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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. 16
Cleveland, Ohio, June 30, 1934
Despite the slowing-down in automobile production and
the consequent decline in buying of parts and materials
in May, little change in the period was apparent in the
total volume of fourth district industrial activity and
general trade. Some lines continued to show greater-thanseasonal increases, but in a few instances the upward
movement, according to reports, was due to abnormal
factors and did not represent actual demand for goods
in channels of final consumption.
A falling-off is not unusual in June or early summer
in many production lines in this dist rict. In some cases
a rather marked reduction already has occurred, partly
because large inventories o f finished goods are on hand.
Despite this fact, reports from all sections o f the district
indicate that, so far as many small manufacturing com
panies (engaged in production of everything from toys
and novelties to large furnaces) are concerned, operations
continue at relatively high levels, all things considered.
There was a slight increase in employment in this dis
trict from April to May, according to reports.
Seven
hundred and forty-five companies reporting to the Ohio
State University Bureau c f Business Research indicated
that the number o f employees was up 38.8 per cent in
May from a year ago and 2.2 per cent from April. In ths
preceding five years no change from April to May was
reported.
Operations in the automobile industry, and consequent
ly at parts and accessory plants, fluctuated rather widely
in May and early June. There was rather a pronounced
downward movement throughout May, which was con
trary to the seasonal trend o f past years. This resulted
in part from the fact that assemblies had increased quite
rapidly in early months o f this year. Retail sales did not
expand at a proportionate rate and an accumulation of
finished cars remained to be disposed of. Rather general
price reductions in early June are reported to have stimu
lated buying considerably and weekly production sched
ules indicated that operations at many plants were ex
panding contrary to the seasonal trend o f past years.
Steel ingot production was little changed in late May
or the first half o f June, though often there is a decline
in operations at this season. It was generally felt, how
ever, that a part o f the recent activity represented the pro
duction of goods for inventory purposes as a hedge against
higher prices which are effective July 1, or an inter
ruption to the supply. A rather sharp decline ia operat
No. 6
ing rates was reported in the third week o f June as de
liveries on second quarter contracts were being com
pleted.
Tire production was curtailed quite sharply in May
and early June to permit an absorption o f inventories
in hands o f manufacturers and dealers and also because
of a decline in replacement sales. Most other manufac
turing lines showed little change in recent weeks. Glass
production was down quite sharply, but this was partly
seasonal.
Output o f electrical apparatus continued in
good volume. Orders for machine tools declined slightly
in May; the paint industry continues to operate at a high
rate; paper and boxboard plants curtailed production and
shoe factories generally are operating at the highest
level since 1929. The dollar value o f building contracts
awarded in this district in May was considerably less than
in April, a contrary-to-seasonal reduction. W hile most
of the falling-off was due to a contraction in public works'
and utility awards, a decline in other types o f nonresidential building was apparent.
All lines of retail and wholesale trade increased at a
greater-than-seasonal rate in May and the dollar volume
o f sales continued to be approximately 25 per cent above a
year ago. Conditions in agricultural sections of the dis
trict were improved by rain in mid-June, but in many
cases it was too late to be of benefit to hay or early grain
crops. Retail sales in the smaller communities have de
clined in recent weeks.
An indication o f improved business conditions this year
is found in the record o f commercial failures as compiled
COMMERCIAL
FAILURES
FOURTH DISTRICT
THE MONTHLY BUSINESS REVIEW
2
by Dun and Bradstreet. In this district there were only
310 commercial failures listed in the first five months
of 1934, a reduction of 67 per cent from the same period
o f 1933 and the smallest number for any similar period
since 1920. Liabilities of the defaulting concerns also
were down sharply.
FINANCIAL
During late May and the first three weeks of June
little change was apparent in the financial situation in the
fourth district.
Bank debits to individual accounts at
24 cities increased at a greater-than-seasonal rate in
May and were 32 per cent greater than in the same
month of 1933, but a falling-off occurred in the first three
weeks of June, the increase in that period from last year
being approximately 16 per cent.
Savings deposits increased slightly in May at selected
banks in Ohio, but W estern Pennsylvania banks showed
a falling-off in the period.
These deposits at all re
porting banks on June 1 were 6.1 per cent larger than a
year ago.
At the Federal Reserve Bank of Cleveland total re
serves increased about $25,000,000 in the four weeks
ended June 20. The increase was due largely to deposits
of the United States Treasurer. The total volume of credit
extended by this bank showed practically no change in
the four latest weeks, the only variation of any sort be
ing in bills discounted for member banks which were fur
ther reduced in the period. The total volume of credit
extended was slightly greater than a year ago, but it
represented almost entirely investments in United States
Government securities.
Bills discounted for member
banks in this district together with acceptances held
amounted to less than $2,000,000 out of a total volume
of credit extended by this bank of $214,000,000.
Circulation of Federal reserve notes and bank notes
declined a trifle in the four latest weeks and the total
outstanding was approximately the same as a year ago
at this time. W hile the change in note circulation at this
season o f past years was slight, an upward movement
generally was apparent.
Reserve deposits increased quite sharply in late May
and the first two weeks of June to a new high level of
$250,000,000, but in the third week o f the latest month
a falling-off occurred. Compared with a year ago reserve
deposits of member banks were up slightly more than
$100,000,000, which is approximately the amount of re
serves in excess of legal requirements o f member banks in
this district.
W eekly reporting member banks ia leading cities in
creased their holdings of Government securities in the
four latest weeks by about $21,000,000, or 3.8 per cent,
but investments in other securities and loans o f all types
were reduced in the period. As shown on the accom
panying chart, however, total credit extended by these
reporting banks, comparable figures fo r which are avail
able since the banking holiday of 1933, reached a new
high level for this period. The expansion was due en
tirely to increased holdings o f Government securities.
Deposits also increased quite sharply in the fou r latest
weeks, a greater part o f the gain being in demand ac
counts. Compared with a year ago, when demand de
posits were high just prior to the abolishment of in
terest payments on these accounts, an increase of about
five per cent was shown. Daily average excess reserves
of all member banks in this district were reduced slightly
in April, the latest month for which complete figures are
available, but they amounted to approximately $1 <>0,000,000 in the period. Preliminary figures indicate a further
slight reduction in these reserves in May, but they still
continue at an unusually high level.
MANUFACTURING, MINING
Iron and
Steel
Steelworks operations, as a national
average, increased from 59 per cent of
capacity in the week ended May 19 to
6 2 per cent in the week closed June 16, but declined
slightly in the third week o f the month, to approximately
59 per cent of capacity. Recent operations have been
maintained at the highest levels in fou r years, nut it was
generally felt that a considerable part o f the steel spe
cified in recent weeks was not fo r immediate consumption.
A ctivity increased generally, contrary to the sea
sonal trend for this time o f year, and the removal tem
porarily at least o f the strike threat caused steel opera
tions to drop only slightly indicating that possibly less
steel was being ordered in anticipation of an interruption
to the supply than was generally thought to be the case.
In the Cleveland-Lorain district in the same period the
rate dropped two points, from 78 per cent. At Youngs
town it advanced from 62 to 66 and then declined to 62,
and in the Pittsburgh district rose from 51 to 56, but
receded one point. At W heeling, mills were operating
at 81 per cent of capacity, an increase o f seven points
in the two latest weeks.
Producers have been active in completing shipments on
second quarter contracts before Juij 1 when higher prices
are expected to become effective, but there is a dearth
of contracting for the third quarter. Under the revised
steel code prices once named for a quarter cannot be
advanced, but they may be reduced by any producer at
any time without the consent of the industry’s code au
thority. Hence, consumers see little incentive to cover
for a full quarter, unless it be to insure delivery.
Fears regarding difficulties in delivery have been al
layed considerably by the decision of steelworkers not to
strike until further efforts have been made to settle the
points in question. The iron and steel industry therefore
apparently is heading into a dull mid-summer period,
when a strike would be less effective than otherwise.
Autom obile manufacturers have been specifying liber
the
m onthly
b u s in e s s
ally, evidently to increase their stocks. Railroads also have
been fairly active in the market, while building construc
tion remains lo.v. Steel’s scrap composite, after declining
ten consecutive weeks, advanced four cents to $10.29, al
though there is little trading.
Daily average pig iron production in May was 6 6,185
gross tons, which, compared with the 57,873-ton rate of
April, was an increase of 8,312 tons, or 14.4 per cent.
Total production was 2,051,730 tons, a gain of 315,513
tons, or 18.2 per cent, over the 1,736,217 tons of April.
For the five months ended in May, output has aggregated
7,909,970 tons, against 3,179,797 tons in the correspond
ing period of 1933. Furnaces in blast at the close of May
numbered 116, a net increase of seven in the month.
Steel ingot production in May averaged 125,807 gross
tons daily, 7.1 per cent over April. The rate of gain was
much slower than in preceding months of this year, but
it was greater than seasonal; February increased 25 per
cent over January; March 12 per cent over February, and
April 13.3 per cent over March. Total output in May—
3,396,783 tons— compares with 2,935,631 tons in April,
and was the largest of any month since June 19 30. Five
m onths’ output this year totaled 13,338,035 tons, 109 per
cent over the period last year.
Iron and steel exports in April— 201,539 gross tons—
were 22 per cent lower than March, but 121.4 per cent
higher than in April last year. Imports for the month—
2 6,862 tons— were down 30.1 per cent.
Coal
Coal production at fourth district mines
in May was up 8.2 per cent from April,
a slightly greater increase than the av
erage of preceding years, but smaller than was
reported for the entire country in the period.
At
11,805,000 tons, output of local mines was 22 per
cent greater than in May of 1933 and for the year to date
production totaled 63,114,000 tons, an increase of 34.9 per
cent from the first five months o f last year. Stocks of
coal in hands of industrial consumers increased about five
per cent in April and represented approximately 32 days’
supply at the current rate of consumption. Stocks were
built up partly in anticipation of higher prices which
became effective at the time new contracts were drawn up.
Shipments of coal from Lake Erie ports to upper lake
ports for the season to June 1 were 45 per cent above
the same period of 1933 and in the month of May were
up 54 per cent from the same period of last year. Local
shippers stated that the coal movement so far this year
has been somewhat below expectations and demand for
coal has been limited because of uncertainties in the gen
eral situation. Output of mines in recent weeks has been
greater than in 1932 or 1933, but slightly less than in the
corresponding periods of 1931.
Automobiles
Production of automobiles in May de
clined week after week even though
an upward trend was shown at this
time in most past years. The reduction in output from
April, however, was only 6.5 per cent and at 331,641 cars
and trucks, a gain of 51.9 per cent was recorded from
May 1933, according to the Department o f Commerce.
In the first five months 1,418,869 units were assembled, a
gain of 88.2 per cent from last year and the highest for
any similar period since 1930. It is generally felt that
output so far this year has been considerably in excess of
REVIEW
3
retail sales which slowed down follow ing the price in
creases in several lines this spring.
Expanding inven
tories in the early months of the year in preparation for
the spring trade are not unusual, but this year the supply
o f cars rose sharply due to a number of unusual cir
cumstances.
When retail sales failed to increase at the expected
rate assembly plants reduced their schedules, some of
them quite sharply, but at the same time price reductions
were announced on many models.
This, according to
reports, caused some sales to be made which had been
deferred and production in the second and third weeks
of June, according to Cram’s reports, was up contraseasonally. Introduction o f new models also was helpful in
this respect, but the gains were confined chiefly to the
low-priced cars.
In May passenger car production was 273,765 units,
a gain o f 48 per cent from the corresponding month of
last year. This increase is somewhat smaller than the
80 per cent gain shown for the first five months, but in
1933 production was stepped up sharply in May and June
follow ing the unusually dull spring months.
So far as truck production was concerned the month
o f May showed a gain of 72 per cent from 19 33 and for
the year to date an increase of 133 per cent was reported.
Most local truck companies report operations at high
levels, in some cases nearly equaling previous records.
New passenger car registrations in Ohio and Western
Pennsylvania in May totaled 18,892 units, according to
reports, a gain of 36.4 per cent from last year. For the
year to date registrations were up 67.2 per cent from 1933.
Rubber
Tires
Operations in the tire industry declined
in recent weeks in order that large in
ventories built up in the first four
months of this year might be absorbed. Prior to May 1
manufacturers produced considerably more tires than
were shipped from their factories and this, coupled with
the fact that dealers’ stocks were augmented in the pe
riod as a hedge against possible increased prices or an
interruption at the source of supply, placed the industry,
as a whole, in an overstocked position. Manufacturers’
stocks of tires on May 1, according to the Rubber Manu
facturers’ Association, exceeded 11,600,000 casings, the
highest since 19 30.
Manufacturers’ tire sales declined
in April and, according to reports, the downward trend
continued in May and early June.
The falling-off oc
curred principally in sales of tires to be used for replace
ments, original equipment business having held up rea
sonably well in May and early June.
So far as production in May was concerned figures on
crude rubber consumed indicate that a falling-off occurred
in that period. At 43,013 tons, rubber takings were
down 4.3 per cent from April and they were 2.4 per cent
less than in May 1933. In this connection, however, the
industry was very active in May, June and July o f 1933
and in June and July o f 19 32. In fact production in
these periods was at the highest level in several years,
the industry as a whole being subject to unusual demands,
In April, the latest month for which complete figures are
available, tire production was up 52.7 per cent from the
corresponding period of 1933 and for the year to date a
gain o f 87 per cent was shown. Output in April was down
4
THE MONTHLY BUSINESS REVIEW
from the high level o f March and in the latest month
exceeded shipments only slightly, indicating that produc
tion was being brought more in line with demand.
Fourth district rubber factories reported an increase
o f 0.6 per cent in employment in May from April, com
pared with a five-year average April-to-May gain of two
per cent. Compared with May 1933, a 42 per cent in
crease in the number of employees was shown at 18 manu
facturing plants.
So far as the crude rubber situation is concerned there
was a sizable increase in world rubber stocks in the
early months of this year; prompted somewhat by the
fact that a restriction on crude rubber production was
thought to be forthcom ing; a plan designed for this pur
pose became operative on June 1.
Present stocks of
crude rubber are ample and represent approximately a
year’s supply, so that while announcement o f the restric
tion plan caused prices to increase sharply to the high
est level in several years, part o f the gain was the result
of speculative buying and was follow ed by a reduction
in June. Imports o f crude rubber to the United States
in May totaled 47,954 tons, a slight increase from April,
but a gain of over 20,000 tons from May 1933. Domestic
stocks on May 30, at 351,329 tons, were practically un
changed from a month ago, but they were slightly smaller
than at the close of May 1933.
A relatively minor labor disturbance occurred in the
tire industry in mid-June, but though operations exhibited
a downward trend in order that excessive stocks might be
absorbed, no tire shortage is expected.
Clothing
No definite trend was discernible in the
clothing industry in May and the first
half o f June. Some companies reported
increased operations in the period which were con
trary to the seasonal trend o f most years, while
others reported little change. Employment at 41 man
ufacturing plants reporting to the Ohio State Bureau
of Business Research was up 3.3 per cent from April to
May, a considerably greater than seasonal improvement,
the five-year average April-to-May change being an in
crease of only 0.4 per cent. Most of the expansion was
in the miscellaneous and wom en’s ready-to-wear field.
Fall samples of women's wear generally are presented
to buyers in late May or early June and so far orders have
been quite encouraging. The dollar volume shows a con
siderably greater increase than the number of units sold,
but prices are up from a year ago, although some reduc
tion has occurred in recent months from the high point
touched this spring.
So far as the textile industry was concerned there has
been a slowing-down in operations generally in recent
weeks; hesistancy in regard to the placing of orders for
fall materials is reported because of the relatively high
prices.
The dollar value of retail clothing sales in May at fourth
district department stores was still considerably above
May 1933, but the gains, ranging from 20 to 35 per cent,
were little more than the increase in prices in the pe
riod. Manufacturers report that sales have not been in
sufficient volume to absorb all of the surplus resulting
from the high rate o f operations in the spring months of
this year. Unusually hot weather in May and June caused
a demand for summer goods and stocks of heavier spring
clothing are somewhat greater than normally are reported
at this time o f year.
Other
M anufacturing
A llow ing for seasonal changes, little
variation was apparent in operations in
late May and the first half o f June in
most o f the small manufacturing lines o f this district
for which inform ation is available. The spring peak, how
ever, appears to have been passed, in some instances in
April, but in others not until May and the downward
seasonal movement continued in June in several lines.
Large inventories built up earlier this year remain to be
worked off in some fields while others report a normal
condition in this respect.
Autom obile Parts, Accessories. The downward trend
in automobile parts and accessory production evident in
early May continued in the latter part o f that month and
the first half o f June. W hile this was seasonal, the falling-off was greater than the decline in automobile pro
duction, indicating that assembly plants had built up in
ventories o f parts and materials this spring at a con
siderable greater-than-seasonal rate. Employment at 34
Ohio plants was down slightly in May from the preceding
month, but continued over 80 per cent above a year ago.
Reduced automobile prices which, according to reports,
have stimulated retail buying, caused no appreciable
change in orders for parts or materials.
B rick and Tile. Operations at brick and tile plants in
May failed to show the usual seasonal increase although
they were up slightly from the preceding month. Failure
o f the construction industry to show a seasonal expan
sion this spring was chiefly responsible for the unfavor
able showing. April production of face brick at 54 iden
tical plants throughout the country was 76 per cent above
April 1933, but only five per cent o f the industry’s ca
pacity was engaged in the period.
China, Pottery. Operations at local china and pottery
plants declined rather sharply in May and early June, but
the high rate of activity in the first four months of this
year was thought to be partly responsible for the fallingoff, for rather large inventories were created in that pe
riod which now are being scaled down. A contraction in
production in early summer months, however, is not un
usual. Sales continue to be above a year ago and col'
lections show considerable improvement.
Electrical Supplies. Operations in the electrical appa
ratus and supply industry continued at a high rate in
late May and the first half o f June, and except for a slight
reduction in the demand for refrigerators, which was sea
sonal, no falling-off was reported. Twenty-four local con
cerns reported an increase of 3.1 per cent in employment
from April to May, a greater-than-seasonal improvement,
and in the latest month the number o f employees was up
46 per cent from May 1933. Some companies report that
orders received recently were more than twice as large
as in the corresponding period o f 1933, and a considerable
backlog of unfilled orders has been built up. Inventories
o f raw materials are larger than a year ago.
Glass. The decline in glass production reported last
month continued in late Hay and early June, particularly
in the plate and window glass division o f the industry. The
reduction in prices had little effect on buying and some
of the larger companies are operating at about 50 per
THE MONTHLY BUSINESS REVIEW
cent of capacity; in some cases this was lower than a year
ago. Employment at local factories declined two per cent
from May to April in contrast with a five-year average in
crease for this period o f 2.6 per cent. A gradual slacken
ing of orders, resulting in a curtailment of operating rates
and shipments at a greater-than-seasonal rate, was re
ported by makers of molded glassware in this section in
recent weeks. Drought conditions have reduced the de
mand for food containers considerably.
Hardware, Machine Tools. The index of machine tool
orders received by members of the Machine Tool Builders'
Association declined slightly in May, but the falling-off
was less than occurred in the first four months of this
year. Nevertheless, marked improvement, both in em
ployment and operating rates was evident from a year ago.
Sales of hardware and small tools also have declined in
recent weeks, the falling-off being about proportionate
to the decline in automobile assemblies. Some manu
facturers reported rather large stocks o f finished goods
on hand while others stated they are at a minimum.
Paint. In the paint industry little change was apparent
in late May and early June from a month ago, but gains
continue to be shown from last year when the industry
was operating at a very high rate prior to the time in
creased prices became effective.
Industrial paint sales
continue much above last year, although a slight falling-off
was reported in recent weeks.
Paper. Little change was reported in the paper and
boxboard industry in late May and the first half o f June al
though in the latter period there was a seasonal reduction
in operations. The industry as a whole was operating at
approximately 51 per cent of capacity in June, while for
the year to date an average of 59 per cent was indicated.
Shoes. Shoe production at local factories in the first
four months of this year (May figures not yet available)
was 7.9 per cent ahead of a year ago and the highest
since 1929. April production was 23 per cent greater
than in April 1933, and preliminary reports indicate that
operations held up quite well in May and early June.
Orders for fall delivery have been placed in satisfactory
volum e and, except for a slight reduction in operations
due to the change in patterns, activity has continued at
a high rate so far this year.
TRADE
Retail
A fter allowing for seasonal changes,
the dollar volume of retail trade at
fourth district department stores in
May was up rather sharply from April and the corrected
index rose nearly six points to 78.1 per cent o f the 19231925 monthly average. This was a new high level for
the present upward movement and the index wTas higher
than since May 1931. Compared with a year ago dollar
sales were up 26.1 per cent and sales in May of last
year were relatively large follow ing the low level o f March
and April. As has been the case for over a year higher
prices were responsible for the sizable share of the in
creased dollar volume, but according to Fairchild’s re
tail price index, department store prices have declined in
the past two months. Despite this decline retail prices
show an increase o f approximately 26 per cent from last
year.
So far as individual cities were concerned the largest
I
gains from last year were shown in Akron, Cleveland
and Pittsburgh.
In the various departments sales o f
house furnishings and apparel items continued to lead
the list. Dollar sales in the first five months of 1934
were up 30 per cent from the corresponding period of
1933.
Basement store sales showed a comparatively
greater increase from last year than did total store sales,
being up 31.8 per cent in May at 29 reporting units. Base
ment sales at these stores represented 19.7 per cent o f the
total store volume.
There was a slight increase in the ratio o f credit to
total sales in May, but the percentage, 57.9 per cent, was
only slightly higher than in May 1933. Installment sales,
as a per cent o f total sales, were down in May from April,
but represented 9.8 per cent o f the total store volume
in the month compared with 6.9 per cent a year ago.
In most recent years there was little change in the dol
lar value o f stocks at department stores between April
and May, but in the latest month a reduction o f 1.6 per
cent was reported; the adjusted index dropped to 61.5 per
cent o f the 1923-1925 monthly average. Compared with
a year ago dollar value o f stocks was up 22.4 per cent.
A further improvement in collections was reported in
May and 36.6 per cent o f the accounts receivable at the
beginning o f the month were collected during the period;
in May o f 1933 the collection percentage was 30.4 per cent.
Although a very slight increase in the percentage o f col
lections on installment accounts was reported in May
compared with last year, collections on regular accounts
were 43.4 per cent against 33.6 per cent in May 1933,
an improvement o f approximately 30 per cent.
Furniture store sales in May were 41.4 per cent larger
than in May o f 1933 and for the year to date were up
60 per cent. At furniture departments o f reporting de
partment stores, May sales showed an increase o f 12 per
cent from a year ago. W earing apparel stores reported a
gain o f 26.8 per cent in dollar sales in May and an in
crease of 28 per cent was shown in the first five months
from corresponding periods o f 1933.
Chain grocery
store sales, per individual unit operated, increased 8.9
per cent from April to May and were up 11.7 per cent from
a year ago. For the first five months these sales showed an
increase o f 16.7 per cent from the corresponding period
o f 1933. Chain drug sales increased 15.5 per cent in May
from the preceding year, but were off slightly from the
April level. For the year to date a gain of 19.8 per cent
was reported.
6
THE MONTHLY BUSINESS REVIEW
Wholesale
There was a considerably greater-thanseasonal increase in all reporting lines
o f wholesale trade from April to May
and the composite index of sales of 69 firms was 67 per
cent of the 1923-1925 monthly average, compared with 60
per cent in April and 55 per cent in May of 19 33. Gains
from a year ago were not so great as were reported in
earlier months, but hardware sales continued 38 per cent
above last year and drug sales were up 28 per cent. Dry
goods sales showed an increase o f 20 per cent and grocery
sales were up 15 per cent in May as compared with the
similar period o f 1933. Considerable improvement in col
lections also was indicated generally.
BUILDING
A contrary-to-seasonal failing-off in the construction
industry was apparent in this district in May, the value
of contracts awarded being only $7,771,000. This was
a decline o f 28 per cent from April, and compared with
$44,647,000, the eleven-year average value of contracts
awarded in May in this section. The April-May reduc
tion follow ed a March-to-April decline which also was in
contrast with the upward trend generally evident at this
season. W hile most o f the drop was due to a contraction
in public w orks’ and utility awards, there was a falling-off
in nonresidential building of other types. This April-toMay decline also was contrary to the trend shown in the
37 Eastern States where a gain o f two per cent was re
ported for the period by the F. W. Dodge Corporation.
Compared with a year ago, the dollar value of contracts
awarded in the fourth district in May was up 17.7 per cent,
whereas for the first five months a gain o f 190 per cent
was shown from the same period of 1933. Awards for
public w orks’ construction in May in this section were
down from April although they were about three times
as large as in May 193 3. For the year to date public
works’ construction was ten times as great as in the first
five months of 19 33. The value of other m ajor types
of building, except the construction of one- and two-fam ily
houses was greater in the first five months of this year
in the fourth district than in the same period of 1933,
but activity is still very limited compared with the av
erage o f past years.
There was a reduction in the value o f contemplated
construction reported in this section in May from April
and the total was only about 40 per cent as large as was
reported in May 1933. Building supply dealers reported a
falling-off in demand for materials in late May and early
June and the position of the entire industry was not so
favorable as a month ago.
Winter Wheat
Estimated
Production (thousands o f bushels)
June 1 condition
1934 forecast
Harvest
Average from June 1
Average
1934
1933 1922-31
condition
1933
1927-31
80
76
28,958
34,732
29,481
Ohio ......................62
Pennsylvania .... 71
85
83
14,654
15,678
18,080
Kentucky ..............69
80
79
3,324
3,240
2,969
West Virginia..... ...67
87
80
1,675
1,798
1,679
64.0
75.7
400,357
351,030
632,061
United States........55.3
W inter Wheat. The foregoing table shows the esti
mated June 1 condition o f winter wheat in the four states
included in the fourth district and also in the entire coun
try for 1934, last year and the ten-year average 1922-31,
and also estimated production figures for these same pe
riods. Although the June 1 condition in all important
wheat sections of the country was very much below the
average o f past years and also lower than in 1933, the
year’s production (based on the June 1 condition) esti
mated at 400,357,000 bushels for the entire country, was
up nearly 50,000,000 bushels from the unusually small
crop of 1933.
Despite the crop-reduction program of
the Agricultural Adjustment Administration, as a result
of which many farmers reduced their wheat acreages,
the total acreage remaining for harvest in the entire coun
try was 22.2 per cent above that harvested last year.
This increased acreage is entirely responsible for the esti
mated increase in the 1934 crop as compared with that
of the preceding year. The June 1 estimate which, in all
probability, was reduced further because o f unfavorable
conditions in the first half o f the month, was less than
two-thirds the average harvest of the five years 1927-1931.
Throughout the fourth district there was little variation
in the condition of the wheat crop although the June 1
estimate for Ohio was considerably lower, compared with
the ten-year average, than it was in other sections of this
district. The crop generally is reported to have ripened
about two weeks earlier than usual; the straw is short and
small heads have not filled properly because o f moisture
deficiency.
Oats. The June 1 condition of oats indicated a crop
of less than 700,000,000 bushels for the entire country,
compared with a ten-year average production of 1,229,000,000 bushels; 1933 also was a poor oat year, the
harvest for the entire country being only 722,485,000
bushels. Conditions are below average in all but a few
states and the lowest June 1 condition is reported in the
corn belt which includes part o f this district. Practically
all fields in this section show a very poor stand and plants
are heading on extremely short straw in many sections.
This, o f course, means that a large part o f the oat crop
will be cut as hay, it being too short to handle in the usual
way. The follow ing table shows the June 1 condition as
a per cent o f estimated normal for the states o f this dis
trict and the entire country for this year, 1933 and the
ten-year average 1920-1931.
AGRICULTURE
While the worst spring drought in history was ended
by scattered rains in the third week o f June in this dis
trict and somewhat earlier in other parts o f the country,
the moisture arrived too late to be of much benefit to the
hay and small grain crops. The condition o f pastures
has improved, however, and the corn crop was materially
benefited, although in many sections planting o f corn had
been delayed at least two weeks because of dry conditions.
Oats
(Per cent of estimated normal)
Condition June 1
Ohio
1934 .................................. 45
1933 .................................. 66
1922-31 Average ........... 79
Penna.
75
83
86
Kentucky
52
77
80
West
Virginia
59
82
83
United
States
47.2
78.7
82.1
Corn. No estimate on the acreage planted to corn or
the condition of the crop has yet been released by the De
partment of Agriculture, but both are thought to be under
THE MONTHLY BUSINESS REVIEW
the average of preceding years in this section as well as
in the entire country. Some fields which were planted
early grew quite well despite the dry conditions, growth
being stimulated by the unusually warm weather in May
which was particularly harmful to most other crops and
pastures. Later-planted fields germinated very poorly ?nd
in some cases planting was delayed until mid-June fol
lowing the rains.
Hay. An unusually small hay crop is indicated by the
June 1 condition which, for the entire country was only
51.9 per cent o f normal, compared with a ten-year average
June 1 condition of 81.7 per cent. In Ohio the June 1
condition was 48, Pennsylvania 69, and Kentucky and
West Virginia 54 per cent o f normal. These figures are
very much below the ten-year average condition o f ap
proximately 80 per cent. The June 1 condition of pas
tures was the lowest on record generally and in many
sections fields used for grazing were drier than in mid
summer and presented a very burned appearance.
Tobacco. Extremely dry weather delayed planting gen
erally throughout the burley tobacco belt and on June 1
it was estimated that only 35 to 40 per cent o f the crop
had been set. Following rains in early June many
fields which were planted earlier were reset and in
the middle of the month it was estimated that only about
25 per cent of the crop remained to be planted. It is gen
erally felt that about 65 per cent o f the acreage planted
with burley tobacco in 1933 will be devoted to this crop
for 1934. Plant shortage was reported in some sections,
but on the whole the supply probably will be adequate.
Fruits. Severe winter weather, late frosts and drought
conditions are responsible for the poor fruit prospects re
ported on June 1 in this district as well as in other north
ern states. In Ohio the peach crop is estimated to be only
about one sixth as large as the five-year harvest and in
the other states prospects were only slightly better. Apple
crop prospects also are poor. A heavy June drop is re
ported, follow ing only a light fruit setting. Cherry and
pear prospects are somewhat below 19 33, but the condi
tion changed only slightly in the latest month.
Fourth District Business Statistics
(000 omitted)
% change
Fourth District Unless
M ay,
from
Jan.-M ay,
Otherwise Specified
1934
1933
1934
$1,744,000
+ 3 1 .9
Bank debits— 24 cities.
8,026,000
Savings Deposits— end of month:
l
41 Banks, O. and Pa...........
646,553
+ 6.1
Life Insurance Sales:
Ohio and P en n a ...................
89,707
+ 2 0 .5
406,132
$
Retail Sales:
Dept. Stores— 49 firms. . . .
$
18,220
+ 2 6 .4
75,092
Wearing Apparel— 11 firms
+ 2 6 .8
825
3,637
$
Furniture— 42 firms.............
939
+ 4 1 .4
3,480
Wholesale Sales:
Drugs— 13 firms...................
1,303
+ 2 7 .5
7,040
$
Dry Goods— 10 firms..........
+ 2 0 .4
1,181
5,297
$
Groceries— 33 firms.............
3,806
+ 1 5 .5
18,012
$
+ 3 8 .1
Hardware— 14 firms............
1,427
5,651
$
+ 1 7 .7
Building Contracts— T o t a l..
7,771
73,944
$
”
^ ”
— R esidential..?
1,846
-1 8 .2
7,816
Commercial Failures— Liabilities.. $
3,534
— 46.6
12,049
3103
”
”
— N u m b e r ....
733
-4 9 .7
Production:
2,043 + 1 3 0 .3
Pig Iron, U. S..................... . .Tons
7,901
[-69.7
3,397
Steel Ingot, U. S.................
13,338
1,147,5673
[-48.2
Automobiles-Pass. Car, U. S. No. 273,7653
271,2753
-72.0
Autojnobiles-Trucks, U. S. .. .N o .
57,8763
[-22.0
Bituminous C oal............... . . Tons
11,805
63,114
[-50.0
Cement, O., W. Pa., W . Va. . .bbls.
963
2,299
Elec. Power, O., Pa., K y .. . k.w.h.
K37.5
4,699*
1,121*
Petroleum— O., Pa., K y ...
1,8603
f-10.4
7,260*
Shoes .................................... Pairs (8) (5)
1-22.9
(*) ( 5)
Tires, U. S........................... Casings
4,627* H[-52.7
17,661*
Bituminous Coal Shipments:
Lake Erie Ports.................
4,820
+ 5 4 .1
6,600
Iron Ore Receipts:
Lake Erie Ports...................
+ 2 2 7 .7
1,468
1,468
.....
+ 1 4 .2
.....
+ 2 9 .9
+ 2 7 .6
+ 6 0 .3
.....
.....
.....
.....
.....
1 not available.
3 actual number*
% change
from
1933
+ 2 0 .8
i
6
Jan.-April.
confidential.
+ 3 9 .8
+ 4 3 .0
+ 2 5 .7
+ 5 1 .3
+ 1 9 0 .6
+ 9 .2
— 6 0.4
— 67.0
+ 1 4 8 .9
+ 1 0 8 .7
+ 7 9 .9
+ 1 3 3 .3
+ 3 4 .9
+ 7 2 .5
+ 2 5 .5
+ 7.3
+ 7 .9
+ 8 6 .6
+ 4 5 .0
+ 2 2 1 .9
7
Wholesale and Retail Trade
(1934 compared with 1933)
D E P A R T M E N T STORES (49)
A kron...........................................................
C in cinnat...................................................
Cleveland.....................................................
Columbus....................................................
Pittsburgh...................................................
T oledo..........................................................
Wht eling......................................................
Other Cities................................................
District........................................................
W E A R IN G A P P A R E L (11)
Cincinnati....................................................
Other Cities................................................
D istrict........................................................
F U R N IT U R E (42)
Cincinnati...................................................
Cleveland.....................................................
Columbus....................................................
D ayton.........................................................
T oledo..........................................................
Other Cit es................................................
D istrict.........................................................
CHAIN STORES*
Drugs— District (4 ).................................
Groceries— District ( 5 ) ............................
W H OLESALE G R O C E R IE S (33)
A kron...........................................................
Cleveland.....................................................
Erie...............................................................
Pittsburgh...................................................
T oledo..........................................................
Other Cities................................................
District.........................................................
WHOLESALE D R Y GOODS ( 1 0 ) . ...
W HOLESALE DRUGS (1 3 ).................
W HOLESALE H A R D W A R E (1 4). . .
*per individual unit operated.
Percentage
Increase or Decrease
SALES
SALES
STOCKS
M ay
First
M ay
1934
5 months
1934
+ 5 3 .8
+ 1 3 .2
+ 3 1 .0
+ 1 9 .4
+ 2 4 .7
+ 1 6 .5
+ 2 2 .3
+ 4 2 .7
+ 2 6 .4
+ 7 2 .8
+ 1 6 .0
+ 3 6 .2
+ 2 5 .0
+ 2 3 .2
+ 2 7 .1
+ 3 2 .1
+ 4 1 .6
-t-29.9
+ 3 5 .9
+ 1 3 .9
+ 3 5 .2
+ 2 6 .7
+ 1 8 .5
+ 1 6 .5
+ 1 7 .2
+ 3 2 .1
+ 2 6 .8
+ 1 5 .4
+ 3 4 .6
+ 2 7 .6
+ 1 4 .8
+ 1 4 .2
+ 1 4 .4
+ 2 8 .5
+ 4 3 .7
+ 1 8 .9
+ 9 .9
+ 6 3 .3
+ 8 3 .7
+ 4 1 .4
+ 4 5 .1
72.6
31.6
19.7
+ 7 4 .0
+ 9 4 .0
-6 0 .3
+ 1 5 .5
+ 1 1 .7
+ 1 9 .8
+ 1 6 .7
+ 3 3 .9
— 0 .4
+ 2 7 .8
+ 4 1 .3
+ 2 8 .5
+ 1 6 .8
+ 2 3 .2
+ 2 2 .7
+ 1 5 .5
+ 2 0 .4
+ 2 7 .5
+ 3 8 .1
+ 2 2 .7
+ 2 4 .1
+ 2 5 .7
+ 4 3 .0
+ 3 9 .8
+ 5 1 .3
+10.1
+21.8
+ 1 7 .4
+ 2 2 .4
+21.8
+ 3 2 .3
Debits to Individual Accounts
(Thousands of Dollars)
4 weeks
ended
June 20,
1934
43,071
6,830
24,316
Cincinnati. . . .
234,119
.
384,829
107,601
37,971
17,046
2,440
Greensburg. . .
4,460
7,460
Hom estead.. . .
1,865
12,920
6,798
2,428
6,107
M id d letow n.. .
6,967
Oil C ity ..........
Pittsburgh. . . .
514,173
Springfield. . . .
10,687
Steubenville.. .
6,282
75,657
6,018
24,795
Youngstown. . .
33,700
5,185
T otal............ . . 1,583,725
Year to Date
%
change
Jan. 3, 1934
to
from
1933
June 20, 1934
-4 8.5
253,192
-2 4 .5
37,764
-4 4 .6
151,751
-1 2 .4
1,404,137
-3 3 .8
2,200,748
-3 4 .4
619,022
221,530
f- 7.2
[-24.7
101,411
14,446
{- 2.3
-3 4 .9
26,340
|-15. 7
43,372
9,820
1-17.7
108,219
HO. 3
42,981
|-44.9
13,875
f-31.5
— 2 .6
36,032
37,849
+ 3 7 .6
3,168,298
f- 1.6
66.829
+ 33.6
+ 5 5 .5
34,157
' + 2 5 .5
489,023
+ 2 8 .2
35,306
- 0 .7
161,437
+ 4 5 .5
181,828
+ 9 .2
31,454
+ 1 6 .8
9,490,821
Year to date
Jan. 4, 1933
to
June 21, 1933
175,567
32,017
93,816
1,236,646
1,869,457
486,393
206,981
85,611
11,856
21,765
35,139
8,717
85,339
31,699
12,237
30,608
32,408
2,763,262
53,814
23,382
369,293
24,522139,455
124,503
27,781
7,983,268
%
change
from
1933
+ 4 4 .2
+ 1 7 .9
+ 6 1 .8
+ 13.5
+ 1 7 .7
[-27.3
b 7.0
-18.5
[-21.8
-2 1 .0
H23.4
H 2 .7
-26.8
[-35.6
(-13.4
1-17.7
1-16.8
H 4 .7
1-24.2
[-46.1
(-32.4
(-44.0
H 5 .8
(-46.0
hi 3 .2
-1 8 .9
Fourth District Business Indexes
(1923-1925 = 100)
Bank Debits (24 cities).........................................
Commercial Failures (N u m ber)........................
”
”
(Liabilities).....................
Sales— Life Insurance (Ohio & P a .)..................
” — Department Stores (47 firm s)...............
” — Wholesale Drugs (12 firm s)...................
” —
”
Dry Goods (10 firm s).........
” —
”
Groceries (33 firm s)............
” —
”
Hardware (14 firm s)...........
” —
”
All (69 firm s).......................
” — Chain Drugs (4 firm s)**.........................
Building Contracts— (T o ta l)...............................
”
”
— (R esidential)....................
Production— Coal (O., W. Pa., E. K y .).............
— Cement (O., W. Pa., W. V a .). . . .
”
— Elec. Power (O., Pa., K y .) * ___
”
— Petroleum (O., Pa., K y .) * ...........
— Shoes*........................................ ..
♦April.
••Per individual unit operated.
1934
64
50
80
107
80
87
48
66
73
67
73
16
11
65
80
134
101
106
1933
49
99
150
89
63
68
40
57
53
55
63
14
13
54
53
97
91
87
1932
58
164
152
92
68
75
34
55
55
53
74
30
13
41
39
115
109
62
1931
91
131
135
125
89
90
55
72
70
71
88
76
44
65
107
130
104
74
1930
120
130
69
141
101
103
79
92
91
91
91
107
81
86
167
140
139
68
THE MONTHLY BUSINESS REVIEW
Summary of National Business Conditions
By the Federal Reserve Board
Industrial production increased slightly in May, while factory employ
ment and pay rolls showed little change. The general level of wholesale
prices, after remaining practically unchanged since the middle of Febru
ary, advanced sharply in the middle of June, reflecting chiefly increases in
the prices of livestock and livestock products.
Index number of industrial production adjusted
for seasonal variation (1923-1925 = 100). Latest
figure, May, preliminary 87.
Federal Reserve Board’s index of factory em
ployment adjusted for seasonal variation (19231925=100). Latest figure, May, 82.4.
V jfH O L E S A L E P R IC E ; s
Production and Employment
Industrial production, as measured by the Board's seasonally adjusted
index, advanced from 86 per cent of the 1923-1925 average in April to 87
per cent in May, as compared with a recent low level of 72 last November.
Activity at steel mills increased further from 54 per cent of capacity in
April to 58 per cent in May, while output o f automobiles showed a decline.
Lumber production continued at about one third the 1923-1925 level. In
the textile industries output declined somewhat, partly as a consequence of
seasonal developments.
At mines coal production showed little change
in volume, while output o f petroleum continued to increase.
In the first three weeks of June activity at steel mills continued at about
the May level, although a decline is usual at this season . Maintenance of
activity reflected in part, according to trade reports, considerable stock
ing of steel. Output of automobiles declined somewhat, as is usual at this
season.
Employment in factories, which usually declines slightly between the
middle of April and the middle of May, showed little change, while em
ployment on the railroads, in agriculture and in the construction industry
increased, as is usual at this season. Increased employment was shown at
manufacturing establishments producing durable goods, such as iron and
steel and nonferrous metals, while employment declined at establishments
producing nondurable manufactures, such as textiles and their products.
Value of construction contracts awarded, as reported by the P. W.
Dodge Corporation, has shown a decline in the spring months, reflecting
a reduction in the volume o f contracts for public projects. The volume
o f construction work actually under way has increased as work has prog
ressed on contracts previously awarded.
Department of Agriculture estimates based on June 1 conditions in
dicated unusually small crops of winter wheat and rye and exceptionally
poor conditions for spring wheat, oats, hay and pastures, largely as a con
sequence of a prolonged drought. The winter wheat crop was estimated
at 400,000,000 bushels as compared with a five-year average o f 630,000,000 bushels and an exceptionally small crop o f 350,000,000 bushels last
season. Rains in early June somewhat improved prospects for forage and
grain crops not already matured.
Distribution
Total freight traffic increased in May by more than the usual sea
sonal amount, reflecting in considerable part a larger volum e o f shipments
of miscellaneous products. At department stores the value of sales showed
an increase as is usual at this season.
Commodities
''
\
r'J.
'\
V-\>
>1r—
\ /* V ,
Farm F roducts
’\ s
1933
1929
1934-
-
Indexes of United States Bureau of Labor Statis
tics, by months, 1929-1931, fry weeks, 1932 to
date (1926=100).
Latest figures for week
ending June 16.
BILLIONS or DOLUSS
fellUOHS O f pgltAtg
MEIMBER BANK CRE;d it
r ~
U- 5. Govf Securities
c
—
^ — \
V ' All Other Loans
! ruin? nn
—
Other Securities
1932
19,33 -
193^
Wednesday figures for reporting member banks
in 91 leading cities. Latest figures are for
June 13.
Commodity Prices
During May and the first three weeks o f June wholesale prices o f in
dividual farm products fluctuated widely, while prices o f most other com
modities showed little change.
Wheat, after advancing rapidly during May, declined considerably in
the first three weeks of June. Cotton continued to advance in the early
part of June. In the middle of the month hog prices increased sharply
from recent low levels. Automobile prices were reduced in the early part
of June, and copper prices advanced.
Bank Credit
During May and the first half of June there was little change in the vol
ume of reserve bank credit outstanding. As a consequence of expenditure
by the Treasury o f cash and deposits with the Federal reserve banks and
a growth in the country’s monetary gold stock, member bank reserve bal
ances advanced further to a level $1,800,000,000 in excess o f legal require
ments. In the week ending June 20, however, excess reserves dropped to
$1,675,000,000 reflecting an increase in Treasury deposits at the reserve
banks in connection with June 15 tax receipts and sales o f Government
securities.
Total loans and investments of reporting member banks increased by
$80,000,000 between May 16 and June 13, reflecting a growth in holdings of
investments other than United States Government securities and in openmarket loans to brokers and dealers, while loans to customers declined. Net
demand deposits increased by about $400,000,000 during the period.
Money rates in the open market continued at low levels. The rate
on prime commercial paper declined to % — 1 per cent in June, the lowest
figure on record.
@FedFRASER