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MONTHLY BUSINESS REVIEW Covering financial, industrial, and agricultural conditions in the Fourth Federal Reserve District Federal Reserve Bank of Cleveland Vol. 8 Cleveland, Ohio, July 1, 1926 Reports from the Fourth District indicate a rather de cided pick-up during the past month in those industries which had previously been held back by unfavorable weather conditions. A month ago, it was difficult to judge whether the slackening constituted a general business recession, or whether it was merely a result o f the back ward spring. With respect to the trades affected by a seasonal increase in demand during the spring, it now seems fair to say that the long, cold winter was very largely responsible in bringing about a reaction in the early spring months. The usual spring demand has re cently made its appearance in emphatic fashion in retail trade, and this in turn has favorably affected various lines of manufacture, such as clothing and shoes. As in the past two years, the iron and steel industry has experienced a slowing-up with the approach o f sum mer. However, operations are holding up better than in 1924 and 1925. General business conditions in the Fourth District outside of the lines already mentioned appear to be satisfactory, although there are some doubtful spots. The wheat crop promises well, but corn has been back ward and the outlook at present is uncertain. Business of tire manufacturers has not been up to last year, and de pression continues in the Ohio and Pennsylvania coal fields. Financial Conditions Savings deposits o f seventy selected banks in the larger cities of the Fourth Federal Reserve District amounted to $891,175,000 on May 31, 1926, an in crease o f 6.4 per cent over a year ago and 0.8 per cent over the preceding month. Commercial failures in this District according to R. G. Dun and Company, numbered 155 in May, as compared with 200 in April and 153 in May 1925. Liabilities aggre gated $4,473,273, as compared with $4,496,342 a year ago. In the United States, there were 1,730 failures in May, 1,957 in April, and 1,767 in May, 1925. Changes in the main items in the balance sheets of Federal Reserve and member banks are as follow s: Federal Reserve Bank o f Cleveland Federal R eserve System (In M illions) (In M illions) June 16, June 17, May 19, June 16, June 17, May 19, 1926 1925 1926 1926 1025 1926 Gold reserves ............. $267 $288 $282 $2,837 $2,821 $2,816 Dfcccrants .......................... 44 60 57 893 442 490 A cceptances .................... 22 22 16 288 246 226 U. S. Securities ............ 49 26 87 482 806 899 Total bills and securities Federal Reserve notes in circulation .................. T otal deposits ................ No. 7 116 98 110 1,119 1,007 1,126 189 186 201 178 191 189 1,688 2,291 1,643 2,245 1,665 2,281 R ep ortin g Mem ber B anks— F ourth D istrict (In M illion s) June 16, June 17, May 19, June 16, June 17, May 19, 1926 1925 1926 1926 1925 1926 Loans Becured by stocks and bonds .................... $539 $472 $530 $5,366 $5,019 $5,287 A ll other ........................... 812 764 801 8,690 8,181 8,609 1,351 1,236 1,331 14,056 13,200 13,896 T otal loans ...................... Investm ents .................... 636 642 290 5,683 5,539 5,699 Dem and deposits .......... 1,037 1,005 1,042 13,130 12,865 12,968 T im e deposits ................ 809 736 806 5,604 5,188 5,547 Iron and Steel Revival of confidence which first became apparent several weeks ago, after a period o f uncertainty and apprehension, has spread through the iron and steel industry. This appears to be based on a clear recognition that consumption is holding up much better than expected and that it is well ahead o f what might be considered normal at this time of the year. Buyers are disposed to cover their estimated future needs more freely. A big factor in this freer buying has been the more stable position o f prices. Advances o f $2.00 a ton fo r third quarter delivery in heavy mill products such as plates, sheets and bars, announced by the larger mills, have operated to drive in heavier specifications against lower priced contracts expiring July first. This larger volume o f specifications added to a fair amount o f strictly new buying has lifted incoming steel tonnage in June considerably over that o f May. This increase has run from 10 to 25 per cent. With this livelier movement of tonnage, works opera tions have been very well sustained the past month and at present run around 80 per cent o f steel ingot capacity. By way o f comparison, in June 1925 they were down to around 65 per cent and still falling and that in a year which established the greatest total steel output in history. The completed figures o f steel plant operations in May show production to have represented an annual rate of approximately 47,197,000 tons of ingots or 84.27 per cent o f theoretical capacity as against 88.09 per cent in April. The May tonnage was 14.2 per cent ahead of the same month in 1925. P ig iron production in May as compiled by IRON TRADE R EVIEW , showed the moderate re cession o f only 2.06 per cent on an average daily basis 2 THE MONTHLY BUSINESS compared with April. Output in May was at the indi cated annual rate of 41,000,000 tons. Furnaces in blast at the end of May were reduced to 229, a loss of 8 from the preceding month. The active units represented 60.9 per cent of the country's numerical total. For the first five months of 1926 to date, steel ingot production is in excess of the same period of 1925 by 6.9 per cent and pig iron by not quite 2 per cent. The steady absorption of steel in large volume is not attributable to any especially stimulated line of activity but rather to well spread out necessities from all quar ters. The movement of steel for building purposes has been surprisingly good considering past activities. Build ing steel awards in May are computed at 77 per cent o f shop capacity and were the largest since October. In May 1925 they were 68 per cent o f capacity. The automobile industry, while continuing to make some read justments, has kept its output on a high plane, this for the first five months equaling 14 per cent over 1925, and the flow o f mill tonnage in this direction has been in pro portion. Railroad buying has been sluggish in spots, particularly for cars, but on the whole has been fair. A considerable tonnage of rail business fo r last half delivery is being closed, locomotive orders have been more plenti ful and car awards, while light, were much better in June than in May. Oil development work is providing a large demand fo r tubular goods, tankage, refinery equipment, etc. Miscellaneous steel needs are in good volume. June has seen the inception of a large buying move ment in pig iron for third quarter and last half delivery, sales the past three weeks totalling over 500,000 tons. This business has been done at some expense of prices. The latter have yielded about $1.00 a ton in a number of producing centers and this has brought the market level to a point where it has proved attractive to melters, both large and small. Iron and steel prices at large have continued a slow recession the past month which now seems to have reached the point where the situation more nearly is in balance. IRON TRADE REVIEW composite of 14 leading iron and steel products as of June 23rd, stood at $37.58. Four weeks previously it was $38.14 and at the beginning of the year, $39.26. Coal Production of soft coal in the country increased slightly between May 8 and June 5, as in previous years. The 1926 production curve continues to run ahead of 1925 and 1924, but behind 1923. Total output fo r this year up to June 5 was 233,395,000 net tons, as compared with 203,970,000 last year. REVIEW ton on June 4, as against $1.89 on May 28 and .$1.96 on June 5, 1925. Rubber and Tires Conditions in the tire industry have not changed greatly from last month, ac cording to reports from manufacturers in this District. Some curtailment o f production schedules is reported. The question o f tire prices continues to be an im portant element in the situation, it being stated that dealers hesi tate to stock up to any considerable extent in view o f the possibility o f price reductions. There has recently been a seasonal improvement in public demand, with a conse quent reduction o f dealers’ supplies. Stocks of tubes and casings in manufacturers’ hands were still abnormally high on May 1st and in fact showed a gain over April. The Rubber Association o f A m erica reports the actual number o f casings in manufacturers* hands on May 1st (the latest available date) at 9,345,000 as compared with about 6,800,000 a year ago and 6,600,000 two years ago. Production of both balloon and high pressure inner tubes has been considerably ahead o f ship ments fo r several months. The rapid increase in the use of balloon tires in the last eighteen months is well known. In this connection it is of interest to note that in April, the output o f balloon inner tubes exceeded that o f high pressure tubes fo r the first time. As to casings, production of balloon casings has increased rapidly in 1926, while that o f the old type o f cords has merely held its own. The output o f fabric tires is steadily declining, and now amounts to only about 300,000 a month, or about 8 per cent of the total o f all tires. Automobiles According to the United States D epart ment of Commerce, production o f auto mobiles in the United States in May declined from April, but continued at a very high rate and was ahead o f May of last year. The output in May was 419,677 passenger cars and trucks, as against 433,000 in April and 406,000 in May, 1925. Passenger car production aggregated 371,595, and that of trucks, 48,082. For the first five months of 1926, production was at a record high level, being approximately 14 per cent ahead o f the same period in 1925. In the Fourth District, dealers report the usual seasonal faliing-off in householders' orders with the approach of summer. There has also been a slackening in industrial demand in localities where manufacturing plants have re cently been less active. Depression continues in the union field, particularly in Ohio. It is reported that some slowing-up has taken place in June, owing to temporary shut-downs or partial curtail ment of operations by some concerns for inventory-taking and the preparation of new models. Price reductions are still a feature of the automobile situation, two important manufacturers having recently announced such reduc tions. Retail buying was heavy in May. This was partly due to the appearance o f the late spring demand. D ealers’ stocks, particularly of used cars, are stated to be unusually high. The Coal A ge composite prices o f coal was $1.94 per A pamphlet recently issued by the National A utom obile THE MONTHL Y BUSINESS Chamber of Commerce puts Ohio third in the total number o f cars registered in 1925. Pennsylvania was fourth, Kentucky twenty-second, and West Virginia twenty-eighth. In number of persons for each car, Ohio ranked seven teenth with 5.36; Pennsylvania thirty-seventh, with 8.11; W est Virginia thirty-ninth, with 8.42; and Kentucky fortysecond, with 10.58. The average for the United States was one car to every 6.5 persons, California and Iowa leading with 3.20 and 4.08 respectively. Clothing Tlui belated appearance o f warmer weather has naturally had a stimulating effect upon the business of clothing manufacturers. Although conditions are still rather dull here and there, operations in general are on a more normal basis and the majority of reporting manufacturers are more opti mistic than a month ago. In most cases, April business ran behind last year, May even or a little improved, and June ahead. A month or two ago, it was feared that a considerable part of the usual spring trade might be permanently lost this year on account of the extremely late spring; but recent developments indicate that most of this trade was merely held back, the demand making its appearance several weeks later than ordinarily. Buying for the most part continues on a very restricted basis, although in one case a marked improvement in un filled orders over a year ago is reported. In cotton goods manufacturing lines, both retailers and jobbers are keeping their future commitments at a minimum in view of the continued decline in the price of raw cotton, which was 18.92 cents a pound in May, as com pared with 19.13 in April, 20.84 in January, and 23.41 a year ago. Cotton goods prices have experienced a similar decline. A concrete example of the improvement already noted is found in the sales of 18 wholesale dry goods firms in the Fourth District. In each of the first four months of this year, sales ran behind every one o f the preceding five years, and for the four months combined were about 16 per cent less than the 1921-25 average for the same period. On the other hand, May sales were greater than in 1924 and 1925, and were only 6 per cent under the 1921-25 average for that month. Furthermore, May was the first month since last October to show a gain in sales over the same month in the preceding year. Sales of 13 firms increased over last year, only 5 showing losses. The gain of all 18 firms combined was 3.7 per cent over May, 1925, and 1.2 per cent over April. Sales of 41 department and wearing apparel firms in this District for May show substantial gains over May, 1925, in numerous lines of clothing, including men's cloth ing, men’s furnishings, women’s dresses, misses’ readyto-wear, juniors’ and girls’ ready-to-wear, boys’ wear, sweaters, gloves, millinery, hosiery, knit underwear, petti coats and aprons and house dresses. It is significant of the improved situation in May that sales in all of the above departments in April except gloves and hosiery de REVIEW 3 creased from the preceding year. Yard goods showed a decline from 1925 in May as well as in April, but the loss was smaller in May. Shoes The shoe business in the Fourth District in May was very good from the stand point o f retailers and wholesalers, and fair from that o f manufacturers. Fac tories wThose salesmen are on the road report a moderate demand, with customers asking mostly for quick delivery. Preliminary production figures for 33 plants in this District indicate a gain in May o f 34 per cent over April, and for 792 plants in the country a gain o f 12.4 per cent. Final figures for April showed a loss o f 38 per cent from March in the Fourth District. Total output in the United States was 29,928,240 pairs in March and 26,518,902 in April. Sales of reporting wholesale shoe houses in May gained 16.8 per cent over last year, nearly offsetting the loss of 17.5 per cent in April. Sales of shoes in department stores in May increased 9.6 per cent in women’s shoes, and 11 per cent in men’s. The gain in both wholesale and retail sales was doubt less caused largely by more favorable weather conditions. Paint With the beginning o f summer, a no ticeably better feeling is manifested by Fourth District paint and varnish manu facturers. It is now apparent that in most cases the somewhat unsatisfactory business of the first three months was caused by bad weather rather than by any recessionary tendencies. In spite of the decline in first quarter business from last year, manufacturers in general report sales fo r the first five months o f 1926 as equal to or a little better than those for the same period a year ago. This means that operations in April and May, particularly the latter, were wTell ahead of a year ago, as a result o f better weather which permitted outside painting on a large scale to go forward. June has brought a good volume of business, and the immediate outlook is termed satisfactory by manu facturers. Customers are still purchasing largely for immediate needs only, but the industry, in common with others, is becoming pretty well adjusted to this method o f buying. Some slowing-up of Mexican and Cuban business is reported, due to uncertain conditions in the form er country and general depression in the latter. Building The value o f building permits issued in the United States in May declined both from A pril and from May o f last year, according to Bradstreet’s. The de crease from April was seasonal, and that from a year ago was not unexpected in view of the abnormally high level of building activity in 1925. Permits for 165 cities totaled $311,220,511 in May, a 4 THE MONTHLY BUSINESS loss of 5.6 per cent from the same month in 1925. The loss from April was 15.9 per cent. The first five months of 1926 ran about 3 per cent under last year. In May, 98 out o f the 165 reporting cities showed decreases from May, 1925. In the Fourth District the decline in building activity has been much more noticeable than in the country as a whole. Thus, permits o f 27 cities in May were 15.4 per cent under last year, and the first five months o f 1926 ran 17.5 per cent behind. For the five months’ period, 25 out o f 27 cities showed decreases, Akron and Youngs town being the exceptions. In May, all cities showed decreases from last year except Akron, Canton, Cleveland, Columbus, and Newark. REVIEW Stocks of finished cement at factories throughout the country have finally begun to decrease, after reaching a very high peak in March. Shipments in both A pril and May were ahead o f production, showing about the usual seasonal excess. In Ohio, Western Pennsylvania and W est Virginia production totaled 1,781,000 barrels in May, as compared with 1,540,000 a year ago; shipments, 1,886,000 as compared with 1,590,000; and stocks on hand, 2,616,000 as against 1,966,000. The Aberthaw index o f industrial building costs mained unchanged at 199 on June 1. re Agriculture Building Operations M ay, 1926 (Valuation of Permits) Akron..................... Ashtabula............ Barberton............ C anton.................. Cincinnati............ Cleveland proper “ suburbs: Cleve. Heights East Cleveland Euclid................ Garfield Hgh’ ta Lakewood . . . . Parma............... Rocky River . . Shaker Heights Columbus............. Covington, K y .. . Dayton.................. Erie, Pa................. Lexington, K y .. . Lim a....................... Mansfield............. Newark................. Pittsburgh, P a .. . Springfield........... Toledo................... Wheeling, W. Va. Youngstown . . . . May % change 1926 froi:n 1925 £1,435,304 + 2 1 .5 86,130 — 5 3 .0 88,467 — 7 .9 600,265 + 1 7.6 3,772,390 — 1 3.0 6,057,275 + 2 3 .7 497,035 55,071 140,760 256,100 379,930 166,685 42,020 634,175 2,186,800 208,200 747,281 627,288 287,695 138,855 165,831 53,400 3,834,282 77,471 1,566,816 128,694 680,740 T o ta l.................. $24,914,960 ♦January omitted. — 39.2 — 7 9 .8 — 4 6 .7 — 6 1 .7 — 3 2 .0 — 18.9 — 5 2 .9 — 12.8 + 4 .6 — 7 6 .0 — 4 2 .9 — 3 .7 — 5 3.2 — 4 0 .9 — 4 3 .7 + 4 4 .8 — 16.7 — 6 1 .7 — 3 0.9 — 7 8 .6 — 2 1.1 Jan.-M ay 1926 $6,955,78 5 304,372 334,586 2,543,689 11,161,130 27,943,525 Jan.-M ay % change 1925 from 1925 $6,596,600 + 5 .4 494,538 — 38.5 — 8.5 365,511 3,217,223 — 2 0 .9 13,885,330 — 19.6 28,491,550 — 1.9 2,857,522 534,666 680,375 1,073,200 1,674,685 528,550* 204,520 2,187,35 S 9,392,600 654,000 3,503,573 2,099,028 1,068,486 759,099 1,327,046 164,550 16,338,116 553,149 5,196,148 791,967 5,216,862 4,854,000 2,007,175 862,710 1,703,350 3,332,810 600,260* 437,470 4,759,825 10.877,400 1,572,350 5,031,307 2,461,961 1,178,815 823,921 1,911,430 320,160 19,620,311 751,040 6,621,253 2,030,044 3,810,865 — 15.4 3106,048,584 $128,619,209 — 4 1.1 — 7 3 .4 — 21.1 — 3 7 .0 — 4 9 .8 — 11.9 — 5 3 .2 — 5 4 .0 — 13.7 — 5 8 .4 — 30.4 — 14.7 — 9 .4 — 7 .9 — 3 0 .6 — 4 8 .6 — 16.7 — 26.3 — 21.5 — 6 1 .0 + 3 6 .9 — 17.5 Building Materials A general survey o f crop conditions in the Fourth District, based on reports from the various State Departments o f Agriculture, shows that the present prospects for wheat indicate an in crease in total production of approximately 4.6 per cent over last year's yield. This is not equally distributed however, as Ohio reports prospects o f more than 30 p er cent increase, while Pennsylvania and Kentucky report indications of a decrease o f 21 per cent and 8 per cent respectively. It is well to remember that in this section the crop is not yet beyond the danger of encountering climatic condi tions which might seriously affect the above forecasts. Reports show that the dry, cool weather of May caused more damage in the southern portion of the District than in the northern part, the brightest prospects being re ported from those counties which border on Lake Erie. The oats crop shows prospects of a considerably de creased yield from that o f last year, and this condition exists in practically the same degree all over the District the average drop from last year being some 12 or 13 points. The condition o f the lumber industry is somewhat spotty. The fa ct that building in this District has not been up to last year has obviously affected various lines o f materials. Retailers are reported to be carrying smaller stocks o f lumber than form erly as a general practice. In some localities where building is holding up well, lumber manufacturers have been doing a fair amount of business; in others, where the post-war shortage of homes, office buildings and factories has been made up, there is a tendency toward depression. Collections in some sections have been very slow, with renewals becoming more frequent. Prices of both hardwood and softwood lumber have eased since the middle of May, particularly the latter. Pastures are in poor condition on account o f the back ward spring, and prospects fo r the hay crop are rather discouraging, with last year’s stocks somewhat lower than usual at this time of year. Operations in building brick plants continue at a satis factory level. It is reported that the percentage of common brick used in building is increasing. The demand for hollow tile is strong, and factories are operating at 100 per cent capacity. Unfilled orders o f paving brick have gained during the past three months. The Ohio Department of Agriculture reports that the prospect fo r a peach crop is 60 per cent above last y ea r’s production, and that present indications point to about an 80 per cent crop o f apples, as against a 65 per cent yield last year. Cherries and pears also promise larger crops than in 1925. Reports from the fruit-growing districts indicate that practically all fruits show a condition considerably above the average. This is especially true of the lake region, where the backward spring retarded budding until after the danger of killing frosts was past. Fruit-growers point out that an exceptionally poor year is almost invariably followed by a bumper crop, and assign as the reason fo r this fact that the year o f rest permits the trees to regain their vitality. THE MONTHLY BUSINESS Tobacco Setting out of tobacco plants in Ken tucky has been going on rapidly during the past month, after having been de layed somewhat by unseasonable weather. Rains early in June aided materially in putting the ground in satisfactory shape. So far, a good stand is indicated. The Burley Tobacco Growers’ Cooperative Association recently sold 7,000,000 pounds of re-dried tobacco of the 1923 crop to the Liggett and Myers Co. The amount in volved was about $1,250,000. Retail Trade In other parts of the Review, reference has been made to the belated spring de mand which has recently made its ap pearance. This is very clearly shown, in this District at least, by department store sales in May, which were larger than for any other May in the post-war period except 1923. Every reporting city in the District except New Castle experi enced an increase in sales over May, 1925, the gain for the 70 stores combined being 4.4 per cent. The good showing in May did not quite make up for the loss of 6.7 per cent which occurred in April, and sales for the first five months of 1926 were 0.2 per cent less than last year, whereas for the first quarter of this year they were 0.7 per cent greater. Cities making particularly good gains in May were Dayton, 27.0 per cent; Cincinnati, 9.5; and Youngstown, 7.9. For the five months, the only cities to show increases were Cincinnati, Columbus, and Dayton. Sales of 28 out of 52 separate departments were larger in May than a year ago. The largest gains were 29.5 in knit underwear; 25.2 in petticoats; and 20.6 in aprons and house dresses. Departments showing a gain of more than 10 per cent were leather goods, men’s furnishings, boys9 wear, women’s dresses, juniors’ and girls’ ready-towear, millinery, hosiery, knit underwear, infants’ wear, petticoats, aprons and house dresses, men’s and boys’ shoes, and toys and sport goods. Departments showing declines of more than 10 per cent were woolen dress goods, laces and embroideries, silverware, umbrellas, women’s suits, women's skirts, furs, waists and blouses, sweaters, and musical instruments. Percentage changes in departments doing the largest business in May were: % change—May 1026 compared with May, 1925 Silks and Velvet.; — 2.8 Men’s Clothing ! 5.6 Men’s Furnishings |11.1 Women’s Coats — 1.1 Women’s Dresses 1-14.2 Millinery |16.6 Women’s and Child ivii’s Hosiery S18.7 Women’s Shoes -f 9.6 Furniture !- 6.3 Draperies, Lamps, Shades j~ 1.2 Floor Coverings f 0.3 REVIEW 5 Wholesale Trade Sales of all reporting wholesale lines were higher in May than in the same month last year with the exception of groceries. Shoes gained 16.8 per cent, drugs, 8.2; dry goods, 3.7; hardware, 2.1; while groceries lost 3.8 per cent. For the first five months of 1926, sales of drug firms increased 7.9 per cent, and those of shoes, 4.6 per cent. Groceries showed a loss of 2.5, hardware 3.4, and dry goods of 5.2 per cent. As compared with April, sales in May were greater in the case of dry goods, hardware, and shoes, and less in the case of groceries and drugs. Stocks on hand of groceries, dry goods, hardware and shoes were less in May than a year ago, and also less than in April. Open book accounts of all lines except hardware were larger in May than a year ago, but as compared with April, May showed a reduction for all lines except shoes. General Manufacturing In answer to an inquiry by this bank as to whether any noticeable slowingup in business had recently occurred, a .number of important manufacturers in representatives lines in this District replied in the negative. It was generally admitted that some recession had taken place earlier in the year, but in the past few weeks increased activity is reported in many cases, owing to the belated spring demand. Busi ness is now what might be expected at this season and in quite a few instances is running moderately ahead of a year ago. Although price reductions tend to reduce profit margins and although conditions in a few lines are still “ slow” , most of the replies showed a more confi dent feeling than was apparent a month ago. Electrical goods makers report orders up to last year, with prospects favorable. Late planting of crops has hampered the agricultural implement lines to some extent, but these have lately been picking up. A slight decrease in the demand for plate glass is noted, caused partly by large importations and partly by smaller auto mobile production. Window glass has also been affected by large imports, which attained a high record in April. Competition in the paper trade is keen, with merchants showing a tendency to curtail buying and reduce inven tories. Conditions in this line appear at present to be less favorable than a year ago. Several lines of ma chinery manufacturing report operations at a very satisfactory level, and in one case foreign business has shown an encouraging increase. Boxboard makers are operating on a normal scale, but reductions in prices have been an adverse factor. Manufacturers of food products state that business in the last month or two lias increased over last year. Orders for printing and lithographic supplies are ahead of 1925. 6 THE MONTHLY BUSINESS REVIEW Fourth District Business Statistics (All figures are for Fourth District unless otherwise specified) May 1926 Bank Debits (23 cities) Savings Deposits (end of month) Ohio (43 banks) Western Pennsylvania (27 banks) Total (70 banks) Commercial Failures— Number 44 44 — Liabilities Postal Receipts— 9 cities Sales— Life Insurance— Ohio and Pa, “ — Dept. Stores— (54 firms) 44 — Wholesale Grocery (49 firms) 44 — 44 Dry Goods — <18 44 ) 44 — Hardware — (16 44 ) 44 — 44 # Drugs — (16 44 ) Building Permits, Valuation— 13 cities Production — Pig Iron, U. S. *« — Steel Ingots, U. S. 44 — Automobiles, U. S. Passenger Cars Trucks ** — Bituminous Coal, 4th Dist. « — Cement: Ohio, W. Va., Wn. Pa 44 — Petroleum: Ohio, Pa., Ky. — Shoes, 4th Dist. 4\ — Tires.. U. S. Bituminous Coal Shipments (from Lake Erie ports) Iron Ore Receipts (at Lake Erie ports) *5 months average *April *Jan.-April 4Fij igures Confidential Millions of dollars Thous. of dollars Actual Number Thous. of dollars Thous of Tons Actual Number ♦« t« Thous. of Tons barrels Retail and Wholesale Trade No. of Reports DEPARTM ENT STORES Akron...................................................... 5 Canton............................. ! ! ! ! ! ! 5 Cincinnati................................]. 7 Cleveland................................. Columbus.................................... ........... 7 Dayton.......................................[ 3 New Castle............................................. 3 Pittsburgh............................... ^ Toledo......................................; ; s Wheeling..................................... ........... 5 Youngstown............................ ............... 3 Other Cities................................ 14 District.................................... ' * 70 WEARING APPAREL Cincinnati.................................... 6 Cleveland................................................ 3 Other Cities................................ 9 District........................................ 18 FURNITURE Canton......................................... ........... 3 Cincinnati.................................... 11 Cleveland..................................... 10 Columbus..................................... 16 Dayton......................................... 5 Toledo.......................................... 5 Other Cities................................ 11 District......................................... ol CHAIN STORES* Drugs— District.......................... 3 Groceries— District................................ 5 WHOLESALE GROCERIES Akron........................................... 3 Cleveland..................................... 4 Erie............................................... 4 Pittsburgh.................................... 10 Toledo.......................................... 3 Youngstown................................. 3 Other Cities................................ 27 District......................................... 54 WHOLESALE DRY G O O D S ... 18 WHOLESALE DRUGS................ 16 WHOLESALE H A R D W A R E .. . 16 WHOLESALE SHOES. . . . . . . . . . 6 ♦Sales per individual unit operated. Percentage Increase or Decrease SALES SALES May 1926, Jan.-May 1926, compared with compared with May 1925 Jan.-May 1925 — 3.4 7.4 1.6 — 0.8 0.6 — 12.0 — 2.5 27.0 - 6.1 — 2.4 — 3.3 — 4.7 — 0.8 4.8 — 0.2 16.9 2.4 7.1 — 1.3 0.7 11.6 - 9.7 3.0 0 .9 1.2 7.9 9 .9 * .4 12.1 - 0,1 3.1 3.4 9 .5 6 .4 6.0 -12.9 - 5.5 - 1.9 - 12.2 - 1.6 - 7.4 1.8 - 3.8 3.7 8.2 2.1 16.8 4 .6 - 1.2 10.8 - 4.8 - - 0.1 -1 1.9 1.5 - 6.5 3.6 - 2.5 - 5.2 7,9 - 3.4 4.6 Jan.-May 1926 + 3.2 14,789 13,944 + 6.1 646,755* 237,914* 884,669* 601,872* 228,936* 830,808* 810 17,226 13,893 472,417 114,443 33,780 16,518 10,510 8,608 128,619 16,302 19,179 + 7.5* + 3.9* + 6.5* + 2 3 .6 + 2 2 .3 + 9 .6 1,569,941 193,940 68,878* 5,032 7,137’ + 1 5 .4 + 1 5 .0 +14.3* — 4.1 + 0 .3 * + 4.8* — 0 .0 7 + 7 .8 2,766 660,546 240,729 901,275 155 4,473 2.944 99.779 25,407 6,687 3,076 2,173 1.781 24,915 3,481 3.945 615,068 231,564 846,632 153 4,496 2,728 97,079 24,591 6,945 2,967 2,128 1,645 29,439 2,934 3,458 + + + + — + 394,781 51,374 16,6855 1.781 1,875* 382,972 42,322 14,078* 1,540 1,871* + 3.1 + 21.4 +18.5* +15.2 4,058* 4,091 3.338 4,071* 2,994 5,410 7.4 4.0 6.5 1.3 0.5 7.9 + 2.8 + 3.3 — 3.7 + 3.7 + 2.1 + 8.2 — 15.4 + 1 8 .6 + 4 1.1 + 0 . 2* —43.7* — 0.3* + 36.6 — 38.3 Jan.-May 1925 1,001 21,066 15,224 477,082 113,379 32,880 15,654 10,157 9,288 106,049 16,612 20,509 1,811,771 222,981 78,7083 4,827 7,162* 4 1S.4133 5,159 3,338 4 15,424® 4,785 6,275 change + 1.0 — 0 .9 — 2 .7 — 5.2 + 7.9 — 17.5 + 1 .9 + 6 .9 — * 6.8 Index Numbers of Trade in the Fourth Federal Reserve District (Average Monthly Sales for the Five-Year Period 1919-1923, inclusive-100) May May May May M ay 1922 1923 1924 1925 1926 Department Stores (5 4 )* .... 101 119 114 112 116 Wholesale Drugs (15)*......... 92 107 105 103 Wholesale Dry Goods (17)*. 74 84 68 67 70 Wholesale Groceries(4 9 )* ... 79 89 85 81 78 Wholesale Hardware (1 5)*.. 98 126 108 105 107 Wholesale Shoes (6 )* ............ 94 99 85 71 81 Wholesale— All (102)*.......... 83 95 86 82 84 Chain Drugs (3 )* ................. 98 103 101 102 108 *Number of firms. 111 Debits to Individual Accounts 1.1 15.2 1.3 0.2 16.2 25.8 13.7 13.5 8.5 >change 2,854 4 pairs casings tons May 1925 Akron...................... Butler, Pa............... Canton.................... Cincinnati.............. Cleveland............... Columbus............... Connellsville, Pa.. . Dayton................... Erie, Pa.................. Greensburgh, Pa.. . Homestead, Pa....... Lexington, Ky........ Lima....................... Lorain..................... Oil City. Pa............ Pittsburgh, Pa........ Springfield.............. Steubenville........... T oledo.................... Warren................... Wheeling, W. V a... Youngstown........... Zanesville............... Totals................. (In Thousands of 5 weeks % change ending from June i#, 1925 1926 108,715 + 9.8 12,170 — 3.0 54,121 — 8 .8 396,217 — 0.1 845,551 + 5.3 181,863 + 1 1 .4 6,740 + 2 0 .7 95,482 + 8.0 41,934 + 4.3 22,788 — 0.4 5,822 + 3.4 23,269 + 9.3 18,645 I 3.S 7,459 — 6.9 16,496 — 8.0 1,062,152 + 9.0 26,883 + 6 .6 13,602 19 255,075 + 1.7 13,764 — 13.4 49,701 + 0 .4 79,971 + 11.3 15,326 + 7.0 3,353,746 + 5.5 Dollars) 1926 to date (Dec. 31June 16) 525,427 61.749 274 950 2.110*390 4 101 064 880 129 28*736 478 350 l^ S O 116 732 24 994 141*'»7S 89,547 33 113 74 385 5 254 241 135 235 61 825 1 206’ 047 7^732 269 289 379 272 711717 16,585,179 1925 to % Incr. or date deer. 1926 (Jan. 1- over 1925 June 17) 455,132 + 1 5 .4 60,930 + 1.3 271,306 + 1.3 1,948,618 + 8.3 3,765,168 + 8.9 772,942 + 1 3 .9 26,001 + 1 0 .5 415,019 + 1 5 .3 184,619 + 5.1 111,949 + 4.3 25.176 — 0 .7 139,777 + 1.1 104,178 — 14.0 38,076 — 13.0 79,759 — 6 .7 5,098,115 + 3.1 119,304 + 13.4 64,189 — 3.7 1,122,105 + 7.5 74,695 2.6 250,835 + 7 .4 372,148 + 1.9 68.176 + 5.2 15,568.217 + 6 5 THE MONTHLY BUSINESS REVIEW 7 Summary of National Business Conditions PER CCNT. 200,-------- PERCCNT -------- .200 (By the Federal Reserve Board) Production in basic industries and factory employment declined further in May, while wholesale prices advanced slightly for the first time in seven months. The volume of trade at wholesale and at retail increased partly as the result of more favorable weather conditions. Production Activity in most lines of industry was smaller in May than in April. The reduction was reflected in a decreased volume of output as well as in a de cline in the number of factory workers and in total wage payments. The WHOLESALE PRICES largest declines occurred in the textile, leather and shoe, and iron and steel industries. Production of automobiles continued large in May. In the lumber, 1923 1924 1925 cement, brick, and glass industries activity was maintained and there were Index of U. S. Bureau of Labor Statistics (1913—100, base adopted by Bureau). Latest seasonal increases in the output of certain food products. The volume of figure—May, 152. building contracts awarded declined further in May but continued larger than in May of last year. Figures for the first three weeks of June indicate further decreases and the volume of contracts awarded was smaller in that period than in the corresponding weeks of 1925. Recent declines in contracts as compared with last year have been particularly large in middle western and southeastern districts. Reports by the Department of Agriculture indicate that the composite condition of crops on June 1 was 8 per cent below the average condition on that date for the past ten years, and somewhat lower than the average condi tion a year ago. On the basis of the June 1 condition, the estimated yield FACTORY EMPLOYMENT of winter wheat was 543,000,000 bushels as compared with an estimate of AND R^YROLL 549,000,000 bushels made a month earlier and final yield of 398,000,000 bushels J______ L in 1925. 1922 1923 1924 192 S Trade Federal Reserve Board’s index of factory em ployment and payrolls (1919—100). Latest With more favorable weather in May than in the preceding month the figures. May, Employment—95; Payrolls—109. volume of wholesale and retail trade increased and was larger than in May BILLIONS orDOLLAR* BILLIONSor DOLLARS 10 of last year. Department store sales exceeded those of earlier months of I'O this year, and total sales for the first five months were larger than for the corresponding period of any preceding year. Merchandise stocks carried by wholesale firms were slightly smaller at the end of May than a month earlier. Stocks of groceries, hardware, and drugs were larger than a year ago, but those of meats, dry goods, and shoes were smaller. Stocks at department stores declined more than usual in May and were only slightly larger at the end of the month than a year ago. Railroad freight shipments increased, and in May and in the first two weeks of June were above those of the same weeks of previous years. Shipments of miscellaneous commodities were MEMBER BANK CREDIT especially large. _______ 1----------'______ !_____ J 1922 1923 1924 1925 Prices Monthly averages of weekly figures for bank* The general level of wholesale commodity prices, according to the index In 101 leading cities. Latest figures are aver of the Bureau of Labor Statistics, rose slightly in May for the first time since ages for first weekly report dates in June. last August. Price advances were shown both for agricultural and nonagricultural commodities. Among the principal advances were those in the prices of gasoline, livestock and meat, while prices of grains and cotton de clined. In the first three weeks of June, prices of grains, livestock, silk, and non-ferrous metals advanced, while those of sugar, cotton, cotton goods, and pig iron declined. Bank Credit Growth in loans on securities and commercial loans cari’ied total loans and investments of reporting member banks in leading cities in the middle of June to a new high point above the total reached at the close of last year. The large reduction in the volume of loans on securities by New York City banks since the beginning of the year has been more than offset in the total Weekly rates in New York money market; of loans and investments of all reporting banks by increases in commercial ce n e r d a l paper rate on 4-to-6 months loans and in investments of banks both in New York City and outside. paper; and acceptance rate on 90-day paper. , Index of National Business Conditions The base (100) for all the charts except the first is the monthly average for the 5 years 1919-1923 inclusive. For the first chart, the base is the monthly average for the three years 1921-1923. PEFCLNT BUILDING 1 L 200 t50 100 50 r PERMITS F ) PERCENT ft I H n J\* PO O PERCENT 200 100 A v /H J* EXF OF MERCHANDISE PERCEMT. *0RT5 _____________ --------- --------- 200 200 150 150 --------- too 100 A / ▼ a 1923 COAL 1924 I92S 1926 ° PRODUCTION 0 192 1 1922 SO 1923 1924 192$ 1926 ^ 0 l X% ZZ PERCENT ■■■ \^A 0 150 -- 1/ w 1921 >922 \ \/ V ■]K * V 1923 1924 1. 2. 3. 4. 5. 1925 too 50 0 r9 2 6 Member Bank Credit: Loans, May— 120. Investments, May— 140, Member Bank Deposits: Demand, May— 120. Time, May— 187. Check Payments* except New York, April— 129. Commercial Failures, May— 134. Retail Trade, May— 122. 6 Wholesale Trade, April— 92. 100 f 50 K 1922 200 150 200 tA oq 1 ja 50 1921 PERCENT L OAD INO S 150 / o CAR PERCeiMT. 7. Building Permits. May— 194. 8 . Car Loadings. May— 125. 9. Exports of Merchandise, May— 75 . 10. Bituminous Coal Production, May— 98. 11- P i* Iron Production. May— 139. 12. Automobile Production, May— 202. 1924 1925 1926 0
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