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Business Review The Monthly Covering financial, industrial and agricultural conditions in the Fourth Federal Reserve District VOL. 5 CLEVELAND, OHIO, MARCH 1, 1923 NO. 3 Member Bank Borrowings Show Little Change in Past Month Steel Production Compares W ith Record Years of W ar Period General Expansion of Business Continues in This District Total Crude Oil Stocks Now Stand Near 265,000,000 Barrels Tobacco Growers Benefited By Cooperative Association Coal Industry Reflects Optimism Following W age Agreement Revenue Freight Loadings O f Railroads Move Upward Clothing Prices Follow Advances In Raw Material Costs Crude Rubber Situation Attracts Attention O f Government Builders Active But Costs Are Being Watched Closely FEDERAL RESERVE BANK of CLEVELAND D. C. Wills, Chairman of the Board (COMPILED FEBRUARY 20, 1923) THE 2 MONTHLY BUSINESS E M B E R bank borrowings in the Fourth Federal Reserve District are continuing to drop. The apparent reason for this is that the resources of the banks are sufficient to take care of the com munity needs without calling on their Reserve bank for aid. In fact, reports from 18 representative banks in the district show a gain in deposits o f 9.5 per cent compared with a year ago. M Very heavy demands for steel continue, and many o f the large mills are sold up for several months. This demand is so heavy, in fact, that the producers are resorting to the tonnage allotment plan. in order to protect their trade. Practically all the reports received this month from the manufacturers reflect the eeneral expansion of business. In place o f the small-iot buying which was so much in evidence at this time a year ago, we find quantity buying, and deliveries being urged. In some instances mills are unable to meet the demands for goods, due to the lack o f raw materials and the labor shortage. For the first time in two and one-half years in the crude oil industry the consumption o f crude oil by re fineries in this country and that going to exports, ex ceeded domestic production and imported crude from Mexico. By stimulating production and by greater improved processes of refining, the oil industry ex pects to keep up with the growing demand. The annual statement o f the Burley Tobacco Grow REVIEW ers’ Cooperative Association reveals some interesting facts. It indicates that 120 million pounds of the tobacco crop passed through the association with average expense of 89.8 cents per hundred for physical handling. Another point which the presi dent of the association stresses is that before the ganization of the association the 1920 crop o f a p proximately 220 million pounds sold for an average of 12 cents per pound and brought the growers $ 2 6 400,000; whereas the 1921 crop of 180 million sold for an average of 21 cents a pound, bringing growers a total of $37,800,000. In other words, the 1921 crop was 40 million pounds less than 1920 crop, and not as good in quality, yet the return the growers was greater by $ 11 ,2 0 0 ,0 0 0 . 1921 an pounds or pouncfs the while the to dealers are In the textile industry both jobbers and showing a desire to get prompt deliveries of goods u n der order. Manufacturers are fairly well supplied w ith wool but at present, domestic stocks are low. textiles for overcoats and suits show advances o f 20 to 35 per cent, while worsted materials show vances of 10 to 20 per cent. Wool from ad rubber rubber few the Perhaps the greatest development in the industry is the increase in the price of crude which has more than doubled within the last months. This increase is due to heavier production and the levying of the British export tax. Since United States consumes from 70 to 75 per cent o f all the rubber grown in the world, we necessarily m ust pay most of this tax. Member Bank Borrowings Shou) Little Change Throughout the Past Month; Savings Deposits Gain The month ending January 20 was marked by a decided drop in member bank borrowings. At that time the total decrease amounted to. approxi mately $29,500,000. N o particular change has occurred during the month ending February 20. W hile there has been an almost continuous fluctuation, borrowings on February 20 remained near the same level at which they stood on the same date in January. The gen eral trend during the past few months has been downward. Reports from 18 representative banks in the Fourth District indicate a gain in savings deposits. Deposits of these banks for the month of January as compared with the same month for last year showed a gain o f 9.5 per cent. Last month the in crease amounted to 7.7 per cent. The gain f o r January over the previous month was .9 per c e n t December deposits showed a gain over the nrevi* ous month of 3.7 per cent. There has been a very perceptible im provem ent in the acceptance market. The demand for bills a s well as the shows a. a ucuiuea decided in increase crease rn, . ,offering ,----- & of bills oiujwa The outlook for a much brighter business business is v e r v good. Some of the demand is com ing from th ” country banks which have not been purchasing acceptances for many months. The noticeable £ * provement, however, does not mean that there an active market. There is much room for provement. The rates have remained practicallJ unchanged throughout this period. y the Steel Production Compares With Record Years of War Period; Railroad, Automot • i» e , Building, and Oil Industries Are Leading Buyers Developments in the steel situation during the past month have tended to emphasize the grow ing shortage of tonnage for all the requirements that are being brought forward. Numerous demands have continued to com e out heavily from all di rections and many o f the leading mills already sold up for several months ahead, and facing dif in further increasing production, find themficulties selves obliged to make new commitments w i n , great caution or to decline them entirely. V a rio i producers because o f the needs pressed upon t h £ S » lT J ?e,r retg “ ,ar customers are now resorting to th allotting o f tonnage through the second q u a rts ^ that their output may be equitably distribn* ^ among the consumers dependent upon them d The congestion in steel is now becoming m o r e THE MONTHLY BUSINESS marked. In fact, here and there undertakings now are being held off from closing for the time being because of prolonged and uncertain delivery. Some instances of this are to be noted in the purchase of additional equipment by western railroads w ho find builders’ shops so filled with w ork that de liveries are far deferred. Steel prices have reflected the excess of demand over supply and have m oved forward sharply. In addition to the lifting of the market uniform ly $3 to $5 a ton, premiums of several dollars extra are being paid for early or assured delivery of certain products. Eastern mills which have filled up more slowly than those at Pittsburgh and in the Central W est, have been taking business for delivery into western producing centers in cluding Chicago, at attractive prices. General ad vances which have taken place during the past month are $2 in steel b a rs; $4 in plates and shapes; $5 to $6 a ton in welded pipe; $2 to $4 a ton in wire products; $5 in strip steel and corresponding increases in other products. Sales have been made in increasing number from $3 to $5 a ton above the general higher level where early delivery has been supplied. Iron Trade Review/s composite o f 14 leading iron and steel products as o f February 14 was $42.24 representing nine consecutive weekly increases. The composite is now the highest since June 8 , 1921 barring the flurry in September, O ctober and early November, which was occasioned by the sharp advance in pig iron, grow ing out of the effects of the coal strike upon the coke market. All the m ajor sources of steel consumption have been piling up new demands. The automobile industry continues on a large scale o f production with consequent requirements for steel. A recent canvass of the situation shows that pleasure car production in the Detroit district at present is from 10,000 to 11,000 cars daily and some further in REVIEW 3 creases are planned if the steel can be obtained. During January the railroads placed orders for 13,390 additional cars and for 586 locom otives. Awards for motive power have been especially brisk and some large orders have been placed since the first of the present month. The building situation continues very active and to call for large ton nages of steel. Fabricating awards in January have continued to show an unusually large volum e for the season. The vigorous condition of the oil industry is bringing forth steadily large require ments in tanks, pipe lines and other facilities of extension. The pig iron market has not been as active or as buoyant as that o f steel. Consumers, however, due to recent buying are in a comfortable position on their first quarter requirements. At present, buying for second quarter delivery is being done on an increasing scale. Prices are showing a gradual upward tendency. Production of steel in January reached a sur prising level in view of the current obstacles to full tide operations. Steel ingot production in January was at an annual rate comparable with the high record output o f the war period of 1917 and 1918 and was at the annual rate of 42,800,000 tons compared with an annual rate of 39,500,000 tons in December. A t this annual rate, the indus try is now producing at 123 per cent greater than the production of all 1921 and but 1.9 per cent below the high record for the full year of 1917. The steel output in January was speeded up in a greater measure than in pig iron, although the latter also showed a fair increase. January pro duction of pig iron according to Iron Trade R e view was 3,226,065 tons compared with 3,083,520 tons in December and was the largest since October, 1920. Furnaces in blast on the last day of the month had increased to 261 compared with 253 on the cor responding date in December. General Expansion of Business Continues; Shortage of Raw Materials Delays Plant Operations; Passenger Car Production Gains Practically all the reports w e received this month reflect the general expansion of business. In place of the small-lot buying which was so much in evidence at this time a year ago, wre find quantity buying and deliveries being urged. In some in stances mills are unable to meet the demands for goods, due to lack of raw materials and labor shortage. Automobiles— The automobile trade continues ac tive and plans for production for the current year indicate a heavy output. M otor car builders, because of the reduction of prices on finished cars, are forced to buy their ma terials as cheaply as possible. On the other hand, prices of lumber, steel, aluminum, glass, and other raw materials which are used in the making o f cars, are advancing. Thus while there is a good volum e of orders in the auto body and various other auto parts trades, manufacturers report that they are finding it difficult to make a reasonable margin of profit between the costs of goods and the prices at which they can be marketed. There has been a disposition, however, on the part of some to make such adjustments as are believed necessary in order to put their business on a sound and profitable basis. Trucks— Conditions in the truck field are reported to be show ing improvement. A large truck manu facturer reports that deliveries in January, with one exception, were the best they had ever been in the history of the company. Orders were al most 100 per cent over those for January of last year. In addition to the main factory operations practically all of the branches throughout the coun 4 THE MONTHLY BUSINESS try reflected the general improved condition. H e believes the improvement of marketing organiza tions by the farmer will increase the demand for trucks and that the demand w ill be for heavy duty rather than for light service trucks. This is because the individual farmer is best served by the light truck, whereas the heavy duty models are of more use to the organizations, the available load for the organization being so much larger than for the individual farmer. Autom obile production increased in January to the highest point reached since last August, accord ing to reports received by the Department of Commerce through the Bureau o f the Census, in cooperation with the National Autom obile Chamber of Commerce. Output o f passenger cars increased from 206,372 cars in Decem ber to 221,697 in January, while output o f trucks declined from 20,035 cars in Decem ber to 19,206 in January. Pas senger car production was almost three times as large as in January, 1922, while truck production was more than double the January, 1922, output. T otal revised production for the year 1922 amounts to 2,334,790 passenger cars and 242,975 trucks. Th e follow ing table gives the total production for each o f the last seven months, with the cor responding figures for the same months of the previous year. W ith few exceptions, the reports each month are from identical firms and include approximately 90 passenger car and 80 truck manufacturers. Autom obile Production (N um ber of Machines) Passenger cars 1922 1921 J u l y .................... 224,770 165,574 August .............. 248,118 167,705 September ........ 187,637 144,669 October ............ 216,099 134,734 November ........ 215,297 106,042 December ........ 206,372 70,690 1923 1922 January ............ 221,697 81,693 Trucks 1922 1921 21,739 10,766 24,420 13,080 19,173 13,648 21,466 12,813 21,656 10,010 20,035 8,307 1923 1922 19,206 9,416 Elcctrical Goods— Business during the past month has been much the same as it was a month ago. Some difficulty is being experienced as a result of the general labor shortage. Small Tools— The volume o f sales has continued at a steady pace, near what may be called the normal rate. A slight tendency to increase has been shown. A moderate increase in the prices of some lines— inaugurated at the beginning of the year— is reported to have been of much ad vantage. Purchasing o f this product is usually more active in the spring than at other seasons. Hardivarc— Conditions in this line are much more satisfactory at present than they were a few months ago. There appears to be a more healthy demand for materials in all parts of the country. Shipments are heavier than in January. Orders REVIEW are com ing in freely from all directions and agricultural trade is doing much better than the past several months. Paint— Among the many optimistic reports w e have received this month, those from manufacturers stand out prominently. the for which paint Present business is exceptionally good for this time of the year and shows big gains over last year and the year before. Manufacturers generally are ordering in much heavier quantities than th ey did a year ago. Advances in prices as well as p r o s pective advances have, no doubt, served to stimulate buying to some extent. Increasing difficulty fh getting important raw materials at factory p o in ts to supply the strong demand, and to keep plan ts running at their present rate, is reported. Paint men believe the farmer will be an im p o r tant factor in buying this year. The A m erica n Farm Bureau Federation estimates that farm ers spent $^5,303,200 for paints and varnishes in 1922 The continued increase in the cost of virtually everything entering into the manufacture and p r o duction of paints, varnishes, and insecticides, has made it necessary for practically all im portant manufacturers to advance their prices. The trade however, seemed to be expecting it, as they are familiar with the price advances in the basic m a terials. Pottery^ There has been no particular change in this business since our last report. W hile th ere is no large accumulation of orders, m anufacturers have plenty of work to keep them busy. In th e W heeling district of W est Virginia, the industry is reported to be recovering nicely from the e ffe cts o f the long strike. Plants are operating at 1 0 0 per cent capacity and plenty of orders are on h an d to assure the continuation of that percentage f o r some time. Transportation conditions have n o t affected this industry to the same extent as it has many others. b G/aw February business is proceeding at about the same rate as January although the total volume will naturally be a little smaller due to the sh orter month. Labor is scarce in the Pittsburgh d istrict This is not much of a handicap to the glass industry K1 i S ’ however> *or manufacturers are n o w ab e to secure men who are ordinarily em ployed in outside work. O w ing to the openness of the w in ter is most sections, business has been maintained a very satisfactory basis and there is evidenof* o f an increasing demand with the o p e n in - o f spring. v t» ot An item of special interest in the plate g-la<i, ^tuation during the past month was the announc|! ment of plans for the erection of a new plate plant to meet the increasing consumption of th iproduct. An output of from 12 to 15 m ill; " square feet per year is planned. Another item of interest is the negotiation h „ two important automobile manufacturers for th e THE MONTHLY BUSINESS REVIEW purchase of plate glass plants to supply their cur rent and urgent requirements. of placing goods in stock to meet anticipated de mands. Pulp and Paper— The mills are reported to be running at almost maximum capacity. The past few weeks have brought a very considerable strengthening in the demand for the product of this industry accompanied by a firmer price situation. The effect of rising costs of production is that sell ing prices on fine papers are being advanced from 7 j^2 to 10 per cent. Orders for practically all grades of papers are being placed in heavy volume. Manufacturers report that orders are com ing in so rapidly as to more than offset the increased pro duction of most mills. There are some interesting facts in connection with the use of the combination coal and gas range in this part of the country to which w e referred last month. The popularity of the com bination coal and gas range is due largely to the uncertain gas supply, as we stated in the Febru ary issue of the Monthly Business Review. The shortage of natural gas, however, is not the only factor which enters here. Bags— Business is continuing very satisfactory. Values on all lines are firm with change, if any, in an upward direction. Collections are good. Cork— There special interest compared with slight increase. and the outlook have been no developments of since our last report. Business as the same month in 1922 shows a Orders are com ing in fairly well is encouraging. Stoves and Ranges— January as a rule is a very slow month in this industry, but business this year was better than usual. In com paring business for that month with January, 1922, one manufac turer reports sales 300 per cent greater. Customers seem to feel the necessity for anticipating their future needs, and manufacturers are advising the trade that this is a wise m ove to make at this time. Unfilled orders are heavy. It is difficult to determine whether this is due to the long-tim e deliveries of steel or to the general belief that 1923 will be a good year. M ore stock orders are being placed than heretofore which would indicate that the accumulation of high priced stoves and ranges carried over from the previous years has been dis posed of. For some time past most o f the orders received indicated that the dealer was ordering only for sales which had been made and not with a view The gas pressure seems to be better this winter than for some years past. Up to this time, with the exception of one cold spell, the weather has not been very severe, which naturally means a smaller demand. In addition to this, m ore plants are us ing oil fuel in their factory operations, partly be cause of the kind of work and partly because they are afraid that they might be short of fuel at a critical period. The rates charged must also be taken into consideration, but whether the increased pressure is due to fewer people using gas because of the high rates, or a better supply, is difficult to determine. Another reason for the popularity of the com bination range is the type of people who live here. The population of Cleveland, and also other large manufacturing cities in this section contains a large percentage of foreigners. T hey like this type of stove, for they can use different kinds of fu e l; they use it for heat and cook in g; and they use it to burn rubbish which collects about the house. There is also a third reason, of lesser importance, perhaps, but a factor nevertheless. Cleveland claims that she is the home of this type o f stove. A Cleveland firm is the originator. It is only na tural that stoves which have proven their worth should be popular in that part o f the country where they were first placed on the market. Total Crude Oil Stocks About 265,000,000 Barrels or 140 Days* Supply; National Petroleum News Says Gasoline Consumption This Year Will Exceed That of 1922 During December consumption of crude oil by refineries in this country and that going to exports, exceeded domestic production and imported crude from Mexico. This is the first time this condition has resulted in the past two years and a half, when stocks were added to consistently each month. Total crude stocks now stand at about 265,000,000 barrels. T w o years ago this surplus of crude above ground would have been considered suffici ent almost to swamp the oil producing business. Considered in the light of current daily consum p tion, however, they amount to only about 140 days’ supply, were other sources of supply to be shut off, and this reserve is not considered by the trade as being more than the industry should carry for its own protection. The large interests which are purchasers of crude oil for refinery needs evidently see the need for further stimulating production, particularly of the high gravity, high gasoline-content crude, if these above-ground reserves are not to be cut into this year below the point of safety to the busi ness. The price of Pennsylvania grade of crude has so far advanced to $4 and $4.25 a barrel, as compared with $3 up to D ecem ber 30, when the first of the series of recent advances took place. Mid Continent crude has advanced, from a price of $1.25 a barrel last fall for all gravities, to $2.60 for the lightest grades with the m ost gasoline con tent. The surplus production of crude in California, due to the opening in the past year of several fields of high flush production, is being drawn on by the Atlantic Coast refiners, who are bringing THE 6 MONTHLY BUSINESS this oil in tankers through the Panama Canal. This state alone is now producing around 550,000 barrels a day. Prices there have advanced only once in this recent general upward movement. A t lantic Coast refiners are using the surplus pro duction there, over and above what the California refiners use and what is carried to local storage, to take the place o f the M exican crude, supplies of which have been cut down due to the encroach ment of salt water in the principal fields there. This California crude can be looked upon only as a temporary expedient, and the large interests see the need for stimulating production in the do mestic fields nearer their own plants and east of the Rockies. National Petroleum News believes REVIEW that in view o f present automobile registrations, gasoline consumption this year will be in ex cess o f that in 1922. By keeping production of crude up and by using to a greater degree im proved refining processes for m anufacturing a greater proportion of gasoline from the crude oil, the oil industry anticipates keeping up with this automobile demand without excessive advances in gasoline prices. Price advances to the consumer through the tank wagon and service station markets have not been rapid in view of the extent of the ad vance in crude prices. N o territories have reported to National Petroleum News tank wagon advances of more than two cents a gallon to date. Annual Statement of Burley Tobacco Growers Cooperative Association; Crop and Livestock Summaries for States of Ohio and Pennsylvania Conditions in the Burley belt are m oving along in a very satisfactory manner. The Burley T obac co Growers’ Cooperative Association distributed the checks for the final payment for the 1921 crop of tobacco to its members early in February. This places several million dollars in the hands of the growers o f Burley tobacco w ho are members of the organization. A statement by President Stone of the Burley Association, was mailed to the growers with their checks. This statement in dicates that the Association received 120 million pounds of tobacco of the 1921 crop. T he state ment shows that the total expense o f the physical handling of the business averaged 89.8 cents per hundred pounds o f tobacco handled and that the insurance on tobacco and interest on borrowed money averaged 31.7 cents per hundred additional. The organization plan provides for the taking oyer of warehouses and paying for them over a period of years by deductions from returns o f tobacco sold, and the statement shows an average of 32.7 cents employed for the redemption o f the bonds and interest on the properties purchased, making a total deduction o f $1.54 per cwt. The statement also indicates that the salaries of all executive of ficers, directors and committees amounted to only 3.7 cents per one hundred pounds o f tobacco handled. The statement also shows the net grade price per hundred pounds for each of the 52 grades o f the Association. The statement also compares the return for the 1920 crop and that o f 1921. It is stated that the 1920 crop o f approximately 220 million pounds was sold for an average o f 12 cents per pound and brought $26,400,000. The 1921 crop of 180 million pounds sold for an average, both in and out of the A sso ciation, o f around 21 cents per pound and brought a total of $37,800,000. The statement also indicates that the 1922 crop is estimated to bring $75,000,- 000. A large proportion of the 1922 crop controlled by the Association has already been marketed. The independent sales on the loose leaf floors is Ken have continued and the average of these sales running ^ close to 30 cents. The Dark T o b a c c o Growers Cooperative Association in western tucky, which started operations with the handling of the 1922 crop, is making satisfactory prog ress and reports having sold a large quantity of co. These large cooperative marketing d e v e lo p ments among the tobacco growers of K entucky adjoining states are being watched with a deal of interest and their progress is stimulating- an interest in cooperative marketing among the p r o ducers of other products with the result that organizations for marketing purposes no doubt be formed. Such enterprises that are p rop erly planned and directed should be very helpful in placing the agricultural industry on a more and prosperous basis. tobac and great other will stable CROP AND LIVESTOCK SUMMARY FOR PENNSYLVANIA Horses and Mules— Reports received from 744 tow n ship correspondents indicate that the num ber o f horses on the farms of Pennsylvania has declin ed about two per cent during the past year. In connection it is well to note that there has a steady increase in the number of autom obiles motor trucks, and farm tractors, which in a lar£J measure, accounts for the decrease in the n u m ber of horses. The total number o f horses at the present t,m« ‘ ~ , farms is estimate<> at 475,625, com p ared ^ ^486,607 one year a g o ; and the total value $ 4 4 636,879.50, compared with $47,477,943.50 one y e a r ago. The average price of horses per head, in clu d ing Jlorses of a11 ages and classes is estimated at $93.85, compared with $97.50 one year ago. this been The number of mules is estimated at 54 510 anrl is approximately the same as one year a^o "Th#* average price per head is estimated at $106.35 cn m pared with $113.00 one year a g o; and the to ta l ° nA the. [ aT™ is approxim ately $5,796,445.00 compared with $6,180,855.00. y Dairy Cows and Other Cattle— There is no apparenf change in the number of dairy cows on the farm s ^ Pennsylvania, but it appears that the number o f THE MONTHLY BUSINESS other cattle has declined about one per cent. The whole number of cow s kept principally for milk is estimated at 862,467, compared with 862,868 one year a g o; and the total value of the cow s on the farms is estimated at $49,861,263.45, compared with $50,946,852.00 one year ago. The average price or value per head is placed at $57.80, compared with $59.00 one year ago. This estimate is based on the census showing 885,855 cows on the farms in January, 1920, two years old and over, and classed as dairy cows. The whole number of other cattle is estimated at 607,140 compared with 614,372 one year ago. The average price is estimated at $31.70 compared with $32.00 one year a g o ; and the total value is placed at $19,260,590.45, compared with $19,645,303.75 one year ago. Sheep— The number of sheep in Pennsylvania is es timated at 455,510 compared with 456,870 one year ago. Reports show that the price of sheep and w ool has materially improved during the past year and the industry has more of an optimistic outlook. The average price per head is estimated at $6.20 compared with $4.90 one year a g o ; and the total value is estimated at $2,825,930.10 compared with $2,239,209.75 one year ago. Hogs— The number o f hogs has apparently declined two per cent. H ogs on the farms o f Pennsylvania are estimated at 1,068,180, compared with 1,096,884 one year ago. The average price per head is placed at $13.75, compared with $12.80 one year a g o ; and the total value is estimated at $14,691,111.95, compared with $14,036,928.25 one year ago. Chickens— The livestock market in Pennsylvania during the past year has been inactive but was in better condition than during the year 1921. The poultry industry, however, has been more active. There has not been the deflation here that was experienced in other branches of farm activity. The whole number o f chickens on the farms of Pennsylvania is estimated at 15,310,082, compared with 14,854,575 one year ago. This shows an increase in number of four per cent. The average price per fow l is placed at $1.02, compared with $1.03 one year ago; and the total value of chickens is placed at $15,647,411.48 compared with $15,270,179.00 one year ago. Bees The whole number o f hives o f bees is ap proximately 113,276, compared with 115.259 one year ago. The average price per hive is estimated at $5.76, compared with $5.67 one year a g o ; and the total value of bees is placed at $652,380.45, com pared with $653,896.70 one year ago. Estimated Total Value o f Livestock— The total es timated value o f the horses, mules, cattle, sheep, hogs, and also chickens and bees, on the farms of Pennsylvania is estimated at $153,372,012.38 com pared with $156,451,167.95 one year ago. This is an approximate decrease in value of two per cent, com pared with sixteen per cent during the year of REVIEW 7 Corn— Reports indicate that the corn in the crib is in 100 per cent condition. It appears that about three per cent of the crop was standing in the field unhusked on January 1. The entire crop was estimated at 65,561,475 bushels, of which eighty-five per cent, or approximately 55,995,226 bushels, will be fed on the farms where produced. Winter Grain— Notwithstanding the drought that prevailed during the past fall, the condition of the wheat in the ground is estimated at 89 per cent of normal and rye 90 per cent. The condition of cach of these crops one year ago was 98 per cent. Automobiles— Reports received and carefully com piled show that approximately 65 per cent, or 132,693 farmers in Pennsylvania are using automo biles for business and pleasure. This is an in increase of five per cent during the past year and and corresponds exactly with the increase during the year 1921. M otor Trucks— Seven hundred and forty-four town ships report 9,761 m otor trucks in use on the farms of these townships. If the other townships have as many pro rata, and it is reasonable to assume that they have, then the whole number in use on the farms of Pennsylvania is approximately 21,791 compared with 17,047 one year ago. Farm Radios— Seven hundred and forty-four town ships report 1,056 radios. If the other townships have as many pro rata, then the whole number in use is approximately 2,225. Allegheny, W estm ore land and W ashington counties, in the order named, lead in the number of farm radios. CROP AND LIVESTOCK SUMMARY FOR OHIO The total value of livestock on Ohio farms is esti mated at $215,000,000. If the value of the livestock not on farms be added to this, the total will be be tween $225,000,000 and $250,000,000. The number of chickens on farms is variously estimated from 15,000,000 to 25,000,000 so that when the value of poultry is added to that of farm animals, the total is around a quarter of a billion. The greatest in crease in numbers is for hogs and sheep, and horses alone show a decrease. Horses are lower in price than a year ago and hogs and sheep are higher. The total number of hogs in the state is esti mated at 3,031,000, which is from 8 to 10 per cent above last year. The number of sheep in the state is 2,094,000, which is 7 per cent above the number a year ago. The number of milk cow s is placed at 1,059,000 as compared with 1,048,000 last year. The number of cattle other than milk cow s is estimated at 857,000, which is a 3 per cent in crease over last year. The number o f mules on farms is estimated at 32,000, an increase of 1,000 ^ast y ear* Horses are estimated at 771,000 in number, which is 2 per cent less than on January 1, 1922. The decrease in use of the horse has been much more rapid in the cities and towns than in rural areas, as shown by the fact that while the number of horses on farms decreased 7 per cent in the de cade ending with 1922, the number “ not on farm s" THE 8 MONTHLY BUSINESS decreased 46 per cent in the decade ending with 1920. This big fall-off in the number o f horses would probably have been even greater but for the fact that the people of the United States do not regard the horse as a food animal, and the present genera tion of horses is thus permitted to pass out of ex istence by the natural process rather than by slaughtering them for food as is often done in certain other countries. That the decrease in the number and value of horses is closely related to the increased use of the automobile in its various forms is evidenced by the fact that the number o f m otor vehicles registered in the United States has increased from 1,711,339 in 1914 to 12,281,245 in 1922. Taking prices of all products together, prices are somewhat above a year ago, though the in REVIEW crease is not great. Com, hogs, and sheep show the most marked changes. Hay is low er in price than a year ago and the prices o f feeds, which farmers of Ohio are compelled to buy, have advanced something like 15 per cent over last year. The price of milk has increased perhaps 15 per cent and the state average butter price is m ore than 25 per cent higher than a year ago. Eg-gs and poultry products on the other hand are slightJy lower, if anything. The state average price for com is 75 cents per bushel as compared with 68 cents last m on th and 45 cents a year ago. The oats price is na turally influenced by changes in the price o f corn and the state average is now 45 cents com pared with 34 cents a year ago. W heat is about 16 cen ts * Hay prices are running a ton below last year’s prices. The average potato price is about 60 per cent o f last year. Sim $1.UU hl^er. about state Coal Industry Reflects Optimism Following Wage Agreement• Anthracite Production Decreases Slightly The recent cold weather, the scope o f which is re ported to be nation-wide, is causing a noticeable in crease in the demand for coal for heating purposes. Some reserve supply, however, has been built up, and up to this time no particular difficulty in securing sufficient fuel has been reported. Since the signing o f the wage agreements which is to remain effective until April 1, 1924, thus remov ing the possibility o f strikes in the bituminous fields this spring, the industry in general seems to be show ing a gradual improvement. Traffic conditions with reference to coal shipments are reported to be showing improvement in many sec tions o f the country. This improvement, however, has been largely counteracted by increased transpor tation disability in the Pittsburgh and adjoining dis tricts. Unfavorable weather conditions have also caused coal shipments to be delayed. Preliminary estimates on the production o f soft coal by the Geological Survey for the week ending February 10, indicate that the total tonnage o f soft coal was 10,836,000 net tons, which is an increase o f 1 5 0 000 net tons over the revised estimates for the w eek ending February 3. Production of anthracite coal showed a small de crease in the week ending F ebruary 10. The total out Pl ' S , r ™ e? at 2.023,000 „ et tons as compared with 2,056,000 tons for the previous week. The total output for the month o f January is placed at 8,713 OCX) net tons. The output of beehive coke which has been increas mg steadily for many weeks showed further increase in the week ending February 10. The total outpuT is “ efore. ,a)° 348‘000 tons ^ ?,r0dr ti0n °* ky-product coke in January was practically the same as in December. Complete reaCti •C ? lants show a total ° utput o f ^,iuu,uuu net tons in January against 3,063,000 tons m ecember. The output in January represented per cent o f capacity as compared with 51.9 ner cent for the same month in 1922 Revenue Freight Loadings Move Upward; Weather Conditions Handicap Freight Movements When the railroads throughout the country did such an extraordinarily heavy business during the month of December, a part o f the improvement was attributed to better business conditions, and a part to the release o f goods which had been held up by the prolonged rail and coal strike. By this time it is fair to assume that the effect o f the latter is wearing off and that the former is the proximate cause. The difficulties surrounding the movement o f freight to and from New England which were preferred to in our last report, continue to be a serious handicap. This is felt particularly by those concerns which handle seasonal merchandise and who should be com pleting their spring stocks. Weather conditions have been particularly adverse east of Buffalo, though at present, freight is beginning to move somewhat m ore readily than a month ago. e *?*i ^ ^ere was a shortage o f approxi mately 83,000 cars By January 22 this number h i d been reduced to 72,754, but on January 31 the num ber had increased again to 73,269. A gradual de crease in the shortage of cars is, as a rule, to be e x pected at this season o f the year. The slight increase noted between January 22 and January 31 possibly indicates an unusually heavy m ovement for this season of the year. It is difficult to THE MONTHLY BUSINESS determine just what this might indicate with reference to the car shortage for a later period. On the other hand, it is quite possible that severe weather conditions in some parts of the country have so seriously retarded the freight movement as to account for the failure o f a continual reduction o f the shortage. During the week ending January 27, the railroads as a whole received 871,164 revenue loads. For the same week in 1922 they received 740,386 loads and in 1921, 701,605 loads. For 1923 this is an increase of 5,586 cars over the previous week; of 130,778 cars over the same week of 1922; and o f 169,559 cars over 1921. These figures as to revenue loads for January 27 also show an increase over the week o f December 23 and would tend to explain to some degree the sit uation in regard to car shortage. Figures have recently been given out showing that the Qass 1 roads of the United States during December were operating on a basis, which if it had been main tained throughout the year, would have yielded them REVIEW 9 five per cent on the value assigned to the carriers by the Interstate Commerce Commission. Preliminary figures for the year make it appear entirely probable that the net will exceed four per cent and may approxi mate four and one-half per cent. This figure is not as small as it first appears, for it is an aggregate earning of about 90 per cent o f the country’s roads and includes the operating results of carriers so situ ated as to earn nothing at all. The highest return on investment, shown by figures of the Interstate Com merce Commission since 1908, was 5.93 per cent for the calendar year 1916. In 1921 they earned an ag gregate of 2.95 per cent. Considering the question o f dividends, it should be mentioned that since 1908 the highest average payment of dividends from railroad stock was made in 1911 when 5.42 per cent was de clared. In 1921 the figure was 5.11 per cent. These figures again take into consideration all railroad stock, whether dividend paying or not. The average pay ments, excluding non-dividend paying stock in 1911 were 8.03 per cent and in 1921, 9.05 per cent. Clothing Prices Follow Advances in Raw Material Costs; Manufacturers Optimistic on Present Outlook In the textile field both jobbers and dealers are showing a desire to get prompt deliveries o f goods un der order. Manufacturers are fairly well supplied with wool but at present domestic stocks are low. Large stocks of foreign wool are reported, more than 55,000,000 pounds having arrived in Boston since the beginning of January. The Department of Commerce reports that stocks of wool in and afloat to the United States on January 1 totaled 515,543,585 pounds, grease equivalent, or a decrease o f 9,630,033 pounds since September, 1922. Stocks held by dealers decreased 17,923,523 pounds, but this was partly offset by an increase o f 8,293,490 pounds in the hands o f manufacturers. The newest development in the men’s ready-to-wear business is the opening up o f woolen lines for the fall season. W ool textiles for overcoats and suits show advances o f from 20 to 35 per cent. Worsted materials show advances o f from 10 to 20 per cent. While it is difficult to anticipate the buyers’ reac tion to advancing prices, manufacturers appreciate the importance o f keeping their prices down as low as possible in order to counteract the increase in the price of materials. Merchants recognize the rising market, particularly the small merchants who deal in piece goods, and there is not so much question about price as there has been for the past two years. The manufacturers o f women’s outer garments are practically unanimous in optimistic reports concerning the present outlook. The season has opened most fav orably in women’s apparel lines. There have been some sharp advances in the prices of raw materials and many o f the most popular fabrics are highly diffi cult to secure. Following losses in inventory which retail merchants took very largely in the deflation period o f 1920-1921, extra caution was manifested in buying. Many retailers adopted the policy of purchas ing from hand to mouth, but it was obvious that such a policy could not long continue for it would result in a loss o f business to the merchant, particularly in the garment line where all customers make purchases at about the same time. The increased business of the present season reflects the retailer’s confidence in the future and his willingness to carry a stock in anticipation o f demand. In the fancy knit goods business, prices of worsteds and cottons have advanced considerably during the last month and there appears to be an unusually good demand for both these lines. Deliveries are difficult to secure. The customary clearance sales, which were held shortly after the beginning o f the new year, left many stores with unbalanced stocks of various staple goods, thus necessitating the purchasing o f new ma terials. Advance in Crude Rubber Prices Causes Increased Production and Sales; Tax Problem Commands'Attention of Government The price of crude rubber has more than doubled within the past few months. This advance is b e lieved b y authorities to have resulted in an in creased production and sale for this time of the year, due to the fact that every rubber m anufac turer solicited business for immediate delivery on the spring dating basis, indicating to the trade that the marked advance in the price of crude rub ber as well as fabric w ould necessarily cause an advance in the price of finished goods. In some instances, also, retailers have sold tires to their customers— especially com m ercial accounts— in 10 THE MONTHLY BUSINESS anticipation o f the advance in prices, thus encour aging larger orders for spring delivery. On the other hand, the consumption o f tires dur ing the winter months was unusually heavy due to the increasing use of cars for winter travel; to the increased number of cars in use; to greater mileage per car, and to large automobile produc tion. All of these factors tend to uphold and bring in new orders. There appears to be a general belief that crude rubber inventories, and particularly those of the larger concerns, are heavy. Manufacturers began to cover their needs when the price began to advance and continued their buying on the rising mar ket. A ccordin g to authorities on the rubber situation, the British export tax is presenting a serious prob lem. It affects the manufacturer who has to buy the high priced raw material and the consumer who buys the finished goods. Since the United States consumes from 70 to 75 per cent of all rubber grown in the w orld we necessarily pay most of the tax. T w o things are needed and essential to solve the problem, according to the India Rubber R e view. They are: (1 ) Repeal or modification of the tax law, and (2) Am erica must grow her own rubber. The second suggestion is now under the con sideration o f the United States Department of Commerce. Rubber can be grown successfully in the Philip pines and also in the Am azon V alley o f South America. In addition to good rubber land there is plenty o f common labor. A t one time Brazil possessed a natural m onopoly of crude rubber and it was estimated that as late as 1910 she produced nine-tenths o f the world’s rubber output. A t present the output is estimated at one-fifteenth o f the w orld’s supply. In a leading article in the January India Rubber Review, a leading authority on the rubber situation says: “ The South American countries— Brazil, Ecua dor, Columbia and Venezuela— are the natural habitats o f rubber, and their geographic locations recommend them for future development, and this is an opportune time further to cement our close relations with the South American Republics.” REVIEW Some idea as to the importance o f the situation can be gained from the follow ing figures published by the National City Bank o f New Y ork: “ Our imports of crude rubber in the fiscal year 1914, all of which preceded the war, w ere 131.000.000 pounds and in the fiscal year 1922 568.000.000. Meantime world production a d vanced from 120,000 tons in 1914 to 344,000 in the high record year 1920, dropping to 2 0 9 000 in 1921, this reduction in out-turn being due to concerted action by the rubber g row ers of the world. * The total quantity of rubber imported in to the United States in the decade ending w ith 1922 was in round terms Sy2 billion p ou n d s against less than 1,000,000,000 in the d ecad e ending with^ 1912. That this enormous increase in importation meant a corresponding increase in actual use, is evidenced by the fact that tt^ 6 rubber manufactures produced in the United States was recorded by the censu s j at against $203,000,000 a decade earlier. Meantime the exportation rubber manufactures increased with equ al rapidity, the total value of rubber m anufac tures exported aggregating $85,000,000 in the calendar year 1920 against $10,000,000 in 1910 Autom obile tires are the largest single item and form about half of the grand total o f r u b ber manufactures exported and they go to all parts of the world having been sent in 1920 to 94 different countries and colonies.” The rubber industry is also confronted by another problem which could be easily overlooked when viewed from the angle of production. It is neceTSa2k •° . at ** squarely, however, to see the rubber situation as it is. It is the retail situation as regards tires which is not any too encouJSJfr* in spite of higher retail prices for 1923, put f n t l effect by the manufacturers on accouAt o f S S increased cost of rubber. the It is the belief o f the National Tire Dealers A « sociation that the dealers are at present c a r r y W large stocks, this condition being the result o f th f manufacturer influencing the dealer, through th i spring dating and payment plan and the assurance that prices would advance, to order beyond ordinary jequirements. Activity in Construction Work Continues; Material Costs Show Upward Tendency Construction work in the Fourth Federal Reserve District is going on rapidly. There is a good demand for building materials with prices showing an upward tendency. According to the report o f the F. W . Dodge Company, January construction activity was 31 per cent greater than last year and 1 per cent above the De cember figure. Contracts awarded in 36 states totaled $242,^55,000, and about three times as much contem plated work was reported. Residential construction comprised per cent o f the total, an unusually h °h figure for this season of the year. ^ 51 The following figures compiled by the F W T W Co show the volume o f building in this dYs^ £ states for the past year [Note— The Fourth District W « t V ir ^ ia !] Par* Pennsy>rania. Kentucky, and THE MONTHLY BUSINESS T O T A L C O N TR A C TS A W A R D E D Year 1922 No. Cost States Projects New Floor Space Ohio 11,960 48,061,000 Sq. Ft. $292,087,100 9,814 62,096,300 Sq. Ft. 361,257,900 Kentucky 1,930 8,884,600 Sq. Ft. 49,459,500 38,437,600 W. Virginia 1,173 5,853,300 Sq. Ft. There is a good volume of building in Cincinnati, Ohio. Construction costs are being watched closely. The building situation in Pittsburgh, Pennsylvania, is reported to be as active as ever. During the past few weeks sales o f vacant property have been heavy and many contracts for buildings costing from $10,000 to $20,000 have been let. Building materials and labor are expensive and we are reliably informed that build ers are being required to pay premiums for help. Contractors are estimating on quite a little building to be done in and near Braddock, Pennsylvania, pro vided the costs are not excessive. Pennsylvania Indications point to a busy year in the Columbus, Ohio, building industry. As is the case in practically all centers, the costs o f materials and labor are being REVIEW II taken into consideration. At present the attitude of certaifi o f the building craft has caused an interruption thus influencing a large company to postpone a million dollar building program. Building operations in Youngstown are believed to be showing a little improvement but they are still at low ebb. Several substantial building projects are now under contemplation in Toledo, Ohio. Residential construc tion also looks promising. There is a good deal of activity in public building operations in Dayton, Ohio. In Marion, Ohio, home builders have made arrange ments to start on about 135 houses just as soon as the weather is favorable. The building situation in Steubenville, Ohio, is very active and further developments in residence and com mercial work are expected. In Hillsboro, Ohio, several new buildings are in the course o f construction in the residence section. Contractors in Wheeling, West Virginia, report that they are now figuring on more estimates than at any time during the past six months. Wholesale Grocers Report Healthy Business; Sugar Prices Advance Rapidly A general brightening of business conditions in the wholesale grocery and food lines is reflected in re ports this month. The tendency on the part of buyers to act cautiously in the matter o f purchases has not entirely disappeared, however. The advance in sugar prices is attracting attention, but wholesale grocers believe there is a chance for this situation to ad just itself very shortly since there is no big demand at this season o f the year. Unsettled markets have given way to firm prices which show an inclination to move upward from day to day. Prices on practi cally all canned goods are holding up well and there have been some stiff advances since last fall, particu larly on tomatoes. The following report gives some interesting facts with reference to various departments in the wholesale grocery business: Sugar— Prices advancing tween-season slump. Demand poor due to be- Tobaccos— Normal consumption, with market gen erally firm, but occasionally unsteady. Cigars and Cigarettes— Sales very satisfactory. Mar kets steadier. Cereals— Prices firm. Pickles— Market firm. dull buying period. Little demand. Little consumption due to Fish— Good demand due to Lenten season. Coffee— Prices very firm and advancing. good. Spot stocks scarce. Tea Demand normal. Markets firm. Sales Olives— Splendid demand, with advancing market. Crushed Fruits and Syrups— Good future order sales. Cheese— Sales very good with markets firm. This item is also influenced by the Lenten season. Preserves— Show great improvement in sales. Prices firm. Condiments— Good seasonable demand. Candy— Sales show a big increase over those for last year. Sales appear to be quieter now, however, due to the after-holiday drop and to the fact that Easter business is not yet under way. Baker's Supplies— Business shows satisfactory in crease. All market prices are firm. Soap— Business very good with general market ad vances. Dried Fruits— Market, with the exception of prunes, is dull. Jiastem markets are somewhat unsteady on certain varieties o f raisins. Canned Milk— Sales are good. Macaroni Sundries— Good demand owing to Len ten season. The stocks o f canned goods at this time are less than a normal supply, with the possible exception of canned corn. Canned peas (although the pack of 1922 is reported to have been the largest in the his tory o f the industry) are largely sold out of canners hands and the jobbers’ stocks are not excessive. The pack o f tomatoes is reported to have been in the neighborhood o f 2,000,000 cases less than a tenyear average production, but canners’ stocks are prac tically all sold and the market is in a strong posi tion. THE 12 MONTHLY BUSINESS REVIEW Brick Plants Getting Under Way For New Season; Shipments Unusually Large For Winter Months Paving brick manufacturers are not suffering so much from a serious transportation and railroad equip ment shortage as they were a few months ago. But they are not entirely free from this handicap, and it is sufficiently troublesome to be constantly before them. servative program has been mapped out for the com ing season. At a recent convention of the National Paving Brick Manufacturers Association particular emphasis was ^placed on the need for constructive advertising policies. Labor shortage is also being felt to some extent in various parts o f the country. The feeling among the laborers seems to be less settled than it was some time ago, but as a general rule, men employed in this in dustry are quite constant and do not shift about as do those in many other lines. Production is reported to be heavy. Plants are enlarging their operations to meet the spring demand and some brick making establishments which have been closed down are again getting under way. Shipments have been larger during the winter months than they were a year ago, due largely to the fact that manufacturers were not able to meet the unusual demand last fall, and winter shipments were necessary in order to make up for this shortage. In the winter season when paving operations are not carried on, manufacturers build up their reserve stocks. Although they are doing this at present, the winter shipments are tending to keep stocks fairly low. Many cities whose paving programs were elimi nated during the war period are now back on the job. Consequently they are planning to repair many streets where needed repairs have been postponed, and also to build and extend new streets. What manufacturers believe to be a large but con Quite a number of the common brick plants closed down during the winter months. However, due large ly to the favorable building weather, the demand for building brick has continued active with the result that the manufacturers have not built up their usual reserve supply. A report o f the Common Brick Man ufacturers Association says that the industry is look ing forward hopefully; that this type of building ma terial is in good demand; and that the conservatism made necessary by high prices is working to the ad vantages for all permanent building materials. The advertising o f this Association, carried in pop ular and trade magazines, since January 1 has pro duced a large number o f inquiries from those inter ested in building homes either for themselves o r to sell, and the manufacturers feel that it is a very good barometer as to what the actual situation is. They have received 20,000 inquiries up to date since Janu ary 1 for books etc., issued by the Association, from those who say they are going to build, and these come from all over the United States and Canada. I n ad dition to these at least 30,000 have been received by an agency at Washington which distributes this liter ature. The Association has issued something like fifty or sixty thousand books to their members who are al so answering the inquiries coming to them. Farm Implement and Tractor Industry More Optimistic; Price Advance of Approximately 10 Per Cent Goes Into Effect Increased activity throughout the industry and an advance o f about ten per cent in prices have character ized the implement and tractor industry during the last thirty days. Orders received from dealers have exceeded earlier estimates to such an extent that the manufacturers are compelled to increase production schedules, and accordingly are in the market for bars and other equipm ent. Manufacturing costs are ad vancing steadily, due to the constantly increasing prices for raw materials and the shortage o f depend able labor. The coal situation is also affecting pro duction expenses. Because o f the increasing production costs which follow two years o f poor business, the manufacturers have adopted the only alternative o f business preserva tion and have put into effect an advance on most lines o f implement, which approximates ten per cent. This action was taken reluctantly, largely in the fear o f an adverse effect on the part o f the farmer. But the farmer has shown only moderate interest in this latest announcement. Dealers who have gotten under cover for their requirements for the first half o f 1923 have given assurance that the recent advances will not be reflected in retail prices until late in the summer months, and they believe that the price situation will stimulate rather than retard sales. It is a forectme conclusion that the farmer is greatly in need o f new machinery for starting his 1923 operations, and the recent report o f the Department of Agriculture clear ly reflects his improved position. This would seem to indicate that the farmer is now better able to fi nance his machinery requirements. The Chilton Tractor Journal savs the sp rin t selling season is opening with a feeling o f confidence founded largely upon the mental attitude o f the farmer and that while this may be due to the fact that the firm er has bewailed his lot until he is tired of gloom, as som e believe; more likely it is due to the fact that mar S t prices throughout the winter have been maintained at levels which have made the increase o f $2 000 000 000 in the 1922 crop valuation a reality instead of a nrorJh ecy. Dealers find farmers in a buying spirit and m an " ufacturers are viewing the situation with greater fidence and satisfaction than for two years or m During the last ten weeks most of the state and Im lt' state retail associations have held their annual m l ! ' mgs, which have been marked with renewed optimism THE MONTHLY BUSINESS Dealers have shown considerable interest in a pro posed plan for placing the implement business upon the basis of established resale prices with the dealer’s profit provided in a discount from the established list price. Under the present plan by which most imple ment lines other than tractors are sold, the manufac turers established only wholesale prices, f.o.b. factory of branch house. The dealer makes his own retail price. As the methods o f cost accounting and com puting overhead vary greatly among dealers in all sec tions, the result is a great diversity o f retail prices in the same products even within such narrow limits as counties. This often leads to one dealer demoraliz ing the trade in certain sections by pricing his goods out o f line with profits. Manufacturers have shown little interest on the surface, although it is reported that one company will REVIEW 13 give the plan a trial in 1924. But dealers, generally, consider it a measure for their own welfare and are pushing it. Twelve associations have indorsed the plan, while but two have opposed it, and one associa tion has gone so far as to appoint a committee to confer with manufacturers. An interesting angle o f the tractor situation for 1923 is the discontinuance on the part o f a number of the larger producers o f their smaller models, or those which have a capacity for handling a 2-bottom plow in plowing. The largest producer in the field concentrates on a tractor of this size priced low be cause of his large production, and the tendency o f the others, as shown by their lines for 1923, is toward a general withdrawal from this field to compete for more profitable business on the larger sizes. THE 14 MONTHLY BUSINESS REVIEW Debits to Individual Accounts Akron........................ Butler, P a ................. Canton...................... Cincinnati................. Cleveland.................. Columbus. Connellsvi'lle. . D ayton ............ Erie.................. Greensburg. . . Homestead. . . Lexington....... Lim a................ Lorain.............. M iddletow n.. . New Brighton. Oil City. Pittsburgh................ Springfield. T oled o......... Warren, O . . Wheeling. . . Youngstow n, Zanesville... T o ta l.................. Week End Week End ing Jan. ing Feb. 17, 1923 14, 1923 (327 Banks) (325 Banks) $16,420,000 $ 15,324,000 2.440.000 2,320,000 9.989.000 9,296,000 84.226.000 63,192,000 145.347.000 123,748,000 29.507.000 35.919.000 1.322.000 1.540.000 15.099.000 13.251.000 7.621.000 6.426.000 4.702.000 5.171.000 547,000 7.974.000 8.779.000 3.817.000 3.059.000 1.204.000 1.042.000 2.145.000 1.657.000 2.553.000 2.234.000 3.147.000 2.536.000 177,993,000 186.362.000 4.381.000 5,5 88,000 31.047.000 44.316.000 2.923.000 2.705.000 15.618.000 8.474.000 14.555.000 12.166.000 2.913.000 2.375.000 886,000 $529,179,000 $616,677,000 Increase or Decrease Amount Per Cent 1.096.000 120,000 693.000 21.034.000 21.599.000 6.412.000 218.000 1.848.000 1.195.000 469.000 339.000 805.000 758.000 162.000 488.000 319.000 611.000 8.369.000 1.207.000 13.269.000 218,000 7.144.000 2.389.000 538,000 — $87,498,000 7 .2 — 4 .9 — 6.9 — 25.0 — 14.9 — 17.9 — 14.2 — 12.2 — 15.7 — 9.1 — 38.3 10.1 — 19.9 — 13.5 — 22.8 — 12.5 — 19.4 — 4 .5 — 21.6 — 29.9 — 7.5 — 45.7 — 16.4 — 18.5 — 14.2 Week End ing Feb. 15, 1922 (331 Banks) $ 11,446,000 2.051.000 5.787.000 53.962.000 114.280.000 45.690.000 956.000 11.445.000 5.133.000 3.464.000 479.000 5.989.000 3.301.000 989.000 Increaseor Decrease Amount Per Cent $ 4,974,000 269.000 3.509.000 9.230.000 9.468.000 -1 6 ,1 8 3 ,0 0 0 — 366.000 1.806.000 1.293.000 1.238.000 43.5 13.1 60.6 17.1 8.3 35.4 38.3 15.8 25.2 35.7 68,000 14 2 2.790.000 4 6 .6 — 242,000— 7 3 53,000 5.4 2.001.000 118.335.000 3.285.000 29.933.000 2.664.000 5.959.000 8.892.000 2 010.000 649.000 535.000 59,658,000 1.096.000 1.114.000 41,000 2.515.000 3.274.000 365.000 4 0 .9 2 6 .7 5 0 .4 3 3 .4 3 .7 1.5 4 2 .2 3 6 .8 1 8. 2 $439,636,000 $87,886,000 2 0 .0 1,585,666 . Comparative Statement of Selected Member Banks in Fourth District Feb. 14, 1923 (84 Banks) *Loans and Discounts secured by U. S. Government obligations.......................... $ 31,807,000 *Loans and Discounts secured by other 369.598.000 stocks and bon ds...................................... 657.876.000 *Loans and Discounts, all oth er................... 48.128.000 U. S. pre-war B onds........................................ 121.163.000 U. S. Liberty B onds........................................ 9.279.000 U. S. Treasury B on ds...................................... 55.670.000 U. S. Victory Notes and Treasury N otes. .. 11.890.000 U. S. Certificates o f Indebtedness................ 290.407.000 Other Bonds, Stocks, and Securities............ 1.595.818.000 Total Loans, Discounts, and Investm ents.. 114.863.000 Reserve with Federal Reserve Bank............ 31.526.000 Cash in V au lt.................................................... 933.893.000 Net Demand Deposits..................................... 548.677.000 Time Deposits. . . ............................................ 5.893.000 Government D eposits..................................... 2.035.574.000 Total Resources at date o f this R ep ort. . . . * Includes rediscounts. Jan. 17, 1923 (84 Banks) $ 31,537,000 Inc. $ 367.791.000 648.112.000 47.486.000 120.778.000 9,494,000 56.481.000 16.019.000 295.055.000 1.592.753.000 114.376.000 31.629.000 931.804.000 543.483.000 15.046.000 2.054.737.000 D ec. 270,000 1.807.000 9.764.000 642.000 385.000 3.065.000 487,000 2,089,666 215.000 811.000 4.129.000 4.648.000 103,000 5.194.000 9.153.000 19.163.000 Wholesale Trade Percentage Increase (or Decrease) in Net Sales During January, 1923 as Compared with December, 1922, and January, 1922 Dry Goods Hardware Net Sales (selling price) during January, 1923, compared with December, 1922 . ............................................................................... Net Sales (selling price) during January, 1923, compared with Drugs Groceries 14.2 2 .4 16.6 — 6 .6 29.6 55.1 22.8 1 5 .7 THE MONTHLY BUSINESS REVIEW Department Store Sales Cin. Akron Canton Cleve. Pitts. Percentage of net sales (selling price) during January, 1923, over net sales (selling price) during same month last year. 22.0 Percentage o f stocks at close o f January, 1923, over stocks at close of same month last year 11.3 Percentage o f stocks at close o f January, 1923, over stocks at close of December, 1922........ — 13.4 Percentage o f average stocks at close o f each month this sea son (commencing with Jan uary 1, 1923) to average monthly net sales during the 322.1 Percentage of outstanding orders (cost) at close o f January, 1923, to total purchases (cost) during the calendar year 1922. 10.5 Col. 15 Dayton Toledo Youngs town Dist. 19.8 3.1 16.8 20.3 18.2 14.0 15.6 34.0 18.0 —0 .2 — 4 .6 14.1 2 .0 24.4 12.9 9 .4 10.6 5 .6 — 5.1 1.4 — 1.1 — 2 .7 — 1.9 — 4 .9 2 .0 — 10.2 — 5.5 336.7 462.8 342.9 682.9 290.5 472.0 406.6 235.6 356.5 11.5 12.9 8.7 9 .0 10.8 11.5 8.6 8.2 10.8 Building Operations for Month of January, 1923-1922 Valuation Permits Issued New Construction New Construction Alterations Alterations Increase or Decrease 1922 1923 1923 1922 Amount Per Cent 1923 1922 1923 1922 Akron.......... 28,260 $ 13,800 $ 621.4 110 234,234 33 22 $ 258,129 $ 9,435 $ 13 Canton........ 217,952 89,875 158.5 77 44 29,915 151,992 6,000 29 15 Cincinnati. . . 222 133 171 135 1,040,330 375,110 158.4 325,440 153,485 837,175 Cleveland*.. . 683 287 441 327 1,574,252 7,137,095 629,625 5,967,703 331.7 224,765 Columbus. .. . 279 160 904,055 54 61 628,005 241,745 468,400 69.1 49,395 Dayton........ , 153 1,006,282 546,624 66 45,218 85.5 484,551 50 37 20,325 Erie.............. 108,160 29 40 14 183,525 95,660 — 286,960 -- 5 8 .5 307,255 27 Lexington. . . . 243,445 58,885 11,790 188,568 282.9 34 20 22 7,782 13 Pittsburgh.. . 234 160 2,380,252 1,139,295 107.6 80,305 1,275,096 40 46,166 58 Springfield.. . 65,495 32,325 16,500 27 6 133.5 17 14 46,875 2,795 Toledo......... 205,788 117 968,105 221,720 69 933,607 364.4 82 67 50,430 Wheeling. . . . 94,515 315,809 28 28 17,320 5 29 1,550 — 205,524 -- 6 4 .8 Youngstown,.. 71,075 65 540,785 12,750 622.2 32 476,885 13 13 5,575 T o ta l... . 2,058 1,089 994 764 $14,964,600 $5,248,828 $1,741,788 $884,958 $10,572,602 * Includes figures for East Cleveland, Lakewood, Cleveland Heights, and Shaker Heights. 172.4 Movement of Livestock at Principal Centers in Fourth Federal Reserve District for Month of January, 1923-1922 Cincinnati. . . . Cleveland........ Columbus....... D ayton............ Fostoria.......... Marion............ Pittsburgh----Springfield. . . . T oledo............. Wheeling........ Cincinnati. . . . Cleveland........ Columbus. . . . Fostoria.......... Marion............ Pittsburgh. . . . Springfield___ Cattle 1923 1922 19,600 24,124 10,649 9,978 38 90 1,990 1,824 343 387 49 113 31,171 43,071 333 57 734 751 310 272 13,398 10,283 38 38 49 5,682 153 19,367 9,442 8 80 113 5,575 Sheep Hogs 1922 1923 1923 1922 3,480 108,408 130,957 8,838 86,280 63,658 23,617 30,831 4,004 6,252 309 50 12,972 11,568 228 203 8,334 1,007 8,025 1,256 4,916 6,359 646 705 66,196 304,442 270,813 106,636 3,852 4,316 770 56 11,776 1,225 6,985 2,028 16 3,199 2,584 209 Purchases for Local Slaughter 69,936 3,038 77,974 7,436 43,166 15,590 62,990 14,989 19 570 735 20 10 1,325 250 5 7 2,584 2,702 104 48,921 7,476 57,118 9,196 711 686 Calves Cars Unloaded 1922 1923 1923 1922 9,889 11,719 1,671 2,049 8,800 9,083 1,630 1,471 94 168 7 19 692 666 551 571 20 24 118 92 29,706 24,736 4,819 4,990 176 170 585 681 *i i8 147 715 584 36 44 4,601 8,507 56 25 110 7,110 32 7,113 8,848 64 40 35 6,254 33 THE 16 MONTHLY BUSINESS REVIEW Summary of Business and Credit Conditions in the United States By the Federal Reserve Board INGCX o r PfcOOUCTJON IN BASIC INDUSTRIE n * f c 'z r i X L 00vx«.X? ion I ! ! .... ! | f j !■ 1 ^ ------ 1 r ; 1 1 ! Mao PRICES ! i Further increase in the volume of production in basic industries to a levdl higher than in 1919 or 1920, a continued advance in the prices of many commodities, additional borrowing from banks for commercial purposes, and somewhat higher money rates are the principal recent developments in tbt business situation. PRODUCTION Production in basic industries, as measured by the Federal Rseerve Board1* index, was 6 per cent higher in January than in December, and reached a volume exceeded only once in the past, in May, 1917. Production o f steel ingots and of anthracite coal and mill consumption of cotton showed particularly large advances, and most other important industries increased their output Building operations have been maintained on a large scale. The expansion in production during January was accompanied by a substatial increase in freight shipments. Car loadings of forest products, reflect ing the continued building activity, reached the highest monthly total on record, and loadings of merchandise and miscellaneous commodities were tiiglur than in any January of the past four years. Industrial employment continued to increase during January, and short ages of both skilled and unskilled labor were reported by textile 8teej mills, and anthracite coal mines. More wage increases at industrial establish ments were announced than in December. There is still some unemployment in states west of the Mississippi. In industrial and commercial centers there has recently been a larger demand for office workers, although throughout the country there is much unemployment in this group. W H O LE SA LE PRICES BANK CREDIT The index number of the bureau of labor statistics, computed from the wholesale prices of about 400 commodities, including finished and semi-finished products as well as raw materials, showed the same average level of prices in January as in November and December. Between December and Januarv ihd prices of clothing, fuel, metals, building materials, chemicals, and honae furnishings advanced, but these advances were accompanied by declines in farm products and food, so that the combined index remained unchanged Durinff recent weeks the prices of a number of basic commodities advanced ranidW and in many cases reached the highest points since 1920 or the earlv of 1921. Among commodities reaching new high levels for the current m ^ Ur^ ment were corn, beef, cotton, wool, silk, hides, lumber, rubber linseed l a copper, lead, and pig iron. TR A D E An active distribution of goods for this season of the year is i n d i c t by reports to the Reserve banks, both of wholesale and retail dealers for 2 5 month of January. Sales of department stores in over 100 cities w w . per cent larger than in January, 1922. Inventories for January show that has been no large increase m stocks of goods held by department stores, and rate of turnover continued rapid. In wholesale lines there were particularly sales during January of dry goods, drugs, hardware, and farm implements. BANK CREDIT The larger volume of commercial borrowing at member banks in recent weeks has been contrary to the usual trend of the season. Commercial S of reporting member banks on February 14 were $243,000 000 or 3 larger than at the end of December and 7 per cent above the level a t ^ end of July, when the general demand for credit first showed an mSJSS turn. upwarn This increased demand for credit at the member banks has r e s u l t recently m an increased volume of borrowing by the member banks ^ the reserve banks, chiefly Boston, New York, and Philadelphia On FrKir. 21, the loans to member banks were $628,000,000 or $248 000 000 hieher in mid-summer. During the same period the volume of e o v e m m o n v 1" * and bankers’ acceptances held by all Federal Reserve Banks declined $160 0 0 0 S S resulting therefore m a net increase of $87,000,000 in the loan* anH holdings of the Reserve banks. The volume of Federal Reserve note*®Cun*y» culation which showed the usual post-holiday decline in J a n u a r v c.ir' crease on January 31, a week earlier than last year. ° m* Money rates also showed a tendency to become firmer especially in weeks. The open market rate for commercial paper, which was 4 noTcccnt last summer, rose during February from a range of AVa to 4 i/ cent of 43A to 5 per cent. /4 W */a to a r*nge On February, 23, the discount rate on all classes of paper at the Rn, f „ New York Reserve Banks was advanced from 4 to 4y3 per cent. ost°n and
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