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The Monthly Business Review Covering financial, industrial, and agricultural conditions in the Fourth Federal Reserve District 9 CLEVELAND, OHIO, NOVEMBER 1, 1923 “ Business has entered into the final quarter of the year with production less active in certain lines than it was a month ago but still large in volume and sustained by the consumptive requirements of a well employed population.” “ Agricultural conditions are showing a steady improvement and it is the opinion of those in close touch with the farm trade that farmers in certain sections are coming into the market for those neces sities which they have needed for the past three years.” —Excerpts from Editorial FEDERAL RESERVE BANK of CLEVELAND D. C. Wills, Chairman of the Board (COM PILED OCTOBER 22, 1923) NO. 11 2 THE MONTHLY BUSINESS REVIEW An Editorial USINESS has entered into the final quarter of the year with pro duction less active in certain lines than it was a month ago but still large in volume and sustained by the consumptive require ments of a well employed population. B Stocks of manufacturers are showing little accumulation. One reason for this is that people do not care to produce more goods than they are reasonably sure they can sell. Another reason and a very important one is that domestic consumption is big and has shown little evidence of decline. This is encouraging in view of the heavy production facilities of the country as a whole, and also because European countries have not yet reached the place where much dependence can be placed on trade with them. The purchasing power of a great majority of the people is high. Agricultural conditions are showing a steady improvement and it is the opinion of those in close touch with the tarm trade that farmers in certain sections are coming into the market for those necessities which they have needed for the past three years. Orders in some lines are slowing down but this may be taken as indicating a decline in forward buying rather than a reduction in the buying power of the ultimate consumer. The decline in forward buy ing may be due to the fact that efficient transportation facilities make possible prompt shipments. In the light of the present encouraging showing of industry and trade, therefore, and judging by the conservatively optimistic reports received this month direct from our Fourth District manufacturers, there is little evidence of a pessimistic trend of mind. THE MONTHLY BUSINESS REVIEW It is true that business is not rushing as it was last spring. Good business, however, does not necessarily have to be boom business. We are altogether too much inclined to use boom periods as yard sticks. High production facilities and dependence upon home consumption naturally make for increasing competition. Consequently 1924ibusiness plans are being made with a view to greater efficiency. In this connection various national organizations and industrial concerns are making efforts to level seasonal peaks and hollows to some extent by means of more consistent “ year round” business. Ideas along this line have been developed to their practical limit in certain industries. Changing styles and the whims of the buying public make “ year round” business impractical in others. For in stance, it would be folly to ignore climatic changes which produce variables in requirements. Interesting experiments, however, have proven that many of these seasonal conditions have been uncon sciously magnified at great cost. Considerable leveling has been accomplished by means of standard ization and “ straight line” production; also by the introduction of new and improved lines during the off season. Another leveling method is the offering of special price concessions during dull periods. In some industries greater warehousing facilities are being provided in different sections of the country in order to avoid the redistribution of goods. Notwithstanding the greater investments which are neces sary, it is found that this is working toward economies. Quite probably there will always be seasonal tendencies, but the fact that remedial efforts are being made should work toward at least a partial solution of the problems caused by wide fluctuations. 4 THE MONTHLY BUSINESS REVIEW Material Increase in Number of Borrowing Country Banks; Loans Somewhat Higher On September 20 borrowings from this bank by city banks totaled approximately $38,000,000 and on October 20, $46,000,000, a net increase for the month o f $8,000,000. However, during the period from Septem ber 20 to October 15 there was considerable fluctua tion in their borrowings, the low point during that period being about $37,000,000 and the high point $55,000,000. Loans to country banks have shown a steady in crease since September 20 at which time they stood at about $13,000,000. On October 20 they were approxi mately $15,500,000, a gain for the month o f $2,500,000. The number o f borrowing country banks has also shown a very material gain. About 40 banks located principally in agricultural sections which were not borrowing from us at the end o f September have availed themselves o f the rediscounting privileges of this bank since October 1. There is considerable evi dence of farmers buying live stock for fattening pur poses. On September 20 the reserve ratio o f this bank was 80.0 per cent as compared with 79.5 per cent on October 20. The reserve ratio o f the System on Sep tember 20 was 77.4 per cent as against 76.6 per cent on October 20. Savings deposits show a further increase. Reports from representative banks in the Fourth Federal Re serve District for the month o f September, 1923, show a gain of 16.5 per cent as compared with the same month last year. Last month the gain reported for August, 1923, as compared with August, 1922, was 13.7 per cent. The increase o f 16.5 per cent is par tially attributable to a merger affecting one o f our reporting banks. As compared with the previous month, September deposits showed a gain o f .8 per cent. More than half a million dollars were added to postal savings accounts during September, according to reports received by the Postmaster General from postmasters throughout the country. On August 31, 1923, there was on deposit in postal savings accounts a balance o f $132,525,971. On September 30 the balance was $133,100,971, an increase of $575,000. According to R. G. Dun & Company, commercial failures in the Fourth District for the month o f Sep tember totaled 95 as against 116 for the previous month, a decrease for the month of 21. Liabilities fo r September totaled $2,741,378 as compared with $1,870,656 for August. This is a gain for the month o f $870,722 or 46.5 per cent. The average per firm fo r September was $28,857 as against $16,126 for August, an increase o f $12,731 or 78.9 per cent. Comparing September with the same month last year, a drop o f 25.8 per cent in the number o f failures is shown. In the same comparison total liabilities are 28.8 per cent less and the average per firm 4.0 per cent less. Sentiment in'Iron and Steel Industry Improves as a Result of October Developm ents• Railroad Buying Outstanding Feature; Steel Production Continues Heavy Market developments in iron and steel for the month o f October to date demonstrated that the unfavorable sentiment recently displayed regarding business pros pects has been exaggerated. While the September vol ume of new business was not up to the expectations o f many who had counted upon a sharp revival o f de mand, business as o f the present month has come out very freely and in increased volume. New tonnage still is considerably less than shipments and order books have continued to shrink. With easier deliveries by the mills generally available and with the railroads rendering exceptional transportation service, there is less incentive for buyers to order material very far ahead. Nor is there any disposition o f consumers to discount future requirements under prevailing busi ness conditions and caution is still predominating. Analysis o f the situation shows that the low point o f new business came in July and August; some re covery appeared in September and the October gain has been on a rising scale and in more substantial pro portions. Bookings by the Steel Corporation this month to date are 20 per cent above September which in turn was 40 to 50 per cent over August. The leading interest now is entering about two-thirds as much tonnage as it is shipping and has been maintaining production at about 88 to 90 per cent of capacity. Its position, how ever, due to sales practice, is superior to that o f the independent companies which are. operating at around 70 to 75 per cent. The outstanding feature of the new business appear ing is a return to the market by railroads o f large pro grams o f equipment purchases. From 10,000 to 1 5 000 new cars are now pending and 250 to 300 locomo tives are under negotiation. In view o f the reported intentions of large systems to bring out heavy in quiries in the near future, it is believed additional pur chases of 80.000 to 100,000 cars are in sight. W hile new equipment inquiries are heavier, however, orders have been few as yet and the railroads are following the same policy of conservatism which characterizes buyers in general. Heavy rail orders for 1924 delivery have continued to appear so that the mills o f this class with one exception are now hooked full into next Tune Japanese buying, growing out of the reconstruction needs following the earthquake disaster has been ac tive and heavy especially in sheets, pipe, and certain other materials. Reported orders from this source easily total 50,000 to 100,000 tons in recent weeks A large part o f the increase of 116,000 tons, Or 91 per cent in independent sheet mill orders in September over August is attributed to this source. New building de mands have been holding up well for the season A u tomobile activity has been surprisingly maintained with corresponding needs for steel. THE MONTHLY BUSINESS S tcd prices on the whale have been well sustained. Some shading is being done in major products by the m a iler mills and various o f the minor lines are soft, bat th e larger producers are adhering closely to their previous schedules. The price situation is well maintamed as shown by Iron Trade Review's composite o f fourteen leading iron and steel products which for the ireek o f October 18 was $43.90 compared with $44.70 one m onth previously. Most o f this decline has been due to pig iron in which a weak market still prevails. Prices o f pig iron during the past month have fallen $1 to $3 per ton further and have shown a continuing situation o f over production although this now is near ing correction through the blowing out o f additional furnaces. D esp ite the backward condition of buying, production continues heavy. This has been more particularly true REVIEW 5 in steel than in pig iron. Steel ingot production in Sep tember was at the annual rate of 41,101,000 tons com pared with a corresponding rate o f 42,245,000 tons in August, a reduction o f 2.78 per cent. Steel produc tion now is down about 18 per cent from its high point in May and at present is at an annual rate o f about 94 per cent of the highest ingot year in history, that o f 1917. Pig iron production in September again fell, with a daily average o f 104,120 tons compared with 111,254 tons in August, a reduction of 6.4 per cent. Total production for September, a 30-day month, as compiled by the Iron Trade Review, was 3,123,611 tons against 3,448,886 tons in the 31 days in August. Stacks in blast at the end o f September were 257, a loss o f 13 in the month. Since May, the high point, opera tions show a reduction of 65 active furnaces. A u g u st Production of Crude Petroleum Reaches New High Record hut Rate of Increase Slackens; Oil Men See Remedy in Growing Consumption D u rin g August the production o f crude petroleum in the U n ited States reached the new high record of 2 1 19371 barrels a day, according to statistics compiled th e Geological Survey. It is interesting to note, how ever, that after many months of rapidly increasing output, the rate of increase materially slackened. T h e net change in production for the country as a whole fo r the month o f August was an increase of only slightly more than 15,000 barrels a day, being the smallest increase in production that has been recorded since September, 1922. Production in California continued to gain, the daily average for the month being 852,903 barrels. This heavy production o f crude oil in the California fields is still a question mark to the oil industry. It has been pre viously estimated that this fall would see the climax o f the spectacular development of the new fields in that state winch has increased production there to such a h igh point, and which has brought about shipments by tankers to Atlantic and Gulf Coast refineries of over 200,000 barrels of crude a day, thus upsetting the crude oil market. T h e re are many factors to be considered in the ques tion o f how long California is to give the nation better than a third of its crude supply. Important phases to be considered are new pools and the manner in which they m ay be developed; rate of decline in yield of pres ent w e lls ; the practicability of pumping wells when they cease flow ing considering the great depth of drilling in that state. A production analyst o f National Petroleum News as a resu lt of a recent investigation o f existing conditions in California fields believes that indications point to a continuation o f heavy shipments with a possible daily average o f from 125,000 to 150,000 barrels. This amount o f crude coming to eastern refineries takes the place o f oil produced east o f the Rocky Mountains and also o f some Mexican crude. Produc tion in these eastern fields which has shown a down ward tendency during the past two months has not yet declined sufficiently to bring about much relief from the present high level o f output. In addition to this the period of the year is approaching when crude con sumption is at a relatively low point. The unsettled state o f the gasoline market is in reality a reflection on the present crude situation. On the other hand oil men see a stabilizing factor in the steady growth o f crude consumption to meet the current needs o f the country at large. Substantial decreases in stocks o f gasoline on Sep tember 1 are noted in figures recently compiled by the Government. Gasoline stocks on that date amounted to 1,053,956,221 gallons, representing forty-seven days* supply, as compared with a stock of 1,165,389,340 gal lons, or fifty-four days’ supply, on August 1, accord ing to the Department o f the Interior. The output o f gasoline in August was 648,954,706 gallons, as compared with 637,000,000 gallons in July and 550,000,000 gallons in August, 1922. Domestic consumption, it was also announced, amounted to 692.185,610 gallons, an increase of 18,000,000 gallons over the July consumption and an increase of nearly 100,000,000 gallons over that of August of last year. E x ports of gasoline were 78,503,475 gallons, a decrease of 5,000,000 gallons from the July figures. A u tom otive Industry Slows Down; Prospective Buyers Watch New Developments; Marked Interest in Labor Saving Machinery Production o f passenger car automobiles for Septetnber flow e d a drop of approximately 15,500 cars as compared with August but was still slightly over the July output. There were 28,455 trucks produced in September as against 30,619 in August, a decline for the month o f 2,164. 'New patterns and models continue to attract attention. A very important major development which is 6 THE MONTHLY BUSINESS going on is the introduction o f four wheel brakes. Like all major developments in the industry, such as the self-starter, etc., there is a period when the minds o f buyers are disturbed over the question and a certain amount o f hesitancy results in reduced sales. While there has been some curtailment in shipping schedules o f closed auto bodies, business in most in stances continues good considering the season of the year. REVIEW W e are told that the demand and interest in the use o f electric industrial trucks and tractors are steadily increasing and that business is proceeding at a very satisfactory rate. Large corporations throughout the country are taking great interest in labor saving ma chinery, and while in many instances the transition from hand labor to machinery is necessarily slow, very definite progress is being made. Automobile Production The Department o f Commerce announces September production of automobiles, based on figures received from 183 manufactuers, 95 making passenger cars and 116 making trucks (28 making both passenger cars January................ February.............. M arch.................. A pril..................... M a y ...................... Tune...................... July..................... August................. September........... O ctober................ N ovem ber........... December............ * Revised. and trucks). Data for earlier months include 12 additional manufacturers now out of business. Figures on truck production also include fire apparatus and street sweepers. N U M B E R OF M AC H IN E S Passenger Cars 1923 1921 1922 *223,819 43,086 81,693 *254,771 68,088 109,171 *319,768 130.263 152,959 197,222 *344,639 176,439 *350,409 *232,457 177,438 *337,359 *263,053 150.263 *297,330 *225,085 165,615 *314,372 *249,490 167,755 298,910 *187,693 144,670 *217,534 134,773 *215,340 106,081 *208,006 70,725 1921 4,831 7,830 13.328 18.070 18.070 14.328 11,132 13,391 13,975 13,144 *10,481 * 8,593 Trucks 1922 9,517 *13,291 *19,920 *22,488 23,948 26,171 *21,957 24,601 *19,335 *21,706 *21,861 *20,246 1923 ; *19,646 *22,067 *35,037 *37,862 *43,452 *40,973 *30,494 *30,619 28,455 Fourth District Manufacturers Report Few Changes During the Past M on th ; Collec tions Hold Up Well; Growing Labor Supply Causes Less “ Shopping for Jobs’ * Small Tools— While the small tool business has shown some improvement over that o f midsummer, the increase has been somewhat disappointing. Dealers are continuing their policy o f keeping stocks well re duced. White Lead— Business is holding up near ex pectations although sales for the last two or three months have been somewhat behind those for 1922. The market for pig lead and linseed oil is firm with an advancing tendency. Glass— There have been no marked developments in this business during the past month. The usual good demand incident to the season is reported. The head o f a large plate glass company tells us that in a recent meeting of district managers, including those from the northwest and southwest, the opinions o f these men as to an optimistic outlook were more unanimous than he had ever known them to be. Sundry glass business is fully up to the average for this season o f the year. Soap— In the soap trade the volume o f orders is reported to be very good. Collections are reported to be fair. Stocks in the hands of retailers are low and as a result marketing conditions are considered quite satisfactory. Bags— In the bag industry, buying is still very much o f a hand-to-mouth character. The volume o f business at present is quite satisfactory, showing some improvement over August. Cork— In the cork business September was not quite up to August, but indications are that October will be back to the average. Collections have shown no particular change. Hardware— So far as actual orders are con cerned, the hardware situation remains much the same as it was a month ago. There appears to be a growing belief, however, that the country with few exceptions is showing a decidedly better feeling, and particularly the farm trade. Preparations are being made to have stock lines o f goods ready for Spring business. This op timism is based upon the belief that the general im provement in the agricultural situation will bring about a resumption o f buying of farm necessities which has been very slack for the last three years. Tin Cans and Pails— Conditions in this line are reported to be very favorable. There continues to be insistence from all parts of the country for prompt deliveries of orders, an indication that stocks are run ning low. The demands are coming from widely scattered territories and are for very diversified lines o f goods. THE MONTHLY BUSINESS S torage Batteries— The storage battery busiatm as a whole is reported to be practically the MBe as it was a month ago. There has been one im portant development, however, which affects the dealen. Recently a large concern in this District discon tinued shipments from their factory and are now makiag a ll shipments from branch warehouses. This lesKns A e investment of the dealers because their stocks are closer to them, and as a consequence their cost of distribution as well as the manufacturer’s will decrease. Jfold in g Machines— Business in this line which was very active in August fell off during Sep tember, October, however, started out well and is ex REVIEW 7 pected to show a very noticeable pick-up in general. Electrical Goods— There are indications that die street railway people are coming into the market more and more for additional equipment to strengthen the facilities which have for so long a time been main tained with very little increase. Boots and Shoes— Final figures on boot and shoe production in the Fourth District for the month of August show a gain of 40.7 per cent as compared with the previous month. August production in the United States totaled 29,853,373 pairs as against 25,256,106 pairs for July, a gain for the month o f 4,597,267 pairs or 18.2 per cent. Railroads Render Efficient Service; Freight Movements Extremely Heavy; Car Surplus is Gradually Reduced F reigh t movements have continued to be extremely heavy fo r the country as a whole, though there has been some slight decrease in Cleveland. During the week ending September 29 there was a total of 1,097,274 cars of revenue freight loaded, a figure in excess o f a n y previously reached by the carriers. During the week ending September 22 the movement totaled 1,060,436 cars and for September 1,1.092,567 cars. Thus far in 1923 there have been 15 weeks in which loadings exceeded a million cars. F reigh t earnings are also holding up fairly well. Dur ing August the carriers throughout the country earned 4.94 per cent and in the eastern district 5.10 per cent. The Great Lakes and Ohio— Indiana— Allegheny dis tricts showed earnings of 6.18 per cent and 5.70 per cent respectively. T h e car surplus is being gradually reduced. On Sep tem ber 30 there were 41,745 cars in excess of requirements as against 59,008 cars on September 23. On the oth er hand shortages are gradually increasing, (hi Septem ber ^30 the total shortage was 15,331 cars as against 13,515 on September 23. F reigh t equipment of the carriers is in fairly good condition at this time. On September 15, 7.3 j>er cent o f th e freight cars and 16.8 per cent of the locomo tives were in bad order. D uring the past year the railroads through the Amer ican Railway association have been assisting in the or ganization of Shippers Regional Advisory Boards throughout the country, and early this summer the preliminary steps were taken which have now resulted in th e establishment of what is known as the Great Lakes Shippers Regional Advisorv Board, which is established to cooperate with individual railroads and tfie C&T Service Division of the American Railway Association to give the shipping public a direct voice in ca r supply and related transportation problems, to form a common meeting ground between shippers and railroads for the better understanding of transportation questions, and to adjust informally car difficulties or complaints which may arise between shippers and rail roads. All factions o f the shipping public are authoritatively represented upon the board of its committees. The six basic points o f organization are: 1. T o anticipate car needs as far as possible in advance. 2. To study production, trend of traffic, distri bution, and trade channels, with a view to e f fecting improvements in trade practices and! promoting a more even distribution of commod ities. 3. To promote car and operating efficiency in connection wTith maximum car loading. 4. To insure the proper handling of cars by shippers and railroads. 5. To study the seasonal transportation require ments in all sections of the country. 6. To adjust informally complaints on car service directly with the railroads involved. The Great Lakes Board has jurisdiction over the lower peninsula o f Michigan, the northern parts of Ohio and Pennsylvania, and the northwest section o f the state of New York. A regional board, known as the Ohio Valley Shippers Regional Advisory Board, has been organized to take care of the country lo cated south of the territory above described and others will be organized in the east. These boards are an important step toward closer cooperation between shippers and carriers and bid fair to mark the beginning of greater efficiency in the transportation o f freight. Country's Construction Facilities Largely Absorbed by Fall Building; Instability of Costs Cause Prospective Builders to Hesitate T h e building industry in general, although somewhat less active than it was a month ago. continues to show a volum e of business sufficient to absorb a large per- centage of the country’s construction facilities. The demand for labor and materials is not far from being normal. There is practically no scarcity in either one 8 THE MONTHLY BUSINESS o f these branches with the possible exception o f a shortage in the plastering trade which seems to persist even with the diminishing volume o f demand. A t present contractors are taking advantage o f the fall days and are rushing projects already under way in order to have them under cover before the winter arrives. National organizations o f builders and dealers are setting forth arguments as to the feasibility o f winter construction and are encouraging repairs and altera' dons during the “ off season,” with a view to doing away with part o f the rush which comes with the active building season. Business men in many parts o f the Fourth Federal Reserve District tell us that while prospects for the winter building program are quite satisfactory, there is evidence o f considerable postponement of contem plated projects due to present cost levels. In addition to this the instability o f prices is causing prospective builders to hesitate. When contractors are obliged to change their original estimates people quite naturally think it would be wise to wait for more stable condi tions. The month o f September registered a falling off in valuation o f permits issued in Cleveland proper, the figures being $3,857,650 as compared with $6,837,905 for September, 1922. The heavy increase in the first half o f the year, however, is offsetting the losses in valuation o f permits issued as shown each month since REVIEW and including May. The total valuation o f permits is sued for the year to October 1 was $45,733,065 in 1923 as compared with $44,196,390 for the same period in 1922. In the suburbs a like decrease is manifest in nearly all the communities with the exception of Lakewood where the valuation was $1,052,350 for September this year as compared with $762,060 for the same month last year. In Shaker Heights the figure o f $465,910 for Sep tember was only half of the total for September, 1922; East Cleveland with a valuation of $223,691 for Sep tember was even with the figures for the same month last year; while Garfield Heights also registered about equal in the comparison. There was a difference o f about $50,000 in favor o f this year in Cleveland Heights with a total of $834,565. The figures for all of the suburbs adjacent to Cleve land indicate about the same relationship as those for the city proper, the totals for this year being $27,214,000 as compared with $25,317,000 for the period to October 1 last year. According to a recent report issued by Bradstrccfs the total value of construction at 152 cities in Sep tember was $198,942,935, as against $224,624,218 at identical cities in August, and $181,369,342 at the same cities in September last year. There is here shown a decrease of 11.4 per cent from August, but a gain of 9.7 per cent over September a year ago. * Production of Portland Cement Again Breaks Record; September Shipments Somewhat Less Than August According to a late report o f the Portland Cement Association the cement industry has made a remark able record this year in taking care of the demands placed upon it. Starting the year with nearly 2,000,000 barrels less in stock than at the beginning o f 1922, it has in nine months shipped about 16,000,000 barrels more than during the first mine months of 1922, and yet stocks in manufacturers’ hands are more than 750,000 barrels greater than on September 30 last year. Figures recently compiled by the United States Geological Survey show that production o f portland cement in September eclipsed all previous records for any single month. For the first time the 13,000,000 barrel mark was reached, the exact quantity produced being 13,109,000 barrels. Production for the nine months ending September 30 was slightly over 101,000,000 barrels or more than was produced in any full year prior to 1922. Last year’s nine months’ record output was exceeded in production by about 24 per cent Shipments from the mills during September, al though less than in August, were greatly in excess o f any corresponding month in past years and were about 10 per cent over those for September, 1922. For the first nine months o f this year shipments were sub stantially in excess o f 104,000,000 barrels or 18 per cent greater than during the corresponding months o f last year. The combined production of 11 mills located in Ohio, western Pennsylvania, and West Virginia, for the month o f September, 1923, was 1,327,000 barrels as compared with 1,172,000 barrels for the same month last year. Total September shipments for the same number o f mills were 1,495,000 barrels as compared with 1,435,000 barrels for the same month a year ago Stocks at the end of September totaled 301,000 barrels while a year ago they were 416,000 barrels. Lumber Business is Reported as Being “ Spotty;” Country Dealers Show More Interest; Hardwood Conditions Better As a result o f the customary pick-up in fall building operations lumber production was somewhat below orders. Recently this condition has been reversed and production is again in the lead. Business revived in September according to expecta tions but the revival was not sufficient to bring about what is considered by the trade as normal fall activity. A spotty business has been experienced during the past thirty days with buying possibly good one week and poor the next. This is looked upon as being an indication that buyers have no intention o f stocking uo but are making purchases to meet current requirements only. In southern sections stocks are reported to be below THE MONTHLY BUSINESS normal at the larger mills. These mills show little ind lltffio n to make reductions except on some items are slow sellers and then only when there is a on hand. The smaller mills, aided by good and good roads have built up their stocks and placing their products (principally rough di lumber and boards) on the market at prices gflfjgli show a weakening tendency. Labor at these is plentiful. Considerable lumber now being sold is for buildings were contracted for last spring and summer th e trade believes that these will be quite well care o f by the middle of November. ’ C ou n try buying has not been particularly active as farm ers have held down construction work until fhg actual returns from this year’s crops were more in REVIEW 9 evidence. At present it is reported that country dealers are showing more confidence. Hardwood lumber conditions are gradually improving and indications are for increased activity. Orders in the hardwood trade are reported to be on the up grade. Buying by the automotive industry continues in vol ume. The furniture industry and other industrials are increasing their takings, a large number o f sales of such items as sap gum, birch, and maple being in evidence. The Department of Commerce announces that the total production o f lumber during 1922 in the United States was 31,426,922,000 feet. This is an increase o f 16.5 per cent when compared with the cut reported for 1921, but a decrease of 9 per cent compared with the cut for 1919. Paving Brick Orders Increase; Common Brick Makers Object to Imitations Being Placed on Parity with Real Article A n Increase in unfilled orders for vitrified paving jwipk from 88,247,000 the last day o f August to 91,m f i o o the last day of September is announced by the B afjoiial Paving Brick Manufacturers Association of Cleveland in its monthly statistical report to the United ytaf— Department o f Commerce. This increase was aGCpmpanied by a similar upward movement o f stock OB hand. Many of the orders are for delivery next sprin g and in the early summer. Production for the month of September increased frpm 33,457,000, the August total, to 34,457,000. Shipments declined from 36,446,000 to 34,761,000. f>istnbution for the month found Ohio in the lead 9,112,000 evenly divided as to city streets and country highways. Illinois, Kansas, Nebraska, and Pennsylvania were next in line. O f the unfilled orders 52,216,000 are to go for city streets and 26,535,000 for country highways, the remainder going into miscellan eous markets. Developments in the common brick situation during the past month have been largely centered in bringing about a more united effort on the part o f manufactur ers against the use of imitations o f brick. This is due to the fact that efforts are being made to have building units which are made in the size and form o f brick accepted in the building codes throughout the country on a parity with genuine brick. B tgricy Tobacco Crop Somewhat Damaged During Harvest Season; Corn Crop Estimated at More Than Three Million Bushels; Pennsylvania Crop Summary T h e re is no special activity in the tobacco market at th e present time since the time for receiving and Marketing the 1923 crop is still more than a month 2 1 ja y . The October crop report estimates a total prod u ction of tobacco in Kentucky for this year o f $07,125,000 pounds as compared to prospects on Sep tem ber 1 for 565,186,000 pounds. Last year’s crop am ounted to 446,250,000 pounds, and the five year avcragc of 1917 to 1921 inclusive was 445,022,000. pottDds. These figures include the dark types o f to b a cco grown in western Kentucky as well as the Burley tobacco o f central Kentucky. Unfavorable weather fo r a time this year while the tobacco was being harvested and housed resulted in some damage from hooseburn and for this reason authorities believe it is d ou b tfu l whether the quality o f this year’s crop will f<ptal the high quality reached last year. $Jo report o f any recent sale has been issued by the Burley Tobacco Growers’ Cooperative Association. T h e Association is reported to have received approxim ately 197 million pounds of the 1922 crop and to sold all but about 40 million pounds o f this amount. The membership o f the organization is now about 92 thousand growers. The annual election o f the directors o f the Association was held some weeks ago and the administration which has been in charge of its business since its organization will continue in charge. The October forecasts of the Department o f Agri culture show a slight drop in estimated crop produc tion, except in a few instances. The estimate for the country’s corn crop remains at a high point and indi cations are for a crop of more than three billion bushels. This is the fourth time in history that a corn crop of three billion bushels or more has been grown. Some interesting figures have been prepared by the statistician o f the Ohio Federal crop reporting service on farm wages during the past year. The present state average farm wage by the month is $39.00 with board and $55.00 without board. This is an increase o f al most 20 per cent since a year ago. Day wages have not increased. 10 THE MONTHLY BUSINESS REVIEW Pennsylvania Crop Summary October 1, 1923 Winter Wheat— The average yield of wheat is esti mated at 19.1 bushels per acre compared with 18.8 bushels last year and the ten year average o f 18 bushels. The total crop is estimated at 24,060,000 bushels compared with 24,634,000 bushels last year and the ten year average production of 24,311,000 bushels. In rank, Lancaster and York counties as us ual take the first and second places, Franklin third, Berks fourth, and Chester fifth. The quality o f the wheat is estimated at 96 per cent and is the same as one year ago. Spring Wheat— The average yield per acre o f spring wheat is estimated at 17.1 bushels, and the total pro duction at 278,300 bushels. The average yield per acre last year was estimated at 16 bushels and the total production at 280,000 bushels. Rye— Estimates show that the average yield o f rye per acre was 17.4 bushels compared with 17.1 bushels last year and the ten year average production o f 16.7 bushels. The total production is placed at 3,583,410 bushels as compared with 3,660,840 bushels last year and the ten year average production o f 4,233,400 bushels. Oats— The spring and summer drought had a detri mental effect and as a result the average yield o f oats per acre is estimated at 29.5 bushels as against 34 bushels last year and the ten year average production o f 33.3 bushels. The total production is estimated at 33,793,180 bushels compared with 38,949,525 bushels last year and the ten year average production o f 37,356,000 bushels. Barley— This crop is only sparsely grown in Penn sylvania and the gathering o f information relating to the same is rather difficult, but according to the best information available, the average yield per acre this year approximates 23.6 bushels as against 24.7 last year and the ten year average production o f 25.6 bushels. The total crop points to 276,955 bushels com pared with 301,500 bushels last year and the ten year average production o f 286,650 bushels. Corn— Present indications point to 87 per cent o f a normal crop o f com and presage an average yield o f 41.6 bushels per acre as compared with 43.8 bushels last year and the ten year average production o f 41 bushels. The present condition forecasts a total crop o f 61,416,500 bushels as against 65,561,475 bushels last year and the ten year average production o f 61,954,000 bushels. Buckwheat— The outlook for buckwheat is placed at 83 per cent and is indicative o f a yield o f 19.6 bushels per acre as against 20.7 bushels last year and the ten year average production o f 19.3 bushels. ag&reSate production this year is estimated at 4,162,600 bushels compared with 4,616,415 bushels last year and the ten year average production o f 5,200,000 bushels. Potatoes— The prospect on October 1 was placed at 77 per cent of a full crop and presages an average yield o f 96.2 bushels per acre compared with 110 bushels per acre last year and the ten year average production of 88.6 bushels. Indications point to %■ crop approximating 21,248,600 bushels. The crop last year was estimated at 24,740,800 bushels. Tobacco— The October 1 condition forecasts 90 per cent of a normal yield, or 1,362 pounds per acre, compared with 1,323 pounds per acre last year aHiC! the ten year average production o f 1,363 pounds. The total crop this year, from present indications, is esti mated at 55,569,600 pounds as against 53,693,000 pounds last year and the ten year average production of 51,849,380 pounds. Pasture— Dry weather affected all summer crops but was reflected nowhere more than on pasture. M ore moisture during September had its beneficial effect and as a result the condition on October 1 was estimate! at 88 per cent of normal compared with 71 per cent one year ago. The improved pasture indicates that livestock will go into winter quarters in good condi tion. Apples— All fruit shows much larger yields than in dicated by the August 1 report. The prospect for apples on October 1 indicates a total or agricultural crop o f 72 per cent o f normal and presages a yield o f 11,542,525 bushels compared with 10,837,940 bushels last year and 8,642,600 bushels, the average for the past four years. Peaches— The crop of peaches more nearly ap proaches normal than any other fruit crop, bein^ placed at 94 per cent which indicates a yield o f 1,953700 bushels. The crop last year was estimated at 1,229,670 bushels. Pears— The production of pears is placed at 78 per cent of normal which indicates a total crop o f 657470 bushels compared with 604,600 bushels last year and the four year average of 457,575 bushels. Textile Lines Show Fair Volume of Business; Low Stocks Expected to Stabilize Trade There have been no particular changes in the tex tile business since last month. Uncertainty continues to be in evidence in the cot ton goods trade although buying is said to be some what more active. The October 1 forecast o f the cot ton crop by the Department o f Agriculture places the total number o f bales at 11,015,000, a gain of 227,000 bales over the September 1 forecast, which wan 10 788,000 bales. In the woolen and worsted divisions a fair volume of business is reported. Orders for next spring, how ever, are reported to be somewhat slow. Early openings in men’s clothing lines for fMrit spring show no substantial changes in price levels in THE MONTHLY BUSINESS (Bfc o f the fact that manufacturing costs have ad* There is a belief that any further advance price of clothing would be opposed by the public and the trade generally seems to be I to operate on a low profit basis for the spring season. Retail business, generally speaki s good and early bookings of advance orders cal suitings by manufacturers are reported to ifactory. Jpmaier temperature the latter part o f September and jfc part o f October has given an impetus to mk apparel trade which is reflected in reorders from e* f l r n , a condition which a return o f cooler weather V emphasize. JStorfcs of women’s ready-to-wear garments are not ■ m n r e and this fact is expected to prove a stabilizing Bdbr in fall business. jfai the knit underwear business present activity is Wjptfy dependent upon weather conditions. A cold ■ I naturally brings about the early purchase o f winer underwear and unloads stocks. So far the weather REVIEW 11 is reported to have been satisfactory. Several weeks back reorders were more frequent than they are at this writing but that was probably due to the abnormal cold spell early in September which sent the retailers after the jobbers’ stocks. Apparently both the retailer and the jobber have come to regard the advanced price o f cotton as fairly well established in so far as it pertains to next summer’s merchandise, At the beginning o f the summer sales season which occurred several months ago, lines were opened at a slight advance. This caused some o f the buyers to hold back their orders, but since then they have covered at about a 5 per cent increase. The present basis o f prices is about 10 per cent higher than the opening while a total advance o f from 15 to 20 per cent is reflected over prices a year ago. Fancy knit goods manufacturers report plenty o f orders to keep them busy. Orders, however, are not coming in as rapidly as they did a month ago. Spring lines for show in the near future are now being prepared. Fall Expansion in Pulp and Paper Trade Disappointing; Market for Paper Box Board Shows Uncertain Tone I b the pulp and paper industry it appears to be fcae that the fall expansion which was expected has art developed in the degree previously anticipated, j B b * Te reported to be running reasonably full in U S ! 'S n° / rea' aJmoun‘ °? Pfessu« I■Uiuiiactunng L ^ S r i n e sschedules c S T rS ' ” grfar in are notF arranged very the future. Prices have tended to soften rather than . Since August there has been a noticeable change in flie paper box board business. Since then prices have declined and the market is reported to be showing as uncertain tone. So far the market in the East has held up better than in the West. This season of year is normally a rush period for the paper box board trade for late fall and holiday business means additional buying, but the box makers are hesitating about stocking up under present uncertain conditions. The following table compiled by the American Paper and Pulp Association shows percentage changes in pro duction and shipments by identical mills in September, 1923, as compared with August, 1923: Grades o f Paper v g^k u Production Per i Centa ™ , . . ! ! I !! I ! ! ! ! ! ! ! ! ! ! Paperboard ............................. Boxboard ................................. Wrapping ................................. Bag ........................................... Fine ........................................... Tissue ....................................... Hanging ................................... Felts and Building .............. Other Grades .......................... Total— All Grades ............ Shipments Per Cent 11 -1 5 — 15 — 19 — 4 — 14 3 — 3 4 — 15 — 12 — 12 Z h — 14 — 17 — 1 — 1 — 1 — 7 16 — 12 — 6 — 10 M a rket for Canned Goods Very Active; Pea Pack Nearly 1,000,000 Cases Above Previous Record; Wholesale Grocers Report Increased Business The market for canned foods is reported to be in good condition. With a pea pack o f almost 1,000,000 the market trade quite generally is looking forward to a heavv demand for future canned foods o f 1924 packing, A large food products company reports that Sep- >^ ! ri arre having sT e difficulty in findm g tne exact grade o f peas wanted. tember sales show the best percentage o f increase o f any month this year. cases larger than ever before known, v J ^ ^ v L ° noutheb n ? T ? T i - COr? rackT iTun n •. P hT n0l i5\ntr-ary * the imPr1?vement in the labor situation , . I 18 ed that n^L of , !e,n year average. The mar- Wh' ch .,s qu,te S f^ r a iy reported, canners are expenencmg some difficulty in securine sufficient help ‘ “ c ^ o S T , ? bv " Sk' , ' m SSTTe X o f I W COn, f mert, ra? ld,y' th= g W emPloyed at &ood ? thf P,ants' ? “ s this is atfributabie to the fact„ that many ? f the canning factories are located in sma11 communities where much o f the surplus labor iodcs for the most par, are well depleted and the ^ g e“ herngf S edwo0l t,,e in CUtting COrn and THE 12 MONTHLY BUSINESS The wholesale grocery business continues on a steady course. The latter months o f the year bring additional business for it is during this season that new canned goods, dried fruits, nuts, holiday goods, etc., come in and the future orders taken several months previous are filled upon their receipt. REVIEW During the fall o f 1920 the retailers suffered some losses on account o f declines. Through 1921 and 1922 they were not very enthusiastic about buying futures, but this year with the general improvement in business conditions sales of goods for future deliv ery were exceptionally heavy. Prospects for Higher Prices a Disconcerting Factor in the Farm Im plem ent Trade; Manufacturers Plan Small Schedules; Dairy States Best Market In practically all divisions o f the farm implement in dustry conditions are reported to be about the same as they were a month ago. The prospect for higher im plement prices is still a disconcerting factor in the implement trade even though conditions influencing the buying power of the farmers are showing improve ment. Manufacturers are starting production sched ules for next year with conservatism. While the need for new machinery, for replacement especially, is great potentially, the manufacturers are disposed to proceed with comparatively small schedules in the belief that the potential volume will become a reality only when they are able to reduce prices to lower levels. As an illustration, one o f the large companies is starting a production schedule only 30 per cent o f the pre-war normal. This schedule while somewhat flexible will be increased only as appears necessary by bona fide orders. The quantity production which might obviate a price advance or reduce present prices does not seem to be forthcoming. The farmer has shown an astonishing ability to do his work with old equipment which he keeps going by buying repairs, and possibly by taking better care of his implements than he formerly did. The attitude of the manufacturers is quite generally reflected throughout the retail trade, according to the Chilton Tractor Journal. Dealers generally cognizant o f a great latent demand are not pushing sales aggres sively either in the belief that farmers are not able to buy or that selling costs may be increased. The ele ment o f sales ability, however, is quite prominent in the retail trade. From localities governed by the same general conditions, widely divergent reports are re ceived. Dealers who are making an aggressive selling effort are getting the business. Business conditions are quite spotted, the dairy states as usual furnishing the best market for farm equip ment. From New York and Pennsylvania westward to the states bordering on both sides of the Mississippi River and north of the Ohio River conditions are quite favorable to a healthy volume of trade. The wheat states are less promising for new business. Conditions are also good in the cotton states but cotton raising, despite the negro exodus toward industrial centers, is carried on with considerable cheap hand labor and not a great deal o f modern farm machinery is used. An implement manufacturer who has just returned from a trip through Kentucky and Tennessee tells us that he found conditions in those states decidedly favorable. While the buying power o f the agricultural com munity is showing improvement from month to month the fact remains that farm machinery, one o f the most indispensible factors in agriculture, is not sharing in the general betterment. Coal Prices Lower; Soft Coal Production Declines; Stocks Continue to Grow Coal prices are showing a tendency to weaken. Owing to the surplus which is being mined in excess of actual consumption requirements many companies have placed coal on the market at unusually low prices. The prompt settlement o f the anthracite strike up set the plans of many bituminous operators many o f whom speeded up production in the belief that the people would be compelled to burn soft coal. They figured it would be much better for them to continue the operation of their mines even at a loss in order to be in a position to take advantage of the shortage which would result from the anthracite strike. This expectation did not materialize and as a result mines in different parts of the country are closing down. Another feature of the situation is that the closing down o f pig iron furnaces and the lower mill operations have curtailed consumption of both coal and coke. In addition to this the unsettled market, the evidence o f potential production in excess o f actual requirements and the present heavy stocks are causing large users o f coal to hesitate in making contracts for the coming year. A recent report of the Geological Survey states that the first week of October was marked by a sharp de cline in the production of soft coal. The total output, including mine fuel, local sales, and coal coked at the mines, was estimated at 10,782,000 net tons, a decrease as compared with the previous week o f 565,000 tons or 5 per cent. Bituminous production for the month o f September totaled 46,175,000 tons as against 4 8 864,000 tons in August. Due to the strike, anthracite production in September totaled only 2,910,000 tons as against 8,868,000 tons in August. During August stocks of soft coal continued to increase and on September 1 they amounted to ap proximately 56,000,000 net tons. The passing o f A ug ust, 1923, brought to a close a year of practically un interrupted accumulation of stocks, and the stock taking as of September 1 revealed many interesting and important facts. Stocks on that date were 4 000,000 tons larger than on August 1, 1923* 7 500 OCX) tons larger than on November 1, 1923; and nearlv300 per cent larger than on September 1, 1922. THE MONTHLY BUSINESS REVIEW 13 Debits to Individual Accounts Week Ending Week Ending Oct. 17, 1923 Sept. 19, 1923 (324 Banks) (321 Banks) $15,702,000 $15,426,000 3,082,000 2,938,000 9,956,000 10,139,000 75,206,000 79,510,000 150,283,000 167,567,000 32,575,000 41,032,000 1,334,000 1,291,000 16,220,000 16,532,000 7,940,000 8,235,000 5,814,000 4,988,000 979,000 869,000 4,520,000 4,203,000 4,218,000 4,064,000 1,712,000 2,539,000 2,050,000 2,253,000 2,775,000 2,821,000 3,035,000 2,731,000 181,641,000 174,623,000 4,807,000 4,781,000 40,933,000 40,920,000 3,310,000 3,314,000 10,010,000 9,806,000 13,740,000 11,076,000 2,799,000 3,037,000 ^jjrincfield. . . W arren, Ohio. Wheeling...... Y ou n gstow n .. Z an esville----T o ta l. $594,641,000 $614,695,000 Increase or Decrease Week Ending Amount Per Cent Oct. 18, 1922 (323 Banks) $ 276,000 1.8 $12,814,000 144,000 4 .9 2,431,000 - 1 .8 9,905,000 -183,000 - 5 .4 - 4,304,000 74,069,000 -17,284,000 -1 0 .3 164,624,000 - 8,457,000 -2 0 .6 34,935,000 1,518,000 3 .3 43,000 312,000 - 1.9 15,632,000 7,003,000 295,000 - 3 .6 826,000 16.6 6,030,000 717,000 12.7 110,000 4,555,000 7.5 317,000 3,218,000 3.8 154,000 1,551,000 827,000 -3 2 .6 203,000 - 9 .0 2,284,000 46,000 - 1.6 11.1 304,000 3,446,000 7,018,000 4 .0 167,787,000 26,000 0 .5 5,764,000 13,000 0 .03 37,700,000 4,000 - 0.1 3,284,000 2.1 204,000 11,377,000 2,664,000 24.1 15,131,000 238,000 - 7.8 3,146,000 -$20,054,000 - 3 .3 $588,921,000 Increase or Decrease Amount Per Cent $2,888,000 651,000 51,000 1,137,000 - 14,341,000 - 2,360,000 184,000 588,000 937,000 216,000 262,000 35,000 1,000,000 161,000 22.5 26.8 0 .5 1.5 - 8 .7 - 6 .8 -1 2 .1 3 .8 13.4 - 3 .6 36.5 - 0 .8 31.1 10.4 491,000 411,000 13,854,000 957,000 3,233,000 26,000 1,367,000 1,391,000 347,000 i i .5 - 1 1 .9 8 .3 - 1 6 .6 8 .6 0 .8 -1 2 .0 - 9 .2 -1 1 .0 $ 3,670,Q00 0 .6 - Movement of Livestock at Principal Centers in Fourth Federal Reserve District for M onth of September, 1923-1922 Cattle Sheep Hogs 1923 1922 1923 1922 1922 1923 23,674 26,195 98,207 108,451 82,760 78,723 11,299 12,401 76,307 99,955 35,617 53,072 257 93 66 70 3,415 5,011 2,289 2,245 761 747 11,502 9,897 604 2,517 2,899 1,033 5,287 6,926 55 708 4,581 740 45 5,539 38,881 58,212 225,076 296,906 87,812 123,246 754 1,216 3,521 4,916 714 415 2,269 1,516 8,312 9,307 1,039 483 554 590 1,360 520 1,003 584 Purchases for Local Slaughter 15,052 13,567 61,986 48,516 9,872 12,570 9,576 11,447 60,140 61,794 18,505 23,023 66 66 68 155 66 227 72 18 10 877 285 5 29 2,478 45 2,251 30 3 6,274 6,507 35,296 40,135 10,282 12,285 343 225 400 398 48 399 1,089 2,256 .... 451 •. •. C in cin n a ti. C levelan d. C olum bus. Dayton... F o s to r ia .. M arion . . . Pittsburgh. Springfield. W h eelin g .. C olum bus. Fostoria.. Marion. . . Springfield. T o l e d o ----- Calves Cars Unloaded 1923 1922 1923 1922 14,977 12,171 2,267 2,306 10,709 11,307 1,598 1,851 51 168 5 10 768 740 369 361 19 40 182 142 42,438 39,392 4,429 6,576 181 205 495 345 126 1,784 852 16 5 6,151 10,497 28 77 118 6,967 29 410 5,438 10,909 29 42 118 6,710 66 Wholesale Trade Percentage Increase (or Decrease) in Net Sales During Septem ber, 1923, as Compared with August, 1923, and September, 1922 M , ... N e t sales (selling price) during September, 1923, compared with A ugust, 15/23....................................................................................... ^ ^ te m e iM S ^ f Digitized forbFRASER * http://fraser.stlouisfed.org/ D ry Goods Hardware — 4 .2 0 7 8 .7 7 .8 Drugs Groceries — 0 .7 7 .0 9 .2 9 .0 ^ur*n&September, 1923, compared with Federal Reserve Bank of St. Louis 14 THE MONTHLY BUSINESS REVIEW Comparative Statement of Selected M ember Banks in Fourth District Oct. 10, 1923 Sept. 12, 1923 (81 Banks) (81 Banks) Loans and Discounts secured by U. S. Govern ment obligations............... ............................. Loans and Discounts secured by other stocks and bonds........................................................... Loans and Discounts, all other.............................. U. S. Pre-War Bonds............................................... U. S. Liberty Bonds................................................. U. S. Treasury Bonds.............................................. U. S. Treasury N otes............................................... U. S. Certificates o f Indebtedness......................... Other Bonds, Stocks and Securities. Total Loans, Discounts, and Investments........... Reserve with Federal Reserve Bank Cash in V ault............ Net Demand Deposits Time D eposits............ Government Deposits Total Resources on date o f this report................. $27,965,000 $ 30,342,000 413.995.000 695.575.000 47.896.000 117.489.000 4.707.000 59.311.000 9.318.000 296.634.000 1,672,890,000 106.991.000 32.050.000 915.618.000 596.177.000 20.590.000 2,097,442,000 399.182.000 696.592.000 47.829.000 116.604.000 4.913.000 56.825.000 6.871.000 298.257.000 1.657.415.000 111.273.000 33.267.000 919.827.000 595.334.000 5.588.000 2.104.176.000 Increase $. Decrease $2,377,000 14,813,000 67,666 885,000 2,486,666 2,447,000 15,475,666 843,000 15,002,000 1,017,000 ............... ........ .. iVt * 206,000 ............... 1.623.000 4.282.000 1.217.000 4.209.000 ■■’v W*-£ ■ 6.734.000 Building Operations for M onth of September, 1923-1922 Permits Issued New Construction Alterations 1923 1922 1923 1922 208 271 58 A k ron ........... 67 61 147 70 C anton......... 231 380 235 368 229 Cincinnati.. . 840 726 700 1,208 Cleveland*. . 132 106 371 509 Colum bus.. . 88 129 220 218 D ayton ........ 39 112 35 115 E rie.............. 40 48 59 45 L exington.. . 104 119 438 372 Pittsburgh. . 22 21 65 93 Springfield. . 165 207 268 T oledo.......... 415 28 40 78 92 W heeling.. . . 25 41 133 173 Youngstown. T ota l............ 3,630 3,177 2,337 1,820 Valuation New Construction Alterations Increase or Decrease 1922 1923 1923 1922 Amount Per Cent $ 874,974 $ 543,785 $ 28,985 $ 374,816 $— 14,642 - 1 .6 489,389 342,506 82,665 52,575 176,973 4 4 .8 1,411,220 2,400,510 226,215 228,540 - 991,615 - 3 7 .7 5,744,601 9,065,727 706,965 492,515 -3,106,676 - 3 2 .5 1,782,530 1,510,765 230,370 194,435 307,700 18.0 377,255 1,556,166 205,324 162,548 -1,136,135 —66.1 338,722 1,131,019 50,530 78,321 - 820,088 -6 7 .8 87,165 156,040 18,742 10,715 60,848 -3 6 .5 1,549,926 5,405,350 264,457 194,412 -3,785,379 -6 7 .6 140,090 118,035 15,800 7,645 30,210 2 4 .0 963,423 750,047 249,289 146,435 316,230 3 5 .3 215,894 156,615 35,326 21,485 73,120 41.1 443,125 352,895 18,725 17,945 9 1 ,0 1 0 a& i $14,418,314 $23,489,460 $2,133,393 $1,982,387 ■ ' Department Store Sales (1) rT _ (2) Percentage or Increase or Decrease Comparison o f net sales with those o f corresponding period last year N o. o f Reports A k ron ............. 4 C anton........... 3 9 Cincinnati----5 Cleveland. . . . 6 Columbus----3 D a y ton .......... 7 Pittsburgh. . . 4 T oledo............ 3 Y oungstow n.. 46* D istrict.......... U. S. Average. ♦Includes two reports from B July 1 to Sept. 30 5.8 14.0 16.8 13.8 17.8 10.8 17.2 13.4 27.7 15.5 9.3 . . cities. A September 2 .6 9 .3 10.9 10.2 11.0 7.1 14.2 10.6 19.1 11.6 5.8 other Stocks at end o f month compared with A September 1922 6.8 6 .4 16.7 20.4 19.1 14.3 16.2 19.2 24.3 17.2 13.2 B August 1923 7.8 8.3 11.9 13.2 11.2 7 .0 9 .2 5.5 11.0 10.2 8 .2 n (3) m v; p «> - f e : Percentage o f o u t s t a n d ing orders at end o f Septe m ber, 1923, to total purchases a v e r a g e during calendar monthly sales year 1922 over same period Percentage o f average stocks at end o f each month from July 1 to Sep tember 30 to 464.7 737.1 528.5 388.5 474.1 457.0 411.9 416.2 293.2 429.9 454.3 8 .9 10.1 10.1 11.1 12.3 10.2 10.8 17.9 10.6 9 .8 THE MONTHLY BUSINESS REVIEW 15 Summary of Business and Credit Conditions in the United States By the Federal Reserve Board 1"1 __ 1 ] 1 — ----------------------------imuenoMmi>st mnmwu Tssss *o V\ w /1 AT1 j J *0 40 Production of basic commodities declined during September, wholesale trade continued large, while retail trade, though larger than a year ago, increased less than is usual at this season of the year. Wholesale prices, particularly those of agricultural products, advanced during the month. PROD UCTION Production in basic industries, according to the Federal Reserve Board’s in dex, declined 5 per cent during September, and was 10 per cent below the peak output of May. The principal factors in this decline were the suspension of an thracite coal mining for over two weeks and a substantial reduction in the pro duction ot iron and steel. Cement production and sugar meltings were larger than in August. The decline in the production index, which is corrected for seasonal variations and reflects chiefly changes in the output of raw and semi finished products, was not accompanied by a reduction of employment at indus trial establishments. New building construction showed about the usual seasonal decline in September, due to a curtailment in contracts for residences. Con tract awards for business and industrial buildings, however, were larger than in August. Estimates by the Department of Agriculture on October 1 showed some reduction from the September forecasts in the yields of corn, wheat, oats, and tobacco, but increased yields of cotton, potatoes, and hay. TR A D E Distribution of all classes of commodities by railroads continued at a high rate throughout September. Wholesale trade, according to the Federal Reserve Board’s index, in September reached the largest total in three years and was 9 per cent larger than a year ago. Sales of meat, hardware, and drugs were considerably larger than in last September, while shoe sales were smaller. Retail trade was slightly larger in September, but the increase was much less than is usual at this season of the year. Department store sales were 6 per cent more than in September, 1922, and stocks at the end of the month were 13 per cent larger than a year ago. PRICES Wholesale prices increased over 2 per cent during September, according to the index of the Bureau of Labor Statistics, particularly large increases occurring in the prices of clothing, farm products, and foods. Fuel prices, on the other hand, declined in September for the eighth successive month, and prices of building materials and metals were also lower. During the first three weeks of October, prices of certain farm products continued to advance, wheat and cotton reaching the highest points of the current year, while prices of hogs, coal, and metals declined. BANK CRED IT Demand for bank credit showed a seasonal increase in September and the early part of October, loans of member banks in leading cities increasing by $116,000,000 between September 12 and October 10. This increase reflected chiefly the demand for commercial loans, which on the latter date stood at a new high point for the year, almost $100,000,000 above the total on September 12. Increases in the holdings of government securities by these banks were partly offset by reductions in corporate security holdings. The demand for accommodation at the Federal Reserve banks in some of the agricultural districts increased, while at the Reserve banks in the east, the volume of discounts for member banks declined. Federal Reserve note circula tion continued to increase and in the middle of October was about $100,000,000 above the July level. In October money rates showed an easier tendency and after the fifteenth of the month rates for commercial paper in the New York market declined from a range of to S-5J4 per cent. FOURTH FEDERAL RESERVE D IS T R IC T K- E N T u sJ BOUNDARY OF D IS T R IC T BOUNDARIES Of dfeANCH TEfcfclTOfclES ----------BOUNDARIES OF S T A T E S ® FEDERAL RESERVE BANK. C I T Y O FEDER.AL RESERVE &RAHCH CJT1ES
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