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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. 11
Cleveland, Ohio, March 1, 1929
Industrial activity in the Fourth District continued high
in both January and February. The District's basic manu
facturing industry, iron and steel, was operating at an
even higher rate than during the Fourth Quarter o f 1928.
Several large mills were very close to capacity in midFebruary, and as prices have remained firm fo r the most
part, earnings are very good. Some betterment is reported
by the coal trade, with small industrial stocks and cold
weather being stimulating factors. Automobile sales are
stated to be satisfactory, January registrations o f new
passenger cars in Ohio being 56 per cent larger than a
year ago. Automobile accessory manufacturers continue
to enjoy near-capacity operations and improved earnings.
Business in rubber and tires exceeds that o f a year ago
in volume, although Spring orders have been rather slow.
Shoe factories are more active than last month while
clothing makers report but little change recently.
Building generally has been declining fo r some months,
after allowing for seasonal factors, and although large
industrial contracts brought about an increase in the
January total fo r this District, residential building was
less than last year. In the United States, building was
lower than a year ago in both January and early February.
The Federal Reserve Board's index o f building contracts
awarded fo r the country, adjusted fo r seasonal, fell from
141 in October to 126 in November and 116 in December,
and although there was a rise to 128 in January, the
index was nine points under a year ago. Daily average
building contracts awarded in the country fo r the first
22 days o f February were only $15,372,400 as compared
with $18,634,900 in all o f January and $21,151,400 in all of
February, 1928, and similar decreases were shown in
Fourth District territory.
No. 3
FIN A N C IAL
During the four weeks ending February 20 Federal
Reserve credit extended decreased. Bills discounted in
creased, but this was more than offset by declines in
holdings o f acceptances and Government securities. Money
rates continued firm. Gold was received in substantial
volume, imports for the four weeks amounting to about
$34,000,000 with exports negligible. On February 1 our
monetary gold stock was $4,126,600,000, a drop o f $15,000,000 from a month earlier— largely due to an increase
in earmarkings.
Money Rates. February was marked by continued firm
ness in money rates, with an upward revision o f acceptance
rates. The asked rate on 90-day acceptances was advanced
from 5 to 5^4 per cent in mid-February, and the buying
rate at the Reserve banks was also advanced.
Prime
commercial paper held steady at 5 % -5 Vi per cent, but the
5M quotation is now almost nominal, as very few trans
actions are being made at that rate.
On the stock
exchange, time money (90 day) on February 21 was
still quoted at 1% per cent, while call money fo r the past
few weeks has ranged mostly between 6 and 7 per cent.
Early in February the Bank of England announced an
increase in its discount rate from 4 Ms to 5 Ms per cent, and
follow ing this there was a rise in sterling exchange above
the gold export point.
Customers’ rates in the Fourth District are about the
same as a month ago. In Cleveland, large banks are
charging 5% -6 per cent on both loans on prime commercial
paper and collateral loans.
Reserve Bank Credit. During the fou r weeks ending
February 20, total accommodation extended by the Reserve
System fell from $1,447,000,000 to $1,403,000,000, but bills
discounted rose from $782,000,000 to $865,000,000. This
increase o f $83,000,000 in discounts was largely accounted
for by a drop of $99,000,000 in acceptance holdings and of
$30,000,000 in Government securities held, partly offset
by an increase o f $26,000,000 in cash reserves, a fall o f
$9,000,000 in note circulation, and a decline o f $40,000,000
in member bank reserve deposits.
On February 20, discounts stood at $864,980,000 as
against $461,044,000 a year ago; acceptances $355,636,000
as against $353,227,000; Government securities $172,589,000
as against $401,512,000; total bills and securities, $1,403,280,000 and $1,216,283,000.
THE MONTHLY BUSINESS
2
REVIEW
. Discounts of the Cleveland Reserve Bank likewise in
creased from 73 to 81 millions in the four-week period.
Acceptances and Government security holdings fell from
45 to 34 millions and from 33 to 30 millions respectively,
and total bills and securities decreased from 151 to 146
millions.
sag, the New York Times average reaching the lowest
point since last August.
Member Bank Credit. Between January 23 and Feb
ruary 20 collateral loans o f weekly reporting member
banks showed a moderate increase while “ all other”
loans also increased somewhat.
Investments declined,
but total loans, discounts and investments showed
a slight gain.
Both demand and time
deposits
were lower. Loans to brokers, however, as shown by
New Y ork reporting member banks, increased during the
four weeks ending February 20. On January 23 these
loans totaled $5,443,000,000, and by February 6 they had
reached a new high o f $5,669,000,000. From this point
there was a drop to $5,477,000,000 on February 20. The
reduction in bank loans to brokers was even larger, but
was partly offset by an increase in loans fo r the account
o f “ others” .
Savings deposits of 66 banks in this District were
$1,054,331,835 on February 1. This was a gain of 6
per cent fo r the year but a loss o f 0.5 per cent for the
month.
In the Fourth District, both collateral loans o f re
porting member banks and “ all other” loans rose, but
investments declined slightly. Total loans and investments
were a trifle higher. A moderate decrease in demand
deposits was almost balanced by a gain in time deposits,
but total deposits declined slightly. As compared with a
year ago, both collateral and "all other” loans are larger
while investments are smaller. Total loans, discounts and
investments of reporting members amounted to $2,194,000,000 on February 20 as compared with $2,135,000,000 a
year earlier.
Total deposits likewise increased from
$1,984,000,000 last year to $2,006,000,000 this year.
Security Prices. During the first week in February the
Dow-Jones industrial stock average advanced to a new
high o f 322.06, but a sharp reaction brought this average
Debits to Individual Accounts
A kron.....................
Butler, P a..............
Canton...................
Cincinnati..............
Cleveland...............
Columbus...............
Connelsville, Pa. . .
Dayton...................
Erie, P a..................
Franklin, Pa..........
Greensburg, P a .. . .
Homestead, Pa. . . .
Lexington, K y .......
Lima.......................
Lorain.....................
Middletown...........
Oil City, Pa...........
Pittsburgh, P a. . . . .
Springfield..............
Steubenville...........
Toledo....................
Warren...................
Wheeling, W. Va . .
Youngstown...........
Zanesville...............
Total...............
(In thousands of
4 weeks
%
ending
change
Feb. 13,
from
1929
1928
$108,352
+ 22.6
+ 22.6
10,835
51,249
+ 25.9
442,337
+ 0.7
807,592
+ 1 4 .4
166,466
+ 1 3 .6
3,273
— 3.3
88,810
+ 1 0 .6
34,607
+14.8
4,806
+ 10.8
18,318
— 0.3
+ 3 2 .6
4,584
41,211
+18.1
16,307
+ 3 0 .4
5,218
+ 1-7
10,603
— 6.3
16,224
+ 1 9 .6
1,053,363
+15.1
21,968
+ 1 7 .0
11,165
+ 2 2 .4
— 13.6
198,056
13,538
+ 8.3
47,031
+ 9.8
+ 1 3 .0
66,882
11,791
+ 4.0
3,254,586
+10.5
dollars)
1929 to
date (Dec.
26-Feb.
13)
$221,778
22,558
108,103
933,061
1,767,171
370,288
6,871
206,228
69,701
9,684
37,709
8,428
77,622
34,875
10,689
23,275
33,295
2,072,237
51,531
22,468
495,746
27,155
101,783
155,317
25,027
1928 to
date (Dec.
28 to Feb.
15)
$195,759
19,854
90,904
920,538
1,654,951
320,969
7,125
181,454
61,798
10,030
40,881
7,173
66,090
29,738
10,571
25,340
27,996
1,839,451
42,236
19,793
501,990
25,342
90,077
132,240
23,870
%
change
from
1928
+13.4
+ 13.6
+ 18.9
+ 1.4
+ 6.8
+ 15.4
— 3.6
+ 13.7
+12.8
— 3.4
— 7.8
+17.5
+ 17.4
+17.3
+ 1.1
— 8.1
+ 18.9
+ 12.7
+ 22.0
+13.5
— 1.2
+ 7.2
+ 13.0
+ 17.5
+ 4.8
6,892,600
6,346,170
+ 8.6
down to 301.53 on February 8. An irregular recovery sub
sequently set in, characterized by a considerable reduction
in the volume o f sales, and by February 21 the average had
advanced to 310.06. Meanwhile bond prices continued to
Debits, Savings, Failures. Debits to individual account
at 13 large centers in the Fourth District aggregated
$3,027,591,000 in January, as against $3,335,466,000 in
December and $2,796,099,000 a year ago.
Commercial failures in the Fourth District numbered
196 in January, as compared with 134 in December and
269 a year ago, according to Dun and Company. Liabilities
totaled $4,636,425 in January, $1,393,859 in December,
and $5,995,461 a year ago. In the United States there
were 2535 failures in January, 1943 in December
2643 in January o f 1928.
MANUFACTURING, MINING
Iron and
Price increases on important finished
steel products came in February as the
sequel to the record-breaking produc
tion o f both pig iron and steel ingots in January. On
heavy steel, including bars, plates and shapes, the advance
was $1 per ton, and on hot and cold rolled strip and sheets*
excepting the higher finishes, $2 per ton. These increases
were specified fo r the remainder o f the first quarter, with
second quarter levels not determined.
Steel
Though Chicago, as usual in the early months of the
year when rolling o f track material dominates, leads all
districts in production, the Mahoning Valley has been a
close second.
Through January and the first h a lf o f
February, steelmaking was at practical capacity. Some
finishing departments were handicapped by lack o f semi
finished steel.
This condition resulted largely from automotive indus~
try specifications which, while spotty as to consumers, Were
the heaviest for the season considered in the aggregate.
Capacity for the higher sheet finishes fo r the entire first
quarter was fully engaged by the middle o f February.
A slightly modified version o f this situation characterized
the strip industry. Bar requirements, including soft sted,
cold finished, forging and alloy, o f the automotive industry
pressed heavily upon makers at Pittsburgh, Youngstown
and Cleveland.
Pig iron presented a contrast in the Pittsburgh and
Youngstown districts to the strong situation in steel.
Buying was moderate and specifications good, but the
price situation has indicated weakness. For one thing,
steelmakers again evidence interest in this market, as their
pig iron capacity exceeds their semifinished steel requirements even when the latter are at capacity. The
furnaces, however, have been pressed to ship to automotive
foundries.
When January recorded a daily steel ingot rate of
166,274 tons and a total o f 3,700,939 tons it exceeded
any January on record. Provided production in February
carries on the rate o f increase which January manifested
over December, which was 4 per cent, February not only
will set a monthly ingot rate but also exceed even the
all time record o f last October. Pig iron production fft
January, at 110,736 tons as the daily rate and 3,432,882
THE MONTHLY BUSINESS
8
REVIEW
tons as the month’s total, also was at a peak fo r that
month. On January 31, stocks in blast numbered 202, or
four more than a month previous, thus assuring still
heavier production at the opening o f February.
amounted to 984,999,112 pounds, as compared with 966,191,508 in 1927. Owing to price differences, the value o f
the 1928 imports was only $246,610,000, as compared with
$342,534,000 in the previous year.
A firm price situation, with the trend slightly upward,
is manifest in the Iron Trade Review composite o f fou r
teen leading iron and steel products. In the first two
Weeks o f February this index stood at $36.25, compared
with an average of $36.24 fo r January and $36.22 fo r
December. Last February this index was at $35.62.
Of the total amount o f rubber consumed in the United
States in 1927 (the latest date available), the tire industry
took 82 per cent. The next largest consumer was the boot
and shoe industry, which took 6.4 per cent o f the total.
Cool
Slow improvement has taken place in
this industry.
In spite o f gradually
increasing production during the past
few weeks, prices have held steady, owing to an increase
in demand. Cold weather has brought domestic purchasers
into the market, and diminishing stock piles has aided
industrial demand. The “ Coal A g e ” weighted average
price o f bituminous (spot, mine) was $1.85 per ton in
January, about the same as in December.
Industrial stocks on hand finally decreased to 32 days'
supply on January 1, the lowest since October, 1926. This
compares with a peak o f 56 days' supply in April, 1927.
With stocks relatively low, increased public demand, and
improving conditions in union territory, the outlook fo r
the trade is reported to be somewhat more promising than
hitherto, although depression still exists. '
Soft coal output in the Fourth District amounted to
187,460,000 tons in 1928, as compared with 195,950,000
in 1927. Pennsylvania produced 124,720,000 tons, Ohio 15,095,000, and Eastern Kentucky 47,465,000 tons.
Rubber
and Tires
Akron tire manufacturers report that
business as a whole is running ahead o f
last year with production considerably
larger but with prices received lower. Demand fo r tires
as original equipment remains excellent, but dealer de
mand has been hesitant, with Spring-dating orders com
ing in rather slowly. February weather has been bad fo r
driving, and the usual Spring buying rush by consumers
has not yet started.
Perhaps the most important recent development in the
industry has been the decided rise in crude rubber prices.
A fter hovering around the 18-cent mark fo r several
months, crude rubber finally began to advance in January
and by February 28 had reached 27 cents a pound
(first latex, spot). Continued heavy demand, a decline
of 48,000 tons in world stocks in 1928, and smaller ship
ments from plantations last November and December
than had been anticipated, have been the principal factors
in this price advance.
Price adjustments on a number o f lines were announced
by leading tire manufacturers early in February. These
revisions were mostly downward, although six-ply longwear balloons were increased 2% per cent. Small balloons,
principally Ford and Chevrolet sizes, were reduced from
2% to 5 per cent, and the old-style high-pressure cords,
which are giving way to balloon casings, were cut 2% to
10 per cent. These adjustments have not stimulated
public buying to any extent, being applicable largely to
the dealers rather than to the public.
Imports o f crude rubber into the United States in 1928
Automobiles
Automobile production in the United
States in January amounted to 402,154
cars and trucks, by fa r the largest for
that month on record. The next largest January was in
1924, when 318,589 units were produced— almost 100,000
less than during the past month.
January was the
fourteenth month in history in which an output o f more
than 400,000 cars and trucks was recorded.
In both
1927 and 1928, January output was between 230,000 and
240,000 cars and trucks.
Although no figures fo r February are as yet available,
reports indicate an increase over January in the daily rate
o f operations during the first three weeks o f the month.
Production schedules o f several manufacturers have been
stepped up week by week since the first o f the year, withvirtually no offsetting declines.
Sales throughout the
country have been irregular, with higher-priced cars mov
ing slowly. Bad weather in the Midwest has held back
the demand in that section.
New passenger car registration in 59 Ohio counties was
12,841 in January, according to the Ohio State University
Bureau of Business Research. This figure, representing
over 80 per cent o f the state, was 56 per cent larger than
a year ago. In the eight principal counties, registration
numbered 8581 in January, 9058 in December, and 5365
in January, 1928.
NEW PASSENGER CAR REGISTRATIONS
Eight Ohio Counties
Jan.
January
% change
1929
1928
+80.8
Akron (Summit) ................ 1018
563
+91.6
504
Canton (Stark) ....................
263
+14.2
Cincinnati (Hamilton) ....... 1242
1088
+88.9
Cleveland (Cuyahoga) ....... 2713
1436
+55.7
Columbus (Franklin) .......
987
634
+ 65.5
859
Dayton ( M ontgom ery).......
519
+42.9
783
548
Toledo (Lucas) ....................
+51.3
475
314
Youngstown (Mahoning)....
8581
5365
+59.9
Clothing
Cold weather has helped clothing manu
facturers in this District by stimulating
the demand fo r heavy winter wear.
Otherwise there is but little change from a month ago.
Hand-to-mouth buying continues, with a tendency in some
lines to do away with forw ard purchases altogether. Poor
collections are reported by one manufacturer, while an
other notes a tendency toward consolidations with a conse
quent change in the manner o f doing business.
Retail sales o f clothing in this District in January were
irregular, according to figures from about half the re
4
THE MONTHLY BUSINESS
porting stores. Increases over last year were recorded
by misses’ ready-to-wear, 2.8 per cent; juniors’ and girls*
wear, 18.5; sports' wear, 26.0; aprons and house dresses,
16.8; and men's furnishings, 3.8 per cent. On the other
hand, decreases occurred in women’s coats, 3.0; women's
dresses, 7.8; furs, 18.6; men’s clothing, 18.8; and boys’
wear, 10.9 per cent.
Sales of reporting wholesale dry goods concerns in the
Fourth District were 2.5 per cent less in January than in
the same month o f 1928. As compared with December,
there was a seasonal decline o f 22.2 per cent.
Shoes
Shoe factories in this District are
more active than a month ago. Hide
prices are still very weak, being quoted
at 14% cents a pound early in February as against 17%
cents a month earlier and 23% cents a year ago. Pre
liminary production figures fo r January in the Fourth
District show a loss o f 2.1 per cent from January, 1927,
and a gain o f 34.5 per cent over December.
January sales of reporting wholesale shoe firms in this
District decreased 0.9 per cent from a year ago and 30.5
per cent from December. Retail sales in January in 39
department stores were 2.9 per cent less than last year
in women’s and children’s lines but 28.1 per cent greater
in men’s and boys' shoes.
Other
Manufacturing
Manufacturing in general in this District shows but little change from last
month other than seasonal. Activity is
high for this time of year, with manufacturers fo r the
most part in a confident fram e o f mind. Occasional com
plaint is heard of poor collections.
Cork* January sales higher than last year.
frequent, but fo r small quantities.
Orders
Glass. The present volume o f business is good fo r this
season. Demand for household glassware is about the
same as last month, with certain lines showing a seasonal
increase.
Machinery*. Demand fo r moulding and foundry ma
chinery has been very active. Orders fo r woodworking
machinery are also heavy, being larger than fo r several
months. Business in engineering specialties is excellent.
Machine Tools. A marked improvement is noted in one
line, with sales in general running well ahead o f last
year.
Metal Containers. Business has declined slightly in the
past few weeks. Customers are ordering even more fre
quently than heretofore and expect immediate shipment to
replace stocks which they have allowed to become almost
entirely depleted.
Motor Accessories. The usual reports o f very great
activity have been received— a condition that has now
existed fo r months.
Paint. No great change has occurred since a month
ago, although unfavorable weather has affected outside
work. The situation remains generally good.
Paper. Orders are in fairly satisfactory volume, though
competition continues keen. Customers are still restrict
ing purchases as much as possible to immediate needs.
The country’s total paper production in 1928 was 6,965,951
tons as against 6,762,942 tons in 1927.
REVIEW
AGRICULTURE, LIVESTCjfcCK
The annual inventory o f livestock on farms made as of
January 1 by the Department o f Agriculture indicates,
fo r the country at large, fewer hogs on hand than a
year ago, more sheep, and about the same number of
cattle. The number o f horses continues to decline as it
has fo r the past few years, being now at the lowest
point in 40 years. The immediate outlook o f the cattle
industry appears favorable, prices having advanced for
a considerable time past.
Livestock on Ohio farm s on January 1, 1929, had an
estimated value o f $218,777,000, an increase o f more than
3 per cent over the total value one year ago. The fol
lowing table shows the principal changes in the number
and value o f livestock on Ohio farm s:
4
Horses and colts ...........
Mules and colt3 ...............
All cattle and calves.......
Milk cows, 2 year...........
Sheep ..................................
Swine ................................
Number
Value
Value
(Thousands)
Per Head Total (000 omitted)
1929 1928
1929
1928
1929
1928
520
542 $105.00
$101.00 $54,606 $54,806
82
00
101.00
103.00
3,237
3 404
1,640 1,614
71.30
64.30 116,903 lOOTS
908
917
93.00
83.00
88,444 76,111
----2,154 2,132
9.00
8.90
19,389 19,025
2,146 2,439
11.50
12.60
24,642 80,643
The area planted to winter wheat in the United States
in the fall o f 1928 is estimated at 43,228,000 acres, or
8.6 per cent less than the acreage planted in 1927 for
1928 harvest. Decreases in plantings were reported in all
but six o f the important winter wheat states.
Winter wheat sown in Ohio last fall is estimated at
1,872,000 acres or 22 per cent less than the year before.
Due to dry weather early in the Fall some o f the wheat
was seeded rather late and made a poor start. Late rains
improved this situation to some extent, but the condition
o f the crop on December 1, the latest date available, was
only 84 per cent compared with 96 on December 1 of
1927 and 86, the ten-year average.
The Bureau o f Labor's index of agricultural prices
rose from 103.6 in December to 105.9 in January and
compares favorably with January of 1928, when it stood
at 106.1. The rise is quite significant in view of the fact
that the Bureau's index o f non-agricultural prices only
rose from 94.8 in December to 94.9 in January.
Production o f Principal Crops
Corn (bu.) ............
Winter wheat (bu.)
Spring wheat (bu.)
Oats (bu.) .............
Tobacco (lbs.) .......
Potatoes (b u .).......
(000 omitted)
Fourth District
United States
Estimated
Estimated
Yield
Yield
Yield
Y ield
1928
1927
1928
1927
174,381 150,299 2,839,959 2,763,093
12,981
33,750
578,964
552,747
164
114
323,785
325,627
106,377
78,328 1,449,531 1,182,594
119,120
81,287 1,373,501 1,211,909
23,511
21,490
462,943
402,741
Principal Crops of States Wholly or Partly in the
Fourth District
Corn
(bu.)
....’28
’27
Wheat ( b u .) .....>28
’27
(000 omitted)
Ohio
Pa.
136,725
50,037
109,720
50,165
9,331
17,066
28,980
20,165
Ky.
66,638
75,010
920
2,812
W . Va.
16,524
14,774
1,586
1,796
the
Oats (bu .).......... ’28
’27
Potatoes (bu.)....,28
’27
Tobacco (lbs.)....’28
’27
Tame hay (tons) ’28
'27
Apples (bu .)..... ’28
’27
Peaches (bu.)....’28
’27
Pears (b u .)........ >28
*27
Grapes (tons)....’28
’27
89,281
60,800
12,054
12,180
33,440
24,652
3,698
5,152
5,880
5,600
1,742
1,326
395
250
29
20
34,678
39,600
31,980
26,400
49,580
46,240
4,645
5,063
8,460
6,300
1,867
947
620
400
23
15
m onthly
7,930
4,085
5,985
4,732
306,000
202,269
1,644
1,871
5,700
720
1,035
180
116
34
1.2
.6
b u s in e s s
5,712
5,251
7,500
5,876
5,100
3,488
1,182
1,259
8,750
5,000
810
202
63
12
1.4
.7
The selling season fo r burley tobacco
is now virtually over, and interest is
shifting to the probable acreage fo r the
1929 crop. No official estimates are available as yet, but
private estimates received by this bank from dependable
sources indicate a disposition upon the part o f burley
farmers to increase their acreage over last year. These
stimates are in no way forecasts, representing merely a
cross-section o f the present feeling among growers.
The last part o f the selling season was characterized
by a sudden drop in prices. Earlier in the season prices
attained remarkably high levels and the greater part of
the crop was sold at these prices; but about February 1
some o f the largest buyers dropped out o f the market,
having filled their requirements, and weakness quickly
developed, quotations declining from 7 to 10 cents a pound
from the 35-cent level obtaining in mid-January. The
quality o f leaf being offered has not deteriorated to any
material extent, as has sometimes been the case in the
past toward the end o f the selling season, so that the price
weakness is attributable mainly to lessened demand.
Up to February 2, sales o f all burley amounted to some
227,000,000 pounds at an average of $32.73, it being
estimated that about 33,000,000 pounds remained to be
sold. The Department o f Agriculture estimates the farm
value o f Kentucky's entire tobacco crop at $72,893,000 in
1928 as compared with $43,349,000 in 1927. Final pro
duction figures show 306,000,000 pounds o f all types pro
duced in 1928 as against the short crop o f 202,269,000
in 1927.
noted in Youngstown, Canton, Ashtabula, Newark, and
several others.
Cleveland permits were slightly lower,
while increases occurred in Pittsburgh and Cincinnati.
Orders fo r building tile from the New Y ork area are
heavier than in some time, but no change is reported from
the midwest. Inquiries from public utility corporations
have increased.
Cement production in Ohio, W estern Pennsylvania and
W est Virginia amounted to 818,000 barrels in January
as compared with 752,000 last year. Shipments, however,
were smaller, so that stocks on hand on February 1 rose
from 2,903,000 barrels last year to 3,249,000 barrels this
year.
The Aberthaw index o f building costs remained un
changed in February at 190.
Building Operations
Tobacco
BUILDING
Contrary to the trend in the country as a whole, Janu
ary building contracts awarded in this District showed a
gain over last year. This increase, amounting to more
than 100 per cent, was entirely in non-residential build
ing, as residential contracts awarded were only $11,303,000 this January as compared with $12,803,000 a year
ago.
Total contracts were $54,680,000 this year and
$26,403,000 last year.
A large increase in industrial
buildings in Western Pennsylvania was an important
factor in the gain fo r all contracts.
Building permits showed up less favorably, 27 large
cities in the District recording a drop o f 13.5 per cent in
January permits as compared with a year ago. About
half of the cities shared in the decrease. There were sev
eral notable gains, but particularly large declines were
6
r e v ie w
(Valuation of Permits)
Akron...................................................
Ashtabula............................................
Barberton............................................
Canton.................................................
Cincinnati...........................................
Cleveland.............................................
Cleveland suburbs:
Cleveland Heights..........................
East Cleveland...............................
Euclid..............................................
Garfield Heights ...........................
Lakewood........................................
Parma..............................................
Rocky River....................................
Shaker Heights...............................
Columbus............................................
Covington, K y....................................
Dayton................................................
Erie, Pa...............................................
Hamilton.............................................
Lexington, K y....................... ..........
Lima....................................................
Newark................................................
Pittsburgh, Pa.....................................
Springfield .........................................
Toledo..................................................
Wheeling, W. V a................................
Youngstown........................................
Total............................................
January,
1929
873,108
2,054
21,000
122,100
1,660,035
2,43 3,575
January,
1928
657,088
23,030
24,226
579,173
I,109,640
2,556,450
change
from 1928
+ 32.9
— 91.1
— 13.3
— 78.9
+ 49.6
— 4.8
107,800
7,147
106,500
89,000
716,500
73,240
79,000
257,000
675,500
27,200
701,779
633,445
39,341
305,000
36,400
5,100
1,245,380
175,100
915,944
81,762
260,150
406,685
132,290
97,840
80,500
198,875
147,970
62,048
412,500
986,400
66,400
578,998
110,040
68,625
61,685
19,215
16,725
1,225,109
86,565
1,304,256
78,179
644,190
— 73.5
— 94.6
+ 8.9
10.6
+260.3
— 50.5
+ 27.3
— 37.7
— 31.5
— 59.0
10,156,160
II,734,702
— 13.5
+
+
21. 2
+ 475.6
— 42.7
+ 394.4
+ 89.4
— 69.5
+ 1.7
+ 102.3
— 29.8
+ 4.6
— 59.6
TRADE
Retail
Trade
Sales of 63 department stores in this
District were 2.5 per cent larger in
January than a year ago, the difference
being accounted fo r by the fact that there was one more
selling day this year.
Several cities, however, made
larger gains, particularly Akron with 23.8 per cent and
Toledo with 10.5 per cent. Cincinnati, Cleveland, Colum
bus, and Youngstown also reported increases over last
year.
Pittsburgh showed a decline o f 6.1 per cent,
Dayton o f 2.5 per cent, and W heeling o f 1.6 per cent.
Stocks on hand on January 31 were 1.5 per cent less than
last year and 7.9 per cent smaller than a month earlier.
Accounts receivable at the end o f January were 3.8 per
cent larger than a year ago, while collections were 0.2
per cent less. In January, 38.8 per cent o f receivables
on December 31 were collected.
Sales of 16 wearing apparel firms were 3.3 per cent
larger in January than a year ago. Cleveland and “ other
cities” showed increases, while a drop occurred in Cin
cinnati.
Stocks declined 10.5 per cent, receivables in
creased 8.2 per cent, and collections were up 2.1 per cent.
Sales o f 48 retail furniture stores in the District were
0.2 per cent larger in January than a year ago. Gains o f
6
THE MONTHLY BUSINESS REVIEW
4.8 and 2.7 per cent also occurred in accounts receivable
and collections. January collections were 10.9 per cent of
December 31st receivables.
January, 1928; stocks were 1.5 per cent less; receive
0.1 per cent larger; and collections, 10.1 per cent
The collection percentage on December 31 accounts
^
Nineteen out of 50 separate departments in 39 retail
stores in this District showed gains over last year. Per
centage changes in sales o f the principal departments
were as follows:
39*2'
f
Shoe sales registered a decline o f 0.9 per cent
last year, and stocks of 12.4 per cent. Collections
off 11.5 per cent, and accounts receivable 7.2 per
The collection percentage was 28.0.
m
Silks and Velvets
Woolen and Cotton Goods
Linens
Toilet Articles, Drugs
Silverware, Jewelry
Millinery
Gloves
Knit Underwear
Silk and Muslin Underwear
Infants' Wear
Women’s and Children’s Shoes
Women’s Coats
Women's Dresses
Misses’ Ready-to-Wear
Juniors’ and Girls’ Wear
Aprons, House Dresses
Furs
Men’s Clothing
Men’s Furnishings
Boys’ Wear
Furniture
Rugs
Draperies, Lamps, Shades
House Furnishings
% change from
January 1928
— 28.2
— 9.6
—
Departmental
Sales, 1924-1928
The table below shows the increase ^
decrease in department store sa^eSjialj,
cording to various classes o f mere
dise, from 1924 through 1928. The index n u m b e r s ^
based on the sales figures of 53 leading retail ** glJt
in the Fourth District, including thirty-nine depart ^
stores, twelve wearing apparel firms, one furniture
^
and one shoe store. Departmental sales fo r
firms are available fo r each month throughout the
^
year period, so that the figures are strictly com£*r ^gn
Sales o f hosiery have increased faster since 19 ^
any of the other 36 departments shown, with infants
^
ranking second. In general, the clothing and c
accessory lines have done better than the rest, a
men’s clothing has proved a conspicuous exception.
most pronounced decline fo r any group has taken
in the yard-goods departments, a steadily declining
^
throughout the entire period being shown by
ye\ve&
and cotton dress goods while sales o f silks and ve
have been decreasing since 1925.
BETA**'
2.8
+ 7.7
— 9.3
—
6.8
1.8
+ 0.5
— 16.9
— 0.04
— 2.9
— 3.0
— 5.5
—
+ 2.8
+18.5
+16.8
— 18.6
— 18.8
+ 3.8
— 10.9
— 16.3
— 15.7
— 5.5
—
6.1
Wholesale
Trade
January grocery sales o f 43 firms were
per cent larger than a year ago,
and were also larger than in the same
month o f 1927 and 1926. Stocks decreased 5 per cent
from last year, accounts receivable were 0.4 per cent
greater, and collections gained 3 per cent. Collections
during January on receivables on December 31 amounted
to 67.2 per cent. The stock turnover rate was .60 or 7.2
times a year.
Drug sales showed a noteworthy increase of 25.4 per
cent over last year. Receivables and collections increased
11,3 and 22.7 per cent respectively. In January, 91 per
cent o f December 31st accounts were collected.
In dry goods, sales decreased 2.5 per cent from last
year, stocks were 22.1 per cent less, receivables gained
1 per cent, and collections were up 7.1 per cent. The
percentage o f January collections to December accounts
was 43.4, and the stock turnover rate was .33 or 3.96
times a year.
Hardware
sales were
0.1 per cent smaller than
in
INDEX NUMBER OF SALES BY DEPARTMENTS OF 53
STORES IN THE FOURTH DISTRICT
(1924= 100)
1928
1927
1926
142.4
136.0
121.5
Hosiery .............................................
Infants’ Wear ..................................
133.1
129.2
130.5
120.3
lljj*'
Juniors* and Girls’ Wear ..............
Leather Goods ................................
127.0
120.8
120.5
118.7
Books ...............................................
Men’s Furnishings ......................
H8.6
114.3
JJo ?
Knit Underwear ..................... ..
116.0
115.3
Women’s Shoes ..............................
115.1
115.3
H4.6
111.1
llj.«
Gloves .............................................
Misses' Ready-to-Wear ................
114.5
109.4
JJJ**
Boys’ Wear .....................................
n o .o
112.7
lJJ'J
Muslin and Silk Underwear .........
109.3
109.5
Women's Dresses ..........................
109.0
115.0
Toilet Articles, Drugs ..................
108.1
105.2
Men’ s and Boys’ Shoes ................
107.4
109.6
Handkerchiefs ..................................
106.5
105.2
J®5.»
Draperies, Lamps ..........................
105.3
107.8
Neckwear ............. ..........................
102.9
102.6
11“ *'
Furs ...................................................
101.2
119.4
J2®-*
Millinery ..........................................100.6
99.5
MS'S
Women’s Coats ................................
98.3
100.8
Luggage ........................................... 96.5
98.1
Notions ............................................. 96.4
99.9
Musical Instruments ......................
93.3
108.6
China, Glassware .............................92.8
95.6
JyJ
Floor Coverings .............................. 92.0
92.9
Furniture ..........................................
90.3
100.2
102.1
Corsets ............................................. 88.6
89.0
Domestics ..........................................87.9
91.0
102.8
Linens ...................... 86.5
94.7
1°2*1
Men's Clothing ...............................84.8
90.6
97.1
House Furnishings ...................... .83.1
85.1
89-8
Silks and Velvets .......................... 81.7
96.5
108.5
Art Goods ..........................................79.4
86.5
91-5
Cotton Dress Goods ...................... 68.5
72.7
Woolen Dress Goods ....................... 41.3
53.8
$5.8
Women’s Suits .............................. 28.4
34.1
28.8
jyj.1
ll* ’fi
9JJ*10{*
10&**
t
10J«*
10**J
l0J*J
lOf'J
10|*J
*
ljj®*10?*a
jo*.*
W
U**}
9*1
J fJ
9J.J
llj*£
9O.J
fJ'J
7
THE MONTHLY BUSINESS REVIEW
Fourth District Business Statistics
(All figures are for Fourth District unless otherwise specified)
Jan.
an.
1928
I,929
<ShP^ aaU(26bank,)
'»« Failures — Number
+ 7.4
Thousands of dollars
+ 5.9
+ 2.7
+ 5.0
— 27.1
— 22.7
+ 5.1
+ 2 6 .9
+ 2.5
+ 2.5
+ 0.2
+ 1 0 .0
— 2.5
— 0.1
+ 2 5 .4
— 13.5
+107.1
— 11.7
+ 2 0 .2
+ 12.5
755,268'
278,576*
1,033,844*
1,993
49,000
37,183
1,257,514
308,040
20,789
13,687
78,868
27,623
23,221
20,883
246,646
654,483
213,155
37,838
49,853
701,022*
257,842*
958,864*
2,024
52,765
37,359
1,186,792
310,318
21,209
13,412
77,674
26,995
24,556
20,194
250,900
673,355
232,453
36,271
43,397
+ 7.7
+ 8.0
+ 7.8
— 1.5
— 7.1
— 0.5
+ 6.0
— 0.7
— 2.0
+ 2.1
+ 1.5
+ 2.3
— 5.4
+ 3.4
— 1.7
— 2.8
— 8.3
+ 4.3
+ 1 4 .9
350,617
51,537
16,0502
818
1,252*
1,977*
205,646
26,082
14,0252
755
1,2182
1,8903
+70.5
+ 9 7 .6
+ 1 4 .4
+ 8.3
+ 2.8
+ 4.6
— 2.1
+ 21.2
+ 59.9
3,827,260
530,890
185,707
18,294
13,652
24,231
3
59,077
120,461
34,766
36,959
2,946,601
454,725
195,950
17,311
13,180
23,838
s
48,988
95,958
34,302
36,553
+ 2 9 .9
+ 1 6 .7
— 5.2
+ 5.7
+ 3.6
+ 1.6
— 7.4
+ 2 0 .6
+ 25.5
+ 1.4
+ 1.1
Actual Number
Thousands of dollars
^ inS '° .r' * - ( 6 3 fir m .)
-■
Dry Goods (12 firms)
Hardware (16 firms)
Jn8 Perm;,.
<13 §£m$X
“ "iW iol C o n ? '1' ’ V » « t i o n - 2 7
+ 4.0
3,435
737,333
266,417
1,003,750
269
5,995
3,002
86,060
21,284
1,386
740
5,750
1,712
1,605
1,623
11,735
26,403
12,803
2,856
3,991
ie
firms)
- WhoI!?ale Grocery (43 firm.)
-
38,870
3,688
•• '~Furni,°® APP(?r'1 (16 firm.)
«•
40,424
%
change
780,771
273,560
1,054,332
196
4,636
3,155
109,173
21,811
1,421
741
6,327
1,670
1,603
2,035
10,156
54,680
11,303
3,433
4,489
of
" D e o t j ; ranctv-O h io and Pa.
•« - W
Year
1927
dollars
Millions
(S >'bV0ii)“d of month)
Year
1928
%
change
c iii«
|>r , “
f,ract* — Total, 4th District
,Qctio n __to- *— Residential, 4th District
“
a
Iron, U. S.
H 5 tcel InSot«, u. S.
^-Automobiles, U. S.
Actual Number
•<
£*M*nKer Cars
Truck*
Thousands of tons
'*
" ‘ luminous Coal, 4th District
“
“ barrels
"C em en t: Ohio, W. Va., Wn. Pa.
Millions of k.w. hrs.
r * Iectric Power: Ohio, Pa., Ky.
Thousands
of
barrels
CLtro*eum: Ohio. P«-> Ky.
“
“ pairs
^Sj£oes, 4th District
“
“
casings
jj.e&istrati0-^vrire«* U. S.
lr-!ttlainoii. n
^ Passenger Cars: 8 Ohio Counties Actual Number
ixumDci
® Ore
°.al Shipments (from Lake Erie Ports) Thous. of tons
V
eai-Iv ACipta (at Lake Erie Pom)
t>ccemkAvera*e-
3
5,037*
8,581
3
4,155
5,365
m°erluminary.
*Prfy " '? Confidential.
Fourth District Business Indexes
Retail and Wholesale Trade
(1929 compared with 1928)
SALES
Jan.Akron RTMENT STORES (63)
Jan’
te 'v :::;:;;;:;;:;;;:::
iV ,
^tsburVh •..............................
—25
:
+10 J
+
\l
....... +"
f e f i c - - :::::::::::::::::::
f e
*
Percentage
Increase or Decrease
COL
LECTIONS
STOCKS
Jan.JanJan.
Jan.
+ io " 4
+ 3.1
+ 7.9
— 0.2
— 0.2
— 12.6
— 12.7
— 10.4
+
+
+
+
..........
t!S :I
+ 0 ’
— '7.3
2.4
0.6
4.3
2.1
+ 0.1
+ 12.1
— 16.2
+ 3.1
+ 13.6
— 2.2
+ 2.7
± ''- I
± iU
, , . .....................
+ 13.8
+ S5.7
’
l
+
+ 0.4
+ 29.1
+ 4.3
— 7.2
+ 4.2
+ 4.6
— 2.8
— 6.6
— 9.6
— 13.1
— 4.7
— 1.5
ikron. 5Ai-E GROCERIES (43)
oNniutj................................
{ S u S ? * ......................................
f e v . . .................................
+ 81
+ 10.5
+15.9
fe -:::::::::::;::::::
t& l
^SSLESA i’I d r y GOODS ( 12)
w S S l e s a i 'I 2 ? y s s ^13) .......
— '2.5
— '5 .0
— 22.1
rS;J
— 'l.S
— 12.4
T S ^ ® S B r< K ?“?
Per in<*<Wdual u nit op erated .
+ 25-4
+ 3.0
+ 7.1
+ 22.7
+ 10.1
— 11.5
(1923-1925 = 100)
. an.
h929
136
Bank Debits (24 cities).. •••• ---134
C o m m e r c i a l Failures (Number).. , .
105
“
(Liabilities)...
122
Postal Receipts (9 cities). . . . . ........
130
Sales— Life Ins. (Ohio and Pa.).......
85
“ — Dept. Stores (52 firms).........
130
“ — Wholesale Drugs (13)..........
69
“ —
“
Dry Goods (12). .
90
“ —
“
Groceries (4 3 )....
75
“ —
“
Hardware (16). . .
87
All (88)f ..............
81
“ — Chain Drugs (3)**.................
115
Building Contracts
Total. . . . . . . . . .
66
“
“
— Residential........
89
Production-Coal (O., W. Pa. E. Ky.j*
— Cement (O., W. Pa., W. Va.)
68
107
“
— Petroleum (O., Pa., Ky.)*
149
“
— Elec. Power (O., Pa., Ky.)*
102
“
—Shoes............................
♦December.
**Per individual unit operated,
flncludes 4 shoe firms.
Jan.
1928
127
184
136
116
103
83
104
70
82
75
80
82
55
74
78
63
Jan.
1927
126
151
69
118
103
83
109
67
81
82
82
94
94
79
102
102
145
105
140
92
122
47
Jan.
an.
1926
926
122
J an.
1<925
167
127
111
91
84
103
73
85
82
84
96
63
70
113
44
97
" 130
M l 90
112
136
112
105
100
84
101
80
90
89
89
95
72
79
100
64
92
112
95
Banking Operations
FEDERAL RESERVE BANKS
Federal Reserve
Bank o f Cleveland Federal Reserve System
(In Millions)
(In Millions)
Feb. 20 Feb. 21 Jan. 28 Feb. 20 Feb. 21 Jan. 28
1928
1929
1929
1928
1929
1929
267
263
2,681
2,820
2,648
258
Gold Reserves ..................
66
78
866
461
782
81
Discounts ........................
80
46
866
868
464
84
Acceptances ....................
60
83
178
402
202
80
U. S. Securities .............
1,408
1,216
136
161
1,447
146
Total bills and securities
Federal Reserve notes in
1,662
1,692
1,661
201
194
201
circulation ..................
2,861
2,406
2,897
188
189
Total deposits ................
188
REPORTING MEMBER BANKS
Fourth District
United States
(In Millions)
(In Millions)
Loans secured by stocks
7,862
6,610
686
7,448
666
696
and bonds ..................
8,710
8,740
8,616
802
764
804
All other ..........................
16,062
16.188
16,126
1,486
1,429
1,601
Total loans ......................
6,076
6,071
6,991
708
706
693
Investments ....................
1,047 18,269 18,470 18,866
1,063
Demand deposits ........... 1,017
6,886
6,606
6,867
968
928
986
Time deposits .................
Summary of National Business Conditions
By the Federal Reserve Board
^
Manufacturing and mining increased in January and the
February, while building continued to decline. Wholesale com™00. January
rose slightly. Reserve bank credit declined between the middle o ^lance^
and the middle of February, reflecting chiefly a reduction in r e s e r v e
of member banks.
Production
1929
Index number o f production of manufactures
and minerals combined, adjusted for seasonal
variations (1923-1925 = 100). Latest figure:
January* 117.
MONEY FtATES IN NfLWYORK
III
III i
3JT1
Ar
t
, larger
Industrial production increased in January and continued
was
than a year ago. Output of pig iron, steel ingots and automobi
j&rge
record volume for January. The high rate of steel activity re:nec ^ j f0tn
purchases from automobile manufacturers and also increased aern
railroads. Domestic output of refined copper, while continuing
of
volume, was somewhat lower in January than in December. A
gr0up#
textile mills increased considerably in January.
In the mm!L ePtiofla^
output o f copper ^ore, bituminous coal, and petroleum was exc p
large, and anthracite coal and tin also increased.
In the first part of February preliminary reports indicate the ^ a
tenance o f a high level o f industrial activity. Steel plants opera einpj0yhigh percentage o f capacity; the output of coal continued large anahoWever»
ment in Detroit factories increased. The production of petroleum,
declined slightly in the middle of February.
,ntk>
Building activity declined in January fo r the third
reflecting primarily a large reduction in awards fo r r e s i d e n t i a l
while commercial building awards increased somewhat. The value.? iiy lo*?et
contracts let during the first six weeks o f the year was s u b s t a n t i a
than in the corresponding period o f either 1928 or 1927.
<rc/a/Paper
t Bank Discour, Rat*
fane* Rate
___
Monthly rates in the open market in New
Y ork: commercial paper rate on 4-to-6-month
paper and acceptance rate on 90-day bankers’
acceptances. Latest figures are averages of
first 23 days in February
Trade
, the A**
Shipments of^ freight by rail increased during January anu incre»s<j
two weeks of February and were larger than a year ago.
1“ ' coke
during January reflected primarily larger shipments o f coal ana
livestock.
Sales by wholesale firms were seasonally larger ,ini:ned lesS
and above the level o f a year ago. Department store sales dec
than is usual at this season and were considerably larger than m
1928.
Prices
Monthly averages of daily figures for 12 Fed
eral reserve banks. Latest figures are for the
first 23 days in February.
pr*
The general level of wholesale prices rose somewhat in Januaryof grains, livestock and meats advanced, and there were also Prlcefor bu^dj
in steel, automobiles and copper. A decrease in the group index * ck
ing materials reflected reductions in the prices of lumber a
n
a
prices o f pig iron, silk, cotton and petroleum also declined. A
n
raw materials, rubber advanced sharply in price, while silk, cu c0ppe*
hides declined. During the first half of February, the price
ri$e*
advanced to a new high level, and the price of rubber con
i,0gs
Among the agricultural commodities, prices o f wheat, corn and
while sugar and cattle declined slightly.
Bank Credit
in
On February 20 total loans and investments o f member *j^ie JL
leading cities were nearly $90,000,000 smaller than in the
A* ^
January, owing chiefly to reductions in the b a n k s * investment kolcuniB * 1o*1**’
the first week in February, security loans declined, while all o
largely commercial, increased somewhat in February.
ge^
During the five weeks ending February 20, declines in ?*50id
balances of member banks, together with a considerable inflow ox ^ ere Wg
abroad and some further decline in the demand fo r currency*
j
chief factors accounting fo r a decline of $173,000,000 in the
^
reserve bank credit in use. A large decline in reserve bank n
ease
acceptances and U. S. securities was offset in part by a small i
the volume o f member bank borrowing.
^ t
Index of United States Bureau of Labor Sta
tistics (1926 = 100, base adopted by Bureau).
Latest figure, January, 97.2.
Open market rates on bankers acceptances and c o m m
advanced, while rates on collateral loans showed l i t t l e change.
e r c ia l
@FedFRASER