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MONTHLY BUSINESS REVIEW
Covering financial, industrial, and agricultural conditions
in the
F ou rth Federal Reserve D istrict
Federal Reserve Bank o f C leveland
Vol. 11
Cleveland, Ohio, May 1, 1929
General business in the Fourth District in April con
tinued at the high level of February and March. First
quarter reports already published show that, with the
exception of building, most lines experienced a volume of
business at least as large as a year ago and many firms
report noticeable gains. Employment in most lines is
above the level of last year. Steel mills continue at
record rates, with orders showing no let-up and produc
tion in March breaking all records. Demand for rail
road equipment including both rails and cars continues
strong and mills supplying the automotive trade are
behind in deliveries. Automobile production in March
exceeded the previous high of February by over 100,000
units and automotive parts and equipment concerns in
this area are operating at record levels. Passenger
car registrations in 51 Ohio counties in March were
over 60 per cent higher than a year ago. Sales of de
partment stores were 5 per cent higher than in March
a year ago, and increases were evident in wholesale
drug, dry goods, and hardware sales. Production and
dexrtand for tires remains high, and employment at
Akron rubber factories in March reached the highest
level since 1920. Paint business seems to be showing
slightly more than a seasonal increase. Glass, though
showing a falling-off in early April, was ahead of last
year for the first quarter. The early spring has aided
farmers and the condition of fall-sown crops is much
better than in 1928, and is ahead of the ten-year
average.
Industries in which conditions are unfavorable are few.
Sales of wholesale groceries and shoes showed declines in
March. Building in this District has continued to run
behind last year. Lumber prices have stiffened and are
now much higher than a year ago. Coal production,
while showing a gain over last year, declined slightly
from February. Shoe production experienced a decline
and the price of hides and leather continued toward
lower levels. Clothing is irregular with manufacturers
of women’s apparel reporting gains, and of men’s cloth
ing, losses.
FINANCIAL
The most noticeable changes occurring during the
mon
ending April 23 were a decline in money rates,
a decline in reserve bank credit, rather large increases
Digitized
m gofor FRASER
stocks, a decrease in brokers’ loans of about
No. 5
350 million dollars, and a recovery of stock prices
from the reaction which took place at the end of March.
Gold Movements. Gold imports in March amounted to
$26,470,000, including shipments amounting to over $16,000,000 from Germany, while exports were only $1,635,000. This resulted in a net gain in total gold in the
United States at the end of March (including changes
in earmarked gold) of nearly $34,000,000. In the first
three weeks of April imports at New York were $5,500,000 and exports were only $208,000. Releases from
earmarked gold were $54,287,000, making a net increase
in gold of about $61,000,000 for the three weeks ending
April 17.
Money Rates. Money rates in New York have been
irregular during the past month with a seasonal down
ward movement occurring about the middle of April.
Prime commercial paper rates have remained steady at
5%-6 per cent since the 18th of March. The rate on
90-day bankers’ acceptances (asked) rose from 5*6 per
cent on March 23 to 5% on April 1 and then eased
off to 5% on April 23. Time money (90-day) continued
to rise early in April and remained at 9 per cent, flat,
for nine days from the 8th to the 16th of the month, an
unusually high rate. By April 23 the rate had fallen to
Sbi’ SVz per cent. Call money (renewal rate) ranged
from 7% to 15 per cent between March 23 and April
23, with the average for March being 9.38 per cent as
compared with 7.09 in February and 4.50 in March a
year ago. Since the middle of April the rate has gradu
ally declined, averaging 7% per cent for the week end
ing April 23. There has been no noticeable change dur
ing the month in rates charged to customers by commer
cial banks, the rate in Cleveland being 6 per cent flat
as compared with 5-6 per cent last year.
2
THE MONTHLY BUSINESS REVIEW
Reserve Bank Credit. Total credit extended by the
Federal Reserve System continued to decline during the
month and on April 17 was $1,310,000,000 or $62,000,000
less than on March 20. It is now $2,000,000 less than it
was on the same date a year ago. Gold reserves increased
67 million during the month and stand at 2,779 million as
compared with 2,719 on April 18, 1928. Reserve deposits
have decreased slightly, and with note circulation remain
ing stationary, coupled with the increase in gold, the
reserve ratio has risen from 71.7 to 73.3 during the
month. Discounts have been irregular, rising from 943
millions on March 20 to 1030 millions on April 3 and
then declining to 994 millions on April 17. Acceptances
showed a marked decline, falling from 237 millions on
March 20 to 141 on April 17. A year ago they amounted
to 351 millions. Government securities declined slightly,
amounting to 161 millions on April 17 as compared with
341 millions a year ago.
At the Cleveland bank discounts rose from 77 millions
on March 20 to 110 millions on April 10 and then fell
to 90 millions on April 17. Acceptances declined from
25 to 17 millions, and gold reserves fell from 270 to
259 millions during the month. Total credit extended
was $137,000,000 on April 17, an increase of 6 millions
for the month and 7 millions for the year.
Member Bank Credit. Collateral loans of reporting
member banks in the United States declined $287,000,000
during the month ending April 17 when they amounted
to $7,355,000,000. “All other” loans were $9,076,000,000
on April 17 as compared with $8,910,000,000 on March 20;
investments on the same dates were $5,909,000,000 as
against $6,028,000,000; demand deposits $13,118,000,000
and $13,281,000,000; and time deposits $6,779,000,000 and
$6,805,000,000.
In the Fourth District loans on securities decreased
from 714 millions on March 20 to 699 millions on April
17, all other loans increased from 816 to 823 millions
and equalled the high point of last October. Invest
ments dropped from 691 to 676 millions and both time
and demand deposits showed slight decreases, standing at
1019 and 962 millions respectively on April 17.
Brokers loans as shown by reporting member banks
in New York City declined from the high point of
$5,792,582,000 on March 20 to $5,425,000,000 on April
17, a decrease of 6.3 per cent for the month. Most of
this decrease was shown by New York banks although
“out of town” banks and “ others” also reported de
clines.
Stock Prices, Stock prices continued irregular dur
ing the latter part of March and early April. The DowJones average of 30 industrials declined from 320.00 on
March 16, when it was 2.06 points below the high for
all time made on February 5, to 296.51 on March 26.
Irregular fluctuations followed until the 16th of April,
when a rise took place which carried the average to
316.62 on April 23.
Debits, Savings, Failures. Debits to individual account
of 13 large cities in the Fourth District were $2,945,335,
000 in March as compared with $2,740,153,000 in Feb
ruary and $2,649,641,000 in March, 1929. This was a
gain of 11.2 per cent for the month as compared with
a year ago and of 7.5 per cent over February.
Savings deposits of 66 banks in this District totaled
$1,055,207,200 on April 1, a gain of 3.2 per cent for the
year and a loss of 0.2 per cent since March 1.
Commercial failures in the District numbered 194 in
March, 183 last year, and 166 in February. Liabilities
were $4,141,234 in March, $2,891,340 in February, an j
$8,433,754 in March 1928. There were 1,987 failuries in
the United States in March, 1,965 in February, and 2,236
in March, 1928.
Debits to Individual Accounts
(In thousands o f dollars)
weeks
%
1929 t o
ending
change
date (D e c .
A pr. 17,
from
26-A pr.
1929
1928
17)
4
A k r o n ..................
B utler, P a ..........
C a n t o n .................
C in cin n a ti..........
C le v e la n d ...........
C olu m bu s...........
C onneUsville, Pa
D a y t o n ................
E rie, P a ..............
Franklin, P a . . .
G reen sburg, Pa.
H om estead , Pa.
Lexin gton , K y . .
L im a .....................
L o r a in ..................
M id d le to w n ----O il C ity , P a . . .
P ittsburgh, P a ..
S p rin gfie ld .........
S t e u b e n v ille .. . .
T o l e d o .................
W a r r e n ................
W h eelin g, W . Va.
Y o u n g s to w n ... .
Z a n e s v i l l e .............
116,248
11,225
58,103
469,707
936,223
189,223
3,398
102,145
36,525
5,568
20,044
4,146
31,049
15,423
6,832
12,107
17,260
1,054,873
24,220
12,947
234,595
15,628
48,927
78,677
13,604
+ 11.5
+ 1 7 .4
+ 7 .1
+ 3 .7
+ 1 6 .0
+ 1 2 .3
— 14.1
+ 5 .6
+ 8 .2
+ 1 3 .9
+ 8 .9
+ 4 .4
+ 5 8 .5
+ 3 .4
+ 1 1 .8
— 0 .4
+ 1 4 .4
+ 9 .7
+ 1 0 .3
+ 3 1 .6
— 12.3
+ 9 .0
+ 7.1
+ 1 3 .0
+ 8 .2
T o t a l................
3,518,697
+
9 .0
1928 t o
date (D e c.
28-A p r.
18)
478,848
47,132
229,101
1,928,508
3,801,158
777,669
14,640
445,832
150,750
21,734
80,444
18,150
143,753
68,851
24,265
50,998
70,299
4,409,464
105,683
48,738
995,485
59,348
213,180
324,401
53,305
414,824
40,718
198,372
1,847,222
3,329,584
679,002
15,761
387,757
133,173
20,460
80,891
15,838
112,494
61,874
22,743
51,744
59.832
3,818,083
88,480
43,404
1,063,963
53,769
188,893
273,362
49,650
14,561,736
13,051,893
+ 1 ^ 6
Iron and
Steel
All steel production records fell when
March developed a daily ingot rate o f
194,199 gross tons and a monthly total
of 5,049,176 tons. Over the previous record month—
February, 1929—this was an increase of 8 per cent
and over the peak of war time production it was a
gain of 27 per cent.
Contrasted with actual annual record—the 49,857,223
tons of 1928—March production was at the annual rate
of 60,375,000 tons. On the basis of what has been con
sidered the industry's capacity, the March rate was
103.02 per cent.
This all-time record of March was the culmination o f
the monthly records which have characterized each month
since last July. Apparently the steel mills reached their
peak about March 15 and held it until April 15, when a
slight easing-off developed.
Buying of steel has largely paralleled production.
In the period March 15-April 15, consumers were speci
fying against expiring first quarter contracts and pro*
tecting themselves for the second quarter. At approx!,
mately the time that mill operations were scaled down
THE MONTHLY BUSINESS REVIEW
slightly, fresh buying also receded. Thus far, however,
there is no evidence of marked reduction in operations,
and previous April high marks seem to be exceeded.
In the Pittsburgh-Youngstown-Cleveland districts au
tomotive requirements have continued foremost. Bar,
sheet, and strip deliveries through late March and April
continued five to eight weeks deferred, especially on
the more wanted sizes and finishes. A shortage of semi
finished steel held down output of sheet mills.
Pi* iron production in March was a record for that
month at a daily rate of 115,207 gross tons and a
monthly total of 3,706,822 tons. The disparity between
pig iron and steel ingot output is explained by the wide
spread use of scrap. At the close of March 213 blast
furnace stacks were active, a gain of five for the
month and the largest number in blast since April, 1927.
Shipments of pig iron in March and early April were
at record levels for most districts. Coverage for the
second quarter was heavy at the turn of the quarter,
but receded rapidly in April. In the middle of the
month some large melters began buying for the third
quarter.
In finished steel the general price trend has been
strong. For second quarter material most users are
paying $1 per ton more than in the comparable period
of the first quarter. Record production going directly
into consumption obviated any weakness on this score.
Despite some occasional soft spots, the pig iron situation
has continued strong, with price advances in April in
the Mahoning valley and eastern Pennsylvania,
In March the Iron Trade Review composite of four
teen leading iron and steel products moved up to an
average of $36.42, compared with $36.28 in February
and $35.81 in March, 1928. In Mid-April the composite
rose sharply to $36.82, the highest point it has touched
since May, 1927.
Coal
Conditions in the soft coal industry
continued quiet during April, due partly
to a falling-off in retail consumption
caused by the unseasonably warm weather. Demand
on the part of industrial concerns remained at the high
level of the past few months.
Reports of first quarter business of coal companies
in this District are irregular. Some report that, due
to the lower stock piles and the increased industrial
demand, sales were larger than for the corresponding
penod of 1928. Others report a smaller volume of
business, while some say there has been no great change.
The monthly average weighted price of bituminous
coal (spot, mine) as compiled by the “ Coal Age” de
clined from $1.86 in February to $1.82 in March and
was considerably lower than the March, 1928, price of
$1.92 a ton.
Total production of soft coal in March was estimated
at 39,347,000 tons as compared with 47,271,000 tons in
February and 43,955,000 tons in March, 1928. March
production in the Fourth District was 14.1 per cent
ahead of March a year ago. All of the increase
occurred in Ohio fields, which have been operating for
the
past few months after remaining idle during most
3
of 1927 and 1928. Eastern Kentucky and Western
Pennsylvania both produced less coal in March than
last year.
Rubber
and Tires
April production of tires by Akron
factories continues at the high level
noted during the first quarter of the
year. With automobile production for March at a new
record for all time, demand for tires as original equip
ment remains high and a seasonal increase in sales to
consumers is being experienced.
The following table shows average stocks per dealer
in the United States as of April 1, for the past five
years, according to the Department of Commerce. It will
be noted that, with the exception of solid tires, dealers’
stocks are now considerably higher than at any time
during the past four years.
(Number of tires per dealer)
1929 1928 1927 1926 1925
Total casings (inc. balloons) 90.3 78.9 70.6 63.9 62.2
Balloon casings (alone) ...... 63.7 40.1 35.5 21.9 14.8
Inner Tubes ........................ 137.9 121.2 120.9 119.6 102.1
Solid and cusion tires ...... 32.7 33.2 24.7 26.6 20,1
Figures compiled by the Rubber Association of Amer
ica show that the use of reclaimed rubber in 1928 was
slightly greater than in 1927. The ratio of reclaimed
rubber to total crude rubber used was 51 per cent last
year and 50.8 in 1927. Ohio, the leading State in rub
ber consumption, used 542,238,362 pounds or 55.39 per
cent of the total crude rubber and 226,642,584 pounds
or 45.37 per cent of the reclaimted rubber.
The monthly average price of crude rubber has con
tinued to rise since December, 1928, when it stood at
17.86 cents per pound, the lowest in several years. In
January it rose to 20.05, February 23.54, and March
24.22 cents per pound.
April experienced a slight
decline, first latex, spot, being quoted on April 5 at
23.25, on April 16 at 22.5, but fell to 21 cents on
April 27.
Preliminary figures on tire production (including solids)
in the United States for March show an output of 5,587,584 units as compared with 5,157,000 a year ago.
Automobiles
Automobile production in the United
States during March exceeded the
record for all time established in
February by 109,360 cars. Total production of pas
senger cars and trucks was 584,733, or an increase over
March last year of 41.7 per cent. The increase in
THE MONTHLY BUSINESS REVIEW
4
truck output was larger than for passenger cars, the
percentage gains being 67.4 and 38.0 respectively over
March, 1928. Production of passenger cars and trucks
for the first three months of 1929 was 1,460,801 units
as compared with 968,838 in 1928, an increase of 50.8
per cent.
The high degree of activity is further noted in the
employment index of the automobile and automobile
parts industry as compiled by the Ohio State Bureau of
Business Research which advanced five points during
March to 129 and is now 48 per cent higher than a
year ago.
Figures emanating from the same source show that
the demand for cars, in this District at least, has in
creased at a rate which even exceeds the total produc
tion. Registrations in March of new passenger cars in
61 Ohio counties, which includes over 80 per cent of the
total population, increased 64 per cent over last year and
55 per cent over February.
Production during early April showed no let-up. Steel
orders are reported strong enough to carry mills through
June and the automotive industry's demand for steel
shows no sign of any decrease. New car stocks in
hands of dealers have risen to a figure considerably
higher than that of last year but much of this increase
is credited to Ford dealers who reported little or no
dealer stocks a year ago. Some dealers report greater
stocks but point to the increase in sales as indicative
of the need for larger stocks.
NEW
PASSENGER
CAR REGISTRATION
%
change
March
from Jan.-Mar. Jan.-Mar.
1929
1928
1928
1929
1,814
+ 8 7 .4
8,303
1,381
+ 86.9
968
2,091
1,150
+ 59.8
1,982
8,354
4,454
5,529
+ 7 1 .8
6,958
11,779
+ 80.3
8,457
2,187
1,622
+ 6 5 .3
1,821
1,208
2,854
+ 68.1
8,551
2,203
1,740
789
+ 4 9 .1
1,195
1,797
..
i/oiumouB ^rramcun; ...
..
.
Dayton (Montgomery) ..... ..
Toledo (Lucas) ................. ..
Yeungstown (Mahoning)
15,119
+ 7 0 .8
33,286
20,682
%
change
from
1928
+ 8 2 .1
+ 8 1 .8
+ 8 2 .8
+ 6 9 .3
+ 5 8 .1
+ 56.7
+ 6 1 .2
+ 5 0 .4
+ 6 0 .9
facturers have revamped their sales policies to sozni
extent by preparing merchandise in the proper season.
Sales of men's clothing for the first quarter of 1929
were slightly behind the corresponding period of last
year but seasonally ahead of the fourth quarter of 1928.
Makers of underwear and knit outer wear are ex
periencing higher sales than a year ago. Collections
are good and though fall orders are slow coming in
the outlook is satisfactory.
Retail clothing sales in April, as in March, continued
to show gains in most lines. Reports from 36 depart
ment stores in this District showed gains in the fol
lowing departments in March as compared with a year
ago: Women's dresses 2.2 per cent; suits, 10.2; sports*
wear, 13.8; aprons and house dresses 17.6; misses*
dresses, 6.9; juniors' and girls' wear 23.4; men's clothing,
3.9; men's furnishings 11.7; hats and caps, 30.4; and
boys' wear 24.9. The only declines, 4.1 and 15.6 per
cent, were shown in women's coats and misses' coats and
suits respectively.
Sales of 12 wholesale dry goods firms showed an in
crease of 4.8 per cent in March over last year and 17.2
over February, but the first quarter showed a loss of
0.8 per cent. Collections are 8.6 per cent ahead of 1928
and stocks are 17.6 per cent lower.
Shoes
The shoe business continues on an
uneven keel. Production and wholesale
sales during March were below last
year but retail sales showed decided gains due probably
to the fact that Easter fell in March this year and in
April a year ago.
Contrary to expectations, Easter buying was good
for that season, despite the fact that it came at
what is usually classed the end of the winter season.
Ordinarily when Easter comes so early, shoe sales are
slow because it coincides with the winter clearance
period. This year proved to be an exception, due prob
ably to the warm weather, and retail sales of women's
and children's shoes as reported by 48 department stores
in this District showed a gain of 26.5 per cent; men’s
and boys' shoes showed an increase of 16.9 per cent
over March, 1928.
Fourth District shoe production experienced a decline
of 14.4 per cent during March and 12.1 per cent in the
first quarter as compared with a year ago. There was
also a decline of 11.7 per cent from February. This is
rather unusual as the country as a whole showed a
gain of about 10 per cent over last month.
Clothing
Conditions in the wholesale clothing
industry in the Fourth District seem
to be irregular.
Manufacturers of
women’s clothing report sales slightly ahead of last
year, explained in part by the early Easter season and
the moderate weather which encouraged spring buying.
Buying is still on the hand-to-mouth basis but manu
Wholesale shoe sales in the District showed a decrease
of 3.3 per cent from a year ago, but showed an increase
of 125.5 per cent as compared with February. Early
April sales are not up to last year, but this again might
be a result of the early Easter.
The prices of hides continued to fall in March, aver
aging 14% cents a pound as compared with 23% cents
a year ago. Sole leather dropped from 56% cents a pound
in February to 53.0 in March and continued at that
price until mid-April. Quotations a year ago were 69
cents a pound at Chicago.
THE MONTHLY BUSINESS REVIEW
Other
Reports from a number of manufacturing lines, which appear below, show
that business during the first quarter
of 1929 was ahead of the correspond
ing period of 1928. April business is maintaining the
level established early in the year. Collections are re
ported good in all but one or two fields.
Agricultural Implements. First quarter business was
slightly larger than the corresponding period of 1928,
April is holding up well, but collections are only fair.
Boxboard. The volume of business done during the
first three months of this year compares favorably with
1928, but the low prices which are prevalent have af
fected the dollar volume.
Cork. Business is holding up to the first quarter which
was greater than the same period in 1928 and the last
three months of last year. Collections have improved.
Electrical Supplies. The rising copper market since
last fall has increased orders of electrieal goods so that
the first quarter busines is ahead of both the first and
fourth quarters of 1928. Business during early April
was good and collections are satisfactory.
Glass. Orders during the first two weeks of April ex
perienced a slight falling-off, compared with the volume
of March and February, particularly in the retail trade.
First quarter business was slightly ahead of 1928.
Hardware, Machinery. The demand for machine special
ties continues strong. There appears to be no slacken
ing in the demand of automotive manufacturers and
business for the first quarter was far ahead of both
the first and last quarters of last year. Orders are
for immediate use with very few indications of forward
buying. Collections are prompt and satisfactory.
Paint. Business seems to be showing slightly more
than the seasonal increase usually experienced at this
time of year. Automobile demand is heavy and though
the inclement weather has retarded outdoor work, the
first two weeks in April were ahead of last year. First
quarter business was about on a par with 1928, but
collections seem to be slow.
Paper. There is some evidence of over-production in
the paper industry and the price has remained well
below the level of 1928. First quarter business was on a
level with 1928 but the demand is weak and orders
are slow.
Stoves and Ranges. A slight falling off in the stove
business developed early in March and continued through
the first part of April. Competition is keen and col
lections are only fair.
Manufacturing
AGRICULTURE
The past few weeks of warm weather has resulted
in rapid, growth of fall-sown crops and pastures in the
District and at present the season is somewhat further
advanced than usual. Continued heavy rains have, to
some extent, retarded early plowing and seeding of spring
crops.
Winter wheat,
locality last year,
less damage than
tionforinFRASER
Ohio was
Digitized
which was such a failure in this
came through the winter with much
usual. The April 1 estimated condi
89 per cent of normal as compared
6
with 32 a year ago, 79 in 1927, and 74, tile ten-year
average. The present condition is five points above the
estimated condition of last December. This increase
during the winter months is very unusual, having hap
pened only four times in the past 30 years. Wheat in
the northwestern section of the state had the lowest
condition, averaging only 83 per cent, compared with
averages of 86 to 92 per cent in other parts of the state.
The condition of winter wheat in Pennsylvania im
proved nine points during March, 1929, in contrast with
only two points last year. The April 1 condition of 89
per cent of normal is above the average for the last
five years and the highest since 1922.
Rye condition was somewhat above normal on April
1, averaging 91 per cent in Ohio, 85 in Pennsylvania,
90 in Kentucky, and 88 in West Virginia, as compared
with 82, 88, 81, and 85 per cent respectively, the tenyear average April 1 condition.
Pastures on April 1 were somewhat better than a
year ago and the average of the past five years.
The following table shows the planting intentions of
spring crops as a percentage of the acreage actually
harvested in 1928. These figures, reported by repre
sentative farmers to the United States Department of
Agriculture, are not forecasts of acreage that actually
will be planted. They are simply an indication of what
farmers had in mind to plant at the time they made their
reports, compared with the acreage grown by them for
harvest last year.
Ohio
Pa.
Ky.
W. Va.
%
%
%
%
98
106
100
98
90
Spring wheat ............... ... 70
....
, , 82
104
110
99
.. 46
120
200
....
98
98
Potatoes .......................... 95
95
124
105
119
140
Tobacco ........................
99
105
102
Tame hay ..................... ... 106
It will be noted that, with the exception of tobacco
and tame hay, the intended acreage of the important
District crops is on the whole slightly less than the
acreage harvested last year.
Tobacco
There is nothing new to report in re
gard to the 1929 tobacco crop at the
present time. The advanced season is
favorable for plant growth, the ground is working nicely
and fields are being prepared with little difficulty. As
shown in the table above, the average increase in in
tended tobacco acreage in this District is 22 per cent
as compared with the acreage actually harvested in
1928. Most of this increase is in the burley and cigar
types. Farmers are undoubtedly much encouraged by
the high prices paid for the last crop, and also by the
fact that only a comparatively small quantity of burley
is now in the hands of dealers.
Announcement has recently been made of the dis
solution of the Burley Tobacco Growers Cooperative
Association. This organization, formed six years ago,
sold nearly $200,000,000 worth of tobacco during its
existence.
Sales of burely tobacco at Lexington, in the center of
6
THE MONTHLY BUSINESS REVIEW
the burley* district, have grown rapidly in recent years,
having increased from 9,539,260 pounds at an average
of 21.31 cents a pound in 1921 to 61,447,647 pounds at
33.19 cents a pound in 1928. The 1928 price was the
highest average price received in the past twelve years
with the exception of 1918 and 1919.
BUILDING
The unfavorable showing made by building contracts
awarded in February continued during March. Residential
contracts for the Fourth District amounted to $16,651,415
in March as comlpared with $21,417,000 a year ago, a
decrease of 22.3 per cent. Total contracts amounted to
$47,077,706 this year as against $66,821,000 in March,
1928, a decrease of 29.5 per cent. Total contracts for
the first quarter of 1929 showed a gain of 5.4 per cent,
due to large industrial awards in Western Pennsylvania
in January.
Reports coming from all parts of the District further
substantiate the fact shown above, that building, particu
larly residential building, is not experiencing the in
creased activity noted in many lines.
Building permits in 24 cities likewise showed a decline
from a year ago, the drop being 13.4 per cent for the
month and 12.5 for the first quarter. Increases for the
first three months were shown by 13 cities, the largest
being in East Cleveland and Erie.
MlOJpN
BUILDING CONTRACTS - 4 T H DISTRICT
..7 7; r/\
A
K
/\
hi
r V\
/ \7 \
V
\ \
J/ —
V /
TO TA L \
j
'
*
'
*
I
§
0
/
\/
v
a
J
A
/
1
/
/
N
■
A
------
A
./
• \a\
v
i
Wholesale
Trade
<
i
\' V
1927
1926
1928
1929
Building Operations
(V alu ation o f P erm its)
%
+ 6 2 ,5
— 5 9 .2
4* 4 8 .4
—
1 .2
— 2 5 .4
— 3 2 .1
Tan.-M ar.
1929
4,874,630
19,809
169,750
541,005
6,687,375
8,120,175
J an .-M a r.
1928
3,797,267
65,590
153,838
1,094,364
5,981,855
10,070,025
%
change
from
1928
+ 2 8 .4
— 6 9 .8
+ 1 0 .3
— 5 0 .6
+ 1 1 .8
— 1 9 .4
— 18.1
433,670
+ 1 2 6 6 .9
1,144,652
556,580+ 8 3 .7
— 6 4 .7
106,000
— 4 9 .9
191,105
—
22.0
225,080
340,825+ 1 3 9 . 4
— 2 0 .9
707,270
— 1 9 .4
1,421,750
174,500 20.6
+ 1 0 0 .4
1,205,005
391,979+ 8 6 .4
+ 2 6 .8
225,649
9 .3
115,294+
137,765+ 86 .0
44,050— 31.8
— 50.1
2,577,777
— 21.3
108,645
—
1,348,094 36.2
— 43.1
108,209
— 34.1
326,073
641,995
1,157,899
711,905
255,000
285,541
462,610
480,830
1,336,170
2,633,050
413,150
2,260,209
3,091,640
368,780
472,514
177,685
65,025
5,831,874
316,870
2,740,383
259,836
821,978
1,384,010
303,903
548,196
546,550
938,912
640,760
280,728
1,816,325
4,046,000
324,350
1,859,165
555,400
327,825
311,425
124,100
93,225
8,863.859
274,745
5,281,638
398,030
1,563,090
— 5 3 .6
+ 2 8 1 .0
+ 2 9 .9
— 53.3
— 6 9 .6
— 2 7 .8
+ 7 1 .3
— 2 6 .4
— 3 4 .9
+ 2 7 .4
+ 2 1 .6
+ 4 5 6 .7
+ 12.5
+ 5 1 .7
+ 4 3 .2
— 3 0 .2
— 3 4 .2
+ 1 5.3
— 4 8 .1
— 3 4 .7
— 4 7 .4
— 1 3 .4
45,197,688
51,663,175
— 1 2 .5
M arch ,
1929
A k r o n ..................
A s h ta b u la ..........
B a rb e rto n ...........
C a n t o n ................
C in c in n a ti..........
C le v e la n d ...........
C leve. suburbs:
C leve. H eigh ts
E ast C leveland
E u clid ................
G arfield H ghts
L a k e w o o d ....
P a rm a ...............
R o c k y R i v e r ..
Shaker H eigh ts
C olu m b u s............
C o v in g to n , K y .
D a y t o n ................
Erie, P a ..............
H a m ilto n ............
L exin gton , K y . .
L i m a . ......... ..
N e w a r k ...............
P ittsbu rgh , P a ..
S p rin gfield ..........
T o l e d o .................
W h eelin g, W . Va.
Y o u n g s to w n . . . .
T o t a l................
3,080,552
14,105
116,410
286,095
2,229,175
2,815,200
ch aage
from
1928
+
20,431,509
Sales of 63 department stores in Hie
Fourth District showed an increase in
March of 5.0 per cent over a year ago.
Increases were shown in every large city except Dayton,
the largest being 14.2 per cent in Toledo. Sales for the
first three months of the year increased 2.3 per cent
in this case also, Dayton was the only city showing a loss.
The principal changes in departmental sales in March
were: silks and velvets, —16.0; woolen dress goods, — 26.7;
domestics, —9.2; silverware and jewelry, 4-13.8; millinery,
+13.4; hosiery, +17.5; women’s and children’s shoes*
+26.5; women's coats, —5.6; women’s dresses, +1.4; men*s
clothing, +8.1; men’s furnishings, +12.9; furniture, — 6.7;
and china and glassware, —20.2 per cent.
Wearing apparel sales increased 4.2 per cent in
March in the District, with Cleveland showing a gain
of 10.3 per cent. The increase in all apparel sales is
partly explained by Easter falling in March this year
and in April in 1928. Sales for the first three mo n %
were 2.4 per cent higher than in 1928.
Retail furniture stores in the District showed an in
crease of 1.0 per cent in sales for March but a
of 2.7 per cent for the first quarter as compared 'with
corresponding periods of 1928.
Retail
Trade
A
n /*
RESIDENTIAL
— -------------------
1925
~ir AV As A
\(V
IV -J
'
\
\
N7
Lumber dealers and manufacturers fa
this District report little change in
their industry during the past ninety
days. A slight increase in demand was felt in early
April but this was purely seasonal, and was not as large
as is usually experienced at this time of year. Prices
of hardwoods have stiffened, caused probably by the
decrease in production this spring, coupled with the
lower stocks in hands of dealers.
Lumber
All reporting wholesale lines showed
gains in sales in March as compared
with the same month a year ago, ex
cept groceries and shoes.
Dry Goods sales were 4.8 per cent larger in March
than a year ago and 17.2 ahead of February,
the latter increase was largely seasonal. The first qua**
ter showed a loss of 0.8 per cent.
An increase of 0.6 per cent in March and 9.5 per cent
for the year to date was shared by reporting wholesale
drug firms. Accounts receivable and collections ’w ere
both larger than in March, 1928.
Pittsburgh was the only city which reported gains in
wholesale grocery sales in March and the District as %
whole showed a loss of 6 per cent. The first quarter
only showed a loss of 0.6 per cent as compared with a
year ago.
Sales of hardware increased 4.6 per cent in March
and 0,3 per cent during the first quarter as compared
with a year ago.
Shoe sales in March were lower by 3.3 per cent than
a year ago but 125.5 per cent ahead of February. The
decline in sales for the first three months was 16.1 per
cent.
7
THE MONTHLY BUSINESS REVIEW
Fourth District Business Statistics
(A ll figure* arc for F ou rth D istrict unless otherw ise specified)
M ar.
1929
Bank D ebits (24 cities)
M illions o f dollars
Saving* D eposits (end of m onth)
O h io (40 banks)
T h ou san ds o f dollars
W estern P ennsylvania (26 ban ks)
T o t a l (66 ban ks)
“
“
Com m ercial F a ilu res— N u m ber
A ctual N u m ber
**
“
— Liabilities
T h ou san ds o f d o l la r s
Postal R eceipts— 9 cities
44
44
"
Sales — Life Insurance— O h io and Pa.
44
**
— D ept. Stores— (63 firm s)
** — W earing A pparel (18 firms)
— Furniture (48 firms)
•« — W holesale G rocery {42 firm s)
“
“
44
—
**
D ry G ood s (12 firm s)
“
“
44
** —
**
H ardw are (15 firms)
“
44
** .—
**
D rugs (13 firms)
44
44
44
B uilding Perm its, V a lu a tion — 27 cities
44
44
41
B uilding C ontracts — T o ta l, 4th D istrict
44
44
44
“
— R esidential, 4th D istrict
“
“
P ro d u ction — Pig Iron , U . S.
44
*4 tons
— Steel In gots, U . S.
— A u tom obiles, U . S.
— Passenger Cars
A ctual N um ber
— T ru ck s
44
— B itum inous Coal, 4th D istrict
T h ou san ds o f tons
44
— C em ent: O hio, W . V a .t W n. Pa.
44
44 barrels
44
— E lectric P ow er: O hio, P a., K y .
M illion s o f k.w. hrs.
44
— P etroleu m : O hio, Pa., K y .
T h ou san d s o f barrels
44
— Shoes, 4th D istrict .
44
44 pairs
— Tires, U. S.
“
“ casings
B itum inous Coal Shipm ents (from Lake Erie P orts)
u “ tons
Iron Ore R eceipts (a t Lake E rie P orts)
**
44 “
• M on th ly Average.
*Febru ary.
M anua ry-F eb ru ary.
♦Figures C onfidential.
3,226
743,357
278,221
1,021,578
183
8,434
3,423
117,063
25,467
1,977
1,079
6,259
2,138
1,999
1,830
23,592
66,821
21,417
3,199
4,508
4
5,588
+ 1 0 .1
4
Jan .-M ar.
1928
10,555
9,582
7 8 0 ,1 2 8 '
275,432*
1,055,560*
556
11,668
9,433
351,626
69,236
4,072
2,806
17,482
5,823
5,369
5,558
45,198
138,118
38,154
10,355
13,850
+ 4 .6
— 0 .3
+ 3 .3
+ 6 .0
— 5 0 .9
— 2 .5
+ 1 2 .8
+ 5 .0
+ 4 .2
+ 1 .0
— 6 .0
+ 4 .8
+ 4 .7
+ 0 .5
— 1 3 .4
— 2 9 .5
— 2 2 .3
+ 1 5 .9
+ 1 2 .0
371,821
41,558
13,802
851
1,157®
1,891*
5,157
Jan .-M ar.
1929
%
change
+ 3 8 .0
+ 6 7 .4
+ 1 4 .1
+ 6 .7
+ 4 .2
— 4 .9
— 1 4 .4
+ 8 .4
740,778*
274,275*
1,015,053*
638
19,157
9,545
309,044
67,651
4,591
2,885
17,490
5,871
5,351
5,075
51,663
131,065
49,399
8,954
12,544
1,275,053
179,668
51,480
2,555
2,516
3,767
868,195
100,345
44,106
2,584
2,323*
3,755*
4
4
15,876
14,124
%
change
+ 1 0 .2
+ 5 .3
+ 0 .4
+ 4 .0
— 1 2 .9
— 3 9 .1
— 1 .2
+ 1 3 .8
+ 2 .3
+ 2 .4
— 2 .7
— 0 .0 4
— 0 .8
+ 0 .3
+ 9 .5
— 1 2 .5
+ 5 .4
— 2 2 .8
+ 1 5 .6
+ 1 0 .4
+ 4 6 .9
+ 7 9 .1
+ 1 6 .7
— 1 .1
+ 8 .3
+ 0 .3
— 1 2 .1
+ 1 2 .4
Fourth District Business Indexes
(1929 com p a red with 1928)
P ercentage
Increase or D ecrease
SA L E S
SA LE S
STOCKS
M ar.M ar.First
M ar.
M ar.
3 m os.
D E P A R T M E N T S T O R E S (63)
+ 3 .4
A k r o n ...................................................
+ 1 .2
+ 3 .7
+ 7 .9
C in cin n a ti...........................................
+ 4 .4
+ 4 .5
+ 3 .5
C le v e la n d ............................................
+ 3 .8
— 4 .0
C o lu m b u s...........................................
+ 1 .7
+ 0 .8
— 2 .0
— 3 .7
D a y to n ................................................
— 2 .8
+ 3 .8
P ittsb u rg h ..........................................
+ 5 .9
+ 0 .2
— 7 .8
T o le d o ..................................................
+ 1 4 .2
+ 1 1 .7
— 1 4 .7
+ 4 .7
W h e e lin g .............................................
+ 0 .4
— 9 .3
+ 3.1
Y o u n g s t o w n .....................................
+ 1 .2
— 1 0 .8
O ther C itie s......................................
+ 7 .4
+ 5 .3
— 6 .3
D is tr ic t................................................
+ 5 .0
. + 2 .3
— 4 .5
W E A R I N G A P P A R E L (18)
G n c in n a t i..........................................
+ 1 .0
— 3 .0
+ 6 .8
C le v e la n d ...........................................
+ 10.3
+ 1 2 .3
— 6 .6
O th er C itie s ......................................
— 0 .6
+ 1 .6
— 5 .1
D is tr ic t................................................
+ 4 .2
+ 2 .4
— 3 .8
F U R N I T U R E (48)
C in cin n a ti..........................................
+ 1 8 .1
+ 1 .3
C le v e la n d ...........................................
— 6 .1
— 1 1 .4
C o lu m b u s ...........................................
— 4 .2
— 2 .3
D a y t o n ................................................
— 7 .5
— 1 .0
T o le d o ..................................................
+ 6 .0
+ 7 .3
O th er C ities......................................
+ 2 .7
+ 2 3 .3
D is trict................................................
—
2 .7
+ 1 .0
C H A IN S T O R E *
D rugs— D istrict ( 3 ) .......................
— 4 .1
— 6 .0
G roceries— D istrict ( 4 ) .................
— 0 .7
+ 4 .9
W H O L E S A L E G R O C E R I E S (42
A k r o n ...................................................
+ 0 .6
) — 3 .3
C in cin n a ti.................................
— 4 .2
+ 0 .5
C le v e la n d ...........................
— 1 4 .6
— 4 .1
E r ie ............................................’ . *' *
— 6 .1
— 9 .3
P itts b u r g h .................
+ 1 -9
+ 3 .8
T o le d o
+ 2 .7
— 1 .6
O ther C itie s .................
+ 2 .6
— 1 .4
D is tr ic t.........................’
— 0 .0 4
— 6 .0
+ 2 .5
+ 4 .8
— 0 .8
— 1 7 .6
wholI I ale E ^ g^ ? ) S<12) + 0 . 6
+ 9 .5
+ 4 .6
+ 0 .3
+ 'i * . 2
wholeI ale shofD
s4 )
!lS) — 3 .3
+ 1 2 5 .5
— 1 9 .5
ated .
....
3,552
777,883
277,324
1,055,207
194
4,141
3,336
132,071
26,733
2,060
1,090
5,884
2,241
2,092
1,840
20,432
47,078
16,651
3,707
5,049
513,266
69,559
15,742
908
1,206*
1,799*
Retail and Wholesale Trade
.................
M ar.
1928
(1923-1925 ** 100)
M ar.
1929
B ank D e b its (24 c it ie s ).................................
131
C om m ercia l Failures ( N u m b e r ) ...............
133
(L ia b ilitie s )............
94
P ostal R e ce ip ts (9 c it ie s )...........................
129
Sales — L ife Insurance (O h io and P a .)..
158
— D ep a rtm en t Stores (52 firm s) . .
105
— W holesale D rugs (13 f i r m s ) ....
117
—
44
D ry G ood s (12 firm s)
92
—
“
G roceries (42 firm s).
88
—
4*
H ardw a re (15 firm s)
98
95
—
"
All (87 firms) f ..........
—
**
Chain D rugs (3 firm s)* * 89
99
B u ilding C on tracts ( T o t a l ) .........................
97
44
44
(R e s id e n tia l)..............
87
P ro d u ctio n — C oal ( 0 ., W n. P a ., E. K y .)
76
44
— C em ent (O ., W n. Pa., W . V a .)
144
“
— E lec. P ow er ( 0 . , Pa., K y .) *
88
— S h o e s ..........................................
97
14
— P etroleu m (O ., P a., K y .) *
♦February
* * P e r in divid u al unit operated,
fin c lu d e s 4 shoe firms
M ar.
1928
119
125
191
132
140
101
117
88
93
93
96
95
140
125
76
71
138
103
102
M ar.
1927
118
132
107
132
141
98
117
89
92
107
98
99
119
141
125
105
127
112
98
M ar.
1926
110
147
85
130
132
93
120
93
94
104
100
105
139
146
103
52
121
99
91
M ar.
1925
103
119
71
112
117
96
105
99
92
107
98
98
154
163
87
68
104
103
91
Banking Operations
FEDERAL RESERVE BANKS
Federal Reserve
Bank of Cleveland
Federal Reserve System
(In Millions)
(In Millions)
Apr. 17 Apr. 18 Mar. 20 Apr. 17 Apr. 18 Mar. 20
1929
1928
1929
1929
1928
1929
Gold reserves ................
259
264
270
2,779
2,719
2,712
Discounts ...........................
90
67
77
994
620
848
Acceptances ......................
17
80
25
HI
851
287
U. S. Securities ......- ........
80
48
29
161
841
186
Total bills and securities
137
180
131
1.310
1,812
1.872
Federal Reserve notes in
_
circulation ....................
205
192
202
1,582
1»M2
Total deposits ................
180
195
186
2,880
2,423
2,870
REPORTING MEMBER BA N K S
.
.
Fourth District
^ nited States
(In Millions)
(In Millions)
Loans on securities ........
A ll
699
823
675
782
1,66276
*1 *
714
816
11 «
7.855
9,07o
6,920
8,888
W
7,642
o,»10
J : |i
8
THE MONTHLY BUSINESS REVIEW
Summary of National Business Conditions
By The Federal Reserve Board
Volume of industrial production and trade increased in March and
wholesale prices advanced somewhat. There was a growth of commercial
loans of member banks in leading cities in March and the first half of
April, while investments and loans on securities of these banks showed
a reduction for the period.
Index numbers of production of manufactures
and minerals, adjusted for seasonal variations
(1923-1925 average — 100).
Latest figures
March, manufactures 120, minerals, 110.
Index of United States Bureau of Labor Sta
tistics, (1926 = 100, base adopted by bureau).
Latest figure, March 97.5.
millions or mujuu
Monthly averages of daily figures for 12 Fed
eral reserve banks. Latest figures are averages
of first 22 days in April.
MONEY RATES IX PItEW YORK
1
!
/
A
t
/
>
/
, _____ _
U
1
Comm*/v ia / P aper Ro/m
— /W lV
O iscovnt fto f*
-----Accwftft mem /fa (>r j
- ............
1
Monthly rates in the open market in New York,
commercial paper rate on 4-to-6-month paper
and acceptance rate on 90-day bankers* accept
ances. Latest figures are averages of first 22
days in April.
Production
Output of manufactures reached a new high level in March. Automobile
production was exceptionally large and steel ingot output was reported
to be above rated capacity. Output of refined copper, lumber, cotton
silk textiles, and sugar was also large for the season. There was some
seasonal recession from February in the production of wool textiles
leather, and a further decline in production by meat packing plants. Hie
volume of factory employment and payrolls continued to increase during
the month and was substantially above the level of March, 1928.
Production of minerals as a group declined sharply, reflecting reduc
tion in output of coal by more than the usual seasonal amount. Output
of non-ferrous metals continued large and petroleum production increased
During the first part of April, industrial activity continued at a high
rate, although preliminary reports indicated a slight slowing down in
certain branches of the steel industry and a smaller output of coal and
petroleum.
The value of building contracts awarded increased seasonally during
March and the first two weeks in April, reflecting in part the award o f *
few large contracts, chiefly commercial and industrial. The total volume
of building, however, continued smaller in March than a year ago. Con
tracts for residential building and public works and utilities were sub
stantially below the level of March, 1928, while industrial and commercial
building was in larger volume.
Distribution
Railroad shipments of commodities declined somewhat in March but
were larger than in the same period of the preceding year. The decline
from February reflected smaller shipments of coal and coke, grain product*,
and livestock, all of which were also below March a year ago. Loadings 3
ore and miscellaneous freight increased substantially over February
continued above 1928.
Sales by wholesale firms in all lines of trade reporting to the Federal
Reserve System were seasonally larger than in February. In comparison
with the same month a year ago, however, sales in most lines of trad*
were smaller, except in the case of dry goods, men’s clothing and hardware.
Department store sales showed a larger increase in March than is usual at
this season, and were larger than in the same month in the preceding year*
partly oh account of the fact that Easter came in March this year.
Prices
Wholesale prices of commodities during March averaged slightly higher
than in February, according to the index of the United States Bureau o f
Labor Statistics. There were marked increases in prices of copper and
lead, and smaller advances in prices of iron and steel and cotton goods,
as well as of certain agricultural products, particularly cotton, livestock,
meats and hides. Prices of grain and flour were lower during the month and
the price of leather declined, reflecting an earlier decline in prices of hides.
Silk and rayon textiles and raw wool were also somewhat lower in price.
In the middle of April prices of livestock and raw silk were higher
than at the end of March, while cotton and wool had declined in price*
Among the non-agricultural products there were marked declines in the
prices of copper, lead, tin, and zinc; a further decline in rubber and
increases in pig iron and finished steel.
Bank Credit
Between March 20 and April 17 there was a considerable decline in
the volume of member bank loans to brokers and m the banks holdings of
investments. Loans chiefly for commercial and agricultural purposes
showed a rapid increase, and at the end of the period were near th e
high level of last autumn.
.
During the same period the volume of Reserve bank credit ® use
declined further as a consequence of additions to the^ country's stock o f
monetary gold. A continued rapid reduction in holdings of acceptances
carried the total to the lowest point since the autumn of 1924. Security
holdings also decreased somewhat, while discounts for member banks
Open market rates on bankers' acceptances and commercial # paper
increased further. Rates on collateral loans increased sharply in the
latter part of March, but declined in April.
@FedFRASER