a small valve in the bottom of the sack which automatically closes when filled. This method prevents the loss of cement in the form of dust, and saves the time required to tie the sacks by hand. The cement sacks are manufactured from cotton which is very closely woven on special machines. After the cement has been shipped the sacks are returned to the factory and the purchaser receives credit for them. These sacks usually last from six to eight trips, depending on the distance of the ship ment and the care they receive in shipping and handling. Some of our large factories are shipping cement in bulk and this has proven very satisfactory. When cement is shipped in sacks, the cars must be in first class condition, for a leaky roof will cause many sacks to set, but when in bulk the water will do very little damage. This method eliminates the cost of sacks, the time and expense of packing, and also facilitates the handling at the receiving point, for the unloading can be done by machinery, while sacks must be moved by hand. This method is used mostly in shipping to large contractors. Cement is manufactured on a very conservative basis. Competent engineers are employed to study and work out plans to eliminate all unnecessary losses. In one of the large plants in this district changes are being made and machinery installed in order to save the waste gasses and heat which escape through the stacks and are a total loss. These will be utilized to furnish the motive power for the fac tory. It has been estimated that this will almost cut the fuel costs in two. The plan has already been tried out iu a few plants and proven satisfactory. Dust collectors are being improved and installed wherever it is practical. This saves loss of cement, makes the work more pleasant for the employees, and cuts the cost of machinery repair, as the dust is continually working in the gears and bearings and causing friction. The cement industry has made almost unbelievable advancement during the last few years. It is one of the most important factors in all modern construction work. More cement is used for the building of roads than for any other purpose, and cement roads give long and satisfactory service. Each mile requires the use of about 4,000 barrels of cement, and on a long motor trip when thousands of miles can be covered without once using a dirt road, one can get some idea of the vast amount of cement used for this purpose. Road building through many of the states has been handicapped by the war, but indications point to a return to this needed improvement, and elaborate programs have been made for the cominir year. 8 Cement is coming into general use for the building of oil tanks. A concrete tank holding 1,000,000 gal lons of fuel oil has been constructed at Wooster Mass., and has proven satisfactory. Not so many years ago it was believed that concrete tanks could not be built to hold oil. This is only one illustration as to how the use of cement is branching out alone different lines. Cement is one of the greatest factors in construc tion work not only in our own country, but in many of the European nations. The supply is plentiful and this industry will continue to grow in the future. Appended hereto is a list of the cement manufac turers in the Fourth Federal Reserve District Universal Portland Cement Co.,........Pittsburgh Pa. Crescent Portland Cement C o .,.........."Wampum Pa. Lehigh Portland Cement Co. ... New Castle Pa Alpha Portland Cement Co.,'.............. Ironton Ohio! Wellston Furnace Co.......................... Wellston, Ohio. Diamond Portland Cement Co., Middle Branch, Ohio Sandusky Portland Cement Co..........Sandusky, Ohio Bessemer Limestone & Cement Co.Youngstown, Ohio. Castaha Portland Cement Co................Castalia, Ohio. 7 THE MONT H L Y B U S I N E S S R E V I E W Department Store Sales Percentage increase of net sales during October, 1920, over net sales during same month last year............................................................................................... Percentage increase of net sales from July 1, 1920, to October 31, 1920, over net sales during same period last year........................................................................... Percentage increase of stocks at close of October, 1920, over stocks at close of same month last year............................................................................................... Percentage increase of stocks at close of October, 1920, over stocks at close of September, 1920........................ Percentage of average stocks at close of each month this season (commencing with July 1, 1920) to average monthly net sales during the same period.................................................................................. Percentage of outstanding orders (cost) at close of October, 1920, to total purchase (cost) during the calendar year 1919................................................................ Pgh. Cleve. Tol. Other Cities District 28.6 9.7 1.9 27.9 20.8 25.8 23.5 13.9 23.6 23.9 32.9 42.7 23.6 34.1 34.9 4.3 8.3 —3.1 3.7 4.7 413.3 481.8 572.5 590.8 46G.7 8.8 7.5 4.5 11.9 8.3 Wholesale Trade Dry Goods. Groceries... Hardware. . Drugs.......... Increase (or de Increase (or de Increase (or de Increase (or de Increase (or de Increase (or de crease) in Sales crease) in Sales crease) in Sales crease) in Sales crease) in Sales crease) in Sales during May, 1920, during June, 1920, during July, 1920, during Aug., 1920, during Sept., 1920, during Oct., 1920, over same month over same month over same month over same month over same month over same month last year. last year. last year. last year. last year. last year. Percent Percent Percent Percent Percent Percent 11 .5 47.8 37.2 53.4 —24.0 32.2 31.2 30.2 16.0 20.6 24.7 29.6 10.0 1.0 21.5 11.1 23.8 12.4 31.1 —27.5 — 10.8 2.0 Building Operations for Month of October Akron Cincinnati Cleveland Columbus Dayton Erie Lexington Pittsburgh Springfield Toledo Wheeling Youngstown Total Permits Issued New Construction Alterations 1919 1919 1920 1920 221 76 169 196 128 57 565 218 324 263 223 111 50 482 864 98 39 35 69 82 19 309 363 42 10 17 143 267 153 32 18 36 19 117 169 479 2,596 1,919 10 Valuations New Construction Alterations 1920 1919 1919 1920 118 405,597 502 884,810 834 1,435,900 102 527,275 44 226,977 38 168,085 30 46,775 89 1,417,444 15 9,090 123 359,835 23 45,492 31 501,050 1,949 6,028,330 Inc. or Dec. of Percent < Total Valuation Inc. or D 3,184,277 42,575 49,640 2,785,745 —86.1 657,610 325,740 289,060 263,880 27.8 5,223,400 574,650 457,785 3,670,635 —64.6 619,090 85,635 127,155 133,335 —17.8 934,637 58,194 97,110 746,576 —72.3 237,325 23,590 47,675 93,325 —32.7 85,000 18,000 46,225 —44.8 10,000 1,399,089 365,875 176,597 207,633 13.1 7,155 59,400 181,130 —91.8 138,675 856,062 167,149 92,956 422,034 —44 .4 59,511 3,745 14,473 —22.7 4,199 2.1 475,175 22,050 36,950 10,975 13,869,851 1,686,358 1,456,527 7,611,690 —49 .6 THE MONTHLY B U S I N E S S R E V I E W 8 Lake Coal Statement of Bituminous Coal Loaded into Vessels (as dumped by docks). In net tons for the Month of October, 1920, as compared with the same period for the Seasons of 1919-1918. Ports Toledo Sandusky Huron Lorain Cleveland Fairport Ashtabula Conneaut Erie Railroads Hocking Valley. . . . Toledo & Ohio Central................ Baltimore & Ohio... Pennsylvania.......... Wheeling & Lake Erie...................... Baltimore & Ohio... Pennsylvania.......... Erie.......................... Baltimore & Ohio.. New York Central. Pennsylvania.......... Bessemer & Lake Erie...................... Pennsylvania—W . Pennsylvania—E .. Total. . . . Toledo Sandusky Huron Lorain Cleveland Fairport Ashtabula Erie Conneaut Hocking Valley Toledo & Ohio Central.............. Baltimore & Ohio.. Pennsylvania........ Wheeling & Lake Erie...................... Baltimore & Ohio.. Pennsylvania.......... Erie.................. Baltimore & Ohio.. New York Central. Pennsylvania.......... Pennsylvania—W . Pennsylvania—E .. Bessemer & Lake Erie.................... 1920_________________ Fuel 22,312 Total 833,478 Cargo 462,978 Fuel .13,320 Total 476,298 352,989 404,787 352,567 11,537 10,525 6,760 364,526 415,312 359,327 128,052 214,528 151,121 2,386 5,724 3,189 130,438 220,252 154,310 265,130 572,268 302,300 120,051 11,475 18,872 36,011 3,370 276,605 591,140 338,311 123,421 217,212 392,853 417,358 116,742 9,022 21,926 37,077 4,306 226,234 414,779 454,435 121,048 363,482 452,506 49,911 13,509 413,393 466,015 240,137 408,824 24,582 21,084 264,719 429,908 307,753 79,594 101,841 4,892 8,804 9,427 312,645 88,398 111,268 238,283 76,902 10,623 2,575 7,580 1,410 240,858 84,482 12,033 4,486,434 207,405 4,693,839 3,075,613 154,181 3,229,794 3,344,832 73,820 3,418,652 3,939,154 111,006 4,050,460 1,508,792 1,337,880 1,418,843 56,183 38,948 21,775 1,564,975 1,376,828 1,440,618 1,158,862 2,101,187 1,253,718 33,925 50,642 33,382 1,192,787 2,151,829 1,287,100 1,041,441 2,735,633 1,054,953 364,048 84,893 171,290 151,469 17,486 1,726,334 2,906,923 1,206,422 381,534 1,351,849 1,662,618 228,731 335,957 246,548 83,858 21,730 68,672 1,598,397 1,746,476 250,461 404,629 1,400,981 2,632,866 2,190,614 305,977 16,692 1,625,130 1,934,022 690,144 163,301 50,170 143,647 235,336 9,904 12,954 143,138 98,285 41,835 13,181 1,451,151 2,776,513 2,425,950 315,881 29,646 1,768,268 2,032,307 731,979 176,482 2,105,250 35,516 2,140,766 1,343,888 9,683 1,353,571 19,090,827 1,072,188 20,163,015 20,756,836 987,088 21,743,924 Percent of Inc. or Dec. — 2 5 .8 4 .5 13 .2 — 3 .1 — 5 .7 9 .2 1 3 .6 1 .3 2 3 .2 — 2 3 .6 — 1 .9 — 2 .8 0 .8 1 2 .8 For Season to end of October Clearings October 16 to November 15 .......... .......... ......... Greensburg......................... Lexington........................... Pittsburgh.......................... Springfield.......................... Youngstown........................ Total............................... 1919 Cargo 811,166 36,252,000 302,251,956 611,444,183 63,715,500 18,136,923 11,676,131 7,468,098 6,591,371 879,496,696 5,914,190 64,654,093 24,816,839 20,811,190 48,854,000 289,284,983 539,982,139 65,747,800 19,237,630 10,689,836 6,572,988 6,504,685 713,621,463 7,743,654 65,883,000 25,546,287 20,641,980 Increase or Decrease — 12,602,000 12,966,973 71,462,044 — 2,032,300 — 1,100,707 986,295 895,110 86,686 165,875,233 — 1,829,464 — 1,228,907 — 729,448 169,210 2,053,229.170 1,820,310,445 23 ?,918,725 1920 1919 THE MONTHLY B U S I N E S S R E V I E W 0 Total Debits by Banks to Individual Accounts Week Ending Nov. 12, 1919 Week Ending Nov. 17, 1920 Akron.......... Cincinnati... Cleveland. .. Columbus.. . Dayton........ Erie.............. Greensburg.. Lexington... Oil City....... Pittsburgh. . Springfield. . Toledo......... Wheeling... . Youngstown. Total........ 18,528,000 67,668,000 187,032,000 29,865,000 11,724,000 8,579,000 5,636,000 4,893,000 3,800,000 225,358,000 3,264,000 35,371,000 10,118,000 16,495,000 628,331,000 27,049,000 60,637,000 167,761,000 28,059,000 12,038,000 7,126,000 4,042,000 4,705,000 2,246,000 185,644,000 3,721,000 34,969,000 8,011,000 14,495,000 560,503,000 Percent of Inc. or Dec. Increase or Decrease —31.5 11.6 11.5 6.4 — 2.6 20.4 39.4 4.0 69.2 21.3 —12.3 1.1 26.3 13.8 — 8,521,000 7,031,000 19,271,000 1,806,000 —314,000 1,453,000 1,594,000 188,000 1,554,000 39,714,000 —457,000 402,000 2,107,000 2,000,000 67,828,000 12.1 Comparative Statement of 92 Selected Member Banks in Fourth District In Thousands of Dollars Nov. 12, 1920 Oct. 15,1920 Inc. Dec. U. S. Bonds to secure circulation................................................ 42,428 42,273 155 ..................... Other U. S. Bonds including Liberty Bonds............................. 60,967 60,682 285 ..................... U. S. Victory Notes...................................................................... 19,217 18,548 669 ..................... U. S. Certificates of Indebtedness.............................................. 12,111 25,552 ...................... 13,441 Total U. S. Securities owned..........................................'............ 134,723 147,055 ...................... 12,332 Loans secured by U. S. Government war obligations.............. 60,216 59,577 639 ..................... Loans secured by stocks and bonds other than U. S. securities . 329,013 328,219 794 ..................... All other loans and investments.................................................. 937,825 941,388 ...................... 3,563 Reserve balance with Federal Reserve bank............................ 101,398 101,177 221 ..................... Cash in Vault................................................................................ 35,859 37,218 ...................... 1,359 Net demand deposits on which reserve is computed............... 947,750 955,757 ...................... 8,007 Time deposits on which reserve is computed............................ 385,045 378,786 7,259 ...................... Government deposits.................................................................... 9,474 19,035 ...................... 9,561 Total resources at date of this report.................................... 1,919,584 1,991,981 .......... 72,397 Movement of Livestock at Principal Centers in Fourth District For Month of October, 1920 1920 Wheeling.. Springfield. Toledo....... Fostoria. . . Dayton Wheeling... Springfield. Cattle 1919 1920 Hogs 1919 Sheep 1920 1919 Calves 1919 1920 27,329 40,510 109,065 153,236 19,160 18,039 9,638 11,043 56,453 52,182 206,957 165,087 71,661 67,275 29,306 22,894 11,343 12,055 67,120 96,498 27,273 42,008 9,312 10,166 1,783 1,273 12,207 15,134 2,657 2,030 762 916 1,068 1,346 9,702 10,949 2,481 2,025 428 387 1,953 2,228 9,883 10,356 1,171 1,587 421 630 445 460 859 687 967 648 957 445 600 800 5,000 150 Purchases for Local Slaughter 17,055 23,825 49,389 75,608 9,010 11,273 5,456 7,592 7,099 6,400 35,383 25,860 13,541 11,343 7,578 5,102 10,470 10,492 47,336 79,208 19,434 20,435 8,987 9,482 543 4,626 25 730 15 400 17 1,060 10 142 10 105 Cars Unloaded 1920 1919 2,006 5,004 1,402 30 15 2,876 4,383 2,023 50 10 THE MONTHLY B U S I N E S S R E V I E W STATEMENT OF CONDITION FEDERAL RESERVE BANK OF CLEVELAND NOVEMBER 26, 1920 RESOURCES Gold and gold certificates......................................................... $ 10,365,000 Gold settlement fund with F. R. Board............................... 83,222,000 Gold with foreign agencies..................................................... 5,774,000 Gold with Federal Reserve Agent......................................... 161,358,000 Gold redemption fund ............................................................. 13,081,000 Total gold reserve............................................................. 273,800,000 Legal tender notes, silver, etc................................................. 2,051,000 TOTAL CASH RESERVE........................................... $275,851,000 Bills discounted—Secured by Government war obligations 95,342,000 Bills discounted—All other ................................................... 112,530,000 Bills bought in open m arket................................................... 31,201,000 Total bills on hand.......................................................... 239,073,000 U. S. Government bonds ....................................................... 833,000 10,000 U. S. Government Victory notes.......................................... U. S. Government certificates of indebtedness................... 23,299,000 All other earning assets................................................................................... TOTAL EARNING ASSETS ..................................... 263,215,000 Bank premises .......................................................................... 1,565,000 Uncollected items and other deductions from gross deposits ................................................................................... 72,954,000 5% Redemption fund against F. R. bank notes.................. 1,139,000 All other resources.................................................................. 364,000 TOTAL RESOURCES................................................... ^615,088,000 LIABILITIES Capital paid in ........................................................................... 10,352,000 Surplus F u n d ............................................................................ 13,712,000 Government deposits .............................................................. 647,000 Due to member banks—Reserve accounts........................... 147,838,000 Deferred availability item s..................................................... 59,762,000 Other deposits including foreign government credits......... 409,000 TOTAL GROSS DEPOSITS. Federal Reserve notes in actual circulation......................... F. R. bank notes in circulation—net liability....................... All other liabilities ................................................................... TOTAL LIABILITIES 208,656,000 352 qqq 22 515 000 g ggO qqq 615,088,000 THE MONTHLY B U S I N E S S E E Y I E W C 11 PICKUPS ON BUSINESS TOPICS AMERICAN automobiles and trucks are so predominant ARPENTERS’ and shoemakers’ tools are being imported in Norway that they give a distinct American touch into Spain from the United States in large quantities. It is recommended that American manufacturers secure to the street traffic, according to a recent report of the Bureau reliable representatives who can inform Spanish wholesalers of Foreign and Domestic Commerce. American Agricultural machinery is prominent in Norway. as to market conditions and prices in the various localities. In general, the high quality of American tools and mechan There is also a market in Spain for electric curling irons. isms is conceded, and the expression is frequently heard that Such irons cost 12 pesetas in Spanish stores in July. There is a lack of photograph and post card albums in American goods rank first in quality, but are somewhat higher in price than the same type of goods from the United Spain. The prices show a rising tendency owing to the Kingdom, Sweden, or Germany. scarcity of paper. In the leather-goods and in textiles and clothing trade the The Third Annual London Fair and Market will be held at United States holds foremost place. the Royal Agricultural Hall, London, England, from July 4 to 15, 1921. The University of Pittsburgh, recognizing the rapid expan The exhibition will consist of five sections: sion of the work of the Secretaries of Chambers of Commerce, Fancy goods (including leather goods). offers a course in its Extension Department for persons hold Toys, games and sports. ing these positions or having similar interests. The plan for Stationery. handling this course is by correspondence during the school Jewelry, silverware, etc. year of the University, from October 1 to June 1, supple Domestic hardware, metalware, electric goods. mented by lectures during a two weeks’ period the following While limited in the scope of articles exhibited, the London Bummer. Fair will be open to exhibitors of foreign nations. This course has been designed to furnish information to Efforts have been made to invite visiting trade buyers the student which will assist him in understanding the prob from all foreign countries through the co-operation of British lems of the business community, the civic betterment bodies, consuls. Inquiries should be addressed to the International and the municipal government. Trade Exhibitions, Ltd., Broad Street House, New Broad St., London, E. C. The British Board of Trade Journal gives a compilation of freight rate increases in fourteen nations, the increases being Bankers’ acceptances are becoming more and more valuable computed on present rates as compared to 1914. The per as an aid in the financing of export and import trade, accord centage of increase in Austria is 390; France, 140; Holland, ing to the American Bankers Association. “ The number of 70 to 140; Norway, 150; Sweden, 200; United Kingdom, 101 trade acceptance users is increasing rapidly and includes to H 4 14 . As compared to these figures, the Bureau of Rail every line of business involving sales on the time basis,” way Economics states that the increase in freight rates in the says the association. ‘1There are more than 20,000 known United States between 1914 and 1920 has been only 67 per users, and where the trade acceptance has been legitimately cent. used the results have been most satisfactory.” American tire manufacturers exported $3,121,530 worth of "Foreign Exchange” is the title of an interesting and casings during August. Exports of inner tubes were valued valuable booklet just issued by the National Shawraut Bank at $327,009 and shipments of solid automobile tires were of Boston. The book is to be commended for the reason that placed at $265,549. British South Africa was the largest it is not of a technical character, but discusses the question importer of American casings during the month, taking tires of exchange in a manner that can be grasped by everybody. valued at $287,631. England was second with imports of Therefore, it is of permanent value. The bank will, no $279,906, and Cuba third with imports of $270,073'. doubt, be pleased to send a copy of the booklet on request. It is stated that if all the railroads in the country were Cincinnati manufacturers, through the Foreign Trade De electrified an annual fuel saving of approximately 121,500,000 partment of the Chamber of Commerce, are planning to make exhibits in the proposed Permanent Industrial Exposition to tons of coal would be effected. This power would have to be furnished from a large steam generating electric station. In be established in Havana, Cuba, for the exploitation of for eign and domestic products. Those interested in the project 1918 the railroads consumed 175,000,000 tons of coal. By the plan the erection of a building to cost $2,uo0,000. method of operation proposed, only 53,000,000 tons of coal would be required. In the first eight months of this year the United States exported 1,150 locomotives, nearly 200 more than in all of The public utility corporations of Ohio have established last year and more than twice as many as normally exported the Ohio Committee on Public Utility Information, which will annually before the war, the National Bank of Commerce keep the public informed as to what is going on in the in New "iork reports. The largest purchases this year have utility industries and to dispel much prejudiced public opin been made by Belgium, Italy, France and Poland. ion, due to lack of authoritative information. There are about 2,000 utility companies in Ohio. The Railroad Corporation of America is building a large Hiiiimmmiiiiiimiiiiitiiiiitiiii central radio station at Port Jefferson, Long Island, which Bankers, manufacturers, exporters and importers will meet will be able to encircle the earth with radio messages. An in Chicago on December 10 and 11, for the purpose of effecting other central station is being equipped at Hawaii to serve the organization of the proposed $100,000,000 Foreign Trade as a relay for all points on the other side of the Pacific Financing Corporation. The plan was inaugurated by the Ocean. Committee on Commerce and Marine of the American Bank ers Association. The Youngstown Chamber of Commerce is behind a plan for incorporation of a $100,000 company, which will rebuild The Fifth International Rubber Exhibition will be held in the Youngstown and Austintown branch of the Erie Railroad London in June, 1921. Many governments, important asso and provide 80 five-acre sites for industrial plants. Work ciations and leading rubber growers and manufacturers of will be started in 60 days, it is announced. rubber goods will join in making the exhibition the largest of its kind in history. Newark Chamber of Commerce has inaugurated the plan of conducting groups of boys through the industrial plants of the city each Saturday with a view to interesting their The American Chamber of Commerce in London is author coming citizens in the industries of their own city. ity for the statement that geologists have estimated the supply of coal in China to be sufficient for world consumption Sales of British automobiles in Chile, entirely suspended over a period of one thousand years. during the war, are about to be renewed. Two well known makers have reappointed agents and are advertising in the During the last fiscal year 129,875 American automobiles daily newspapers. were exported to eighty-one foreign countries. H H I IH IIH tllim ttH IIIH IIIIIM IIIII 'iiitiim iiiiiiH iiiiim iiiiiiiitiiiiii
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