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The Monthly Business Review Covering financial, industrial, and agricultural conditions in the Fourth Federal Reserve District VOL. * CLEVELAND, O H IO , M A RC H 1, 1924 “ A G RIC U LT U RE IN THE FO U RT H FED ERAL RESERVE D IS T R IC T , C O N T R A RY TO A SOM EW HAT U N IVERSA L O P IN IO N THAT INTERESTS ARE CENTERED O N L Y IN M A N U FA CT U RIN G , M IN IN G , T RANSPORT AT ION, AND A LLIED LIN ES, IS ONE OF THE OUT STANDING A C T IV IT IES .” —E D IT O R IA L FEDERAL RESERVE BANK of CLEVELAND D. C. W ills, C h a irm an of th e Board (COMPILED FEBRUARY 22, 1924) NO. 3 THE 2 MONTHLY BUSINESS REVIEW 9 An Editorial GRICULTU RE in the Fourth Federal Reserve District, con trary to a somewhat universal opinion that interests are centered only in manufacturing, mining, transportation, and allied lines, is one of the outstanding activities. A That the farmer’s right-of-way is receiving particular attention at this time was clearly demonstrated at Columbus a few weeks ago when a “farmer’s congress” held at Ohio State University attracted the largest attendance in its history. Intelligent production, teamwork in marketing, and improveme nt of life on the farm were the themes which ran through a program of more than three hundred lectures, conferences, and demonstrations. The speakers were men and women who were chosen because of their knowledge of some particular phase of farming or of activities directly connected with it. There was no question as to the interest shown; a large percentage of the farmers came early and stayed for the entire program. Meetings for the purpose of discussing farming problems and formulating remedies for agricultural ills are not unusual. Our reason for mentioning this one, however, is because the conference was sponsored by an educational institution which has done so much in the interest of the agriculturalist, because of the diversified and vital nature of the program, and because of the large attendance. It was strictly a constructive meeting from first to last. Businesslike methods ruled. There was no room for the pessimist. There were few gloomy speeches and scarcely any criticism. Not a single com plaint relative to banking accommodations was made. Better still there was a growing belief that if the door to better things on the farm is to be opened the farmer himself is the logical man to do it. The Business Review endorses the action of those men and women who are determined to bring about a higher standard of farming. It believes that the work of Farmers’ Week did not end with the close of the program; that its results will continue; that such endeavors not only make for a spirit of harmony and understanding among the farmers themselves but also between the farmers and their neighbors the merchants, the bankers, and the manufacturers. THE MONTHLY BUSI NESS REVI EW 3 Banking Situation Shows No Particular Change; Savings Deposits Continue Gain Accommodations extended to city banks (luring the past month (ending February 21) have shown a slight upward trend. On January 21 they stood at $15,751,000 as compared with $20,366,000 on February 21, an increase for the month of $4,615,- . 000 Total loans to country banks on January 21 were $15,686,000, while on February 21 they were $14,263.000, or a decrease during this period of $1,423.000. On January 21 the reserve ratio of this bank was 81.5 per cent while on February 21 it had in creased to 83 per cent. The reserve ratio of the System on January 21 was 80.8 per cent as against 81.3 per cent on February 21. The combined reports of eighteen representative banks in the Fourth D istrict on savings deposits for the month of January show an increase of 11.5 per cent over the same month a year ago. As compared with the previous month a gain of 1.3 per cent is shown. According to statistics compiled by R . G. D un & Company commercial failures in this District during the month of January totaled 175. In De cember, 1923, 155 failures occurred. Liabilities for January totaled $6,160,933 as compared w ith $3,006,938 for the previous month. Iron and Steel Business Continues Gain; Railroad Buying at High Rate; No Particular Change in Prices Iron and steel business has continued to gain during the past month. In the face of expanding production which now has reached the highest point since last fall, unfilled orders on the books of makers have been accumulating. Producers are in a very comfortable position for the next several months and in some cases up to midyear. Initiation of new requirements is keeping steadily active and the market is characterized by the number of individual propositions appearing from week to week calling for tonnages of major size. Since business placed up to this time has been closely confined to actual requirements or needs definitely in prospect, the present outlook is promising and more and more the industry is coming to the expectation of a maintenance of active business for the first six months at least. Because of the filling up condition of the mills and furnaces, buyers are finding themselves unable to count on the exceedingly prompt deliveries they have been obtaining in the recent past. In some steel lines, promises of shipments now vary from four to eight weeks. As a result of this situation, consumers are showing more interest in covering for their future requirements and considerable material is now being purchased for the second quarter. Increased confi dence in the general business situation on the part of the individual buyer is also undoubtedly playing a part in this. Ordering of new equipment by the railroads has been keeping up at the highest rate since last March. Cars ordered from the builders in January totaled approximately 10,000 and during the first two-thirds of February at least 20,000 more were added to this total. At least 30,000 other cars are in an active stage of negotiation including large lots for such leading systems as the New York Central, Pennsylvania, Southern, Louisville & Nashville, etc. Locomotive business has been coming out more freely with several good sized orders placed during the past month and with inquiries for at least 200 being figured at present. It is estimated that at the present time the railroads of the country are absorbing from 30 to 32 per cent of the total output of steel. This is near a maximum rate. Construction work has remained one of the most important sources of steel demand. Structural steel awards are running at the rate of over 2,000,000 tons annually or on a high record scale. Bookings in Janu ary are estimated at 187,200 tons, representing 72 per cent of total shop capacity. Floating of the Japanese reconstruction loan is ex pected to result in heavy orders for structural steel material to American mills. In some steel quarters it is estimated that fully 1,000,000 tons will be involved in this program which will be spread over a consider able period of time. Those manufacturing activities in which steel is largely consumed, in general are operating on a higher plane than in many months and show promise of con tinued improvement. The measure of the recent improvement in iron and steel is given by recent production statistics. In Janu ary steel ingot production showed a gain of 17.3 per cent over December and was at the annual rate of 41,460,000 tons. The latter represents 88.4 per cent of the high record rate of all times which was attained last April. Pig iron output in January also increased, but less than steel. The total for January, as com piled by Iron Trade Review, was 3,017,444 tons and the daily average 97,337 tons, compared with 2,912,519 and 93,952 tons in December respectively, or an in crease of 3.6 per cent. Many idle furnaces resumed in January and during February to date this number has been augmented on an even larger scale. On the last day of January 248 furnaces were in blast, a gain of 17 over the corre sponding date in December. The latest reports on the steel industry as a whole show it to be operating on an average of 86 per cent of steel ingot capacity. The Steel Corporation has THE 4 MONTHLY pushed its production above 94 per cent of capacity which represent the highest point reached in many months. Steel prices have remained substantially on a level, barring occasional concessions that are being made by some producers on attractive business. The general tendency is toward firmness. In some lines present prices are being reaffirmed to apply to second quarter business. The pig iron market, under liberal buying that has been keeping up from week to week due to the BUSINESS REVIEW expanding operations of the steelworks and foundries, has been rising, though in a moderate way. The ad vance of the past month amounts to about 50 cents per ton. The price situation in all iron and steel is reflected by the steady condition of Iron Trade Review com posite of fourteen leading products. On February 20 the index stood at $43.53. O n the corresponding1 date in January it was $43.35. In February one year afro the composite registered $42.61. * Sales of Gasoline and Motor Oil Reduced by Severe Weather; Favorable Indications However, Predominate; Advancing Prices Stimulate Production in Some Sections The past month has been rather dull from the oil marketing standpoint. Severe weather in recent weeks and the snow that has covered a large part of the coun try have discouraged motoring and consequently have held down retail sales of gasoline and motor oil. Rather heavy buying early in January and the subsequent les sening of the consumer's demand carried jobbers into February with generally well-filled storage tanks and resulted in their temporary withdrawal from the market. During the month, however, favorable indications have more than counterbalanced those of a less promising nature. The trend of posted prices offered for crude oil by the large purchasing companies has been steadily upward as the oppressive stocks of crude in storage have been reduced and as the big flush pools have fallen off in production. Active competition for assured crude supplies indi cates firm prices. So keen is this competition that most of the independent refiners, especially the smaller ones, find themselves unable to make contracts for supplies except at a premium over the posted price of the larger companies. The premiums being offered range from 15 to 50 cents a barrel, according to the quality of the oil and the particular conditions of competition prevailing in the section where it is bought. The fact that the major marketing companies all over the country have been increasing the retail price of gasoline in the face of a seasonal drop in con sumption is looked upon by the industry as an indica tion of the improved tone of the entire situation, and it is now believed that conditions are gradually working toward a firmer operating basis. Improvements in the refining industry are constantly making it possible to get a larger percentage of gaso line from the crude, and automobile designers and manufacturers are exerting efforts to get greater motor efficiency on less gasoline, but at the same time tar sales are steadily increasing the vast numbers now on the road or being held in storage until the weather smiles again. Encouraged by the competition for their product which a few months ago they could not sell even at the low prices then prevailing, the producers are in creasing their operations in sections where the weath permits, and m other fields they are laying plans for extensive field operations with the opening of so ‘ Surveys o f the situation by National Petrol^ News staff men at various strategic points in th * *1 fields and marketing centers, show that the industr °* in good shape and ready to handle record businessy 1S In line with the competition for crude oil supnli^ * new factor has appeared in the crude market T h is the joint association of smaller refiners wlio pooling their purchasing power, putting up their ^ storage, and in some cases laying their own nine i; " to get their requirements of oil. One such assodat"eS composed of several independent refiners has h !° n formed in Kansas within the past few weeks a n n " similar organization has been instituted amone- TV * refiners. 5 exas No important new fields or pools have been covered within the past thirty days. In the Ea t ~ duction has been on a descending scale and th;= Pr°* true of the old Pacific coast pools. However in mid-western and southern fields where the weather k been generally favorable to drilling operations the n ?,? put has been greatly stimulated by the rising prices Volume of Railroad Traffic Grows; Car Shortage Negligible On account of several periods of severe weather during the past month railroad freight service was somewhat hampered, but for the most part deliveries were good. Railroads generally continue to be in a strong position. The latest car loading figures reflect a continuance of active business conditions and show that the volume of traffic is gaining momentum as the year goes on. During the week ending February 2 there were 929 cars of revenue freight loaded, an increase of 3861 ft cars over the preceding week, 64,522 cars over’ th* corresponding week of 1923, and 182,041 cars ove the same week of 1922. This was the largest weelr‘1 loading on record during the months of January FpK ruary, and March, with the exception of that ending March 31, 1923, when 938,725 cars were loaded g THE MONTHLY BUSINESS This high figure brings the total revenue freight load ings for the first five weeks of this year to 4,292,072 cars, as compared with 4,239,379 cars for the corre sponding period in 1923, or an increase of 52,693 cars. On January 31, 1924, there was a surplus of 169,036 available freight cars while the concurrent car short ages was negligible. A year ago there was a surplus of approximately 26,500 cars and a shortage of over 72,000 cars. The figures on car loadings show that the total volume of traffic was about the same in both periods. These improved car conditions are due to a net increase in the number of cars owned, to a de crease in the number laid up for repair which on January 15 of this year amounted to about 7 per cent, and also to increased efficiency in handling. 5 REVIEW Domestic shipments of locomotives during January totaled 147 as compared with 305 for the previous month and 217 for January, 1923. Unfilled orders at the end of the month were 344 as against 365 at the end of December and 1,699 at the end of January, 1923. According to the Bureau of Railway Economics, new rail construction in 1923 totaled only 427 miles, the smallest number reported built in any year except 1922 and 1920. In addition 684 miles of line were double-tracked compared with 196 miles in 1922 and 143 miles in 1921. Abandoned and actually torn up lines totaled 129 miles, while 384 miles were aban doned but not taken up. Automobile Production Moves Upward; Truck Business Improves; Results of Auto Shows Considered Quite Satisfactory Production of automobiles is again moving upward. Since the first of the year demand has improved, with closed models continuing to attract particular attention. Factories are busy and are making reasonably prompt deliveries. Recently a few price advances on new models have been announced. Truck business is also picking up and manufacturers report that prospects for immediate future business are very encouraging. The results of the various auto shows were consid ered to be quite satisfactory. According to the Bankers Economic Service, new models displayed at the New York show indicated clearly the trend in design. Fortyfour standard models were equipped with four-wheel brakes for the first time, and 37 models permitted the optional installation of this innovation. Fourteen cars had the new balloon tires for the first time and 46 models permitted optional selection of these tires, which are of such importance to the tire industry on account of the larger amount of rubber used in their construction. Approximately half of the models shown were equipped with disc wheels, as contrasted with about one-fifth of the models last year. One hundred and seventy-seven closed models were displayed as against 89 touring cars, and the trend toward the closed car is plainly evident. Production of closed models in 1923 represented about 35 per cent of the total output. Automobile Production The Department of Commerce announces January production of automobiles, based on figures received from 186 manufacturers, 96 making passenger cars and 119 making trucks (29 making both passenger cars and trucks). Data for earlier months include 12 N U M BER O F 1922 81.696 109,171 152,962 197,224 232,462 263,053 225,086 249,492 187,694 217,566 215,352 208,010 Total . . . . ♦Revised. additional manufacturers now out of business. Figures on truck production also include fire apparatus and street sweepers. Total revised output of passenger cars for 1923 is given as 3.636,767 cars, as against 2,339,768 in 1922, while revised truck output totaled 376,106 in 1923, as against 246,281 in 1922. M A C H IN E S Passenger Cars 1923 1924 223.819 287,296 254,773 319,770 344,639 350,410 337,362 297,330 314,373 298,911 335,023 *284,923 *275,434 3.636,767 1922 9,576 13,350 20,022 22.640 24,097 26,298 22,046 24,692 19,462 21,795 21.949 20,354 246,281 Trucks 1923 19,720 22,161 35,260 38,056 43,678 41,145 30.663 30,829 28.638 30,166 *28.070 *27,720 376,106 1924 28,797 THE M O N T H L Y 6 BUSINESS R E VIE W Tire Dealers Buying Conservatively; Manufacturers Report Growing Demand for Balloon Tires The present status of the rubber industry indicates that conditions are on a more even keel than in 1923. Last year was a very difficult one, particularly in the tire business, largely due to the over-production which occurred during the first half of the year. Then, too, in the winter months dealers were heavy buyers on spring dating terms, only to meet heavy losses when the summer months arrived, owing to price cutting. Dealers this year are profiting by their past experi ences and are making purchases on a more conservative basis, acquiring only limited stocks on dating terms to meet the current demand. Stocks of automobile tires on hand in factories, warehouses, and branches of all members of the Rub ber Association of America, are now less than four and one-half million. year ago. This is lower than they were a The year has started out very well in the mechanical goods business and present indications are for a con tinuation of the present activity. An important development which has taken place in the tire industry within the past few weeks is the advvent of the balloon tire. Most of the manufacturers in their advertising and through their selling organizations are laying great stress upon its advantages. \ -Y number of automobile manufacturers have adopted the balloon tire as standard equipment and others are offering their cars with this type of tire as optional equipment Tire manufacturers report a rapidly growing demand* Textile Industry Shows No Particular Trend; Hesitancy of Buyers Outstanding Feature; Advance Sales of Knit Underwear Slow In the opinion of textile manufacturers of this District their industry has not yet fully indicated the course which it will follow during the current year. Two important factors are very evident, however; one is the marked hesitancy among the buyers, the other is the tendency to resist price advances. The first named factor is probably the most notable single feature in the women’s ready-towear division at the present time and does not appear to be due to any unexpected or startling style developments, but rather to a prevailing spirit of conservatism. This is particularly noticeable in the large city stores where commitments are slower than usual, although a part of the hesitancy may be attributed to the comparatively late Easter. A t present the brightest spot in the women’s wear goods line is in the “hair line stripes” and many thousands of tailor-made suits of this ma terial are being prepared for the Easter season. The late developments in the knit underwear industry apply particularly to advance sales for the fall of 1924. Lines for next fall were opened generally early in December at advances rang ing from 5 to 20 per cent. Early sales showed a substantial increase over the advance sale f last fall, then came an interlude in the buv' ° f during holiday time, and from about December120 until January 10 no buyers were in the market When buying was resumed a perceptible chaW e J.1--- --------------------------------------------------- --------1 * in the buyers’ attitude appeared and conservatism rather than generous buying ruled. Purchases ranged from about 50 to 75 per cent of those year ago. Two factors were responsible for thi<T First, the cotton market which was very strong in early December showed some softness in T uary and this worked against purchasing at advances. Second, the late buyers were arm H with inventory figures, and in' most cases th figures as of December 31 showed a larger car over than they had counted on because of the ^ usually mild weather which had a retarding effUn" on sales of heavy underwear. ect As a result of the generous early buying anf? conservative late buying the total advance salf>' for next fall will average just about the samP ^ those for the fall of 1923. Winter Stimulates Demand for Shoes; Sales of Rubber Footwear Not Up to Expectations; Fourth District Production Continues to Gain The final arrival of winter, late in most sec tions, has stimulated the demand for seasonable shoes, although the weather, with a few excep tions, has not been sufficiently sever to bring the anticipated demand for rubber footwear. Men’s oxfords, women’s sandals and pumps, and children’s sandals and oxfords are showing a fair demand for spring delivery. Women’s foot wear continues to show a multiplicity of styles and judging by spring orders the situation p ro m U « little change. es Final figures received by the United State* Bureau of the census on boot and shoe productin in the Fourth District for the month of Decern1 her show that the output of 55 factories was 7 per cent more than that of the preceding m onth Production of 1,256 factories in the United Stat was 22,676,436 pairs for December as against 26 THE MONTHLY BUSINESS 946,169 pairs for November, or a decrease for the month of 15.8 per cent. According to data compiled by the Department of Commerce, based upon reports received from 4699 manufacturers and dealers the total number of cattle hides held in stock on December 31, 1923, by packers and butchers, tanners, dealers, and im porters (or in transit to them) amounted to 5,086,286, as compared with 5,228,246 on November 30, 1923, and with 6,345,676 on December 31, 1922. The stocks of calf and kip skins amounted to 2,935,094 on December 31, 1923, as compared with 3,143,081 on November 30, 1923, and 4,461,946 on December 31 of last vear. Cioat and kid skins num bered 9,926,128 on December 31, 1923 ; 9,921,371 REVIEW 7 on November 30, 1923; and 8,730,219 on December 31, 1922. The stocks of sheep and lamb skins on December 31, 1923, amounted to 7,400,296; on November 30, 1923, to 7,836,386, and on Decem ber 31 of last year, to 9,151,484. The total stocks of sole leather (cattle) reported by tanners, dealers, and manufacturers using the leather as a material amounted to 10,048,085 backs, bends, and sides on December 31, 1923, the corresponding figures for November 30, 1923, being 10,046,142 and for December 31, 1922, 9,763,765. The production of sole leather during December, 1923, amounted to 1,295,907 pieces (backs, bends, and sides), and the stocks in process at the end of the month to 5.483,673 pieces. Paper Mills Fairly Active; Definite Improvement in Demand for Fine Papers Reports received from paper manufacturers this month indicate that there have been no partic ular changes in this industry since our last report. M ills are fairly active, consumption continues to move at good speed and orders are quite gen erally satisfactory. There is, however, no great amount of pressure in most of the plants and prices show no immediate tendency to stiffen. Some raw material prices have strengthened a little, while others remain practically the same as they were last month. The American Paper and Pulp association re ports a definite improvement in the demand for fine papers; also indications of similar improve ments in other directions. Book papers, which have been one of the most difficult fields dur ing the last six months, are more active. Box board business is reported to be more satisfactory. ^ Pulp m ills continue to occupy a difficult posi tion largely as a result of heavy importations of foreign goods. Quite a number of the Canadian m ills are operating under receiverships. Increased Manufacturing Features Farm Implement Business; Steel Requirements Heavier; Tractor Makers Increase Output Increased manufacturing- activity has featured the farm implement industry during the last thirty days. Manufacturers have been in the market for steel requirements on a vscale not equaled in many months. This increased production activity is in response to a heavier demand for implements to be used in spring farming than was evident during the early winter months at which time such orders are usually placed. W hile dealers are showing a stronger buying tendency it is still evident that they are buying only on actual pros pects. Spring trade is opening more favorably than that of the past two years. The South has been buying even heavier than was generally expected, while agricultural states farther north are also coming into the market. Some of the western wheat states are showing a tendency toward greater crop diversification and this is resulting in or ders for tillage and corn tools. Although the past three years have seriously reduced the capital of dealers, there have been some compensating features which have left the rank and file of the implement men in better fi nancial positions than m ight ordinarily be suspect ed, The pressure of poor business has resulted in more vigorous collections and greater caution in granting credit, all of which is placing the retail trade in a position to benefit materially from im proving conditions. According to the Chilton Tractor and Imple ment Journal the price situation remains practi cally unchanged, the prices quoted last fall for spring delivery still continuing and no further advances having been announced. W hile present levels are above the point which manufacturers and dealers believe is conducive to the best in terests of the business as a whole, the industry is becoming reconciled to the fact that little change is to be expected for some time. The manufac turers are directing a publicity campaign justifying present prices, which is reaching the farmer and which has already been effective in reducing sales opposition. There are some signs of a revival in the tractor business, although no more than a healthy and natural increase is expected. The leading man ufacturer of tractors last year produced slightly in excess of 100,000, while the second quantity producer manufactured approximately 15,000. Both of these companies are enlarging their sched ules for 1924, the former from 50 to 100 per cent. Smaller producers are also planning material in creases. Evidence of the increasing improvement in the farm implement field is seen in the recently pub lished financial statement of the second largest company in the implement field, which in the fis cal year ended October 31 showed a net income of $1,789,209 as compared w ith a deficit the previous THE 8 MONTHLY BUSINESS fiscal year of approximately $2,500,000. Business was 40 per cent in excess of that of the previous twelve-month period, but was only about 60 per cent of normal volume. Net income, however, was REVIEW $600,000 less than the amount required to meet dividend requirements on the 7 per cent cuim, cumulative preferred stock. Stocks of Canned Goods Low; Futures in Good Demand; Coffee and Tea Imports Show Increase in 1923 Prospects in the canning industry are reported to be very bright. That stocks of the 1923 pack are well depleted is shown by the present heavy volume of future purchases. Salesmen who are now out on the road calling up the retail trade are finding that futures in considerable quanti ties are in good demand. Future sales on canned peas are showing the most activity while the two other main commodities, corn and tomatoes, are likewise in a strong position. The domestic de mand for practically all grades of high class canned goods continues to be much in evidence. In 1923 the outstanding feature of the coffee and tea trade in the United States was the marked increase in the imports of both these commodities, according to the Department of Commerce. As compared with 1922 imports of coffee into the United States last year increased 161,795,299 pounds and were higher than any other year of the past decade. The total amount of coffee im ported in 1923 was 1,407,855,966 pounds, the value of which was $189,993,330. Exports of domestic coffee grown in Hawaii and Porto Rico, decreased from 25,493,085 pounds in 1922 to * 24,714 418 pounds in 1923. The imports of tea into the United States in 1923 totaled 107,148,344 pounds and were v al ued at $29,928,722. I n 1922 they were 97,097,242 pounds and their valuation was placed at $23 82d,086. * Deliveries of 1923 Burley Tobacco Crop Continue; Business Stimulated Somewhat by Sales; 334,126,306 Pounds in Manufacturers' and Dealers*Hands on January 1 On January 12 the Burley Tobacco Growers’ Co operative Association announced a sale which involved about 60,000,000 pounds of its tobacco, but since that date, up to the middle of February, no additional large sales have been announced. Sales on In dependent floors are reported to be fairly active. Busi ness has been stimulated somewhat by the money which has been brought in, although the amount of tobacco sold so far has not been sufficient to enable the farmers to pay off a very large part of their obligations. De livery of the 1923 crop is progressing steadily. The report of the Commissioner of Agriculture of Kentucky covering the sales of independent warehouses shows that about 30,000,000 pounds of Burley tobacco were sold at an average of $22.65 per hundred pounds during the month of January, The Growers" Marketing Association announced on February 13 that nearly $ 12,000,000 had been ad vanced by it on 1923 tobacco delivered by its mem bers. Since the Association started operations with the handling of the 1921 crop it has paid its mem- bers approximately $70,000,000. Not all of the 1922 crop has been sold so the members still have a Da ment coming from that crop in addition to the L v ' nients they will receive for the tobacco produced last year. The Association now has over 100,000 nam«J on its membership roll. ^ In 1923, according to estimates of the United S ta t^ Department of Agriculture, 326,116,000 pounds Burley tobacco were grown on 369,300 acres The tot l burley crop for 1922 is estimated at 275,601,000 pounHc while the acreage is placed at 321,100. ^ According to the quarterly report of the R ,, ^ of the Census, 334,126,306 pounds of burley in the hands of manufacturers and dealers on Tan. 1, 1924, as compared with 282,731,014 p o u n d s o n ^ same date last year, an increase of 51,395 292 non for the year. ’ The prices being paid for the 1923 crop aPDP„ to be somewhat lower than those paid for the to h a ^ grown the previous year. It is believed this is l a r t ^ attributable to the high quality of the 1922 croD anH f i y Building in Fourth District Fails to Keep Pace with other Sections; Cleveland Suburbs Show Marked Drop in Home Building Building operations in the Fourth Federal Reserve District, while still quite active considering the season of the year, have fallen off considerably in the past thirty days. This decline seems to apply particularly to cities of the middle west for the record of construction work in the country at large shows a substantial in crease for January this year as compared with the same month in 1923. O f thirteen cities in this District n n r+ tn rr T ___ _ t porting for the month /-ofif January, eleven show a ^ crease in the valuation of permits issued while but den gain. from record a ~ uul tw o With reterence to Cleveland proper the different • the figures is not very marked, the valuation of n e rm '^ for January this year being only about $250 000 1 THE MONTHLY BUSINESS than that for t h e corresponding month last yean The returns for the suburban communities, however, show a drop of approximately one-half, a fact which must be attributable to the decline in the volume of home construction. This decline is, of course, due to the severity of the weather, three periods in January registering tempera ture around zero which is unusual even for this part of the country. Contractors, architects, and dealers do not regard the record of the first month of this year as an indication of slackening building operations but rather are looking forward to the resumption of ac- REVIEW tivities with the advent of more favorable weather con ditions. Returns to Bradstreet’s from 158 cities for January showing the volume of midwinter construction provided for or undertaken, total $218,776,249 as against $245,699,361 at the identical cities in December, and $199,206,480 for the same cities in January a year ago. There is here shown a decrease of only 10.9 per cent from December, 1923, while a gain of 9.7 per cent is recorded over the peak aggregate for the first month of the year 1923. Lumber Dealers Less Anxious to Buy; Prices Somewhat Weaker; Shipments Exceed Both Orders and Production At present there are just about enough orders going to the sawmills to keep up with production, and with shipments exceeding both orders and production, order books that were fat thirty days ago are now thinning out somewhat. This condition is reflected by a decline here and there in prices and some of the smaller mills which specialize in dimension lumber are willing to accept substantial reductions in order to keep their stocks moving. In some sections the big mills are willing to accept cuts on surplus items only. The recent cold weather has caused the retail lum ber dealers to go more slowly in their purchases and the wholesale trade expects this condition to continue until the weather moderates and spring building opera tions begin. The advance in prices which took place near the first of the year has also been responsible for this spirit of caution. A recent report prepared by the National Lumber Manufacturers Association shows that in the week ending February 2, 381 mills cut 228,609,195 feet and that shipments and orders for the same week totaled 252,674,995 feet and 242,622,675 feet respec tively. A table showing the lumber movement for four weeks ending February 2 follows: Week No. Mills Ending Reporting Cut Jan. 12 405 205,284,622 Fan. 19 379 226,974,006 Jan. 26 401 236,328,420 Feb. 2 381 228,609,195 Total 897,196,243 Shipments 221,380,434 236,413,239 276,571,118 252,674,995 Orders 270,330,065 299,163,285 281,886,091 242,622,675 987,039,7861,094,002,116 Rapid Pick-up Evident in Paint Business; Present Buying, However, Probably Less Than Last Year The first month of the year was comparatively quiet in the paint business but February is showing to better advantage. Manufacturers in this District report that present indications point toward excellent spring busi ness and that they are looking forward to a very substantial volume of sales. While the industrial trade continues to place requirements conservatively, there has been a considerable increase in orders, and in quiries are also more numerous. It is doubtful, however, if present buying matches that of a year ago when purchases were accelerated by anticipation of price advances. At that time increases were imminent and dealers placed their stock orders earlier than usual in order to be protected. Conse quently when comparison is made with last year, manu facturers find themselves confronted by sales figures which are difficult to beat or even equal. In certain sections of the northwest where farming conditions are unsettled the paint business naturally is not up to standard but this seems to be offset by generally satisfactory conditions in other localities, the south Atlantic states reporting particularly good busi ness. The activity in winter building is helping the in dustry to a marked degree as is also present railroad equipment construction. Collections are reported good. Linseed oil, lead, and other main ingredients of paint are reported to be firm. Paving Brick Manufacturers Prepare for Next Road Building Season; Face Brick and Common Brick Associations Report Heavy Winter Production Production of No. 1 vitrified paving brick in January was less active than in the preceding month, as shown by the latest report of the National Paving Brick Manufacturers' Association. In December the output of 26 reporting plants representing 67 per cent of the normal tonnage capacity of the industry, was 23,592,000 brick as compared with 19,664,000 brick by identi- cal plants in January, or a decrease for the month of 3,928,000 brick. Unfilled orders on the last day of January were 51,- 10 THE MONTHLY BUSINESS 419,000 and a month previous they were 60,624,000. Stocks on hand exceeded the total of unfilled orders and showed a considerable increase over those held at the end of December, being 91,737,000 on January 31 and 86,930,000 on December 31. It is interesting to note that contractors and engi neers are assisting in relieving the seasonal aspect of the paving brick industry by asking for winter de liveries, shipments for January amounting to 9,491,000. The following figures showing production, stocks, un filled orders, and shipments of face brick for 32 identical plants during January, 1924, as against the previous month and January, 1923, have been compiled by the American Face Brick Association. The figures do not include commons or culls. Jan. Dec. Jan. 1924 1923 1923 (000 Omitted) 20,939 20,149 Production ...................... 17,366 Stocks ............................. 61,575 56,436 64,877 REVIEW Unfilled O rd e rs ............... 33,592 Shipments ............. ........... 11,231 25,641 12,650 41 087 19,’087 According to a recent report of the Common Brick Manufacturers' Association, the common brick indus try is showing unusual activity for this season of the year. Remarkably few plants are closed down and many of the manufacturers are running on full pro duction schedules. Stocks are comparatively low The tabulated report as of January 1, 1924, and December 1, 1923, is as follows: Ji*924 qV No. of Firms Reporting . . . 120 Plants Closed Down ......... 39 Burned Brick on H a n d ___ 313,696.000 Unbumed Brick on Hand .. 55,646,000 Brick Moved From Yard During Month ............... 66.199,000 Orders on B o o k s ...............266,914,000 Dec- 19 1 23 19 ^ 334,381 OOO 8o V*u 7yv \ ’ 132 5^8 non 276,124,000 THE MONTHLY BUSINESS 11 REVIEW STATEMENT OF CONDITION FEDERAL RESERVE BANK OF CLEVELAND Feb. 20, 1924 Feb. 21, 1923 RESOURCES Gold with Federal Reserve Agent........................................................... Gold redemption fund with U. S. Treasury........................................... Gold held exclusively against F. R . Notes..................................... Gold settlement fund with K. R . Board................................................. Gold and gold certificates held by bank................................................. $203,015,000 2,522,000 205,537,000 81,648,000 12,711,000 $205,973,000 4,167,000 210,140,000 78,960,000 14,008,000 Total gold reserves.................................................................... Reserves other than gold......................................................................... 299,896,000 11,450,000 303,108,000 11,132,000 TOTAL R E S E R V E S ................................................ 311,346,000 314,240,000 Non-reserve cash...................................................................................... 3,249,000 3,895,000 Bills discounted: Secured by U. S. Government obligations...................................... Other bills discounted...................................................................... Total bills discounted............................................................... Bills bought in open market................................................................... 23,150,000 13,398,000 36,548,000 34,769,000 22,899,000 11,437,000 34,336,000 30,506,000 U. S. Government securities: Bonds and Treasury Notes.............................................................. Certificates of indebtedness............................................................. Total U. S. Government securities.......................................... 14,183,000 3,821,000 18,004,000 12,338,000 25,214,000 37,552,000 TOTAL E A R N IN G ASSETS................................. 89,321,000 102,394,000 Uncollected items.................................................................................... Bank premises......................................................................................... All other resources................................................................................... 67,373,000 9,109,000 333,000 62,889,000 7,635,000 991,000 TOTAL RESO U RCES............................. 480,731,000 492,044,000 BQ3BBBSSSSSS! LIABILITIES F. R . notes in actual circulation............................................................. 221,661,000 237,050,000 Deposits: Member Banks-Reserve account..................................................... Government...................................................................................... Other deposits.................................................................................. 158,338,000 4,646,000 1,208,000 157,631,000 2,330,000 1,274,000 TOTAL D EPO SIT S................................................. 164,192,000 161,235,000 Deferred availability items..................................................................... Capital paid in ........................ Surplus..................................................................................................... All other liabilities................................................................................... 57,679,000 12,473,000 23,691,000 1,035,000 57,454,000 11,950,000 23,495,000 860,000 TOTAL L IA B IL IT IE S ............................. <480.731,000 $492,044,000 Ratio of total reserves to deposit and P. R. note liabilities combined *80.7% on February 20, 1924, as compared with 78.9% on February 21, 1923. THE 12 MONTHLY BUSINESS REVIEW Debits to Individual A c c o u n ts Akron................. Butler, Pa. Canton... Cincinnati. Cleveland........... Columbus........... Connells ville....... Dayton............... Erie.................... Greensburg......... Homestead......... Lexington, K y . .. Lim a................... Lorain................. Middletown........ New Brighton. . . Oil City.............. Pittsburgh.......... Springfield.......... Steubenville*. Toledo........... Warren, O. . . Wheeling....... Youngstown.. Zanesville. . . . Week Ending Feb. 13,1924 (325 Banks) $ 13,627,000 2.124.000 8.692.000 61,745,000 119,039,000 26,364,000 1.132.000 13,194,000 6.266.000 4.848.000 738,000 6.859.000 3.556.000 1.082.000 1.670.000 2.290.000 2.621.000 171,943,000 3,781,000 2.179.000 36.384.000 3.954.000 9.722.000 12.763.000 2.611.000 Week Ending Increase or Decrease Week Ending Jan 16, 1924 Amount Per Cent Feb. 14, 1923 (324 Banks) (327 Banks) $ 17,270,000 $— 3.643.000 — 21.1 $ 16,420,000 2.588.000 — 464.000 — 17.9 2.320.000 11.644.000 — 2.952.000 — 25.4 9.296.000 81.507.000 — 19.762.000 — 24.2 63.192.000 148.424.000 — 29.385.000 — 19.8 123.748.000 31.490.000 — 5.126.000 — 16.3 29.507.000 143.000 — 11.2 1.275.000 — 1.322.000 17.038.000 — 3.844.000 — 22.6 13.251.000 7.880.000 — 1.614.000 — 20.5 6.426.000 6.029.000 — 1.181.000 — 19.6 4.702.000 224.000 — 23.3 962,000 — 547,000 7.227.000 — 368.000 — 5.1 8.779.000 3.864.000 — 308.000 — 8.0 3.059.000 1.406.000 — 324.000 — 23.0 1.042.000 2.528.000 — 858.000 — 33.9 1.657.000 2.702.000 — 412,000 — 15.2 2.234.000 3.932.000 — 1.311.000 — 33.3 2.536.000 189.030.000 — 17,087,000 — 9.0 177.993.000 5.181.000 — 1.400.000 — 27.0 4.381.000 2.887.000 — 708.000 —24.5 44.177.000 — 7.793.000 — 17.6 31.047.000 3.394.000 560.000 16.5 2.705.000 12.233.000 — 2.511.000 — 20.5 8.474.000 15.548.000 — 2.785.000 — 17.9 12.166.000 3.213.000 — 602.000 — 18.7 2.375.000 Total........... $519,184,000 $623,429,000 $— 104,245,000 *Corresponding figures for 1923 not available. -16.7 $529,179,000 Increase or Decrease Amount Per Cent $ - 2.793.000 196.000 604.000 1.447.000 4.709.000 3.143.000 190.000 57,000 160.000 146.000 191.000 1.920.000 497.000 40.000 13.000 56.000 85.000 6.050.000 600.000 -17.0 - 8 .4 - 6 .5 - 2 .3 - 3 .8 -10.7 -14.4 - 0 .4 - 2 .5 3.1 34.9 -21.9 16.2 3 .8 5 , 337,666 "17.2 1.249.000 1.248.000 597.000 236.000 0.8 2 .5 3 .4 - 3 .4 -13.7 46.2 14.7 4 .9 9 .9 $-12,174,000 — 2.3 Movement of Livestock at Principal Centers in the Fourth Federal Reserve District for the Month of January, 1924-1923 Columbus. Fostoria. Marion. Springfield. Toledo___ Wheeling. . Columbus. Fostoria. . Marion. . . Springfield. Toledo... . Wheeling. . Cattle 1923 1924 21,423 19,600 12,407 10,649 38 74 1,692 1,990 343 334 49 42 37,059 31,171 333 257 734 1,205 310 480 14,672 13,398 11,709 10,283 38 5 132 38 49 44 6,948 5,682 46 153 728 480 310 Hogs Sheep 1923 1924 1924 1923 136,880 108,408 4,376 3,480 127,508 86,280 28,594 23,617 7,933 6,252 8 309 15,161 12,972 188 228 12,770 10,432 1,301 653 5,786 421 6,359 646 314,713 304,442 75,289 66,196 7,296 3,852 770 633 16,300 11,776 1,225 1,051 3,329 3,199 115 16 Purchases for Local Slaughter 79,557 69,936 3,038 3,224 62,990 16,283 15,590 108,625 303 570 19 8 1,000 250 3 10 2,819 2,702 2 7 69,397 57,118 7,476 9,827 4 754 686 3,176 243 16 3,199 115 3,329 Calves 1924 1923 10,175 9,889 10,322 8,800 81 94 764 692 579 551 153 118 38,709 29,706 266 176 446 585 1,014 715 5,158 9,999 30 71 60 7,463 83 384 1,014 Cars Unloaded 1924 1923 1,888 1,671 2,097 1,630 21 7 io 20 5,198 4,819 152 44 147 36 4,601 8,507 56 25 110 7,110 32 7is Wholesale Trade Percentage Increase (or Decrease) in Net Sales During Januaryt 1924, as Compared with December, 1923, and January, 1923 Dry Goods Net Sales (selling price) during January, 1924, compared with 6.9 December, 1923... ................................................................. Net Sales (selling price) during January, 1924, compared with DigitizedJanuary, for FRASER1923......................................................................... — 13.0 Hardware Drugs Groceries 8.3 10.0 __ 0 5 5.9 — 7.5 57 THE MONTHLY BUSINESS REVIEW 13 Comparative Statement of Selected Member Banks in Fourth District Feb. 13, 1924 (79 Banks) Loans and Discounts secured by U. S. Govern ment obligations........................................... Loans and Discounts secured by other stocks and b o n d s ........................................................... Loans and Discounts, all other............................ U. S. Pre-War Bonds........................................... U. S. Liberty Bonds............................................. U. S. Treasury Bonds.......................................... U. S. Treasury Notes........................................... U. S. Certificates of Indebtedness....................... Other Bonds, Stocks and Securities..................... Total Loans, Discounts, and Investments.......... Reserve with Federal Reserve Bank................... Cash in V ault....................................................... Net Demand Deposits......................................... Time Deposits...................................................... Government Deposits.......................................... Total Resources on date of this report............... Jan. 16, 1924 (80 Banks) $25,126,000 $27,491,000 399,590,000 686,798,000 48,274,000 109,078,000 6,160,000 56,072,000 6,049,000 304,173,000 1,641,320,000 115,997,000 30,936,000 899,190,000 616,894,000 17,210,000 2,126,131,000 404.947.000 676.204.000 48.315.000 105.227.000 4,319,000 55.712.000 7,000,000 301.639.000 1.630.854.000 107.751.000 30.777.000 885.364.000 608.805.000 18.931.000 2.077.190.000 Increase Increase Decrease $ ................ 10,594,000 3,851,000 1,841,000 360,000 .................. 2,534,000 10,466,000 8,246,000 159,000 13,826,000 8,089,000 48,941,000 $2,365,000 5,357,000 ................. 41,000 ................. ........................ ................. 951,000 ................. ................. ................. ................. ........ ................. 1,721,000 ................. Building Operations for Month of January, 1924-1923 Permits New Construction 1924 1923 A kron......... 104 110 Canton........ 65 77 C incinnati... 144 222 Cleveland*.. 443 683 Colum bus... 196 279 D ayton....... 75 153 Erie............. 35 29 Lexington... 31 34 Pittsburgh... 267 234 Springfield. 19 27 Toledo......... 135 117 W heeling.... 42 28 Youngstown. 128 65 Issued Alterations 1924 1923 20 13 34 29 126 171 442 441 81 54 64 50 21 27 9 13 88 58 8 14 71 82 36 29 15 13 New Construction 1924 1923 $ 235,760 $ 258,129 166,825 217,952 664,135 1,040,330 5,427,425 7,137,095 585,855 904,055 557,260 1,006,282 105,500 108,160 75,475 243,445 1,746,601 2,380,252 47,540 65,495 613,912 968,105 419,935 94,515 495,600 540,785 Valuation Alterations Increase or Decrease 1924 1923 Amount Per Cent $ 6,750 $ 13,800 — $29,419— 10.8 24,370 29,915 — 56,672 — 22.9 151,985 325,440 — 549,650 —40.2 641,335 629,625 — 1,697,960 — 21.9 72,545 241,745 — 487,400 - 4 2 .5 119,065 45,218 — 375,175 — 35.7 146,967 95,660 48,647 23.9 13,175 11,790 — 166,585 — 65.3 257,583 80,305 — 456,373 — 18.5 4,265 16,500 — 30,190 — 36 8 100,015 221,720 — 475,898 ^ 0 0 108,385 17,320 416,485 372 4 26,800 12,750 — 31,135 — 5.6 T o ta l... 1,684 2,058 1,015 994 $11,141,823 $14,964,600 $1,673,240 $1,741,788$-I^891~325 -^23~3 •Includes figures for East Cleveland, Lakewood, Cleveland Heights, and Shaker Heights. Department Store Sales (1) f T (2) Percentage of increase or Decrease Comparison of net sales with those of corresponding period last year No. of Reports 4 3 8 5 6 7 4 3 44* A January B Jan. 1 to Jan. 31 0.3 — 3.8 18.5 5.3 1.9 8.4 2.8 12.8 7.7 Akron............. 0.3 Canton............ — 3.8 Cincinnati. . . . 18.5 Cleveland....... 5.3 Columbus....... 1.9 Pittsburgh. . . . 8.4 Toledo............. 2.8 Youngstown... 12.8 District........... 7.7 U. S. Average.. 7.5 •Includes four reports from other cities* Stocks at end of month com pared with A January 1923 10.1 5.0 9.8 13.9 2.3 10.9 27.3 17.8 12.2 6.8 B December 1923 — 1.1 — 5.3 — 7.6 — 14.7 — 13.3 — 3.1 — 1.8 4.3 — 6.7 — 4.3 (3) (4) or Percentage of oPercentage average stocks outsta nding at end of each orders at end of month f To r n J a n u a r y , January 31 to average month ly la id over same period 447.0 780.7 369.3 323.3 387.7 353.8 473.9 314.4 370.8 381.3 purchases dar ing calendar year 1923 13.6 8.7 8.0 7.4 9.7 7.8 7.4 9.0 7.6 THE 14 MONTHLY BUSI NESS R E VIEW Summary of Business and Credit Conditions in the United States By the Federal Reserve Board PRODUCTION IN-----BASIC INDUSTRIES <S«po--------,---------- ----^----------------------r------ Production of basic commodities increase^ sharply in Ja n a ary, the volume of distribution continued larger than a year ago, and the wholesale price level remained unchanged. In February there was a n increase in the denxand for credit fo r commercial purposes. p r o d u c t io n Index o f 22 baaic commodities corrected for seasonal variation (1919 * 100). Latest figure— 120. The Federal Reserve Board’s index of production in basic industries increased 8 per cent in January and was at approxi mately the same level as a year ago. T hi^ increase followed a downward movement which had been under way since M 1923. The increases over December, which occurred in m ^ * of the industries, were particularly large in the p r o d u c t io n ^ steel ingots, lumber, and bituminous coal and in m ill consump tion of cotton. A small but genera! reduction of workuur forces at industrial establishments resulted in a slight declin in the index of factory employment The largest decreases o c curred at plants manufacturing food products and tobacco Contract awards for new buildings in January were slightl higher in value than in December an d were 26 per cent a bo a year ago. * t ra d e Railroad shipments, particularly of miscellaneous merchandise, increased during January and total car loadings were sotx» what above the high level of January, 1923. The index wholesale trade increased 11 per cent during January and w a slightly higher than a year ago. Sales of groceries, meat and drugs were larger than in January, 1923, while sales of d r v goods and shoes were smaller. Retail trade in January showed the usual seasonal decline. Compared w ith a year ago d partment store sales were 7 per cent larger and stocks T f merchandise at these stores, after declining in January w 6 per cent, above last year’s level. Sales of mail order h o u s l! in January, exceeded those of a year ago by 11 per cent. PRICES Index of U. S.! Bureau o f Labor Statistics. (1913 = 100, base adopted by Bureau). Latest figure— January. 151 The wholesale price index of the Bureau of Labor Statisti remained unchanged during January and was at a level per cent lower than a year ago. Prices of fuels and buildin materials which had been declining since early in 1923 incr in January, while prices of farm products, foods, and c lo t h W declined. During the first two weeks of February prices f hogs, sugar, hides, lumber, and metals advanced, while pri of cotton, wheat, and silk declined. es B A N K C R E D IT Weekly figures for member banks in 101 leading cities. Latest figure, February 13. The volume of borrowing for commercial purposes at me ber banks in leading cities, after an almost continuous decliT for more than three months, increased considerably during th * latter part of January and the first two weeks in Februa This increase was accompanied by a decline in loans secured b stocks and bonds. Total loans and investments of the reportin* banks are now slightly larger than a year ago; commercial loans and loans on stocks and bonds are larger, but investm are smaller. At the Federal Reserve banks the total v o W * of earning assets fluctuated within narrow limits during Fefc* ruary. The large return flow of currency and the repaym THE MONTHLY BUSINESS REVIEW 15 of discounts, which characterized the early weeks of the year, did not continue after January. Since the first week in Feb ruary the volume of discounts for member banks has been about $500,000,000 and the holdings of securities purchased in the open market about $400,000,000. The easier money conditions of January were followed in February by slightly firmer rates on acceptances and on short term government securities. Commercial paper rates in the New York market remained unchanged at 4^4 per cent. Weekly figures for 12 Federal Reserve Banks. Latest figures February 20. FOURTH FEDERAL BESE2VE D IS T R IC T SVLVANIA y > J r s T K-EHTg _ T --------------- 80UNDAB.Y OF D IST RIC T m m m BOUNOAZICS O f B&ANCH TEftZlTOM £$ — — BOUNOAR.IES OF STATES <*) FEDIZAL RESERVE BANK C I T Y O FEDERAL RESERVE BRANCH CITIES
@FedFRASER