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The Monthly Business Review Covering financial, industrial, and agricultural conditions in the Fourth Federal Reserve District VOL. 6 CLEVELAND, OHIO, JULY 1, 1924 “EFFORTS TO MAINTAIN A HEALTHY RELATIONSHIP BETWEEN PRODUCTION AND CONSUMPTION HAVE RESULTED IN AN OTHER SHARP RECESSION IN THE OUTPUT OF MANUFACTURED GOODS. UNEMPLOY MENT, TOO, HAS SHOWN A CONSEQUENT INCREASE, BUT WHILE THERE HAS BEEN A WIDESPREAD CURTAILMENT OF OPER ATING TIME WHICH AUTOMATICALLY SPELLS LESSENED EARNINGS BY THE WORKERS, WAGE RATE REDUCTIONS HAVE BEEN COMPARATIVELY FEW.”—EDITORIAL FEDERAL RESERVE BANK of CLEVELAND D. C. Wills, Chairman of the Board (COMPILED JUNE 22, 1924) NO. 7 2 THE M O N T H L Y B U S I N E S S REVIEW Editorial E FFORTS to maintain a healthy relationship between produc tion and consumption have resulted in another sharp recession in the output of manufactured goods. Unemployment, too, has shown a consequent increase, but while there has been a wide spread curtailment of operating time which automatically spells lessened earnings by the workers, wage rate reductions have been comparatively few. Sentiment in the iron and steel industry has improved. Here and there evidences of renewed buying are seen. Conditions in the Mahoning Valley are reported to be brightening perceptibly. Dominating features of the downward movement of business have been its rapidity and its orderliness. Within three months plant operations in many instances have been reduced to points which are as remarkable for their depth as the early spring expansions were for the heights to which they carried. Regardless of this there have been few evidences of forced liquidation. Throughout the country gen erally there has been a determination to avoid anything even re motely resembling a rout. The rapidity of the change is directly in line with present methods of doing business; methods which favor quick movements either of expansion or contraction, and which are capable of effecting within a few months realignments which previously required a year or more, thus adjusting production without delay to visible consumption. Promptness in beginning the balancing job when anticipated sales failed to materialize sufficiently to keep pace with expanded production was responsible in no small degree for the methodical nature of the movement. The absence of heavy inventories was also a material aid. Sound financial conditions capable of supplying abundant credit proved a stabilizing influence. Moreover, industry has not been so free in years from the restricting obstacles of short ages of labor, transportation service and equipment, and raw ma terials. But the biggest factor of all has been the faith in the ability of the American people to buy what they need, plus the knowledge that while the demand for goods may be delayed in reaching the factories, it is bound to arrive eventually and that hollows caused by slack production will have to be filled. In viewing the present business situation it seems fair to remember these things, particularly at a time when it is easy to see disturbing developments to the exclusion of those which favor renewed activity. THE M O N T H L Y B U S I N E S S R E V I E W 3 Slowing Down in Loans to Member Banks; N um ber of Borrowing Banks Increases; Savings Higher Between April 20 and May 20 there was a slowing down in the demand for funds by our member banks, rediscounts during that period showing a decline of $13,454,000. An occasional spurt appeared in the re quests from agricultural communities, but taking the period as a whole there was practically no change in these sections. As stated last month a portion of the present slack demand for accommodations is attributable to general trade inactivity while the principal reason is that the banks are able to take care of their customers without recourse to this bank. Contrary to the downward trend in the amount of loans, the number of banks borrowing from the Fed eral Reserve Bank of Cleveland on May 31 showed an increase of 46 as compared with the same date a year ago. The loans and discounts of member banks are be ginning to reflect the present business recession. At the close of business on June 18, 79 banks reported a total of loans and discounts of $1,147,315,000. On May 7 they stood at $1,161,199,000. There is here shown a de crease of $13,884,000. Recently the rediscount rate has been reduced in nine of the twelve Reserve Banks: New York, Boston, and Philadelphia now have a rate of 3 V per cent. Cleveland, Richmond, Atlanta, St. Louis, Chicago, and San Francisco have a four per cent rate, wdiile that of Dallas, Minneapolis, and Kansas City remains at 4l/2 per cent. The rate reduction at Philadelphia is limited to ninety-day paper. 2 The reserve ratio of this bank and also of the System continues to move upward. On May 20 the ratio of this bank was 81.5 per cent while on June 20 it was 82.6 per cent. That of the Federal Reserve Sys tem on May 20 was 83.2 per cent compared with 84.3 per cent on June 20. Reports from 67 banks in this District for the month of May show an increase in savings deposits. On May 31 of this year savings of these banks totaled $772,831,896 as against $763,934,858 on April 30, an increase of 1.2 per cent. At the close of May a year ago they totaled $698,473,769 thus showing an increase for the year of 10.6 per cent. According to figures given out by R. G. Dun & Company, there were 147 commercial failures in the Fourth District during May, 1924, one less than in April but 19 more than in May last year. Liabilities of firms which failed in May this year totaled $4,514,298 as compared with $13,040,996 in the previous month, a drop of $8,526,698 or 65.4 per cent. In May, 1923, they were $7,754,229 or 41.8 per cent higher than May this year. In the United States during May, 1816 failures oc curred wThile in the previous month there were 1707, an increase of 109 for the month and of 286 over May a year ago. Liabilities for May in the entire country totaled $36,590,905 as compared with $48,904,452 in the previous month, a decrease of $12,313,547, or 25.2 per cent. In May, 1923, they were $41,022,277, or 10.8 per cent higher than in May this year. Sentiment in Iron and Steel Industry Improves Slightly; Buying of Storage Tanks by Oil Companies a Conspicuous Development After a convulsion from record-breaking to low pro duction within a period of 60 days which available records show no previous parallel in severity, the iron and steel industry apparently is again at or near the point of equilibrium. From the peak point in March, output by June 1 had fallen 40 per cent. The question is raised whether this unprecedented readjustment of production has not exceeded the limits of current con sumption. In several lines evidence of a moderate increase of buying has appeared in recent weeks and bookings for the first half of June with some companies, notably the Steel Corporation, show a gain from the corre sponding period in May. Buyers are extremely cautious in placing any orders except for requirements im mediately in sight and initiation of new enterprises gen erally is lagging. The favorable point of the situation remains the low stock- of material which it is under stood consumers are now carrying. Any more cheer ful turn of sentiment or new business in diversified lines, therefore, promises to release a considerable vol ume of buying. The extraordinary manner in which new buying has been shut of¥ is reflected by the abnormal condition of the unfilled orders of the Steel Corporation in May. At the end of that month unshipped tonnage of the leading producer totaled 3,628,089 tons or the smallest aggregate since November, 1914, and 12 per cent under the low point shown in the depression of 1921. Only twice since 1912 have unfilled tonnage bookings been so small. At the present date, the latter part of June, opera tions of the whole iron and steel industry are around 45 or 50 per cent on the average. In certain spots such as the Mahoning Valley they have fallen below this point or to practically 30 per cent. Certain other districts, however, after having receded sharply, are showing more tendency to work higher. The Carnegie Steel Co. having been down to 42 per cent has touched 56 to 58 per cent during the past week or two. In May, steel production for the country had fallen to 30,270,000 tons on an annual basis. In March, the rate was at 50,000,000 tons per annum which was the high 4 THE M O N T H L Y B U S I N E S S REVIEW record point for all time. The May loss against April was 24.1 per cent which brought production to the low est point since August, 1922. Pig iron output in May as compiled by Iron Trade Review measured the same remarkable contraction. The decline that month as against April was 21 per cent or 22,658 tons which was the greatest in any similar period on record, even exceeding the reduction at the time of the steel strike in 1919. The net loss in active furnaces in May was 46 bringing the total for the past two months to 81. Furnaces in blast at the end of May were 188 compared with 269 on the correspond ing date in March. Total production in May was 2,631,248 tons or a loss of 594,859 tons from April. The best operations of the steel mills are with the tubular and tin plate plants, these managing to maintain about 65 or 70 per cent of production. In building steel some revival in recent weeks has made its ap pearance, the most notable feature of which has been the large number of new inquiries and of awards. At the present time it is estimated that probably 150,000 tons of live work are being figured. Total structural awards in May according to the government figures showed less recession than in some other lines. They were only 10 per cent under April and 19 per cent under February, the banner month of the present year. The conspicuous development in recent weeks has been the resumption of buying of storage tanks by the oil companies. One phase of the situation which has been disappointing to producers has been the fail ure of the railroads to specify freely against contracts for steel rails for 1924 delivery- These contracts which were booked over a period of som^ months past have constituted one of the substantial elements of the mills position and recently were estimated at approxi mately 2,500,000 tons. Pig iron prices have decreased and have induced a considerable number of buyers to come into the mar ket with orders for about 400,000 tons. Some buyers are closing on their requirements to the end of the year The principal purchasing has been done by radiator heating equipment, and pipe interests, although the move ment as it has expanded is including companies in many diversified lines. One large radiator company is credited with purchases of 75,000 to 80,000 tons. Prices of pig iron having fallen $1 and $1.50 lower during the past month are now at the lowest basis since the latter part of 1922 when a buying movement was stimulated that carried up prices over a period of four months. The same situation applies to rolled steel products Having undergone severe declines, $2 to $3 per ton the finished steel market is better stabilized though still subject to softness. At the date of June 18, the composite of fourteen leading iron and steel productions of Iron Trade Review stood at $40.55, representing a decline for the sixteenth consecutive week. This in dex is now at the lowest point since December, 1922 Harmonious labor conditions in the iron and steel industry have been assured by the signing of the annual wage agreements effective June 30 in sheets, tin plate and bar iron on the same basis as that applying to the twelve months preceding. Automobile Production Shows Another Sharp Drop; Sales Fail to M eet Expectations There was an abrupt decline in automobile production in the United States during May. Figures received from the Federal Reserve Bank of Chicago show a decline of 16.2 per cent from April and a decline of 20.5 per cent from May of last year. The decrease was particularly noticeable in passenger cars which declined from 336,968 in April to 279,385 in May or 22.5 per cent, while trucks, on the other hand, de clined only from 34,977 to 32,326, or 7.4 per cent. Total May production was less than in any previous month in 1924, and was also less than in any month in 1923 with the exception of January, February, and December. Production of trucks shows up well in this comparison also, the May figure being exceeded only five times in the last seventeen months. The reason for this decrease in production is to be found in a surplus of stocks in the hands of the dealers, which in turn may be accounted for by unsatis factory buying on the part of the public. Recession in other lines of industry has cut into the number of potential buyers of automobiles. Although there is some uncertainty as to the outlook for production in the immediate future, indications are that dealers will be given a chance to work off their surplus stocks before production is resumed on a large scale. The National Automobile Chamber of Commerce reports that sales during May in several factories were the lowest in two years, and that still further curtailment of production for the next two months is planned On the other hand, Automotive Industries reports that several companies have June production programs ahead of May. T HE M O N T H L Y B U S I N E S S R E V I E W 5 Automobile Production 1923-1924 Figures Represent Practically Complete Production and Are Based Upon Reports Received Federal Reserve Bank of Chicago in Cooperation with the National Automobile Chamber of Commerce from Identical Firms Each M onth 1923 1924 Passenger Passenger Total Trucks Month Cars Cars Trucks 242,566 18,913 January... 287,211 223,653 28,247 280,794 21,411 February.. 336,284 259,383 30,399 353,590 34,063 M arch.. .. 319,527 348,287 33,061 380,579 36,786 April........ 336,968 343,793 34,977 392,446 42,373 May.......... 279,385 350,073 32,326 376,993 39,945 June......... 337,048 326,885 J u ly ...... 29,712 297,173 343,854 29,882 August 313,972 326,441 September. 27,841 298,600 363,882 29,638 October. .. 334,244 312,132 27,374 November. 284,758 302,562 27,275 December. 275,287 Total. .. 365,213 4,002,724 3,637,511 by the Total 315,458 366,683 381,348 371,945 311,711 Tire O utput Reduced; Manufacturers* Stocks High; Dealers in Good Position; Sales of Balloon Tires Pushed A further reduction in the output of automobile tires is evidenced by reports received this month from Fourth District rubber companies. The present output of reporting concerns is now about at the same rate (in some instances slightly lower) as that of last year. Some reductions in working forces have been made and it is now estimated that from 7 to 10 per cent of the tire builders in Akron are idle. This does not hold true in all instances, however, for the factory payroll of one of the largest concerns has shown prac tically no variation since January. While forces have been reduced in some of the departments of this con cern, increases have been made in others. The reduction in automobile output has hurt the sale of tires to car manufacturers considerably. Dealers’ buying is fairly satisfactory and is being stimulated by improved weather conditions. Dealers are in a good position in regard to stocks for they have been doing practically no speculating. Stocks in the hands of manufacturers are high as a result of heavy production schedules and the failure of the anticipated spring de mand to materialize. Balloon t:res continue to attract interest and manu facturers are making special sales efforts along this line. As an inducement to get the motoring public to more generally adopt the low pressure tires, most of the big companies have recently announced that they will give away sets of wheels, and in some instances rims, with each purchase of five full balloon tires. This new policy amounts to a considerable price reduc tion. Production of tire casings in April exceeded shipments by 294,037, according to reports from members of the Rubber Association representing about 80 per cent of the industry. Output in April totaled 3,307,478, compared with 3,427,692, in March and 3,539,326 in April, 1923. Shipments in April this year were 3,013,364, against 2,990,872 in March and 3,079,743 in April last year. Inventory on April 30 was 6,164,226, compared with 5,763,084 in March and 6,088,272 at the close of April, 1923. Inner tube inventories as of April 30 were 8,627,343, an increase of 5.7 per cent over March and 2.7 per cent over April, 1923. Production of tubes totaled 4,035.242, against 4,218,950 in the previous month and 4,259,558 in April, 1923; while shipments were 3,586,279, against 3,500,105 in March and 3,618,495 a year ago. Solid tire inventory at the end of April was 212,419, against 203,608 and 260,631, respectively, in March this year and April, 1923. Output was 69,534, an in crease of 1.2 per cent over March, but a decrease of 2.7 per cent from April, 1923. Shipments totaled 58,486, against 61,482 in March and 76,204 a year ago. 6 THE M O N T H L Y B U S I N E S S REVI EW Gasoline Consumption at High Rate; Refinery Operations Curtailed; Retail Prices Cut Consumption of gasoline has been at a high rate but gasoline prices at the refineries have gradually re ceded during the first three weeks of the month and are showing only a small degree of firmness in the final week. The weakness in the refinery gasoline market is largely the result of a psychological phase of the in dustry, according to National Petroleum News. Pro duction of crude oil, particularly in Oklahoma where two new fields were developed during the spring, and also in the Tonkawa field which was one of the dis turbing factors in the oil industry last year, has been increasing steadily since March through the first week in June. It has been in such volume that a reduction in prices paid for crude by leading purchasing com panies has been expected by independent gasoline and oil distributors. These latter have been purchasing so sparingly—buying only to fill current requirements —that prices were gradually forced to lower levels. The tide of production seems to have been stemmed temporarily and the prices of crude oil have not been lowered by any of the major purchasing companies in the Mid-Continent field. The lowness of the refined oil markets has resulted in a curtailment of refinery operations in the north western Pennsylvania oil fields, thus throwing back on the chief crude purchasing agency and pipe line com panies a great amount of oil. A reduction of 50 cents a barrel was made in the price of Pennsylvania crude recently. The crude oil situation in the east is still weak and many observers of the situation predict a further 25-cent decline to $3 a barrel for the Pennsyl vania grade oil. The retail price of gasoline has been weak and price cutting has been going on in parts of the Fourth Federal Reserve District. The major marketing com pany reduced wholesale and retail prices of gasoline 1 cent on June 23 and smaller distributors immediately met the reduction. Under normal conditions the price trend at this time of year is upward. The slackening in other industries has resulted in a lower demand for lubricating oils and prices of these products have been lower than in May. Prices at present seem to be more stable. Fuel oil was firmer toward the end of June than in the first half of the month, after having fallen to 75 cents a barrel in the Mid-Continent. Most of the demand in that field comes from the railroads and the volume of trade is proportional to the movement of freight. The production of gasoline during the month of April, according to the Bureau of Mine’s refinery statistics, amounted to 754,773,232 gallons, a daily in crease in production over the corresponding period of a year ago of 4,524,352 gallons or 21.9 per cent. Com pared with the output of the preceding month there was a daily increase of 1,183,357 gallons or 4.9 per cent. Stocks of gasoline on hand at the refineries in creased 36,381,737 gallons during the month of April showing 1,607,786,404 gallons on hand at the close of the month. Domestic demand for gasoline was 609 077,546 gallons, a daily average of 20,302,585 gallons as compared with the daily demand of a year ago of 16,190,559 gallons, an increase of 4,112,026 gallons daily or 25.4 per cent. The daily increase in domestic demand over March, 1924, was 4,941,18 gallons or 32.2 per cent. Exports increased 31,851,191 gallons over the preceding month and imports fell off 5,596 537 gallons during the month. The April production of kerosene was 203,185,921 gallons, an increase over the corresponding month a year ago of 21,237,562 gallons, while stocks increased 33,074,710 gallons over last year’s April figure, but decreased 38,928,307 gallons below the stocks at the end of March, 1924. Total stocks on hand at the end of April were 306,079,890 gallons. Domestic demand for this product increased 34,542,139 gallons during the month. The output of gas and fuel oils was 1,116,763 663 gallons, an increase of 2,351,938 gallons over the March production and stocks increased 45,683,595 gaj. Ions during the month. The production of lubricants decreased during April 4,160,300 gallons from the March output, but showed an increase of 6,273,858 gallons over the April, 1923 figure. Stocks increased during the month 1,309 845* gallons. Bituminous Coal Industry Shows Signs of Improvement; Coke O utput Drops Sharply Although production of bituminous coal in the United States has shown gradual improvement since the abrupt decline which took place during March and early April, it is still running considerably lower than during January and February and is only about 70 per cent of normal. Most of the mines in the Fourth District were operating at less than 50 per cent capacity dur ing June, and some were shut down altogether. The average weekly production for the United States for the four weeks ending June 7 was slightly over 7,000 000 net tons, as estimated by the Geological Survey This figure is about 3 per cent in excess of the av erage for the previous five weeks, but is 30 per cent under the corresponding figure for last year. Pro T H E M O N T H L Y BU S 1 N E S S R E Y l E W 7 duction for the week ending June 7 amounted to the coal situation, as stocks would have to be replen and increased above the level now considered 7,378,000 tons, the highest figure reached since March ished sufficient, in order to take care of the expansion of 29. activity. The opinion held in many quarters is that there Production of by-product coke was 2,786,000 net should be a gradual improvement in the bituminous tons during May, a decrease of 224,000 tons from coal industry, since indications are that consumption April. Production of beehive coke declined from 1,079,is catching up with production, and that some con 000 tons in April to 761,000 tons in May. The cause sumers have been drawing upon reserve supplies. of these declines in production may be found in a Furthermore, any increased activity in the manufactur sharp decrease in pig iron production, which was 19 ing industries would be reflected in an improvement in per cent less than during April. Freight Car Loadings Reflect Business Contraction; Purchasing by Carriers Falls Off; Earning Statem ents Less Satisfactory Revenue freight now being handled is considerably under the volume of last year but still very much greater than that carried in the early part of 1922. During the week ending June 7, 910,707 cars were handled, a gain of 90,803 cars or 10.9 per cent over the previous week, according to figures compiled by the American Ra,lway Association. For the first twenty-three weeks in 1924, loadings totaled 20,471,943 cars as compared with 20,970,211 cars in the corresponding period last year and 17,442,444 cars in 1922. This is a loss of 2.4 per cent from last year but a gain of 17.4 per cent over 1922. This decrease in operations and also the less favorable earning statements, which are neither startlingly bad nor remarkably good, reflect the general falling off in business and the more rigid economy which the roads have been forced to adopt. The railroads, being the arteries of trade, are naturally hurt by trade contraction which inevitably means a shrinkage in the volume of traffic. With a considerable surplus of freight cars on hand, with the production of locomotives catching up with the demand, and with earnings on the decline, purchasing by the carriers is falling off. Some of the principal roads are reported to be curtailing the number of working hours in the case of the shop crafts. This is accounted for by the large number of cars in good order and also by the diminished volume of traffic. Car ly continues to be more than ample, there being a s^ plus of 338)526 cars Qn May 31 FRailroad authorities expect this surplus to be absorbed to some extent during the next two or three months. Actual transportation conditions are good and in most cases deliveries are being made promptly and upon dependable schedules. Complaints are rare. r ^0 ^°'Y*n£ table prepared by the Department of C“ £,e ,g lve,s the shipments of locomotives in May and unfilled orders as of May 1 , with comparisons for ear 1 r m0n S * LOCOMOTIVES Shipments Unfilled Orders 1924 Total Domestic Foreign Total Domestic Foreign January .......... 151 147 4 376 344 32 February — 99 92 7 499 466 33 March .............. 132 128 4 534 494 40 April .............. 73 63 10 640 586 54 93 18 643 589 54 May ............... HI Report on Agricultural Conditions in the Fourth Federal Reserve District OHIO Wheat—The wheat crop has improved somewhat since our last report, particularly in the northern part of the State where there was less damage from winter killing than in some of the southern sections. In south ern and central Ohio the plants are stooling well but the stand is too poor to produce an average crop. Steady rains have assured a heavy growth of straw but it is still too early to determine how well the heads will be filled. Present conditions indicate a crop of around 33,724,000 bushels for the State. Oats—According to the statistician of the Ohio De partment of Agriculture, there has been a heavy in crease in the oats crop in central, southern, and south western Ohio as a result of the general inability of these regions to obtain sufficient labor last fall to cut the corn and prepare the ground for wheat. In north ern Ohio there was a considerable decrease, however, so the net increase for the State has been small. Corn—Corn planting was at least a month later than usual and it is doubtful if the farmers succeeded in planting the acreage which they had counted on. Where the crop is through the ground it is in need of cultivation, particularly in the bottom lands. Hay—The hay crop is generally reported to be in a very satisfactory condition, and is now estimated by the Department of Agriculture to be 20 per cent above this time last year. The alfalfa crop is estimated at 98 per cent of that of a year ago. In some districts the clover crop was frozen out last winter. Floods have damaged meadows to some extent. THE M O N T H L Y B U S I N E S S R E V I E W Canning Crops—Prospects for canning crops in this District are not as good as they were a month ago. The pea crop has been damaged by continuous rains, and in some cases hail and high water; consequently the harvest which is now under way is not bringing the results which were promised earlier in the season. Sweet corn planting has been delayed and probably from 40 to 50 per cent of the entire acreage will be planted late in June whereas from 85 to 90 per cent of it should have been planted early in the month. The season may be such that the crop will be satisfactory, but as a rule late planted sweet corn does not yield either in quality or quantity like that which is planted earlier. Tomatoes, the other important canning crop in this District, are looking fairly well, although they were planted at least two or three weeks later than usual. Fruit—The Department of Agriculture reports that the Ohio fruit grower has a more encouraging outlook than last year. Present indications are for a larger apple crop. The crop is now estimated at 80 per cent of normal in comparison with 74 per cent in 1923. The peach crop is estimated at 45 per cent of a full crop and it is practically all in southern and Central Ohio. Along Lake Erie there will be no commercial crop of Elbertas and only a very small production of any other varieties. PENNSYLVANIA Wheat—Wheat maintained its appearance of thrifty growth during the past month and its condition over the State on June 1 was estimated at 85 per cent of normal. This indicates a yield of around 17 bushels, per acre, and a total production of 20,451,000 bushels, compared with an estimated production of 24,168,000 bushels in 1923. Reports of correspondents to the Pennsylvania Department of Agriculture indicate a decrease of 6 per cent in the spring wheat acreage. Oats—The area sown this spring is estimated to be 87 per cent of the 1923 acreage or 1,018,000 acres. The condition at the time the report was issued indi cated an average yield per acre of 28.6 bushels and a total production of 29,112,000 bushels, compared with 33,930,000 bushels, the estimated 1923 harvest. Rye—Rye fields promise a good crop. The average is now estimated at 93 per cent of normal for the en tire State, compared with 88 per cent of normal last year. The average y ield indicated is 16.7 bushels per acre and the total production 3,037,000 bushels. Hay—The area of cultivated varieties of hay is esti mated to be slightly less than last year. The crop of timothy and clover is generally reported to be satis factory. Pasture lands are better than they were at this time last year. Fruit—According to the Agricultural report the con dition of the apple crop in Pennsylvania on June 1 was higher than that of any of the other important apple growing states. The pear crop is estimated to be 88 per cent of normal, compared with 75 per cent last year. The June first condition of the peach crop showed an improvement of 3 per cent over that of 1923. KENTUCKY Wheat—Kentucky crop prospects indicate a sharp de crease in the production of wheat. The condition of the crop on June first was only 63 per cent of normal as compared with 85 per cent a year ago. This unsatis factory condition is a result of winter killing which practically ruined many of the fields. Corn—Unseasonable weather has delayed farmers in the planting of corn. Some seed which was planted early, rotted in the ground. In spite of this, however we are informed that present indications point to an unusually large crop. Farmers are depending upon late fall to help them out. Oats—The oats crop is reported to be looking good but the June first estimate of the State Department of Agriculture, shows a drop of more than 68 million bushels from the 1923 production. Pasture—The past winter was very hard on blue grass, but the heavy rains this spring have aided it materially and the pastures are now in prime condition for cattle and sheep grazing. The crop of blue grass seed is expected to be somewhat under that of last year. Fruit—A fair fruit crop is reported. Small fruits such as strawberries, raspberries, and blackberries, are all yielding well. The apple, peach, and cherry crops look very promising at present. At present there is little activity in the marketing of Burley tobacco for this is the inactive period of the year; the growers* attention is now being devoted to setting out and caring for this year’s crop. Farmers, with the aid of improved weather conditions, have prac tically completed planting operations. As a result of the wet spring the ground is now full of moisture which means that the plants should get a good start. No accurate estimates as to the acreage this year for the Burley district as a whole are available at this time, but it is believed to be a little smaller than that of last year when a record crop was produced. The large stocks of tobacco on hand, the farm labor situation, and the late spring have been factors tending toward a reduced acreage. No recent sales have been announced by the Market ing Association. The tobacco commission which went to Europe in the interest of foreign outlets for the cooperative marketing associations has reported a favorable reception at the hands of European buyers. Burley Planting Practically Completed; Acreage Uncertain; No Recent Sales Announced T H E M O N T H L Y B U S —i I N—E S S R E V—iI EW 9 umm m Farmers Continue Repairing Old Equipm ent; Slight Im provem ent N oted in Grain Threshing Machinery Business Farm equipment makers who are engaged in the pro duction of cultivating and harvesting machinery report that their factories are now operating at from 50 to 60 per cent of capacity and that a large percentage of the present output is for repair parts. Farmers have improved their time during the wet weather when outdoor work was impossible, by making further repairs on their old machinery in an effort to have it last another year. This, and the present con dition of agriculture, continues to hold down the pur chases of new equipment to a very low point. Manu facturers are of the opinion that the farmers cannot long afford to continue the patching up of their old ma chines at the expense of efficiency in their work. A large producer of tractors and threshing machines tells us that a slight improvement is noted as the grain threshing season approaches, but here as in other equip ment lines, replacement buying covers practically all pur chases. Very few people are buying new threshing outfits who have not been in the "business previously. His company makes a line of road tools as well as threshing machinery and it is the road tools that are holding up production which is reported at practically normal. Recent Reports Indicate Slight B etterm ent in Boot and Shoe Industry; Good Volume of Business Received From Road Salesmen Production of boots and shoes during April in the Fourth Federal Reserve District, according to statistics compiled by the Census Bureau, was 29.5 per cent less than during March, and almost 50 per cent less than during April, 1923. For the first four months of 1924, production ran about 30 per cent behind the same period last year. For the United States as a whole, production during April was 3.3 per cent below March and 12 per cent below April, 1923, while the first four months of 1924 ran 14.5 per cent under the same period last year. Indications in the Fourth District are that some im provement in production has taken place during May and June. The Cincinnati Chamber of Commerce re ports that production in that section has held up well during the first two weeks in June, and that a good volume of business has been received from salesmen on the road. Buying is still hand-to-mouth, however. According to the Cincinnati Boot and Shoe Manu facturers Association, unemployment in the industry has shown some betterment recently but there is no big change in the demand for labor. Conditions in the country at large continue to be dull, many of the New England factories having closed down or having greatly curtailed their production. Building Operations at High Rate; Home Building Program in Cleveland Suburbs Less Vigorous Than Last Year; Supply and D em and of Workmen Reported Well Balanced The feeling that the building industry is slackening continues to be quite general. Then, too, activity ap pears to be centered in the completing of old contracts rather than in the starting of new ones. May operations, however, continued at a high rate, nine representative cities in this District showing an in crease in the valuation of permits issued over the same month last year, as against four which showed a de crease. The total valuation of May permits in the thirteen cities was $2,124,846 higher than for May, 1923, or an increase of 9.9 per cent. A slight improvement in weather conditions and the customary seasonal in crease were contributing factors in this greater activity. In the metropolitan district of Cleveland the May advance was very evident. As compiled by the Builders Exchange the record for building permits issued in the month of May within the city proper shows 1,890 cer tificates approved calling for an expenditure of $6,802,520 in comparison with 1,774 approved at an expend iture of $4,619,075 for May, 1923. The totals for the first five months of this year aggregate an estimated ex penditure m permits issued of $26,288,515 in contrast with $24,650,750 for the corresponding five months in 1923. As for individual operations, the total for which permits were issued during the five months this year was 7,380 as against 6,560 in the same period last year, in dicating that the variety of building projects is being maintained. The story of the suburbs, however, is not so good, a decrease being evidenced for the seven leading suburbs from a total of $16,582,093 for the first five months of 1923 to $14,017,247 for the corresponding period this year. It would appear from this that the home building program is less vigorous than a year ago. The loss in the suburbs is compensated for by the gain in the city proper, so it may be said that the present year, thus far, is running even with its predecessor. A decrease is shown in the five months comparison for the District, the valuation of buildings permitted for 10 THE MONTHLY B U S I N E S S REVIEW in thirteen cities in the first five months of this year being $1,489,241 or 1.5 per cent less than for the same period a year ago. A more comfortable situation exists in the supply of materials than was the case last year. In some trades there is a slight surplus of workmen, while in others the call is about even with the supply. Wages have not decreased but it is reported by contractors that a considerable improvement is noted in efficiency on the part of the various workmen. The Association of Building Employers reports that the construction industry has enjoyed a peaceful year to date. Many new agreements, some of them extending for two or three years, have been negotiated. In most instances the new rates are higher than the old ones, but whereas last year bonuses were paid in most of the trades, this year the rates are generally being adhered to. Common labor is reported plentiful and the sup ply of skilled labor equal to the demand with the pos sible exception of bricklayers and plasterers. The costs of some building materials have remained steady while others have shown slight reductions. Fav orable weather has improved the demand to some ex tent. There has been very little change in the paint and varnish industry during the past thirty days although some evidence of a slight falling off in the demand is now reported. The decline is believed to be in keeping with that experienced by business generally. The trade did unusually well in May and June last year and in the light of present conditions it would be usual if the present volume of business exceeded or even equaled that of 1923. Practically all industrial lines are showing a rather constant decline and with the exception of the radio cabinet business, in which there is considerable activity, there seems to be no outstanding industry which is or dering more heavily than the rest. The late spring has had a noticeable effect on the dealers' trade for as a result of it many home owners have put off until next fall or the following spring, painting which they ordinarily would have done this spring. In spite of this, however, a very satisfactory volume of business is reported. Sizeable increases in production, shipments, stock on hand and unfilled orders were recorded in the paving brick industry for the month of May, according to the monthly statistical report of the National Paving Brick Manufacturers Association just issued to the United States Department of Commerce. The report covers 60 per cent of the industry and shows operations for the month at 93 per cent of normal. Production jumped from 22,750,000 brick in April to 26,569,000 in May. Shipments increased from 15,- 827.000 to 24,507,000. Stock on hand showed onlv a slight increase from 122,123,000 to 122,303,000. Un filled orders were 83,184,000 in April and 100,242,000 the last day of May. Ohio leads all other states in consumption, usine 3.148.000 brick on city streets and 2,727,000 on country highways. Kansas was second with 2,940,000 for city streets. Oklahoma was third with 1,662,000 for city streets and 1,041,000 for country highways. Illinois was fourth with 2,425,000 for city streets. General Dullness in Business Begins to Hurt Paint Industry; Rain Postpones Jobs Planned for This Spring Paving Brick Industry Increases Activity; Ohio Still Leads in Consum ption Cement Production Made Remarkable Record Last Year; May O utput Above that of Any Month in 1923 The remarkable height to which portland cement pro Shipments from the mills likewise made a high record duction was carried in 1923 is shown by a recent re showing an increase of 15 per cent over those of 1922* port issued by the Geological Survey. The quantity Stocks at the mills increased, reaching a total of 10produced last year was 137,460,238 barrels, the greatest 900,370 barrels on December 31. output in any year and about 20 per cent above that The average factory price per barrel in bulk in of 1922 when production totaled 114,789,984 barrels. 1923 was $1.90, an increase of 14 cents or 8 per cent as Of 13 of the principal producing states, Pennsylvania was far in advance with 22 reporting mills manufactur compared with 1922. ing 38,157,482 barrels. California was second with 9 Following are returns of cement production, ship mills turning out 11,001,910 barrels. During the year ments, and stocks, monthly and quarterly since Janu ary, 1924, with corresponding figures for 1923: 6 mills located in Ohio produced 4,188,755 barrels. Production Shipments Stocks at end of month 1924 1923a 1924 1923 1923 Month 1924 5 ,210,000 7.990.000 11.477.000 al4,155,000 8.788.000 January............. a5,628,000 5.933.000 8 .210.000 8.588.000 13.596.000 al6,815,000 February........... a6,090,000 8.995.000 9,880,000 13.045.000 al8,189,000 March................ 10,370,000 10,326,000 26,080,000 20,138,000 27,746,000 First quarter. . . 22,044,000 11.359.000 12.771.000 11.463.000 al7,159,000 April.................. 11.726.000 12.954.000 12.910.000 10.144.000 14.551.000 M ay................... 13.777.000 14.257.000 16,385,000 9,168,000 12.382.000 June................... 13.307.000 36.651.000 Second quarter., 40,518,000 a Revised. THE MON T HL Y B U S I N E S S REVI EW 11 D epartm ent Stores Sell Less Goods; General Decline Evidenced Sales of 57 department stores in the Fourth Federal Reserve District during May were 3.5 per cent less than during May, 1923, but the first five months of this year showed an increase of 3.3 per cent over the same period last year. That the decline in sales from May, 1923, was general is shown by the fact that only two cities reported an increase, and these increases were very slight. Even with this decline, sales during May were greater than for any other May during the last six years, with the exception of 1923. Taking the five-year monthly average for 1919-1923 as a base, the index numbers for May of each year are as follows: 1919, 84; 1920, 113; 1921, 102; 1922, 101; 1923, 119; 1924, 114. Stocks on hand at the end of May were 9 per cent greater than a year ago, but 1.4 per cent less than at the end of April. D epartm ent Store Sales 2 (3) Percentage of average stocks Comparison of net sales with Stocks at end of month com at end of each pared with those of corresponding period month f r o m last year January 1 to M a y 31 to B A B A average April ly salesmonth No. ot Jan. 1 May May over 1923 Reports to May 31 1924 same period ( ) (i) Percentage of Increase or Decrease 9.4 Akron.............. 4 0.2 —4 .8 — 5.3 6.4 Canton............ —0.3 3 2.8 — 4.3 5.1 9.6 1.9 Cincinnati....... 7 2.9 8.8 6 3.5 1.0 — 1.3 Cleveland........ — 1.6 5 1.6 —4.8 Columbus........ 1.8 13.8 7.6 — 2 .0 Dayton............ 0.4 5 14.3 — 4.0 1.6 3 2.8 New Castle__ 11.4 7 2.4 1.0 — 5.0 Pittsburgh. . .. 14.9 4 —4.0 Toledo............. — 1.1 —14.8 — 0.7 — 8.5 1.3 3.5 Wheeling......... 5 2.3 —5.8 — 1.4 9.9 3 Youngstown... 4.4 0.4 8.6 —0.7 5* Other Cities. .. 9.0 —1.4 3.3 District............ 57 — 3.5 3.9 U. S. Average 3.0 —3.5 1.5 Includes reports from Erie, Portsmouth, and Springfield. **Includes reports from Erie, Portsmouth, Youngstown, and Akron. — — — — — — 411.9 707.8 422.4 345.8 373.8 418.5 601.2 381.1 521.8 424.0 307.3 556.0 390.6 399.2 (4) Percentage of o u tsta nding orders at end of M a y , 1924, to total purchases dur ing calendar year 1923 * •* 4.3 4.7 4.8 4.0 •. 6.1 3.8 3.1 6’6** 5.2 5.3 Index Numbers of Sales of S3 D epartm ent Stores, Fourth Federal Reserve District (Average monthly Sales for the Five-Year Period 1919-1923 Inclusive = 100) Note—This table is subject to slight revision, as a few additional firms may be included. 1923 Pitts Cincin Cleve Toledo Colum- Dayton Youngs- Akron Canton* New Wheel Other town burgh nati bus land Castle ing Cities** J a n ... 90 83 77 91 85 92 98 75 92 83 76 93 Feb 88 83 80 80 95 77 77 85 79 76 74 67 M ar.. 116 120 116 115 134 133 115 108 127 104 127 104 Apr... 110 104 119 107 112 107 108 108 109 117 111 98 M ay.. 124 122 110 118 118 118 118 112 129 114 129 113 June.. 121 114 115 120 128 116 115 115 118 123 126 112 80 76 July.. 81 81 93 95 92 79 89 90 89 79 Aug... 94 84 104 108 92 113 97 90 96 96 91 80 Sept.. 99 94 110 102 106 112 96 88 90 81 105 87 O ct.. . 130 126 125 129 149 154 127 113 136 113 141 128 N ov.. 120 120 122 120 134 131 121 102 120 113 127 105 Dec.. 168 183 164 189 199 219 187 156 194 206 212 194 1924 Jan .. . 98 94 90 92 102 101 84 78 88 91 102 74 Feb. 103 87 90 94 99 92 120 88 97 81 87 77 Mar.. 100 103 105 101 114 124 118 95 115 93 107 91 Apr.. 122 114 135 119 124 131 124 112 128 127 128 112 May. 118 118 109 100 116 121 117 106 124 109 118 103 Based on 3-year average (1921-1922-1923). "^Includes Springfield, Portsmouth, and Erie. Dist. 88 83 117 111 119 119 82 96 101 129 121 175 94 96 104 124 114 12 THE M O N T H L Y B U S I N E S S REVI EW Sales of V/holesale Lines Decline During May sales of wholesale lines declined, both from April and from May of last year. The dry goods trade continued to show the most marked de creases, May sales being 14.5 per cent below those of April and 20.6 per cent below May, 1923. Grocery and drug sales declined only slightly from May of last year, while hardware showed a decrease of 15.4 per cent. For the first five months of 1924 the grocery trade was the only one to show an increase over the same period in 1923, the increase being 2.1 per cent. The other three lines decreased as follows: dry goods, 12.4 per cent; hardware, 7.5 per cent; and drugs, 2.5 per cent. Several wholesale firms report that con tinued dullness may be expected. Wholesale Trade Sales Number of Percentage change in Firms Reporting net sales during May, 1924, compared with April, 1924. Groceries— Cincinnati..................................... 3 3.9 Cleveland...................................... 3 3.4 Columbus...................................... 3 — 0.4 4 8.6 E rie..................................................... Lexington...................................... — 5.8 3 7 Pittsburgh..................................... —10.4 3 1.1 Portsmouth................................... 3 1.0 Toledo................................................ 3 — 4.5 Wheeling....................................... 4 — 0.1 Youngstown.................................. 6 — 1.1 Other Cities*................................ 42 — 0.2 DISTRICT. ................................. 14 —14.5 Dry Goods—District........................... — 7.0 13 Drugs—District................................... 12 — 5.0 Hardware—District............................. ^Includes Akron, Canton, Dayton, and Springfield. Percentage change in net sales during May, 1924, compared with May, 1923- 6.6 0.5 — 5.8 7.1 — 9.4 —11.5 — 4.7 — 8.9 — 8.4 —10.2 — 4.2 — 3.9 —20.6 — 3.2 —15.4 Percentage change in pet sales from Jan. 1 to May, 3 if 1924 compared with same period last year. 6 .6 5.2 — 1.8 11.2 — 4 .5 — 0 .8 — 0 .3 0 .9 1-5 1.9 1.3 2. 1 —12.4 — 2.5 — 7.5 Sum m ary of Business and Credit Conditions in the United States By The Federal Reserve Board Production of basic commodities and factory employment showed unusually large declines in May and were considerably below the level of a year ago. Purchases at wholesale and re tail also declined during the month and were somewhat below last year’s volume. Commercial loans at member banks de creased and there was a further decline in money rates. PR O D U C TIO N Index of 22 basic com m odities corrected for seasonal variations (1919 = 100). Latest Figure— May, 104 The Federal Reserve Board’s index of production in basic in dustries, adjusted to allow for seasonal variations, declined about 10 per cent in May to a point about 18 per cent below the peak reached a year ago. Particularly marked decreases were shown for production of iron and steel and ttlin COn_ sumption of cotton. Output of anthracite, cement, and tobacco products, on the other hand, was slightly larger than in ApriL Factory employment declined 4 per cent in May, the number of employes being reduced in almost all reporting industries. The largest reduction oflM tVworking forces occurredi in the textile iitn m n K JI* ip r metal, aautomobile ana leatner industries. Ine «value of- building 13 THE MO N T H L Y B U S I N E S S REVIEW contracts awarded in May was 13 per cent less than the month before and for the first time since the beginning of the year fell below the corresponding month in 1923. The Department of Agriculture forecasts as of June 1 in dicated smaller yields of wheat, oats and barley as compared vith the harvests of 1923. The condition of the cotton crop on May 25 was 5 per cent lower than a year ago and 7 per cent below the average condition for the past 10 years. TRADE Railroad shipments showed a slight increase in May but were 8 per cent smaller than a year ago. Car loadings of all classes of freight, with the exception of grain and livestock, were smaller than in May, 1923. Wholesale trade decreased slightly in May and was 6 per cent less than in May, 1923. Sales of dry goods, shoes and hardware were much smaller than a year ago, while drug sales were slightly larger. Retail trade at department stores and mail order houses declined during May more than is usual at that season and was smaller than last year. Department store stocks were 4 per cent smaller in May than in April and 3 per cent larger than a year earlier. PRICES Wholesale prices, as measured by the index of the Bureau of Labor Statistics, declined 1 per cent during May to a level about 8 per cent below the high point reached in the spring of 1923. Prices of all commodity groups, with the exception of food, declined in May. During the first half of June quo tations on wheat, com, rye and silk increased, while prices of hogs, beef, cotton and lumber declined. Weekly figures for member banks in 101 leading cities. Latest figures June 11 BANK CREDIT Decreased demand for credit for current business require ments between the middle of May and the middle of June was reflected in a smaller volume of borrowing for commercial pur poses at member banks in leading cities. Further purchases of corporate securities by these banks and larger loans on stocks and bonds, however, resulted in an increase for the month in their total loans and investments. There was an unusually large increase in net demand deposits of these banks, which carried the total of these deposits to the highest figure on record. At the Federal Reserve banks between May 21 and June 18 there was a further decline in discounts for member banks and in acceptances purchased in the open market. Government se curity holdings, on the other hand, increased, and total earn ing assets were somewhat larger than a month ago. The prevailing ease in the money market was reflected in a further decline from A1/a to 3y2 and 3^4 per cent in rates on prime commercial paper in New York. The June 15 issue of six-month Treasury Certificates bore a rate of 2^ per cent compared with 4 per cent on a similar offering last December. Discount rates at the Federal Reserve banks of Cleveland, Richmond, Atlanta, Chicago, St. Louis and San Francisco were reduced from 4% per cent to 4 per cent during June, and the rates in Boston, New York and Philadelphia were reduced to 3*4 per cent THE MONTHLY BUS I NES S REVI EW 14 Comparative Statem ent of Selected Banks in the Fourth District Loans and Discounts secured by U. S. Govern ment obligations.............................................. Loans and Discounts secured by other stocks and bonds................................................................. Loans and Discounts, all other............................ U. S. Pre-War Bonds.............................................. U. S. Liberty Bonds................................................ U. S. Treasury Bonds............................................. U. S. Treasury Notes.............................................. U. S. Certificates of Indebtedness........................ Other Bonds, Stocks, and Securities.................... Total Loans, Discounts, and Investments.......... Reserve with Federal Reserve Bank.................... Cash in Vault........................................................... Net Demand Deposits............................................ Time Deposits.......................................................... Government Deposits............................................. Total Resources on date of this report................ June 11 , 1924 May 14, 1924 (79 Banks) (79 Banks) $ 22,117,000 $ 22,510,000 408.988.000 418.091.000 717.835.000 722.495.000 47.202.000 47.449.000 131.765.000 115.113.000 2.574.000 2.241.000 44.350.000 45.806.000 3.475.000 4.334.000 319.451.000 311.030.000 1.697.671.000 1.689.155.000 116.274.000 108.491.000 30.545.000 30.438.000 907.190.000 902.273.000 668.580.000 644.922.000 24.567.000 10.737.000 2.177.360.000 2.159.206.000 Increase Decrease $. . ............ $ 393,000 9.103.000 4.660.000 247,000 16,652,000 . 8 421.000 8.516.000 7.783.000 107,000 4.917.000 13,658,000 18,154,000 333.000 1,456,000 859.000 13,830,000 Building Operations for Month of May, 1924-1923 Valuation Permits Issued New Construction New Construction Alterations Alterations Increase or Decrpn«s» 1923 1924 1924 1924 1923 1924 1923 1923 Amount Per Cent 739,120 i 58,440 495,338 Akron.......... 332 396 114 102 165,210 $— 350,552 601,038 44,450 673,355 Canton........ 261 283 105 110 124,555 — 7,788 282,400 Cincinnati... 432 490 259 317 2,720,115 2,051,810 328,465 622,240 Cleveland*.. 720 742 1,606 1,448 7,048,370 4,748,065 1,574,535 1,951,925 1,922,915 344,100 Columbus. . . 446 590 197 162 1,315,500 3,103,110 208,290 —1,651,800 56,694 110,732 — 341,644 Dayton........ 295 323 138 233 1,051,632 1,339,238 301,099 284,349 327,245 85,895 Erie.............. 172 217 89 94 224,600 162,085 172,620 47,260 18,970 Lexington. . . 40 52 45 43 38,825 387,722 382,669 Pittsburgh... 636 611 309 200 2,937,294 2,635,235 307,112 173,185 52,100 171,480 12,085 Springfield... 125 150 41 44 38,310 925,540 196,442 351,130 Toledo......... 659 503 308 332 1,833,541 753,313 302,180 396,175 89,105 55,860 Wheeling.... 128 105 51 55 127,240 540,745 35,270 986,990 39,440 Youngstown. 300 224 41 61 442,075 Total........ 4,546 4,686 3,303 3,201 320,129,655 $17,622,450 $3,452,867 $3,835,226 $2,124,846 9 .9 Heights. *Includes figures for East C Building Operations for Five Months Ended May 31, 1924-1923 Valuation Permits Issued New Construction Altei New Construction Alterations Increase or Decrease 1923 1924 1924 1924 1923 1924 1923 1923 Amount Per Cent Akron........... 1,024 1,249 730 309 $ 2,763,322 $ 2,524,705 $ 341,485 $ 684,660 $— 104,558 — 3.3 273,148 451,790 — 107,487 2.9 Canton........ 983 971 372 348 3,347,221 3,276,066 10,953,725 1,402,455 1,895,535 -1,543,245 —— 12.0 Cincinnati.. . 1,707 1,935 1,134 1,283 9,903,560 29,298,216 4,409,890 5,244,730 — 324,666 — 0.9 Cleveland*. . 3,116 3,293 5,354 4,943 29.808,390 837,415 —1,978,000 19.5 Columbus... 1,923 2,348 766 592 7,142,360 9,284,785 1,001,840 444,437 —1,867,840 — Dayton........ 1,010 1,345 554 613 3,678,764 5,528,292 426,125 651,998 393,557 510,146 —31.3 Erie.............. 637 594 262 271 1,687,550 1,435,845 115,356 886,427 747,405 127,608 — 151,274 — 27.9 Lexington.. . 189 223 128 176 1,285,748 13,415,746 13,440,248 Pittsburgh... 2,349 2,351 934 612 978,332 282,914 14.9 2.0 620,491 794,360 112,550 Springfield. . 397 436 124 133 66,040 — 127,359 — 14.8 6,933,720 1,043,718 5,639,085 Toledo......... 2,046 1,705 908 995 1,163,015 1,175,338 17.3 353,917 Wheeling.... 425 383 242 225 2,038,292 1,319,114 181,160 891,935 132,445 Youngstown. 1,034 733 141 155 4,123,960 2,223,810 177,740 1,854,855 59.5 77.2 Total........ 16,840 17,566 11,649 10,655 $86,210,781 $86,604,678 $11,550,675 $12,646,019$-1,489,241 1.5 *Includes figures for East Cleveland, Lakewood, and Shaker Heights. ’ THE MONTHLY BUSINESS REVIEW 15 Debits to individual Accounts Week Ending Week Ending Increase or Decrease June 11,1924 May 14,1924 Amount Par Cent (325 Banks) (325 Banks) Akron................... $16,073,000 $15,078,000 $ 995,000 6.6 Butler, Pa............ 2.490.000 2.669.000 — 179,000 — 6.7 Canton................. 11.417.000 10.637.000 780.000 7.3 Cincinnati............ 63.514.000 68.235.000 —4,721,000 — 6.9 Cleveland............. 139.001.000 136.569.000 2.432.000 1.8 Columbus............. 30.582.000 31.830.000 —1,248,000 — 3.9 1.049.000 1.201.000 152.000 14.5 Connellsville, Pa.. 15.459.000 690.000 4.5 Dayton................. 16.149.000 7.791.000 71.000 0.9 7.862.000 Erie...................... 5.150.000 — 351,000 — 6.8 Greensburg........... 4.799.000 1.099.000 — 73,000 — 6.6 Homestead........... 1.026.000 5.073.000 — 982,000 —19.4 4.091.000 Lexington, Ky___ 4.284.000 231.000 5.4 Lima.................... 4.515.000 1.382.000 89.000 6.4 Lorain.................. 1.471.000 2.035.000 — 5,000 — 0.2 2.030.000 Middletown......... 90.000 3.5 2.584.000 2.674.000 New Brighton. . . . 2.885.000 — 184,000 — 6.4 2.701.000 Oil City................ 183.000 0.1 Pittsburgh............ 181.667.000 181.484.000 4.663.000 — 408,000 — 8.7 4.255.000 Springfield............ 2.983.000 — 13,000 — 0.4 2.970.000 Steubenville*........ Toledo.................. 45.672.000 41.143.000 4.529.000 11.0 3.139.000 — 577,000 —18.4 2.562.000 Warren, O............ 10.406.000 — 883,000 — 8.5 9.523.000 Wheeling.............. 16.807.000 —3,156,000 —18.8 Youngstown......... 13.651.000 3.486.000 — 117,000 — 3.4 3.369.000 Zanesville............. Total............. $575,265,000 $577,920,000 $—2,655,000 0.5 “Debits for corresponding period 1923 not available. Week Ending June 13, 1923 (322 Banks) $17,365,000 2,483,000 12,346,000 69,609,000 150,987,000 36,245,000 1,588,000 15,646,000 7,727,000 5,354,000 926,000 5,417,000 4,528,000 1,383,000 2,168,000 2,848,000 2,930,000 162,200,000 4,700,000 ................. 42,266,000 3,315,000 10,323,000 15,593,000 3,169,000 $581,116,000 Increase or Decrease Amount Per Cent $— 1,292,000 7,000 — 929,000 — 6,095,000 —11,986,000 — 5,663,000 — 387,000 503.000 135.000 — 555,000 100.000 — 1,326,000 — 13,000 88,000 — 138,000 — 174,000 — 229,000 19,467,000 — 445,000 ’ 3,406,000 — 753,000 — 800,000 — 1,942,000 Columbus. Fostoria. Marion. Springfield. Toledo....... Wheeling.. Columbus. Fostoria... Marion Pittsburgh. Springfield. Toledo__ Sheep Hogs 1923 1924 1923 1924 116,672 120,489 11,449 33,246 110,780 95,511 18,444 22,546 21 3,483 4,930 163 637 13,548 14,355 908 264 11,071 9,729 142 388 5,211 4,779 458 264,364 240,355 75,562 92,138 386 1,104 6,029 5,093 12,719 12,575 1,323 37 178 418 1,954 1,610 Purchases for Local Slaughter 73,806 67,398 4,582 9,508 88,418 72,169 12,594 16,324 59 307 21 163 685 325 5 2,248 2,371 36 66 54,771 47,331 10,427 12,181 879 440 13 4 2,559 83 - s!i -22.7 - 7.7 -12.5 200,000 6.3 $— 8,821,000 — 1.5 Movement of Livestock at Principal Centers in Fourth Federal Reserve District for Month of May, 1924-1923 Cattle 1924 1923 17,043 16,462 7,776 9,042 49 152 1,839 1,460 460 736 49 37 36,152 26,929 595 262 782 734 272 393 14,454 13,287 7,084 8,573 40 142 40 35 24 37 6,576 6,430 209 66 660 - 7.4 0.3 - 7.5 - 8.7 - 7.9 -15.6 -24.4 3.2 1.7 -10.4 10.8 -24.5 - 0.3 6.4 - 6.4 6.1 - 7.8 12.0 - 9.5 Calves 1924 1923 21,238 19,739 16,268 15,952 107 236 957 1,010 824 786 249 188 32,294 33,030 480 334 588 674 3,046 3,795 8,006 6,747 15,360 15,222 14 169 70 50 100 131 11,088 11,146 102 66 485 Cars Unloaded 1924 1923 1,653 1,782 1,661 1,551 8 17 ’i6 25 4,266 4,080 128 27 19 THE M O N T H L Y B U S I N E S S REVIEW 16 A REAL RESERVE T HE financial resources of the Nation have frequently been compared to its military resources and not without reason. Their potentialities are enormous, even as is the man power of the land. Their ability to serve American busi ness interests depends upon the scope and quality of their organization just as does the ability of the country’s man power to march and fight and march again when occasion demands. There are more than thirty thousand banks in the United States, and they are owned by residents of the cities, towns, and villages in which they operate. They might be compared, fairly enough, to thirty thousand military posts, each with its garrison large or small, for the protection of their respective communities. These thirty thousand banks receive your deposits, coin, currency, or credits, for the current use of business and for safekeeping, and they loan out these funds at interest to proper and profitable business enterprises, agricultural, industrial, or commercial, always bearing in mind the necessity of having on hand or quickly available, sufficient funds to meet the demands of such customers as desire to make withdrawals. To meet the demands of such customers, and of others, upon the funds in their care, bankers must maintain reserves—in their vaults, on deposit with other banks, invested in securities which command a ready market or, it may be, in the form o f call loans, payment of which they can demand at will. Before the establishment of the Federal Reserve System—in 1907, in 1896, in 1873 and many times before—the banks of the Nation were unable to assist each other when panic threatened. There was no provision for effective leadership, and cooperative action was out of the question. Bank reserves, carried with other banks which were no less embarrassed, were least available when they were needed most. Every country bank had reserves in one or more of the larger cities in its section as well as in the great centers of population and, since the correspondent banks paid interest on such deposits, they were compelled to loan them out, usually at call. Whenever panic or the growing fear of it lead any bank to draw upon its reserves— and panic usually led every bank to do so—the correspondent, in order to meet such demands, was compelled to withdraw the money from active service and the thou sands of such withdrawals, aggregating many millions of dollars, only made the general situation worse by restricting essential business operations and, in many cases, compelling the sale of securities, perhaps at grievous loss. The direct result, in more than one instance, was a complete breakdown of the country’s banking machinery and a prolonged period of resultant depression in industry and commerce. The great achievement of the Federal Reserve System has been the massing of the Nation’s monetary armies. By this means it has rendered financial panic im possible in America, and has eliminated the worst features of business depression.
@FedFRASER