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The Monthly
BUSINESS REVIEW
Gotimng fastness and industrial conditions w tfte Emrih Rdend ReserveDistrict
FEDERAL RESERVE BANK of CLEVELAND
D.C.Wills, Chairman of ihe Board
(COMPILED JUNE 20, 1922)
VOL. 4
I
CLEVELAND, OHIO, JULY 1, 1922
No. 7
From Kentucky comes this report: “I must say
that I regret to see a tendency toward advance in the
price of the necessities of life. A broker who handles
a very large amount of merchandise told me only
yesterday that his sales had been enormous in anticipa
tion of a rise in the price of sugar, meats, canned
vegetables, and fruits. Perhaps these advances will
halt business to some extent at least.”
A correspondent from Pennsylvania writes, “In
creased cost of production, if followed by the usual
result, namely, higher selling prices, would mean
One correspondent believes, “It is possible that decreased consumption, less business, less industry/'
business has resumed too quickly to squeeze out the un
Another correspondent from Pennsylvania believes
economical methods of doing business and, while we that “the tendency toward increased cost of produc
are all anxious, of course, to see business come back tion, due to labor rates and rising tendency in ma
as quickly as possible, there may be such a thing that terials, will doubtless result in slowing up purchases
it is coming back on a more unsound basis than and tend to decrease the volume of business in manu
would be advisable.”
factured products.”
This is certainly no time to permit any elements to
Another “does not like the pace that is being
creep into business which will tend to hinder its normal
set in some directions.”
growth. Business has suffered a severe shock and
What are some of these disquieting under-currents? should not be unduly disturbed until it has fully
The position of one who points out unpleasant tend recovered.
encies is not an enviable one, but through the past
A second disturbing element is the evidence of over
three years we have endeavored to place markers
production
in certain manufactured products. The
along the economic and industrial roads for our read
ers to follow. We still feel that as long as those roads large facilities occasioned by war-time expansion are
are not definitely charted we would be breaking a constant encouragement to over-production.
A third element is the persistent report of labor
faith with our readers did we not go with them to
shortage, together with the returning evil of bonuses
the “edge of the clearing.”
and the offering of premiums.
As yet, there is nothing alarming in the situa
One correspondent says, “A few weeks ago I would
tion, but there are certain tendencies which will bear
careful watching. First, there is a tendency in certain not have thought it possible that a labor shortage would
industries for increased cost of production to parallel be here by the middle of the summer, but such a
shortage seems to be right in sight If labor demands
increased production.
war-time wages, and if the producer of raw materials,
One correspondent feels, “We cannot hope to see the the manufacturer, the wholesaler, and the retailer each
rapidly increased production cost go forward without in turn add a margin for their share of the work,
unpleasant results later.”
there is a possibility of a quick inflation, throwing us
Another thinks “it is very regrettable that there out of balance and bringing to a premature end the
should at this time be a definite trend toward increased prosperity we have all been striving for.”
costs of production. There remain a number of weak
“We find,” writes an Ohio correspondent, “that there
spots to be cleaned out before general business may be is considerable shortage in various kinds of labor, and
considered upon a sound foundation for any continued we also find that some manufacturers are sending
period of prosperity.”
trucks out through the smaller country towns in an
N GENERAL the tone of replies from our cor
respondents is not as assuring as it was thirty
days ago. Several disturbing under-currents are ap
pearing. In certain lines business is developing a
pace that will be exceedingly difficult to maintain.
There is a feeling growing among our correspondents
that, unless the present momentum in certain lines is
checked, business will with difficulty return to a sound
and substantial basis. It seems hardly possible that we
will be unmindful of the economic lesson so recently
learned.
2
THE
MONTHLY
BUSINESS
effort to find labor. In various lines of skilled me
chanics there also seems to be a shortage. On account
of this shortage there seems to be a tendency toward in
crease in prices, which will certainly result in another
let-up in a short time.”
In bringing these matters to the attention of our
REVIEW
readers and in quoting from our correspondents, we
have tried to give a faithful cross-section of those
thoughts which are running through the minds of the
business leaders of the Fourth Federal Reserve Dis
trict. Their previous help has enabled us to keep
in close touch with the immediate future, and we main
tain our confidence in their present judgment.
Both City and Country Bank Borrowings Decline;
Reserve Ratio Shows L ittle Change
Hie demands of member banks increased slightly
the first three days after May 20, reaching the high
point for the month on May 24, the net increase up
to that twne being about $4,500,000. In the next two
days there was a decrease of about $5,500,000. From
then on to the end of May there was a gradual in
crease, our loans to member banks at the end of the
month being alxnit $6,000,000 above the amount on
May 20. On June 1 they dropped nearly $8,000,000
From that time on to the end of the period, June 20.
there was a great deal of fluctuation in member bank
l>orrowings, with a general trend downward. The
high point for the period was on May 24 and the
low point on June 15.
For the month ending June 20 city bank borrowings
showed no particular change for the first few days,
but increased at the end of May. May 31 was the
high point in city bank borrowings, with the increase
from the 20th amounting to about $4,000,000. Dur
ing the remainder of the period there was a great
deal of fluctuation until June 15, the low point for
the month. The decrease from May 20 to June 15 was
about $8,500,000. From Tune 15 to 20 there was a
slight increase. The net decrease for the month
in city bank borrowings was about $6,000,000.
The general result of the fluctuations in the
country bank borrowings during the month was a de
crease of about $2,000,000, the high point being on
May 20 and the low point on June 20. From the
20th to the 26th they remained almost stationary, from
which time on to the end of the period they gradual
ly dropped by fractions of millions with an occasional
upward fluctuation for a day or two at a time.
From May 20 to June 20 the reserve of the Federal
Reserve System increased .9 per cent, while the
reserve of the Federal Reserve Bank of Cleveland de
creased 1.7 per cent.
Combined reports of 18 representative banks in the
Fourth District show a decrease in savings accounts for
May, 1922. as compared with the same month last
year, of 3 per cent. Compared with April of this
year. May accounts show a gain of .3 per cent.
The acceptance market remains practically the same
as it was a month ago; in fact, there lias' been little
change of importance for the past several months. Few
bills were offered, and the demand was almost negli
gible. There has been no change in the rates on bills.
Deliveries of Iron and Steel Delayed as Orders Grow; Production Increase Calls
Attention to Need of Coal Strike Settlem ent
Rising pressure for deliveries and growing conges
tion in the position of the mills are the predominant
features of the iron and steel situation. This condition
has been brought about by the fact that on the one
liaud the mills have been restrained from freely in
creasing production l>ecause of the necessity for cau
tion over future fuel supplies and on the other, the con
tinuing large volume of buying. With the larger pro
ducers the influx of new business has been steadily in
excess of shipments with the result that the deliveries
have continued to lengthen and buyers are more
obliged to await their turn to obtain supplies. Al
though the latter have been carrying low stocks they
have been getting sufficient material from a variety of
sources through orders previously placed to enable
them to maintain their operations. Shortages of steel
as yet have not been a retarding influence in manu
facturing activities except in occasional spots, but this
factor is of increasing weight. In some steel material,
notably certain forms of steel bars, large mills are
unable to make any definite promise of delivery before
September or October. In tubular goods a shortage
of bessemer steel prevents the mills from taking ad
vantage of some of the business opportunities before
them. This situation in bessemer steel lias caused the
mills to ask buyers to cancel some tonnages on the
hooks where the promise of delivery is very remote
and where open-hearth steel would not be acceptable
Because of the filled-up condition of bar mills in the
Chicago district, buyers have been placing orders fo r
certain kinds of steel with Pittsburgh makers, thus in
effect paying a premium for an earlier delivery posi
tion.
The need for further increase of production to mccl
the current demands of the market is causing m or^
attention to be focused upon the possibilities for an
early settlement of the coal strike. It is indicated that
this situation will exert its effect in a growing wav i*
stimulating greater efforts toward negotiating som
adjustment of the present working dispute in fuel
Operations of the industry on the whole at this tim
are at 70 to 75 per cent on the average and unless s u rf
plies of coal and coke are materially increased in th
near future, there is not likely to be much change *C
this rate of output.
1,1
While a substantial increase in both pig jron _ .
steel ingots was shown in May, the outlook is fo r
materially smaller gain in June. Some blast furnace*
which were scheduled to be blown in, because of th
THE
MONTHLY
BUSINESS
more uncertain outlook for coke, have been held up.
Some open-hearth steelmakers have been unable to
put on contemplated additions to capacity because of
the lack of coal. It is indicated that the pinch over
the accumulated shortage of coal and coke supplies
arising from the contracted mine operations will be felt
more definitely from this time forward.
The month of June began with 175 blast furnaces
in operation, a gain of 14 over the corresponding date
in April, according to The Iron Trade Review. The
total output in May was 2.309,348 tons, or a daily
average of 74,495 tons, compared with an output of
2,070,238 tons in April, and a daily average of 69,008
tons. May pig iron production shows an increase of
167 per cent over the low point of activity last July.
Steel ingot production in May, according to the partial
returns collected by the American Iron and Steel In
stitute, showed an indicated annual rate of approxi
mately 35,700,000 tons, compared with the annual
rate of 34,700,000 tons in April. The May rate of in
got output was equivalent to 82 per cent of the high
record of ingot production for the country in 1917.
Heaviest buying in the market is being contributed
by the automobile, railroad, building, and oil indus
tries. Railroad car orders in May totaled 18,240,
bringing the total the first five months to 87,225, or
more than three times that for the entire year of 1921.
Structural steel lettings of the country in May were
approximately 146,900 tons, or at the rate of 82 per
cent of shop capacity. This is a little less than in April
REVIEW
3
when the rate of bookings was 92 per cent, equivalent
to about 165,900 tons.
The reduction of 50 cents per ton in Lake Superior
ore prices, which came after some weeks of man
euvering over railroad freight rates, both upper lake
and lower lake, has tended to clarify the situation.
Ore is now being moved more freely from the mines
and also from the docks to the furnaces, and the re
mainder of the season promises to be marked by sharp
activity. The 50-cent reduction in ore at lower lake
ports, plus the 10 per cent cut on freight rates from
lower lake ports to destination, effects a saving of
from $1 to $1.50 per ton of pig iron to the furnaces,
depending upon their location. This is not likely to
have much bearing on either pig iron or steel prices,
however, as apparently these reductions have been dis
counted by the market.
The general price situation in iron and steel is
reflected by the composite of 14 products compiled by
The Iron Trade Review. The increase in this com
posite has been comparatively small during the past
month. On June 14 the average stood at $36.74, as
compared with $36.60 May 17 and $36.49 for all of
May. The recent low point was $32.80, the week of
March 22. The June, 1913 composite was $26.78.
Some scattered advances on common labor rates
are beginning to appear among the iron and steel
works. This is significant of some labor shortages.
This situation, however, is not general and is confined
to certain localities.
Ore M ovement Speeds Up Lake Shipping; Shipping Orders
Respond to Rate Reductions
The lake trade is in much better shape than it was getting around pretty fast. The movement for May
a month ago, due almost entirely to the increase in was only 1,585,305 tons, which was a decrease of about
shipments of ore, and with a normal coal movement 1,000,000 tons compared with May, 1921, when the
there would be employment for all the boats. Lake fleet loaded 2,594,027 tons. Shipments for June will
carrying charges on ore were fixed at a cut of about show an increase over last year, and, according to the
12% per cent or 10 cents a ton, making the rates from present line-up, some of the contract boats will be
ports at the head of Lake Superior 70 cents, Marquette kept busy the rest of the season.
63 cents, Escanaba 52% cents to Lake Erie ports and
There is less ore in store at this end of the route
42 cents to South Chicago. The cut was greater than
than
there was a year ago. On June 1 the Lake
some of the vessel men figured on, and made the rate
Erie
docks were holding 6,493,045 tons of
for a large amount of tonnage that has been tied up
ore,
and
on the same date last year stocks
on long time contracts.
Much of the ore that
There was a big increase in shipping orders during were 8,083,839 tons.
will
be
brought
to
Lake
Erie ports will be
the last half of June, due to the fact that a reduction
sent
forward
direct
to
the
furnaces,
and dispatch will
of 10 per cent was made in rail rates on ore at both
ends of the route. Some of the furnace men held depend largely on the car supply.
off until action along that line was taken by the In
Coal will have to move pretty rapidly when the
terstate Commerce Commission.
miners* strike is settled in order to supply the de
The cut in the rail rate from lower lake ports to the mands of the northwest, as the movement has been
furnace was made effective June 15, and, while July very light and stocks at the upper lake ports are low.
1 was the date fixed by the Interstate Commerce Com Shipments for the season up to June 12 were only
mission for the change at the upper lake ports, some 2,565,176 tons, which was a decrease of 4,132,750 tons,
of the railroads put the cut from the mines to the compared with the same time in 1921, when the move
upper lake ports in force June 19. A big addition was ment was 6,697,926 tons. Shipments to the upper
made to the fleet after the first week of June, when lake ports for the season were only 1,898,130 tons,
some of tbe shippers started to load outside vessels as 667,146 tons of the coal floated went to Lake Erie
they have under charter.
ports that do not usually receive coal by lake. There
Most of the big carriers $re going up light on ac lias been quite a let-up in the grain movement the last
count of the scarcity of coal cargoes and they are few weeks.
4
THE
MONTHLY
BUSINESS
REVIEW
General Tone of Manufacturers Good; Automobile and Building Industry, Together
With Increased Buying By Railroads, Outstanding Features
With regard to general industrial conditions there
are three lines of industry which are outstanding this
month; the building industry, the making of pleasure
automobiles, and railroad purchases.
Thf National Automobile C am ber of Commerce
reports that the 1921 registration of motor cars and
motor trucks was 10,448,000, a gain of 13 per cent
over 1920. The passenger car output for the firs quarter of 1922 was 48 per cent above the fourth quarter
production of 1921.
The United States Department of Commerce reports the production of cars and trucks for the entire
industry, with only a few companies missing, as follows: '
Total
Passenger Trucks
Motor
Cars
^ ehicles
9,204
90,842
January, 1922 ............ 81.638
February, 1922 ............ 109,039
12,868
121,907
March 1922 .............. 152,647
19,449
171,096
April, ’ 1922 ................ 196,512
21,944
218,456
May, 1922 .................. 231,699
24,603
256,302
The plate and window glass industry continues to be
in a very satisfactory condition.
The cork business is slightly more active than it was
thirty days ago. Whatever change there may be is
toward a broader demand. The insulation factories
are busy. The indications are that the fall demand
will be good.
The farm machinery line is showing a basic improvement, but actual business being done is still small
Makers of farm machinery are looking for a substantial increase after the present crops are harvested.
While in
few instances m e r v lants are
'
b
on the whole th are PQbab{ Pm nni
^ * ?Q ^ cent witi/considerable price cutting S id
wjt[1 business done on a close margin,
b
A large manufacturer of printing and lithographic
inks in this District, whose business reaches throughout the United States and into the shops of thousands
of printers, says, “These printers cannot be busy
without the demand from general business, and, as
our increase shows 48% per cent over May last, we
certainly feel greatly encouraged.”
The shoe industry in this District is quiet, as many
of the factories are still closed down because of a
wa£e disagreement. The general shoe business is
only fair.
Reports from the paint industry are very cheerful.
Production has increased 20 per cent during the past
thirty days. The largest demand is coming from the
manufacturers of automobiles and furniture. T he
dealers are also buying heavily in anticipation of a
good fall trade. The cost of production is higher than
a year ago. At present there is a firming of prices
for lead 0,ls and turPentine.
Lateness of Season Curtails Canning Pack
The late season is having its effect upon canning
crops. The pea crop will not be in excess of normal,
and may fall below as the spinach crop has done.
The situation in the com canning industry is becoming more unsatisfactory.
Wholesale grocers are placing future orders for all
kinds of canned fruits and vegetables in larger quantitles than last year.
Business in the wholesale grocery line showed a
decided improvement during May over April. Prices
are steady with an upward tendency on the part of the
most important staples.
Market for Crude Oil Good ; Gasoline Situation Causing Trouble
For Independent Refineries and Jobbers
The oil market during May was advantageous for
the producer and refiner and difficult for the jobber,
While there were no increases in crude prices, the
market for crude was stable and the producers enioved an instant market for all the oil they could bring
to the surface. The independent jobbers, having gone
through the winter without building up their gasoline
stocks against spring demand, were forced into the
market early in April and their buying continued on
; „r
CMii thnM'ffii m -iv
an
T
i a vu
The urgent demand of the jobbers, coupled with
the fact mat about half of the independent refineries
had been closed down for months, made heavy inroads
into the available supply of gasoline, and caused the
price at the refinery to mount steadily. Refiners, in
view of market conditions, for the most part refused
to entertain contract proposals and would sell only on
spot prices. In addition to these circumstances, some
of the exporting companies early in May came into
the market heavily for high gravity gasoline for shipment abroad, and continued bidding actively until afte r
the end of the month. The result of this demand
was to restrict still further the supply of gasoline available to the independent jobber and run up the price
to the point where in many sections of the country
jobbers’ margin is near a half cent a gallon.
,
.
,.
,
, , .
The increasing gasoline demand led some of the
independent refineries which were shut down to start
Up their plants, but this has not occurred to a sufficjent extent in May to affect the gasoline supply
VV3'
Throughout May the demand for kerosene was very
strong at all refining centers with prices on an ascending scale, showing that despite fears to the contrary the farmers used tractors extensively in their
spring plowing. The market for kerosene still re
THE
MONTHLY
BUSINESS
REVIEW
mains strong due to the fact that many refineries burning oil into gasoline, but also are buying considerare installing cracking systems by which they can ex- able quantities from other refineries,
tract a considerable percentage of gasoline from keroDemand for lubricating oil improved steadily though
sene. These plants not only are running their own slowly through May.
Crop Reports Very Favorable; Fruit Estim ated
A t 60 Per Cent of Normal
Reports on crop conditions in the Fourth District
continue to be very encouraging. The Ohio Depart
ment of Agriculture states that wheat is especially good,
and, with favorable weather for the remainder of the
season, Ohio should have a wheat crop of 42,798,000
bushels, which is 4,000,000 bushels above the average
and 14,500,000 bushels more than the poor crop of last
year. The United States wheat crop is forecast at 20,000,000 bushels above last year.
Oats acreage for this year is estimated at 1,517,000
acres, which is 6 per cent less than a year ago. Based
on present conditions, a crop of 53,260,000 bushels
is probable.
The condition of rye is placed at 92 per cent, which
is four points above the ten-year average.
The condition of hay is eight points more than the
average. Pasture is reported to be in excellent con
dition.
Fruit prospects indicate a 60 per cent crop. The
40 per cent loss is due largely to freezing, and it must
be remembered that the full effects of freezing may
not yet be fully apparent.
Shipments for the United States of thirteen leading
lines of fruits and vegetables for the week ending
June 10 were 12,075 cars, compared with 11,025 cars
the week previous. The increase for the week was
due to the heavier movement of cantaloupes, potatoes,
tomatoes, and watermelons. Shipments of early po
tatoes were 3,130 cars, an increase of nearly 1,000
cars over the week before.
The planting of burley tobacco in Kentucky has
been very large this year, and crop reports are favor
able. The Burley Tobacco Growers’ Association
made a second payment to its members on May 20,
and the third and final payment will be made after
the tobacco has been sold. The Association recently
made some sales of redried leaf. The organization
campaign in western Kentucky appears to be pro
gressing nicely and encouraging reports are coming
from that section.
The extent to which the farmers of the United
States are now utilizing machinery to aid them in their
work is shown by a recent report "of the Trade Record.
The value of farm implements and machinery as
reported in 1920 was nearly three times as much
as in 1910, five times as much as in 1900, and seven
times as much as in 1890. The official valuation of
farm implements and machinery in 1920 is $3,195,000,000, as compared with $1,265,000,000 in 1910, $750,000,000 in 1900 and $494,000,000 in 1890.
Advance In Price of Raw Materials And Demand For Cheaper Clothing Cause
Trouble In Cloth And Clothing Industries
The textile business is a little better than it was last
month. In some places a scarcity of skilled labor is
being felt, not only locally but also in the East. The
situation between the buyer and seller of cloth, how
ever, is very unsettled, and recent reports show no im
mediate hope for improvement. In spite of the fact
that the prices of raw materials used in the manu
facture of cloth are much higher than they were six
months ago, buyers still wish to purchase at the
prices prevailing at that time. The buyers say they
must do this because of the consumers* demand for
lower-priced clothing.
The opening of the new season, which will take
place shortly, is expected by the trade to indicate to a
large extent at what rate the industry will run for
the remainder of the year.
There has been little change in the men’s cloth
ing industry since last month, except that the con
tinued rise in the cost of raw material and textiles has
caused a number of large manufacturers to advise thei^
customers that after July 1 clothing prices will be
increased, the interim being established to permit all
those who have not yet had an opportunity to place
fall orders to cover. A large clothing manufacturer
reports that the situation is causing considerable
concern; that the public continues to demand cheaper
goods, and that the prospect of lowering prices for
the spring of 1923 has disappeared.
The general undertone of business seems to be
strengthening, though orders for fall are currently
reported as spotty, not only in reference to territorial
buying but also in reference to the character of goods
being purchased.
Because of the fact that the increase in price of
farm products will not be fully reflected in increased
buying by the farmer until the new crops are har
vested, industrial recovery has been more rapid than
agricultural. The moral factor of the higher level of
farm product prices is, however, already perceptible,
and the last sixty days have shown an improvement
in retail business.
The past month has brought forth very marked
improvements in the knit underwear situation. The
retailer has commenced to buy from the jobber, and
the jobber is feeling more confident again. The early
commitments of the jobber for fall are proving in
adequate, and he is re-ordering in substantial quanti
ties. Immediate spring business has also been active,
and orders are coming in regularly. With reference
to the advance in the price of cotton and worsted
yarns, and the demand by the consumer for lower
prices, a situation similar to those existing in cloth-
6
THE
MONTHLY
BUSINESS
making and other lines is much in evidence, and it is
putting a damper on the jobber’s enthusiasm.
A manufacturer of fancy knit goods reports that
business in that line has picked up wonderfully within
REVIEW
the last few days. The jobbers have been putting off
buying for a long time, but now they are sending in
orders for fall delivery. At the present time, he says,
the company has all the business it can take care of!
Bituminous Coal O utput Running About 5,000,000 Tons Weekly;
Anthracite Deadlock Unbroken
A month ago there were indications that soft coal
production was growing, due largely to the fact that
non-union mines were increasing their output. Re
cent reports of the Geological Survey show this to be
true. Production during the sixth week of the strike
was approximately four and one-half million tons,
and in the tenth week (June 5-10) more than five
million tons were mined.
According to present indications the eleventh week
is expected to show a decrease. It started out well,
but congestion of railroad yards and sidings in cer
tain districts of Southeastern Kentucky began to in
terfere with the placement of empty cars at the mines.
As a consequence there were fewer cars loaded.
The average production of bituminous coal since
the first of April has been approximately 4,250,000
tons weekly. The average consumption of bituminous
and anthracite coal during the past year has been
about 9,500,000 tons weekly. The average produc
tion in 1920 was nearly * 13,000,000 tons weekly.
There was little change during the week ending
June 10 in the number of men on strike.
No break in the deadlock in the anthracite region
has been reported, and production continues at prac
tically zero. The output is limited to a few cars of
steam coal dredged from the rivers.
Consumers, in some instances, apparently are await
ing the reduction in freight rates, which is scheduled
to take effect about July 1. According to coal dealers
this reduction will make no material difference in the
price of coal for, owing to the strike, they are com
pelled to secure their supply from other than the regu
lar fields, which may mean more transportation charges.
As business speeds up, a greater amount of coal is
required. Naturally consumers draw more heavily
upon their reserve stock, but, regardless of this, many
of the non-union fields do not seem to feel any undue
pressure even in the face of the strike.
It would appear that conditions are shaping them
selves somewhat similar to those existing in 1920. At
that time a strong demand was created, and buyers
needed coal at once. While it is still early in the sea
son, up to this time the tendency is reported to be in
the same direction.
Labor Scarcity Reported In Building Situation; Material Prices Harden;
Strong Demand For Hardwood Lumber
In common with other parts of the country the
Fourth District is experiencing, with the advance in
season, a marked improvement in building operations.
Now that the spring strikes and adjustments are for
the most part settled, many projects that were tem
porarily delayed are coming to the front, commanding
the available supply of building materials and com
mon labor. In marked contrast to conditions a few
months ago, reports are to the effect that there is
difficulty in securing workmen to meet present needs,
even though in some trades there has been a return
to war-peak wages. Whether the improvement will
be lasting under the latter conditions is a matter of
some concern to students of the industry. What
the result will be depends upon whether the public
will continue construction work at the present cost level.
Statistics show that the volume of home building in
suburban localities has doubled in recent months, as
compared with the same period a year ago. Rent
payers and prospective home owners are watching
the building situation closely, but they find no great
amount of encouragement in the indications of in
creasing construction and material costs.
There is a belief in the trade, however, that the
present freight-rate decision will give an added impetus
to the boom now under way and that it will have
a favorable effect upon material prices. The unmistak
able betterment in business conditions throughout the
country is reflected in the tendency toward greater
activity in commercial types of construction.
House rents for the average wage earner, according
to the National Industrial Conference Board, have
declined slowly from the peak of 71 per cent* above
the pre-war level reached in March, 1921, to 65 per
cent above that level.
The demand for hardwood lumber is strong. Oak
flooring, which is widely used in the building of
homes, is reported by a Fourth District manufacturer
to be far oversold. It will require quite a long
period, he says, to catch up with the demand. O ther
branches of the planing mill business show quite an
improvement, taxing mill facilities to full capacity.
Rubber Factories S till Running At Capacity; Production Being Watched
Many of the rubber factories in the Fourth District are continuing operations at capacity with plants
running 24 hours a day.
There is a feeling, which is quite general through
out the industry, that the present rate of production
The making of tires is a seasonal
industry and orders naturally fall off near the close
of the driving season. For this reason manufacturers
is pretty high.
THE
MONTHLY
BUSINESS
frankly admit they do not expect output to continue at
the present rate.
Manufacturers do not expect a repetition of the mis
takes made in 1920. An evidence that the danger of
over-production is appreciated is seen in the fact
that there are few instances of the hiring of unskilled
labor where it is not absolutely needed in the factory.
In addition to this, raw material is not being bought
in any large amounts to cover future requirements.
Sales of mechanical goods, which are considered
a good index of general conditions, are showing up
well and are reported to be continuing at about the
REVIEW
7
same rate that has been maintained during the past
twelve months.
According to The India Rubber Revietv, a serious
situation has developed in the rubber plantation in
dustry. During the past two years the planters have
made an effort to make production and consumption
balance by means of voluntary restriction, but this
plan has failed. Earnest efforts to put the industry
on an economic basis are very much desired by those
who are in close touch with the situation and who
realize the importance of a permanent and substantial
supply of crude rubber.
Transportation Gains Despite Coal Strike; Revenue Freight Loadings Heavier
The increase in the volume of traffic moving, which
was noted during April, continued in May, notwith
standing the fact of the coal strike.
Revenue freight loadings for this year are notice
ably higher than those for the corresponding period
in 1921, but considerably lower than loadings for the
same months in 1920. Since the week of May 6,
when the number of cars of revenue freight loaded
was 755,749, there has been a steady increase. Dur
ing the week ending May 13, there were 777,359 cars
of revenue freight loaded; for the week ending May
20, the loading was 792,459 cars, and on May 27,
821,121 cars.
On May 31 there was a total of 305,198 surplus
cars in good order throughout the country, or about
66,000 less than on April 30. On January 31 the
number of idle serviceable cars was 330,681; on Feb
ruary 28, 245,000; on March 31, 206,746, and on
April 30, 371,538.
A part of the decrease in the number of surplus
cars in good order may be accounted for by an in
crease of something over 15,000 in the number of bad
order cars. On May 15, there were 334,108 bad order
cars as against 317,783 on April 15.
The general reduction to be made effective on or
about July 1, as a result of the Interstate Commerce
Commission^ recent decision, has been well received
in this territory, but it is difficult to gauge with any
accuracy the effect it may have upon business, particu
larly as it is yet uncertain as to just how it will be
applied.
Selling Of Fall Garments Holds A ttention In Women9s Garment Industry;
Best Demand For Medium-Priced Garments
Activities of the manufacturers of women’s gar
ments are now focused on selling fall garments.
Orders for summer garments have practically
stopped, except for re-orders which can be filled from
stock. Salesmen are on the road with fall lines, and
buying is reported fairly good. Production in the
twenty-six houses of the association is either on fall
merchandise, either in the form of duplicates for the
salesmen or in fill orders. Factories are operating
at from 50 to 90 per cent capacity.
The warm weather has stimulated the business in
wash dresses and summer garments during the past
month. Business for the past thirty days is reported
as about the same as during the same time last year.
The number of pieces sold has been greater; the dol
lars and cents total shows little difference.
The effect of the rising market in both wool and cot
ton piece goods so far has been to stimulate sales. Early
purchases of piece goods by the manufacturers pre
vented any reflection of the rising cloth prices in the
wholesale prices of garments. The fall lines are, in
general, slightly cheaper than last year at this time.
The demand is for medium priced garments. The
summer demand for linens, voiles, eponges and canton
crepes. Fur-trimmed garments are preferred in the
buying for fall, bolivias and the soft fabrics made
in dressy styles with fancy backs and embroideries
sharing the demand with the tailored sport coats.
Collections are variously reported as fair, difficult
or not as good as a year ago.
Paving Brick Plants Experience Heavy Demands For Their Product;
Building A ctivity Speeds Up Common Brick Business
The predictions of paving brick manufacturers early
last spring that the present season would be a pros
perous one for their business apparently were well
founded. Paving programs throughout the country
are being pushed forward rapidly and up to this time
good progress has been made. Because of the fact
that work on the programs was started later than
usual, a more concentrated effort is in evidence and
shipments are more rapid. There is just so much
time in which to do the work, and the late spring
start means greater effort.
Brick plants had a heavy reserve stock on hand when
the spring season opened, but a recent report of the
National Paving Brick Manufacturers Association is
that practically all of this stock has been sold; that a
considerable amount has been shipped, and in several
8
THE
MONTHLY
BUSINESS
instances that capacity output for the remainder of
the season has been sold.
Recent reports are to the effect that brick mills
have a plentiful supply of labor to meet all demands.
The demand for paving brick appears to be pretty
well distributed over the country.
As yet the coal strike has not affected the paving
brick industry to any great extent. One reason for
this is because many of the plants have their own coal
mines, and are not dependent upon outside sources.
Then, too, some of the plants have contracts with
non-union mines to furnish their fuel supply. In
addition to these two factors, the majority of brick
manufacturers had a considerable reserve supply of
REVIEW
coal on hand when the strike started.
Due to the growth of the building industry, com
mon brick makers have been enjoying a healthy
business. For some time there has been a feeling
among brick men in certain centers where building
lias been resumed on a large scale that it could not
last. However, the fact that April and May and the
greater part of June have passed, without any signs
of diminishing demand, is encouraging.
It is difficult to determine just how long the
present prosperity in building lines will continue, but
one essential to continued activity is that labor’ and
building material people do not become overcon
fident.
Increase Of Newsprint, Advertising, And Printing Increases
Consumption Of Pulp And Paper Products
The best information we get from paper manufac
turers as to the consumption of paper is that the de
mand is increasing slowly. Printers are busier than
they were. Advertising, which is one of the princi
pal factors underlying the paper market, is on the
increase. The demands for advertising cover a wide
range of paper stock, from the cheapest to the enameled
cover stock. It is because of this range that ad
vertising is so important a factor in the trend of the
paper market. Newsprint has also showed a marked
increase. The general opinion of the paper manufac
turers of this District is that the paper industry this
summer will continue fairly satisfactory to good.
It is also generally believed that business in the fall
months should be distinctly better than this spring.
As in other industries, the capacity of the pulp
and paper mills was expanded during the period of
1914-1920 to take care of increased demand. Many
pulp and paper manufacturers have estimated that it
will take five years for the consuming power of
this country to catch up to the increased capacity of
the mills. These mills must also contend with the
importation of foreign pulp. However, this import
tonnage will doubtless decrease with the rehabilitation
of Europe. Besides this probability there are new
usages for the consumption of paper found almost
daily. One relief has been the large amount of high
grade pulp being used in the manufacture of imitation
silk, and hospital bandages.
Almost without notice conditions have improved in
the paper box-board industry. One large distributor
says that the volume of business transacted during
the first week of June proved to be the best in nearly
two years.
THE
MONTHLY
BUSINESS
REVIEW
9
Ohio Crop Sum m ary for 1920 and 1921—Com piled by The
D epartm ent of Agriculture
Acreage
1921
1920
*3,810,000
*3,731,000
3,150,000
3.213.000
f2,314,000
f2,395,000
1.614.000
1,540,000
116,000
116,000
Yield
Per Acre
1921
1920
41.0
43.4
1.35
1.27
12.4
12.7
44.2
23.0
58
100
Corn.........................................
Hay..........................................
Wheat.......................................
O ats.......... . .............................
Potatoes, Irish........................
Apples......................................
42,000 960
920
Tobacco...................................
63,666
191
5,593 410
Onions (Commercial).............
6,511
172,000
1.3
1.3
195,000
Clover Seed.............................
36,100
8.1 8.39
Sugar Beets.............................
44.000
1,728
2,977 1,752
2,899
Strawberries (Commercial)...
Peaches....................................
■97,660
27.7 21*.0
102,000
Barley.......................................
83,000
14.4 13.0
Rye...........................................
90.000
2,168
9.9
6.0
2,885
Cabbage (Commercial)..........
Maple S irup............................
Maple Sugar............................
3,000 103
107
3.000
Potatoes, Sweet......................
21,000
25.0
20.9
26,000
Buckwheat..............................
1,023 147
Celery.......................................
148
995
Pears........................................
' 4,660
80 ’
‘ ’6,666
Sorghum (for sirup)................
91
16,000
5.0
6.0
Timothy Seed..........................
20,000
8,000
Soy Beans................................
7.0
8.000
* Includes acreage cut for silos,
t Includes acreage of winter and spring wheat.
'
8.0
Corn................................................
H ay.................................................
Wheat.............................................
Oats.................................................
Potatoes, Irish...............................
Apples.............................................
Tobacco..........................................
Onions (Commercial)...................
Clover Seed....................................
Sugar Beets....................................
Strawberries (Commercial)..........
Peaches...........................................
Barley.............................................
Rye.................................................
Cabbage (Commercial)................
Maple Sirup...................................
Maple Sugar..................................
Potatoes, Sweet.............................
Buckwheat.....................................
Celery.............................................
Pears...............................................
Sorghum (for sirup)......................
Timothy Seed..............................
Soy Beans....................................
f t Based on seasonal price.
Price Per
Dec.
1920
$0.68
19.50
1.65
0.50
1.35
1.15
0.13
1.25
12.30
9.89
0.20
2.15
0.82
1.35
42.00
2.75
0.40
1.75
1.05
1.20
1.52
3.20
4.00
Unit
1
1921
$0.41
11.50
1.08
0.33
1.55
2.25
0.15
2.40
10.70
6.00
0.25
3.65
0.51
0.84
61.00
2.00
0.32
1.78
1.05
2.45
2.75
1.00
2.86
3.00
Production
1920
1921
165,354,000
152,971,000
4,252,000
4.081.000
30.430.000
28.697.000
68.068.000
37.122.000
11,600,000
6.728.000
13.960.000
3.390.000
60.480.000
38.640.000
2.670.000
1.068.000
254.000
224.000
356.400
303.000
5,079,100
5,144,160
3.238.000
335.000
2.825.000
2.037.000
1.296.000
1.079.000
28,560
13,010
474.400
280.000
66,800
42,700
309.000
321.000
543.000
525.000
146,265
151,400
478.000
126.000
546.000
320,000
120.000
80,000
64,000
56,000
Farm Value
1920
1921
$112,440,720
$62,718,100
82,914,000
46,931,500
50,209,500
30,993,000
34,034,000
12,250,300
15,660,000
10,428,400
16,054,000
7,627,500
7,862,400
5,796,000
3,337,500
2,563,200
3,124,200
2,396,800
3,524,800
1,818,000
ftl,015,800
t t l >286,000
6,799,800
1,139,000
2,316,500
1,038,800
1,749,600
906,360
1,199,500
793,610
1,304,600
560,000
26,700
14,000
541,000
571,000
570,150
551,250
370,940
573,600
346,500
830,000
320,000
384,000
228,800
256,000
168,000
Unit
of
Meas
ure
ment
Bu.
Ton
Bu.
Bu.
Bu.
Bu.
Lb.
Bu.
Bu.
Ton.
Qt.
Bu.
Bu.
Bu.
Ton.
Gal.
Lb.
Bu.
Bu.
Cr.
Bu.
Gal.
Bu.
Bu.
Unit
of
Meas
ure
ment
Bu.
Ton.
Bu.
Bu.
Bu.
Bu.
Lb.
Bu.
Bu.
Ton.
Qt.
Bu.
Bu.
Bu.
Ton.
Gal.
Lb.
Bu.
Bu.
Cr.
Bu.
Gai.
Bu.
Bu.
10
THE
MONTHLY
BUSINESS
REVIEW
Debits to Individual Accounts
(In Thousands of Dollars)
Week End- Week End
Week End
ing June
ing June
ing May
15, 1921
Increase or Decrease
14, 1922
17, 1922
Amount Per Cent (273 Banks)
(324 Banks) (324 Banks)
$ 14,321
$ 14,025
—$ 642
— 4.6
Akron............................... $ 13,383
2,231
197
8.8
Butler, Pa.*....................
2,428
7,813
596
7.6
Canton*...........................
8,419
63,034
67,477
513
0.8
Cincinnati.......................
67,990
126,580
120,731
7,892
6.5
Cleveland........................
128,623
28,397
27,430
—
291
— 1.1
Columbus........................
27,139
1,061
250
23.6
Connellsville*..................
1,311
11,985
13,891
— 1,478
— 10.6
12,413
D ayton............................
6,602
6,513
—
261
— 4.0
Erie..................................
6,252
4,568
4,662
—
428
— 9.2
Greensburg......................
4,234
878
—
113
—12.9
Homestead*....................
765
3,595
4,410
267
6.1
Lexington........................
4,677
3,125
—
153
— 4.9
Lima*...............................
2,972
1,137
7
0.6
Lorain*............................
1,144
1,935
260
13.4
New Brighton*...............
2,195
2,575
3,080
479
15.6
Oil City............................
3,559
171,254
147,210
7,743
5.3
Pittsburgh........................
154,953
3,479
3,476
550
15.8
Springfield........................
4,026
29,242
38,570
— 3,549
— 9.2
Toledo..............................
35,021
2,557
142
5.6
Warren, O .*....................
2,699
8,244
8,347
533
6.4
Wheeling.........................
8,880
10,511
11,011
926
8.4
Youngstown....................
11,937
2,566
—
37
— 1.4
Zanesville*......................
2,529
T otal........................ $507,549
$494,146
$13,403
* Debits for corresponding period in 1921 not available
2.7
$484,387
Increase or Decrease
Amount Per C ent
—$938
— 6 .5
4,956
2,043
— 1,258
7 .9
1 .6
— 4 .4
428
350
334
3 .6
— 5 .3
— 7 .3
1,082
30.1
984
— 16,301
547
5,779
3 8 .2
— 9 .5
15.7
19.8
636
1,426
7 .7
13.6
—$1,300
— 0 .3
—
—
Comparative Statem ent of Selected Member Banks in Fourth D istrict
(In Thousands of Dollars)
June 14,
1922
(84 Banks)
Loans and Discounts secured by U.S. Government obligations $ 32,332
329,809
Loans and Discounts secured by other stocks and bonds...
Loans and Discounts, all other................................................
613,162
U .S . Bonds.............. ...............................................................
142,446
U. S. Victory Notes...................................................................
8,220
U. S. Treasury Notes.................................................................
21,773
U. S. Certificates of Indebtedness...........................................
9,593
Other Bonds, Stocks and Securities.........................................
276,107
Total Loans, Discounts and Investments...............................
1,433,442
Reserve with Federal Reserve Bank.......................................
99,659
Cash in V ault.............................................................................
28,891
Net Demand Deposits...............................................................
818,241
Time Deposits.............................................................................
482,221
Government Deposits.......... ....................................................
25,722
Total Resources at date of this report....................................
1,860,984
May 17,
1922
(84 Banks)
$ 33,700
326,919
614,704
136,018
7,580
24,775
5,173
274,996
1,423,865
98,257
26,401
810,057
472,425
13,975
1,827,401
Inc.
• » • » .
2,890
• •♦ • »
6,428
640
4^420
1,111
9,577
1,402
2,490
8,184
9,796
11,747
33,583
Dec.
1,368
1,542
3,002
;••••
Wholesale Trade
Percentage Increase (or Decrease) in Net Sales During May, 1922
as Compared with April, 1922 and May, 1921
N et Sales (selling price) during May, 1922, compared with
April, 1922......... .............. .........................................................
N et Sales (selling price) during May, 1922, compared with
May, 1921.....................................................................................
Dry Goods
Groceries Hardware
2.0
12.8
12.6
—4 .5
_ 7 .3
86
Drugs
1.6
—1.9
THE
MONTHLY
BUSINESS
REVIEW
II
D epartm ent Store Sales
Percentage of net sales (selling price) during May,
1922, over net sales (selling price) during Cleveland Pittsburgh Cincinnati Toledo Other Cities
0.7
2.5
same month last year.....................................
6.3
6.7
— 3.5
Percentage of net sales (selling price) from January
1, 1922, to May 31, 1922, over net sales
- 6 .7
15.8
• 5.3
7.0
- 6.9
(selling price) during same period last y ear.
Percentage of stocks at close of May, 1922, over
7.6
—0.4
- ! .8
- 0.2
- 7.5
stocks at close of same month last year. . . .
Percentage of stocks at close of May, 1922, over
- 3.9
- 5.9
- -4.6
—2.5
- 1.2
stocks at close of April, 1922.........................
Percentage of average stocks at close of each
month this season (commencing with January
1,1922) to average monthly net sales during
368.3
352.1
522.0
467.4
455.4
the same period...............................................
Percentage of all outstanding orders (cost) at
close of May, 1922, to total purchases (cost)
5.2
8.9
5.6
7.7
4.3
during the calendar year, 1921..........................
District
1.0
- 10.5
-
1.3
-
3.7
396.3
5.7
Building Operations For Month of May, 1922-1921
Permits Issued
NTew Construction Alterations
1921
1922
1922 1921
102
236
211
90
Akron...........
94
83
Canton.........
161
125
263
320
Cincinnati...
489
329
874
541 1,242 1,155
Cleveland1". .
175
165
Columbus.. .
517
331
119
121
D ayton........
231
255
47
Erie..............
84
138
130
82
Lexington. . .
57
47
10
177
209
Pittsburgh.. .
396
558
56
36
99
82
Springfield..
255
317
Toledo..........
247
403
24
59
64
Wheeling... .
95
42
61
Youngstown.
202
148
Valuations
New Construction
Alterations
Increase or Decrease
1922
1922
1921
1921
Amount Per Cent
364,556 $ 348,557 $ 69,420 $ 48,860
36,559
9.2
478,258
196,805
50,980
294,288
38,145
125.3
2,883,675 1,717,315
344,205
1,359,610
72.8
150,955
7,458,652 3,447,345 2,615,515
456,930 6,169,892
158.0
1,422,160 1,168,020
155,840
139,740
270,240
20.7
598,335
549,524
76,198
59,444
10.8
65,565
204,672
273,897
53,187
61,685
60,727
22.8
196,200
55,225
29,142
20,548
149,569
197.4
3,260,204 1,357,392
376,809
203,871
2,075,750
133.0
126,180
12,900
95,265
76,100 — 94,115 —46.5
274,010
1,081,470
246,600
174,485
879,575
196.1
366,235
52,390
37,704
3,418
348,131
623.8
290,720
558,095
37,820
27,825
277,370
87.1
$
Total.
4,066 2,853 2,844 2,591 $19,037,002 $9,788,155 $4,106,320 $1,462,006 $11,893,161
* Figures include East Cleveland, Lakewood, Cleveland Heights and Shaker Heights.
105.7
Movement of Livestock a t Principal Centers in Fourth Federal
Reserve D istrict For M onth of May, 1922-1921
Sheep
Hogs
Calves
1921
1921
1922
1922
1922
1921
115,900 123,204 42,752 45,231 18,344 16,899
101,830 74,935
17,401 17,703 16,421 13,968
53
4,312
6,619
105
310
189
996
13,212
10,193
434
793
768
218
10,303
8,967
619
720
764
188,363 150,816 104,421 77,409 23,961 20,047
5,070
349
761
4,873
345
345
9,602
659
11,174
449
705
1,185
1,873
391
249
1,368
1,750
2,229
Purchases for• Local Slaughter
57,498
11,475 13,896
16,461
77,875
8,092 11,628
68,414
14,399 15,118 14,653 13,013
7,051
56,471
50
17
481
1,351
105
97
208
80
575
350
10
32
134
78
11,296 14,854 10,237 10,705
6,384 42,675
36,115
520
37
56
449
1,873
1,368
391
249
2,229
1,750
Columbus..
Dayton.......
Fostoria.. . .
Pittsburgh.
Springfield.
T oledo...
Wheeling.
Cattle
1922
1921
17,575 19,707
10,146
8,220
334
17
2,016
1,224
621
151
32,742 29,756
220
153
631
951
380
449
Columbus..
Fostoria...
Pittsburgh.
Springfield.
Wheeling.
14,015
9,109
186
53
6,520
98
380
• ♦ •
. . . . .
Cars
Unloaded
1922
1921
1,845 2,073
1,765 1,384
19
15
” 27
i3
3,580 3,553
1
* 110
157
17
15
'
FOUBTM
FEDERAL BESEBVE
DISTRICT
v '
_
H C N T u
«■» BOUNDARY or OISTftlCT
• • •
BOUNDARIES Of BRANCH TERRITORIES
----------BOUNDARIES Or S T A T C ft
®
O
. c it y
federal
reser v e
bank
fed er a l
reser v e
branch
erne*
@FedFRASER