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The Monthly
Business Review
Covering financial, industrial, and agricultural conditions
in the Fourth Federal Reserve District
CLEVELAND, OHIO, JANUARY 1, 1924
“ THE NEW YEAR IS STARTING OUT WITH
MUCH IN ITS FAVOR. IT IS TRUE THAT THE
RATE AT WHICH INDUSTRY IS MOVING IS
LESS IMPRESSIVE THAN IT WAS A YEAR AGO,
BUT AT THE SAME TIME OPERATING FRICTION
HAS BEEN FURTHER REDUCED. AS A RESULT
THE 1924 BUSINESS MACHINE IS BETTER FITTED TO STAND UP UNDER THE WEAR AND
TEAR OF A LONG DRIVE THAN WAS LAST
YEAR’S MODEL. ’ '—E D ITO R IAL,
FEDERAL RESERVE BANK of CLEVELAND
D, C. Wills, Chairman of the Board
(COMPILED DECEMBER 22, 1923)
NO. I
|
THE
MONTHLY
BUSINESS
REVIEW
A n E ditorial
HE new year is starting out with much in its favor. It is triu
that the rate at which industry is moving is less impressive than
it was a year ago, but at the same time operating friction has
been further reduced. As a result the 1924 business machine is better
fitted to stand up under the wear and tear of a long drive than was
last year’s model.
Furthermore the fundamental working parts which proved s o
successful last year are still in good order. In other words those con
trolling factors which made 1923 a record year have been carried over
into 1924. Let us see what some of them are.
Undoubtedly one of the biggest single factors has been the univer
sal conservatism among those charged with the responsibility of
carrying on business, this conservatism being of a qualitv
which was influenced neither by unfounded expectations of a great
increase in business nor by the pessimistic opinions occasioned by
various happenings throughout the world. Such conservatism in
evitably tends to steady industry and trade as a whole and to inspire
a widespread confidence in the future.
T
Other decidedly important factors are:
The legitimate demands of a prosperous and well employed
people.
Efficient transportation together with the rehabilitation
program mapped out by the railroads.
The continuance of sound credit conditions.
The improvement in the agricultural situation.
Marked activity in building.
Efforts to economize both in production and selling.
The individual tendency to save.
The faith of the people in the business stability of the
country.
It is not unreasonable to suppose that the above factors will
govern 1924 business activities.
In selecting only the favorable features it is not proposed to draw a
curtain of optimism over the unfavorable ones. Their handicaps are
fully appreciated but they are overshadowed by those elements
which keep business in this country moving in the right direction.
For this reason it would appear that the new year can be approached
with confidence.
A year ago the Monthly Business Revieio stated that there were
good things in store for us in 1923 if we knew how to look for them.
As we face 1924 no more fitting statement can be made.
th e
m o n t h l y
business
review
3
icrrowings by Member Banks Show Upward Trend; More Than One Billion Dollars
Added to Savings Accounts in Year Ending June 30
xtans to city banks in the Fourth Federal Reserve
D s :rict on December 20 were somewhat higher than
thej were a month earlier due largely to the customary
iemand for seasonal accommodations. On Novemer 20 they were $42,787,000 as compared with
49,687,000 on December 20, an increase o f $6,900,000
f.»r the month.
Country bank borrowings also showed a gradual
upward trend.
On November 20 accommodations
{tended to country banks totaled $17,386,000 and
.1 December 20 they were $18,635,000, an increase for
ihe month of $1,249,000.
On November 20 the reserve ratio of this bank was
79.9 per cent as compared with 75.3 per cent on De
cember 20. The reserve ratio o f the System on
November 20 was 76.9 per cent as against 75.0 per
cent on December 20.
Reports from 18 representative banks in the Fourth
District for the month of November, 1923, show an
increase of 15.9 per cent over the same month last
year. As compared with the previous month a gain of
.6 per cent is shown.
According to the annual report o f the American
Bankers’ Association recently made public, over a bil
lion dollars were added by the people of the United
States to their total savings in the year ending June
30. Savings deposits in savings banks, national and
state banks and trust companies amounted on the date
named to $18,373,062,000, showing an increase of
$1,041,583,000 or 6 per cent, as compared with the
corresponding date last year.
Unfilled Steel Orders Continue to Decline but Prospects are Brighter;
Buying Movement in Pig Iron Extensive;
Prices Turn Upward
Prospects for a revived demand for steel have con
tinued to improve and sentiment has become more ex
pectant. From various reliable indications consump
tion is moving forward on a large scale. Virtually
all signs point to a very strong underlying condition
and one which has been modified slightly, if at all,
from that which existed several months back. General
buying has been under check, especially in recent weeks
when inventory-taking and year-end considerations
have had a marked influence.
In the opinion
of some observers, not for years have inventories of
steel on the whole been worked down or held to such
a low point as is the case at the ending of 1923. This
situation has been forcing a fair amount o f immediate
buying but this has not been sufficient to match the
outgoing shipments of the mills so that unfilled tonnage
has continued to decline. Added to the year-end hesi
tancy has been the expectation or hope of buyers to
bring about lower prices for steel which has held
back buying for future delivery. Up to late December
very little tonnage had been bought against 1924
requirements except in steel rails, tin plate, and a few
other favored lines.
In recent weeks the attitude of buyers against obli
gating themselves on the future has been changing.
Starting conspicuously with the automobile and au
tomotive interests which are planning large pro
duction schedules for the first part of 1924, suitable
tonnage for the first three months o f next year has been
put on mill books. This has been in such lines as
sheets, steel bars, strip steel, and related lines. The
list of buyers representing diversified lines of use, now
coming into the market for first quarter needs is ex
panding, and the outlook for a liberal buying movement
of steel in the near future is considered promising.
Tn many cases the placing of these contracts has not
made price a first consideration. The : ailroads have
maintained their position as hviavy buyers of steel, par
ticularly in connection with track material. Further
heavy orders for rails and track fastenings for 1924
delivery have been placed. Car orders, while not large,
have been of a heavier total than in five or six months,
while inquiries now in active negotiation total at least
20,000. Prospects for car building on a steady scale
for some months to come are pronounced to be good
and some steelmakers estimate as many as 100,000
may be placed. New building work is coming out
well considering the season and the tonnage of steel
placed for this purpose week after week is favorable.
Many projects in a formative stage are before the mar
ket. Tin plate buying for the first half o f 1924 has
been the heaviest in years. Buying of miscellaneous
consumers in sheets, bars, plates, line pipe, and some
other lines has been lagging.
The buying movement in pig iron which began
abruptly the last half of November and extended
into early December has proved to be one of the most
extensive in years. Well over 1,000,000 tons o f iron
were booked within a few weeks by furnaces, largely
for first quarter of 1924 delivery. This buying move
ment followed a backward market situation of six or
seven months during which time prices had declined
from $8 to $10 per ton. As a result o f the heavy buy
ing recently, prices of pig iron have stiffened $2 to $3
per ton and a fair volume of sales is being made at
these higher levels. The market is not without some
soft spots, however, for the buying of steelmaking
grades has not kept pace with that of foundry iron,
and low prices still prevail on the former.
Despite the sluggish conditions of new steel business,
mill and steelworks operations have been reasonably
well maintained. At the present time the general
THE MO N T H L Y
4
BUSI NESS REVI EW
activity o f the steel industry is put at 70 per cent of
capacity. The Steel Corporation plants have been running around 82 to 84 per cent while those of the Independents on the average have been considerably
lower. Pig iron production in November as compiled
by Iron Trade Review for the first time in a year fell
below 100,000 tons daily or to an average of 96,373
tons which compares with 101,375 tons in October,
From the high point in May pig iron production has
now declined 22.8 per cent. Total production in
November was 2,891,191 tons against 3,142,642 tons in
October. The eleven month total indicates that 1923
production will be approximately 40,300,000 tons, a
new high record for the country. Active furnaces at
the end of November numbered 231, a reduction of 14
from the previous month. Steel ingot production in
November fell to the annual rate of 37,126,000 tons,
In October the indicated annual rate was 40,735,000
tons. The rate in November was 24.1 per cent under
the high mark of April. Production of steel ingots for
the country fo r eleven months totaled approximately
40,383,OCX) tons which indicates that the full year will
not quite reach the high record period of 1917.
Due mainly to the reversal of the pig iron market
Iron Trade Review composite of fourteen leading iron
and steel products has turned upward for the first time
in 13 weeks, barring a slight change in September
F or the week of December 20 the average was $43
compared with $42.81 for an November, $43.84 for
O ctober, and $44.64 for September.
Automobile Production
The Department of Commerce announces November
production of automobiles, based on figures received
from 186 manufacturers, 96 making passenger cars
and 119 making trucks (29 making both passenger
January .....................................
February ...................................
March . .......................................
April ...........................................
May .............................................
June .............................................
July .............................................
August .......................................
September .................................
October .......................................
November ...................................
December ...................................
^Revised.
cars and trucks). Data for earlier months include 1^
additional manufacturers now out of business Fi<ni ~
on truck production also inclurle fire apparatus’ •
street sweepers.
'
' al
NUMBER OF M ACHIN ES
Passenger Cars
1921
1922
1923
43,086
81,696
223,819
68,088
109,171
254,773
130,263
152,962
319,770
176,439
197,224
344,639
177,438
232,462
350,410
150,263
263,053
337,362
165,616
225,086
297,330
167,756
249,492
314,373
144,670
187,694
298,911
134,774
217,566
*335,023
106,081
215,352
284,680
70,727
208,010
..........
1921
4,831
7,830
13,328
18,070
18,070
14,328
11,136
13,400
13,978
13,149
10,487
8,656
22 046
24m
19467
21 79S
71949
Trucks
19??
io ? i
13350
?00™
^ 6 0
S & 6
26298
I n ilP
2 ’S 3
S
4 n ’S 8
£ ’ *66
20,354
4
9 576
24097
••• •
*
Freight Loadings Show Moderate Decline; Car Supply Grows;
Equipment in Excellent Condition
Revenue freight loadings have fallen below the million-car-per-week mark, but they continue to be notably
higher than during the fall of last year. In the week
ending November 24, there were loaded a total of
990,217 cars as against 946,642 cars for the same week
last year. The volume of business this year is strikingly shown by the total movements during the first 38
weeks of the year in comparison with the same periods
in 1922 and 1921. This year, up to the time of the
last available report, there were loaded 45,673,690 cars
as against 39,048,387 and 35,918,733 in 1922 and 1921
respectively. Not only is the total movement in 1923
heavier than in the two preceding years, but it is also
heavier for each separate period of the year, as shown
by detailed reports.
As a natural consequence of having passed the peak
in car loadings there is an increasing surplus of cars,
During the week of November 22 there was a total
surplus o f 111797 cars and a shortage of 1,866 cars,
*
It should be noted as being remarkable thit I
this year we have had no period when there ? n n £
net shortage of freight carrying equipment. PreH- 3
tions made earlier in the year to the effect tint ti
'
would probably be a car shortage have not been fu lfill^
The condition of freight cars is better than it J
been for years. On November 15 the carriers report
a total o f 149,192 cars unfit for service, or about
per cent of their total supply.
’
'At a meeting of the Great Lakes Sliinnpr*
Advisory Board held on December 11, reports were ^
ceived from various committees as' to the probaK?'
needs for equipment and the prospects tor business
the early part of 1924. While the reports w *n
not uniform, some of them indicating a probable redii*^
tion and others a probable increase, apparently the fi
result o f all reports tended to indicate a continuation^'
production in about the same volume as has been
perienced during the latter part of this'year ^
THE
MONTHLY
BUSINESS
REVIEW
5
Present Outlook for Building Favorable; Experts Believe Early Spring Months
Will Show Healthy Activity
The outlook for building operations has improved
considerably during the last few months. Last August
there was a manifest letting down in the volume of
construction but since that time each succeeding month
has been giving a good account of itself with the re
sult that the rebound has been one of the outstanding
fall developments. Construction is now running con
trary to the usual seasonal trend.
Experts who have analyzed the situation take the
view that presiMit activity may be accepted as a fairly re
liable indication of what may be expected in the early
spring months; in other words they expect a healthy
demand for labor and a good market for building
materials. The one possibility of interference they
point out, is the cost factor.
Evidence of the heavy volume of November construc
tion is to be found in statistics compiled by the
Builders’ Exchange covering the issuing of permits in
Cleveland and the adjoining suburbs. The figures for
November, in the city proper show a total of 1,334 per
mits issued, involving an expenditure of $6,906,000 in
comparison with 989 permits calling for an expenditure
of $3,805,000 for the corresponding period in 1922.
The total valuation of permits issued up to December
1 this year is $58,372,000 as against $51,000,000 for the
same period last year. Making the comparison on the
basis of permits issued, the first eleven months of this
year exceed the same period in 1922 by approximately
4,000.
As for the suburbs the ratio of increase follows
somewhat along the same lines as Cleveland proper, the
four communities of Cleveland Heights, Lakewood,
Shaker Heights, and East Cleveland having issued
building permits up to December 1 this year with a
total valuation of $30,000,000 in round figures as
against $28,000,000 for the same period last year. The
month of November showed a valuation of $3,202,000
this year compared with $2,908,000 for November, 1922.
Production of Portland Cement in November Exceeds Demand;
Stocks on November 30 About 7,000,000 Barrels
Production of portland cement in November was
12,600,000 barrels, an increase of 11 per cent over
November, 1922, according to the latest bulletin issued
by the United States Geological Survey. For the
eleven months ending November 30, production was
nearly 127,000,000 barrels, or 12 per cent more than
was ever produced before in a similar period.
A seasonal falling off is shown in shipments, the
movement from the mills being 10,251,000 barrels or a
decline for the month of more than 4,000,000 barrels.
Shipments for the eleven month period exceeded 129,000,000 barrels, an increase of more than 17,000,000
barrels over the corresponding period of 1922, the best
previous record.
Notwithstanding the remarkable demand experienced
this year, production has been relatively greater. Stocks
of finished cement in manufacturers’ hands on Novem
ber 30 were nearly 7,000,000 barrels, an increase of 30
per cent over last year.
Lumber Industry Shows Tendency to Mark Time; Dealers in Market
For New Supply of Materials
W hile the continued volume of construction during
the fall and early winter months has resulted in a fair
volume of business in the lumber industry, late reports
indicate a tendency to mark time. When seasonal
factors are taken into consideration, however, the trade
in general appears to be more than living up to ex
pectations.
Prices show some signs of strength although no
notable changes are predicted. Manufacturers in four
southern states have advanced the price from $2.00 to
$3.00 per thousand on high grade stock and from $1.00
to $2.00 on low grade material.
Stocks in the hands of retailers are comparatively
low. Retail yards have completed deliveries to most
of their jobs and are in the market to secure a new
supply. Inquiries are now being sent out by the large
concerns in this territory. Present orders are largely
for January and February shipments.
The Southern Pine Association's barometer for the
week of November 30 shows that orders booked dur
ing that week were 88 per cent of normal and within
2 per cent of production.
Paving Brick Shipments Remain High; Common Brick Plants Well Occupied
Considering seasonal influences, shipments of vitri
fied paving brick for November were running above
normal, 64 per cent of the industry's tonnage reporting
total shipments of 21,689,000 brick, according to a
report just made to the United States Department of
Commerce by the National Paving Brick Manufactur
ers’ Association. In October 66 per cent of the in
dustry’s tonnage reported shipments of 34,287,000 brick.
Unfilled orders on hand declined from 64,531,000
brick for October to 54,535,000 for November. For
THE
6
MONTHLY
BUSINESS
the first time since last spring the total number of
brick manufactured for the month ran greatly in ex
cess of shipments, indicating that companies are manu
facturing for stock in anticipation of late winter and
early spring shipments.
The Common Brick Manufacturers’ Association tells
us that prospects are good. An encouraging feature
of the situation is that those sections in various parts
of the country which have been showing little activity
in construction work are now coming into the market
with greater strength.
REVIEW
In most localities the present month’s brick business
has been as good as that of last month and consider
ably better than that of the same month a year ago
According to the Association, 1923 business has been
at hast 25 per cent better than it was during 1922.
Ihere is usually a lull during the latter half o f the
year m the brick business. The past year was no ex
ception, these lulls appearing at various times and in
different parts of the country. Practically all the
plants, however, have now recovered and in most in
stances are well occupied.
Selling Season in Burley Tobacco District Now Under Way; Returns Act
As Stimulant to Christmas Trade
The Burley Tobacco Growers' Cooperative Associa
tion opened its receiving houses throughout the district
on December 10 and its members are now engaged in
delivering their crops. An advance is made by the
Association at the time of delivery. The advance
values established for the 1923 crop are the same on
most of the higher grades of tobacco, but on the lower
grades they have been increased somewhat, so that the
average advance received by the growers will be larger
than last season.
The independent loose leaf warehouses started the
sales season for the tobacco growers who are not mem
bers o f the Association early in December, and their
opening was watched with much interest because o f
the information these sales give on the trend o f the
market. So far the sales have been averaging in the
neighborhood o f $20 a hundred. The sales of 1922
tobacco averaged about $28, so the price this year is
considerably under that of last season. It is, however
near the level o f the price paid for the 1921 crop.
’
The advance o f the Association to its members and the
receipts of nonmembers from their sales on loose le a f
floors are supplying the growers throughout the die
tnct with cash which naturally is serving as a stim,,*
lant to the Christmas trade.
Market for Canned Goods Strong; Holiday Buying Above Wholesale Grocers’
Expectations; Quality Products Preferred
The fact that labor has been well employed has
had an important bearing on the canning industry
throughout the past year. Improved sentiment toward
canned products in general also reacted very favorably.
The result is that most canners enjoyed a very good
business in 1923.
At present the markets are strong, and while not so
active as in other seasons of the year, a good volume
of business is being done daily. The expectations are
that after the first of the year they will show increased
activity on account o f the depleted condition of stocks.
Future prices have already been named on ^several
commodities (which is at least two months earlier than
usual). This demand for future prices came from th »
buyers.
e
The holiday season as usual has brought with it an
increased demand for items such as nuts, dried fr u i^
o f all kinds, canned goods, etc. In fact wholesale g ro
cers say that holiday business is above their expect*
tions. Quality products are very much in demand
Retail grocers report a heavy business at this time
They are buying conservatively and as a result stock*
are not large. The housewife appears to be critic*!
in her Christmas purchases this year and her present
policy is to shop around. A marked preference 7
being shown for goods with an established reputation
Present Conditions in Farm Implement Trade Show Little Change but Outlook is
Brighter; Plans Are Made for Progressive Merchandising
The farm implement industry is facing the future
with more confidence than it has shown for several
years.
For many companies the calendar year is also the
figfal year. For three years the financial statements of
leading companies have recorded losses. A profit on
yearly operations has been an isolated exception. While
it is not expected that the situation will show great
improvements in the 1923 statements, every company
is looking forward to making some reduction of losses.
The feeling is general that the "red ink” period ha
passed and that the industry is now in a fair p o ^ S
tion to start the recouping of its losses of from fiftee ~
to twenty million dollars during the last three years
This new confidence is founded upon general pro*
perity and the improved agricultural situation rath^I
than upon any immediate betterment. While futur
orders have shown little perceptible increase, th~
farming community has realized approximately one and
one-half billion dollars more for its 1923 operation*
7
THE M O N T H L Y B US I NES S REVI EW
than it did last year and in addition to this there is an
urgent need for new machinery in order to restore
agricultural mechanical equipment to its pre-war basis.
The industry is beginning to appreciate more fully its
sales opportunities, the stable basis upon which it
rests, and also that its big shortcoming in previous
years was in merchandising lines. With this concep
tion of existing conditions it has completed plans for
selling its product to the public in a constructive way.
In other words it will attempt to show the farmer that
farm machinery is the basis for creating the wealth
with which to buy other necessities. In this campaign
and also in its efforts to lower the costs of distribution
the manufacturers are receiving the whole-hearted sup
port of the dealers.
Fall and winter business, though not a large factor
in the industry, has been quite satisfactory. The com
paratively favorable prices for com and low prices
for hogs have made efficient feeding necessary and this
has proved to be quite a strong factor. Tractor trade
has shown an increase of about 20 per cent during 1923.
The retail branch of the industry is in a fairly satis
factory condition financially.
While failures have
been numerous during the last three years, resulting in
a considerable reduction in the number o f dealers, it is
now estimated that all but about 20 per cent of those
remaining have been operating at a profit, small though
it may have been, and that even a slight improvement
in conditions will reduce the number of probable
failures among this small group. The retailers have
taken their losses, have comparatively clean stocks, and
by following a conservative policy have placed them
selves in a position to take full advantage of increasing
business.
A decidedly optimistic view of the future is taken
by the Chilton Tractor and Implement Journal.
It says that with the farmer realizing, as he is
beginning to, that present price levels are prac
tically certain to continue for some time, with the
manufacturers more hopeful as their financial position
is strengthening, and with dealers in the best condi
tion in three years, the entire industry is starting the
new year with hope and confidence that a gradual res
toration of business to a normal volume is on the way.
Paper Mills Active; Conditions in Book Paper Division Reflect Cautious Buying
Paper manufacturers report that their mills are
doing a good volume of business, in some instances
better than last month and also better than last
year.
Conditions in the book paper division of the in
dustry are less favorable, being comparatively slow
at the present time. Buyers do not appear to be
anxious to place orders beyond immediate require
ments. In addition, just at this season the demand
for magazine papers is less than at almost any
other time, owing to the fact that the January issues
are usually the smallest of the year. However, for the
most part this is a normal seasonal condition and a
turn for the better is expected shortly.
The following table compiled by the American Paper
and Pulp Association shows percentage changes in
production and shipments by identical mills in Novem
ber, 1923, as compared with October, 1923:
Newsprint .......................
Production
Per Cent
— 1.5
Paperboard ..................... . . . .
Wrapping .......................
— 13
Tissue ............................. .......
Hanging ..••••..............
Felts and Building ____
,
Other Grades ..................
Total— All Grades
........
— 8
—28
— 15
— 8
Shipments
Per Cent
— 6
— 7
— 13
— 15
—26
— 3
— 9
— 18
— 18
— 12
— 10
Soft Coal Production Shows Declining Tendency; 1923 Stands Out as Impressive Year;
Holidays Cut Into Anthracite Output
While bituminous coal production has recently
shown a declining tendency, the output is still suf
ficiently large to make 1923 stand out as one of the
most impressive years in the soft coal industry.
Production during the first 289 working days of
1923 was 516,660,000 net tons as compared with
376,932,000 net tons for the corresponding period
last year.
The total output in the first week of December
is now estimated at 9,828,000 net tons. This in
cludes mine fuel, coal coked at the mines, and
local sales. Compared with Thanksgiving week
this was an increase of 885,000 tons, but it was
332,000 tons less than in the week ending Novem
ber 24.
According to a recent report of the United States
Geological Survey mining of anthracite coal in the
week ending December 8 was hindered by an
outbreak of labor troubles at the mines of a larg’e
company and also by the occurrence of a church
holiday. The total output for the week is esti
mated at 1,899,000 net tons, an increase of 151,000
over the holiday week, but 201,000 less than in the
week ending November 24.
Final returns on anthracite shipments show that
the total output in November may be estimated
8
THE
MONTHLY
BUSINESS
REVIEW
at approximately 7,746,000 net tons. In comparison with production in October this is a decrease
of 978,000 tons, which may be attributed to the
fewer working days in November an d to the occurrence of holidays.
Cumulative anthracite production to the end o f
Novem ber stood at 87,744,000 tons, a figure t h a t
has been exceeded but twice during the eleven
y e a r s for which records of monthly production
are available.
On page 11 of this month's REVIEW we present for
the first time a chart showing the new index of em
ployment in manufacturing industries, compiled by the
Federal Reserve Board’s Division of Research and Sta
tistics. Wide industrial and geographical representation
in the composition of the index is obtained by using data
collected by a number of Federal and state agencies cover
ing 33 separate industries, which are grouped into 10 gen
eral classes, as follows: metals; textiles; lumber; vehicles;
paper and printing; food; leather; stone, clay, and glass;
tobacco; and chemicals. The final index and each of the
10 group indexes were obtained by combining the 33 in
dividual industry series, weighting them in accordance with
their relative importance as determined by the number
employed according to the census of manufactures of l 9 i o
and 1921. The index is expressed in terms of percentages
with the monthly average for 1919 as the base, i. e., lo o
per cent. It is so constructed that its movements, although
they do not measure the total volume of employment
reflect increases o r decreases in this volume. No correc ’
tion was made for normal seasonal variations, because
although these fluctuations are noticeable in individual i n '
dustnes, they vary as to time and degree and in the finai
index largely offset each other. A full description of th«!
data and methods used in compiling this index and n t
the results obtained was published in the December issue
the F E D E R A L R E SE R V E BULLETIN.
f
Zl
THE
MONTHLY
BUSINESS
9
REVIEW
Debits to Individual Accounts
Akron....................
Butler, Pa
Canton........
Cincinnati. .
Cleveland..............
Columbus..............
Connellsville.......
Dayton................
Erie......................
Greensburg.........
Homestead..........
Lexington, K y .. .
Lima....................
Lorain..................
Middletown*. . . .
New Brighton. . .
Oil City...............
Pittsburgh.............
Springfield.............
Toledo...................
Warren, Ohio........
Wheeling...............
Youngstown..........
Zanesville..............
Week Ending Week Ending
Dec. 19, 1923 Nov. 21, 1923
(324 Banks)
(322 Banks)
$ 14,446,000
$ 16,218,000
3.504.000
2.694.000
9.605.000
9.328.000
80,794,000
75.337.000
146.904.000
154,881,000
31.616.000
37,200,000
1.334.000
1.187.000
17,445,000
15.407.000
7.813.000
8.491.000
4.835.000
4.970.000
961,000
1.135.000
3.968.000
6.745.000
5.133.000
4.353.000
1.702.000
1.600.000
2.577.000
2.426.000
2.532.000
2.678.000
2.694.000
2.959.000
199.215.000
199,702,000
4.579.000
5,406,000
43.613.000
43,258,000
2.618.000
2,941,000
10.348.000
13,011,000
12.041.000
12,087,000
3,266,000
3,228,000
Increase or Decrease W'eek Ending Increase or Decrease
Amount Per Cent
Amount Per Cent Dec. 20, 1922
(323 Banks)
12.3
$ 15,340,000
878.000
5.7
$1,772,000
$
30.1
2.572.000
932.000
36.2
810,000
3.0
11.070.000
1.465.000 ■ -13.2
277.000
7.2
82.533.000
1.739.000 - 2.1
5.457.000
5.4
148.818.000
6.063.000
7.977.000
4.1
17.7
34.820.000
2.380.000
6.8
5.584.000
12.4
1.426.000
92.000 - 6.5
147.000
13.2
15.523.000
1.922.000
12.4
2.038.000
7.499.000
314.000
— 678,000 — 8.0
4.2
4.765.000
70.000
— 135,000 — 2.7
1.5
794,000
— 174,000 — 15.3
167.000
21.0
70.0
6.548.000
2.777.000
197.000
3.0
17.9
4.203.000
780.000
930.000
22.1
6 .4
102.000
1.359.000
343.000
25.2
6.2
151.000
— 146,000 — 5.5
" ” 44,666
‘ 2,576,666
3.398.000
— 265,000 — 9.0
704.000 -2 0 .7
0.2
216.153.000
487.000
16,451,000 - 7.6
18.1
4.123.000
827.000
1.283.000
31.1
— 355,000 — 0.8
45.514.000
2.256.000 - 5.0
12.3
2.862.000
323.000
79.000
2.8
25.7
2.663.000
10.936.000
2.075.000
19.0
0.4
12.246.000
159.000 - 1.3
46,000
— 38,000 — 1.2
2,871,000
357.000
12.4
Total.............. $635,606,000
$605,179,000
$30,427,000
* Corresponding figures for 1922 not available.
5.0
$637,949,000
— $4,920,000 — 0.8
Movement of Livestock at Principal Centers in the Fourth Federal
Reserve District for the Month of November, 1923-1922
Cincinnati...........
Cleveland............
Columbus............
Dayton................
Fostoria...............
Marion................
Pittsburgh..........
Springfield..........
Toledo.................
Wheeling.............
Cattle
1923
1922
28,066 27,641
13,383 11,986
65
73
2,140 2,107
1,000 1,335
72
88
38,636 59,340
131
75
853
759
764
427
Cincinnati...........
Cleveland............
Columbus............
Fostoria...............
Marion................
Pittsburgh..........
Springfield..........
Toledo.................
Wheeling.............
12,924 12,780
12,493 11,162
24
29
61
55
18
88
7,044 6,214
54
51
436
764
427
Hogs
Sheep
1922
1923
1923
1922
149,050 136,716
9,169
9,330
145,895 106,431 46,003 45,918
9,418
6,951
1
178
16,071
13,526
467
327
13,210
12,703
1,378
2,235
10,071
11,230
1,198
532
324,086 288,402 56,572 60,785
8,626
7,694
1,211
1,380
12,125
17,591
1,719
1,623
3,016
3,104
354
355
Purchases for Local Slaughter
73,252
64,302
3,966
4,726
123,055
82,794
8,161 19,221
116
36
1
66
1,018
160
5
18
1,947
3,030
24
13
62,159
60,739
9,966
9,062
454
239
5
133
1,540
199
3,016
3,104
354
355
Calves
1923
1922
9,186
9,589
11,925
9,930
247
223
668
656
467
433
117
152
37,164 24,512
238
208
401
676
1,530
1,089
5,261
10,997
208
43
59
7,533
12
154
1,530
Cars
Unloaded
1923
1922
2,110 1,991
2,113 1,943
27
17
45
” 40
4,705
5,890
131
40
225
28
4,483
9,604
44
25
116
6,738
35
1,089
Wholesale Trade
Percentage Increase (or Decrease) in Net Sales During November, 1923,
as Compared with October, 1923, and November, 1922
Dry Goods Hardware
Net Sales (selling price) during November, 1923, compared with
October, 1923........................................................................ . . . — 15.7
— 16.4
Net Sales (selling price) during November, 1923, compared with
November,
1.9
1922..........................................................................— 4.0
Drugs
Groceries
— 9.3
— 10.1
3.6
4.0
THE
10
MONTHLY
BUSINESS
REVIEW
Comparative Statement of Selected Member Banks in Fourth District
Dec. 12, 1923
(81 Banks)
Nov. 14, 1923
(81 Banks)
Loans and Discounts secured by U. S. Govern
ment obligations.............................................. $ 27,863,000 $ 27,661,000
Loans and Discounts secured by other stocks and
409.223.000
402.558.000
bonds................................................................
693.806.000
696.101.000
Loans and Discounts, all other.............................
47.237.000
U. S. Pre-War Bonds.............................................
47.982.000
112.235.000
116.416.000
U. S. Liberty Bonds...............................................
4.462.000
4.499.000
U. S. Treasury Bonds.............................................
55.907.000
U. S. Treasury Notes.............................................
56.559.000
4.752.000
U. S. Certificates of Indebtedness........................
5.491.000
299.511.000
Other Bonds, Stocks, and Securities....................
294.241.000
1.654.996.000 1.651.508.000
Total Loans, Discounts and Investments............
109.167.000
Reserve with Federal Reserve Bank....................
110.445.000
36.405.000
Cash in Vault..........................................................
32.747.000
901.985.000
Net Demand Deposits...........................................
893.506.000
601.256.000
Time Deposits.........................................................
602.322.000
4.040.000
Government Deposits............................................
8.757.000
2.106.412.000 2.097.169.000
Total Resources on date of this report................
Increase
$ 202,000
Decrease
$
6,665,000
5.270.000
3.488.000
3.658.000
8.479.000
9,243,000
2.295.000
745.000
4. 181.000
37,000
652.000
739.000
1,278,000
1,066,000
4, 717,000
Building Operations for Month of November, 1923-1922
Permits Issued
New Construction Alterations
1923 1922 1923 1922
267
40
Akron..........
170
42 $
216
76
162
49
Canton. . . . .
335
371
197
265
Cincinnati...
716 1,009
801
752
Cleveland*..
104
392
315
67
Columbus...
165
175
91
Dayton........
63
86
26
17
129
Erie..............
17
38
18
22
Lexington. . .
97
Pittsburgh. .
448
353
84
13
64
54
13
Springfield. .
327
234
132
Toledo.........
103
57
26
Wheeling___
37
25
168
128
22
20
Youngstown.
Valuation
Increase or Decrease
New Construction
Alterations
1922
1923
1923
1922
Arnount Per C e" t
399,600 $ 180,634 $
76,395 $
66,915 $ 228,446
92
580,964
491,640
36,605
19,639 72,358 - 1 2 o
2,380,515
1,167,675
284,845
335,925 -1,263,920 - 4 6
5,354,103
9,063,287
942,810
1,298,700
3,353 294
50 f
822,865
734.180
189,420
143,535 42 800 _ 4 1
350,105
384,408
115,477
121,846
27,934
5 t
151,040
299,900
19,475
45,525
122,810
62 ?
65,405
122,980
9,925
3,860
63,640
91 o
2,173,582
2,130,888
135,735
104,376 11 335 - 0 ?
79,900
50,200
6,900
3,875 26 676 - 3 1 f
466,630
1,164,048
104,125
78,977
722,565 132 |
101,435
154,223
22,914
14,975
60,727
52 %
353,050
388.180
48,620
14,825
68,925
18 y
T o ta l... 3,386 2,839 1,851 1,522 $16,551,209 $13,060,228 $1,993,246 $2,252,973 $3 231 ^54
* Includes figures for East Cleveland, Lakewood, Cleveland Heights, and Shaker Heights/
~
Department Store Sales
(1)
(2)
Percentage of Increase or Decrease
Comparison o f net sales with
those of corresponding period
last year
Akron..............
Canton...........
Cincinnati.......
Cleveland........
Columbus........
Dayton............
Pittsburgh. . . .
Toledo.............
Youngstown...
District............
U.S. Average
•Includes
B
July 1
to Nov. 30
4.5
— 1.7
16.3
15.1
18.8
14.5
12.2
10.7
10.6
2.1
11.2
10.3
15.4
9.9
14.0
13.0
24.4
21.4
14.1
10.3
9 .4
6.8
three reports from other cities.
No. of
Reports
4
3
9
5
6
3
6
4
3
46*
A
November
Stocks at end o f month com
pared with
A
November
1922
9 .6
7.0
13.7
16.5
10.0
8.2
20.2
31.7
27.4
17.9
13.3
B
October
1923
1.6
2.3
-0 .5
2.2
1.8
—0 .1
3.1
1.3
7.4
2.1
21.0
P
(3)
„
(4>
Percentage
o
Percentage o
average stocks out st a t i di ng
at end of each orders at end o f
month f r o m
November
July 1 to No 1923, to total
vember 30 to purchases dur.
average month ing calendar
ly sales over
year 1922
same period
412.9
727.3
473.6
388.0
436.8
437.8
400.9
385.1
283.0
410.7
403.0
10.0
5.5
6.3
6.1
9.4
7.6
5.7
8.5
6.9
6.5
THE
MONTHLY
BUSINESS
REVIEW
11
Summary o f Business and Credit Conditions in the United States
___________ _By the Federal Reserve Board
~T**o
E =p
,rv
I
Production of basic commodities and factory employment decreased in
November. Distribution of merchandise by wholesalers and retailers was some
what less active, and wholesale prices showed a slight further recession.
/Y
PRODUCTION
~r.: :
IE
Production in basic industries decreased about 2 per cent in November. The
decline was due chiefly to reduced production of iron and steel, and smaller
sugar meltings. The Federal Reserve Board’s new index of factory employment
which is shown by the accompanying chart also declined, due to lessened activity
at iron and steel plants and large seasonal reductions at clothing establishments.
The volume of employment is now 2 per cent smaller than in the spring but
3 per cent larger than a year ago. Contract awards for new buildings were
smaller in November than in October in all reporting districts except New York
but were 20 per cent larger than a year ago.
Final estimates by the Department of Agriculture show larger yields of corn,
oats, tobacco, and cotton than in 1922, and smaller yields of wheat, hay, and
potatoes. The total value of agricultural production at December first prices
was 12 per cent larger than in 1922. Each of the ten principal crops except wheat
showed an increase in value.
TRADE
Railroad freight shipments in November showed about the usual seasonal
decline from October but were in heavier volume as compared with previous
years. Wholesale trade was 13 per cent less in November than in October, which
is more than the usual decrease at this season, but sales continued to be slightly
larger than a year ago. Sales of hardware, drugs* and meat were larger than
in November, 1922, while sales of shoes were smaller. Retail business was
smaller than in October in most lines. Sales of mail order houses declined more
than sales of department stores, but were 11 per cent larger than a year ago.
PRICES
The Bureau of Labor statistics index of wholesale prices declined in Novem
ber to a point 4 per cent lower than last spring and about 3 per cent lower than
a year ago. The chief reductions occurred in prices of animal products, fuel
and house furnishings. Prices of clothing and crops, on the other hand, increased
and the latter group averaged higher than in any month since 1920. During the
first half of December prices of sheep, beef, sugar, cotton, silk, and rubber
declined, while quotations on crude oil, wheat, and wool were slightly higher.
BANK CREDIT
The total volume of credit extended by member banks in leading cities
showed but little change between the middle of November and the middle of
December. A seasonal reduction in commercial and agricultural loans in most
districts was accompanied by increased loans on securities, with the result that
total loans remained practically constant.
During the same period borrowings at the Federal Reserve banks were also
practically unchanged. Holdings of acceptances increased somewhat, partly in
connection with the financing of cotton exports. The increased demand for
currency for holiday trade was reflected in both a moderate expansion in
Federal Reserve note circulation and a reduction in gold certificates held by
the Reserve banks.
Rates on commercial paper sold in the open market continue to show an
easier tendency, as indicated by increased sales at 444 per cent, particularly in
interior districts. The December issues of one year 4*/i per cent and six months'
4 per cent treasury certificates, compared with
per cent on a six months’
istfue sold in September, were largely oversubscribed.
FOURTH
FEDERAL BESEBVE
D IS T R IC T
_
r *
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-------------------------
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