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MONTHLY BUSINESS REVIEW
Covering financial, industrial, and agricultural conditions
in the
Fourth Federal Reserve District
Federal Reserve Bank of Cleveland
Vol- 9
Cleveland, Ohio, March 1, 1927
A seasonal increase in business activity in this Dis
trict has been going on during February, but operations
in many lines are still running behind last year. Recent
improvement is reported by the iron and steel trade, aided
by the recovery in automobile production from Decem
ber's low point. The position of the tire industry is dis
tinctly better than a year ago, in contrast to most other
industries. The coal situation is confused by the possi
bility of a strike in April. Business in clothing and
various other lines has been fair to good, even if behind
the exceptionally active levels of 1926. Retail trade in
this District was a little disappointing in January, falling
slightly behind last year. Credit conditions remain sound,
with the supply ample to cover requirements.
Although February statistics are not yet available, a
comparison of January figures of three highly impor
tant industries—iron and steel, automobile, and building—
throws considerable light upon the decline in genera)
business from 1926. Automobile output in that month
ran over 20 per cent behind a year ago; pig iron output
was 6.5 per cent less, steel ingots 8.3 per cent less, and
building contracts awarded, 16 per cent less.
In August, 1926, this bank requested
statements from about 50 leading man
ufacturers in the Fourth Federal Re
serve District as to whether customers were showing
any tendency to buy more liberally. The replies in nearly
all cases indicated that hand-to-mouth buying was still
the general practice; only 10 out of 43 firms reported
any increase in forward buying, and theae were mostly
slight.
In order to keep track of recent developments, this
bank has again requested statements from the above
manufacturers as to whether any change has taken place
during the past six months. The replies show that the
hand-to-mouth policy is still as much in use as ever, if
not more so, in this District. Of 42 replies, 26 state
that no change has occurred recently; 5 report customers
buying more freely; and 11 report even more conserva
tive purchasing than heretofore. Several of the latter
came from clothing and lumber manufacturers. Most
firms did not comment upon the merits of this buying
policy, but of tno?e who did, the majority appear to
be antagonistic toward it.
One concrete and striking example of the growth of
hand-to-mouth buying is found in the rapid decline in
No. 3
the stocks of wholesale dry goods firms in the Fourth
District during the past three years. The chart below
shows (a) an index number of sales and stocks, 19241926, the base (100) being 1924, and (b) the monthly
rate of stock turnover. The latter shows a pronounced
increase during the period, and stocks held by whole
salers show a parallel decline. For the year 1924, the
index number of stocks was 100; for 1925, it was 85.3;
and for 1926, it was 72.2, or a decline of 28 per cent
in two years. Sales meanwhile had declined only from
100 in 1924 to 94 in 1926. In 1924, wholesalers turned
their stock over 2.87 times during the year; in 1925,
3.30 times; and in 1926, 3.73 times.
Hand-to-Mouth
Buying
Employment
According to the Federal Reserve
Board’s index, factory employment in
this country has declined rather notice
ably in the past three months. In October, this index
(1919=100) stood at 96.3; in January, it had fallen to
92.4. This can hardly be explained on seasonal grounds
on the basis of the previous four years9 experience,
in two of which (1922 and 1924) there was an increase
in employment between October and January. In the
case of the Reserve Board’s index of payrolls, the de
cline is even more marked—from 112.4 in October te>
101,9 in January.
2
THE MONTHLY BUSINESS REVIEW
In this connection, a number o f large and representa
tive manufacturers in the Fourth District were recently
requested by this bank to outline their practice when
reducing plant operations. The 37 replies received
showed an equal division between those who prefer to
reduce the number of men employed, and those who
prefer to keep their employees but reduce the number of
working hours; 17 reported in favor of the former, 17
o f the latter, and three stated that they usually reduced
both the number of men and the number of working
hours. A considerable number of firms stated that they
would adopt the last-named plan if a prolonged period
o f slackness were encountered, but the question, as put,
was to ascertain what they would do first.
In the case o f those firms who first reduce the num
ber o f men employed, the usual procedure appears to be
to drop the incompetents and the newer men; but if any
further curtailment be necessary, to cut down on work
ing hours rather than to dismiss the older and more
highly-trained men. In some cases, where full-time op
erations require three shifts, one shift is laid off. Only
one or two o f the 37 replies indicated that the plant
would be closed entirely.
As to shorter hours, this may be accomplished either
by shortening the number o f working hours per day, or
by cutting down on the number o f working days per
week. The preference here was very distinctly in favor
o f the latter plan; o f the 17 firms who preferred shorter
hours, only four followed the plan o f shortening the
working hours per day. Several other firms stated
that they would do this only as a last resort. The
usual practice among the remaining 13 is to cut out
Saturdays, and if necessary to reduce even further to
a four-day week.
Financial
Conditions
Bills discounted by the Cleveland Federal Reserve Bank continued to decline
seasonally during the past month, stand
ing at 44 millions on February 16. This is one million
higher than a year ago but 56 millions less than on
December 22, the high point in 1926. Cash reserves in
creased heavily from 260 millions on December 29 to
309 millions on February 2, but then declined to 297
millions on February 16. Note circulation in the same
period fell from 225 to 198 millions.
Total credit extended by reporting member banks in
the Fourth District fell from 1361 to 1349 millions be
tween January 19 and February 16, the latter being 60
millions higher than a year ago. Investments rose from
618 to 625 millions, or five millions higher than last
year. Demand and time deposits both rose slightly dur
ing the month, demand deposits on February 16 amount
ing to 1024 millions, or two millions more than last
year, and time deposits to 828 millions, or 66 millions
more.
Interest rates in the large cities are virtually un
changed from last month. On February 15, 5 to 6 per
cent prevailed on prime commercial paper, and 6 per
cent on stock exchange collateral.
Debits to individual accounts at 24 cities in the Dis
trict were $3,635,148,000 in the five weeks ending Feb
ruary 16, a gain o f 4.8 per cent over last year.
Commercial failures in the Fourth District as re
ported by Dun’s numbered 220 in January as compared
with 244 last year and 132 in December. Liabilities
were $3,048,821 in January, $3,263,000 in Decem ber and
$5,581,160 a year ago. In the United States there w ere
2465 failures in January, 2069 in December and 2296
in January, 1926.
Changes in the main items in the balance sheets o f
Federal Reserve and reporting member banks are as
follow s.
Federal Reserve
Ba,? k ? £ £ ! cveland fe d e ra l R eserve S ystem
(In M illions)
( l n M illio n s)
Feb. 16, Feb. 17, Jan. 19, Feb. 16, Feb. 17. J a n 19
1927
1926
1927 1927
1926
1927 '
286
300
266
2,990
2,789
2 986
Gold reserves ....................
Discounts .............................
44
43
59
396
538
’416
A cceptances ........................
28
17
29
315
302
S87
U . S. Securities ................
36
33
35
312
334
r ij
T otal bills and securities
108
93
123
1,025
1,185
1,069
Federal Reserve notes in
circulation ................. .
198
200
200
1,685
1,661
1,710
T otal deposits ....................
190
187
183
2,342
2,327
2,318
R eportin g M em ber Banks
Fourth D istrict
U nited State*
(In M illions)
<In M illio n s)
Feb. 16, Feb. 17, Jan. 19, Feb. 16, Feb. 17l a
1027
1926
1927
1927
1926
1927
Loans
seciired
by stocks
and bonds .........................
541
All other ...............................
808
T otal loans ........................... 1,349
Investm ents .........................
625
Dem and deposits ................ 1,024
T im e deposits ....................
828
Iron and
Steel
515
774
1,289
618
1,022
762
554
808
1,361
620
1,016
819
5,427
8,697
14,124
5,603
12,939
5,902
5,447
8,514
13,961
5,465
13,017
5,421
5 524
8760
14£84
5 523
13 040
5^70
In a general way in recent years, F ebruary output o f pig iron and steel in
gots has been about on a parity w ith
January, while March has forged ahead to a high de
gree of activity. This year, January production o f
pig iron barely nosed out December, while steel in gots
gained about 10 per cent, and February registered fa ir
gains in the daily rates over January. Throughout the
month, new business in iron and steel picked up m od
erately, but unlike a year ago it was at the expense
of price. The recent reductions appear to have brought
out business instead o f deferring it until consumers w ere
convinced bottom w’as reached.
While some products
notably sheets and strip, have suffered sharp reduc
tions, most steel lines experienced a shaking-out o f sev
eral dollars. The $2 per ton reduction in steel bars
structural shapes and tank plates at Pittsburgh, to a
basis o f $1.90 per hundred pounds fo r bars and shapes
and $1.80 for plates, seemed to clear up the weakness in
these products.
Weakness in semifinished material developed early in
February in the Cleveland district and ran through the
month. Billets and slabs dropped $1 to $2 a ton, m ak
ing the quotation $33 to $34 at Cleveland, while sheet
bars receded from $36 to $34. These prices, broadly
also obtained in the Pittsburgh and Youngstown m ar
kets, although some makers in the Mahoning valley
held to the old levels. W ire rods went off $2, to $43
Pittsburgh and Cleveland.
Pig iron experienced a spotty market. Basic, bessemer
foundry and malleable dipped slightly at Pittsburgh and
Youngstown early in the month and then toward the
end recovered the lost ground. Melters in the P itts
burgh district were extremely apathetic in spite o f the
uncertainty over the fuel situation. Producers with head
quarters at Cleveland booked more than 50,000 tons
in each o f two consecutive weeks follow ing a price cut
o f 50 cents per ton, to $19 delivered, Cleveland. One
Cleveland interest solicited business in southern Ohio at
$18, Cleveland furnace. The activity at Cleveland ren
resented safeguarding against a possible coal strik
THE MONTHLY BUSINESS REVIEW
rather than an increase in the melt, and holdup orders
to the furnaces were fairly large.
Sales of heavy finished steel in the Cleveland district
were only moderate. Inquiry was fair but by the time
business reached the order stage the tonnage usually
had shrunk. Even so, slight improvement was shown
over January„ The slow comeback in the automobile
and its allied industries proved a severe damper. Much
of the weakness in sheets and strip resulted from
a dearth of orders from automotive interests, but bet
terment was the rule in the last half of February.
The Iron Trade Review index of fourteen leading
iron and steel products continued to fall through Feb
ruary. At the beginning of the month it stood at $37.32;
by the end it had fallen below $36.75. In January this
barometer averaged $37.68.
January pig iron production totaled 3,096,000 tons, com
pared with 3,089,175 tons in December and 3,319,789 tons
in January, 1925. Steel ingot output in January was 3,806,888 tons, against 3,472,000 tons in December and 4,150,469 tons last January.
Coal
In spite of the threatened strike of
union soft coal workers on April 1,
the price trend of bituminous has been
almost steadily downward since the first of the year.
On January 1, the Coal Age average price was $2.40 a
ton; by February 7, it had declined to $2.16, and a week
later was $2.11— about the same as a year ago.
In considering the price decline since the high point
of $3.61 on November 8, it should be remembered that
a very rapid rise took place in October, so that a good
part of the recent fall counterbalances the October ad
vance. Another factor, however, also enters into recent
price weakness— that of production. In October and No
vember, this mounted to record levels; and after a tem
porary falling-off in December, following the end of the
British coal strike, the production curve again turned
upward in January. Output in February continues heavy,
although in previous years a seasonal decline has ap
peared during this month. This large production has
enabled consumers to add to their storage stocks in
anticipation of a strike without any advance in prices.
No statistics on storage stocks since January 1 are
available, but reports indicate a gradual increase since
that date. The government report puts stocks in the
hands of commercial consumers at 55,000,000 tons on
January 1, this being a high figure as compared with
previous reporting dates and representing a steady gain
since the middle of 1926. This is confirmed by the Jan
uary report of the National Association of Purchasing
Agents, which shows stocks at the beginning of 1927
to be the highest since late in 1925.
In the Fourth District, householders’ demand has been
about normal except during the middle of February,
when exceptionally mild temperatures caused a drop.
The feeling among dealers and operators is one of cau
tion, induced by the possibility of a strike and by the
oonfused condition of the soft coal market.
Exports of bituminous coal in 1926 far exceeded those
of 1925, according to the Department of Commerce. In
1926, they totaled 155,838,572 tons, as compared with
68,402,668 in 1925—the increase being caused by the Brit
ish strike.
3
Rubber
and Tires
An improvement has recently taken
place in the tire industry in this Dis
trict, which manufacturers feel is only
partly explained by seasonal factors.
Conditions are distinctly better than a year ago, when
crude rubber prices were on the downgrade and con
sumers were consequently buying at a minimum while
waiting to see how far prices would fall. In contrast,
crude rubber this year has been relatively stable, fluc
tuating mostly within a narrow range of between 37 and
40 cents a pound; the spring dating plan has been
in operation this year, while a year ago it was not;
and dealers have bought more heavily than in the first
two months of 1926, it being stated that their stocks
have been unusually low for this time of year. The
combined effect of these factors appears to have more
than counteracted the smaller demand by automobile
makers this year for tires as original equipment.
Another 10 per cent cut in the amount of rubber
allowed for export from British owned plantations took
place on February 1, the amount now being 70 per cent
of standard production. This was in accordance with the
provisions of the Stevenson Act, the London price dur
ing the quarter ending February 1 having failed to
average 21 pence (42 cents) a pound. A further reduc
tion will automatically take place on May 1, unless the
42 cent average is maintained in the present quarter.
So far, the cut has had but little, if any, effect on
crude rubber prices and it is stated that an ample re
serve supply of rubber now exists, both in London and
in this country.
The United States imported 411,962 long tons of
rubber in 1926, as compared with 384,837 in 1925 and
314,058 in 1924.
On February 17, there was announced a reduction of
7% per cent in the prices of tires to manufacturers as
original equipment.
Automobiles
January automobile production in the
United States turned sharply upward
from December’s very low figure, but
was far behind the month of January, 1926. Actual fig
ures for passenger cars and trucks combined were: Jan
uary, 1927— 234,130; December, 1926— 165,822; January,
1926—302,741; January, 1925— 232,188. Reports indicate
a further increase of activity during February.
Truck manufacturers in the Fourth District report
business during January and the first half of February
as being considerably less than in the same period last
year.
Clothing
Clothing manufacturers are doing a
fair amount of business, and 1927 to
date compares reasonably well with
last year. There continues to be some complaint con
cerning the hand-to-mouth buying policy, which has
been the rule in this industry for some time. Reports
from nine clothing concerns in this District are unani
mous in saying that this policy still continues, and more
than half (particularly in men’s wear) state that the
tendency of customers is more and more to get away from
advance orders and to buy only for current needs. This
is hampering some manufacturers who are faced with
the necessity of carrying larger stocks and who are less
*
THE MONTHLY BUSINESS REVIEW
certain than form erly as to how much future business
may be expected.
The men’s clothing1 trade is spotty, with a cautious
spirit apparent. Retailers are fairly well cleaned up on
surplus stocks. Conditions in the men’s underwear line
are only fair. Business in women’s dresses compares
favorably with last year, and the spring trade is de
veloping satisfactorily. Worsted manufacturers are “ be
tween seasons” and are preparing fo r fall lines. Knitted
wear makers are enjoying an increase in trade over last
year.
Preliminary reports indicate a loss o f about ten per
cent in January sales o f wholesale dry good3 houses in
this District as compared with last year.
Retail clothing sales also underwent several losses in
January as compared with a year ago. Reports from
44 retail firms show decreases o f 5.5 per cent in men’s
wear, 2.7 in boys' wear, 12.1 in waists and blouses, 16.7
in sweaters, 3.7 in corsets, 2.6 in silk and muslin under
wear, and 9.1 in negligees. Gains were as follow s:
women’s coats, 3.5 per cent; women’s dresses, 4.4; misses’
ready-to-wear, 4.5; juniors’ and girls’ ready-to-wear, 2.9;
knit underwear, 6.5; petticoats, 8.8; and aprons and house
dresses, 4.6.
Prices of cotton and cotton goods have advanced lately,
while wool and woolen goods remain unchanged. Silk
prices weakened in January but recovered in the middle
o f February.
Shoes
Reports from this industry are rather
conflicting, but on the whole there ap
pears to be no great change from a
month ago as fa r as the manufacturing end is concerned.
Wholesale shoe sales in this District in January finally
showed a loss from the preceding year fo r the first time
since last April. The decline was 12.5 per cent from
January, 1926, and 39.8 per cent from December, the
latter being seasonal.
Retail sales in January also weakened for the first
time in several months, women’s and children’s shoes in
department stores showing a loss o f 3 per cent, while
men’s and boys’ shoes gained 0.1 per cent.
Preliminary production figures fo r January indicate a
loss o f about 5 per cent from December in this Disrict, and of 2 per cent in the United States. Production
in December in the Fourth District was 14.8 per cent
ahead o f the same month of 1925.
General
Manufac*
turing
No great change is apparent since last
month in the business o f various lines
c f manufacture in this District. In
those lines where February normally brings an uptrend,
au«h an uptrend has taken place; but activity in gen*
eral Is still behind that o f a year ago.
Agricultural implement makers are doing a fair vol
ume o f business in this section but report conditions
unfavorable in their branch territories throughout the
Southern cotton regions. A slight downward trend has
taken place in the electrical manufacturing industry in
the Pittsburgh area. Some machinery makers are doing
better than last year, and one or two other lines also
report this condition- The stove trade is quiet. No
changes o f importance have occurred in the paper indus
try. Firmer prices have induced buying on the part
of boxboard consumers who had been waiting fo r a pos
sible further price decline. The paint trade was quiet in
January, but February showed an improvement, mild
weather and better automobile demand being responsible.
Demand fo r lacquers continue strong. White lead sales
have been up to last year.
Livestock
The livestock outlook in the Fourth D is
trict is rather favorable at this time.
Although the total livestock on farms
has decreased about two per cent as compared with last
year, the value per head on all classes, with the exception
o f horses and mules, has increased appreciably.
While the number o f dairy cows on the farms during
the past two years has declined, there has been a decided
upturn in the number o f heifers and heifer calves held
for milk cow replacement. This seems to indicate that
the dairy industry is in an optimistic frame of mind
with cattle prices well sustained during the past two
years and recently advancing. There has been a generally
more satisfactory relation between feed costs and milk
prices, and barring the pasture situation, other conditions
have been such as to give dairy men encouragement.
Beef cattle marketings are adversely affected by the
steady decrease in the number owned by farm ers in the
Fourth District.
Favorable market prices on hogs for the past year or
more have resulted in expansion in this line. The domestic demand is strong, and with the price of corn continuing
lower than last year, conditions are satisfactory.
The number of sheep is showing a tendency to increase
and lamb supplies are also large, due to the large number
o f ewe lambs kept for breeding purposes last year. The
market outlook for both lambs and wool appears fa irly
good.
The number of horses in the District has declined 5
per cent from last year. The supply of old stock is
probably enough to meet the farm ers’ needs but the num
ber of colts is only large enough to replace half the
number o f work stock on the farms.
Tobacco
January sales o f Kentucky burley to
bacco, according to the Commissioner
of Agriculture, amounted to 66,000,0(H)
pounds, at an average o f 13.8 cents a pound. O f this
total, the Burley Tobacco Growers Cooperative A ssocia
tion sold 36,000,000 pounds, at an average o f 14.1 cents
Prices have been fairly stable in the last two months*
although very low in comparison with the price o f about
21 cents a pound received a year ago.
Stocks o f burley in the hands o f manufacturers and
dealers at the beginning o f 1927 were around 470,000 000
pounds, a gain o f almost 200,000,000 pounds in the last
five years. The Government crop report o f January 1
calls attention to the fact that production o f burley from
1921 to 1925 inclusive exceeded consumption by 34,000 000
pounds a year, and that in 1926 this excess was over
44,000,000 pounds. This overproduction has finally had its
effect in the prices being received this year. The report
urges a reduction in burley acreage.
THE MONTHLY BUSINESS REVIEW
Building
For the tenth successive month the
value of building permits in the United
States during January was less than
for the corresponding month in the previous year, accord
ing to Bradstreet’s. Permits in 159 cities totaled $196,872,815, a loss of 13.6 per cent from a year ago. Con
tracts awarded in 37 eastern states, according to the
Dodge Corporation, amounted to $384,455,400 in January,
a decrease of 16 per cent from last year.
In the Fourth District, plus western Kentucky and all
of West Virginia, contracts awarded in January totaled
$50,057,700, a gain of 29 per cent over last year. The
main items making up this total were: public works
and utilities, $16,941,200; residences, $14,502,700; commer
cial buildings, $10,916,300; educational, $2,787,500; indus
trial, $2,333,000; and religious and memorial, $1,147,000.
Building permits for 27 cities in the Fourth District in
January were $13,655,117, a lo8S of 0.9 per cent from
last year. Large increases occurred in Akron, Ashtabula,
Cincinnati, Erie, Newark, and Toledo and large de
creases in Barberton, Cleveland, Hamilton, Lexington,
Lima and Youngstown.
Building Operations
January, 1927
% chan^e^from
Akron........
Aihrabula.
Barberton.
Cincinnati..................
Cleveland...................
** suburbs:
Cleveland Heights.
East Cleveland....
EuHid.....................
Garfield Heights...
Lakewood..............
Parma.....................
Rocky River..........
Shaker Height*___
Columbus...................
Covington, Ky.......
Dayton.......................
Eric, Pa......................
Hamilton....................
Lexington, Ky............
Lima...........................
Newark......................
Pittsburgh, Pa...........
Springfield..................
Toledo........................
Wheeling, W. Va..
Youngstown...........
Totals.
$2,584,432
55,020
6,551
206,195
1,878.145
1,451,62$
+ 458 .0
+ 540.0
-< 4 .0
+ 3 .8
+ 6 2 .6
— 48.6
194,100
62,130
72,69$
76,S00
34,047
200,020
71,625
523.500
1,009,300
53,400
399,490
236,635
50,274
170,575
14,37*
13,900
1,368,20.*
62,600
557,757
76,674
226,350
— 41.8
— 52.0
— 44.1
— 44.8
— 85.4
+ 165.9
+133.7
+ 125.6
■*0.5
+ 0 .4
+ 7 .7
+ 9 5 .5
— 49.7
— 51. S
— % .9
+178.0
— 11.2
+ 6 .7
+ 3 5 .8
+ 1 7 .8
— 77.8
S13«656,U7
—0 .9
6
Building
Materials
Lumber manufacturers and dealers in
this section, with one or two excep
tions, report business as dull, with
demand sluggish. Some increase in activity has taken
place in February, but this is seasonal, and in general,
business is running behind last year. Prices on both
softwoods and hardwoods have weakened slightly in the
last two months. Profit margins are stated to be smalL
Cement output in Ohio, West Virginia and Western
Pennsylvania in January aggregated 527,000 barrels, a
gain of 4,000 over last year.
The Aberthaw index of building costs stood at 194
on February 1, a reduction of two points, which was
caused largely by a cut in cement prices and lower steel
and lumber prices.
Retail Trade
Sales of 66 department stores were 0.8
per cent smaller in January than a year
ago. Material gains in Columbus, Day
ton and Toledo were more than offset by losses in Cleve
land and Pittsburgh.
In separate departments, preliminary figures indicate
increases over last year of more than ten per cent in
jewelry, umbrellas, hosiery, luggage, and books and sta
tionery. Losses of more than ten per cent were recorded
in silks and velvets, woolen dress goods, laces, art goods,
women’s suits, women’s skirts, waists and blouses, sweat
ers, furniture, toys and sport goods and musical instru
ments.
Wholesale Trade This bank’s index of sales of 100
wholesale firms in this District (19191923=100) stood at 73 in January, the
lowest for that month during the past seven years except
1922. In January of both 1923 and 1924, the index was
88; in 1925, it was 81, and in 1926, it was 77. The de
cline in the past two years is partly, but not altogether,
the result of lower wholesale prices.
January sales of wholesale drugs were 3.6 per cent
greater than a year ago, and of hardware, 0.1 per cent
more. Grocery sales, however, fell off 5.7 per cent;
shoes, 12.5 per cent; and dry goods, 12.7 per cent.
The monthly stock turnover rate in groceries was .461
in January, or 5.53 annually; and in dry goods was .294,
or 3.53 annually.
THE MONTHLY BUSINESS REVIEW
Fourth District Business Statistics
(AH figures are lor Fourth District unless otherwise specified)
Bank Debits (23 cities)
Savings Deposits (end of month)
Ohio (43 banks)
Western Pennsylvania (27 banks)
Total (70 banks)
Commercial Failures— Number
44
“
— Liabilities
Postal Receipts—9 cities
Sales—-Life Insurance—Ohio and Pa.
“ — Dept. Stores— (50 firms)
M — Wholesale Grocery
(51 firms)
“ —
“
Dry Goods — (16 *» )
44 —
Hardware
— (16 44 )
*‘ —
44
Drugs
— OS 44 )
Building Permits. Valuation— 28 cities
Production — Pig Iron, U. S.
44
— Steel Ingots, U* S.
“
— Automobiles, U. S.
Passenger Cars
Trucks
“
— Bituminous Coal, 4th Dist.
44
— Cement: Ohio, W. Va., Wn. Pa.
••
— Petroleum,: Ohio, Pa., Ky.
44
— Shoes, 4th Dist.
— Tires, U. S.
Bituminous Coal Shipments (from Lake Erie ports)
Iron Ore Receipts (at Lake Erie ports)
* December
* Figures Confidential
Millions of dollars
Thous. of dollars
.»
..
««
41
K
Actual Number
Thous. of dollars
»»
««
«»
.«
II
4*
*'
“
“
**
it
M
II
u
<«
..
“
**
**
Thous of Tong
** 44 44
Actual Number
it
a*
Thous. of Tons
** *4 barrels
•• n
*«
44
44
“
(Average Monthly Sales for the Five-Year Period 1919-1923 inc. * 100)
January January January January January
1923
1925
1927
1924
1926
Department Stores (5 0 )* ....
88
9S
93
92
91
Wholesale Drugs (14)*.........
US
no
109
111
116
Wholesale Dry Goods (15)*.
99
89
69
63
55
79
Wholesale Groceries (51**...
84
80
74
69
Wholesale Hardware (1 5 )* ..
94
95
94
86
56
45
Wholesale Shoe* (5 )* ............
44
48
56
48
S$
77
Wholesale— All (100)*..........
88
81
73
98
Chain Drugs (3 )*t................
91
97
98
* Number of firms,
t Per individual unit operated.
100
Debits to Individual Accounts
Total.....................£3,635,148
+ 4 .8 $5,430,552 $5,147,393
% change
from 1926
+ 3 .1
678,453
247,765
926,218
220
3,049
3,054
85,941
19,798
5,988
2,331
1,746
1,843
13,656
3,100
3,807
634,653
234,105
868,758
244
5,581
2,884
76,192
20,103
6,412
2,669
1,74S
1,779
13,783
3,316
4,150
+ 6 .9
+ 5 .8
+ 6 .6
— 9 .8
— 45 .4
+ 5 .9
+ 1 2 .8
— 1.5
— 6 .6
— 12.7
+ 0 .1
+ 3 .6
— 0 .9
— 6 .5
— 8.3
196,973
37,157
23.735*
527
1,890*
272,922
29,819
20,725*
523
1,758*
*
3,627*
— 27.8
+ 2 4 .6
+ 1 4 .5 *
+ 0 .8
+ 7 .S *
+ 1 4 .8 *
— 2.0*
3,556*
Index Numbers of Trade in the Fourth Federal
Reserve District
Akron.......................
Butler. Pa.................
Canton.....................
Cincinnati................
Cleveland.................
Columbus.................
Connellsville, Pa.......
Dayton.....................
Erie, Pa.....................
Greensburg, Pa........
Homestead. Pa......
Lexington, Kv..........
Lim a........... ..........
Lorain.......................
M iddletown...
Oil City, Pa............
Pittsburgh................
Springfield................
Steubenville.............
Toledo......................
Warren.....................
Wheeling, W. Va.. .
Youngstown............
Zanesville.................
January
1926
3,302
2
44 pairs
44 casings
“ ton*
(In thousands of dollars)
5 weeks
1927 to
1926 to
ending
date
date
Feb. 16, % change (Dcc. 30 (Dec. 31
1927
from 1926 Feb. 16) Feb. 17)
95,756
$143,007 $153,095
— 9.3
— 2.7
12,502
18,905
18,984
— 10.3
49,369
78,562
83,668
667,157
— 8.8
431,834
689,233
+ 9 .8 1,390,894 1,262,440
883,617
264,474
183,211
+ 7 .1
297,301
+ 2 .3
8,625
8.244
5,910
145,451
+ 4 .2
99,853
159,445
—2.5
57,244
57,575
38,866
—0 .9
35,477
35,588
25,107
+ 1 .5
6,906
6,880
4,916
55,637
+ 5 .6
50,653
*8,576
—
9.7
26,162
25,994
15,167
— 3.9
9,144
8,854
6,019
+ 6 .9
18,303
19,083
12,882
25,127
22,564
+ 1 8 .6
18.477
+ 1 1 .9 1,749,058 1,609,890
1,269.956
39,258
— 6.2
42,182
25,625
17,428
— 1.1
18,005
11,691
378,521
374,807
— 3.5
236,059
22,722
22,528
+ 2 .1
16,249
— 19.7
76,509
91,543
50,905
128,997
114,097
+ 6 .0
78.906
21,103
—
3.5
20,621
13,695
January
1927
3,405
% change
from 1926
— 6 .6
—0.4
—6.1
— 3.2
+ 10.2
+ 12.4
+ 4 .6
+ 9 .6
—0 .6
—0.3
+ 0 .4
+ 9 .8
— 0.6
— 3.2
—4.1
+ 11.4
+ 8 .6
—6 .9
-3 .2
+ 1 .0
+ 0 .9
— 16.4
+13.1
— 2.3
T T s
Retail and Wholesale Trade
No. ov
DEPARTMENT STORES
ReP©«*
Akron..............................................................
5
Cincinnati.......................................................
7
Cleveland........................................................
6
Columbus........................................................
7
Dayton............................................................
3
Pittsburgh.......................................................
7
Toledo.............................................................
4
Wheeling.........................................................
5
Youngstown....................................................
3
Other Cities................................ ..................
16
District............................................................
66
W EARING APPAREL
Cincinnati.......................................................
6
Cleveland........................................................
3
Other Cities....................................................
8
District............................................................
17
FURNITURE
Canton............................................................
3
Cincinnati.......................................................
U
Cleveland........................................................
8
Columbus........................................................
15
Dayton...........................................................
5
Toledo.............................................................
6
Other Cities...................................................
9
District..........................................................
57
CHAIN STORES*
Drugs— District........................................... ............. J
Groceries— District................................................... $
WHOLESALE GROCERIES
Akron. . . ; ....................................................
3
Cincinnati.......................................................
3
Cleveland........................................................
Erie..................................................................
4
Pittsburgh.......................................................
8
Toledo.............................................................
3
Other Cities...................................................
27
District............................................................
52
WHOLESALE DRY GOODS.......................
\c
WHOLESALE DRUGS..................................
is
WHOLESALE HARDW ARE.....................
i6
WHOLESALE SHOES................................. ............. 5
* Sales per individual unit operated.
4
Percentage
Increase or Decrease
SALES
January, 1927
compared with
January, 1926
+ 0 .9
+ 0 .3
—1.7
+ 9 .7
+ 8.1
—5.3
+ 11.1
— 1.8
+0.6
— 0.8
— 0.8
— 3.8
—0.8
—9.1
— 4.5
— 7.7
—2.0
— 5.4
—10.1
+ 2 6 .9
+ C .8
— 11.4
— 1.9
— 1.6
— 7.4
— 13.2
— 8.3
—3.J
— 5.3
— 5 .6
— 5.7
— 12.7
THE MONTHLY BUSINESS BE VIEW
7
Summary of National Business Conditions
By The Federal Reserve Board
Industrial activity has been slightly larger since the turn of the year,
than at the close o f 1926.
Seasonal liquidation o f reserve bank credit
has been in unusually large volume owing chiefly to the inflow of gold
from abroad and conditions in the money market have been easy.
Whole
sale prices have continued to decline.
Production
Output o f
factories
was larger
in January
smaller than in January, 1926 or 1925.
than
in December
but
Mineral productions, though some
what below the December level, continued in unusually large volume, reflect
Index numbers of production o f m anufacture*
and mineral* combined, adjusted for seasonal
variations (1923-1925 = 100 ) .
Latest figu re:
January— 10S.
ing the maintenance o f production o f bituminous coal, crude petroleum and
copper.
Manufacture of iron and steel, which was sharply curtailed in
December, increased
in January and February.
Automobile
output was
increased considerably from the unusually low level o f production reached
last December, but the number of passenger cars produced since the beginning o f the year has been smaller than for the corresponding period of the
past four years.
The textile industries have continued active since December
without, however, showing the usual seasonal increase.
Building contracts awarded in 37 states during the first seven weeks
of the year were smaller in value than those for the same period o f 1926.
Decreases
have
been
largest
in
New
York
and
in
the
New
England,
Southeastern and Northwestern states, while increases occurred in the Middle
*925
1926
raz?
Index of U. S. Bureau of Labor Statistics.
(1913 = 100, base adopted by Bureau). Latest
figure: January— l ifi.9.
Atlantic
and
Central
Western
states.
By
types
of
building,
contracts
awarded for residential and industrial building in January showed large
reductions as
compared
contracts
commercial
for
with
December
buildings
and
were
with
larger
January,
than
a
1926, while
month
or
a
year ago.
Trade
Monthly averages of daily figures for the 12
Federal Reserve Banks.
Latest figures are
averages of first 23 days In February.
Retail trade showed more than the usual seasonal decline between
December and January.
Sales of department stores were in about the
same volume as a year ago, while those of mail order houses were seven
per cent smaller.
Wholesale trade declined in nearly all leading lines
in January and was considerably smaller than a year ago.
Inventories
of department stores were reduced less than is customary and at the
end o f the month were in about the same volume as in January, 1926.
Stocks o f merchandise carried by wholesale firms increased slightly but
continued in smaller volume than in the corresponding month of ths
previous year.
Freight car loadings declined by somew’hat more than
the seasonal amount between December and January but owing chiefly to
heavier shipments o f coal this year, weekly loadings since the beginning
of the year were larger than for the same period o f 1926. Shipments of
merchandise in less than carload lots were also slightly larger than last
year but those of most basic commodities were smaller.
Prices
Monthly averages of weekly figures for bank*
In 101 leading cities. Latest figures are av
erages for first three weekly report dates in
February.
The general level of wholesale prices declined fractionally in January*,
according to the index of the bureau o f labor statistics, considerable advances
in prices o f live stock being somewhat more than offset in the total by
decreases in nearly all ether commodity groups included in the index. Prices
of non-agricultural products, as a group, declined to the lowest level since
early in 1922. In February there were decreases in the price o f iron and
steel, non-ferrous metals, bituminous coal, grains, and hides, while prices
of cattlc, sheep, cotton, and gasolene increased.
Index of National Business Conditions
The base (100) for all the charts except the first is the monthly average for the 5 years 1919-1923 rnelnsive.
For the first chart, the base is the monthly average for the three years 1921-1923.
VOLUME OF CHECK PAYMENTS
PC«< ---»««►CENT
i
t
]
ZOO
i
!
iSQ
ac
lr* A
•OD. . . - Mi
too
11
1
200
1
50
1 1
11923 f 1934 <9*5 <55€™“ IS47 0
!pmccnt
WHOLESALE TRADE
1 i|1
|1
200 ii
i !11
!
{ ISOi1
1I 1
1
J;
200
"SO
1
A-
1 1
9 £3 9£4
i
PfR,
j1H
s
!
A rjS ]
' I r 7 !
SOI
!
I
i j I « IS
»
CAR LOADINGS
s1
j
|
A
100
sr-'N
so
1**7 0
IWi
r
J
pe»<
1pnnl1---------
1
I
(SO)--- !--#L
100L—
50
V ---------i
j
~mr
s f
b
""'824 ' •925 J
3
PK IRON PRODUCTION
■gar...,______ _____________ ______ r..,..jRE3 .f*NT
T52T
1.
2.
3.
4.
■wsr Twr^wr TaTT-0
LA T E S T FIGU R ES
M ember Bank C red it: Loans, January— 123. Investm ents, Janu&. WTio5e*aI« Trade. Decem ber— S8.
a r y — 13 $.
7. B unding P erm its, January— 122 .
M em ber Bank D ep osits: Demand, January— U 9 .
Time, January
8. Car Loadings, January— 1 1 1 .
— 197.
9. E xporta o f M erchand ise Jan uary
__ gg.
Check Payment#, except New York, January— 134.
Commercial Failures January— 1$I.
5. Retail Trade, January—101.
10.
Bitmninona Coal Production*
January- 141
t l. Ptff Iron Production. January— 134.
U. A otow W U Production, January— 112 .
i
\---
1
~1*ZT ^
@FedFRASER