Full text of Economic Review (Federal Reserve Bank of Cleveland) : February 1922, Vol. 4, No. 2

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The Monthly

BUSINESS REVIEW
CS)Mir^business andmdHsti^oandiiicms in

Asserts

FEDERALD.C.Wills, Chairman of of Board
RESERVE BANK the CLEVELAND
(COMPILED JANUARY 20.1922)

VOL. 4

CLEVELAND. OHIO. FEBRUARY 1. 1922

USINESS has laid aside its finer raiment and
is now wearing its plain, everyday working
clothes, which are more serviceable and just
about as comfortable.
Quite frequently in the past we have stated that
business is gradually regaining its health, and that
improvement is steady, though slow. In reiterating
the assertion, we acknowledge that it is still neces­
sary, however, that a measuring stick with some
pretty fine marks is required to determine the
improvement in some directions.
The road over which business had to travel in
1921 was not a smooth one. Many of the difficulties
have been carried over into the present year, but
recently industry is showing a tendency to cease
brooding over the past and is finding more courage
in considering the present and the future wjtli the
purpose of moving ahead. The outlook for .1922 is
one of hopefulness for a slow but genuine recovery
until the place is reached that like to call normal.
The eye of the alert public is discovering those
industries that have been adjusted to meet present

B

No.2

conditions, and, as this same kind of feeling is devel­
oped in respect to all business, the time of the read­
justment period will be shortened.
Foreign trade as a safety valve for production is
absolutely essential for future prosperity, and with­
out minimizing the importance of foreign trade as
affecting the industrial and financial well-being in
this country, there are plenty of opportunities for
business and finance in caring for the needs of the
110,000,000 people in this country. Instead, there­
fore, of assuming that the developments here must
wait for developments elsewhere, business men are
finding a response, however feeble, to their efforts
toward reviving domestic trade.
World business is closely competitive, and to
engage in it will require business organizations
keyed to compete.
Business men intending to engage in foreign trade
find in their efforts to stimulate domestic trade that
they are in reality fitting their organizations to
handle foreign trade in their respective lines.

Textile Industry Faces Difficulties; Advance in Price of Raw Wool;
January Sales Liquidate Stocks

The textile business is in a peculiar position at
present as several new factors have entered this
field during the last few weeks. Since the first of
September, raw wool has advanced in price nearly
40 per cent. It has also been decided among the
large textile organizations of the country not to re­
duce any wages for the time being.
In the face of these facts the wholesale clothier
is wanting lower prices for next fall—which market
will open shortly—than he paid for goods in the
spring. The result is that at present a considerable
amount of textile machinery in the country is idle.
Knitting yarns have also advanced in price,
although in this particular branch of the industry
the condition of the knitting trade would indicate
a very satisfactory situation. Jobbing and retail
stocks are very low and substantial business is being
anticipated.
The price of silks has advanced within the last
few weeks.

Opening of fall lines for the men’s wear trade
has been delayed due, no doubt, to the uncertainty in
the minds of the mill executives with reference to
the establishment of prices.
The men’s clothing trade generally does not
show the activity for spring that the early outlook
for the fall season just passed had led it to antici­
pate. January sales are, no doubt, liquidating re­
tail stocks, and manufacturers quite generally are
hopeful that whatever business has been lacking in
advance orders, will be offset by substantial addi­
tions through late buying when the retail season
opens.
While occasional reactions are expected, tex­
tile men in close touch with the situation feel that
1922 should show some improvement over 1921. A
very rapid increase in the volume of business is not
wished for but rather a steady increase, accompanied
by a stabilized price market showing a gradual low­
ering of such prices as are still above a reasonable
level.

ON PAGE 9 APPEARS THE SECOND OF A SERIES OF DEPARTMENTAL ARTICLES OF OUR BANE




THE M O N T H L Y B U S I N E S S R E V I E W

2

Loans to City and Country Banks Decline;
Acceptance Market For 1921 Shows Improvement Over Previous Year
From December 20, 1921, up to January 20, 1922,
there has been a gradual decline in the demand for
accommodations both from city and country banks.
The decrease in city bank borrowings has been
especially noticeable since the first of the year. It
would appear that part of the funds borrowed for
the payment of taxes have completed the circle and
are again finding their way back to the banks. This
is also true of money borrowed for holiday trade,
although it is still too early to feel much of a reflex
from this source. The number of borrowing city
banks has shown little change.
While there has been very little liquidation of
credits in the agricultural districts as the result of
crop selling, the volume of loans to country banks,
during the month ended January 20, were somewhat
lower than for the previous month. However, the
number of banks borrowing continues much above
the average and in the past month a considerable
number have been added to the list. As is the case
in the city banks, the return of tax money is partially
responsible for the decrease in the volume of loans.
The combined ratio of total reserves to deposit
and Federal Reserve note liabilities of this bank for
the month ended January 18, has fluctuated to some
extent, but the trend has been upward. The same
is true of the reserve ratio of the Federal Reserve
System.
On December 14, 1921, the reserve ratio of the
System stood at 72.6 per cent- On December 21 it
dropped to 70.7 per cent but advanced again to 75.1
per cent on January 20. On the fourteenth of last
month the reserve ratio of this bank was 71.9 per
cent, on the twenty-first it was 68.8 per cent and on
January 18, 74.6 per cent. From these figures it is
apparent that the improvement in the reserve ratio
of the Cleveland Federal Reserve Bank is in harmony
with that of the System as a whole.
The combined reports of nineteen large savings
banks and trust companies in the Fourth Federal
Reserve District show a decline in total time de­
posits of 4.6 per cent compared with the same period
for 1920. This is a heavier decrease than the pre­
vious month when the total drop as compared with
November, 1920, amounted to 3.4 per cent. A de­
cline of .6 per cent from November, 1921, to De­
cember, 1921, shows little change as compared with
the previous month’s decrease of .4 per cent.
Bankers’ acceptances bought by the Federal Re­
serve Bank of Cleveland in December amount to
$5,236,707, and the maturing and paid, $2,760,921.
Eight banks in the Fourth District^ reported accept­
ances executed for customers during December to
the amount of $1,764,205, and acceptances paid for
the same period $2,870,860.
The acceptance market for the month ending Jan­
uary 15, was very irregular in activity and rates.
The opening weeks brought few bills into the market
and little demand was evidenced from any source.



The rates for prime bills remained constant at 4 8-8
bid and 4 1-4 offered. Call money during the time
rangd from 6 per cent to 4 1-2 per cent ruling at
about 5 per cent.
When the new year opened and call money went
to 3 1-2 per cent, the lowest since July 28, 1921, the
rates on bankers’ acceptances followed downward
and were quoted during the first week of the new
year at 4 1-4 per cent bid and 4 1-8 per cent offered.
During the last week of the month there was a fur­
ther decline to the lowest rate that bankers’ ac­
ceptances have sold at in over two years. Bid 4 per
cent, offered at 3 7-8 per cent.
With the decline in rate, the demand increased
from all sources and many additional bills from the
customary regular supply were thrown into the open
market. These offerings were readily absorbed, and
the brokers’ portfolios became limited. The greater
part of the offerings were domestic bills.
Foreign export bills still continued to increase.
There was a slight improvement in the supply of
bills drawn against imports, which can be attributed
to the slight strengthening of foreign exchange rates.
During the past year, taken as a whole, the ac­
ceptance market showed a general improvement in
this District over the previous year of 1920. The
first six months of the year were very active. Manv
banks throughout the District have shown their in.
terest by entering the acceptance field and are apl
parently favorably impressed with this class of busi­
ness. The demand for this form of paper has con­
tinually broadened and individuals, as well as cor­
porations and banks, have entered the market when
in funds. During the latter period of the past year
the market was directly influenced by dull business
and the falling off of foreign trade.
The range of rates for the past year for prime
eligible bills is as follows:
SATES FOB THE PAST YEAB
Prime eligible bills

Bid

High Low
Under 30 days.............. ............ 6K - m
30 to 60 days.............. ............ s Vk- W
60 to 90 days.............. ............ 6»S-3 H
*90 to 120 days.............. ............ 6%— 3%
*120 to 180 days.............. ..............6 %—4
Maturities

Offered
High Low

6H—3?*

Otari,.
Bid

6?4—3?*
6^2— 3Z
4
•J4-3K

BATES POE THE PAST MONTH
Prime eligible htiia
Under
30 to
60 to
00 to
120 to

30 days......................... .4 %—3 J^
60 days...........................
00 dsys..........................
120 days......................... .4 * f 180 days......................... ..4V£— 4

W r-V /t
SJ'fc
3J4

41. '__ 33 ^

4?i—3*i
4 ^1—3^4
—

4*<f—3?*'
4 ^ —3 *$

4
4
4
4

♦Foreign bills ineligible for rediscount prior to May 6 , 192|*

THE MO N T H L Y B U S I N E S S B E V I B W

3

More Favorable Appearance in Iron and Steel Industry;
Miscellaneous Business Helps; Renewed Interest in Larger Projects
Following the cessation of activities at the holi­
days, which was somewhat more pronounecd this
year than usual, market conditions in iron and steel
in the new year, by contrast, make a more favorable
appearance. The volume of business is slightly
larger since some sizable negotiations which had
been held up for several weeks have been re­
leased and there is some disposition on the part of
buyers to figure definitely on their future require­
ments. At the same time the miscellaneous flow of
business, which has been the mainstay of the recent
market, is being maintained- Emphasis needs to be
laid on the modest character of the market revival;
in fact the best that producers are hoping for is a
slow and gradual expansion of business. Steelworks
operations at the beginning of the year were down
to 40 to 45 per cent of ingot production. This rate
is expected to be somewhat larger February 1, and
the general belief and hope is that a gradual growth
of output will be sustained from that time forward.
Tin plate and tubular goods are making the best
showing of all the steel lines at the present time.
Railway equipment buying is more promising and
some important orders of this kind have been dis­
tributed in recent weeks, while others are in early
prospect. About 500,000 tons of rails have been
placed for 1922 delivery with as much more business
definitely in sight before the mills.
One encouraging feature of the situation is the
appearance in the market of major projects as far
as tonnage goes, the time of execution of which
would run many months ahead. Some of these
represent revivals of plans originally brought forth
a year or so ago, but put aside in the conviction that
conditions were unfavorable for their being earned
through. Accordingly the offering of this work at
this time suggests that the prospective investors are
reaching the point of satisfaction with the liquida­
tion of steel prices and other cost factors and are
more disposed to seriously midertake these enter­
prises.

Inclusion of some speculative projects in this list
further points to returning confidence. Among the
propositions again coming to the front are plans for
large building, railway equipment, vessels, etc., all
of which entail heavy outlays of capital for invest*
ment purposes. One source of special satisfaction
is the renewal of definite figuring on new construc­
tion by lake shipyards. After a practical blank in
this respect for about two years, contracts for one
large freighter have been closed and two ore carriers
are actively under negotiation. Some smaller craft
have been let and there is talk of other new con­
struction in sight* How much the country can stand
a stimulation of building activity is illustrated by
the fact that total lettings of structural steel in 1921
represent about 35 per cent of shop capacity. The
December figure just announced was on the basis
of 40 per cent of capacity. Some enlargement of
this latter figure in January is expected.
Iron and steel prices while not firm, generally show
relatively little yielding from their recent levels
which are below cost for many producers. Conces­
sions at this time largely are of the character of
dividing advantages of locations with the buyer. The
composite market average of The Iron Trade Review
covering fourteen iron and steel products tends to
reflect the shaken down condition of prices. This
average for the week of January 18, was $33.36, com­
pared with $33.54 one week previously, $33.64 two
weeks previously, and $33.99 for all December. The
comparative figure in January, 1913, was $27.96.
Steel production in December showed some falling
off from the November rate, due to the widespread
cessation of operations at the holidays. Ingot out­
put in December was at the rate of approximately
20,270,000 tons annually, compared with the annual
rate of 23,580,000 tons in November. Pig iron out­
put however in December continued to gain slightly.
The final month’s output according to the The Iron
Trade Review was 1,642,775 tons. An average daily
rate of 52,999 tons in December compared with an
average daily rate of 47,165 tons in November* Fur­
naces in blast at the end of the year were 124, a
gain of 4 over the corresponding date in November.

Steady Improvement Expected in 1922 Shipping Season;
Coal Movement Slow; Grain Stocks Heavy
The outlook is a little brighter than it was at the
close of the shipping season, and while a steady im­
provement is looked for, the general opinion is that
the start will be slow and that there will not be em­
ployment for all the bulk freighters during the early
part of 1922* There has been quite a let-up in the
ore movement from Lake Brie docks to the interior
furnaces since January 1, when the rail rates were
advanced and the furnace men are only taking for­



ward ore that is needed for mixtures. The shippers
do not look for much change in the situation until the
rail carrying charges are reduced and the movement
will be light during the winter. Stocks of ore at this
end of the route are about 3,000,000 tons smaller
than they were a year ago, as the Lake Erie docks
early in January were holding about 1,500,000 tons
less, and a similar cut was made in the ore in store
at the furnace yards.

THE MONTHLY B U S I N E S S REVI EW

4

It will probably be some time before prices,
handling charges and freight rates are taken up, but
a cut all along the lines is looked for. Six furnaces
were added to the active list in December, which is
quite a change from a year ago, when stacks were
being blown out at a pretty fast clip. That the ore
requirements will be greater than they were last
season is certain, but the men in the trade will not
make a guess on what the movement will beCoal is going forward slowly from the upper lake
docks and unless there is some improvement along
that line, considerable coal will be carried over at
the opening of the shipping season. Some of the
boats that took late cargoes to Lake Michigan ports
have not been unloaded, owing to the crowded con­
dition of the docks- Stocks of grain at the Lake

Superior ports are heavier than they were a year
ago and the indications are that all the elevator
room at Duluth, Fort William and Port Arthur, will
be taken before the boats are ready to move. This
means there will be a good demand for early loading
tonnage. There is very little storage vessel capacity
available at the head of the lakes.
Some figuring has been done for new boats but
up to date only one order for 1922 delivery has been
booked. A large steamship company of Toronto,
closed a contract for a 10,000 ton steamer to come
out next September. The big storm on December
18, which forced 22 steamers on the beach at Buffalo,
made considerable repair work for the yards at the
Lake Erie Ports. A dozen freighters that were dam­
aged in the storm were shifted and sent to Ohio ports
for repairs.

Fourth District Manufacturers Feel Effects of Slack Holiday Periodj
Interest of Automobile Buyers Centered on Auto Shows
The results of a somewhat slack period preced­
ing and during the holiday season are being ex­
perienced by Fourth District manufacturers. A
gradual recovery in several directions is reported but
trade for the most part does not show any great
amount of improvement. Near the end of the year
there was a sizable decrease in exports with imports
remaining comparatively heavy. Manufacturers
quite generally are optimistic as to the outlook for
a gradual improvement in business.
The automobile trade is sensitive to rumors at
the present time as they relate to prices, and this is
causing some hesitation on the part of buyers- For
the most part, however, the public apparently be­
lieves that automobile prices have about reached the
bottom. Sales are reported to be improving especi­
ally in the eastern states.
In the purchase of cars buyers are looking for
lasting value, endurance and reliability. Low oper­
ating cost and high tire mileage are also important
factors. Some orders for sheets have come in to the
iron and steel trade as a result of the resumption in
automobile production.
The situation in the motor truck industry is
about the same as it has been for several months past.
There is apparently very little new bumness in sight.
A large truck manufacturer in this District reports
that 80 per cent of the sales that are made are to
owners who have old equipment to trade in. There
is little demand for second-hand trucks. This refers
to motor trucks of the heavier type and does not in­
clude the j4-ton and light 1-ton speed wagon. No
increase in the demand for new motor trucks is
expected until general business revives to such an
extent that increased equipment will be required.
At this season of the year interest in the auto­
mobile trade is centered on the shows and there is a
tendency on the part of buyers to await develop­



ments. This affects the automobile body manufac­
turer. A large supply of second-hand cars on the
market is one of the big problems facing the industry.
Conditions in the automobile axle manufacturing
business have not changed much since last month
when orders were reported as picking up.
The storage battery business has already felt
some good effects from the New York Automobile
Show and car manufacturers are increasing their
specifications daily.
December business in the tool manufacturing
line was lower than in November and is reported
as being the smallest of any month in 1921. Many
dealers and large users of tools are busy taking iti
ventories, and do not place orders of any size just
preceding this period.
The paint business has shown a very noticeable
improvement since the holidays. Large and ^ eii
assorted stock orders from the trade are reported
and big gains, based on actual orders, are anticipated
for the next six weeks.
A manufacturer of white lead reports that tho
volume of business for last month as compared \tritfc
December, 1920, shows a very marked improvement
Since the first of the year orders are increasing
volume. Collections are good.
In the printing and lithographic ink business
improvement over conditions a month ago is seen
Orders in the tin can industry are reported
be growing, indicating that the stock taking peri«j
has passed and customers are continuing to ord
The volume of these orders are very satisfactory f '
this period of the year.
or
The cork trade is very dull and December
reported as being the poorest month for eight
There is a fairly good demand for corkboard for ^
sulating, and the prospects are that it will eo nti«£
for the next three or four months.
mue

THE MONTHLY B U S I N E S S R E V I E W

Plate glass shipments during December were
somewhat in excess of December, 1920. Window
glass sales are declining in volume, partly incident
to the season, and partly on account of greatly in­
creased importations and the uncertainty of the
tariff.
Orders being written for spring in the farm
machinery line show some slight improvement, but
no substantial volume of business is expected for the
first half of 1922*
No particular change is seen in the hardware
business since the holidays. Customers apparently
are a little more hopeful for it is drawing near the
time when wagon implement manufacturers, tractor

5

makers, etc., usually start operations for spring de­
livery. There has been considerable liquidation of
stocks during the past year but in many cases inven­
tories are still large.
The pottery industry is reported to be running
strong. Orders are holding up well, although they
are not so numerous as they were a year or two ago.
Collections on the whole are rather slow. Prices are
getting closer to the cost of manufacture.
In the hardwood lumber business various in­
dustries are coming into the market with a renewed
interest. Saw mills that have been shut down from
six to eight months are starting up again. Since the
first of the year there has been quite an improvement
in inquiries and purchases.

Oil Industry Affected by Cut in Crude Prices;
Refineries Running Slow
The year-end dullness of trading in refined pro­
ducts, which is seasonal every year, was accentuated
somewhat as 1921 ended by the general industrial
depression.
The industry, however, generally looks forward
to 1922 as a year which on the whole will show a
gradual rather than an immediate marked improve­
ment.
There were many in the oil industry who con­
tended that the posted prices of crude prevailing
were higher than were justified by the market for
refined products. These found their notions to some
degree vindicated when Pennsylvania crude was cut
25 cents a barrel January 3, bringing it to $3.75 a
barrel and was further cut on January 9 to $3.50 a
barrel.
General belief at that time was that the posted
prices of western crude would be likely to follow
the reduction in eastern grades. However, the sit­
uation in the Mid-Continent field was radically dif­
ferent from that in Pennsylvania, where supplies of
crude were piling up in the hands of the' purchas­
ing companies, and refiners were refusing to buy
crude except in very small amounts, because of the
difficulty in finding a possible market for their pro­
ductsHowever, there has been no reduction in the
posted prices of western crude to date, and the fact
that a large oil and refining company on January 14
advanced the posted price of crude from the new
Mexia field, 25 cents a barrel, seems to indicate a
firmer market on present figures.
It appears that the refiners, both eastern and
western, have made up their minds that three or four
hard months lie before them and have taken the only
course by which the situation could be remedied,
that is, either closing down their plants entirely or
reducing their run to the lowest possible minimum.
For a refinery to close down entirely usually
means the relinquishment of a contract for crude
and many refineries prefer running at a loss rather



than giving up their source of supply, because it is
difficult at times to obtain an assured supply when
wanted.
The closing down of refineries in the west which
has reduced the refinery capacity operating to about
40 per cent of normal, and a similar condition in the
east, is expected to make itself felt before long in
a reduction of the supply of refined products avail­
able. This should have a stabilizing influence on the
market.
The unsettled condition of the crude market has
led jobbers over the country to refrain from placing
large orders for gasoline for a summer business,
which means that buying is very slow at the refin­
eries.
Most of the jobbers have reduced their stocks
on hand to a pretty low point, and, it is believed, it
will be necessary for them to come into the market
within the next two or three months.
The fact that there is very little gasoline in stor­
age in the hands of the independent refiners, indi­
cates that when demand increases, the refineries will
gradually expand their operations to meet the
demand.
The general idea is that the demand for crude
oil during the spring and summer will be heavy, due
to the increasing demand for gasoline. It is taken
as a matter of course by oil companies generally,
that regardless of financial and industrial conditions,
the demand for gasoline each year will be greater
than that of the preceding year, although, of course,
the demand for fuel oil and to a large extent the
lubricating oils of various sorts depends mainly on
prosperity in industry.
National Petroleum News finds throughout the
industry a feeling of optimism, but it is optimism
tempered with caution and common sense. The oil
companies generally in all branches of the industry
are reducing their costs, cutting wages, lengthening
hours and adopting all the efficiency methods they
can work out to cut down their expenses and increase
their efficiency.

THE MONTHLY B U S I N E S S REVI EW

6

Upward Trend in Common Brick Industry; Outlook for Paving Brick Bright

For the past three months, reports from members of the Common Brick Manufacturers Association of America indicate an improved condition in
the market for common brick. The pick-up is slow
but it seems to be consistent. The Association is
informing its members that every indication points
to a very satisfactory year m 1922 Nogreat ru sh s
predicted in the market but it is felt that there wJl
be an mcreasing ratio of improvement as the months
go by and the budding season progresses.
The stocks on hand in the brick yards at the present time are smallshowing a desire tobelow normal.
Manufacturers are and considerably resume operations at the earliest date that the weather will permit At this time a vear airo t.W wer<» at a loss to
know whether or not they should make any brick
because the market was so uncertain, but the feeling
today is that there will be a fair demand with the
opening of the spring building operations.
One of the big factors in the present price of
common brick is the low and irregular production.
It is believed that with production reaching a point
nearer normal, prices will be slightly lower.
The National Paving Brick Manufacturers Association reports that shipments of vitrified paving
brick for 1921 in the Fourth District reached a total
of 100,000,000 brick, the high level attained in 1916,
which was the previous record year.
The year just past was the best year in the industry since 1916 in home markets. At distant
points, however, the following losses were recorded
by Fourth District manufacturers:

Market
Los* in number of bride
Michigan ......................................................... 9,250 000
Wisconsin......................................................... 1,000)000
Kentucky ......................................................... 2,750*000
4 000*000
New York..............................................
It is estimated b offieials o£ th National Pav. Brick Manufaetu' ers ^ ociation that a bimon
dollars wiU be t durin 1922 f
uJS
yin thr£ughout tlfe entire
Qf t S i
$75,000,000 will be*in the form of S r a 7 k i d t o
matched dollar for dollar by the individual stat«Z
Large amounts are available for municipal *
««
^_
. work
h
»
. . , Q99 . 8. shipments for
e , year „om 1914 to 1922 “wtaave for the entire
6ffCCt °f war'time restrictions can be
Year
Number of 1^
1<j14............................................................... 451,116,273
............................................................... 441,555,483
1917 .............................................................. 49s its’795
1918
‘
‘ .................. 235857,i i 1
1919 .....................
‘
' 325,413109
1920 ............................................................. 301,436)339
1921 ............................................................... 375,000,000
in the foregoing table, the noted improvement
in the industry following the loss due to war-time
restrictions, is caused by the recovery of the short
haul markets. The distant markets still are unavailable and are dependent upon freight rates. Normally about 100,000,000 brick are shipped to distant
points.

Winter Wheat Acreage
Shows Little Reduction ;
Farm Labor Cheaper; Burley Tobacco Sales Expected to Start Shortly

The condition of the winter wheat crop throughout the country is generally good and the crop has
entered the winter with no great amount of damage
from freezing. The acreage seeded to wheat in Ohio
last fall was practically the same as a year ago with
a slight reduction if anything, according to the report
of the Ohio Department of Agriculture.
In Ohio the average wage paid by farmers for
help by the month was $33 and board on December 1,
1921. The rate the previous year was $47 per month
which is a decline of 30 per cent. Day wages for
farm help have declined about 34 per cent- The
average paid for harvest hands was $2.70 during
1921, as compared with $4.11 in 1920. Last year the
average for day labor on the farm for other than
harvest work was $2.07 as compared with $3.19 during 1920. These figures are for labor where the
farmera furnishese board. was not furnished are naturx
W g e s w h e r board
ally somewhat higher and show about the same dedine over last year as do the rates with board. The
monthly rate without board was $48 in 1921 and $66
the previous year*
.
There is no particular activity reported in the
Burley Tobacco district. Sales of tobacco which



have not been signed up by the Growers’ Co-op©
tive Association, and which started about a month
ago, have continued. Three houses are holding saW
in Lexington and sales are being held at four or fl
other points in the Burley district
Th Dri h averamwl ,natariaii„ u- .
, 1QOn . ‘
. vera8td materially higher
ian
sa es- le ssociation has just been in.
eorporated under a new co-operative law which ^ a s
rushed through the Legislature, and expects to open
UP selling season in a short time. A system of
grading has been decided upon and graders have
been selected. Arrangements have been made to
take over the loose leaf warehouses for use during
the sales- The growers are very anxious for th
sales to begin as they have been accustomed to staJ*
selling considerably earlier in the season.
As tobacco is agricultural orosneritv , ? foftfcf
the important cash croD Tr
,
iw *
®
®*ate is
measured largely by the price which it brings. i t
18 estimated that the present price is about twice the
average price of the period immediately preceding
the war and that tobacco is one of the best Pftyi^p
crops grown in the country this year.
*

THE MO N T H L Y B U S I N E S S R E V I E W

7

Soft Coal Production Continues at Low Ebb;
Stocks Low; England Re-enters Shipping Field
Production of soft coal which dropped sharply
during the holiday season showed an appreciable re­
covery in the first week of 1922.. The extent of the
drop is seen in the estimated production figures of the
United States Geological Survey. During Christmas
week total production amounted to only 5,996,000
net tons as compared to the previous week’s pro­
duction of 7,468,000 net tons.
The year 1921 was a feeble one for the coal in­
dustry. To match the 407,000,000 (estimated) tons
of soft coal produced, one must go back 10 years.
But this tonnage comparison is not enough, for it
ignores the normal increase from year to year. To
match the completeness of the depression one must
go back to a much earlier day.
Anthracite alone stands an exception to this
statement. Until late November the hard coal mines
continued in active operation and the total output
for 1921 was not far behind the two years just pre­
ceding.

At present there is quite a heavy drain on re­
serve stocks of coal in the hands of industries and
dealers. Stocks held by dealers and large consumers,
exclusive of household stocks and coal in transit on
December 1, were estimated to be about 25 per cent
below the maximum reserve built up by the fuel ad­
ministration as reported on Armistice Day (Novem­
ber 11, 1918).
The policy of hand-to-mouth buying is still very
much in evidence. It is not an unusual occurrence
for buyers to request the tracing of coal shipments,
stating they are about out of coal.
Before the war the United States did a large
export business with Canada, but during the past
year this trade has dropped off rapidly. Shipments
of British coal abroad have increased greatly. Since
the adjustment of the coal dispute in that country
which was at its peak last May, England is rapidly
regaining her former prestige in the coal shipping
field.

Seasonal Fluctuation Felt in Paper Industry; Good Prospects for Advertising
The paper industry has shown little change
since last month's report. Business in this line is still
showing a tendency to fall off following the usual
seasonal fluctuation. Prices have been inclined to
stiffen a little on a cost basis following the upward
trend of some raw materials. It is expected that
there will not be any large amount of business avail­
able until March, although it appears likely that the
latter part of January will be better than the month
preceding.
Paper dealers are showing a tendency to stock
up. A Fourth District paper manufacturer reports
many small orders for shipment by express, indi­
cating that some paper jobbers do not have the stock
on hand from which to fill even the smallest orders.

Colored paper used for advertising purposes,
catalogues, price lists, descriptive pamphlets, etc.,
is in better demand and reports are to the effect that
manufacturers of automobiles, furniture, piano and
musical instruments, and also in other lines, will
have a lot of this kind of advertising to do. Artists
and designers report that they are very busy on wT
ork
to be gotten out for the coming spring. The writing
paper end of the business is picking up rapidly.
There is still some foreign competition in news­
print but the fact that the quality of imported ma­
terial is not up to American standards, and that de­
liveries are very uncertain, is rapidly swinging busi­
ness in the direction of American and Canadian
firms.

Volume of December Traffic Shows Usual Drop;
Number of Idle Cars Continues to Increase
As is quite usual in December of any year, there
was a considerable reduction in the volume of traffic
moved as compared with October and November.
This is best evidenced by the situation in regard to
car supply. On December 31 there was a total of
470,516 serviceable cars idle throughout the country,
this being the highest figure for some months past.
On October 31 there was a total of 80,203 idle ser­
viceable freight cars in the country and on Novem­
ber 30 the number had increased to 282,926.
There has been a gradual reduction in the num­
ber of cars awaiting repair. On December 15 there



were 308,556 of such cars or 13.5 per cent of the
total, as compared with 333,616 on the fifteenth of
the previous month or 14.4 per cent of the total.
On the whole, railroad service is satisfactory
and according to reports there are few complaints
as to delays in transit.
Records compiled by the Interstate Commerce
Commission indicate that more miles of railroads are
being abandoned than are being built. The Com­
mission during the year ended October 31, 1921,
authorized 405 miles of new construction and 702
miles of abandonment.

THE MO N T H L Y B U S I N E S S R E V I E W

8

Rubber Industry Swinging Into Line;
Raw Material Prices Firmer; Orders for New Equipment
There are many indications of prosperity in the
rubber industry today that were lacking in January
1921. Manufacturers, dealers and equipment men
are looking forward to increasing activity. Many
buyers are taking on new and larger stocks for
spring business and orders now being booked for
February and March are on a satisfactory basis.
This increase in business has caused manufactur­
ers to take on some additional help and to lengthen
the working periods in order to meet the heavier
production demands. Business in tires, mechanical
goods and footwear is improving. A reduction of
eight per cent in footwear prices has been announced.
Stocks are low and orders are expected in larger
volume.
Last year at this time there was an over supply
of tires. Now inventories are low and manufac­
turers are swinging organizations back into line. The
worst year of the rubber industry, a year which has
witnessed much liquidation has passed-

Evidence of greater stability is seen in the raw
material end of the business and it is thought that
the bottom has been reached in this direction. This
is also conducive to more buying.
Competition among manufacturers is growing
Rivalry for business on a profitable basis is the pre­
ferable kind of competition.
Under normal conditions the railroads are heavv
buyers of mechanical rubber goods and a greater
activity of the roads means much to mechanical
rubber goods manufacturers. Already there is a
better tone in this part of the industry.
Equipment manufacturers report that the smal­
ler rubber companies are coming into the market
for new equipment. Some of the larger companies
are also showing some interest in this line.
The recent reduction of tire prices by lar*e
manufacturers is reported by smaller companies as
having a bad effect on their trade and has led job­
bers and dealers to expect another reduction.

Business in Canning Industry Picking Up;
Stocks of Canned Goods Light; Food Products Business Good
In the canning industry conditions are better
than last month and a marked improvement has been
shown since the first of the year. Wholesale gro­
cers are beginning to realize that stocks of canned
fruits and vegetables are light and that it is quite
a long time until the next packing season. Recent
statistics show that there has been a very heavy
reduction in the number of eases of tomatoes packed
in 1921 as against the number packed in 1920. The
result is that the price has advanced considerably
since the first of the year. Nearly all the standard
grade of peas has gone out of the hands of the
packers.
The normal consumption of canned corn is about
1,000,000 cases per month. Statistics show that
there are only approximately 3,500,000 cases of can­

ned corn in packers’ hands, to last until the next
corn packing season which is in September.
The past year has been a hard one for canners
but they are forgetting the troubles of the past and
are turning hopefully to the future. A year ajro
there was a heavy surplus of canned goods and manv
debts, and the industry in general was in a tieht
place. In marked contrast today, the canner verv
largely has been able to take care of his indebted
ness, and instead of big stocks of canned goods the
stocks carried by the canner are exceptionally light
The food products business has been very sat*
isfactory. Reports from a large number of salesmen
are optimistic. Stocks of goods in the stores ar*
light, the trade is buying freely and collections are
good.
c

Building Operations Show Little Change;
Evidence of Greater Activity in Home Building
Contemplated building operations throughout
the country fell off slightly during November. It
is estimated that total operations during the past
year were something like 65 per cent of normal. ^
The outlook for the present year seems to be im­
proving as the prospective building operations grad­
ually come to the surface.
As compared with last year the local situation
is decidedly better. The city of Cleveland and near­
ly all of the suburbs a year ago were showing about
the same volume of operations as for the correspond­
ing months in 1920. The last month of 1921, how­
ever, indicated a marked increase for the suburbs



and this ratio is keeping up with the start of the
new year. In some cases the volume is more than
double both in number of permits issued and thefa*
valuation.
This would seem to indicate a gradual return
to the home building attitude on the part of the
public. Up to the present time speculative building
has played a minor part in the recent building revival.
Elsewhere in this issue may be found a table
showing building operations in the Fourth Federal
Reserve District for the month of December.

THE MON THLY B U S I N E S S R E V I E W

9

The Story of The Discount and Credit Department
This is the second of a series of departmental articles of the Federal Reserve Bank of Cleveland, which we are
publishing with the thought offamiliarizing our member hanks and readers with the detail and volume of work
that passes through their Federal Reserve Bank. In this article we tell the story of what happens to paper
presented to us for rediscount, the proceeds of which go hack into the manufacturing and productive channels
of industry and agriculture.
In the early days of the Federal Reserve bank the
rediscount operations were very few, and all of the
work in this department was done by one man, who
spent his spare time in working out and setting up
a system for the department, designed to meet future
requirements. This was in 1914. In 1915 the depart­
ment required another employee; in 1916 four people
were required; in 1917, eight. The war then came
upon us, and this department gradually increased
until in 1920 it required twenty-three employees, in
addition to the two officers in charge.
Perhaps the clearest idea of the operations in this
department can be obtained by following the course
of paper through the department. When paper
arrives at the department, it is checked with the
applications and letters that accompany it, and nota­
tions are made of any special requests or informa­
tion regarding the paper or its proceeds. Investiga­
tion is made as to whether a resolution of the member
bank’s board of directors authorizing loans and
rediscounts is on file with us. The signatures on the
applications and the bank’s endorsement on the
paper are examined to make sure that they agree
with the signatures authorized by the resolution.
The paper next goes to the Credit Department,
where all information on file regarding the desira­
bility and eligibility of the paper is assembled. Cards
giving pertinent information regarding the borrow­
ings and condition of reserve accounts of the banks
presenting the paper are attached as well as slips
giving the amount of our present holdings of paper
of the makers and endorsers.
A committee of senior officers passes on the paper,
keeping in mind the following conditions:
Is the member bank maintaining its reserve
according to the law?
Is the member bank’s borrowings with us
abnormal? If so, why!
Has it been necessary to write the member
bank on either of these subjects?
Is it eligible under the Federal Reserve Act
and the Regulations of the Federal Reserve
Board?
Is there any question of classification of
paper between six months’ agricultural and live­
stock paper and ninety-day commercial paper?
Will rediscounting the paper presented bring
the line of any borrower above the amount the
Federal Reserve Act permits us to rediscount
for any one member bank?



Has the member bank furnished all of the
financial statements required by the regulations
of the Federal Reserve Board?
What is the distribution of credit to indus­
tries i Is credit to any particular industry
abnormally large? Does such a situation indi­
cate that special consideration should and can
be given?
Special cases requiring immediate decisions are
submitted to the Governor and Chairman of the
Board.
Paper that has been approved by this Committee
may be immediately rediscounted, but is subject to
the final approval of the Executive Committee. The
proceeds of all approved paper is credited to the
account of the offering member bank as of the date
of receipt at the Federal Reserve bank or its
branches.
When the approved paper is received by the Dis­
count Department, it is checked first for maturities,
which are refigured and verified, and then for inter­
est on any interest-bearing items. All through this
procedure a sharp scrutiny is kept for technical de­
fects that may have been overlooked. The discount
is then figured and noted on each item, and the pro­
ceeds of each application is computed and noted on
the application.
Large computing typewriters are used in schedul­
ing the paper and show sub-totals, totals and the
grand totals for the day. The typists write with one
operation the statement to be mailed to the member
bank, the credit for our bookkeeping department,
our discount register and the daily schedule to the
Federal Reserve Board. These schedules are prac­
tically a full description of the items, including our
rates, the amount of the discount and the rates
charged by the member bank on each item, and the
classification of the paper.
When the credit memorandum is received by the
bookkeeping department and the entry is made, the
proceeds are available in the member bank’s reserve
account. As fast as this scheduling is done, the
paper is handed to the liability-ledger clerks, who
make entries of the member bank’s liability, the
payer's liability and the endorser’s liability of each
item as well as the collateral if any, and the maturity
of the item. These liability ledgers are so complete
that we can ascertain at a glance the amount of any
one borrower's liability to us, whether as maker or
endorser, and for which member bank the paper was
rediscounted, the maturity date and whether or not
it is secured paper.

10

THE MONT HL Y B U S I N E S S R E V I E W

The paper is then re-sorted by maturity dates and
entered on the maturity register, with notations of
the member bank’s instructions regarding collection.
It is then endorsed to the Federal Reserve Agent and
pledged as collateral to Federal Reserve notes.
Thereafter it is held in joint custody by the Federal
Reserve Agent or his authorized representative, and
a representative of the bank.
The collateral clerks carefully cheek all col­
lateral received and again check it when it leaves
their hands, obtaining a receipt for it. If it is being
delivered to someone not connected with the Federal
Reserve Bank, they make sure that the loans secured
by the collateral have been paid and that the person
to whom the collateral is delivered is the proper
person to receive it.
With the maturity register as a guide, the collec­
tion division of the Discount Department sends out,
about ten days before the maturity of each member
bank’s collateral note, a notice calling attention of
the member bank to the maturing date. If the mem­
ber bank for whom paper has been rediscounted has
signified a desire to make collection of such items,
they are sent about ten days before their maturity
to the member bank for collection at maturity, in
which event the member bank acts as our collecting
agent. Items sent to a discounting bank for collec­
tion are charged to that bank at maturity.
If the member bank signifies in the application
for rediscount that it desires us to make collection
of items payable elsewhere than its own counter, we
forward such items for collection about ten days
prior to maturity. Paper that is payable in our own
District is sent direct to a member bank located in
the place of payment, unless there is no member bank
at such location, in which event the items are sent to
the bank that is nearest the place of payment, wheth­
er it be a member or non-member bank.
Items that are payable in any other District are
forwarded to the Federal Reserve bank of that Dis­
trict or the Federal Reserve bank’s branch nearest
the place of payment.
Federal Reserve banks make no collection charges
except when charges are made by the collecting
banks, in which instance such charges are passed on
to the discounting bank.
If any of the items which we have undertaken to
collect at maturity are not paid on the maturity
date, they are protested and charged to the member
bank, who, of course, is notified of the protest. The
collection division keeps a close check to make sure
that advices of payment or actual payment is
received on each item within a reasonable time.
When unpaid items are returned to us, they are
sent to the member bank for whom they were dis­
counted with a letter stating the facts regarding
non-payment.




If the Federal Reserve notes against which the
paper was pledged have not been withdrawn from
circulation when the paper is due or otherwise passes
out of the Federal Reserve Agent’s custody, other
paper or gold is substituted.
Under the Federal Reserve Act the Federal
Reserve banks are authorized, subject to the rulings
prescribed by the Federal Reserve Board to purchase
and sell in the open market bankers’ acceptances
arising out of the importation and exportation of
goods, the domestic shipment of goods or the storage
of readily marketable staples pending reasonably
immediate sale, and to purchase and sell United
States Government securities and certain classes of
municipal securities with a maturity not exceeding
six months. Our funds have been kept available for
meeting the demands of our member banks, conse­
quently our open market purchases have been con­
fined to bankers’ acceptances and United States Gov­
ernment securities. Bankers’ acceptances which we
purchase in the open market pass through a process
similar to that of rediscounted paper.
The commercial credit department is included in
the Discount Department, but is a complete depart­
ment in itself. It receives thousands of confidential
statements of various commercial and industrial
organizations, farmers, stock raisers and individuals
whose paper is presented to the Discount Depart­
ment, as well as statements of accepting banks whose
acceptances may be offered to us. When these state­
ments are received they are scrutinized for any
unusual features. If anything is found that war
rants mvestigation, this investigation is started
immediately m the manner that seems best through
one or more of the various channels at our service
These statements are then analyzed and a compara
tive analysis sheet showing the information received
each year and a ready reference card is made for
each name, except those of farmers, whose statements
are in simpler form.
On the face of the ready reference cards men
tioned above is recorded information from th* state
ments in condensed form. On the reverse side of
these cards pertinent credit information is noted
The filing of these statements, comparative analysis*
sheets, and ready reference cards requires a verv
complete filing system.
y
The following figures will give the reader sonie
idea of the year 1921: of the transactions handled
during the magnitude
u
Total discounts and loans on hand 12-31-20....$ 228 554 538 3ft
Total discounts and loans made during 1921.! 3 Z73 57&
Total discounts and loans paid during 19211 3^635 9 5 o W » «
Total discounts and loans on hand 12-31-21....
Short time loans to United States Government
during 1921 _______ _____________
345,000,000.00
United^Stetoa Government securities purchased

3,877,700.00

THE MO N T H L Y B U S I N E S S R E V I E W

A Story of The Textile Industry

The stupidity of the sheep in blindly following the
leader of the flock has made its “ silliness” prover­
bial. But shepherds say they know more than the
casual observer supposes. Regardless of its intelli­
gence, it is a decidedly useful animal and adds very
materially to the wealth of nations. About this
humble animal the textile industry centers. This
industry, which supplies the world with clothes
stands out as a sage among industries. Its history
reaches far into the past. The years with their
changing styles and customs apparently add to its
importance.
The textile industry in the Fourth District, while
comparatively small in so far as the actual manu­
facture of cloth is concerned, looks entirely different
when viewed from the angle of fiuished goods. In
the making of clothes for men and women, and
especially the latter, this District is one of the lead­
ers.
In the stories of various industries it is impossible
to enter very deeply into the details of the work.
Unless one happens to be in elose touch with the
work, the average run of detail work adds little
interest. Some lines of business include an almost
limitless amount, and this is certainly true of the
textile industry. In fact the manufacture of woolen
textiles is so complicated that after a trip through
the mills of a big woolen company where it is possi­
ble to turn out the finest grades of worsted cloth at
the rate of seventeen miles a day, one feels that
nothing less than volumes would properly describe it.
One of the really big surprises in store for the
visitor in a big woolen mill is the machinery. Row
after row, each machine forms a link in the long
chain of processes through which the wool fibers
must pass from the time the raw wool, just as it is
clipped from the sheep, enters the factory, until
under the magic touch of the near-human machines
the fine threads slowly grow into cloth. The finished
product may be a plain serviceable serge for the
business man’s suit, a fancy herringbone effect, per­
haps a fashionable worsted for milady's golf outfit,
or indeed just about anything that the ever-changing
styles of modern times may happen to call for. These
machines are the result of careful and patient study
for hundreds of years. They are so sensitive that a
single misplaced thread will stop an entire operation
until the mistake is corrected. Many of the ideas
have been brought from England, the home of the
textile industry. Ameriean inventions and im­
provements have aided considerably and make the
work convenient for the operators.
It is only natural for a manufacturer to feel that
his particular line of business presents more than the
average maze of problems and details. The textile
manufacturer certainly gets his share of them. The
ever-changing styles naturally bring more business,
but it is a real problem to meet and satisfy the
whims and fancies of the public. Not only must th»»
quality maintain a fixed standard, but new ideas in
coloring and textures, to harmonize with new styles,
are constantly in demand.



U

With the exception perhaps of inhabitants of a
few of the South Sea countries, we must have clothes
to wear. Dame Fashion steps in and plays a leading
part. She dictates that clothes, while really not
essential to life, are surely essential to be in style.
Other comforts are of secondary importance. The
textile industry, one of the first to recover from the
effects of post-war depression, has continued to move
along at a very fair rate of speed even in the face of
considerable unemployment. Not among the least
of the factors contributing to this stability is the
hunger for style, certainly a laudable one if not car­
ried to the extreme.
The industry of wool is one of the oldest in the
world. This refers to growth rather than to manu­
facture. Wool remained purely domestic in use for
ages before it entered the marketable field.
It is not known just at what time man began to
live a partially civilized life and call for a more
comfortable and presentable garment than his rude
sheepskin, but to find the date it would be necessary
to go back a long time prior to the history not only
of Greece and Rome but of Ancient Egypt itself.
Biblical records are full of allusions to sheep and
shepherds. The words of Job who lamented that his
days were “ swifter than a weaver's shuttle” show
that weaving is a very ancient branch of the wool
industry. Frequent allusion to people being clothed
in purple and fine linen proves that dyes were well
known at that early time. The quality of Egyptian
linen was remarkable. Even with all their experi­
ence and mechanical aids, our own textile manufac­
turers have not appreciably out-distanced in quality
the linen product of that ancient day.
The Romans are credited with having brought
the manufacture of wool to England. For a long
time England manufactured only enough woolen
goods for her own domestic needs. The remainder
was shipped to other countries, made into cloth and
then sent back to her. Finally a “ manufacture at
home" movement was started and this combined
with a system of apprenticeship to teach the trade
gave England her start.
No domesticated sheep were found in North
America by the early explorers. The wild Rocky
Mountain sheep has neither been successfully domes­
ticated nor crossed with the domestic sheep, so it is
safe to assume that practically every phase of the
textile industry originated outside of our own
country.
The Spanish merinos were introduced into the
United States during the first quarter of the nine­
teenth century and from these the American and
Delaine merinos have been developed. This breed
of sheep is the result of years of careful cross-breed­
ing and they are known the world over for the
amount and quality of wool they produce.
The majority of sheep in the United States is
raised 011 the farms and ranges of the west, Wyo­
ming, Montana, Washington, Utah, Idaho, Oregon
and California are among the leading states in the

THE MO N T H L Y B U S I N E S S R E V I E W

12

production of raw wool. Sheep raising, however, is
not confined to the west by any means. In 1914 Ohio
was ranked as a leading wool producing state.
It is very interesting to note in this connection that
textile manufacturers consider the grade of wool pro­
duced in south-eastern Ohio as superior to any other
on account of its strength and very fine texture. The
only drawback is that there is not enough of it to meet
the demand.
Foreign wool is very popular with American tex­
tile manufacturers, not so much because of its super­
ior quality, but because foreign wool growers are
careful to send clean wool to market. A natural
trait of the average American farmer is to do things
up in a hurry. When his wool clip is ready for
market he ties a string around it. The foreign wool
grower ties the neck and the tail of the fleece togeth­
er. The advantage of this system is that at the very
start of the manufacturing process no little pieces
of string are mixed with the wool fibers. It is prac­
tically impossible to remove all of them once they
are mixed with the fleece and since they will not take
the dye when the wool is being colored the finished
material is damaged. And not only this, but in the
careless handling of the fleece other foreign materials
become mixed with the fibers and are very detrimen­
tal to the product as a whole. Now these are only
little things, but bits of string, pieces of straw, etc.,
in the shipments of home grown wool is enough to
swing buyers in the direction of foreign markets
where they can get clean wool. American wool
growers whose product can be relied upon are assur­
ed of a readier market and better prices than those
whose wool clip is in poor condition when it reaches
the manufacturers.
Clipping the wool from the sheep is the first
process. There was a time in some parts of the world
when the wool was torn from the sheep without fur­
ther ceremony. This barbarous method, however,
has about passed into the discard and modem ma­
chines now do the work with no cruelty and more
speed. A farm hand using hand shears will have
done a good day’s work in clipping thirty sheep.
With the later machines and electrical power, one
man has been known to shear more than 300 animals
in the course of a nine hour day.
Wool calls for a good deal of preparation before it
can be made into cloth. First of all it must be sorted
The following is a list of woolen mills located in
Beckman Company, Cleveland, Ohio
Benjamin Hey Co., Cincinnati, Ohio
Bush Bug Manufacturing Company, Columbia, Ohio
Clermont Woolen Mills, New Richmond, Ohio
Cleveland Worsted Mills Company, Cleveland, Ohio
Cleveland Worsted Mills Company, Bavenna, Ohio
Cleveland Woolen Mills Company, Dresden, Ohio
Colonial Woolen Mills Company, Cleveland, Ohio
Columbus Bug Company, Columbus, Ohio
Conneaut Woolen Mills, Conneaut, Ohio
Covington Woolen Mills, Covington, Ohio
Dresden Woolen MiHs Company, Dresden, Ohio
International Waste & Textile Co., Columbus, Ohio
Kuenzel Mills Company, New Bremen, Ohio
Milford Woolen Mills, Milford Ohio
Minster Woolen Mfg. Company, Minster, Ohio
National Woolen Company, Cleveland, Ohio
Orr Felt & Blanket Co., Piqua, Ohio




and this process calls for great skill. How to be
able to tell at a glance the length and quality of
the wool fiber and just what sort of wool is best
fitted for a particular purpose requires long training
and experience. Australia and a few other countries
have a system of classing the wool before it is ship­
ped which greatly simplifies the work of the sorter.
After the sorting and grading process the wool is
thoroughly washed in a warm alkaline bath. This
removes the impurities and natural grease. Later on
this grease is saved and manufactured into a soothing
medicine. After the wool has been dried and the
fibers straightened and again oiled by passage
through a grilling machine it enters the combing
machines. Here it is divided into two parts, “ top”
and “ noil.” The former is the long wool used by the
worsted spinner. The noil or short wool is used for
making felting, blankets, tweeds, etc. In the manu­
facture of the last named materials which are known
as woolens, the noil or short wool is sent through a
carding machine and the fibers are separated verv
minutely.
Spinning comes next and the long wool fibers are
twisted into strands of yarn suitable for weaving pur­
poses. The wool leaves the combs in long fleecv ropes
and it is necessary to reduce this to strong thread of
uniform size. This is done by gradually drawing
out the uneven coil until it becomes a series of thin
smooth threads.
’
Weaving is the process of making cloth bv means
of interlacing threads. To properly describe it would
make a story in itself. We will now stop in our
journey only long enough to watch the threads as
they are wound from the bobbins and under the
magic of the sharp-nosed shuttle rapidly change into
cloth.
The coloring of the goods completes the journey
In some instances the material is dyed before it is
woven into cloth, in others the coloring is the final
operation. Ravenna, Ohio, boasts of dye factories
unsurpassed in efficiency and the quality of their
products. Up-to-date machinery, and water from
the nearby lakes containing ingredients essential to
successful coloring are said to be chiefly responsible.
In later numbers of the Review it is planned to
publish further information along this line, including
markets, wool supply, reworked wool, the making of
clothes, etc.
the Fourth Federal Reserve District:
St. Marys Woolen Mfg. Co., St. Marys, Ohio
Shuler & Bennmghofen, Hamilton, Ohio
(Miami Woolen Mills)
Taylor-Lockwood Co., Cleveland, Ohio
Barkley Woolen & Knitting Mills. Somerset Pa
Eastern Woolen Mills Co., East BraUv Pa
Erie Woolen Mill*, Erie, Pa.
Fauber Woolen Mills, Spartansburg Ptt
Peter Graff & Company, Worthington,' I>a
(Buffalo Woolen Mills, Inc.)
P. McGraw Wool Co., Pittsburgh, Pa
Keystone Hair Insulator Co., Allegheny IS
Langville Woolen Mills, Langville Pa
Pearce Manufacturing Co., Latrobe’ Pa’
J. M. Schaeffer, Sandy Lake, P a/
(Sandy Lake Woolen Mill)
Bert J. Wilson, Chandlers Valley Pa
Phoenix Woolen Mills, Lexington,’K y’

13

THE MO N T H L Y B U S I N E S S R E V I E W

Clearings

December 10 to January 15
1020-21
1921-22

$24,922,000
Akron.....................................................
Canton...................................................
13,609,424
Cincinnati..............................................
240,128,801
Cleveland...............................................
358,855,022
Columbus...............................................
58,914,400
Erie........................................................
8,002,252
Greensburg.............................................
5,452,122
Lexington...............................................
6,934,247
Pittsburgh..............................................
537,035,414
Springfield..............................................
11,658,153
Toledo....................................................
53,794,000
Wheeling................................................
18,546,677
Youngstown...........................................
15,138,924
Total.......................................
$1,352,991,436
Dayton no longer publishes clearings figures.

$36,566,000
19,225,890
209,616,355
573,399,248
67,441,300
11,296,330
6,937,152
5,850,281
817,085,707
7,305,220
62,633,665
22,419,758
22,368,066
$1,862,144,972

Increase or
Decrease

—$11,644,000
—5,616,466
30,512,446
—214,544,226
—8,526,900
—3,294,078
—1,485,030
1,083,966
—280,050,293
4,352,933
—8,839,665
—3,873,081
—7,229,142
—$509,153,536

Per cent
Inc. or Dec.

—31.8
—29.2
14.6
—S7.4
12.6
—29.2
—21.4
18.5
—84.8
59.6
—14.1
—17.3
—32.S
—27.3
—

Debits to Individual Accounts
Akron..............
Cincinnati.......
Cleveland........
Columbus........
Dayton...........
Erie.................
Greensburg....
Lexington........
Oil City...........
Pittsburgh___
Springfield.......
Toledo.............
Wheeling.........
Youngstown.. .
Total.

Week Ending
Jan. 18, 1022
<270 Banks)

$12,463,000
65,464,000
119,693,000
27,921,000
11,905,000
5,479,000
4,086,000
4,734,000
2,627,000
146,317,000
3,700,000
33,368,000
6,680,000
8,347,000
$452,844,000

Week Ending
Jan. 10.1021
(261 Banks)

$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

Increase or
Decrease

—$1,284,000
—8,445,000
—39,857,000
—1,166,000
366,000
—1,280,000
—1,314,000
371,000
—1,323,000
—70,305,000
—347,000
5,426,000
—2,864,000
—6,970,000
—$128,992,000

Per Cent
Inc. or Dee.

—9.3
—11.4
—25.0
—4.0
3.2
—18.9
—24.3
• 8.5
—33.5
—32.5
—8.4
19.4
—80.0
—45.5
—22.2

Comparative Statement of Selected Member Banks in Fourth 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............................................................
IL S. Treasury Notes..........................................................
U. S. Certificates of Indebtedness......................................
Other Bonds, Stocks and Securities...................................
Total I/)ans, Discounts and Investments.........................
Reserve with Federal Reserve Bank.................................
Cash in Vault.......................................................................
Net Demand Deposits.........................................................
Time Deposits......................................................................
Government Deposi ts..........................................................
Total Resources at date of this report..............................



Jan. 11,
1922
(85 Banks)

Dec. 14,
1921
(85 Banks)

46,707
48,101
326,855 331,248
562,185 568,094
115,728 115,319
14,845
18,800
2,763
3,032
8,869
7,909
267,165 265,855
1,345,117 1,358,358
92,352
91,483
31,187
32,842
763,051 783,892
425,969 419,329
26,001
11,398
1,750,63.5 1,765,527

Inc.

409
960
1,310
869
.............

6,640
14,603

Dec.

1,394
4,393
5,909
3,955
269
18,2 «
1,655
20,841
14,892

THE MO N T H L Y B U S I N E S S R E V I E W

14

Wholesale Trade
Percentage Increase (or Decrease) in Net Sales During December, 1921,
as Compared With November, 1921, and December, 1920
Dry Goods

Groceries

Hardware

—16.0

—8.7

—18.1

9 .9

—10.6

Net sales (selling price) during December, 1921, compared with November, 1921....................................
Net sales
during December, 1921, compared with
mber, 1920.....................................

—*4.1

—27.2

— 8 .8

Dnp

Department Store Sales
Percentage of net sales (selling price) during Decem­
ber, 1921, over net sales (selling price) during same
month last year.............^.........................................
Percentage of net sales (selling price) from July 1,1921,
to December SI, 1921, over net sales (selling price)
Percentage of stocks at close of December, 1921, over
stocks at dose of same month last year..................
Percentage of stocks at close of December, 1921, over
stocks at dose of November, 1921..........................
Percentage of average stocks at close of each month
this season (commencing with July 1,1921) to aver­
age monthly net sales during the same period.......
Percentage of all outstanding orders (cost) at close of
December, 1921, to total purchases (cost) during
the calendar year, 1920............................................

Cleveland Pittsburg Cincinnati

—10.0 —15.2

—3.2

Toledo

—4.7

Other
Cities

District

—7.4 —10.7

—18.9 —21.6 —7.3 —9.5 —17.5 —17.3
—11.2 —13.8 —14.2 —23.4 —2.7 —13.4
—15.S —16.1 —19.0 —28.0 —18.4 —17.6
379.1

363.6

407.7

388.2

443.1

381.0

5.7

5.2

7.1

4.6

7.5

5 .9

Movement of Livestock at Principal Centers in Fourth Federal
Reserve District For Month of December9 1921-1920
Cincinnati...........
Cleveland.............
Columbus.............
Dayton...............
Fostoria................
Pittsburgh............
Springfield............
Toledo.................
Wheeling...............
Cincinnati.............
Cleveland.............
Columbus
Dayton
Fostoria................
Pittsburgh............
Springfield..........
Wheeling..............



1921

Cattle

1920

1921

Hogs
1920

1921

Sbeep
1920

24,289 17,961 141,412 160,779 11,518 7,385
9,679 8,139 85,601 98,030 45,247 36,805
26
28
3,655
210 405
1,444 1,221 12,359 12,871
467 8,485 12,068 1,970 2,430
411
47,460 31,520 282,668 266,747 112,855 79,925
820 243
196 5,609 4,651
161
547 7,685 17,353 2,442 2,978
703
315
305
469 2,230 2,434
234
Purchases for Local Slaughter
15,589 13,772 95,423 93,431 9,417 5,893
9,200 7,364 62,793 75,343 24,370 16,467
881
18
2
971
7,924
385
35 1,679 550
8
20
32
5,769 5,671 56,462 55,554 11,890 14,209
600
.............
2,230
305
234

1921

Calves
1920

10,329 6,783
9,384 8,895
258
665
495
518 516
26,600 18,223
198
171
542 799
659 583
6,062
8,885
95
40
6,513
.............
659

4,231
8,486
420
25
6,872

............

. '^*n
rnlnuM
1921
1920

2,226
1,700
IE
lu
28
5,154
124
29

2,297
1.847

30
4,762
5
286
SO

THE MO N T H L Y B U S I N E S S R E V I E W

15

Building Operations For Month of December
Permits Issued
Alterations
New Construction
1920
1920
1921
1921

Akron............
87
Canton.......... . . 55
Cincinnati.... 194
Cleveland*... 243
Columbus.... .. 147
Dayton..........
73
Erie...............
57
Lexington....
17
Pittsburgh.. . . 272
Springfield...
28
Toledo...........
96
Wheeling.......
27
Youngstown..
55
Total , 1,851

57
42
120
169
79
82
29
5
130
15
42
11
50
831

26
25
23
19
158 347
420 401
61
50
23
29
23
12
42
16
66
58
7
7
65
65
2
5
18
13
933 1,048

Valuations
New Construction
1921
1920

1921

Alterations Inc. or Dec. of Per cent
1920 Total Valuation Inc. or Dec.

230,120 88,475
8,535
118,669 120,890
9,538
2,569,445 130,860 342,685
2,333,645 6,000,044 442,165
328,290 523,540 66,375
395,885 336,125
15,641
152,090 68,750 68,940
163,695
16,000 75,000
2,458,392 597,465 132,463
4,925
15,940 27,640
962,020 70,950 88,361
150
122,865 30,105
148,505 113,935 11,050
9,999,561 8,124,779 1,265,828

32,450
117,730 97.4
15,380
—8,063 —5.9
209,425 2,571,845 755.8
391,950 - -3,616,184 —56.6
31,370 —160,245 —28.9
50,051 13.8
25,350
142,680 182.1
9,600
220,128 1,185.6
2,567
199,589 1,793,801 225.1
9,050 —15,825 —43.1
44,175
935,256 812.4
1,585
91,325 288.2
15,700
29,920 23.1
988,191 2,152,419 23.6

♦Figures include Lakewood and East Cleveland.

Commercial Failures in the Fourth Federal Reserve District by Years 1916-1921
The following is a record of commercial failures in the Fourth Federal Reserve District from 1916 to 1921 inclusive,
compiled from figures as published by Dun’s Review. During the years 1916 and 1917, failures were quite heavy.
Then came the war years of 1918 and 1919 when orders grew and expansion was the general rule. Failures at this
time and continuing through 1920 show a decided drop. Following the inflation period the number of failures has
shown another marked increase:
Liabilities

Year
191 6
191 7
191 8
191 9
19*0...................................................................
1981...................................................................

FAILU

January.......................................................
February......................................................
March..........................................................
April............................................................
May............................................................
June............................................................
July.............................................................
August........................................................
September...................................................
October.......................................................
November...................................................
December....................................................
Total.



Number Failures

1,278
1,109
858
587
692
1,603
1921, BY MONTHS
133
144
88
118
102
98
167
137
118
177
141
ISO
1,608

Total amount

$17,683,783
15,749,017
12,413,340
13,329,257
14,327,557
53,675,492
$6,661,913
3,613,291
2,767,384
4,366,788
1,969,231
4,744,487
4,200,340
5,183,707
2,815,406
2,613,018
10,689,437
4,050,490
$53,675,49?

Average amount
per firm

$13,837
14,201
14,468
22,707
20,705
33,484
$50,090
25,092
31,448
37,007
19,306
48,413
25,152
37,837
23,859
14,763
75,812
22,503
$33,484

FOURTH
FEDERAL BESEBVE
DISTRICT




W B O U N P A ftt O f OISTftlCT
mmm> BOUNDAIUe* Of MtANCH TEIUlTOfclES

— — 6OUN0MUCS OF STATES
<g> FEDERAL RESERVE BANK. CITY
O FEDERAL RESERVE 0 RANCH CITIES