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The Monthly
BUSINESS REVIEW
Catering business and industrial conditions in the Kwrth federal Reserve District
FEDERAL RESERVE BANK of CLEVELAND
D.C.Wills, Chairman of ifce Board
(COMPILED NOVEMBER 20, 1921)
VOL. 3
CLEVELAND, OHIO. DECEMBER I. 1921
of that. It is interesting to note that since the dizzy
HERE can be no doubt that business is losing
ing prosperity of war-time has passed, the movement
its tumble-down appearance. Bit by bit it is
from the country to the city is less in evidence.
looking better, but it is possible that the
majority of reports do not shape up quite so well as This is but one angle of the situation which con
they did last month. The point of view that business
fronts the farmers of today, and there are many
would only require a short time to get on its feet
others. However, the farmer is not alone in his dif
is disappearing. Naturally the “ hand to m outh”
ficulties, for practically all industries have been meet
policy is still much in evidence. This policy dies
ing problems which do not tend to create enthusiasm.
hard.
This is no time for controversy between different
factions. No separate interest can get the upper
A lot of cobblestones in the path of business could
hand over others without damage to itself. So long
well be pointed out. Some of them are in a fair way
as it is the belief of an individual or a group of indi
to be permanently removed, but a big one th at is still
-in the road is the comparative position of the farmer
viduals that someone else is responsible for their
and the city man at the present time. The gears
condition, there will be bitter discontent.
between the farm and the city are not meshing prop
We are all inclined to look too far afield for reme
erly.
dies and forget or neglect those right at hand. The
Ordinarily the farmer is the nation’s greatest buy
answers to the problems confronting the farmer lies
er and until he gets back into the market there can
with the farmer himself.
be no normal resumption of business. The reason he
In almost any community there usually can be
is not a heavier buyer in the market is because he
found a small group of farmers who have climbed a
has to pay too much for what he wants to buy in
few rungs above the average and are making better
proportion to the prices which he receives for the
and surer profits than their neighbors. It may be
products he has to sell. Just like other business men
wheat, it may be cattle, or it may be something else,
the farmer cannot become a force in the solution of
but whatever the product, the superior quality means
our problems until he can produce, ship and market
better prices. In other words, a more standardized
his products at a profit.
method of farming, better timing of crops and a
I t is plain that the much discussed problem of the
closer co-operation between the farmer and his city
movement of the country youth cityward is still in
market, will go far in eliminating present existing
defects in our farming system.
evidence. Short hours, amusements and conveniences
all have their attraction. A job in the city looks
When business shows symptoms of going wrong,
better than the work on the farm. The farmer works
the successful leader does not wait until it collapses
hard and sends his son to school and when the col
to apply a remedy. He is constantly on the alert for
lege days are over the boy goes to the city in search
trouble and is always planning how he may best
for better things than the farm can give him. New
meet present and even imaginary evils. It should
blood is required in every line of work, and farming,
be the same way on the farm. The most effective
the greatest of all industries, is no exception.
thing the farmers can do is to help themselves.
On the other hand the other fellow’s job is not
Close students of the situation see salvation for the
always so attractive in the close-up as it looked from
farmer in organization for the purpose of marketing
a distance. Underneath the glamour and flourish of
his product, without being at the beck and call of
the city, is an every day grind that sometimes makes
those who are out with no other end in view than
the proverbial “ short hour” rule of the city seem
making profit at his expense. However, it is well to
more visionary than real. Generally we envy the
remember that organization cannot hold all .the win
other fellow because we do not know his job. We can
ning cards. The result of organization carried too
see the easy side of it, but we cannot see what is back
far may well be an object lesson.
T
ON PAGES 7 and 8 WILL BE POUND A SPECIAL REPORT ON THE DYE AND COLOR INDUSTRY.
T II ffi M O N T H L I
2
14U8IN33S8
U ifi V I
Counfry Banks Increase
Acceptance M arket Dull
The demand for accommodations from member
banks during the past month has continued to fluctuate. There was a slight rise of city bank borrowing
from October 20 to October 22 followed by a gradual
recession until about the last of the month. Another
increase in the demand followed and this lasted until
near the middle of November. Since th at time another slight decrease is in evidence. Summing up the
month ending November 18, there has been a slight
decrease in the volume of loans to city banks.
There was a gradual increase in the demand for
accommodations from country banks from October
20 until the middle of November. This was followed
by slackening demand. During the month ending
November 18 there was a noticeable increase in the
volume of loans to country banks. The demand from
fanners on the country banks for funds to buy stock
to fatten, continues heavy.
Indications are that there has been little liquidation of agricultural credits from the sale of this
year’s crops. There are more country banks borrowing from the Cleveland Federal Reserve Bank than
ever before. While there is less money being borrowed than last May, the demand has switched
around. At that time the call was coming from the
larger city banks, while at present it is coming from
an increasing number of the smaller country banks.
This bank has not been called upon recently to
extend accommodations to other Federal Reserve
banks and the amount of such rediscounts has been
reduced from approximately six million to two mil*
lion dollars. It is interesting to note from the statement of the Federal Reserve Board at the close of
business November 16, 1921, that rediscounts for
other Federal Reserve banks by Boston, New York
and Cleveland banks have declined to $13,900,000.
On October 26, they were $43,787,000.
~Bankers’ acceptances bought by the Federal
Reserve Bank of Cleveland during October, 1921,
amount to $4,483,344, and the maturing and paid,
$3,209,471. Nineteen accepting banks in the Fourth
E W
Borrowings; Deposits Off;
District report acceptances executed during October
to the amount of $3,614,903, and acceptances paid
$4,760,553.
The combined reports of 18 large saving banks
and trust companies in the Fourth District show a
decline in total time deposits of 3.8 per cent for
October 31, 1921, compared with the same period
last year. This is larger than the September decrease
when the same number of banks showed a decline of
1.7 in comparison with the same period last year.
October time deposits as compared with the previous
month show a decrease of 1.6 per cent.
The undertone of the acceptance market for the
first half of the past month was somewhat better with
slight improvement in the turnover in comparison
with the previous month. Country banks in some sections were buyers. There was also some demand from
corporate and individual sources. Kates have tended
to decline throughout the month in sympathy w ith
the easier call money rates and the increasing supply
of short time demand funds.
The general inactivity of the acceptance m arket in
the past months and the supply and demand of prime
bills have had little effect in the setting of the bank
acceptance rates. The rates have rather been determined by rates on short time funds in the other
markets.
Few bills originated in the District. Much of the
supply offered by the brokers was participated in by
banks from eastern syndicates. No noticeable un
proyement appeared in the supply of bills drawn
against foreign transactions. However, there was a
slight improvement in the supply of paper drawn
against domestic shipment. As last month, there
wTas a general decrease in bills drawn against warehouse receipts.
The present rates for prime bills, eligible for rediscount by the Federal Reserve banks, are as follows:
4 */
Under 30 d a y s ............................................. ..
30 to 60 d a y s ............................... \ \ \ \ \ \ \
to 4*/
60 to 90 d a y s ............................... ! ! ! .! ! 41^ to 4y
Iron and Steel Production Hovering Around F ifty Per cent o f Normal;
Revision o f Freight Rates Disturbing Factor; Purchases by
Railroads Encouraging
Failure of recent expectations of a substantial re
duction of freight rates to be put into effect prompt
ly has caused much disappointment in the iron and
steel industry. It is generally felt in the industry
that freight costs at their present high levels are
stifling business and that if a material reduction can
be brought about, this would give a further import
ant impetus to the reviving market. At present
conditions barely are holding their own on the basis
of about 50 per cent operations. Furthermore, the
uncertainty over fivight rates, since it is commonly
believed a reduction only is a question of time, is a
disturbing factor and this is having a tendency to
hold buying within narrow limits. On the whole
conditions m iron and steel are making little further
progress at this time toward normal operations A
fluctuating state of demand is exhibited among the
several finished steel products and recessions in some
are being offset by improvement in others. Some of
the lighter lines, such as sheets and wire which have
contributed greatly to the recent increase of steel
production have been showing some falling off
However the heavier products which have been W
gmg up to this time are making a better showing
THE
MONTHLY
BUSINESS
under demands originating with some increase of
general business construction, oil field work and rail
road buying. The most enheartening feature of the
market is the expanding purchases by the railroads.
More orders for railroad cars are being placed and
are in negotiation than at any time within a year.
Some large tonnages of rails for 1922 delivery aggre
gating at present 300,000 to 400,000 tons and includ
ing the requirements for such systems as the Penn
sylvania and the New York Central are before the
mills. Some of this buying interest manifestly has
been stimulated by the reduction of $7 per ton in
steel rails. Another finished line to show growing
activity is tin plate in which there has been also a
recent reduction of $10 a ton.
The improved position of the industry in general
is clearly set forth by the figures of October produc
tion. According to the compilation of The Iron
Trade Review the output in October was 1,233,232
tons representing an increase of 24.7,437 tons over
September and the largest month since March. Aver
age daily production in October was at the rate of
39,781 tons compared with 32,857 tons in September.
Furnaces in blast on the last day of October num
bered 95 compared with 84 on the corresponding
date in September and 69 on the last day of August.
Steel ingot production in October was at the esti
mated annual rate of 23,000,000 tons compared with
an estimated annual rate of 17,350,000 tons in Sep
tember. In July the country was down to a rate
of less than 12 ,000,000 tons annually. The October
annual rate represents about 53 per cent of the high
record of steel ingot production which was 1917.
B3VIEW
3
Late iron ore shipments have been ended for the
season and total slightly over 22,000,000 tons. This
is the smallest annual shipment from the Superior
regions in 17 years.
The trend of jyrices in iron and steel under frac
tional operations and keen competition now prevail
ing continues slightly downward. The composite
market average of 14 iron and steel products pre
pared b}' The Iron Trade Review on November 16
stood at $34.63 compared with an average of $35.46
in October, $35.99 in August, $63.75 in November of
last 3rear, and $24.02 in November, 1913.
Pig iron after showing some buoyancy up to a
few weeks ago has settled somewhat and the market
is off $1 or so from its recent top figures. A second
advance of $5 a ton in sheets recently put into effect
by a number of the mills has failed to hold, and
purchasers are back on the old basis, in fact, the
latter is subject to some shading at present.
If the naval disarmament proposals are to be car
ried out on the lines suggested, the trade position of
the iron and steel industry as a whole will be only
slightly affected. An authoritative analysis of the
steel requirements of the American navy in recent
years shows that the steel purchases have aggregated
approximately one-half of one per cent of the total
finished output of the country. From a tonnage
standpoint, therefore, disarmament is a negligible
factor. However, those works specializing in the
production of arms, guns, projectiles, etc., face
material readjustment of their operations, as do also
manufacturers of naval operating and maintenance
equipment, such as heavy cranes, electrical machin
ery, etc.
Lake Shipping Season Practically Ended; Ore S h ip m en ts
For Season L ig h t; Stocks Lower Than Last Year
The lake shipping season finished as it started and
the fleet that was in commission after the middle of
November was very small. Most of the ore shippers
had cleaned up by that time and as the grain move
ment was not heavy enough to take care of all the
tonnage that was offered, a large number of freight
ers were sent to the dock for the winter. The United
States Steel Corporation which shipped a large part
of the ore and took care of most of the wild carriers
in that trade did not load any cargoes in November,
and aside from a few steamers that were operated
in the coal and stone trades, most of them were laid
up early in November.
The mines in the Lake Superior district only sent
forward 3,233,081 tons of ore in October, which
was a decrease of 5,615,905 tons compared with
October last year, when shipments were 8,848,986
tons. The movement for the season up to Novem
ber 1 was 21,894,275 tons or 31,228,067 tons less than
for the same time in 1920 when the fleet moved
53,122,342 tons. Shipments for November were less
than 300,000 tons according to reports received by
shippers and that would make the movement for
1921 a little more than 22,000,000 tons which was the
smallest amount moved since 1904 when the fleet
carried 21,226,591 tons. Ore has been going for
ward from dock to the furnaces a little more freely
the last few weeks and stocks are not as heavy as
they were a year ago. On November 1 the Lake
Erie docks were holding 9,672,077 tons and on the
same date in 1920 stocks were 10,212,975 tons.
Coal shipments for October were 2,722,633 tons
which was a big loss compared with October last
year when the fleet loaded 4,486,434 tons. Shipments
up to November were 20,870,869 tons and the move
ment for the season will be a little less than last year.
Storage room at some of the upper lake ports is
pretty well taken and a number of coal carriers lack
cargoes to hold.
The grain movement has been heavy, but owing to
the big slump in ore the supply of tonnage was in
excess of the demand and sales were low. Grain was
carried in November from ports at the head of Lake
Superior to Buffalo as low as ly i cents and storage
cargoes were taken at 3 cents. There will be a large
amount of grain afloat at this end of the route at the
close of the season and a large number of boats will
hold cargoes at the upper lake ports.
THE
4
MONTHLY
BUSINESS
BEVIEW
L ittle Change in Various Lines o f M anufacturing; Closed Car
Business Holds Up Well; Good Dem and for Plate Glass
There lias been little change in various manufac
turing lines during the past month. In some indus
tries fall activity is wearing off and the usual dull
winter season is causing orders to come in more
slowly.
Even in normal years the automobile industry
generally experiences a slow-up in business during
November and December and this holds good at the
present time. This is the season of the year when
closed cars are in the greatest demand and the sale
of such cars is helping to hold up business.
The condition of the truck industry in the Fourth
District continues erratic. From one section of the
District comes the report that business is very slow
and that with the exception of occasional little
spurts, there is little activity of any note. However,
local business apparently is better and another report
is to the effect that October orders of one large con
cern were the best since June, 1920, and that they
were scattered from one end of the country to the
other. No large individual orders were included.
A manufacturer of axles for passenger and com
mercial cars reports that this particular line of busi
ness worked through a small cycle of improvement
during September, October, and the first part of
November.
Business in the tool manufacturing line is practi
cally the same as in August and September. The
tendency to improve in this direction has not devel
oped as was expected.
There has been a steady gain in sales in the paint
industry since September 1. Stocks throughout the
country are low. Exports are still below normal, but
are showing evidence of picking up. There is a
particularly heavy demand for white lead products
and October business showed a marked improvement
over the corresponding month last year.
Conditions in the tin can industry appear to be
improving from day to day. Orders are coming in
from all parts of the country in increasing volume
and in most instances are accompanied by rush in
structions. Cans are now being manufactured for
the packing trade in preparation for the fruit and
vegetable pack for 1922. Collections in this line
continue good.
There has been no change of any consequence in
the cork industry since last month. The volume of
business is about the same. W hatever change there
has been is for the better.
Plate glass companies are operating 75 to 80 per
cent of their capacity. The automobile demand for
glass has been fair, and the demand from furniture
and mirror manufacturers is exceedingly good.
During the past thirty days there has been a
decided improvement in the window glass business.
Hand plant factories in operation are making ali
the glass they can, but they have been idle for most
of the year. Nearly every window glass manufac
turer in the country has more orders than he can
fill promptly. Stocks are low and there has been a
good seasonal demand.
During the month of October there was a marked
improvement in the printing and lithographic ink
business, both in the number and the bulk of orders
However, the outlook during the past ten days has
not been quite so favorable.
Reduction in Stocks Partially Responsible for Increase in Price o f Crude Oil;
Sales o f Gasoline Heavier Than Last Year
Many calculations on the petroleum industry were
upset by the 50 cent mark-up in the price of Penn
sylvania crude on November 2, and in the price of
Oklahoma crude on November 7. Although the oil
situation with reference to the heavy stocks had been
easing up a little, this increase came as somewhat
of a surprise. Last September the price of Penn
sylvania crude was $2.25 a barrel and it is now
$4.00 a barrel. The peak price of $6.10 was reached
last January. Mid-continent crude has advanced
from $1.00 a barrel the last of September to $2.00 a
barrel against the high price the first of the year
of $3.50.
The advances last September were credited largely
to the end being seen in the present known oil-fields
of Mexico, salt water appearing most unexpectedly
in some of the big wells. There was also a heavy
draft in this country on refinery products with a
continued decline in the production of crude. The
advance of November 7, however, is credited to a
drain on stocks by some of the big pipe line interests
in the southwest, due to a continuing heavy demand
for petroleum products in this country, and an in
creasing demand showing up abroad.
What these advances mean to the oil industry are
best indicated by a rough computation showing th a t
up to November 15 the increase in crude oil prices
represents a total increase in gross receipts by the
oil producers east of the Rocky Mountains of around
$27,000,000, an increase in the value of crude oil held
in storage of around $125,000,000 and an increase in
the value of products held in storage at refineries of
around $63,000,000. The total increase in income
and inventory m about 45 days amounts to approxi
mately $215,000,000.
approxi
The new prices in crude oil has already started
some activity and the feeling is quite general that
the drilling campaigns will gradually become larger
However, it is not expected that the industry wili
get well under way for some months yet, for manv
producers are not equipped financially to go ahead
with a big drilling program.
THE
MONTHLY
BUSINESS
Oil well drilling is at its lowest point in years.
There were less than 800 new wells completed in
September of this year, which is only about a third
of those completed in September of last year. It has
been this great reduction in drilling, together with
the usual falling off in flush production of the new
fields that has been largely responsible for turning
the tide. Interest in the east is centered chiefly on
Kentucky in the Rockfield and Browning shallow
sand areas.
According to the National Petroleum News, repre
sentatives of the oil industry and railroad executives
have practically agreed upon a reduction of 3.5 cents
per hundred pounds on petroleum and its products
in the territory east of the Mississippi and north of
the main line of the Chesapeake and Ohio Railroad
through Virginia and Kentucky. This will amount
to $20 a car and will mean a saving to the industry
of between $4,000,000 and $5,000,000 a year, and will
permit the opening up of more territory to the refiner.
REVIEW
5
Despite many dreary reports from the oil indus
try during the past year the fact remains that it has
sold more of some of its important products than in
any year in its history. The average consumption of
gasoline for the first eight months of this year was
around 428,000,000 gallons per month as against
411,000,000 gallons per month last year. October
reports indicated a considerable reduction in gaso
line stocks.
Fuel and gas oil is being sold in larger quantities
this year than ever before, the average consumption
per month for the first eight months of this year
being around 757,000,000 gallons as against 723,000,000 in 1920. The consumption of kerosene and lubri
cants has been off. Stocks of refinery products have
been large, but not much larger in proportion to the
consumption than in previous years. The marketing
end of the industry has passed through one of its
largest and most profitable years and has made big
extensions in plant equipment.
Quality o f 1921 Crops Good; Corn Crop for 1921 Below 1920 Total;
Burley Tobacco M arketing Organization Reality
Final returns on the quality and amount of crops
raised during the 1921 season quite generally indi
cate a satisfactory summer. While the yield of the
staple crops has been somewhat below th at of 1920,
their good quality has in some measure counteracted
any decrease in the number of bushels.
According to the latest report of the Ohio Depart
ment of Agriculture, the Ohio corn crop this year
averages 41 bushels per acre. This is 2.5 bushels less
th an last year, but the carry-over of last y ear’s crop
is higher so that the total supply on farms is only
about 7,000,000 bushels less than a year ago.
The yield per acre of corn throughout the United
S tates is 29 bushels which compared with a ten year
average of 26.4 bushels. The total corn crop in the
U nited States is estimated at 3,152,000,000 bushels
which compares with the last y ear’s crop of 3,232,367,000 bushels. The total carry-over in the United
S tates is 281,000,000 bushels which compares with a
farm carry-over last year of 142,000,000 bushels.
Ohio white potatoes are of only fair quality. The
average of this crop is estimated at 58 bushels per
acre, which means a total state crop of 6,554,000
bushels. This is only two-thirds of last y ear’s crop,
or about 5,000,000 bushels less than last year. The
average yield per acre of sweet potatoes in Ohio
is estimated at 107 bushels. The quality of the crop
is good.
An event of outstanding importance in the Burley
tobacco district was the success of the co-operative
marketing plan. A minimum requirement of 75 per
cent of the total Burley tobacco acreage was neces
sary in order to insure the organization of the Burley
Tobacco Growers’ Co-operative Association. Final
returns show that about 85 per cent has been
signed up. The organization can now go ahead
and market this y ear’s crop. The exact date
for the opening of the marketing season has not
been determined.
Coal In d u stry A ffected by Proposed Railroad Strike;
Coke Production Increases
In spite of the falling off in orders th at followed
th e settlement of the railroad controversy, a fair
amount of retail coal business is reported. When
the strike was declared off many buyers stopped
making purchases. Some are still holding off and
buying from hand to mouth, expecting a reduction
in freight rates.
The effects of the proposed railroad strike and
mine strikes over the threatened discontinuance of
the check-off can readily be seen in the estimated pro
duction figures of the United States Geological Sur
vey during the month ending November 5.
Week
Week
Week
Week
ending October 15.............. 9,711,000 net tons
ending October 22..............11,049,000 net tons
ending October 29.............. 10,956,000 net tons
ending November 5 .......... 9,315,000 net tons
A gradual improvement in production of beehive
coke, which had halted in the last week of October,
began again in the week ended November 5. The
total output in that week is estimated at 115,000
net tons, an increase of 13,000 over the preceding
week.
6
THE
MONTHLY
BUSINESS
BEVIEW
Condition o f Paper Industry Shows L ittle Change;
Pulp Im ports Fall Off; Box Board S h ip m en ts Increase
The condition of the paper industry during the
past month has shown little change. There was some
gain in orders during the first part of the month and
a slight indication for firmer prices. This, however,
was offset in the last two weeks by some falling off
in demand. Prices have not continued to advance
although remaining at a slightly higher level than
at the beginning of the month. Apparently the usual
seasonal fall is operating and it is believed th at this
may continue until after the first of the year, as
buyers of paper are no doubt endeavoring to keep
their inventories at a low point.
An event of the month was the increase of 24 cents
per pound on contracts for December delivery of
the highest grades of bleached sulphite pulp. At
present only a small tonnage of foreign pulp is being
imported. The principal reason is that the old stan
dards of foreign pulp appear to have declined. Quite
a number of manufacturers report that they have
been unable to use foreign pulp in the grades of
paper for which the pulp was intended when pur
chased.
At the end of the first quarter of this year, manu
facturers of book, cover, tissue and writing papers,
were fortunate who were able to operate at 50 per
cent of capacity. Orders usually ran below that
figure. Stocks in the mills had become enlarged be
cause the manufacturers were reluctant to shut down
entirely even after cleaning up all unfilled orders
and accumulating normal inventories of finished
goods.
Production, orders and sales continued relatively
the same for the second quarter. However, the
third quarter brought up the average so that for the
first nine months of the year the production of fine
papers was only 39 per cent less than for 1920. Mean
while the stocks at the mills increased only 4 per
cent and it is understood that merchants’ stocks have
declmed about 25 per cent.
Magazine publishing tonnage has been severely
affected by a decrease in advertising amounting to
37 per cent less than 1920, still this y ear’s advertising
is but 19 per cent less than 1919, while it is actually
10 per cent higher than 1918.
Shipments of box board were larger during Octo
ber than in any other month this year. 'However
there is some reluctance on the part of the consumer
of box board to place orders for material, unless he
has business upon which to use the stock. While
there may have been a falling off in placement of
new tonnage during the month, mills seem to be able
to move along slowly and have not been compelled to
close down as many did several months ago
Proposed Strike Caused Speed-Up in Transportation;
Surplus o f Shipping Facilities Reduced
After allowing for an unusual pick-up in business
caused by the prospect of a general railroad
strike and a consequent stocking up by manufac
turers and others, October figures on the transporta
tion situation apparently show a continuation of
improvement.
On October 31 there was a total of 80,203 idle
serviceable freight cars in the country of which
33,643 were coal cars. This is the lowest figure for
many months past and does not indicate that there is
gteat suiplus of transportation facilities at present.
However a considerable allowance must be made on
account of the threatened strike of railroad employ
ees. That prospect caused an unusual movement of
raw materials and speeded up the shipping of fin
ished products. The increase in coal shipments was
especially noticeable. Thus the fact that the surplus
of coal cars was reduced by about 65,000 during the
month is not m itself a safe guide to the increase in
normal traffic moving.
Textile Business Less Satisfactory;
L ittle Change in Policy o f Retailers
Reports from the textile industry are not quite so
as they were a month ago. Last month
some of the larger mills in the Fourth District re
ported enough orders on the books to run until Feb
ruary. Wool textile mills were operating near
capacity.
The open fall weather has had somewhat of a
depressing effect on the trade as a whole, and orders
encouraging
are not coming in so rapidly as was expected. Cloth
iers on the road report that their end of the business
is not very strong and some cancellations are the
T O p » r c e n tr fn “ mal.
* * " ‘U>W 0perati" 6 *b° » ‘
There has been little change in the policy o f the
ttve &
7 “re
0rderin* “ *
THE
MONTHLY
BUSINESS
REVIEW
7
The Dye and Color In d u stry in The Fourth Federal Reserve D istrict
Many thousands of years ago the color and scent
of the flowers, the healing herbs and plants, together
with other former vegetation, were decomposed in
the form of coal. Today there is given back to man,
through the wizardry of science and the medium of
coal tar, the colors and perfume of the flowers, the
flavor of the fruits and the medicinal value of the
herbs and roots of pre-historic times. This bears out
the saying that nature allows nothing to perish.
The dye and color industry in the United States
is still in its infancy, and might not be classed as a
major industry in the Fourth Federal Reserve Dis
trict. However, when we discovered that in this
District are located the color plants, furnishing all
the color which goes into the printing of our paper
currency and of the two-cent postage stamps, we felt
justified in preparing a short survey of this industry
for our 25,000 readers; and attempt to give a brief,
clear, non-teehnical description of this indutry, to
gether with a resume of its historic and economic
importance.
It is only the artificial dyeing industry which is
modern. The art of natural dyeing has been prac
ticed in some form by all primitive peoples. In
biblical history we read that, “ Jacob loved Joseph
more than all his children, because he was the son
of his old age; and he made him a coat of many
colors ” Moses told how the skins of the ram and the
badger used in the tabernacle were dyed red.
Indigo is probably the oldest dye known to man.
I t is a product of many different plants, found in
many countries, and has for untold ages been used
by savage and civilized alike. And yet, at the pres
ent time, indigo is produced in commercially import
ant quantities, from its natural source, in but two
sections of the globe, the Bengal region of India, and
Salvador, Central America. These are the last
strongholds of an industry that was once world-wide.
The chemist has succeeded in improving upon the
leisurely and complicated processes of nature to such
an extent that synthetic indigo is now x>roduced
rapidly and economically from aniline in any desired
amount and of higher purity than the natural article.
The indigo farmer, like the madder farmer and the
cochineal raiser, will ultimately be compelled to turn
his land to other crops. The chemist can in a few
minutes produce what the indigo plant requires a
whole season to do.
The only dye rivaling indigo, in the estimation of
the ancients, was Tyrian Purple, a dye so expensive
th at one pound of purple wool cost about $240,
which would make the dye itself worth approximate
ly $5,000 a pound. It was such an expensive dye th at
the Emperor and his family were practically the only
users of it, which gave rise to the expression “ born
to the purple.” The dye was obtained from certain
species of sea snails, which when decomposed formed
this precious coloring material.
In 1909 a color chemist gathered 12,000 of these
snails and by very careful work succeeded in get
ting a total of 1.5 grams of the coloring material.
On analysis it proved to be a combination of indigo
and bromine.
It was in 1856 that William Henry Perkin, an En
glishman, while endeavoring to devise a method of
preparing quinine synthetically, oxidized some ani
line oil, and obtained instead a purplish dye, which
he called “ mauve,” and which was the first of the
modern synthetic dyes. Many aniline colors and
other coal-tar dyes followed, until now dyes of this
class have almost entirely superseded the natural
dyestuff. Mineral and vegetable dyes were formerly
considered more lasting than the artificial ones, but
this view has in most cases no foundation for fact.
In attempting to describe the various processes of
former industrial surveys, there has been something
tangible upon which to base the description, but in
this brief survey of the dye industry one enters the
realm of the laboratory. An attem pt to describe the
chemical reaction, the result of which is the making
of dyes, would be as futile as attempting to describe
the mysterious delusions of a great magician.
Bituminous coal is organic vegetable m atter which
has decayed and has been solidified by pressure and
heat. When this coal is subjected to a high tempera
ture and the air excluded, a process known as de
structive distillation takes place. All the material
volatile at the temperature of distillation is driven
off and what we know as coke is left. P art of the
volatile matter, when cooled to ordinary tempera
ture, forms a liquid. The non-condensible or gaseous
portion is known and used as coal gas. The eondensible or liquid portion is known as coal-tar and
is the basic raw material upon which the dye indus
try is built. By further distillation coal-tar is broken
up into several divisions and these divisions are still
further broken up by a process known as fractional
distillation, in which advantage is taken of the fact
that certain products will distill off at certain tem
peratures.
From coal-tar alone come thousands of com
pounds; dyestuffs of more shades and colors than
can be found in nature, perfumes more pleasing than
the flowers produce; medicines adapted to counter
act the particular disease; and explosives of great
potency.
Practically all the artificial dyes are built up step
by step from simpler substances, which in the terms
of the chemist are called “ synthetical/ ’ The vast
bulk of our synthetic dyes is built up from five
simple initial materials called “ crudes.” These five
crudes are benzole, toluene, naphthalene, anthra
cene, and carbolic acid. There are five others which
are less common. As all these ten crudes are found
in the ta r obtained when coal is heated for the pro
duction of illuminating gas or for the manufacture
of coke, and, as this material constitutes their chief
source, the resulting dyes are generally known as
“ coal-tar dyes.”
These crudes then represent the foundations upon
which can be built an endless variety of structures.
The building operations of the chemist differ some
8
THE
MONTHLY
BUSINESS
what from those of the contractor erecting a house,
in that the chemist ordinarily puts up his structure
one story at a time, each one being complete in itself.
At many of these intervening stages, it is entirely
possible for him to change his mind and complete his
building as a drug, a photographic developer, a per
fume, a flavoring extract or a dangerous explosive
instead of a dye. These intermediate products, there
fore, standing as they do midway between the crude
initial materials and finished products, are known as
‘*intermediates, ’’ and from the ten crudes approxi
mately 250 intermediates are manufactured commer
cially for the production of the 1,000 synthetic dyes
now found in the w orld’s markets.
In 1920 there were 251 coal-tar intermediates made
—all of them products of the single raw material
coal tar and many of them by-products of each other
—about 923 different dyes, 16 photo-chemicals, 48
coal-tar pharmaceuticals or medicinals, 14 flavors and
41 perfumes.
The output of coal-tar by American coke ovens is
sufficient to meet the demands of the domestic coalta r chemical industry for crude materials. During
1920 the output of by-product ovens increased 23 per
cent. Therefore, so far as crude materials are con
cerned, there is no obstacle to the development of a
complete line of dyes and other coal-tar chemicals in
this country.
In 1920, 82 manufacturers reported a total produc
tion of 88,263,776 pounds of dyes, valued at $95,613,749. The quantity produced in 1920 represents an
increase of about 40 per cent over that of 1919 and
exceeds the imports of 1914 by 92 per cent. In fact
we have ourselves already become exporters of dyes,
our exports for the nine months ending September
30, 1920, having been valued at $26,032,389.
Few of us realize how intimately the industrial
economic life of the United States is bound to the
chemical and coal ta r industries. Last year there
were over $112 ,000,000 worth of finished coal-tar
products alone produced in the United States, and
these products played an important part in practi
cally every life and industry in the country. Some
of the great industries in which coal-tar products
play a very important part, and which, to a very
large extent, dependent on these products are the
following industries: textile-silk, cotton and wool
dye and color; paint and varnish; printing ink;
pap er; publishing and advertising; shoe and leather;
perfum e; rubber; canning; drug, and confectionery.
All these industries are well represented in the
Fourth Federal Reserve District and most of them
are almost entirely dependent on coal-tar products,
even though other products form the basis of the
industry.
The unique branch of coal-tar products is that of
the explosives. All the more important explosives
of the present day are either coal-tar products or
the result of chemical processes requiring the use of
coal-tar products. A dye works can over night be
turned into an explosive factory. In a large dyestuff factory there is an unavoidable production of
considerable quantities of substances which are
directly available for conversion into explosives.
REVIEW
Moreover, in addition to these by-products, which
can be used for manufacture of explosives, any of
the materials which are not by-products, but are
directly useful for the production of dyes, can also
by slight alterations be converted into explosives.
For example, in the production of sulphur black,
which is the dye used in the coloring of stockings, if
checked at a certain point, becomes deadly picric
acid.
One of the color plants in this District visited in
the preparation of this article was the plant located
in Cincinnati which produces for the Bureau of
Printing and Engraving at Washington the dry color
from which is printed the two-cent postage stamp.
Another color plant visited is located in Cleveland,
and this plant furnishes the same Bureau with the
dry colors used in the printing of our paper currency.
The process of preparing the dry colors is prac
tically the same for any color, and can be very brief
ly described. As an example, we will take the dry
color used in the printing of the two-cent postage
stamp, which commercially is called Red Lake No. 1 .
The two dyes combined to form this color are tobias
acid and beta naphthal. Either of these dyes is a
whitish powder, but when mixed with water they
form a beautiful red. When properly agitated, the
solution is pumped through a filter press, which
comes from the presses in the form of pulp* This
pulp is then put on large trays and dried in ovens.
From the ovens the cake-like layers are taken to
very delicately adjusted grinders which grind the
cakes to a very fine powder. Chemically pure w ater
must be used in mixing the dyes as any foreign sub
stance would produce a different shade of color.
Also an uneven temperature or an improper circula
tion of air in the ovens, or an improper adjustment
of the grinding machines, would also produce differ
ent shades of color. From the grinding machines a
sample of each batch of colors is taken to the labora
tories where chemists test for bleeding in water and
oil, also for undertones and overtones.
Now a few words as to the future of the dye
industry in the United S tates: As previously stated,
so far as crude materials are concerned there is no
obstacle to the development of a complete line of
dyes and other coal-tar chemicals in this country.
This leaves two other necessary elements, those of
capital and skill. As to capital, there is very little
question but that it will be forthcoming if proper
protection is given this industry. As to skill, the
myth, influenced by German thought, th at United
States chemists could not produce as good a dye as
produced abroad was entirely exploded during the
World War. We have the authority of a Swiss chem
ist, who has had thirty years of dye experience in
European countries, that our chemists not only can
make a dye equalling that made by Germany, but
th at in certain colors which he has analyzed they
have actually produced a dye superior in quality
The main secret in the making of dyes, he stated, was
really no secret at all—simply extreme patience and
minute care m the preparation. Temperamentally
we Americans haven’t the national habit of mind
for painstaking research work and the mechanics of
THE
MONTHLY
BUSINESS
dye-making, such as the European peoples have. In
this line our national sin is quantity rather than
quality. However, the American mind has overcome
far greater obstacles, and it will overcome this one.
The building up of a dye industry is therefore de
pendent on raw materials, capital, and skilled work
men. The raw materials and the capital we have; it
will, however, take a few years to develop patience
and skill.
REVIEW
9
Following is a list of the dye producers located in
the Fourth Federal Reserve D istrict:
Ault & Wiborg, Cincinnati, O.
The Chatlield Mfg. Co., Cincinnati, O.
■Cincinnati Chemical Works, Inc., Cincinnati, O.
The Federal Color Laboratories, Norwood, O.
Goodyear Tire & Rubber Co., Akron, O
The Grasselli Chemical Co., Cleveland, O.
Hord Color Products Co., Sandusky, O.
The Marietta Rofming Co., Marietta, O.
Philip Carey Mfg. Co., Lockland, O.
The Sherwin-Williams Co., Cleveland, O.
Reduced Inventories Aid Present Rubber Production;
M echanical Rubber Business Strong
The solid improvement which follows real liquida
tion continues in the rubber industry. In spite of
the decline in the volume of tire sales that is natural
at this time of year, low inventories have enabled
manufacturers to continue production on a satisfac
tory basis. Production continues around 70 per cent
of the July-August peak.
The cost of labor and materials and the retail
sales prices on tires have been reduced and the latter
are now lower than the pre-war basis. Whereas a
rigorous winter was anticipated back in September,
it is now felt many more men will be employed than
a year ago.
Unsettled weather is causing a demand for rubber
footwear. Rubber sundries and mechanical lines are
strong. There is an especially heavy demand for
rubber heels. The strength of the manufacturing
situation is reflected in the firmer price of crude
rubber.
The National Tire Dealers’ Association at its
annual convention at Cleveland made progress in
planning constructive sales work for spring.
Tire companies through the Rubber Association of
America have announced an agreement to eliminate
abuses of mileage guarantees. Hereafter, their tires
will not be guaranteed for a specified definite mileage
but only as to material and workmanship. This is
another forward step and constitutes another plank
in the new business platform of the rubber industry.
ELEVEN MONTHS’ PRODUCTION FIGURES
Inventory, Production and Shipments (domestic) of Pneumatic Casings, Tubes and Solid Tires,
as Reported by The Rubber Association of America.
4'Production” and “ Shipments” figures cover the
entire month for which each report is made. “ In
ventory” is reported as of the last day of each
month.
“ Inventory” includes tires and tubes constituting
domestic stock in factory and in transit to, or at,
warehouses, branches (if any), or in possession of
dealers on consignment basis, and as a total repre
sents all tires and tubes still owned by manufacturers
as a domestic stock.
“ Shipments” includes only stock forwarded to a
purchaser and does not include stock forwarded to a
warehouse, branch, or on a consignment basis, or
abroad.
INNER TUBES
No. Mfgrs.
MoDth
Reporting Inventory Production
November, 1920 ....
40
6,131,935
742,815
December, 1920 ....
43
5,786,929
508,446
January, 1921 ........
47
5,586,163
740,824
February, 1921 .....
46
5,415,464
916,627
March, 1921 .........
48
5,044,861 1,346,483
April, 1921 ............
51
4,916,772 1,762,122
May, 1921 ..............
57
4,751,880 2,210,040
June, 1921 ..............
60
3,835,098 2,359,928
July, 1921 ................
61
3,122,815 3,020,981
August, 1921 ..........
64
3,649,319 4,430,152
September, 1921 ................
3,827,830 3,274,822
Shipments
920,938
1,481,285
1,042,617
1,129,881
1,643,690
1,983,571
2,342,567
3,232,673
3,603,248
3,804,060
2,645,758
PNEUMATIC CASINGS
No. Mfgrs.
Month
Reporting Inventory Production Shipments
November, 1920 ....
36
5,880,016
649,742
806,023
December, 1920 ....
43
5,508,380
506,111 1,327,153’
45
5,319,605
703,430
965,417
January, 1921 .......
February, 1921 ......
45
5,193,018
819,892 1,073,756
March, 1921 ..........
46
4,597,103
1,163,314 1,614,651
April, 1921 ...........
49
4,527,445
1,651,418 1,785,951
May, 1921 ..............
59
4,451,668
2,100,917 2,085,882
June, 1921 ..............
63
4,154,456
2,313,265 2,643,850
July, 1921 .............
63
3,892,037
2,570,524 2,757,581
August, 1921 .........
66
3,934,583
3,043,187 £,894,442
September, 1921 ............... ...... 3,340,798
1,929,268 2,047,929
SOLID TIRES
No. Mfgrs.
Month
Reporting Inventory Production
November, 1920 ....... 11
298,875
21,355
December, 1920 ....
12
303,473
16,297
January, 192*1 .......
12
303,753
21,220
February, 1921 .....
12
304,374
23,365
March, 1921 ............
12
283,800
28,710
April, 1921 ............
12
269,985
28,859
May, 1921 ..............
12
264,633'
35,156
June, 1921 ..............
n
240,336
28,395
July, 1921 ..............
11
220,003’
35,123
August, 1921 ..........
11
216,367
55,694
September, 1921 ....
....
161,832
27,441
Shipments
34,217
40,828
29,116
29,599
43,926
42,080
40,122
49,867
55,678
66,866
50,276
THE
10
MONTHLY
BUSINESS
REVIEW
M arket for Canned Foods Weak; D istributors9 Stocks L ig h t
While the canning industry has had an off season,
canners are quite optimistic as to the future. They
are still coping with weak markets which have pre
vailed for some time. While the market for canned
foods is not materially declining it is still quite
unresponsive due to the conservative buying of
distributors.
The hopeful sign from the standpoint of the canners is that the stocks of canned foods carried by the
distributors are very light, and that the output of the
past season is not sufficient for the needs of the con
sumers, based on the record of normal consumption
for the past five years. It is the general opinion
of the careful observers that after the first of the
year the market will greatly improve.
At a recent committee meeting between canners
and wholesale grocers, some differences that had been
causing considerable friction, were ironed out. One
causes of friction was the contract requiring the
producer to make a 100 per cent delivery or be
penalized. This refers to sales made in advance of
the pack for future delivery.
The committee reported that this contract had
been abrogated and the previous contract permitting
the delivery of from 65 to 75 per cent without penalty
had been restored. The committee also reported that
other matters of misunderstanding between the
producer and the distributor had been cleared up and
a closer co-operation promised, to the end that the
product of the producer may reach the consumer at
a reduced cost on the part of the middleman.
General Outlook in Building Favorable; Local Operations
Show Increase Over Last Year
Building operations that showed such a reassuring
recovery during the month of September are moving
along with a fair amount of speed and present indica
tions are that the activity will continue through the
winter months.
There lias been a better demand for building
materials. The completion of many buildings of a
residential character has had a noticeable effect on
stocks, particularly of the lower grades. Inquiries
are becoming more general and there is a greater
tendency among dealers who have been buying
from hand to mouth to replenish their stocks to
something like normal conditions.
The reductions in wages and cost of materials
made early in the summer has resulted in increased
house building operations in Cleveland and vicinity.
The record for the 10 months of the present year
show that 1,894 frame dwellings at a cost of $9,840,000 have been started in the city proper as compared
with 1,527 frame dwellings at a cost of $8,487,000 for
the same period last year.
In the four leading suburbs of East Cleveland
Lakewood, Cleveland Heights and West Park, the
total value of permits to November 1 amount to
$14,043,000 as compared with $11,442,000 for a like
period in 1920. In Cleveland Heights alone the value
of permits issued from July 1 to November 1 this
year was $2,659,000 in comparison with $1,359,000 for
the same four months last year.
The total number of permits for all classes of
buildings in the city proper from January 1 to Nov
ember 1, this year, was 11,513 at a cost of $41 475 000
as compared with 10,181 for the same period last
year at an estimated cost of $57,139,000.
• Els,ewj\e.re in this is?ue may be found a table show
ing building operations in the Fourth Federal
Reserve District for the month of October
Com m on Brick In d u stry Indicates Substantial Im provem ent;
Paving Brick Plants R unning Near Capacity
Reports coming in to the national office of the
Common Brick Manufacturers Association of
America, which is located in the Fourth Federal Dis
trict, indicate a substantial improvement in the com
mon brick industry throughout most parts of the
country. The sections of the country where a
readjustment of freight rates has been made are
showing the most improvement.
According to the report of the National Pavin*
Brick Manufacturers Association, also located in the
Fourth District, paving brick manufacturers in this
District, for the month ending November 20, are for
the most part at capacity production. Shipments
are heavy. Inventories are low. M anufacturers are
loading cars directly from the kilns.
THE
MONTHLY
BUSINESS
11
REVIEW
Clearings
October 16 to November 15
1921
Akron.......................................................
Canton.....................................................
Cincinnati.............................................. *
Cleveland.................................................
Columbus.................................................
D ayton.....................................................
Erie...........................................................
Greensburg...............................................
Lexington.................................................
Pittsburgh................................................
Springfield................................................
Toledo......................................................
Wheeling..................................................
Youngstown.............................................
$23,200,000
14,507,707
234,302,103
348,941,309
54,528,100
16,977,671
8,276,600
4,575,590
5,454,809
512,096,501
5,048,545
47,500,284
19,349,877
12,245,768
T o ta l...........................................
$1,307,004,864
1920
Increase or
Decrease
IVr cent
Inc. or Dec.
$36,252,000
22,683,523
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
— $13,052,000
—8,175,816
—67,949,853
—262,502,874
—9,187,400
—1,159,252
—3,399,531
—2,892,508
—1,136,562
—367,400,195
—865,645
—17,153,809
—5,466,902
—8,565,422
—36.0
—36.0
_og _5
—42! 9
—14.4
—G.4
—29.1
—38.7
—17.2
—41.8
—14.6
—26.5
—22.0
—£1.2
—$768,907,8:29
—37.0
l*er cent
lii'\ or Dec.
—29.7
$2,075,912,693
Debits to Individual Accounts
Week Ending
Nov. 16. 1921
(271 Banks)
Wwk Endin:'
Nov. 17, 1820
(219 Hanks)
Akron...............
Cincinnati........
Cleveland........
Columbus........
D ayton............
E rie..................
Greensburg.. . .
Lexington........
Oil C ity...........
Pittsburgh.......
Springfield.......
Toledo.............
Wheeling.........
Youngstown. .
$12,534,000
62,759,000
118,225,000
26,215,000
12,875,000
6,126,000
4,061,000
3,521,000
2,775,000
142,800,000
3,273,000
29,025,000
7,912,000
10,208,000
$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
Increase or
Deccuxs
—$5,994,000
—4,909,000
—68,807,000
—3,650,000
1,151,000
—2,453,000
—1,575,000
—1,372,000
— 1,025,000
—83,058,000
9,000
—6,346,000
—2,206,000
—6,287,000
Total.
$441,809,000
$628,331,000
—$186,522,000
—32.4
—7.3
—36.8
12.2
9.8
—28.6
—27.9
—28.0
—27.0
—36.9
2.7
—17.9
—
—
21.8
—38.1
Comparative S ta te m e n t o f Selected Menxbev Banks in F ourth District
(In Thousands of Dollars)
Loans and Discounts secured by U. S. Government
obligations...................................................................
Loans and discounts secured by other stocks and bonds. .
Loans and Discounts, all other............................................
U. S. Bonds.............................................................................
U. S. Victory Notes...............................................................
U. S. Treasury Notes............................................................
U. S. Certificates of Indebtedness.......................................
Other Bonds, Stocks and Securities.....................................
Total Loans, Discounts and Investments...........................
Reserve with Federal Reserve Bank....................................
Cash in Vault.........................................................................
Net Demand Deposits...........................................................
Time Deposits........................................................................
Government Deposits............................................................
Total Resources at date of this report.................................
Nov. 9,
1921
85 Banks
49,605
332,837
578,094
111,205
15,192
2,939
15,609
275,139
1,380,620
86,375
30,066
770,911
429,081
24,20?
1,776,088
Oct. lii,
1921
85 Hunks
51,499
335,803
590,242
110,147
14,407
6,034
10,699
277,805
1,396,636
93,995
29,320
802,720
423,950
39,782
1,820,461
Inc.
Dec.
1,891
2,960
12,148
1,058
785
3,095
4,910
2,066
16,016
7,620
746
.......
5,13i
31,809
15,579
44,373
THE
12
MONTHLY
BUSINESS
REVIEW
Wholesale Trade
Percentage Increase (or Decrease) in Sales During 1920 a nd 1921
Over the Corresponding M onth in Previous Year
Dry Goods
— 2 7 .5
— 4 .2
— 2 0 .0
— 5 1 .6
— 2 2 .8
— 1 4 .9
— 4 .2
— 1 3 .6
— 2 4 .4
— 8 5 .5
— 1 3 .2
— 1 0 .5
7 .3
October, 1920.
November___
December. . . .
January..........
February........
M arch............
April..............
M ay...............
June...............
July................
August...........
September___
October, 1921.
Groceries
— 1 0 .8
— 3 .8
— 1 8 .8
— 8 6 .7
— 2 7 .1
— 3 3 .1
— 8 7 .7
— 3 5 .1
— 4 9 .8
— 4 3 .6
— 2 0 .4
— 8 2 .6
— 3 1 .3
Hardware
2 .0
1 6 .7
— 1 6 .9
— 2 0 .6
— 1 9 .0
— 1 6 .8
— 2 1 .9
— 2 2 .0
— 8 2 .9
— 3 8 .5
— 4 1 .1
— 8 9 .5
— 3 8 .0
Drugs
4 5 .8
— 1 7 .0
— 1 9 .0
— 8 1 .2
— 2 9 .2
— 2 8 .4
— 2 8 .4
— 2 2 .2
— 1 5 .0
— 2 1 .2
— 1 8 .4
— 1 6 .9
D epartm ent Store Sales
Percentage of net sales (selling price) during October,
1921, over net sales (selling price) during same
month last year.......................................................
Percentage of net sales (selling price) from July 1,
1921, to October 31, 1921, over net sales (selling
price) during same period last year........................
Percentage of stocks at close of October, 1921, over
stocks at close of same month last year...............
Percentage of stocks at close of October, 1921, over
stocks at close of September, 1921........................
Percentage of average stocks at close of each month
this season (commencing with July 1, 1921) to
average monthly net sales during the same periodn
Percentage of all outstanding orders (cost) at close
of October, 1921, to total purchases (cost) during
the calendar year, 1920............................................
Cleve.
Pgh.
Toledo
Other
Cities
District
— 1 5 .6
— 1 6 .6
— 1 4 .0
— 9 .8
— 1 5 .2
— 2 0 .9
— 2 3 .5
— 2 0 .1
— 1 8 .8
— 2 0 .8
— 1 7 .9
— 2 7 .5
— 2 7 .9
— 1 4 .9
— 2 0 .9
1 .9
3 .0
1 .5
2 .8
2 .8
4 2 2 .5
4 2 0 .7
5 2 9 .6
5 6 5 .5
4 4 1 .1
5 .6
6 .5
4 .0
7 .8
6 .0
M ovem ent o f Livestock at Principal Centers in Fourth Federal
Reserve District For M onth o f October9 1921-1920
Cattle
1920
1921
Cincinnati.
Cleveland.
Columbus.
D ayton. . .
Fostoria...
Pittsburgh.
Springfield.
Toledo---Wheeling..
Cincinnati.
Cleveland.
Columbus.
Fostoria...
Pittsburgh.
Toledo---
34,615
10,870
6
2,925
1,137
51,178
348
1,328
467
Sheep
1921
1920
17,055
10,470
54
7,352
.......
15
7,099
543
19,303
44,980
41
1,044
4,072
81,788
905
2,125
416
1920
19,160
27,278
Calves
1921
1920
1,171
2,481
71,661
800
2,657
648
11,665
8,386
232
708
406
81,566
155
710
909
835
428
29,306
150
916
957
Purchases for Local Slaughter
9,010
70,643 49,389 12,547
49,586 47,336 26,432 19,434
328
15
10
1,340
1,400
51,399 35,383 13,840 13,541
25
.......
4,626
7,087
7,981
28
55
6,859
.......
5,456
8,987
.......
142
7,578
730
27,329 119,508 109,065
11,343 82,386 67,120
4,968
9,888
1,953 11,292
9,702
1,068 11,455
56,453 261,148 206,957
5,000
7,271
600
1,783 12,112 12,207
859
1,397
445
19,677
9,719
1921
9,638
9,812
Cars
Unloaded
1921
1920
2 ,3 5 9
2 ,0 0 6
1 ,6 4 7
1 ,4 0 2
9
50
4 ,7 6 1
.......
187
14
80
5 ,0 0 4
15
207
7
THE
MONTHLY
BUSINESS
13
REVIEW
Building Operations For M onth of October
Permits Issued
Alterations
New Construction
19*1
Akron.............. . 166
148
Canton.............
347
Cincinnati.......
395
Cleveland*. . . ,
321
Columbus
195
D avton............
122
E rie..................
16
Lexington. . . .
Pittsburgh . . . . . 394
54
Springfield . . .
176
Toledo...........
74
Wheeling........
Youngstown. . ..
92
Total
Valuations
New Construction
Alterations
1920
221
93
76
169
196
128
57
10
309
17
143
36
117
1921
45
68
164
813
102
75
43
63
130
19
129
28
27
1921
1920
1921
1920
50
346,300 405,597
14,540
43
349,120
155,965
18,656
482
912,875
884,810
81,655
864 4,317,342 1,435,900 1,335,590
98
596,135
527,275
91,220
39
695,955
226,977
22,475
35
277,285
168,085
80,800
69
60,000
46,775
16,495
82 3,904,927 1,417,444
230,051
10
48,975
9,090
5,300
153
270,520
359,835
102,929
18
154,085
45,492
6,110
19
151,780
501,050
16,340
1,572
1,706
2,022,161
1,962 12,085,299 6,184,295
*1921 figures include Lakewood and Hast Cleveland.
Inc. or Dec. of
Per cent
1920 Total Valuation Inc. or Dec.
—87,332 —19.5
42,575
100.6
184,481
27,330
325,740
—216,020 —17.8
3,642,382
181.2
574,650
74,445
12.1
85,635
151.9
58,194
433,259
166,410
86.8
23,590
19,720
34.7
10,000
2,351,659
131.9
365,875
38,030 234.1
7,155
—153,535 —29.1
167,149
110,958 225.4
3,745
—354,980 —67.9
22,050
1,713,688
6,209,477
78.6
S ta te m en t of B itu m in o u s CoclI Loaded Into Vessels {As D um ped by Docks)
In Net Tons for Season to End of October, 1921, as Compared w ith the Sam e
Period for the Seasons of 1920-1919
ports
Railroads
1021
Cargo
Fuel
Hocking Valley........... 4,079,150 107,350
Toledo & Ohio Central. 1,027,438 29,667
Baltimore & Ohio....... 2,354,369 72,016
Sandusky Pennsylvania.............. . 1,552,971 45,076
Wheeling & Lake Erie. 1,491,595 42,905
Huron
Baltimore & Ohio....... .2,393,742 97,034
Lorain
Cleveland Pennsylvania............ . 1,990,664 86,325
. 359,981 12,782
Ashtabula New York Central. . . 1,064,824 59,124
Pennsylvania............ .'•2,213,065 72,753
Conneaut Bessemer & Lake Erie . 1,362,601 18,258
Erie
Pennsylvania—West. . 770,091 27,030
Pennsylvania—E ast... 209,778 31,073
Toledo
T otal.............................
Total
4,186,500
1,057,105
2,426,385
1,598,047
1,531,500
2,490,776
2,076.989
372,763
1,123,948
2,280,418
1,380.859
797,121
243,851
("argo
3,344,832
1,508,792
1,337,880
1,418,813
1,611,411
2,735,033
1,051,953
364,048
1.351,K49
1,662,01s
2,105,250
2-28,731
335,957
1920
Fuel
73,820
56,183
38,948
21,775
84,893
171,290
151,469
17,186
240,548
S3,858
35,516
21,730
08,072
Total
3,418,652
1,564,975
1,376,828
1,440,618
1,726,334
2,906,923
1,206,422
381,534
1,598,397
1,746,476
2,140,766
250.461
404,029
Cargo
1919
Fuol
3,939,454
1,158,862
2,101,187
1,253,718
1,400,981
2,632,866
2,190,614
305,977
1,625,130
1,934,022
1,343,888
690,144
163,301
111,006
33,925
50,642
33,382
50,170
143,647
235,336
9,904
143,138
98,285
9,683
41,835
13,181
Total
4,050,460
1,192,787
2,151,829
1,287,100
1,451,151
2,776,513
2,425,950
315,881
1,768,268
2,032,307
1,353,571
731,979
176,482
20,870,809 704,393 21,575,202 9,0!)0,S-27 1.07-2.188 20,163,015 20,756,836 9S7,088 21,743,924
It
THE
MONTHLY
BUSINESS
REVIEW
STATEMENT OF CONDITION
FEDERAL RESERVE BANK OF CLEVELAND
NOVEMBER 30, 1921
In Thousands of Dollars
RESOURCES
Gold and gold certificates_____________________________ $ 12,306
Gold settlement fund—F. R. Board_____________________ 66,000
Total gold held by bank.____________________________ __ 78,306
Gold with Federal Reserve Agent_____________________ 165,.>64
Gold redemption fund________________________________
7,245
Total gold reserves_____________________________ 251,115
Legal tender notes, silver, etc__________________________
7,729
TOTAL RESERVES ___________________________
Bills discounted—Secured by U. S. Government obligations
Bills discounted—All other __________________________
Bills bought in open market___________________________
.18,953
67,291
2,902
$258,841
Total bills on hand_______________________________
U. S. bonds and n o tes_______________________________
U. S. Certificates of indebtedness—One year-----------------17. S. Certificates of indebtedness—All other.-----------------
109,146
844
9,040
204
TOTAL EARNING A SS E T S _____ ______________
119,231
Bank prem ises_______________ ______________________
3 ijj j
5% Redemption fund against F. R. Bank notes---------------Uncollected ite m s -----------------------------------------------------All other resources---------------------------------------------------
339
47,728
1,008
TOTAL RESOURCES----------------------------------------
430,961
LIABILITIES
Capital paid i n ---------------------------------------------------------Surplus-------------------------------------------------------------------Reserved for Government Franchise Tax----------------------Deposits—Government ---------------------------------------------Member Bank-Reserve account-----------------------------All o th e r _______________________________________
11,124
22,264
3,045
3,321
128,295
725
TOTAL D E P O S IT S ------------------------------------------F. R. notes in actual circulation----------------------------------F. R. Bank notes in circulation—net liability..........................
Deferred availability item s..... .................................................
All other liabilities----------------------------------------------------
1MMI
TOTAL L IA B IL IT IE S---------------------------------------
430,9154
213,492
4,896
42.286
1,516
Ratio of total reserves to deposit and F. R. note liabilities combined = M.8%
Compared with 72.5% last week.
Ratio of gold reserves to F. R. notes in circulation after setting aside 35 per cent against
deposit liabilities = 99.5% compared with 96.0% last week.
THJ S
MONTHLY
BUSINESS
REVIEW
PICKUPS ON BUSINESS TOPICS
HAT Great Britain does present a really good market for
labor-saving devices, provided they are of the right kind,
ia pointed out by the American Chamber of Commerce in
London in a recent report on this trade. Hitherto it seems
American exporters generally have not proceeded along the
proper lines to insure any real success. They have over
looked the fact that electricity, which is necessary for most
of their devices, is not as cheap or as plentiful in England
as in the United States and some other countries, and that
the initial costs of installing many of the labor saving
machines are too high. Although the smaller and less expen
sive devices, such as the electric iron, are much favored,
electrically driven washing machines, catpet sweepers, elec
tric fires and ranges arc beyond the reach of the average
householder. Until the electricity supply of the country is
further developed, non-electrical devices will be most in
demand.
T
German machinery is steadily regaining its markets in
Japan, according to press comments* It is said that immedi
ately after the war Japanese machinery orders were placed
with Germany only for special goods peculiar to German
manufacturers. Subsequent trial orders, however, have prov
ed that the machinery is equal to that produced prior to the
war and is offered at prices lower than British and Ameriean
goods. Principally, orders for scientific and chemical machin
ery used in laboratories, it is said, are reaching Germany from
Japan.
Berlin’s automobile show, the first since 1911, marks the
complete re-entry of the German automobile industry into
world competition. At the same time the German makers
opened their speedway, the only one of its kind on the Con
tinent, which undoubtedly served as an immense attraction
to the show. There were many interested foreign buyers be
cause of the low price made possiblo by the depreciated value
of the mark.
A preliminary announcement of an automobile exposition
in Amsterdam, the Netherlands, in February and March, 1922,
is reported. The exhibition is expected to stimulate coneiderably the interest in motor vehicles, and the period short
ly after the exhibition may thus be well chosen for the intro
duction and sales promotion of American products in this
market.
Though Americans are looked upon as a nation of spenders
Tather than of savers, yet a recent circular issued by the
Treasury Department places the per capita savings of tbe
United States at $250. The savings in Federal securities
reaches in liberty bonds and war savings stamps $21,000,000,000 and in some .*¥0,000 savings banks, $6,000,000,000.
There is enough timber in the Philippine Islands to take
care of the industry of the Far East, according to Major
General Leonard Wood. Few people appreciate the enormous
resources in the islands in the way of lumber, much of it of
the most valuable kind. Nearly 230,000,000 feet of it was
cut in 1020, of which 15,000,000 was exported.
Japan is once more importing certain lines of Ameriean
merchandise, notably steel, iron and chemicals. The Island
Empire is commencing to exploit hydraulic possibilities along
scientific lines and, while power, of course, will be furnished
by local companies, the rails, rolling stock, and electrical
equipment will have to be imported.
irtn n,?,l‘t[ar C8tilt.<l 5n <l,e ‘‘««tern part of Cuba is offering
licAi nin i8’ V
croP 8UKar f°r shipment next year,
t0
based on average cost and
davsli.fi'!
?"
P",ban raw 8"Kars> prevailing several
- a btforo aud several days after date of arrival.
NEW telephone device, called the mute-a-phone, is easily
A
attached to any telephone and is designed to absorb
all sound waves not essential to transmission and to provide
in sufficient quantity and of elear quality, enough sound for
transmitting any message perfectly, even though the speaker
cannot be heard by persons sitting next to him. The pro
ducers of this appliance guarantee that the user will be able
to converse unheard by persons in close proximity to him;
that the party at the other end of the line will hear distinctly
and that all outside noises will be kept off the wire*
An attempt is being made to interest the many British
wearers of sport shoes in a recently introduced leather or
canvas shoe having a sole cut from unvulcanized plantation
crepe rubber. It is thought much better wear is gotten from
crdpe rubber soles than from those which have been put
through the vulcanizing process. Shoes soled with raw crdpe
rubber present a most attractive appearance, as the rubber
is of a bright golden color with corrugated surfaces. Aside
from giving additional wear, the soles are exceptionally resili
ent, since they contain many times as much rubber as the
ordinary vulcanized rubber sole.
The United States uses about 80 per cent of the rubber that
is grown throughout the world, and controls only a small pro
portion of the supply. The answer to the rubber problem is
expansion abroad. If the industry were developed in the
Philippines, says one authority, we would obtain from there
a steady supply of plantation rubber and thus be free from
dependence on foreign nations in time of emergency and from
the price-fixing tactics of foreign trusts in time of peace.
The organization of a cotton trading corporation at the free
port of Danzig, designed primarily for handling Ameriean cot
ton consigned for sale to European spinners, is indicated in
an announcement received by the Department of Agriculture.
A fireproof building of 1,196 square yards in area has been
leased in the free port and the men behind the project are
Vf ^ Ho*10*18 t0 malte co:nnections with American exporters
Ihere is a big demand for automobiles in Australia. It is
estimated that the country could absorb 450,000 cars, but
there is only one-sixth of that number in use now. Autoraobiles costing around $1,750 are chiefly in demsnd, and it is on
tne low pnees that America has gained such a firm bold of
tne market. Australia has an important accessory industry
of her own, as well as a good body-building trade.
th ^ P a n ^ i numb.eraof. toms of cargo which passed through
dunng th« fiscal year 1921 exceeded the
increase £? £ 11,
by 2-225’000 ton8>
the
of the <.nn .l !Lamonnted *°, W 63.000. Since the opening
^n„. «
Vth® average toll has been approximately one
dollar for each ton of cargo transported.
PQ
Automobile license fees in New York State in 1022 will he
* hor8eP°w,er of the motor instead of by lkt
v^rfc’-wCt i!>nj to Pr0JK>^ 1? at a conference between New
KMra.tl°"
Lownian
legislative eommit-
J
X* K ? S d Af0*of wtyecnt»•
i.-iThcA vl0t government in Russia has begun the issue of
bills of tbe nominal value of one million, five million, and ten
Bullion rubles, the idea being that it would be impossible to
carry around several millions in small bill®. These are said
to be the largest denominations ever issued by any govern
ment.
•
The Spanish Government is planning to purchase large
quantities of ready-cut houses of various grades and sizes,
specially adapted for workmen's homes, according to a cable
gram from Commercial Attache Cunningham,
Madrid.
@FedFRASER