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BUSINES S REVIEW T h e M o n th ly Covering business and industrial conditions in the Kwrtfc Rderal Reserve District FEDERAL RESERVE BANK of CLEVELAND (COMPILED JA N U A R Y 20, 1921) VOL. 3 T CLEVELAND, OHIO, FEBRUARY I, 1921 N*. I of the weather of tomorrow. He is always ready to HE turn of the year has witnessed a decided spread sail in fair sailing weather and is equally as change in business sentiment. Reports reach quick to furl sail when approaching storms may be ing us this month are almost a unit in declar ing that signs point to improvement in the businessobserved. situation. Some of the more optimistic profess to In every form of construction, whether it be of building, bridges, automobiles or what-not, there is see a distinct revival in the immediate future, while what is known as the “ factor of safety’ —the ratio others, somewhat less enthusiastic, agree that the of breaking stress to the greatest strain that is likely outlook is much more hopeful. to be applied. The purpose is to furnish strength in Whatever the future may hold for us, we must excess of the rated capacity to provide for unusual recognize the force of the old adage that it is “ useless strains or stresses. An automobile truck rated at to cry over spilled milk.7' The present situation has one-ton capacity will permit of considerable over been brought about by the working of inexorable load; a railroad bridge designed to carry a certain natural laws, and our time should now be spent in load is built, theoretically, to carry the designated planning for the future rather than in trying to find load plus a considerable excess. It is not the inten some one to whom we may attach the blame for tion that this margin of safety shall ordinarily be what has happened in the past. employed, and ordinary prudence would not permit An analysis of the situation will show that condi its use except in extreme emergencies. tions are not so bad as many would have them to In the business world we find some who have so appear. The dire predictions of the calamity howlers extended themselves that there has been no reserve have not been borne out. Business has slackened strength upon which they might depend in time of somewhat, but when it renewTs activity it will be stress—no preparation for the inevitable rainy day— upon a more sound and stable basis, and offer a much better hope for a more lasting prosperity. and some rough sledding may be ahead of them. This condition is chargeable to their own lack of A few calamity howlers, in unsettled times, make so much noise that it is easy to overestimate their foresight, and they will be left to work out their number, much as did the farmer who went to the city own salvation. provision merchant and found that frog legs were sell Readjustment movements like the present will ing at an exceptionally high price. He stated to the spend their force only when the proper relative balance has been restored. This does not imply that merchant that if that price were the real one, he could supply him with a million frog legs a week. a continuous lowering of price levels is at h a n d ; the He received such a contract and surprised the mer movement may be checked, either in the natural chant the following week by appearing with about order, or as a result of arbitrary methods such as six frog legs. Upon inquiry as to where the balance were employed during the war, but it is as useless of the million were, the farmer stated that the frogs to try to permanently stem the tide of readjustment down on his farm made a noise like a million, but as to attempt to make wTater run up hill. when he went to convert them into reality he found The improved reserve position of the Federal Re there were but three or four. serve banks is an indication of easier credit condi In connection with the change in sentiment it tions. Lower prices for commodities mean lowered must be remembered that there is much psychology costs of doing business, with a consequent release of in business. When people are talking in a pessimistic additional credit. This may not become- apparent vein it is easy for us to view all things through dark until many large inventories purchased at top prices glasses. On the other hand, when leaders in industry have been worked off, but it is a condition that will and finance are more optimistic in tone, the feeling ultimately develop as a result of the resumption of spreads like disease germs, everyone becomes affected business. with the contagion, buying is stimulated and the Business now recognizes that it would be injurious wheels of industry once again begin to turn. to its own best interests to lose what it has thus far That there are times when it is necessary for busi accomplished in the way of readjustment. We have ness to slow up goes without saying. Blind optimism struggled through the quicksand of expansion to the leads to dangerous extremes. The cautious business firm ground of safety, and, “ forgetting the things man is at all times feeling the business pulse, and which are behind” business sentiment is crystallized trying to discern the signs of today that are prophetic on the spirit of “ Carry on.” THE M O N T H L Y B U S I N E S S R E V I E W Banking Situation Improves; Acceptance Market Increases Activity The banking situation continues to show improve ment. Banks have succeeded in holding loans to these required for the most essential things, and have in some eases reduced them. At some points interest rates have stiffened slightly. The January 1 interest period has passed with no unusual disturbance, although some banks report withdrawals in excess of those of a year ago. Demands from country banks continue active. Some of this demand appears to be the aftermath oI: farm land speculation during 1918 and 1919. Little or no speculative tendency exists at this time in that regard. During the past month, the bank acceptance mar ket has been more active than at any other time since its creation. There has been an abnormal demand in proportion to the supply and all prime bills are ab sorbed as quickly as they are offered. The supply of bills during this period of general business inactivity has been less than former months, which has brought about a reverted situation in the market equanimity. The rates during the month have declined from a GVi per cent to 6 per cent basis to a 5 ^ per cent to 5y2 per cent basis. With the present call money rates around 7 per cent, the present rate of bankers1 ac ceptance is at a more normal level than at any time since the creation of the open discount market. W ith financial conditions of industrial institutions some what doubtful, many of the country banks turn to bankers’ acceptances in preference to the one-name commercial paper, which accounts for part of the abnormal demand. Again, deposits in the banks from Government taxes has also brought a call for additional 60 to 90-day paper. With the present familiarization by many additional institutions of the desirability of the bank acceptance, it is doubtful if the rates will ever return to the level of 1920. New Business in Iron and Steel Contracted; Independent Operations Further Reduced; Unfilled Orders Show Falling Off New business has been slow to respond in iron and steel following the widespread shutdowns of plants over the holiday period and it remains much con tracted at the present time. The reflection of this condition is to be found in the low state of current plant operations with the very important exception, however, of the Steel Corporation mills. By reason of its policy, extending over many months, of main taining minimum prices, the leading producer had accumulated a large order book and this now is being worked against. Production consequently has been maintained on a practically full basis. In contrast to this situation the independent steel companies which had sharply advanced finished material prices, and had dealt largely with immediate requirements, find themselves with depleted order books and a greatly contracted market. Although these companies gen erally now have reduced their prices to the Steel Corporation basis, they find relatively little new tonnage moving under present business conditions. This has brought about the widest spread between the operation position of the independent companies and the largest producer. It is doubtful if the inde pendent capacity is more than 30 to 40 per cent active at the present time. Many of these plants are idle for an indefinite period and operations with a number of them, which had resumed early in the new year, have been tapering off. At mid-January, but 12 per cent of the independent steel capacity in the Mahon ing valley was in commission. While sharp inroads are being made by the Steel Corporation into its accumulation of orders, prospects are that, barring a complete disruption of the market, this interest will be able to maintain reasonably full operations for several months. This position is in such decided contrast to that of independent com panies that it makes the questions of competition and prices in the near future of outstanding importance. In a number of isolated cases, as desirable business arises, independent companies are under-quoting the Steel Corporation price level. There is every indica tion that this unsettlement will continue to spread. Along with the liquidation of prices many indepen dent companies have been putting into effect wage reductions ranging from 15 to 20 per cent. These apply to all classes of labor running back to the ore mines. A general reduction of 15 per cent on wages in^ the Lake Superior ore district is to be put in effect February 1 by those independent operators who had not taken this step already. The Steel Corporation has made no changes in wages in its ore mine or plant operations, and it is not likely to do so at the present time. The raw material markets on iron and steel have continued to show a steady decline, particularly in pig iron and coke. Pig iron has dropped to a basis of $30 for No. 2 foundry and $29 for basic in the Mahoning and Shenango valleys, which is $19 to $20 per ton under the high point of September. The iron market in other districts also has been showing a comparable descent. New buying has been very light and suspensions of orders heavy. The blowing out of merchant blast furnaces has continued until the smallest number of this class in about two years now is producing. Notwithstanding this fact and the unwillingness of producers to pile iron at present costs, merchant stocks of metal in the country have been increased to approximately 500,000 tons. Under normal conditions this is not a large amount, b u t with consumption so restricted, it promises to influ ence further retrenchment of the production of iron for sale. Coke prices have fallen further, though at a much slower pace. Spot furnace coke recently has been sold in the Connellsville regions at $4.00 ovens as compared with its high point of $18.00 to $20.00, several months previously. At present it is quoted around $5.00 ovens. THE MO N T H L Y B U S I N E S S KE VI E W Pig iron production in December was 011 a con siderably lower scale than in the preceding month and amounted to 2,703,872 tons, according to the compilation of The Iron Trade Review. In November the output was 2,935,081 tons. The active furnaces as of December 31 were 213 compared with 255 No vember 30. With the December figures, the output of coke and anthracite pig iron for the calendar year of 1920 is shown by The Iron Trade Review to have been 36,404,572 tons. This compares with 30,578,730 3 tons in 1919 and 38,437,448 tons in 1918. Steel ingot production in December was at the annual rate of 32,570,000 tons compared with the rate of 38,190,000 tons in November. The total ingot output for 1920 is indicated to have been 40,500,000 compared with 33,694,795 tons in 1919, and 43,051,022 tons in 1918. Indicating the contraction of new work, structural steel lettings in December are estimated at 47,000 tons, or 26 per cent of fabricating shop capacity. Indications Point to Late Opening of Lake Traffic; Ore Stocks at Lake Erie Ports Heavy The indications are that the start in the lake trade will be slow and that there will not be the rush to send boats out that there was last spring when there was a good demand for tonnage at both ends of the route. A large number of plants have been idle the last two months and as that means that considerable ore will be carried over, the general opinion is that the furnace men will not be in the market to place orders for their requirements for 1921 until about sailing time. Shipments of ore from Lake Erie ports to the interior furnaces for December were heavier than expected. The docks sent forward 1,251,315 tons, which was a good increase over December, 191'J, when the movement was only 638,080 tons. The Lake Erie docks on January 1 were liolding 9,927,317 tons of ore and 011 the same date last year stocks were 10,090,708 tons. There was a let-up in shipping orders in January and there will have to be a big increase in the movement on the docks or the receiving ports will not be in good shape by the opening. The grain shippers are not bidding for tonnage and no chartering has been done in that trade for opening shipment. A year ago a large number of steamers, including some big carriers, were under charter to load grain on the first trip at four cents from ports at the head of Lake Superior to Buffalo. Some tonnage has been lined up for early loading in the coal trade but the rates have not been fixed. The demand in local trades is very light and in order to keep the mines running some of the shippers have decided to send coal to the lake front. Six steel steamers have been named to take cargoes at Huron, and loading at that port will be started in February. According to reports received by shippers coal is not going forward from the upper lake docks very freely. Manufacturing Conditions Show Im provem ent; Inquiries and Orders More Active Throughout almost the entire manufacturing field we have reports indicating an improved tone. I 11 many cases this is based u 1*011 inquiries rather than actual orders, but road salesmen report the existence of a quite improved feeling, and in some lines a more active order movement is observed, some manufactur ers reporting business as “ brisk.” Motor truck manufacturers report increased buy ing in practically all sections of the country; public utilities are placing orders, and according to one large producer “ there is every indication of consider able business from the large industries.' ’ Makers of passenger cars comment 011 the fact that sales at the New York show, while not as large as a year ago when the shortage was so great, were quite in k e e p i n g with the records of all previous years. There are f e w e r buyers of low-price cars in the maiket, but there is said to be a fair demand from present owners who desire to obtain new cars before the general readjustment process further re duces I h e ir second hand valuation. Another prominent auto manufacturer reports that the New York auto show was one of the best ever held in regard to interest and the securing of “ pros pects'1 for sales in the near future. In the foundry and kindred lines of manufacture. business continues quiet, although there have been some promising inquiries since the first of the year. Hardware and supply jobbers are buying cautiously, but there is some activity. Hardware manufacturers report, little change in the situation from a month ago. Generally speaking, business in that line may be characterized as ex tremely dull. Uncertainty and hesitation still mark the agri cultural implement business, although a big producer states that “ there are many signs that with the open ing of spring there will be a normal demand for farm machinery. It is said that the farmer in recent years, like other classes, has purchased what he wanted rather than what he needed, and the quantity of farm machinery marketed in any one year since 1912 has not exceeded 60 per cent of that y ear’s volume.’’ Business in the tool manufacturing line is almost nil, and manufacturers see nothing in the present situation to indicate any improvement in the near future. Some slightly increased activity is noted in the rubber industry, but dealers are buying more cautiously than in recent years. The demand for mechanical rubber goods continues active, with de mand generally quite up to that of former years. THE MO N T H L Y B U S I N E S S R E V I E W 4 Paper box and box board manufacturers report inquiries picking up, especially from the textiles and shoe trades. Stocks are said to be normal. The paint trade is placing orders quite liberally. Some manufacturers have guaranteed prices against further declines up to July 1, and this action has been reflected in more active sales. Pig lead and linseed oiL prices are now within reach of those of pre-war days. Stocks are low and buying is taking place in small quantities as compared to orders placed heretofore in the tin can industry. Collections are said to be slowing up. The steel oil barrel business is flat. Oil companies report that consumers are locating all the old barrels they can find and sending them in for credit. This is in interesting contrast to the days when people did not think it worth while to bother to return a barrel for $3.00 credit for a wooden barrel or $10.00 for a steel barrel. In the hardwood lumber line, mills are closing down for lack of orders, and at consuming points manufacturers are letting stocks of raw material run down. Manufacturers of electric motors report business very much reduced. Stocks of finished goods are said not to be large, although this is not so true of the small fractional horsepower sizes as it is of the ordinary range of commercial motors. Conditions Improving in Textile Trades In the textile trade a better all-round feeling pre vails. In the men’s clothing trade huge accumula tions of surplus stocks seem to have been, generally speaking, disposed of; the retailers, in turn, have enjoyed a fair volume of business which has held throughout the January sales. While this business may be at a small profit, or even a loss, the fact remains that stocks are being reduced. This point, in the trade, is considered a healthy augury for spring business. Woolen mills and clothing factories are, for the most, still running on a reduced schedule, so that, while absorption continues, production is sub stantially reduced. Winter Wheat Suffers ms Result of Unseasonable Weather; Farmers Borrowing to Carry Crops The lack of protective snow covering, and the alternate <£freeze and thaw ” weather so far during the winter has done some damage to the wheat crop. It is not yet possible to determine the extent to which the crop has been hurt, but with seeding so generally late, the bulk of the wheat went into the winter in none too good shape to withstand severe treatment. In the Kentucky tobacco section, much talk is heard of raising no burley crop in 1921, and holding the present crop from the market until a higher price is offered. The disposition of the farmers to hold their 1920 crops still holds, while the tendency of prices is toward lower levels. A relatively low price for farm crops and livestock has brought about an unusual situation in the farming section, in that farm ers are borrowing money to “ tide them over” —a siruation that has not existed for many years. Im provem ent Shown in Transportation Field With the congestion of traffic during the last sum mer as a direct or indirect result of the switchmen’s strike now altogether removed, the railroads are in better position to handle the business offered them than at any time during the past two or three years. Freight schedules are not yet up to the standard of pre-war days, but deliveries are being made satisfactorily. An open winter lias so far assisted in the free movement of trafiie, and the equipment supply ap pears to be equal to the demand. A\ i111 the exception o! car-repair men, labor forces are normal. Coal Operations Continue Active; Retail Movement Affected by Mild Weather While the slump in business has affected the min ing and shipping of bituminous coal, there has been, contrary to general belief, a very large movement of this fuel. The disappearance of practically all transportation troubles has facilitated the movement of cars, the supply now being greater than has been the case for some time. Contract prices for coal now range from $3.25 to $4.00 a ton, while coal shipped on consignment has brought a net return to the shipper as low as $1.50 a ton. This contrasts with a high point of about $16.00 a ton during the year 11)20. The retail coal dealer has been hard hit by reason ol an unusually warm winter, but retail prices of coal hold firm at substantially the same levels as a year ago. THE MONTHLY B U S I N E S S RE VI E W Stagnation Continues in Building Line; Wage A djustm ents Now Being Negotiated There has been no appreciable change in the build ing situation in this District during the past thirty days. Building programs are still being held up in anticipation of further reduced costs. There has been a marked reduction in the cost of some building ma terials. Lumber at some markets has dropped about 40 per cent from the peak price, and the average line Speciml Report on Shipbuilding Industry During the war of 1812, Oliver Hazard Perry w~as called on to defend the Great Lakes against the in trusions of the British fleet. lie took his men into the forest, chopped down trees and by the end of the summer of 1813 he succeeded in building a squadron of nine vessels which met and defeated the British in the memorable battle of Put-in-Bay. Perry built some good boats; he made a record for speedy ship building, and had he been told that the time would come when a ship capable of ocean travel could be built and equipped ready for sailing in 26 working days, he no doubt would have thought such a task utterly impossible. The German submarine showed such persistence in sinking the Allied shipping during the World W ar that the United States was forced to increase her shipbuilding facilities and to turn out boats at an unprecedented rate of speed. Many new building berths were constructed, new dry docks were built, new and up-to-date machinery was in stalled, skilled and unskilled labor was drafted and hired, and boats were launched in some instances one month after the keel had been laid, fully equipped, where before it had required months and even years to build them. Formerly the launching of a ship was quite a gala event in the life of a ship builder, but it came to be such a common occurrence that even the heretofore indispensable bottle of champagne was eliminated and the ship slid dow^n the ways unheralded and with no pomp or ceremony. When the coast towns failed to keep up with the depredations of the submarine the shipyards of the Great Lakes were called on to furnish boats. Unfortunately these vessels had to be made of a length and breadth that would pass through the Welland canal locks. This handicap limited the length of the boat to 261 feet and the breadth to 43 feet 6 inches. These dimensions gave the boats very little clearance and they were sometimes dam aged when passing through the locks. The old tars who had sailed the high seas for many years were at first inclined to ridicule these small boats. They said it was impossible for them to stand the gaff of ocean travel, but they have since changed their minds. These boats have proven to be the “ Fords” of the merchant marine, not that they are of cheaper construction, for the best material and workmanship that money could buy was used in building th em ; but they can enter ports where it is impossible for the larger ships to go, they are operated at less cost, and they are not delayed by waiting for a large cargo, of so-called "h ard materials” has decreased from 10 to 20 per cent. The railroad companies are assuring shippers of quick and adequate transportation. Spring wage agreements are now being negotiated, and some large building projects now held in abeyance may be re leased as soon as fairly definite cost figures are obtainable. which sometimes happens to the larger vessels. The feat of cutting the larger lake boats in two, sending them through the locks and then putting them to gether again ready for ocean travel, is an example of modern engineering skill of which every red blooded American has just cause to feel proud. Shipbuilding in this district began about 1808, when a little schooner was built in Cleveland on the hill above the Cuyahoga river and hauled down to the river by oxen. This boat was named “ Zephyr,” and was of 45 tons dead-weight capacity. It is hard to imagine what a contrast there w^ould be, were it possible to line the Zephyr alongside of our modern lake steamers, some of them over 600 feet long and with a carrying capacity of 13,500 gross tons. From this small beginning the shipbuilding industry on the lakes has advanced rapidly, until at the present time a good look at an inland harbor where the giant freight boats and passenger steamers of the lakes are docked for the winter and one is almost ready to believe he is looking at an ocean port. In ship construction the plans are first laid out in the mold loft, and the lines of the ship are drawn upon wide smooth floors. In many instances the lines of several ships, all of different construction, are drawn upon a single floor and to an outsider they look like a Chinese puzzle, but the skilled draftsmen have no trouble in following them. The templets from which the holes are drilled and punched in the iron and steel are made of basswood. This wood is thoroughly dried and a reserve supply is always on hand for new plans. When everything is in readiness for the actual construction work to start, the berth on wrhich the ship is to be built is jjrepared. This necessitates the truing up of the long lines of blocks upon which the keel is laid. From the keel the vessel is built up piece by piece until she is ready for launching. As each piece of iron and steel is put in place it is securely bolted, after which the rivets are driven home by means of compressed air hammers. As the sides of the ship are built upward the men work on scaffolding. In some of the modern ship yards the scaffolding on one side of the ship is of steel construction and is permanent, wThile on the other side it is built of wTood. Each time a ship is launched the w^ooden scaffold is removed and the ship is slid into the water sideward. As a general rule ships built in the yards of seacoast towns are launched into the water stern first, and at one time this was the custom on the lakes, but 6 THE MO N T H L Y B U S I N E S S R E V I E W at the present time side launching is found to^ be more satisfactory and is used almost entirely. This method was adopted because in some cases the water is not deep enough and the boat would be damaged when she slid from the ways. When a boat is side launched, it is held on an even keel by means of timbers until it strikes the water and then it rolls far to one side as if about to turn completely over. But the ballast in the hold prevents this and soon she is riding on an even keel. W ater compartments are built below the hold of the vessel. These compartments also extend some distance up the sides of the ship. They are quite narrow and take up very little room. The compart ments are divided into sections and water is pumped into them for ballast. In case the ship when loaded with cargo has a list to one side, water is pumped from the compartments on the side on which the cargo is the heavier, and more water is added to the opposite side until the ship rides on an even keel. These compartments are also used when a storm causes the cargo to shift in the hold of the vessel. One of the big problems of lake shipping is how to unload the boats quickly and cheaply. The first methods employed in unloading ore shipments were very crude and they remained so for many years after cargoes of ore began to reach the lower lake ports. The ore was shoveled into tubs which wTere attached to cables, pulled to the top deck by horse power and then wheeled ashore in barrows. One day an engineer while watching this slow process decided that an engine could be used to good ad vantage. After much protesting on the part of the ship owners a little 6 by 12 portable engine was tried out and was so successful that engines came into general use. But the ore still had to be shoveled into the tubs by hand and wdieeled ashore. Later a single cable device for carrying the ore from the boat to cars or stock piles wTas patented. It was known as the “ Old Tom Collyins.” This machine eliminated the use of horses. At the present time the use of giant clam shovels capable of carrying 17 tons at a single trip make the task of unloading a quick and simple one. The latest device for the simplifying of the unload ing process is new and is not in general use. The hatches in the hold of the vessel are built in the form of a hopper with an opening in the center and beneath this opening an endless chain with buckets attached for carrying the ore. These buckets carry the ore to the fore part of the hold, where an elevator carries it upward. The elevator automatically dumps its load on a large revolving belt operating on a boom attached to the deck of the vessel and swung to shore. This process eliminates all hand shoveling, and a cargo of ore can be unloaded in a very short time. Grain is not carried in vessels of this type for it is claimed there is too much loss in unloading. There are two large lake vessels of this type and several smaller ones at the present time. The great majority of boats built in the Fourth District are for freight service. Their construction is pretty generally the same. They are built to prove absolutely seawrorthy and at the same time to mini mize the obstructions to cargo carrying, including loading and unloading. In the forward part of the vessel is found a collision bulkhead. It is claimed that 10 to 12 feet of the for e part of a vessel could be completely demolished and it would still remain afloat. The bridge is built well forward so that the navigating officer can command a good view of the lake. When the lake boats were sent through for ocean travel it was necessary to change this part of the ship's construction, for it was impossible to navi gate from a bridge built on the forward part of a ship with the heavy seas washing over it. They were moved back and nearer the center of the deck. Directly under the bridge is the captain's quarters where he can be reached in a moment's notice. Directly back of the cargo hold are found the coal bunkers, then come the boiler rooms, the engine rooms, and last of all the giant shaft connected directly with the propellers. Above are found the cabins for the ship’s crew. The shipbuilding industry requires quite a large percentage of skilled labor. During the war while the shipyards were running at full speed it was a real problem to secure sufficient labor to carry on this industry, and for this reason enormous wages were paid, newspaper advertisements offered attractive propositions and men were even drafted for this work. Following is a list of the various kinds of work men, skilled and otherwise, that are required to build a ship : ship draftsmen, marine engine draftsmen, loftsmen, _ship fitters, ship carpenters, ship joiners, ship riggers, marine machinists, marine boiler makers, angle smiths, ship smiths, copper smiths, pattern makers, moulders, riveters, chipp^rs and caulkers, painters, tinsmiths, forgers and laborers. There are many arguments for and against the plan for a deeper waterway which would permit ocean going vessels to enter the lakes and load and unload their cargoes at the lake ports. One of the arguments against this project is that the larger ocean boats would compete with the lake shipping. This seems rather inconsistent for while it is true that the transportation which is necessary between railroad centers in order to get the cargoes to the ocean ports would be cut to some extent, it would be impossible for the ocean boats to compete favor ably with lake shipping. The lake boats are built to travel at minimum cost, they can be loaded and unloaded quickly and cheaply while with the great ocean liners it is just the opposite. With few hatch ways through which to put the cargo in the hold and to remove it, a great amount of time and labor is required. While one of these boats was loading at the port, the lake boat could make several trips. At the present time there is practically no ship building going on in the shipyards of ‘the Great Lakes. The government contracts have all been completed for some time and about the only activity in the yards is repair and alteration work/ But the captains of industry at the head of the shipbuilding corporations are looking for renewed activity in this T II E M O N T H L Y line as evidenced by the fact that the yards are in perfect repair, the workmen are anxious to return to their old jobs, and the well oiled machinery is waiting the pull of the levers that will set it in motion 44full speed ahead.” Coal, ore, grain and limestone are the four com modities which form tlie backbone of the hike trade. Coal for the most part is carried northward, while the boats on their return trip carry cargoes of ore. Dur BUSINESS 7 REVIEW ing the war the shipments of these commodities and others which were so essential for the successful continuation of the war could not stop. All overland transportation was badly congested, the railroads were almost hopelessly swamped and the auto trucks, although aiding, did not entirely relieve the situation. But the Great. Lakes with their wonderful shipping facilities was the only system of transportation which carried its shipping program through on schedule. Following is a list of the building berths and dry docks in ship yards of the Fourth District. The majority of the berths are for 600 foot boats, but during the war, in order to speed up production, two boats of ocean going type (261 feet long) were often under construction in a single berth at the same time. BUILDING BERTHS American Shipbuilding Company, Cleveland P lant.....................................................................................................................3 Lorain Plant...........................................................................................................................8 The Great Lakes Engineering W orks...............................................................................................................................................2 Toledo Shipbuilding Company...........................................................................................................................................................3 DRY DOCKS LENGTH WIDTH On blocks Over all Bottom Top Name of Dock feet feet Location feet feet GOO 650 Ashtabula Great Lakes Engineering Works 85 102 Cleveland American Shipbuilding Company No. 1 ............................................... 536 547 88 No. 2 . . . . . . ................................... 442 455 55 No. 3 . . ............................................ 340 360 55 American Shipbuilding Company Lorain No. 1 ............................................... 550 605 94 No. 2 ............................................... 724 774 85 125 Toledo Shipbuilding Company Toledo No. 1 ............................................... 641 659 78 96 560 No. 2 ............................................... 526 101 “ 240 A. Gilmore......................................... 230 55 Entrance Depth over feet sill, feet Construction 72 16 concrete. 58 48 48 13% wood. 16 wood. wood. 1 66 77 15 15 82 14j^2 concrete. 13 wood. 9 wood. 71 ^ 37 wood. wood. NUMBER AND GROSS TONNAGE OF VESSELS BUILT ON THE GREAT LAKES FOR FISCAL YEARS ENDING JUNE 30, 1910—1020. Year 1910 1911 1912 1913 1914 1915 Number 281 216 224 219 130 147 Tons 168,751 94,157 90,898 90,907 56,514 16,467 Year 1916 1917 1918 1919 1920 Number 126 147 168 317 257 Tons 44,691 139,336 215,022 507,172 394,467 THE MONTHLY B U S I N E S S RE V I E W 8 M ovement of Livestock at Principal Centers in Fourth District For M onth of December, 1920 Hogs Cattle Sheep Calv 00 1920 1919 1920 1919 1920 1919 1920 1919 17,961 176,213 160,779 ' 7,385 10,543 6,783 9,032 Cincinnati............ Pittsburgh........... .......... 31,520 33,455 266,747 223,349 79,925 91,282 18,223 18,492 8,139 10,430 98,030 122,011 36,805 58,192 8,895 9,591 Cleveland............. 714 17,353 23,206 2,978 3,784 547 799 739 Toledo................... Fostoria ......... 405 495 373 Dayton................. .......... 1,221 2,265 12,871 15,917 3,193 315 469 541 2,434 342 692 583 Wheeling.............. 6,000 300 300 300 Springfield........... Purchases for Local Slaughter Cincinnati.......................13,772 19,019 93,431 88,088 5,893 5,867 4,231 6,020 Pittsburgh...................... 5,632 7,912 108,331 108,197 30,023 37,627 5,421 4,957 Cleveland........................ 7,364 9,560 75,343 101,389 16,407 16,158 8,486 9,013 Toledo.......................................... Fostoria........................................ 7,924 >85 429 Dayton............................ 971 Wheeling...................................... Springfield................................... Department Store Sales 1920 1919 2,297 4,762 1,847 286 2,606 4,694 2,427 309 30 5 35 Cleveland Other Cities District 4.9 11.5 14.7 13.2 23.2 20.6 19.2 5,5 — .5 11.5 —17.0 —23.4 —20.1 —19.0 367.0 424.9 443.1 398.5 5.4 3.9 4.9 4.7 Pittiburgh 23.7 CD 04 Percentage increase of net sales during December, 1920, over net sales during same month last year.................................................... Percentage increase of net sales from July 1, 1920 to December 31, 1920, over net sales during same period last year................................ Percentage increase of stocks at close of December, 1920, over stocks at close of same month last year................................................. Percentage increase of stocks at close of December, 1920, over stocks at close of November, 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 December, 1920, to total purchases (cost) during the calendar year 1919........ Cars Unloaded Wholesale Trade Percentage Increase (or Decrease) in Sales During 1920 Over the Same Month Last Year July........... August. . . September. October.. . November. December. Dry Goods .0 .5 16.0 10.0 —27.5 — 4.2 —20.0 Groceries 32 2 47.8 20.0 1.0 23.8 —10.8 — 3.8 —18.8 Hardware 31.2 37.2 24.7 21.5 12.4 2.0 16.7 -16.9 Drugs 30.2 53.4 29.6 11.1 31.1 45.8 17.0 9 THE MONTHLY B U S I N E S S R E V I E W Total Debits by Banks to Individual Accounts Akron...................... ...................................... Cincinnati.............. ...................................... Cleveland............... ...................................... Columbus............... . ..................................... Dayton................... ....................................... Erie.......................... ...................................... Greensburg. . . . . . . ...................................... Lexington............... ...................................... Oil City................... ...................................... Pittsburgh.............. ....................................... Springfield.............. ...................................... Toledo..................... ....................................... Wheeling................. ....................................... Youngstown........... ....................................... T otal................... ...................................... Week Ending Jan. 19, 1921 261 Banks reporting 13,747,000 73,909,000 159,550,000 29,087,000 11,539,000 6,759,000 5,400,000 4,363,000 3,950,000 216,622,000 4,107,000 27,942,000 9,544,000 15.317,000 581,836,000 Week Ending Jan. 21, 1920 238 Banks reporting 28,832,000 69,333,000 157,648,000 33,013,000 12.573,000 7,569,000 3,725,000 13,470,000 2,874,000 190,525,000 4,109,000 33,009,000 8,714,000 14,072,000 579,466,000 Increase or Decrease Percent of Inc. or Dec. Increase or Decrease Percent of Inc. or Dec. —15,085,000 —52.3 6.6 4,576,000 1.2 1,902,000 — 3,926,000 —11.9 — 1,034,000 — 8.2 — 810,000 —10.7 44.9 1,675,000 — 9,107,000 —67.6 37.4 1,076,000 26,097,000 13.7 — 2,000 0.0 — 5,067,000 —15.3 9.5 830,000 1,245,000 8.8 2,370,000 .4 Clearings Akron...................... ....................................... Cincinnati.............. ..................................... Cleveland............... ...................................... Col HIill) us............... .......... ........................... D ayton........................................................... Erie.................................................................. Greensburg............ ........................................ Lexington....................................................... Pittsburgh............. ......................................... Springfield........... ......................................... Toledo.............................................................. Wheeling.............. Youngstown........ ......................................... lo t id................. ......................................... December 10 to January 15 1920-2i 1919-20 36,566,000 209,616,355 573,399,248 67,441,300 19,957,033 11,296,330 6,937,152 5,850,281 817,085,707 7,305,220 62,633,665 22,419,758 22,368,066 1,862,876,115 51,356,000 306,111,630 604,530,066 65,255,000 22,863,565 10,698,754 5,276,870 17,434,215 716,102,534 8,547,738 68,289,646 22,734,009 23,651,427 1,922,881,454 —14,790,000 —96,525,275 —31,130,818 2,186,300 — 2,906,532 597,576 1,660,282 — 11,583,934 100,983,173 — 1,242,518 — 5,655,981 — 314,251 — 1,283,361 —60,005,339 —28.8 —31.5 — 5.1 3.3 —12.7 5.6 31.5 —66.4 14.1 — 14.5 — 8.3 — 1.4 — 5.5 — 3.1 Building Operations for M onth of December Permits Issued Now Construction Alterations 1919 1020 1919 1950 Yaluat ions New (’on slruction Alterations 1920 1919 1920 1919 205 26 40 Akron 57 88,475 1,138,079 122 347 354 130,8(50 215,085 120 Cincinnati 139 401 346 6,000,044 4,015,500 •Cleveland 169 87 50 53 523,540 218,755 71) Columbus 79 29 31 336,125 881,579 Dayton S2 12 22 29 47 Erie 68,750 284,191 6 5 16 9 Lexington 16,000 15,000 192 58 53 597,465 996,945 130 Pittsburgh 8 15 18 7 Springfield 27,640 56,665 65 44 42 84 Toledo 70,950 599,033 Wheeling 5 14 17 11 30,105 11,225 13 37 113,935 231,875 Youngstown 50 58 Total 789 1,05-1 1,029 1,011 8,00:5.889 8,603,032 * 1920 figures include Lakewood and East Cleveland. 32,450 128,030 2(H),425 281,320 391,950 478,300 31,370 83,085 25,350 20,021 9,600 32,210 2,567 6,065 95,292 199,589 19,625 9,050 57,610 44,175 3,570 1,585 15,700 53,760 972,811 1,258,888 Inc. or Dec. of Percent of Total Valuation Inc.orDec — 1,145,184 — 156,120 1,898,194 253,070 — 540,125 — 238,051 — 2,498 — 295,183 — 39,600 — 541,518 16,895 — 156,000 — 940,120 —90.4 —31 .4 42.2 83.8 —59.9 —75.2 —11.9 —27.0 —51.9 —82.5 114.2 —5 4 . 6 — 9.5 THE MONTHLY B U S I N E S S REVIEW 10 Comparative Statem ent of Selected Member Banks in Fourth District (In Thousands of Dollars) 89 Banks January 14, 1921 December 56,051 97,654 20,199 11,835 1,272,280 1,458,019 99,454 Reserve Balances with Federal Reserve B ank............ 36.380 Cash in Vault........................................................................ 908,435 Net Demand Deposits on which reserve is computed. 403,134 Time Deposits on which reserve is computed.............. 11,394 Government Deposits......................................................... Total Resources.............................................................................. 1,898,370 59,143 104,299 20,310 27,918 1,272,351 1,484,021 102,282 39,177 914,296 385,399 47,555 1,936,927 Loans and Discounts, Secured by U. S. Government obligations.............................................................................. United States Bonds................................................................ United States Victory Notes................................................. United States Certificates of Indebtedness....................... 93 Banks 17, 1920 Increase 3,092 6,645 111 16,083 71 26,002 2,828 2,797 5,861 36,161 38,557 Commercial Failures in Fourth District Number 1920 February................................ .......................... M arch.................................... ....................... April....................................... .......................... ........ M ay ........................................ June........................................ ....................... ............................ J u ly ........................................ August................................... .......................... September............................. ............... . . . . October.................................. .......................... November............................. .......................... December............................... .......................... Total.................................. .......................... 48 63 36 42 65 54 70 65 69 66 75 692 1919 58 40 51 41 57 44 44 48 48 49 58 49 587 1920 Liabilities 327,743 697,775 553,082 352,946 2,544,273 975,973 921,988 1,347,045 1,348,681 1,933,886 1,113,724 2,210,441 14,327,557 1919 1,103,950 845,343 1,170,267 653,738 1,481,366 597,244 247,384 321,764 1,559,307 763,728 4,071,586 513,580 13,329,257 Decrease Increase or Decrease — 7 70,207 — 147,568 — 617,185 — 300,792 1,062,907 378,729 674,604 1,025,281 — 210,626 1,170,158 —2,957,862 1,696,861 998,300 Per cent of Increase or Decrease — 70.3 — 17.4 —52.7 —46.0 71.8 63.4 272.7 318.6 —13.5 153.2 —72.6 330.4 7.5 THE MONT HL Y B U S I N E S S R E V I E W 11 PICKUPS ON BUSINESS TOPICS NEW COMPANY, known as the International Com THE opinion of Americans abroad, the high prices in Holland and other European countries for Ameri merce Corporation of Mexico, has been formed in the I Ncharged can automobiles and other commodities are exerting a very A Republic, according to a report received January 6. It has bad effect on the foreign exports of the United States. It purchased from an American manufacturing concern 500 is understood that ’Consul General Anderson has made the matter the subject of an official report to the State Depart ment. Automobiles selling at retail in the United States for perhaps $5,000 are shipped to Holland at a freight cost hardly ever exceeding $200 and then are sold there for the equivalent of about $7,000, even when the low value of the Dutch exchange is considered. The import duty is only 5 per cent. This exacting of profits, officials say, is certain to work against sales of American automobiles in the future. The same holds true with American canned goods, tobacco, etc. Beginning January 10, the G. & O. will inaugurate refrigera tor car service from Cincinnati to Huntington and Charleston, W. Ya. These cars will afford protection for perishable freight, such as fruits and vegetables, during the cold season, and will be operated every Monday and Wednesday, making afternoon delivery in Huntington and second morning deliv ery in Charleston. As soon as business warrants this same class of service will be provided for shipments to points on the Big Sandy Division, of the C. & O. American equipment will be in demand for the construction of the proposed $1,000,000 pier in the Havana Harbor, a large steel warehouse in Antilla, another for the storage and manu facture of flour and prepared foods, a large brewery and ice plant, and a $1,000,000 bottling plant, in Havana. A New York firm of engineers is in charge of the last named project. Of the 145,000,000 bushels of wheat raised in Kansas in 1920, farmers still have 77,500,000 bushels, or 54.4 per cent of the crop, according to a report by the secretary of the State Board of Agriculture. At about the same date last year 35.1 per cent., or 50,000,000 bushels, was in the possession of pro ducers, and two years ago, 11 per cent., or 10,0000,000 bushels, was reported as held by growers. Spain is an important market for American electrical goods, but possibilities for future development are of far greater interest to American electrical goods manufacturers than the present demand, according to a special report entitled “ Electrical Goods in Spain," just published by the Bureau of Foreign and Domestic Commerce of the Department of Commerce. The Federal Trade Commission advocates the establishment of central markets for perishable food products in all large cities, and the setting up of a Federal licensing system appli cable to all dealers in such food products. Federal action, it declares, is necessary to obtain effective regulation and to avoid unfair and wasteful practices with their consequent effect on prices. The total value of automobiles and accessories exported from the United States in the calendar year 1920 approxi mated, says a statement by the National City Bank of New York, $365,000,000. Italy has actually completed electrification of 105 kilo meters of her railroads. This work is being pushed to the limit because of Italy's entire lack of coal, and her need for saving this tremendous expense. Caproni has recently reported to the King of Italy details of his projected giant airplane. This machine will carry three hundred persons across the Atlantic in about thirtysix hours. Secretary Daniels has recommended the building of SS new war ships in case the United States does not enter some kind of a league of nations. trucks, one of the largest sales closed in this line. The new company does not .limit its operations to the purchase and sale of automobiles, although this is the chief part of its business already established. It hopes to develop a general organization, for the purpose of representing foreign and domestic manufacturers for sales in Mexico and South America, according to the report. Heavy shipments of American dyes are being returned by Japanese importers and at the same time shipments of German made dyes and chemicals are being sent through New York in bond en route to Pacific Coast ports for trans port to the Orient. The American dyes returned from Japan are all marked “ no sale." The terms offered by the German manufacturers in their effort to regain the Japanese market are such as work to the decided disadvantage of American exporters. The Interstate Commerce Commission has approved an order requiring the payment in United States money and pre payment of charges on shipments between Canada and the United States. The effect of the action wrould be to require shippers to repay in American money charges for interstate transportation wholly within the United States. American railroads would thus be protected against loss by reason of depreciation in Canadian money. The War Finance Corporation, since January 5, has been prepared to consider applications for loans to assist in the exportation of domestic products to foreign countries. The applications for loans should set forth all facts relating to the financial condition of the applicants, the purposes of the proposed advances, and other information which will enable the Corporation to determine whether the applicants are eligible under the law and can meet its terms and conditions. The American Foreign Banking Corporation announces that it will open a branch in Mexico City, Mexico, on January 17. This is the first American bank under the supervision of the Federal Reserve Board to open in Mexico, and it will be prepared to handle all collections on that country, and give information on credits and other matters of financial interest to Americans. A report just issued covers practically all phases of Para guayan commercial and industrial life and development. It is known as Special Agent Series No. 199—“ Paraguay—A Commercial Handbook." Copies may be purchased for 40 cents from the Superintendent of Documents, Government Printing Office, Washington. The United States now supplies the bulk of the Argentine demand for chemicals, such as calcium carbide, bleaching powder, glycerine, sulphates and practically all glucose and epsom salts, trade in which formerly was practically monopo lized by Germany. iiimiiMimiiiMtniiiMiniHimtH The Dayton Chamber of Commerce announces that effective Tuesday, January 18, a local sleeper wTill be established on the Big Four between Dayton and Cleveland. Fifty-one per cent of the United States' exports in the ten months ending wTith October, 1920, were manufactured goods. All winds blowT in the direction of foreign trade. The British embargo against the importation of yeast has been removed, according to a cablegram received January 14.
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