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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. 10
Cleveland. Ohio, May 1,1928
The uptrend in general business in the Fourth Dis
trict, so noticeable in the first quarter, has been less
marked in April. Some seasonal gains have taken place,
but outside of these, conditions are not much changed
from a month ago. As for individual lines, the important
iron and steel industry has maintained its first quarter
pace throughout April, the steel market being supported
principally by automotive demand.
The tire industry
has been adversely affected by the sharp drop in crude
rubber prices.
Building contracts awarded in March
were unusually large, but cold weather in April has
held back some new building. Motor and accessory con
cerns are doing well, particularly the latter. The cloth
ing trade is fair to good, but shoe manufacturing op
erations have quieted down after the excellent showing
of January and February. The coal industry remains
depressed, although demand is slightly better.
Retail
trade showed up very well in March. The winter wheat
crop in Ohio is the worst in forty years.
The first quarter was marked by a real upturn in
business both in this District and in the country as a
whole. The Federal Reserve Board’s index of industrial
production (adjusted for seasonal) rose from 99 in De
116
1IV
.
PRODUCTION ano DISTRIBUTION
1923-25- 100
1
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ii
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I I
n
W
I9t27
line—Weekly index of car loadings.
F. R. B. of Cleveland (1923-1925=100). Latest
figure: Week ending April 14—100.7. Broken
Hn^-Monthly index of industrial production*
F. R. Board (1923*1925=100). Latest figure:
March-110. Both curves adjusted for seasonal
variation.
1928
No. 5
cember to 106 in January and 110 in February, and also
stood at 110 in March. Similar advances took place in this
bank’s weekly index of distribution (see chart above)
and the Annalist's index of general business activity. A
further proof is found in corporation earnings, shown
below; the majority of concerns whose statements have
been published so far report larger net profits than in
the first quarter of 1927, the combined increase for 131
corporations being 10.8 per cent.
As for April, the general distribution of goods was
lower in the first half of the month than in March.
This bank’s weekly index of car loadings (adjusted
for seasonal) averaged 105.7 in March and stood at
105.1 on March 31. For the week ending April 7 the
index declined to 103.5, and the following week it fell
to 100.7.
CORPORATION EARNINGS
First quarter net earnings of 131 industrial corporations
in the United States whose statements have so far
appeared show a gain of 10.8 per cent over the same
period in 1927, and a gain of 11.4 per cent over 1926.
The increase over last year is particularly notable in that
81 out of the 131 concerns, or 61.8 per cent of the total,
showed larger net earnings than a year ago. Most lines
of industry shared in the gain, on the basis of figures
already received. The steel group was an exception, al
though even here 8 out of 14 companies reported in
creases. The following table, although incomplete, fur
nishes a good comparison of net earnings in the first
quarter of 1928 and 1927.
NET EARNINGS OF 131 INDUSTRIALS
(In thousands of dollars)
First
First
No. No.
%
Quarter
Quarter
change Incr. Deer.
1928
1927
$ 9,586
5 Chemicals .......... $ 10,826
+12.9
4
1
13 Food. Packing.... 24,145
23,504
4
+ 2.7
9
2,171
2,279
7 Minins ....------ ...
— 4.7
1
6
10 Motor
69.469
52,651
+32.2
General Motors
1
0
Others _......___ 20,342
15,195
+33.9
7
2
67,746
Total .................. 89,811
+32.6
8
2
4.474
3,542
9 Motor Accessory
+26.3
8
1
6,922
9,384
—26.2
3
7
14 StedL
U. S. Steel........ 21,332
26,327
—19.0
0
1
17,397
Others .............. 14,469
— 16.8
8
5
Total .................. 85,801
43.724
—18.1
8
6
3.435
4 Stores ................
2,829
+21.4
4
0
65,257
59 Miscellaneous
56,664
+15.2
36 23
131 Total .................. 242,842
219,258
+10.8
81 50
..
First
Quarter
1926
f 9.050
22,057
2,193
40,645
21,133
61,778
3.828
16,702
26,075
19.384
45,409
3,228
53.670
217,915
FINANCIAL
Several important financial developments have oc«
curred recently. Commercial loans have increased notice
2
THE MONTHLY BUSINESS REVIEW
ably; brokers’ loans have made a new high; heavy gold
exports took place in March; interest rates are noticeably
higher, and five Federal Reserve banks had raised their
rediscount rate up to April 30th.
Local money rates in mid-April were about the same
as a month earlier, but there was a perceptible harden
ing o f rates in the New Y ork market.
The rate on
bankers* acceptances advanced from 3*A to 3% per cent,
and that on commercial paper from 4Vs to 4 1,4, while
on the stock exchange, time money of various maturities
advanced from 4% -4% per cent to 4% -5. Call money
rose from 4Vz per cent on March 15 to 5 on April 2,
and on April 11 touched 6 per cent. By the 20th, how
ever, it had fallen to 4% , slightly higher than a month
ago. On April 20 the Federal Reserve Banks o f Boston
and Chicago raised their rediscount rate from 4 to 4 x/z
per cent, followed by a similar raise by the St. Louis
bank on April 23 and by Minneapolis and Richmond a
day later.
One o f the notable financial features o f the past
month has been the steady rise in “ all other” loans of
reporting member banks, including commercial loans.
This item was almost stationary throughout 1927, but in
the Fourth District has risen from $766,000,000 on
March 1 to $779,000,000 on April 18, and in the United
States, from $8,672,000,000 to $8,926,058,000. Loans se
cured by stocks and bonds have also increased sharply
since the middle of March both in this District and the
United States, while loans to brokers and dealers in secur
ities in New York made a new high fo r all time on
April 18.
While member bank credit has thus been expanding,
further heavy gold exports have taken place, amounting
to $97,536,000 in March— the largest in one month for
several years. The net loss in the nation’s gold stock
from September 1, 1927, to April 1, 1928, amounted to
$283,000,000. This loss o f gold coupled with expanding
member bank credit has had an undoubted effect in
strengthening interest rates.
The Federal Reserve System continued to sell Govern
ment securities during the first part o f April, holdings
o f the System falling from $383,000,000 on April 4 to
$341,000,000 on the 18th, and of this bank from $47,600,000 to $42,978,000. The loss in Government securities
has been accompanied by an increase in rediscounts, while
acceptance holdings have also gained slightly since the
middle o f March.
Savings deposits of 68 banks in this District amounted
to $1,016,682,461 on March 31, a gain o f 7.1 per cent for
the year and of 0.5 per cent for the month.
Debits to individual account at 13 large centers in
this District were $2,649,641,000 in March, as compared
with $2,659,473,000 a year ago and $2,375,108,000 in
February.
Commercial failures as reported by R. G. Dun and
Company, numbered 183 in March, 186 in February, and
193 a year ago. Liabilities were $8,433,754 in March,
$4,727,509 in February and $4,724,804 a year ago. In
the United States there were 2236 failures in March,
2176 in February, and 2143 in March, 1927.
The follow ing table gives the main changes in the
balance sheets o f the Federal reserve and reporting mem
ber banks:
Federal Reserve
Bank of Cleveland
Federal Reserve System
(In Millions)
(In Millions)
Apr. 18, Apr. 20, Mar, 21, Apr. 18, Apr. 20, Mar. 21
1928
1927
1928
1928
1927
1928 *
Gold Reserves ...................
264
292
248
2,719
3,035
2,776
Discounts ...........................
57
53
57
620
415
477
Acceptances .......................
30
20
29
351
247
333
U. S. Securities ...............
43
37
48
341
333
385
Total bills and securities
130
109
134
1,312
996
1,195
Federal Reserve notes in
circulation .....................
192
209
189
1,582
1,730
1,565
Total deposits ...................
195185
185
2,423
2,300
2,360
REPORTING MEMBER BANKS
Fourth District
United States
(In Millions)
(In Millions)
Apr. 11, Apr. 13, Mar. 14, Apr. 11, Apr. 13, Mar. 14
1928
1927
1928
1928
1927
1928 *
Loans secured by stocks
and bonds ....................... 676
602
653
6,790
5,658 6,526
All other .... ........................
784
783
777
8,968
8,686 8,799
Total loans ..................... 1,460
1,385
1,430 15,758 14,344 15,325
Investments ....................... 733
653
713
6,5925,855
6,538
Demand deposits ............. 1,059
1,050
1,032 13,905 13,059 13,784
954
841
953
6,8246,032
6,701
Time deposits ....................
M ANUFACTURING, MINING
Iron and Steel
Momentum acquired by the steel in
dustry in the opening quarter o f 1928,
when more steel was produced th an
in any quarter in history, has carried it through A p r il
at a higher rate than was anticipated a month ago b y
many observers. As the second quarter wears on and
seasonal factors operate, some markets have b ecom e
spotty and some prices are unsettled, but considering
the record output thus far in 1928 and the fa ct th a t
prices netted by the mills are higher than a y e a r
ago, the general market situation is satisfactory.
April has been a month o f specifying rather than on e
of buying. This condition is not unusual for the opening*
of a quarter.
With the strong upward tendency Qf
prices that marked the first quarter checked, consum ers
lack an important stimulus fo r forward buying, and
the hand-to-mouth tendency is becoming more pronounced.
The important factor, however, is that consumption con
tinues on the high plane o f March.
Automotive production has proceeded in April at a
heavy rate, thereby revealing why automotive dem and
has been the chief support o f the steel market.
The
gradual increase in Ford output is being reflected
both in direct purchases by the company and the co v e r
age by recipients o f Ford parts orders.
Steel bars, moving direct to automotive users or to
cold finishers fo r processing, have led the heavy steel
products. Plate mills have benefited by a moderate in
crease in placements o f oil tanks. Line pipe inquiries
have broadened, arousing hope that diminishing back
logs o f pipe mills in the Mahoning Valley will be length
ened. Eastern railroads have been fair buyers o f track
fastenings at Pittsburgh, but secondary rail buying h a s
lagged. Building steel orders exceed a year ago.
On heavy steel the market seems to have settled t o
$1.85 per 100 pounds (Pittsburgh), a $1.00 per ton a d
vance over most first quarter contracts, although $1.90 is
obtained on small lots. Sheet grades retreated $3.00 p e r
ton when autobody sheets dropped from $4.15 (P it ts
burgh) to $4.00 per 100 pounds:’ Second quarter steel
strip arrangements are based upon first quarter prices o r
$1.00 to $2.00 per ton higher in some cases. On l i n e
pipe the mills have withdrawn discounts amounting t o
$2.00 per ton. Wire products, especially nails, are w eaker
3
THE MONTHLY BUSINESS REVIEW
and $2.65 per 100 pounds (Pittsburgh) on nails has been
shaded $2.00 per ton.
Pig iron has entered the second quarter priced no
higher than the first quarter and indicating occasional
weakness. In the Pittsburgh district steel producers have
borne down on the merchant market by selling their sur
plus metal direct and taking advantage of their fa vor
able freight rates. Bessemer iron has sold at $17.50 per
ton (Valley) and No. 2 foundry iron at $17.25 (V a lley ).
Automotive foundries have taken more iron from the
lake furnaces thus fa r in 1928 than in any similar period.
Coke in the Connellsville district has vacillated, with a
tendency toward a softer market.
Steel ingot production in March, at 4,507,520 tons, com
pared with 4,045,304 tons in February and 4,535,272 tons
last March. The daily rate of March fell only 928 tons
of the record 167,973 tons of March, 1927. The first quar
ter total was 12,544,156 tons, against 12,137,192 tons in
the opening quarter of 1927.
When pig iron reached a daily rate of 103,493 tons
in March it registered the highest point since May, 1927,
but it fell short o f the 112,326 tons of last March. The
March total was 8,962,464 tons, compared with 9,524,057
tons a year ago. Ten more blast furnaces were active at
the end of March than at the close of February.
A fter rising since the first week o f January, the
Iron Trade Review composite of fourteen iron and steel
products reached its zenith the second week o f March.
The extent of the rise was from $35.07 to $35.91. By
the close of April this barometer was down to about
$35.56. The revised average for March is $35.81, com
pared with $35.62 for February and $36.83 last March.
Coal
The soft coal industry in the Fourth
District has been quiet during the past
month. Prices have fluctuated within
narrow limits, following a slight upward trend in March.
Industrial stock piles are still declining steadily, and have
finally reached the point w’here they are not particularly
excessive. Some betterment in demand is reported by
Fourth District dealers in response to increased manu
facturing operations. The underlying factor of excess pro
ductive capacity is still present, however, and depression
continues in the industry as a whole.
Production of bituminous coal in the United States
dropped sharply early in April after holding up well
during March. The daily average rate for the week end
ing April 7 was 1,259,000, as compared with 1,552,000 in
the preceding week and 1,649,000 in the same week a
year ago.
in 1923 and 1924.
In 1925 quotations rose violently,
reaching an average o f over $1.00 during the final quarter.
Early in 1926 a correspondingly abrupt decline took place,
and in 1927 the price ranged between 35 and 42 cents
a pound fo r the most part, with the general trend down
ward in spite o f successive reductions in the amount of
exports allowable.
The most important factor in the
declining effectiveness o f the Stevenson A ct has been
the rapid increase in rubber grown on Dutch plantations,
production in the Dutch East Indies now amounting to
nearly half of the world total.
The announcement on April 4 with regard to the Stevenson A ct resulted in a sharp drop in crude rubber prices.
These had been weak since early in the year, declining
from an average o f 40 cents a pound in January to 33
cents in February and 27 cents in March. On April 4
a decline o f 6 cents took place, the price touching 21
cents, and by the 17th it had slumped further to 17 cents.
Such a price has not prevailed during the last eighteen
years except in the 1921-1922 period.
The effect of the rapid price decline in this District
has been to curtail dealer demand fo r tires. Business
o f Akron manufacturers in April consequently slowed
down to some' extent, and was hardly up to the levels of
the preceding six months. The latest report o f the De
partment o f Commerce indicates that dealers were well
stocked up with tires on April 1, and many of them
were thus in a position to restrict purchases while await
ing further developments in the price field. The following
table shows that with the exception o f inner tubes, deal
ers’ stocks are now considerably higher than in the three
preceding years.
Average Stocks per Dealer in the United States
on April 1st.
1928 1927
1926
1925
Total casings (including balloons) 78.9
70.6
63.9
62.2
35.5
21.9
14.8
Balloon casings (a lon e).... ........... 40.1
Inner tubes ...................................... 121.2 120.9 119.6
102.1
Solid and cushion tires ................ 33.2
24.7
26.6
20.1
World production (net exports) and absorption
(net
imports) of crude rubber in 1927 were as follow s:
Production
India and Burma.............
Sarawak ...........................
British N. Borneo ...........
188,477
55,356
11,321
10,923
6,582
Total British ...............
Java and Madura...........
Sumatra, East Coast.....
Other Dutch E. Indies....
272,659
65,297
77,815
142,171
Total Dutch ................ .
275,283
5,472
8,615
28,782
15,633
British Malaya ...............
French Indo-China .......
Rubber and
Tires
The principal development in this industry during April was the abolition
of the Stevenson Restriction Act,
effective next November 1. This Act, which has been in
effect more than five years, has restricted the amount
o f exports allowed from British-owned plantations to a
varying percentage o f standard production. It was de
signed to aid the rubber-growing industry of the British
East Indies, which suffered disastrous losses in the 19211922 price decline, by securing more stable prices at
higher levels. The average yearly price rose from about
17 cents a pound in 1922 to slightly more than 25 cents
All Other ........................
Grand
Total.................
Automobiles
Absorption
(long tons)
United States .................
United States {Guayule)
United Kingdom ____....
Germany ..........................
France ..............................
Canada .............................
Japan ................................
Russia ..............................
Italy ..................................
Australia ..........................
Belgium ............................
All Other ........................
Grand
Total
...............
398.458
5,019
60,248
38,892
34,274
26,405
20,521
12,018
11,381
9,490
6,491
9,630
632.822
606,474
The automotive industry continues to
improve.
March production in the
United States aggregated 412,825 cars
and trucks as against 394,443 in 1927 and 434,417 in
1926. The first quarter of 1928 showed a gain in produc
tion of 3 per cent over last year.
Another evidence of improvement is found in first
quarter earning statements o f ten automobile companies.
All but two o f these recorded larger earnings than a
4
THE MONTHLY BUSINESS REVIEW
year ago, the increase fo r the group being 32.6 per cent.
Motor accessory concerns whose reports have already
been published also exhibit a gain of 26.3 per cent fo r
the quarter.
Truck and accessory manufacturers in the Fourth
District report a seasonal betterment over the last
quarter o f 1927. Accessory makers are also enjoying
better business than a year ago, while the truck business
is about the same as in 1927 at this time.
Clothing
Retail clothing sales in this District in
March were considerably larger than
last year, possibly because of heavier
Easter buying in March. Wholesale dry goods sales were
not quite as good as a year ago, and manufacturers re
port but little change during the past few weeks.
Nearly all clothing articles shared the gain in sales
over March o f 1927, according to reports from 41 retail
firms in this District.
Women's coats gained 3.8 per
cent; dresses, 3.2; misses’ coats and suits, 9.9; misses’
dresses, 22.7; girls' wear, 15.8; house dresses, 10.5; men's
furnishings, 8.0; hats and caps, 6.7; and boys* wear,
15.9 per cent. On the other hand, men's clothing declined
2.6 per cent, and sports’ wear 5.5 per cent. March sales
o f 13 wholesale dry goods houses were 1.8 per cent less
than a year ago, but the first quarter recorded a gain of
2.6 per cent.
Manufacturers of women’s ready-to-wear clothing report
a seasonal slackening follow ing the Easter season, but
the present volume o f business compares favorably with
a year ago. Makers o f men’s clothing have been prepar
ing for the opening of Fall lines, and salesmen are now
o u t Conditions are not quite as good as last year. Ship
ments o f knit goods were in large volume during the
first quarter, but during April have fallen below last year.
Business in woolen materials is poor, being less than
last year, and the present trend is downward.
Shoes
A fter producing an unusually large
number o f shoes in February, the
industry in this District quieted down
somewhat in March.
Preliminary figures indicate that
March production was 18.5 per cent less than that o f
February, a decrease considerably greater than seasonal.
This is hardly to be wondered at, however, in view o f
the exceptional activity in February. As compared with
March o f a year ago, production was 9.1 per cent less,
but was greater than in March o f 1924, 1925 and 1926.
First quarter output in 1928 was 6.9 per cent larger than
in 1927.
April business has proved somewhat backward on
account of the unseasonably cold weather, according to
Cincinnati manufacturers, but the outlook is considered
promising.
Sales o f reporting wholesale shoe houses in March were
10.7 per cent less than a year ago, but were 38.1 per
cent larger than in February. For the first quarter o f
1928 there was a loss of 12 per cent as compared with
the same period in 1927.
March shoe sales in 41 department stores in the Fourth
District showed gains over last year o f 2.8 per cent in
women’s, 15.9 in children’s, and 18.6 in men’s and boys’
shoes.
Other
Manufacturing
The irregular condition o f business
is emphasized by the reports from a
number of manufacturing lines which
appear below. On the whole, the general trend is s lig h tly
upward but not to the same extent as a month ago.
Agricultural Implements. Business has expanded w ith
the coming o f Spring and is as good as or better than a
year ago.
Boxboard. The present trend is downward and condi
tions compare rather unfavorably both with a month a g o
and with a year ago.
Clay Products. A marked improvement, partly seasonal
has occurred lately, reversing a downward trend extending
through the last two months o f 1927 and January Qf
1928. Orders are now equal to those o f a year ago.
Cork. Foreign competition has proved a retarding
factor. Conditions consequently are no better than in th e
last quarter o f 1927, and are not as good as a year ago.
Electrical Supplies. The present trend is slightly u p .
ward. In some cases business is better than it was a f e w
months ago, but this is not generally true. Prices have
been slightly more stable recently.
Machinery. The demand for engineering specialties h a s
improved considerably since the first o f the year and is
about equal to a year ago. Orders for machine t o o ls
in April exceeded those of March and the present trend
appears to be upward. Business in woodworking m a
chinery is quiet, but is gradually improving.
Metal Containers. March sales were well in excess 0 f
both February, 1928, and March, 1927.
The general
situation is good; stocks in customers’ hands are sm all
and demand continues strong.
*
Paint.
Business is spotty, but in general shows a
betterment over last year. The usual seasonal in crease
has occurred since the first o f the year although cold
weather in April has retarded outdoor work to some e x
tent. Increasing automobile production continues to be a
strong factor, and those concerns which sell largely t o
the motor trade are doing very well. Competition remains
very keen, and some price cutting is reported.
R aw
materials are steady, however, and pig lead has advanced
$2.00 per ton recently.
Paper.
Orders during the first quarter showed a
declining tendency, dropping below production in some
instances, but a slight improvement is evident in April.
Stoves and Ranges. One manufacturer reports a pickup
during the month, and also states that first quarter
business exceeded that o f a year ago. Another reports
no definite trend, the general trend being virtually un
changed from a month ago. Collections have been notice
ably slow.
Watches, Jewelry. Business is about the same as la st
year but is better than a month ago. The present trend
is stationary.
AGRICULTURE
Winter wheat in this District on April 1 had the lowest
average condition in forty years, according to the United
THE MONTHLY BUSINESS REVIEW
States Department of Agriculture. The average condition
of the Ohio crop fell from 96 per cent of normal on
December 1, 1927, to 32 per cent on April 1. The condi
tion a year ago and the ten-year average were the
same, namely 79 per cent. Kentucky wheat on April 1
was estimated at 34 per cent of normal as compared with
90 per cent on April 1, 1927, and 84 per cent, the tenyear average.
Ohio planted 2,324,000 acres o f wheat last fall. Since
no report of abandonment is yet available, no indication
of the number of acres left for harvest in 1928 can be
had. Recent reports from various parts of Ohio show
that the Southern and Southwestern counties are the
hardest hit. It is reported that less than 25 per cent
of the acreage sown in these parts will be harvested this
Fall. In the Northern and Northeastern counties the
crop has definitely improved in appearance during the
past month.
Rye in the District suffered material damage from
winter-kill and on April 1 was only 47 per cent of normal
in Ohio and 42 per cent in Kentucky, the lowest April 1
conditions on record.
Pastures have made slow progress in many parts of the
District and have a condition of 71 in Ohio and 63 in
Kentucky, as compared with 87 and 91 per cent respec
tively a year ago. This has affected the lamb situation
rather unfavorably.
Although there are more lambs
than a year ago, the quality is irregular. In Kentucky
early lambs have suffered a considerable set-back, and the
ewes are in poor condition, due to a dearth of grain
pasture and blue grass.
BUILDING
5
a >eai ago.
lh e increase was all in non-residentiai
building, inasmuch as residential contracts were only
$21,417,000^ as against $24,229,000 in 1927. Owing to the
pool showing made by the first two months, contracts
awarded in the entire first quarter o f 1928 ran 14 per
cent behind the same period last year, the figures being
$131,065,000 and $152,183,000 respectively.
March building permits in 27 cities amounted to $23,514,094, a gain of 2.5 per cent over a year ago. Both
Cleveland and its suburbs recorded substantial increases,
and the same was true of Akron, Cincinnati, Lima, and
Pittsbuigh.
F or the first quarter, the District gained
2.7 per cent over 1927. The largest increases occurred in
Canton, Cleveland, Cleveland Heights, Euclid, Lakewood,
Lima, and Toledo, while the greatest declines took place
in Akron, Ashtabula, Rocky River, Columbus, Erie, Ham
ilton, Lexington, Springfield, and Wheeling.
The Aberthaw index o f building costs remained un
changed at 192 on April 1. This index has varied but
little for several months, but shows a distinct downward
trend since the middle o f 1923.
Lumber
The situation in this line is spotty.
Several manufacturers experienced a
decline in orders in March, while April
has brought improvement in some cases and continued
sluggishness in others. Cold weather during April has
held back new projects to some extent. Uncertainty as
to prices still exists, and a tendency toward over-produc
tion remains evident. Altogether, conditions are only fair
and the general feeling among manufacturers and dealers
in this District is one o f caution.
A fter a comparatively slow start in January and Febru
ary, building contracts awarded in March in this District
reached a figure exceeded only once previously by that
month and only nine times by any month.
The total
for March was $66,820,607, as compared with $56,741,000
A slight improvement is reported in the demand for
softwoods in 1928 as compared with the three preceding
years. In those years, Spring demand was insufficient
to absorb stocks held over from the winter, while this
Spring the market has been firmer than it was during
the Fall and Winter of 1927.
Building Operations
TRADE
(V alu ation
A k ro n .......................
A s h ta b u la ...............
B a rb erton ...............
C a n to n .....................
C in cin n a ti..............
C lev elan d ................
C leveland suburb*
C leve. H e ig h ts ...
East Cleveland .
E u clid ....................
Garfield H eights.
L a k e w o o d ............
P a rm a.............
R o ck y River
Shaker H e ig h t* ..
C olu m b u s...............
C o v in gton , K y ___
D a y t o n ....................
Erie, P a ................
H a m ilto n ................
L exington, K y . . . .
L im a ......................
N e w a rk ............
P itu b u rgh , P a ... .
Springfield.........
T o le d o .....................
W heeling, VV. V a .
Y o u n g sto w n . . . .
T o t a l ........
of
Perm its)
%
M arch ,
1928
$1,895,704
34,560
78,420
289,702
2,986,310
4,144,300
%
change
from
1927
+23. 1
— 24. 3
— 12. 3
— 2. 6
+45. 4
+ 31. 9
529,725
83.738
303.065
300,000
381,227
288,465
142.365
894,325
1,764.200
144,650
601,290
210.235
177.970
105,485
74,050
64,550
5,162,635
60.260
2,112.390
189,968
494,505
+ 2 3 .4
— 55. 3
+ 7 6 .9
+ 10. 5
+246. 7
+ 44. 9
+ 20 .6
+ 74. 7
— 59 6
— 20 2
— 41 .2
— 73 0
— 55 4
— 28 1
+ 43 9
— 23 0
+ 6 5 .8
— 71 4
— 3 3
— 11 .8
— 51 .6
1,384,010
303,903
548,196
546.550
939,362
640,760
280.728
1,816.325
4.064.000
324,350
1.859,165
555,400
327,825
311,425
124,100
93.225
8.863,859
195,295
5,281.638
397,730
1,563,090
1,013,922
302,845
322,690
421.500
254,440
560 346
392,030
1,586.575
7,160.200
316,700
2,186,429
1,192.861
532.500
468.415
93.241
115,918
8,515,034
323.069
3,407,774
639,360
1,703,405
2 .5
51,583,875
50,208,569
23,514.094
.
.
+
J a n .-M a r.
Ja n .-M a r.
1927
1928
$3,797,267 $5,328,366
135.825
65,590
153.838
132,015
765,729
1,094.364
5.074.480
5,981.855
7,262,900
10,070,025
change
from
1927
— 2 8 .7
— 5 1 .7
+ 16 .5
+ 4 2 .9
+ 1 7 .9
+ 3 8 .7
+ 3 6 .S
+ 0 .3
+ 6 9 .9
+ 2 9 .7
+ 2 6 9 .2
+ 14 .4
— 2 8 .4
+ 14.5
— 43 .2
+ 2 .4
— 1 5 .0
— 53 .4
— 3 8 .4
— 3 3 .5
+ 33.1
— 1 9 .6
+ 4 .1
— 3 9 .6
+ 5 5 .0
— 3 7 .8
—
+
8. 2
2 -7
Sales of 60 department stores
were 3.5 per cent larger in March
out o f eight reporting centers
largest— 17.3 per cent— being in
quarter o f 1928, sales were 2 per
same period o f 1927.
in the Fourth District
than a year ago. Five
showed increases, the
Akron.
For the first
cent larger than in the
A ll reporting wholesale lines except groceries sufl’ered
declines in March sales as compared with a year ago.
For the first quarter, grocery and dry goods sales were
up 3.0 and 2.6 per cent respectively, while the other
three lines reported decreases.
Wholesale
Trade Index
On the following page will be found a
table and charts showing this bank’s
revised indexes o f wholesale trade,
now on a 1923-1925 base instead o f a 1919-1923 base as
formerly. The curve fo r the United States on the charts
represents the Federal Reserve Board's revised wholesale
trade indexes, also on a 1923-1925 base.
6
THE MONTHLY BUSINESS REVIEW
DRV GOODS
Revised Index Numbers of Wholesale Trade
Fourth Federal Reserve District
(1923-1925 = 100)
Dry Goods
(13 firms)
116.5
1919— Year
139.1
1920— Year
81.8
1921— January
97.6
February
121.0
March
104.8
April
88.6
May
88.9
June
79.2
July
111.0
August
126.9
September
122.2
October
97.6
November
76.1
December
99.6
Year
88.1
1922— January
86.0
February
100.5
March
84.6
April
85.5
May
82.9
June
72.3
July
112.2
August
120.9
September
125.6
October
112.9
November
95.4
December
Year
97.3
116.3
1923— January
109.1
February
March
125.8
99.7
April
97.7
May
97.3
June
96.4
July
139.6
August
135.2
September
131.8
October
109.9
November
82.4
December
Year
111.8
103.9
1924— January
110.2
February
101.0
March
93.5
April
79.1
May
76.2
June
70.0
July
100.0
August
124.8
September
109.9
October
93.9
November
92.9
December
Year
96.3
79.4
1925—January
90.4
February
March
99.2
April
88.4
May
77.5
June
79.7
July
72.6
August
96.6
September
110.8
October
127.0
91.3
November
90.5
December
Year
91.9
1926— January
72.8
86.2
February
92.3
March
80.0
April
May
80.8
76.6
June
61-8
July
91-6
August
108.7
September
October
111.1
101.6
November
82.7
December
87.1
Year
66.2
1927— January
80.1
February
89-4
March
77.7
April
73.4
May
68.0
June
63.0
July
104.3
August
105.0
September
97-7
October
94.4
November
78.4
December
83.1
Year
69.4
1928— January
February
84.8
March
87.8
♦Includes 4 shoe firms.
Drugs
(14)
82.4
103,4
92.5
85.8
97.8
89.1
82.3
86.4
83.6
85.9
90.3
90.3
86.8
83.6
87.9
84.1
85.7
96.0
82.7
85.4
89.8
82.9
88.4
91.7
94.6
92.9
96.0
89.2
106.1
100.7
110.5
97.6
99.0
97.0
95.5
100.5
98.9
108.0
97.9
92.9
100.4
100.4
98.3
106.5
103.4
96.9
91.6
95.7
94.6
95.0
101.4
92.4
97.6
97.8
101.0
94.0
103.7
103.2
94.9
97.9
100.9
101.1
108.4
111.8
97.7
107.3
101.8
102.7
96.1
119.3
115.3
103.2
105.7
105.5
102.7
112.3
110.9
108.8
111.6
107.8
108.3
99.1
118.8
108.2
102.1
106.3
103.1
106.8
112.6
111.7
106.4
108.6
107.7
102.6
102.5
116.1
Groceries Hardware
(46)
( 16)
126.8
93.9
150.7
111.0
92.8
72.5
94.4
71.5
110.8
96.6
95.5
97.9
95.8
84.0
102.6
84.8
94.7
69.0
103.6
75.1
102.7
81.1
105.4
84.0
97.5
75.9
87.1
61.3
98.6
79.5
78.5
66.5
77.2
62.2
92.6
82.5
80.2
84.5
91.7
91.9
103.5
93.6
92.7
78.9
102.4
91.8
106.0
97.2
107.0
102.7
108.1
96.1
97.8
85.7
94.8
85.3
88.6
88.4
85.9
90.6
95.5
114.9
94.2
117.2
100.4
118.0
108.9
110.9
100.3
99.0
108.0
103.5
114.0
106.4
125.0
118.2
98.9
110.9
96.2
75.8
102.3
103.5
94.7
89.4
93.1
92.8
94.6
100.5
94.6
103.8
97.0
101.7
93.9
92.3
99.9
93.9
97.0
94.5
111.7
108.7
120.3
108.8
102.7
94.4
100.9
88.6
100.0
97.5
90.0
88.8
83.5
95.6
92.0
106.5
89.6
100.1
92.1
99.3
98.3
106.5
97.1
96.0
97.3
89.5
110.2
102.8
117.9
118.3
103.2
96.2
100.9
89.1
97.7
99.1
85.5
82.1
82.7
89.6
93.3
103.9
90.1
95.6
89.8
101.4
99.8
101.5
92.7
98.1
95.4
94.8
111.4
103.0
108.7
111.8
102.3
106.0
95.8
91.7
95.6
98.4
81.5
81.5
79.0
87.2
91.6
107.1
86.5
98.9
89.1
97.6
98.2
98.1
89.6
96.0
95.2
92.5
102.1
102.2
98.8
91.4
92.1
82.3
85.5
93.6
100.2
107.9
98.3
80.1
95.5
74.9
81.5
92.8
AH* (93*
115.2
137.3
86.7
90.7
111.3
98.5
92.4
96.4
86.2
98.6
103.0
104.2
93.4
80.6
95.2
77.1
77.4
93.7
83.4
90.5
96.7
84.8
100.6
106.0
108.6
105.4
95.4
93.3
95.1
92.8
107.6
98.9
103.0
106.0
98.4
U 2 .3
115.2
123.4
107.1
89.8
104.2
95.4
96.8
98.2
97.6
94.7
90.4
92.2
96.3
Ul.6
X98.4
i 4*1
97.1
98.6
8 8.4
97.3
93.4
90.8
96.0
91.9
96.2
109.2
119.4
99.2
97.9
97.3
84.4
86.0
98.9
92.5
92.1
96.6
88.9
95.7
111.1
110.6
103.9
95.1
96.3
! l *«
83.0
97.6
90.3
89.1
93.4
86.6
98.4
104.3
103.6
98.9
89.2
93.0
80.2
8 6.7
th e m o n th ly b u sin e ss re v ie w
1
Fourth District Business Statistics
(All figures are for Fourth District unless otherwise specified)
Mar.
Mar.
%
1928
1927
change
Bank Debits (24 cities)
3,226
Millions of dollars
&o ^ ( M X . > (tnd of month)
737,123
279,560
1,016,682
183
8,434
3,423
117,063
24,827
2,110
1,085
6,962
2,376
1,999
1,968
23,514
66,821
21,417
3,200
4,508
Thou s. of dollars
...................
“
“
“
Actual Number
Thous. of dollars
44 “
44 “
“
44
“
44
i4 44
44
Western Pennsylvania (27 banks)
Total (68 banks)
Commercial Failures — Numbers
'*
**
— Liabilities
Postal Receipts — 9 cities
Sales—-Life Insurance — Ohio and Pa.
. ** — Dept. Stores— (60 firms)
M — Wearing Apparel (17 firms)
— Furniture ( m) firms)
** — Wholesale Grocery (47 firms)
«• _
«♦ Dry Goods — (13 firms)
“
“
“
4 .—
** Hardware — (16 firms)
*• “
*4
M —
M
Drugs
— (14 firms)
...................
Building Permits. Valuation— 27 cities
44
.................. .
Building Contracts—Total, 4th District
„ “
“
— Residental, 4th District
...................
Production — Pig Iron, U. S.
Thous of tons
“
— Steel Ingots, U. S.
44
— Automobiles, U. S.
Passenger Cars
Actual Number
Trucks
44
— Bituminous Coal, 4th Dist.
Thous. of tons
— Cement: Ohio, W . Va., Wn. Pa.
“
44 barrels
**
— Electric Power: Ohio, Pa., Ky.
Millions of k. w. hrs
**
— Petroleum: Ohio, Pa., Ky.
Thous. of barrels
**
— Shoes, 4th District
“
44 pairs
“
— Tires, U.S.
" casings .
Bituminous Coal Shipments (from Lake Eric ports)
44 tons
Iron Ore Receipts (at Lake Erie ports)
*3 months* average.
•February.
Manuary-February.
♦figures confidential
•Preliminary.
371,408
41,417
15,208
851
1,157*
1,891*
4,812*
3,201
+ 0.8
686,608
262,334
948,942
193
4,725
3,432
117,640
23,999
2,070
1,079
6,866
2,420
2,295
2,013
22,938
56,741
24,229
3,483
4,535
+ 7.4
+ 6 .6
+ 7.1
— 5.2
+78. S
— 0.3
— 0.5
+ 3.5
+ 1.9
+ 0 .6
+ 1.4
— 1.8
— 12.9
— 2.2
+ 2.5
+ 1 7 .8
— 11.6
— 8.1
— 0 .6
345,911
48,532
22,431
1,265
1,065*
1,830*
«
3,866*
+ 7.4
— 14.7
— 32.2
— 32.7
+ 8.6
+ 3.3
— 9.1*
+ 2 4 .5
Jan.-Mar.
1928
Jin.-Mar.
1927
9,582
733,931*
274,968*
1,008,899*
638
19,157
9,545
309,044
66,174
5,010
2,878
19,477
6,547
5,351
5,442
51,584
131,065
49.399
8,911
12,544
867,782
100,204
45,512
2.584
2,323*
3,755*
4
8,967*
%
change
9,512
+ 0 .7
679,743*
253.082*
932,825*
575
11,268
9,441
301.398
64,900
5,217
2,785
18,903
6,378
5,912
5,527
50,209
152,183
53,236
9,521
12,137
+ 8.0
+ 8.6
+ 8.2
+ 1 1 .0
+ 7 0 .0
+ l.l
+ 2.5
+ 2.0
— 4.0
+ 3.3
+ 3.0
+ 2 .6
— 9.5
— l.S
+ 2.7
— 13.9
— 7.2
— 6.1
+ 3.4
809,732
128,400
63,536
2,657
2,220*
3,639*
«
7,732*
+ 7.2
— 22.0
— 28.4
— 2.7
+ 4.6
+ 3.2
+ 6.9*
+ 1 6 .0
Index Numbers of Trade in the Fourth Federal
Reserve District
Mar.
Mar.
Mar.
1924
1925
1926
Department Stores (50)*..
104
107
108
Wholesale Drugs (14)** ..
107
104
119
Wholesale Dry Goods (13)*
101
99
92
Wholesale Groceries (46)*
95
92
93
Wholesale Hardware (16)*
101
107
104
Wholesale All (93)**$—
98
97
99
Chain Drugs (3)*t ______
103
100
107
•Base = 'Average monthly sales, 1919-1928.
**Base = Average monthly sales, 1923-1928.
^Includes 4 shoe firms.
fPer Individual unit operated.
Mar.
1927
106
119
89
92
107
98
102
Mar.
1928
109
116
88
94
98
96
97
Debits to Individual Accounts
A k r o n .................
Butler, Pa............
Canton................
Cincinnati............
Cleveland............
Columbus............
Connellsville, Pa..
Dayton................
Erie, Pa...............
Greensburg, Pa...
Homestead, P a...
Lexington, K y....
Lima....................
Lorain..................
Middletown.........
Oil City, Pa.........
Pittsburgh, P a ...
Springfield...........
Steubenville.........
Toledo.................
Warren................
Wheeling, W. Va.
Youngstown........
Zanesville............
Total...............
.(In thousands o f dollars)
4 weeks
1928 to
1927 to
ending
change
date (Dec. date (Dec.
April 18,
28-Apr.
from
29-Apr.
1928
1927
20)
$104,234
+12.0 $414,824 $358,701
9,565
40,718
45,607
— 16.0
54,232
+ 6.3
198,372
192.322
452,772
+ 1 3 .6
1.590 009
1,847,222
807.085
+ 14 3,329,584 3,224.329
168.437
672.026
+ 2.4
679.002
— 19.8
15.761
20.961
J
’9SS
96.725
+ 4.8
387.757
377,505
33,760
137.831
133,173
+ 5.6
18.404
80.891
— 11.3
87,162
3,973
— 0.7
15.838
16.657
19,592
112.494
+ 5.3
113,734
14.913
— 5.0
61.874
59,950
6,109
+ 2.9
22.743
22.444
12,159
+ 25.5
51.744
42,621
15,083
+ 1 4 .6
59,832
62.514
961,682
— 8.1
3,818.083
4,247,226
21.962
— 5.0
88.480
96.049
— 8.6
43.404
43,572
*
267,586
1,063,963
916,154
53,769
14,340
±'\:\
55,338
45,680
188,893
183,270
69,648
273.362
288.463
12,577
— 0.2
49.650
49,800
Mi
3.224.313
+ 1.1
13,031.433
12,904.245
+ 1.0
Retail and Wholesale Trade
(1928 compared with 1927)
or Decrease
PSALE<f*
on L L o
dALE»5 STOCKS
Mar.*
DEPARTM ENT STORES (60)
Akron............................................................... .......+ 1 7 .3
Cincinnati........................................................ ...... + 8.5
Cleveland............................................................... + 7.7
Columbus............................................................... + 6 .0
Pittsburgh....................................................... ...... — 3.2
Toledo.............................................................. ...... + 5 . 7
Wheeling.......................................................... ...... — 1.9
Youngstown.................................................... ...... — 2. 2
Other C ities......... .......................................... ...... + 2 . 6
District................................................................... + 3 . 5
W EARING APPAREL (17)
Cincinnati.............................................................. + 7 . 1
Cleveland............................................................... — 2.0
Other Cities........................................................... + 1 . 8
District............................................................ ...... + 1.9
FURNITURE (50)
Cincinnati.............................................................. — 9.8
Cleveland............................................................... + 5 . 1
Columbus........................................................ ...... — 9.8
Dayton...................................................................+ 5.9
T o l e d o .................................................................+ 16.3
Other Cities...........................................................— 16.7
District............................................................ ...... + 0 . 6
CHAIN STORE*
Drugs— District (3 )..................................... ...... — 4.4
Groceries— District (5 )......................................+ 8 . 0
WHOLESALE GROCERIES (47)
A k r o n ........................................................... ......+ 1 1 .2
Cincinnati..............................................................+ 2.0
Cleveland........................................................ ......+ 5 . 5
E rie................................................................. ......— 7.4
Pittsburgh....................................................... ......+ 7 . 7
Toledo.............................................................. ......— 1.4
Other Cities...........................................................— 2.9
District............................................................ ......+ 1 . 4
WHOLESALE DRY GOODS (13)....................— 1.8
WHOLESALE DRUGS (14)..............................— 2.2
WHOLESALE HARDW ARE (16)............. ..... — 12.9
WHOLESALE SHOES (6 )................................ — 10.7
♦Sales per individual unit operated.
First
* m0§*
+ 1 6 .8
+4.6
+ 4.2
+ 4.1
— 2.4
+4.4
— 4.2
+2.0
— 1.1
+2.0
+0.5
— 8.6
— 2. 7
— 4.0
Mar.Mar.
+19.2
0.1
+ 4.4
+ 1.6
—
—
8.8
+ 2.4
— 12.3
— 7.0
— 3.9
— 1.9
+ 5.4
— 3.9
— 10.9
— S .4
+2.6
+3.2
— 2.2
+ 3.8
+ 2 0 .7
— 14.0
+3.3
— 8.2
+ 6.0
+ 1 4 .0
+ 7.6
+ 2.3
— 4.5
+ 1 0 .9
+ 0.9
+0.7
+3.0
+2.6
— 1.5
— 9.S
— 12.0
+TA
+ 7.8
—ii.s
8
THE MONTHLY BUSINESS REVIEW
Summary of National Business Conditions
(By the Federal Reserve Board)
T
1501--------
Industrial production during March was in about the same volume as
in February and there was a seasonal increase in the distribution of com
modities. Wholesale prices remained practically unchanged. During the
past month there have been increases in bank credit in use and in member
bank borrowing at the reserve banks, and open market money rates have
shown further advances.
1'
i
1
V
Manu fadurea
h
>
j
A
s*
"■ * -V< £
1
*s
PRtODUCTION o r
MANUFACT URES AND MINERALS
1
I
|
1324
1925
1926
192?
1928
Index numbers of production of manufactures
and minerals, adjusted for seasonal variations
(1923-1925=100). Latest figures— March, manu
factures, 111; minerals, 104.
1924
Index
1925
of U.
S.
<1926=100).
1926
Bureau of
1927
Labor
1926
Statistics
Latest figure: March, 96.0.
Monthly averages of weekly figures for banks
in 101 leading cities. Latest figures are aver
ages for three weekly report dates in April,
Monthly averages of daily figures for 12 Fed
eral Reserve banks. Latest figures are aver
ages of first 23 days in April.
Production
Production of manufactures was maintained during March at the high
level reached in February, and the output of minerals also showed little
change. Production o f passenger automobiles and trucks during March totaled
413,000, the largest output recorded fo r any month since August 1926, and
production schedules in automobile plants continued large during April.
Activity in the iron and steel industry was also maintained at a high level
during March and April, and lumber production was in larger volume than
a year ago. Cotton and wool consumption declined in March, but silk
deliveries were the largest on record. There was some decline in meat
packing and in the production of sole leather, and the output of boots and
shoes in March showed less than the usual seasonal increase. M ining of
bituminous coal decreased during March by less than the usual seasonal
amount, but as the result o f a strike in certain Middle Western mines, pro
duction in the early weeks o f April was considerably curtailed. Building
contracts awarded were smaller in March than a year ago, while those for
the first three weeks in April were in about the same volume as in the
corresponding period of last year. As a result of large contracts during
the first two months of this year, total awards for the year to April 20
exceeded those for the same period o f 1927.
Contracts for residential
buildings and fo r public works have been especially large.
Trade
Sales of wholesale firms increased less than usual in March and were
somewhat smaller than in the same month of last year. Sales o f depart
ment stores, on the other hand, after allowance is made fo r custom ary sea .
sonal changes and the early date o f Easter, were about the same in March
as in the preceding month and in March 1927. Stocks of merchandise car
ried in March by wholesale firms were larger, while those o f departm ent
stores were smaller, than at this time last year.
The volume of freight-car loadings showed more than the usual seasonal
increase in March, but declined in the first two weeks o f April. L oadin gs
continued smaller than a year ago for all classes o f commodities except
grains and livestock.
Prices
The general level o f wholesale commodity prices showed little change
in March, the index o f the Bureau o f Labor Statistics declining slightly from
96.4 to 96 per cent of the 1926 average. There were decreases in the prices
of livestock, dairy products, meats, coal, and rubber; prices of grains, cattle
feed, cotton, and steel, on the other hand, advanced. During the first three
weeks in April, there were further substantial increases in the prices o f
grains and more moderate advances in flour, hogs, cotton, and lumber, while
prices o f cattle and rubber declined.
Bank Credit
Between March 21 and April 18 total loans and investments o f member
banks in leading cities increased by about $410,000,000, reaching the highest
level on record. The advance was largely in loans on securities which
showed an increase o f nearly $380,000,000 and in April were close to the
high point o f the first o f the year. Loans for commercial purposes con
tinued the increase which began in February and notwithstanding a small
decline during the last week o f the period were nearly $350,000,000 larger
on April 18 than at the end o f January.
The volume of reserve bank credit in use increased by $180,000 000
during the five weeks ending April 25, reflecting increased reserve require
ments o f member banks and a further net overflow of gold amounting to m ore
than $50,000,000.
Reserve bank holdings o f securities were reduced by about $80,000 000
during the period, while discounts fo r member banks increased by $230 000,000. Acceptance holdings also showed a small increase.
A firmer tendency in the money market was evidenced at the end o f
Mardh and during April by further increases in rates on call and time loans
on securities, and by increases of from 4-4% per cent to 4% per cent in the
rates on commercial paper and from 3 ^ per cent to 3% per cent in the
rate on 90-day bankers acceptances. Between April 20 and April 25 d is
count rates were raised from 4 to 4 ^ per cent at the Boston, Chicago S t'
Louis, Richmond, and Minneapolis Federal reserve banks.
@FedFRASER